food bazar project
TRANSCRIPT
A REPORT ON EXPLORATORY STUDY OF PRICING & PROMOTIONAL STRATEGY ADOPTED BY FOOD BAZAR IN NAGPUR
Submitted in the partial fulfillment of the requirement for the
Award of
Master degree of Business Administration (MBA)
Rashtrasant Tukdoji Maharaj Nagpur University, Nagpur
Guided By:
Prof. Geeta Naidu
Submitted By:
Sachin Somkuwar
S. B. JAIN INSTITUTE OF TECHNOLOGY, MANAGEMENT
& RESEARCH
NAGPUR: 2009-2011
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DECLARATION
I, SACHIN SOMKUWAR here by declare that project entitled “ PROJECT TITLE” or any part thereof has not been submitted earlier to any diploma or degree, nor the data have been derived for any project or university.
The Source of material and data used in this formulation have been duly acknowledged and certified.
Place: Nagpur SACHIN SOMKUWAR
Date: Researcher
ACKNOWLEDGEMENT
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I wish to express my sincere thanks to those who have helped me to complete this project.
The completion of this dissertation in this present form would not have been possible by the valuable guidance, assistance, encouragement & contribution of various person at different stages made it possible.
At the outset, I tender my deep sense of gratitude to my Guide “GEETA NAIDU” for his/her meticulous guidance & inspiration which kept in me the fervent desire to complete this work.
I also acknowledge deep gratitude to the Coordiantor “Prof. Geeta Naidu” & other faculty members for their valuable guidance.
I am also grateful to the staff members of library of S.B.J.I.T.M.R for their hearted co-operation in the completion of this task.
SACHIN SOMKUWAR
RESEARCHER
MBA Sem IV
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CHAPTERISATION SCHEME
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SR.NO. TOPIC PAGE NO.
1 INTRODUCTION 1-3
2 COMPANY PROFILE 4-10
3 OBJECTIVE & SCOPE 11
4 RESEARCH METODOLOGY 12-13
5 PRICING AND PROMOTIONAL STRATEGIES
14-17
6 CUSTOMER RELATIONSHIP MANAGEMENT
18-20
7 DATA ANALYSIS & INTERPRETATION
21-29
8 FINDINGS 30
9 SUGGESTION 31-32
10 CONCLUSION 33
11 LIMATATION 34
12 ANNEXURE 35-36
13 BIBLIOGRAPHY 37
CHAPETR NO.1
INTRODUCTION
INTRODUCTION
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Introduction of Food BAZAAR of BIG BAZAAR
Big Bazaar is Indian personification of retail. It’s like an Indian bazaar or mandi or
mela, the environment created by traders to give shoppers a sense of moment. Its
personality is of being an entity away from fancy or pretty and being authentically "no-
frills". Kishore Biyani never hired any foreign consultant for Big Bazaar which is evident
from Indian-specific personality of the brand. The brand’s personality is self-explanatory
by its tag-line only. This statement places Big Bazaar at the top of customer’s mind. It
reflects that entrepreneurship and simplicity are the essence of character of Big Bazaar. To
use predatory pricing is not in the personality of Big Bazaar, they never sell goods below
the price they have purchased it. Big Bazaar, the "Indian Wal-Mart", is the modern Indian
family's favorite store. Big Bazaar symbolizes modern retail, the business which isn’t
looked up to in our country, is now in the eyes of many multi-national biggies. Big Bazaar
has shown a robust growth in recent years.
Pricing is a process of determining what a company will receive in exchange for
the product. Pricing factor includes manufacturing cost, a market condition and a quality
of a product. In food bazaar is one of the four element of market mix that is product, price,
place, promotion. It is link between seller and buyer for the purpose of influencing,
informing, perusing, a potential buyer purchasing decision. Food bazaar is achain of retail
sector of big bazaar like pantaloon retail. (India Ltd)
Big Bazaar has established itself in the first quadrant of Organization Value and
Customer Value Matrix. The SWOT Analysis of current strategy of Big Bazaar elaborates
the core competencies and areas of improvement.
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The key features that have shaped in establishing of brand includes: -
Food Bazaar ensures that no other kirana store / departmental store are offering
considerable discount compared to its own price. This helped Big Bazaar in being the
"value for money" store.
Food Bazaar scores high on product mix as compared to kirana store.
Cheap and local products are heavily stocked in Big Bazaar which make it easier to
attract lower middle class category of customers.
Promotion of kirana is rare event but Big Bazaar used this channel efficiently to
establish itself as national brand.
