MCNP - 021 ADVERTISING AND SALES PROMOTION TECHNIQUES USED BY RETAIL BUSINESSES WITH SPECIAL REFERENCE TO BIG BAZAAR

By Raju Enrolment No: 112165967 Under Guidance Of Taruna Rawal

1

Submitted to the Everonn Global School of Business, Chennai in partial fulfillment of the requirements for the award of the degree

Master of Business Administration (MBA) 2011-2013

Indira Gandhi National Open University Maidan Garhi New Delhi 110068.

CERTIFICATE

This is to certify that the project ADVERTISING AND SALES PROMOTION TECHNIQUES USED BY RETAIL BUSINESSES WITH SPECIAL REFERENCE TO BIG BAZAAR is an original work of the Student and is being submitted in partial fulfillment for the award of the Masters Degree in Business Administration of Indira Gandhi National Open University. This report has not been submitted earlier either to this University or to any other

University/Institution for the fulfillment of the requirement of a course of study.

SIGNATURE OF SUPERVISOR OF STUDENT Place : Date: Date Place :

SIGNATURE

DECLARATION

I the undersigned solemnly declare that the report of the project work entitled ADVERTISING AND SALES PROMOTION TECHNIQUES USED BY RETAIL BUSINESSES WITH SPECIAL REFERENCE TO BIG BAZAAR is based on my own work carried out during the course of my study under the Guidance of Mrs. Taruna Rawal I assert that the statements made and conclusions drawn are an outcome of the project work. I further declare that to the best of my knowledge and belief that the project report does not contain any part of any work which has been submitted for the award of any other degree/diploma/certificate in this University or any other University.

_______________

(RAJU) Enrollment No.112165967

ACKNOWLEDGEMENT It is my pleasure to be indebted to various people, who directly or indirectly contributed in the development of this work and who influenced my thinking, behavior and acts during the course of study. First of all I am thankful to BIG BAZAAR. Where I got the opportunity to undertaken the project. I am also thankful to Mrs. TARUNA RAWAL for her support, cooperation and motivation provided to me during the training, for constant inspiration, presence and blessings. Lastly, I would like to thank the almighty and my parents for their moral support and my friends with whom I shared my day-to-day experience and received lots of suggestions that improved my quality of work.

EXECUTIVE SUMMARY

The study of any subject is made by examining it in an organized fashion. There are three classes of variables involved in understanding consumer behavior; STIMULUS, RESPONSE and INTERVENING variables. Stimulus variables, such as advertisements, products exist in both the individuals external environment. These generate a sensory input to consumers. Response variables are the resulting mental / or physical reactions of individuals who are influenced by stimulus variables. For e.g.:- purchasing a product or forming attitudes about it could be viewed as response variables. Many of the variables affecting consumers (such as personality, learning and perceptions are external situations, motives, and so forth) cannot be directly observed.

A questionnaire was prepared by us in order to conduct market survey. The questionnaire was based on different parameters to judge and understand the consumer behaviors and determine the best possible strategies which could be used to attract customers. The research carried out in this project was descriptive in nature. The study was aimed at knowing the various eating habits of a consumer. This project helped in understanding what exactly a customer looks in an eating joint before entering it. It gave an idea about the essential factors that are required now a day for an eating joint to attract customers in this competitive world. We were also given a task to understand the customer eating habits, what a customer wants while eating in a restaurant what all a consumer look for and what are their expectations, how can a mall owner satisfy the needs & wants of a consumer so that the consumer may come back & the retailer can retain its consumer. This project helps us to figure out the different consumer eating behavior & to understand the overall consumer perception of eating in a restaurant as well as their demand for mall. The trend today has been to combine shopping with various offering. For e.g. apart from shopping there are food courts, cinema theaters & even in some an amusement centre for children. Shopping has made people spend not just on their requirement of goods to be bought but to look on the totally of experience have a quick bite at McDonalds in the mall or lets the kids play fun game while one is busy shopping or even taking the family out

for movie & having a dinner all under one roof. The benefits of this totally offering are that many vendors get to have peoples patronize their offerings, while the Shopping experience i.e. being enhanced, more business got by the stores at the venue. Shopping is no longer a one time agenda for people. Various options are opening up.

CONTENT
S. NO. 1. 1.1 1.2 1.3 2. 2.1 3. CHAPTER Executive Summary CHAPTER-1 INTRODUCTION COMPANY PROFILE INDUSTRY PROFILE CHAPTER-2 LITERATURE REVIEW CHAPTER-3 PAGE NO. 3 8 9 10 21 25 26 30

3.1 3.2 4 4.1 5 5.1 5.2 6 6.1 6.2 6.3 6.4

NEED OF THE STUDY OBJECTIVES OF THE STUDY CHAPTER-4 RESEARCH METHODOLOGY CHAPTER-5 DATA ANALYSIS AND INTERPRETATION LIMITATION OF THE STUDY CHAPTER-6 CONCLUSION SUGGESTION REFERENCES QUESTIONNAIRE

31 32 33 34 37 38 53 54 55 56 57 58

CHAPTER-1

INTRODUCTION

In saying, marketing involves the conception, pricing, promotion and distribution of ideas, goods and services. The fundamental objective of marketing is to exchanges of goods and services (Frances Brassington and Stephen Pettitt, 2005) By designing products setting sensible, acceptable and justifiable prices, creating awareness and preferences, and ensuring availability and service, the marketer can influence the volume of exchange therefore marketing can be considered as a demand management activity on the part of the selling company.

