1.SUBMITTED TO SUBMITTED BYJURY VISHWAJEET BHARTI MFM ROLL-25 2ND SEMESTER

2. INTRODUCTION BIG BAZAAR OVERVIEW OF THE COMPANY WHAT IS CUSTOMER LOYALTY? LITERATURE SURVEY OBJECTIVES OF THE SURVEY RESEARCH METHODOLOGY PROPOSED CHAPTERS THE SIGNIFICANT FEATURES OF BIG BAZAAR PROMOTION TECHNIQUES SALES PROMOTION TECHNIQUES LOYALTY PROGRAMS THE CUSTOMER EXPERIENCE RESEARCH OBJECTIVE RESEARCH METHODOLOGY HYPOTHESIS AND TESTING SAMPLING PLAN FINDINGS CONCLUSION RECOMMENDATIONS LIMITETIONS BIBLIOGRAPHY 3. Big bazaar- Hyper market chain in India Outlet 140+ outlets Parent group future group Owner Kishor Biyani (CEO) Founded 2001 Head quarter Jogeshwari,mumbai Industry Retail Web site www.bigbazaae.com Tagline is se sasta aur khin nhi 4. Big Bazaar, one of the biggest retail format of future group(India) Limited One finds over 170,000 products under one roof. They provide different offers at different intervals of time.They have opened the doors into the world of fashion andgeneral merchandiseincluding homefurnishings, utensils, crockery, cutlery, sports goods and muchmore at surprisingly low prices.In recent years, Big Bazaar has adopted value pricing inwhich they win loyal customers by charging a fairly low pricefor a high quality offering. The added advantage for the customers shopping in BigBazaar is that there are all time discounts and promotionaloffers going on in the Big Bazaar on its scalable products. 5. LoyaltyProgram can be defined as aprogram that allows consumers toaccumulate free rewards when they makerepeated purchases with a firm.(YupingLiu, 2007) Source - YupingLiu(2007). Rinkodaros genijus. Verslo inios; 488 p. 6. Maloney (2006) propose to exclude purposes according to their stability criteria: Operative/ changing purposes i.e. (1) increase the profit while raising levels of customers purchase or products consumption, and (2) expand categories of offering products from suppliers. Stabile purposes i.e develop the stronger and closer connection between products and customers, help to develop and control customers database usefully. Later then company will implementing loyalty programs, these purposes can change. Popularity of loyalty programs, the distribution among customers, rendering of advantages for customers are influencing purposes as well. Also additional purposes are excluding in loyalty programs formation, which later let to develop and control loyalty programs, i.e., further cross sale, development of databases, help in developing additional trade connections, creating and improving public relations politic of the company, create friendly relations with other companies and association of them for the general aim.According to Long & Schiffman (2005) it is easier for the company to estimate the particular loyalty program type then purposes of these programs have evaluated.Source - Zeithaml Valarie A,Maloney, Bitner Mary Jo, Services Marketing, McGraw- Hill, International Edition, 1996Berman, B. (2006). Developing an Effective Customer Loyalty Program, California Management Review; Fall2006, Vol. 49 Issue 1, p123-148, 26p 7. Food bazaar. Electronic bazaar. Furniture bazaar. FutureBazaar.com Telecalling services.(T24) 8. Big Bazaar - Isse sasta aur accha kahin nahi :- Big Bazaar hasadopted value pricing in which they win loyal customers by charging afairly low price for a high quality offering. Wednesday Bazaar Hafte ka sabse sasta din :- In January 2007, BigBazaar introduced a Wednesday Bazaar concept called Hafte Ka SabseSasta Din with the aim to give homemakers the power to save the moston this day of the week Sabse Saste panch Din (Big days) :- In 2006 they started a newshopping festival, i.e. Sabse Saste panch Din on 24, 25 ,26,27,28 and 29thofJanuary. Big bazaar throwed up to 65% of on each & every products inhe store for three days. Big Bazaar announced The Great Exchange Offer with a Bring anythingold and take anything new concept which started from the 16th of Feb2008 at the Landmark store. 9. Price promotion:- Price promotions are also commonlyknown as" price discounting". These can be done in two ways: *A discount to the normal selling price of a product, or *More of the product at the normal price. Coupons:- Use of coupon promotions is often best fornew products or perhaps to encourage sales of existingproducts that are slowing down. Gift with purchase:- The "gift with purchase" is a verycommon promotional technique. In this scheme, thecustomer gets something extra along with the normalgood purchased such as perfumes and magazines etc. 10. Competitions and prizes:- This is an important tool toincrease brand awareness amongst the target consumer. Itcan be used to boost up sales for temporary period andensure usage amongst first time users.Money refunds:- Here, a customer receives a moneyrefund after submitting a proof of purchase to themanufacturer 11. Point-of-sale displays:- Shopping habits are changing orthe people living in metropolitan cities. People prefer bigretail outlets like Big Bazaar to local kirana stores. Most ofthe decisions of buying are taken by the virtue of point-of-sale displays in these retail outlets.Frequent users/ loyalty incentives:-Repeat purchasesmay be stimulated by frequent user incentives. Perhaps thebest examples of this are the many frequent flyer or userschemes used by airlines, train companies, car hirecompanies etc 12. Customer Loyalty measures are designed for thepeople within a company who dictate the strategicdirection of the company. These measuresevaluate the performance of a companys currentcustomer base and drive the future direction of acompanys overall customer strategy. Big bazaarsloyalty programs are comprised of: Membership card Discount Shop at home Home delivery 13. The customer experience is comprised of the followingcomponents:- POPULATING THE CUSTOMER PROFILE:- To create theIdeal Customer Experience, Big Bazaar populates