Customer loyalty resulting in high up sell, i.e., selling to existing customers.
Food Bazaar refrains from high-end locations for business which reduces its rental
budget and provides competitive advantage over competitors. Kishore Biyani has
taken "early movers advantage" in many retail spaces.
The Big Bazaar brand name is in its growth stage. Pantaloon Group faced various small
and large scales troubles in the introductory stage of the brand.
Present years are the high growth years in retail sphere as market has high potential to
sustain growth. The sales are increasing, more and more firms are coming to market,
foreign players are entering into retail sector, and pie of organized retail is increasing in
retail sector.
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CHAPETR NO.2
COMPANY PROFILE
COMPANY PROFILEBig Bazaar comes under the Pantaloon Retail India Limited (PRIL). PRIL was early
to realize the potential of the huge middle-class population in India. We started the
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operations with a trouser brand, Pantaloon. In the initial stages we had small format
outlets branded Pantaloon Shoppe, which were franchise operations realizing the
problems associated with franchise model, we decided to have our own retail outlets.
They launched the own retail store, “Pantaloon’s”. In 1997, they launched Big-Bazaar a
hypermarket with over 1, 70,000 products as the first offering in value retailing segment.
They have introduced the concept of seamless malls in India through the new format
Central. We have wide network of Pantaloons stores spread across the country.
Hence, apart from retailing lifestyle products, it ventured into value retailing by
launching the hypermarket chain. Big Bazaar is a chain that stocks all home need
products under one roof; spread over 30,000 square feet of land, across different cities in
India. It has been positioned as ‘Is se sasta aur acha kahin nahi,’ (Nothing cheaper and
better anywhere) indicating the value of stores. Big Bazaar stocks over 200,000 products
that include apparel, food products, home appliances and cosmetics. Products are
cheaper than the market price by as much as 5 to 60%. Apparels are cheaper by 25 to
60%while the price difference on the other products varies between 5 to 20%.
On Oct. 12, 2001, we launched ‘Big-Bazaar’ as offering in the value retailing
segment. By removing inefficiencies from the distribution chain we are able to unleash
attractive savings, which are passed on to the consumer. Big-Bazaar is India’s first
hypermarket in the discount store format. Big-Bazaar provides more than 2,00,000
items- food, grocery, utensils, kitchen needs, home needs, bath needs, toys, stationary,
electronics & white goods which are sold at a discount to the maximum retail price. Price
is the principal value proposition at these stores.
A big driver of the Big Bazaar is the product variety. This is achieved by selling
wide range of products & through the “Shop-in-Shop” format. As a result, a typical Big-
Bazaar comprises shops that stocks medicines, optical accessories, camera rolls, bakery
products, dry fruits, crockery, glassware, health & beauty products, ladies accessories,
electronics infant necessities, watches, clocks, computer accessories, food & beverages,
stationary, readymade garments, household appliances, home furnishings, baggage We
believe this is a win-win situation as the customer is assured of product availability, the
shop owner can benefit of the in structure & we enjoy assured income without needing
to stock inventory. Also the shop-in-shop offering is able to increase the customer traffic
in to the stores. The Big-Bazaar has been positioned to the customer as a place where
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the customer can shop for each & everything for which if goes to a market. The number
of Big-Bazaar stores has increased from 4 in 2002 to 21 Oct 24, 2005.
They have also launched private label initiative in Big-Bazaar. Understanding of
the apparel industrial, decades of experience& a vertically, integrated structure provides
with more compelling reasons to expand the number of private labels. We have launched
a full range of accessories to supplement the apparel business including imitation
jewellery, sunglasses, watches, mobile phones etc…
Analysts attribute the success of PRIL to cheaper sourcing of products and lower
distribution cost. Pantaloons sourced its products through ‘Consolidators.’ There was a
consolidator for each product category. These consolidators were responsible for
procuring quality goods at the cheapest possible price, and were paid commissions on
their sale at the store. The consolidator directly dealt with manufacturers, and as a result
the distribution cost could be slashed as no intermediates were involved. In addition to
discounts on products through the year, Big Bazaar also held events such as ‘Kitchen
Mela’, ‘Trouser Mela’, etc. to attract customers.