Promotion is an important component of marketing mix which has got a very significant impact on the demand managing activity of marketing. The key components of promotion includes personal selling, direct marketing, advertising, sales promotion, and public relations. Sales promotion is a range of marketing techniques designed with in a strategic marketing frame work to add extra value to a particular product or services, developing a promotion strategy involve deciding on the objectives of marketing communication. Promotion objectives are so vital that these objectives are the key in determining the role of each components of the promotion mix in the marketing objectives of the organisation. The role of promotion mix components depends on the type of organization, nature of products, etc. Promotion is a part of integrated marketing communication which recognizes the advantages of having a complete plan to find better ways of understanding and connecting with consumers.

COMPANY PROFILE

BIG BAZAAR

Big Bazaar is a chain of hypermarkets in India, with more than 100 stores in operation. It is a subsidiary of Future Group Venture Ltd's, and follows the business model of United States-based Wal-Mart. Facilities offered by Big Bazaar online

shopping: Big Bazaar has an official website, FutureBazaar.com, which is one of the most favorite sites among people of India for online shopping. Future Bazaar is an online business venture of Future Group, which sells an assortment of products such as fashion, which includes merchandise for men and women, mobile accessories, mobile handsets and electronics like home theatres, video cameras, digital camera, LCD TVs, kitchen appliances and many more. Discounts: Hfte ka sabse sasta din was introduced by the Big Bazaar, wherein extra and special discounts were offered on Wednesday every week, to attract the potential buyers into their store. Security check: At each exit of Big Bazaar, they use alarm systems or Electronic Article Surveillance system, which detects the products that has attached tags or not. 1. Big Bazaar is a chain of hypermarket in India, which caters to every familys needs and requirements. 2. Big Bazaar has released the doors for the fashion world, general merchandise like sports goods, cutlery, crockery, utensils, and home furnishings etc. at best economical prices. 3. Big Bazaar group offers more than 100 stores all over the country with an amalgamation of Indian bazaars feel and touch with a convenience and choice of the modern retail facilities 4. The worldwide country chain, Big Bazaar, is formed by CEO of Future Group, Mr. Kishore Biyani. Their basic attraction associated with reasonable prices is their Unique Selling Price. 5. Big Bazaar has become a massive hit with lower middle-class and middle class people as a major client base.

6. Reflect the look and feel of Indian bazaars at their modern outlets.

GROUP VISION To deliver Everything, Everywhere, Everytime to Every Indian Consumer in the most profitable manner. GROUP MISSION 1 We 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. 2 We will be the trendsetters in evolving delivery formats, creating retail realty, making consumption affordable for all customer segments for classes and for masses. 3 We shall infuse Indian brands with confused and renewed ambition 4 We shall be efficient and cost-conscious and committed to quality in whatever we do Board of directors 1. Managing director Mr kishore Biyani 2. Wholetime Director Mr Gopikishan Biyani Mr Rakesh Biyani 3. Director

 Mr Shailesh Haribhakti Mr S.Doreswamy Mr Darlie Koshy Mr Anil Harish

BIG BAZAAR SUPER CENTER

Big Bazaar Hyper mart chain in India

Outlet

140 Outlets

Parent Group

Future Group

Owner

Kishore biyani

Founded

2001

Head Quarter

Jogeshwari, Mumbai

Industry

Retail

Tagline

Is se sasta aur accha kahin nahi

Major Milestones 1 9 8 7 1 9 9 1 1 9 9 2 1 9 9 4 1 9 9 5 1 9 9 7 2 0 0 Company incorporated as Manz Wear Private Limited. Launch of Pantaloons trouser, Indias first formal trouser brand.

Launch of BARE, the Indian jeans brand.

Initial public offer (IPO) was made in the month of May.

The Pantaloon Shoppe exclusive menswear store in franchisee format launched across the nation. The company starts the distribution of branded garments through multi-brand retail outlets across the nation. John Miller Formal shirt brand launched.

Pantaloons Indias family store launched in Kolkata.

Big Bazaar, Is se sasta aur accha kahi nahin - Indias first hypermarket chain launched.

1 2 0 0 2 2 0 0 4 2 0 0 5 2 0 0 6 Food Bazaar, the supermarket chain is launched.

Central Shop, Eat, Celebrate In The Heart Of Our City - Indias first seamless mall is launched in Bangalore.

Fashion Station - the popular fashion chain is launched aLL a little larger - exclusive stores for plus-size individuals is launched Future Capital Holdings, the companys financial arm launches real estate funds Kshitij and Horizon and private equity fund Indivision. Plans forays into insurance and consumer credit. Multiple retail formats including Collection i, Furniture Bazaar, Shoe Factory, EZone, Depot and futurebazaar.com are launched across the nation. Group enters into joint venture agreements with ETAM Group and Generali.