theCustomer Profile with the relevant information . DELIVERING AND RECEIVING VALUE AT EACHCUSTOMER INTERACTION:- Big Bazaar views each interaction as agolden opportunity to deliver value through itsproducts, services, and processes, as well as to receivevaluable information from the customer in the form offeedback. CUSTOMIZING THE CUSTOMER EXPERIENCE:- Byunderstanding an individuals needs, it creates the IdealCustomer Experience by customizing theproducts, services, and processes to meet the needs of the 14. PRIMARY OBJECTIVE To find out in todays competitive scenario loyalty programsare successful to attract customer attention or not. SECONDRY OBJECTIVES To find out the increase in customer loyalty by means of measuring various factors affecting. To find out customers reactions to various loyalty programs and change in their purchase decision due to these programs. To analyze customers expectations from retail format like convenience store in terms of offering of loyalty programs. 15. Research problems:- consumers reactions and expectation from loyalty programs of convenience store format, Big Bazaar Research methodology: Exploratory method Descriptive research is a type of research conducted when we have to find out the frequency with which something occurs. This research is guided by an initial hypothesis. 16. Hypothesis testing for this report has evolved around formulating a nulhypothesis and an alternative hypothesis as regards to the percentage ofpopulation availing the loyalty programs H(o) Null Hypothesis :- Mostly 70% of the population would be availing the loyalty programscarried out by Big bazaar. H(T) Alternative Hypothesis:- Less than 70% of the population would be availing the loyalty programscarried out by Big Bazaar At 5% level of significance we test the above mentioned hypothesis asper the results obtained. The Chi-Square test has been taken up as the selection criteria for theabove mentioned data. The Chi-Square test which shows the magnitude ofdiscrepancy between observed and expected frequency can be expressedsymbolically as 17. X2= Summation of (O-E) Where, O= Observed set of frequencies E= Expected set of frequencies 18. Sample Methods - Random Simple Sampling Sample size - 51 Primary data -Questionnaire-Interview Sample:- Sample Units:- sampling unit is Kolkatas Big Bazaar . Source of data:- through primary sources Market survey & area:-sealdah, Dharmatala Big bazaar Sampling size:- 51 19. Big Bazaar has been preferred by most of the householdsfrequently and they use to purchase daily requirement materialfrom there. While still 15% of people dont prefer to buy dailyrequirement items from organized formats. The data predicts that customers at nearby locations of BigBazaar prefer to go to there often but it is not destination forcustomers every time. 35% go there often 30% go there occasionally 15% go every time 20% people go there sometimes 20. The ratio of customers using loyalty programs floats between60%-62%.Educated people are giving more attention to theloyalty card due to the awareness of its future benefitsmonetarily as well as in getting right information of theproduction. Most of the customers feel satisfied from the loyalty programofferings of Big Bazaar so it has been successful in fulfillingcustomers expectations. While 25% of customers still wantto get some more benefits in return of their loyalty to the store. Customers feel 55% motivated to shop from Big Bazaar due totheir loyalty programs. 21. In our calculations: The calculated value of is more than the table value. So, the hypothesis isREJECTED i.e. less than 70% of the population isonly availing the loyalty program carried out by BigBazaar. There are maximum customers who are satisfiedwith the merchandising of the store and they findevery product of brand in each category and shelfaccording to their choices. They are having some complains regarding thefuture cards. 22. Customers wait for discount loyalties provided bythem but not too much Customers are not aware of the benefits of thecard. Many of the customers are not even using any ofthe loyalty program. Store has been a big flop at online shoppingcentre as people want to touch and selecttheir items before purchase.. 23. The materials like shopping bags, catalogues etc. are appealing toattract the customers but some others materials as new offers ,freesamples of new products should be added this series to attract thecustomers. They need not to deviate what they are providing as a loyaltyprogram , i.e. future card. Store must work upon its idea of shopping at home facility and alsodelivery facilities should be improved. Customers want to avail discounts and clubbed offering so, theymust be given more monetary benefit in terms of cost savings. Since loyalty programs are motivational factors for the customer sotheir expectation from such programs must be achieved. 24. Data out of date Lack of Money 25. Books Kotler Philip, Marketing Management, Prentice Hall India, Millennium Edition, 2000 Ries al, Trout Jack, Marketing Warfare, Plume, Reprint 1986 Zeithaml Valarie A, Bitner Mary Jo, Services Marketing, McGraw- Hill, International Edition, 1996 Dunne Patrick, Lusch Robert F., Retailing, Dryden, Third Edition, 1999 Lucas George H. Jr., Bush Robert P., Gresham Larry G., Retailing, All India Publishers, First Edition 1997 26. Magazines and Newspapers The Hindu Business Line Economic Times Business Week Business World Harvard Business Review Franchise Plus Images Retail 27. Websites www.retailyatra.com www.agencyfaqs.com www.indiaonestop.com/retailing.htm www.euromonitor.com/Retailing_in_India www.indiainfoline.com/bisc/reta.pdf www.marketresearch.com/map/prod/1035097.html www.webmasterworld.com/forum22/2874.htm www.etstrategicmarketing.com/ summer-apr2/strategic_iss.htm www.ksa-technopark.com www.pwcglobal.com www.ebonyclick.com www.pantaloon.com www.shoppersstop.com