BIG BAZAAR
FOR THE GREAT INDIAN MIDDLE CLASS
It is a unit of Pantaloon Retail (India) Ltd and caters to the Great Indian Middle
Class. It was started as a hypermarket format in Mumbai with approx. 50,000 sqft of
space. Its values and missions are to be the best in Value Retailing by providing the
cheapest prices and hence goes the tag-line
“Is se sasta aur achcha kahin nahin”
It sells variety of merchandise at affordable rates, the prices of which it claims are lowest
in the city but the level of services offered is also very low. Usually the items are clubbed
together for offers as on the lines of Wal-mart and Carrefour and it also offers weekend
discounts. It currently operates out of 64 stores and top 15 stores register a cumulative
footfall of 27 lakh a month on an average.
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The following graph shows the retail life cycle and we can say that Big Bazaar is currently
at the Growth Stage.
MANAGEMENT OF FOOD BAZAAR
Mr. Kishore Biyani, Managing Director
Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and
the Group Chief Executive Officer of Future Group.
Mr. Gopikishan Biyani, Wholetime Director
Gopikishan Biyani, is a commerce graduate and has more than twenty years of
experience in the textile business.
Mr. Rakesh Biyani, Whole time Director
Rakesh Biyani is a commerce graduate and has been actively involved in category
management; retail stores operations, IT and exports. He has been instrumental in the
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Introduction
Growth
Maturity
Decline
Time
Cash flow Flows
implementation of the various new retail formats.
Mr. Ved Prakash Arya, Director
Ved Prakash Arya, is an engineer by training and is a graduate of the Indian Institute
of Management, Ahmedabad. Prior to joining Pantaloon Retail, he was the CEO of Globus.
Mr. Shailesh Haribhakti, Independent Director
Shri Shailesh Haribhakti, is a Chartered Accountant, Cost Accountant, and a
Certified Internal Auditor. He is the Deputy Managing Partner of Haribhakti & Co.,
Chartered Accountants and past president of Indian merchant Chambers. He is on the
Board of several Public Limited Companies, including Indian Petrochemicals Corporation
Ltd., Ambuja Cement Eastern Ltd. etc. He is on the Board of Company since June 1, 1999.
OBSERVATION
There were various observations made from the time I entered the store. They can be
summed up as follows:
Verticals inside the store relates to each category of product
o Food Bazaar Depot- books
o M-bazaar Electronic Bazaar
o Furniture Bazaar Footwear Bazaar
Trolleys are not easily available, especially on other than ground floor.
Little attention to cleanliness. Dust on shelves as well as some product items.
In-house packaging not efficiently done.
Crowded store interiors. Items are arranged in a cluttered way. Tried to stock
maximum number in limited area.
Sign boards are not prominent. Lack of direction creates confusion.
Family crowd is evident. Youth comprises of only around 10% of the crowd.
Food Bazaar very efficiently managed. It is a bit over-staffed but layout is very good.
Shelf space is used very well to stock products with clear distinction.
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POSITIONING STRATEGY
COMPANY VISION, MISSION AND CORE VALUES
“Future” – the word that signifies optimism, growth, achievement, strength,
beauty, rewards and perfection. Future encourages us to explore areas yet unexplored,
write rules yet unwritten; create new opportunities and new successes. To strive for a
glorious future brings to us our strength, our ability to learn, unlearn and re-learn our
ability to evolve.
They, in Future Group, will not wait for the Future to unfold itself but create
future scenarios in the consumer space and facilitate consumption because consumption
is development. Thereby, we will effect socio-economic development for our customers,
employees, shareholders, associates and partners.
Their customers will not just get what they need, but also get them where, how
and when they need. They will not just post satisfactory results, They will write success
stories. They will not just operate efficiently in the Indian economy, we will evolve it.
They will not just spot trends; They will set trends by marrying our understanding
of the Indian consumer to their needs of tomorrow.
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It is this understanding that has helped us succeed. And it is this that will help us
succeed in the Future. They shall keep relearning. And in this process, do just one thing.
Rewrite Rules. Retain Values.
Group Vision
Future Group shall deliver Everything, Everywhere, Every time for Every Indian
Consumer in the most profitable manner.
Group Mission
They share the vision and belief that our customers and stakeholders shall be
served only by creating and executing future scenarios in the consumption space
leading to economic development.
They will be the trendsetters in evolving delivery formats, creating retail realty,
making consumption affordable for all customer segments – for classes and for
masses.
They shall infuse Indian brands with confidence and renewed ambition.
They shall be efficient, cost- conscious and committed to quality in whatever we
do.
They shall ensure that our positive attitude, sincerity, humility and united
determination shall be the driving force to make us successful.
Core Values
Indian ness: confidence in ourselves.
Leadership: to be a leader, both in thought and business.
Respect & Humility: to respect every individual and be humble in our conduct.
Introspection: leading to purposeful thinking.