7P Analysis of Big Bazaar 7P Marketing Mix is more useful for services industries and knowledge intensive industries. Successful marketing depends on number of key issues. The seven keys issues are explained as: Product Big Bazaar offers a wide range of products which range from apparels, food, farm products, furniture, child care, toys, etc. . Products of all the major brands are available at Big Bazaar .Also, there are many in house brands promoted by Big Bazaar. Big Bazaar sold over 300,000 pairs of jeans, 50,000 DVD-players and 25,000

microwave-ovens. In all, the fashion, electronics and travel segments made up about 70% of sales. Last year, these categories made up only about 60%. Price The tag-line is "Is se sasta aur accha aur kahin nahi". They work on the model of economics of scale. There pricing objective is to get "Maximum Market Share". The various techniques used at Big Bazaar are: Value Pricing (EDLP - Every Day Low Pricing): Big Bazaar promises consumers the lowest available price without coupon clipping, waiting for discount promotions, or comparison shopping. Promotional Pricing: Big Bazaar offers financing at low interest rate. The concept of psychological discounting (Rs. 99, Rs. 49, etc.) is used as promotional tool. Big Bazaar also caters on Special Event Pricing (Close to Diwali, Gudi Padva, and Durga Pooja). Differentiated Pricing: Time pricing, i.e., difference in rate based on peak and nonpeak hours or days of shopping is also a pricing technique used in Indian retail, which is aggressively used by Big Bazaar. Bundling: Selling combo-packs and offering discount to customers. The combo-packs add value to customer.

Place Big Bazaar stores are located in 50 cities with 75 outlets.Big Bazaar has presence in almost all the major Indian cities. They are aggressive on their expansion plans.

Promotion

Big Bazaar started many new and innovative cross-sell and up-sell strategies in Indian retail market. The various promotion techniques used at Big Bazaar include "saal ke sabse saste teen din", Future Card (the card offers 3% discount), Shakti Card, Brand Endorsement by M. S. Dhoni, Exchange Offer - Junk Swap Offer', Point-ofPurchase Promotions. Advertising has played a crucial role in building of the brand. Big Bazaar advertisements are seen in print media, TV, Radio (FM) and road-side bill-boards.

People They are one of the key assets for any organization. The salient features of staff of Big Bazaar are: Well-trained staff, the staff employed by Big-Bazaar are well-suited for modern retail. Well-dressed staff improves the overall appearance of store. Employees are motivated to think out-of-the-box. Retail sector is in growth stage, so staff is empowered to take innovative steps. Employs close to 10,000 people and recruits nearly 500 people every month. Use of technology like scenario planning for decision making. Multiple counters for payment, staff at store to keep baggage and security guards at every gate, makes for a customer-friendly atmosphere. Process The goods' dispatch and purchasing area has certain salient features which include: Multiple counters with trolleys to carry the items purchased. Proper display / posters of the place like (DAL, SOAP, etc.). Home delivery counters also started at many places.

Advertising: The Essential of Brand Building Process Advertising is an essential component of brand building. The advertisement and brand building is done through various ways, the techniques used are: Tag-line: Big Bazaar tag-lines are the key components of advertising. These tag-lines are modified according to demographic profile of customers. These catch-phrases appeared on hoardings and newspapers in every city where Big Bazaar was launched. Everybody understood and connected easily with these simple one-liners. The catchliners include "Hindi - Chane ke bhaw kaaju", "Bengali - Rui er dame illish", "Hindi Stall ke bhaw balcony", etc. Print Ads: Big Bazaar newspaper advertisements are present just before launch of any new scheme. This creates aura about the Big Bazaar brand in the minds of customers. TV Ads: Kishore Biyani spends a lot of money in brand building exercise. Big Bazaar commercials are shown on various channels in India. Presently, Fashion@Big Bazaar commercial is aired. Road-side Advertisements: Big Bazaar bill-boards are displayed on prime locations in various cities as a brand building exercise. They display the catch-phrases now-adays. Radio Ads: This technique is used in cities like Sangli (Tier 1 / Tier 2 cities). Now-adays, it is replaced by advertisements on FM channels. This informs customers about all new happenings at Big Bazaar. Fashion Shows: "FASHION @ BIG BAZAAR - Desh Badla, Bhesh Badlo" is the latest invention of the Indian iconic brand. In an effort to take the Fashion to the masses, Big Bazaar, the flagship hypermarket brand of retail chain of Future Group, organized a three-day Fashion Show on the streets of Bandra, Mumbai. Brand Endorsement by Celebrity: Big Bazaar is always associated with celebrities for advertising and marketing of its brand name. The current campaign is starred by

Brand Ambassador and Indian Cricket ODI Captain Mahendra Singh Dhoni. Earlier Himesh Reshammiya and Sanath Jaisuriya were associated with Big Bazaar.

INDUSTRY PROFILE
Retail Sector in India

Retail is booming sector in India. Retail, one of Indias largest industries, has presently emerged as one of the most dynamic and fast paced industries with several players entering the market. Retail Accounts for over 10 per cent of the countrys GDP and around eight per cent of the employment in India. As the contemporary retail sector in India is reflected in sprawling shopping centers, multiplex- malls and huge complexes offer shopping, entertainment and food all under one roof, the concept of shopping has altered in terms of format and consumer buying behavior, ushering in a revolution in shopping in India. This has also contributed to large scale investments in the real estate sector with major national and global players investing in developing the infrastructure and construction of the retailing business. The trends that are driving the growth of the retail sector in India are Low share of organized retailing Falling real estate prices Increase in disposable income and customer aspiration

 Increase in expenditure for luxury items Another credible factor in the prospects of the retail sector in India is the increase in the young working population. In India, high pay-packets, nuclear families in urban areas, along with increasing working-women population and emerging opportunities in the services sector. These key factors have been the growth drivers of the organized retail sector in India.