Openness: to be open and receptive to new ideas, knowledge and information.
Valuing and Nurturing Relationships: to build long-term relationships.
Simplicity & Positivity: Simplicity and Positivity in our thought,
Business action.
Adaptability: to be flexible and adaptable, to meet challenges.
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Flow: to respect and understand the universal laws of nature.
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CHAPETR NO.3
OBJECTIVES & SCOPE
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OBJECTIVES & SCOPE
OBJECTIVES
To study the pricing strategies of food bazaar of Big Bazaar.
To study the promotional activities of the food bazaar of Big Bazaar.
To study the Focus on various areas in planning
To study the Potential and target market.
To study the Customer relationship management
To study the Key department of Big Bazaar.
SCOPE
The study is entirely based on “THE STUDY OF PRICING STRATEGIES AND PROMOTIONAL
ACTIVITIES OF FOOD BAZAAR OF BIG BAZAAR.” When the project report is prepared it
includes all the aspects of project like company’s product and it’s market, manufacturing
process, operational viability, its marketing projection .This helps the management to
understand whether the project is practically possible or not.
It may be use for industries profitability.
It may be useful for analyzing companies’ relationship with their customer.
STUDY OF CUSTOMERS BEHAVIOUR
The other aspect of the study is customer. The study will focus on the customers’ needs,
their intentions for buying the products and their preferences for buying products;
whether the organized retail or traditional retail.
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CHAPETR NO.4
RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
Research Design
Research design is the plan, structure and strategy of investigation conceived so
as to obtain answers to research questions and to control variance.
The plan is an outline of the research scheme on which the research is to work.
The structure of the research is the more specific outline or the scheme and the strategy
that shows how the research will be carried out.
Types of Research Designs
It is broadly classified as exploratory and conducive research, which focuses on
the discovery of ideas. It is generally based on secondary data. Conclusive research is
more formal and structured than the exploratory research. It is based on large
representative samples and the data obtained are subjected to quantitative analysis.
Methods of data collection
Primary data
Since the study is on Food bazaar sector first the detail study of the store
is been conducted about its Management team its structure the number of departments
which all products does the store has, who are its suppliers about its warehouses.
Based on the topic objectives were set and to arrive at the opinion on
objectives a set of 10 questionnaires were designed and response is collected from the
50 customers who are visiting the store. For data collection Random Convenient
sampling method was adopted.
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Secondary data
Any data, which have been gathered earlier for some other purposes, are
secondary data. It acts as a reference for the present study and also acts, as a benchmark
against which are findings of study.
Sources of Secondary Data.
It can be classified as
Published Sources
These are annual Report Survey, journals, handbooks, news papers,
directories, websites, and magazines.
Unpublished Sources
Records of Banks, personal records, letters etc.
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CHAPETR NO.5
PRICING AND PROMOTIONAL
STRATEGIES
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PRICING AND PROMOTIONAL STRATEGIES
After big bazaar coming to India it will be at its introduction stage so it is quite obvious
that it will adopt some strategy for attracting the customers. The strategy which they
would adopt is that they will have low price, high advertisements, it would offer different
kind of schemes, offers, discounts, scratch cards, coupons. They would also give stress on
providing the prompt services like home delivery, after sales services, guarantees and
warrantees, so as to sustain in the market and to create a good reputation.
Following are some additional strategies they require to adopt:
Thorough market research
Site selection and evaluation
Employee search and training
Less premium and low price branded goods in merchandise assortment.
Gaming zone and restaurant
Promotional activities like advertisement, seasonal discounts, festival offers, etc.
While formulating strategies we should keep in mind that strategies should be flexible.
This is helpful to change or revival of strategy.
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FOOD BAZAAR AND 5 FORCES
We can get an idea about how competitive this retail sector is, by looking at the degree
of 5 forces. Threat of substitute is minimal and supplier bargaining power is also less, but
the rest of the forces are deciding factor in the company’s marketing strategy. They being
‘high’, means degree of competitiveness is also high. Big Bazaar is involved in bulk
purchases so bargaining power of suppliers is low. The retail chain will not accept very
low margins.
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4Ps OF MARKETING
Marketing mix is a deciding factor in formulating marketing techniques for the success of a
particular brand, commodity or company. The components of marketing mix are:
Product
Price
Promotion
Place
The survey which was conducted gives the effect of each and every component of the 4Ps
on the consumer’s mind.
PRODUCT
Big Bazaar offers the maximum variety for each category of product and this is cited by the
customers as one of the main reasons why they like shopping at the hypermarket. The
product is the same in every store in the city but the brand options are more in Big Bazaar.
Also, the quantity for each product is not limited to large packs only. Observations also
revealed that local brands of popular commodities, like diapers, sugar, wheat flour
garments etc, are very popular in Big Bazaar stores. These products are never advertised but
offer huge margin on sales. In this way lower middle class customers are targeted well. The
commodities sold by the retail chain also includes its “own products” which get a ready
distribution network. The own products of Big Bazaar include My World fashion magazine
which is not available anywhere else. So costs are low for such products.
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PRICE
Price is the critical point in a competitive industry. Food Bazaar works on a low cost model.
It considers its discounted price as its USP. There is an average discount of 7-8% on all items
in respect to their MRP. Prices of products are low because it is able to secure stock directly
from the manufacturer. There are huge synergies in terms of bulk purchasing, central
warehousing and transportation. These all factors help the retailer to keep low prices.
Survey indicated that low prices were the biggest factor in customers’ mind while coming to
Big Bazaar. It has never focused on giving great services, but laid emphasis only on low
prices to attract crowd.
PROMOTION
Big Bazaar has huge promotion budgets. The biggest idea behind all advertisements is to
make people do bulk shopping. After talking to the store manager I found out that there are
2 types of promotional strategies. One is the holistic advertisement which promotes the
brand and creates awareness among people. It is not targeted at promoting each store but
only creates an image of Big Bazaar as low-cost shopping option. The store has advertised
through TV, road shows and also started reality show-typed promotional campaign “The Big
Bazaar Challenge.” Promotions like “Sabse Sasta Din” are a very successful strategy to get
footfall.
Other type of promotion is the particular store oriented promotion which includes speaking
on the loudspeaker in nearby blocks. Leaflets are given in local newspaper. There are
promotional efforts even inside the store. During the survey, it was noticed that Buy 2 Get 1
Free type of promotions are very common. Original prices are cut down and new prices are
shown, of which customer takes quick notice. There are loyalty schemes which reward
regular clients. Promotion is also done through co-branded credit cards with ICICI bank.
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PLACE
Place means the location of the business. Big Bazaar has always worked on low-cost
locations. It targets semi-urban population with its placement. Its strategy is to find a cheap
location and it never goes for hot spots in the city. The talk with the manager revealed that
the Teghoria store was opened when it was scarcely populated. Even in Gurgaon, Big Bazaar
chose Sahara Mall instead of Metropolitan or City Centre, which are more popular than
Sahara Mall. It relied on promotional activities to make up for unattractive locations. The
channel of place is company owned stores to have complete control. Another strategy used
by Big Bazaar to overcome location disadvantage is use of internet. It has launched a
merchandise retailing website www.futurebazaar.com which targets high-end customers
ready to use credit cards. Therefore Big Bazaar has made headway into a potentially high-
yielding sector of online trade. Internet as place has put them in a profitable position
because there is minimal expense of maintaining a website. The promotion of this website is
done through advertisement on Google. The website is put as sponsored link.
PROMOTION
The main idea behind every effort is to make a bulk purchase
“Saal ke sabse saste 3 din”
Hafte ka sabse sasta din “Wednesday bazaar”
Exchange Offers “Junk swap offer”
Advertisement (print ad, TV ad, radio)
Brand endorsement by M.S Dhoni
Point of purchase promotion
Faida zones
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Junk swap offer
The customer can bring anything old, such as newspaper, and get coupons issued in
exchange of the junk. The customer can redeem the coupons before the due date on
the condition that he/she shops four times the value of the coupon.
The prices fixed by Big Bazaar are: clothes (Rs 200 per kg), newspaper (Rs 25 per kg),
plastics/utensils/leather goods (Rs. 75 per kg), footwear/luggage (Rs. 100 per kg),
Pet/beer bottles (Rs 15 per kg), tyres (Rs 50 per kg), furniture (Rs 75 per kg) and
others (Rs 20 per kg).
"This offer will help the housewife clean out the junk while getting a good value for
it," says Mr. Sanjeev Agarwal, President (Marketing), and Pantaloon Retail (India)
Ltd.
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CHAPTER NO. 6
CUSTOMER RELATIONSHIP MANAGEMENT
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CUSTOMER RELATIONSHIP MANAGEMENT
Customer Relationship Management (CRM) is an information industry term for
methodologies, software & usually internet capabilities that help an enterprise manage
customer relationships in an organize and efficient manner. in many cases, an enterprise
builds a database about its customers. This database describes relationships in sufficient
detail so that management, sales people & customer service reps. can access
information; match customer needs with product plans & offerings; remind customer of
service requirements; no what other products a customer had purchased; etc.