The retailing configuration in India is fast developing as shopping malls are increasingly becoming familiar in large cities. When it comes to development of retail space specially the malls, the Tier II cities are no longer behind in the race.

India is being seen as a potential goldmine for retail investors from over the world and India has the top destination for retailers for an attractive emerging retail market. Indias vast middle class and its almost untapped retail industry are key attractions for global retail giants wanting to enter newer markets. Even though India has well over 5 million retail outlets, the country sorely lacks anything that can resemble a retailing industry in the modern sense of the term. This presents international retailing specialists with a great opportunity. The organized retail sector is expected to grow stronger than GDP growth in the next five years driven by changing lifestyles, burgeoning income and favorable demographic outline.

FDI in Retail Sector Retailing is the largest private sector industry in the world economy with the global industry size exceeding $6.6 trillion and India is the top destination for retail investors. And the further upsurge is anticipated in the retail sector as the Government of opened up 51% FDI in single brand retail outlets. And as the government is in a process to initiate a second phase of reforms, it is cautiously exploring the avenues for multibrand segment. The Government is seeking for these options keeping in view the existing social framework of India and the will ensure that the entry of global retail giants do not displace the existing employment in the retail business. Industry experts are sensitive to the point that local markets have an edge over the retail investors in India as they have unique advantages such as an understanding of local needs and extended service like home delivery. As the FDI influence on the Indian retail sector sets in, the total size of the retail trade is expected to grow extensively in the coming years and the consumer segments patronizing the big malls will create frenzy for organized retailing predicting a growth of 25-30 per cent per annum over the next decade. Moreover, Indian retail chains would get integrated with global supply chains since FDI will bring in technology, quality standards and

marketing thereby, leading to new economic opportunities and creating more employment generation. Industry trends for retail sector indicate that organized retailing has major impact in controlling inflation because large organized retailers are able to buy directly from producers at most competitive prices. World Bank attributes the opening of the retail sector to FDI to be beneficial for India in terms of price and availability of products as it would give a boost to food products, textiles and garments, leather products, etc., to benefit from large-scale procurement by international chains; in turn, creating jobs opportunities at various levels.

PROMOTIONAL OFFERS Meaning Promotion is an important marketing force that provides extra incentives to achieve sales. Promotion is an important marketing tool as compared to advertisements and sales force. Promotion is both short term and long term activities carried.

ROLE OF PROMOTION

Promotions are an extremely valuable tool for the marketing of brands. Like all other tools, promotions can make a valuable contribution to marketing when they are properly used.

Promotions are offered to the customers to get the sales and to increase their market share

The short term promotions are towards increasing the sales and the long term sales are towards increasing the customer base.

WHEN TO USE PROMOTION

A brands quality is inferior to competition A brands advertising is not as persuasive as competitive A new brand is being introduced

BELOW

THE

LINE

SALES

PROMOTION

Below the line sales promotions are short-term incentives, largely aimed at consumers. Methods 1. be done to of the the of below the Price in normal selling at two price the of a line sales promotion promotions ways: product, or

Price promotions are also commonly known as" price discounting". These can

(1) A discount (2) More

product

normal

price.

Price promotions however can also have a negative effect by spoiling the brand reputation or just a temporary sales boost (during the discounts) followed by a lull 2. when the discount would be called off.

Coupons

Coupons are another, very versatile, way of offering a discount. Consider the following On examples a pack of to the use of repeat coupons: purchase

encourage

- In coupon books sent out in newspapers allowing customers to redeem the

coupon A On cut-out the

at coupon back as of

a part of till an

retailer advert receipts

The key objective with a coupon promotion is to maximize the redemption rate this is the proportion of customers actually using the coupon. It must be ensured when a company uses coupons that the retailers must hold sufficient stock to avoid customer disappointment.

Use of coupon promotions is often best for new products or perhaps to encourage 3. sales of Gift existing products that are slowing down.

with

purchase

The "gift with purchase" is a very common promotional technique. In this scheme, the customer gets something extra along with the normal good purchased. 4. It works products luxuries best (e.g. (e.g. and for magazines) perfumes) prizes

Subscription-based Consumer Competitions

This is an important tool to increase brand awareness amongst the target consumer. It can be used to boost up sales for temporary period and ensure usage amongst first time users.

 5. to Money the refunds manufacturer.

Here, a customer receives a money refund after submitting a proof of purchase Customers often view these schemes with some suspicion particularly if the method of obtaining a refund looks unusual or onerous. 6. Frequent user / loyalty incentives Repeat purchases may be stimulated by frequent user incentives. Perhaps the best examples of this are the many frequent flyer or user schemes used by airlines, 7. train companies, car hire companies etc. displays

Point-of-sale

shopping habits are changing for the people living in metropolitan cities. People prefer big retail outlets like Big Bazaar to local kirana stores. Most of the decisions of buying are taken by the virtue of point-of-sale displays in these BTL retail PROMOTION activities of Big outlets. Bazaar:

BTL promotions are gaining popularity among all big companies nowadays considering their effectiveness because of the "individual customer promotion" at a price, which is much lesser than the normal media promotions. School Khushi Happy Low prices on Wednesday of Promotional Jao Ki Fathers Khushi Low prices Big on Wednesday Day offers Khushi Barsaat Day Concept

CHAPTER-2

LITERATURE REVIEW

WHAT IS RETAILING Retailing is all the activities involved in selling goods and services directly to final consumers for their personal, non-business use. The word retail is derived from the French word retailer, meaning to cut a piece off or to break bulk. A retailer buys goods or products in large quantities from manufacturers or importers, either directly or through a wholesaler, and then sells individual items or small quantities to the general public or end user customers, usually in a shop, also called store. Retailers are at the end of the supply chain. Marketers see retailing as part of their overall distribution strategy.

Retailing is one area of the broader term, e-commerce. Retailing is buying and selling both goods and consumer services. With more number of educated and literate consumers entering the economy and market, the need for reading the pulse of the consumers has become very essential.

Retail marketing is undergoing radical restructuring. This is because of increase in gross domestic product, increase in per capita income, increase in purchasing power and also the ever changing tastes and preferences of the people. The entry of plastic money, ATMs, credit cards and debit cards and all other consumer finances, the taste for the branded goods also added for the evolution of retail marketing.

Retail marketing is not just buying and selling but also rendering all other personalized consumer services. With the RM picking up it has given a new look for various fast moving capital goods (FMCG) goods. This not only increased the demand for various goods in the market but also made retail marketing the second largest employment area, the first being agriculture.

TYPES OF RETAILING Retailing can be classified under two heads: 1 Store Retailing 2 Non-store Retailing. Retailing is a distinct, diverse and dynamic sector . It is an activity of enormous economic significance to most developed nations. It generates revenue and wealth for nation, encourages investments and brings technological advancements. Stated that it brings employment and creates wealth of the economy. It is a vibrant part of our changing society and a major source of employment Retailing performs activities at larger level so it requires massive manpower to handle and manage its operations. Retailing also helps society in general by providing goods and services in reasonable price and increasing their standards of living. Retailing activity can be viewed as a significant contributor to the economy in general. Retailing is the set of activities that markets products or services to final consumers for their own personal or household use. It does this by organizing their availability on a relatively large scale and supplying them to consumers on a relatively small scale.

Retailing makes products and services available in large quantities. Retailers produce or order the products/services in bulk so they can take advantage of economy of scale and thus they can formulate competitive pricing strategies. Products and services are generally sold through the store or on the internet. Store Retailing Retail stores come in a variety of shapes and sizes, and new retail types keep emerging. They can be classified by one or more of several characteristics: 1Amount of service 2Product line 3Relative prices 4Control of outlets 5Type of store cluster

1) AMOUNT OF SERVICE Different products require different amounts of service, and customer service preferences vary: Self-service retailers Customers are willing to perform their own "locate-compare-select" process to save money. Today, self-service is the basis of all discount operations, and typically is used by sellers of convenience goods (such as supermarkets) and nationally branded, fast moving shopping goods (such as catalog showrooms). Limited service retailers

Retailers such as Sears and J. C. Penney, provide more sales assistance because they carry more shopping goods about which consumers need information. Their increased operating costs resulting higher prices. Full service retailers Like specialty stores and first-class department stores, have salespeople to assist customers in every phase of the shopping process. Full service stores usually carry more specialty goods for which customers like to be waited on. They provide more liberal return policies, various credit plans, free delivery, home servicing, and extras such as lounges and restaurants. 2) PRODUCT LINE: Retailers can also be classified by the depth and breadth of their product assortments. The depth of a product assortment refers to the number of different versions of each product that are offered for sale. The breadth of the assortment refers to the number of different products that the store carries.

. General Merchandisers These retailers carry a wide range of product categories (i.e., broad width) though the number of different items within a particular product line is generally limited (i.e., shallow depth). . Multiple Lines Specialty Merchandisers - Retailers classified in this category

stock a limited number of product lines (i.e., narrow width) but within the categories they handle they often offer a greater selection (i.e., extended depth) than are offered by general merchandisers. For example, a consumer electronics retailer would fall into this category. Single Line Specialty Merchandisers Some retailers limit their offerings to just one product line (i.e., very narrow width), and sometimes only one product (i.e., very

shallow depth). This can be seen online where a relatively small website may sell a single product such as computer gaming software. Another example may be a small jewelry store that only handles watches. 3) RELATIVE PRICES Retailers can also be classified by the prices they charge. Most retailers charge regular prices and offer normal quality goods and customer service. Some offer higher quality goods and service at higher prices Discount Pricing Discount retailers are best known for selling low priced products that have a low profit margin (i.e., price minus cost). To make profits these retailers look to sell in high volume. Typically discount retailers operate with low overhead costs by vigorously controlling operational spending on such things as real estate, design issues (e.g., store layout, website presentation), and by offering fewer services to their customers. Competitive Pricing The objective of some retailers is not to compete on price but alternatively not to be seen as charging the highest price. These retailers, who often operate in specialty markets, aggressively monitor the market to insure their pricing is competitive but they do not desire to get into price wars with discount retailers. Thus, other elements of the marketing mix (e.g., higher quality products, nicer store setting) are used to create higher value for which the customer will pay more. Full Price Pricing Retailers targeting exclusive markets find such markets are far less price sensitive than mass or specialty markets. In these cases the additional value added through increased operational spending (e.g., expensive locations, more attractive design, more services) justify higher retail prices.