There are three parts of application architecture of CRM.
1. Operational CRM
Operational CRM means supporting the so – called ‘’front office’’ business
processes, which include customer contact (sales, marketing & service). Task
resulting from these processes are forwarded to employees responsible for them,
as well as the information necessary for carrying out the task and interfaces to
back – end application are being provided and activities with customers are being
documented for further reference.
2. Analytical CRM
In analytical CRM, data gathered within operational CRM are analyzed to
segment customer or to identify cross- and up – selling potential. Data collection
and analysis is viewed as continuing and interactive process. Ideally, business
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decisions are refined overtime , based on feedback from earlier analysis and
decisions. Business intelligence offers some more functionality as separate
application software.
3. Collaborative CRM
Collaborative CRM facilitates interactions with customers through all channels
(personals, letter, fax, phone, web, e-mail) and supports coordination of
employee teams and channels. It is a solution that brings peoples, processes and
data together so companies can better serve and retain their customers. The data
activities can be structured, unstructured, conversational and or transactional in
nature.
Collaborative CRM provides the following benefits:
Enables efficient productive customer interactions across all
communications channels.
Enables web collaboration to reduce customer service cost.
Integrates call centers enabling multi – channel personal customer
interaction.
Integrates view of the customers while interaction at the transaction level.
CRM has to two typical implementation methods: on – premise and on – demand /
hosted. Each method has its advantages and disadvantages has described below.
On – premise CRM is appropriate for
Companies seeking to implement highly customize customer – management
practices.
Companies that need specialized data structures
Companies with complex or real – time integration requirements
Companies with available in – house IT resources and support system .
Companies who can afford the up – front capital investment and fixed costs
Companies who deal with sensitive data that don’t want other parties to see.
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On – demand/ hosted CRM is appropriate for
Customer seeking to implement standard processes from a variety of industries
and companies.
Companies that is able to use standard data structures.
Companies with more basic integration requirements
Companies with limited technical resources and support personnel
Companies seeking variable pricing and lower up- front costs
Companies dealing with non – proprietary data.
The CRM process
The CRM process is the most influential customer oriented strategy of the decade.
Despite its humble origins it has evolved into a relatively complex strategy. The essentials
of CRM program include focus.
stapes in the CRM process
Establishing CRM goals
Educating other departments
Assembling customer information
Designing the data model
Vendor study
Selecting the CRM solution
Establishing authority and responsibility
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Pilot projects
Communication with customers’ trough direct male, electronic mail etc
Customer survey
Customer satisfaction program
Collection of customer information
Provision of customer information to employees
Usage of customer information in business activities
Feedback
Analyze
Documenting a new process
Implementing final methodology.
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CHAPETR NO.7
DATA ANALYSIS
&
INTERPRETATION
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DATA ANALYSIS AND INTERPRETATION
1) Which store first comes to your mind when you think of purchasing
a product?
Store preference Male female
Food bazaar 35 10
Vishal mega mart 14 4
Other retailers 26 11
ANALYSIS:
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From the survey, from some respondents, 45 % of them gave 1st preference to Food
Bazaar 18% of them gave preference to Vishal Mega Mart and 37% were gave to other
retailer .
INTERPRETATION
Most of the customers are given 1st preference to Big Bazaar compare to other retailers.
2) From which source did you come to know about Big Bazaar outlet?
ANALYSIS
From the above graph i can come to know that, among 100 respondents, 23% of them
come to know about food Bazaar through TV advt., 34% of the respondents told that
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through Hoardings, 31% of them through news paper, and 12% came to know through
bus painting
INTERPRETATION
Hoarding is the most influencing factor which is responsible for awareness of food
Bazaar.
3) Are you aware of promotional offers conducted by big bazaar?
Response No of respondents Percentage
Yes 67 67%
No 33 33%
Total 100 100%
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ANALYSIS:
Among the 100 respondents, 67% of them they are aware of promotional offers, 33%
told they have told that they are not aware.
INTERPRETATION:
87% of customers are aware of promotional activity in the big bazaar.
4) Please choose below the factor which attracted you most at the Food Bazaar?
Rates No of respondents percentage
Offer 51 51%
Service 9 9%
Quality 23 23%
Availability of products 17 17%
Total 100 100%
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Analysis
Among 100 respondent 51% of customer they have told that they are attracted by the
offers and 9% of them told that they are attracted by service and 23% of them told that
they are attracted by quality and only 17% of them told that only for availability of
products
Interpretation:
Most of the people attracted towards big bazaar only for the promotional offers. So offer
is the most influencing factor among those.