CHAPTER-3

NEED OF THE STUDY

In this competitive world, there exists huge competition between organizations of retail sector. The company which adopts best sales promotion activities will have better profits. So, it is necessary to know companys sales promotion activities which results in sales growth and turn profits to the organization.

OBJECTIVE OF THE STUDY

Following are the objectives of the study: To find out the influence of Advertising and Sales promotion on the sales of the Big Bazaar To find the most effective tool of Sales promotion technique to entice customers used by Retail businesses. To study various advertising and sales promotion techniques used by Big Bazaar. To find out the influence of Advertising and Sales promotion on the sales of Big Bazaar. To find the effectiveness of the Brand recall and Recognition of Big Bazaar.

 To find out the ranking of Big Bazaar with its relative competitors as per the customers. To find certain new techniques that Big Bazaar can adopt to improve its services

CHAPTER-4

RESEARCH METHODOLOGY

Methodology adopted for study Observation Method (Observing the working of various departments like finance, marketing, purchasing, production.) Questionnaire method (Enquiring about the Sales promotion techniques adopted by Big Bazar from its Managers and employees, also from the cusomers visiting the store)

 Visiting & surfing websites of company. Meaning Research Methodology is a set of various methods to be followed to find out various Informations regarding market strata of different products. Research Methodology is required in every industry for acquiring knowledge of their products. Area of study The study is exclusively done in the area of marketing. It is a process requiring care, sophistication, experience, business judgment, and imagination for which there can be no mechanical substitutes. Sources of Data Primary Source - The primary data was collected by means of a survey. Questionnaires were prepared and customers of the big bazaar at two branches were approached to fill up the questionnaires. The questionnaire contains 20 questions which reflect on the type and quality of services provided by the Big bazaar to the customers. The response of the customer is recorded on a grade scale of strongly disagree, disagree, uncertain, agree and strongly agree for each question. The filled up information was later analyzed to obtain the required interpretation and the findings. Secondary Source - In order to have a proper understanding of the customer service of Big Bazaar a depth study was done from the various sources such as books, a lot of data is also collected from the official websites of the Big bazaar and the articles from various search engines like Google, yahoo search and answers.com.

RESEARCH DESIGN The research design is exploratory till identification of customer services parameters. Later it becomes descriptive when it comes to evaluating the promotion techniques of the big bazaar. Descriptive research, also known as statistical research, describes data and characteristics about the sales promotion techniques being studied. Descriptive research answers the questions who, what, where, when and how. Although the data description is factual, accurate and systematic, the research cannot describe what caused a situation. Thus, descriptive research cannot be used to create a causal relationship, where one variable affects another. The description is used for frequencies, averages and other statistical calculations. Often the best approach, prior to writing descriptive research, is to conduct a survey investigation. Qualitative research often has the aim of description and researchers may follow-up with examinations of why the observations exist and what the implications of the findings are. RESEARCH SAMPLE SAMPLING PLAN: Since it is not possible to study whole universe, it becomes necessary to take sample from the universe to know about its characteristics. Sampling Units: Customers and Empolyees of Big bazaar. Sample Technique: Random Sampling. Research Instrument: Structured Questionnaire. Contact Method: Personal Intervie/Filling the Questionnairs.

SAMPLE SIZE: The work is a case of Big bazaar one of the Retail Sector industry together representing great per cent of the market share of Indian retail sector. The survey was conducted in the city of Chandigarh with two branches of big bazaar, with 100 customers as respondent. DATA COLLECTION TOOL Data is collected from various customers through personal interaction. Some other information is collected through secondary data also. Data was collected through a structured questionnaire, Likert Scale is used for analysis. Likert scale is simply a statement which the respondent is asked to evaluate according to any kind of subjective or objective criteria, generally the level of agreement and disagreement is measured Likert scaling is a bipolar scaling method, measuring either positive or negative response to a statement.

CHAPTER-5

DATA ANALYSIS

INTREPRETATION
GRAPHS AND FINDINGS

AND

Concept: To survey whether the customers visiting at Big Bazaar are aware of the Promotional offers Table No: 1
Are you aware of promotional offers at Big Bazaar Frequency 210 40 250 Percent 84.0 16.0 100.0 Valid Percent 84.0 16.0 100.0 Cumulative Percent 84.0 100.0

Valid

Yes No Total

Graph No: 1

Are you aware of promotional offers at Big Bazaar

Yes No

16.00%

84.00%

Interpretation: Majority (84%) of the customers surveyed were aware of the Promotional offers at Big Bazaar. Concept: To study mode of communicating promotional offers to the customers Table No: 2
What was the mode of Communication Frequency 35 136 39 210 40 250 Percent 14.0 54.4 15.6 84.0 16.0 100.0 Valid Percent 16.7 64.8 18.6 100.0 Cumulative Percent 16.7 81.4 100.0

Valid

Missing Total

TV News Paper Hordings Total System

Graph No: 2

What was the mode of Communication

70 60 50 40 30 20 65

Percent

17 10 0 TV News Paper

19

Hordings

What was the mode of Communication

Interpretation: News paper was the most effective mode for communication, followed by hoardings and TV advertisements. Concept: To check the alertness of customers towards the announcements made at Big Bazaar during shopping Table No: 3
Did you notice/hear about the Promotional offers Today Frequency 232 18 250 Percent 92.8 7.2 100.0 Valid Percent 92.8 7.2 100.0 Cumulative Percent 92.8 100.0