5) Which of the following factors influence in your purchase decision?
Rates No of respondents percentage
Offer 43 43%
Service 11 11%
Quality 21 21%
Effective
advertise
ment 25
25%
Total 100 100%
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ANALYSIS:
Among 100 respondent 43 of them told that offer is responsible for their purchase
decision and 9 of them told that service and 23 of them told that quality an only 25 of
them told that effective advertisement
INTERPRETATION:
Among those factor offer is the emerging factor which is responsible for purchase
decision of buyers
6) Do you think the promotional activity of food bazaar of Big Bazaar gives you clear message?
Response No of respondents Percentage
Yes 77 77%
No 23 23%
Total 100 100%
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ANALYSIS:
Among 100 respondent 77 of them told that the promotional activities of big bazaar gives
clear message and 23 of them told that they do not understood.
INTEPRETATION:
Most of the people highly agree that promotional activity of big bazaar gives clear
message
7) Will you advise anybody to visit food bazaar of Big Bazaar in your future
shopping?
Response No of respondents Percentage
Yes 92 92%
No 8 8%
Total 100 100%
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ANALYSIS:
Among 100 respondents 92 of them told that they will advise others to visit to food
bazaar of big bazaar in future shopping and only 8 of them told that they do not advise.
INTEPRETATION:
Most of the respondent they would like to advise others in future shopping.
8) Looking at the promotions of food bazaar does your purchase pattern
changes?
Response No of respondents Percentage
Yes 83 83%
No 17 17%
Total 100 100%
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ANALYSIS:
Among 100 respondent 83 of them told that these promotional offers changes their
purchase pattern and only 17 of them told do not change.
INTERPRETATION:
Most of the customer believed that promotions is responsible for their purchase decision
9) Would you like to make your purchase under unexpected offers?
Response No of respondents Percentage
Yes 94 94%
No 6 6%
Total 100 100%
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ANALYSIS:
Among 100 respondents 94 of them they are interested to buy products under
unexpected offers and only 6 of them told that they do not buy.
INTERPRETATION:
Most of the customer interested to buy under unexpected offers only.
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CHAPTER NO.8
FINDING From the sample size of 100 samples it is found that the various products are well
positioned in the minds of customers because 77% of the respondent’s preference is
food Bazaar for their shopping.
Among the 100 respondents, 87% of them told that they are aware of
promotional activities of big bazaar .only 13% of thetold that they are not aware
of promotional activity of big bazaar .
Among the 100 respondent 51% of them told that they are attracted towards big
bazaar only for the offers 9% of them told that service and 23% of them told that
quality and only 17% of them told that due to availability of products
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Among 100 respondent 35% of them agree that offers is the most emerging
factor influencing purchase decision and only 23% of them told that service 25%
of told that quality and finally 17% of them told that effective advertisement is
responsible for the purchase decision.
Among 100 respondent 87% of them told that promotional activities of big bazaar
gives clear message and 13% of them told that they did not understood.
Among 100 respondent 98% of people interest to advise others in future
shopping and only 2% of them not interest to advice.
Among 100 respondent 73% them told that promotions of big bazaar changes
their purchase pattern and only 27% told that does not changes.
Among 100 respondent 94% of them told that they are interested to buy products
under unexpected offers and 6% of told that they do not buy.
CHAPETR NO.9
SUGGESTION
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SUGGESTIONS
PLACE
The new store should have a central location in the market because customers will not
prefer one store over the other. They would simply go the most accessible one. Proximity of
location to places like coaching institutes, offices etc would be an added advantage. The
store should be spread over an area of at least 900 square feet. The store should be such
where customers can roam around and feel the products for themselves. Survey revealed
that many customers consider shopping as time pass, hence they take their time in selecting
items. So there should be enough walking space in between product racks. Over the counter
purchase is not desired anymore. The place should be well lit and air conditioned. All the
products in all sizes should be on display.
PRODUCT
Product variety is a big factor in determining customer response. The owner should not limit
itself to brands of few companies only. The range of items available should suit the local
requirements. There should be a balance between branded goods and local products. The
shelf space should be efficiently utilized to give maximum exposure of the product to the
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public. The store should include beauty products in its display because women are chief
buyers in departmental stores. The products should be clearly categorized as high-end or
low-end. The customers should be assured of quality of non-branded items like loose packs
of wheat flour, pulses etc. Diversification of product type is recommended. It should stock
perishable food items, instant eatables, FMCG goods like toiletries.