Valid

Yes No Total

Graph No: 3

Did you notice/hear about the Promotional offers Today

Yes No
7.20%

92.80%

Interpretation: Promotional offers are noticed and heard by the customers during their shopping Concept: To study frequency the sample customers visited Big Bazaar Table No: 4 How frequently you visit Big Bazaar
Fre que ncy Per cen t Valid Perc ent Cum ulativ e Perc

ent V a li d Occasion ally Once in a month Once in a week Daily As and when required Total 9 42 163 4 32 3.6 16. 8 65. 2 1.6 12. 8 100 .0 3.6 16.8 65.2 1.6 12.8 100. 0 3.6 20.4 85.6 87.2 100. 0

250

Graph No: 4

How frequently you visit Big Bazaar

60

Percent

40
65.20%

20

16.80% 12.80%

3.60%

1.60%

Occasionaly

Once in a month

Once in a week

Daily

As and when required

How frequently you visit Big Bazaar

Interpretation: 65% of the customers visit Big Bazaar once in a week, either on Wednesday or week ends, followed by customers visiting once in a month and as and when required. Concept: Effectiveness of promotional offers inducing the customers to make purchases Table No: 5
Promotional offers at Big Bazaar are attractive and induce me to make a purchase Frequency 65 100 56 29 250 Percent 26.0 40.0 22.4 11.6 100.0 Valid Percent 26.0 40.0 22.4 11.6 100.0 Cumulative Percent 26.0 66.0 88.4 100.0

Valid

Strongly Agree Agree Neither Agree/Nor Dis-agree Dis-agree Total

Graph No: 5

Promotional offers at Big Bazaar are attractive and induce me

50

40

40

30 26 20 22

Percent

10

12

0 Strongly Agree Agree Neither Agree/Nor Di Dis-agree

Promotional offers at Big Bazaar are attractive and induce me to make a

Interpretation: 26% strongly agree, 40% agree, 22% neither agree nor dis-agree and remaining customers dis-agree Concept: To study customers preferences of the commodities Table No: 6
Rank the products that you expect promotional offers Frequency 125 80 32 13 250 Percent 50.0 32.0 12.8 5.2 100.0 Valid Percent 50.0 32.0 12.8 5.2 100.0 Cumulative Percent 50.0 82.0 94.8 100.0

Valid

Clothing Groceries Electronic items Furnitures Total

Rank the products that you expect promotional offers

50

40

Percent

30
50.00%

20
32.00%

10
12.80% 5.20%

0 Clothing Groceries Electronic items Furnitures

Rank the products that you expect promotional offers

Graph No: 6 Interpretation: Customers preferred clothing followed by groceries, electronic items and furnitures.

Concept: To study whether customers availed benefit of promotional offers Table No: 7

Have you availed any offers during your recent visit Frequency 214 36 250 Percent 85.6 14.4 100.0 Valid Percent 85.6 14.4 100.0 Cumulative Percent 85.6 100.0

Valid

Yes No Total

Graph No: 7

Have you availed any offers during your recent visit

Yes No

14.40%

85.60%

Interpretation: Majority (85%) of customers availed benefit of promotional offers

Concept: What did you opt for?

The customers may go in for Free offers or discount offers. To study the customers preference of offers this question was asked. Table No: 8
What did you opt for Frequency Discount offer 91 Free offer 123 Total 214 System 36 250 Percent 36.4 49.2 85.6 14.4 100.0 Valid Percent 42.5 57.5 100.0 Cumulative Percent 42.5 100.0

Valid

Missing Total

Graph No: 8

What did you opt for

Missing

Discount offer

Free offer

Interpretation: 49% of the customers availed Free offers 36% availed Discount offers.

Concept: Did customers communicate benefit of promotional offers to their friends and relatives Table No: 9
Do you communicate offers at Big Bazaar to your friends Frequency 218 32 250 Percent 87.2 12.8 100.0 Valid Percent 87.2 12.8 100.0 Cumulative Percent 87.2 100.0

Valid

Yes No Total

Graph No: 9
Do you communicate offers at Big Bazaar to your friends
Yes No

12.80%

87.20%

Interpretation: Majority (87%) of customers did communicate benefits of promotional offers to their friends and relatives.

Concept: Where do you find the following better? 1. Price 2. Quality 3. Product range 4. Promotional offers 5. Ambience Concept: Price Table No: 10
Price Frequency Big Bazaar 215 Other retail stores 35 Total 250 Percent 86.0 14.0 100.0 Valid Percent 86.0 14.0 100.0 Cumulative Percent 86.0 100.0

Valid

Graph No: 10

Price

100

80

Percent

60

40

86.00%

20

14.00%

0 Big Bazaar Other retail stores

Price

Interpretation: 86% of customers find price better compared to other retail stores

Concept: Quality Table No: 11

Quality Frequency Big Bazaar 190 Other retail stores 60 Total 250 Percent 76.0 24.0 100.0 Valid Percent 76.0 24.0 100.0 Cumulative Percent 76.0 100.0

Valid

Graph No: 11

Quality

80

60

Percent

40

76.00%

20
24.00%

0 Big Bazaar Other retail stores

Quality

Interpretation: Quality at Big Bazaar is good as compared to other retail stores

Concept: Product Range Table No: 12

Range Frequency Big Bazaar 240 Other retail stores 10 Total 250 Percent 96.0 4.0 100.0 Valid Percent 96.0 4.0 100.0 Cumulative Percent 96.0 100.0