PRICE
Price of goods depends on the success of the store over a period of time. Margins are very
tight. It is not possible for the owner to match the prices and discount schemes of retail
chains. The store should start off with inaugural discounts to get attention. These discounts
should be slowly discarded. The owner should recognize high potential customers and give
some relief off the MRP mentioned to gain loyalty. This will help the store in long term. One
way to offer better prices is by having local products like biscuits etc which are of assured
quality. This satisfies the demands of low-end customers and local products also give better
margins. The store needs to make sure that no other kirana shop is offering considerable
discount compared to its own prices
.
PROMOTION
A departmental store which operates in a particular locality does not need full fledged
promotional campaigns. But for a start up, the store should distribute leaflets in local
newspapers to create awareness among residents. The leaflet should include special
features of stores with maximum emphasis on inaugural discounts on items. This should
help it create a favorable ‘word of mouth’ scenario. Another way is to talk to general public
and ask for their suggestions on improving the layout. In this way, people will feel happy
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about going to the shop and shopping. The store should use in-store advertising to make
best use of large floor space by putting up discount boards inside the store above a
particular product as well as just outside the shop.
In this way, we can make use of the marketing mix for a new venture which belongs to the
unorganized retail sector. Application of the best marketing practices of organized retail
stores combined with benefits of accessibility of local kirana shops helps to ensure success.
CHAPETR NO.10
CONCLUSION
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CONCLUSION
Indian food sector is witnessing one of the most hectic Marketing activities of all times.
The companies are fighting to win the hearts of customer who is God said by the
business tycoons. There is always a ‘first mover advantage’ in an upcoming sector. In
India, that advantage goes to “BIG BAZAAR”. It has brought about many changes in the
buying habits of people. It has created formats, which provide all items less than one roof
at low rates.
The consumer’s preferences are changing & they are moving from Traditional Kirana
stores to Modern Retail outlet. It’s the main challenge to the Modern retail outlets to
attract the customers towards them from that of competitors. To attract more customers
companies have to carry out the promotional activities in unique way. BIG BAZAAR has
maintained that uniqueness & has succeeded in attracting customers.
The promotional activity of the company, which famous as Less Price than others as it
says ‘Nobody Sells Cheaper and Better!’ is made its place in minds of customer. As the
competition is becoming stiff in the market the activities conducted by the company are
unique, that have brought fruitful result to the company. Among them sales Promotions
is one of the leading activity or unique among all other activities & has high influence on
the customer walk-in.
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CHAPETR NO.11
LIMITATION
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LIMITATIONS
The study was restricted to only the customers of food sector of BIG BAZAAR.
The time constant was a limiting factor, as more time required carrying out study
on other aspects of the topic.
The result and analysis based on the customer survey method and small sample
size has taken only 100
Findings are related to particular areas.
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CHAPETR NO.12
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ANNEXURE
ANNEXURE
Questionnaire
1) Which store first comes to your mind when you think of purchase a product?
a. food Bazaar b. Vishal mart
c. other retailer
2) From which source did you come to know about food Bazaar ?
a. T. V. advertisement b. Hoardings.
c. bus paintings d. news paper e. word of mouth
3) Are you aware of promotional activities conducted by food Bazaar in Nagpur ?
a. Yes b. No.
4) Please choose from below the factor which attracted you most at food Bazaar?
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a. Offer b. service c. quality
d. availability of products
5) Which of the following factors influence in your purchase decision?
a. Offers b. Effective services c. Quality of products
d. Effective advertisement
6) Do you think the promotional activity of food Bazaar gives you the clear message?
a. Yes b. No
7) Will you advise anybody to visit food bazaar of Big Bazaar in future shopping?
a. Yes b. No
8) Looking at the promotions of food Bazaar does your purchase pattern changes?
a. Yes b. No
9) Would you like to make your purchase under unexpected offers?
a. Yes b. No
10) Any valuable suggestion
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……………………………………………………………………………………………
Signature of Customer
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CHAPETR NO.13
BIBILOGRAPHY
BIBLIOGRAPHY
Reference Books
o Marketing Management: Philip Kotler
o Retail Management: Bajaj and Srivastav
JOURNALS AND MAGAZINES
o Business World
o Business Today
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Websites
http://www.agencyfaqs.com/
www.google.com
www.pantaloon.com
www.wikipedia.com
www.timesofindia.com
www.bigbazar.com
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