Valid

Graph No: 12

Range

100

80

Percent

60

96.00%

40

20

0 Big Bazaar

4.00%

Other retail stores

Range

Interpretation: (96)% of Customers feel product range good at Big Bazaar

Concept: Promotional offers Table No: 13

Offers Frequency Big Bazaar 218 Other retail stores 32 Total 250 Percent 87.2 12.8 100.0 Valid Percent 87.2 12.8 100.0 Cumulative Percent 87.2 100.0

Valid

Graph No: 13

Offers

100

80

Percent

60

87.20%

40

20

12.80%

0 Big Bazaar Other retail stores

Offers

Interpretation: Promotional offers are good compared to other retail stores

Concept: Ambience Table No: 14

Ambience

100

80

Percent

60

96.80%

40

20

0 Big Bazaar

3.20%

Other retail stores

Ambience

Ambience Frequency Big Bazaar 242 Other retail stores 8 Total 250 Percent 96.8 3.2 100.0 Valid Percent 96.8 3.2 100.0 Cumulative Percent 96.8 100.0

Valid

Graph No: 14

Interpretation: Majority (97%) of the customers find Ambience very good

Concept: To study whether Customers feel like coming to Big Bazaar to avail the benefits of the offers Table No: 15
Do offers make you feel like visiting Big Bazaar Frequency 226 24 250 Percent 90.4 9.6 100.0 Valid Percent 90.4 9.6 100.0 Cumulative Percent 90.4 100.0

Valid

Yes No Total

Graph No: 15

Do offers make you feel like visiting Big Bazaar

Yes No
9.60%

90.40%

Interpretation: Majority (90%) of customers are attracted to offers and hence they will shop frequently at Big Bazaar

LIMITATIONS OF STUDY

Data collection cannot be asserted to be free from errors, as the sample size is small The project is done for the partial fulfillment of the MBA program Time is the major limiting factor as the available time for survey was only three months. The accuracy of the findings is trusted by the accuracy of the statistical tools used for analysis. Few respondents were reluctant while answering the questions due to their busy schedule

CHAPTER-6

FINDINGS
Majority (84%) of the customers surveyed were aware of the Promotional offers at Big Bazaar Newspaper was the most effective mode for communication, followed by hoardings and TV advertisements. Promotional offers are noticed and heard by the customers during their shopping 65% of the customers visit Big Bazaar once in a week, either on Wednesdays or week ends, followed by customers visiting once in a month and as-andwhen required. 26% strongly agree, 40% agree, 22% neither agree nor disagree and remaining customers disagree Customers preferred clothing followed by groceries, electronic items and furnitures Majority (85%) of customers availed benefit of promotional offers 49% of the customers availed Free offers 36% availed Discount offers. Majority (87%) of customers did communicate benefits of promotional offers to their friends and relatives.

 86% of customers find price better compared to other retail stores Customers found Quality at Big Bazaar good as compared to other retail stores Customers feel product range good at Big Bazaar Promotional offers are good compared to other retail stores as per the customers

SUGGESTIONS
16% of the surveyed customers were not aware of promotional offers, so the Company should ensure that maximum customers know about promotional offers visiting Big Bazaar and there should make aware of offers to general public. 34% of the customers are not attracted to promotional offers because of short range of electronic items and some doubt the quality of the products on which promotional offers are declared. The Company should take note of this.

 Some customers are disappointed because of short period of promotional offers as they visit Big Bazaar after the offer period is over. Such customers should be convinced that similar offers would be declared soon. The duration of the discount offers must be increased, so that more number of customers can avail the benefit. Most of the customers prefer clothing (50%) and groceries (32%) , the Company has to attract the customers towards and electronic items and furnitures The promotional offers on Wednesdays can also be extended to Tuesdays and Sundays so that more number of customers will get benefit of the offers and thus sales increase. The employees of Big Bazaar should be discouraged to take the benefit of offers which are meant for customers

CONCLUSION
Promotional offers play an important role to increase the sales in short terms Chandigarh population is experiencing a new pattern of shopping

 The customer buying pattern has changed with the introduction of Big Bazaar in Belgaum The foot fall has increased at Big Bazaar Customers are exposed to new brands and they are becoming brand savvy

Questionnaire

1) Are you aware of promotional offers at Big Bazaar? (If No, please go to question No. 3)

Yes

No

2) If yes, what was the mode of communication? TV News Paper Hoardings

3) Did you notice/ hear about the promotional offers today? Yes No

4) How frequently you visit Big Bazaar Occasionally Daily Once in a month As and when required Once in a week

5) The Promotional offers at Big Bazaar are attractive and induce me to make a purchase? Strongly Agree Dis-agree Agree Neither Agree/ Nor Dis-agree Dis-agree Strongly

6) For which range of products/brands you expect promotional offers? (Please Rank from scale 1being high to 4 being lowest) Clothing Groceries Electronic items Furniture

7) Have you availed any offers during your recent visits? (If No, please go to question No. 9) Yes No

8) What did you opt for? Discount offer Free offer Others

9) Do you communicate offers at Big Bazaar to your friends/relatives? Yes No

10) Where do you find the following better (please mark) At Big Bazaar shops Price Quality Product range Promotional Offers Ambience At other Retail

11) Do offers make you feel like visiting Big Bazaar again?

Yes

No