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Exam Seat No:MBA06003080

KARNATAK LAW SOCIETYS


INSTITUTE OF MANAGEMENT EDUCATION AND RESEARCH
BELGAUM
(Affiliated to Karnatak University Dharwad & Recognized by AICTE, New Delhi)

A PROJECT REPORT
ON
EFFECTIVENESS OF
PROMOTIONAL OFFERS
AT
BIG BAZAAR
BELGAUM
Submitted to
KARNATAK UNIVERSITY DHARWAD
FOR PARTIAL FULFILLMENT OF
MASTERS OF BUSINESS ADMINISTRATION
BY
SUJAY P. ANKLE
UNDER THE GUIDANCE OF
INTERNAL GUIDE

EXTERNAL GUIDE

(Prof. R.M. INAMDAR)

(Mr. NILESH KUMAR)

DECLARATION
I hereby declare that the project entitled Effectiveness of Promotional offers at Big
Bazaar, Belgaum is prepared by me under the able guidance of Mr. Nilesh Kumar
( Sr. Executive HR )

This project has been analyzed with the help of SPSS package. All the calculations and
graphs etc., have been prepared with the use of SPSS package.

This project was fully prepared by my own efforts and has not been published elsewhere
until now.

I also declare that this project report has not been submitted to any other University or
forwarded to any Degree or Diploma.

PLACE : BELGAUM
DATE : 01/05/2008

MR. SUJAY P.ANKLE

Exam Seat No:MBA06003080


KARNATAK LAW SOCIETYS
INSTITUTE OF MANAGEMENT EDUCATION AND RESEARCH
BELGAUM
(Affiliated to Karnatak University Dharwad & Recognized by AICTE, New Delhi)

CERTIFICATE
This is to certify that Mr. Sujay P. Ankle of IVth Semester has
undergone Major Concurrent Project from 10 th Dec 2007 to 27th
April 2008 at Big Bazaar, Belgaum, in partial fulfillment of
requirement for Masters of Business Administration.
The performance of the student is found to be satisfactory.
INTERNAL GUIDE
(Prof. R.M. Inamdar)

DIRECTOR

(Dr. Poornima M. Charantimath)

ACKNOWLEDGEMENT
I would like to express my sincere gratitude towards Big Bazaar, Belgaum, which
has given me an opportunity to undergo Major Concurrent Project.
I am deeply indebted to Mr. Nilesh Kumar (Sr. Executive HR) of Big Bazaar,
who extended his co-operation and guidance to me to get valuable information. I am also
thankful to all other members of their Staff for their kind co-operation.
I am grateful to my internal guide Prof. R.M Inamdar for his constant support and
guidance.
I also thank the Head of the Institute Dr. Poornima M. Charantimath, Director,
KLSs I.M.E.R for her support and guidance.

Sujay P. Ankle

Questionnaire
Dear Respondents,
I Sujay P. Ankle student of MBA IV semester, KLSs IMER Belgaum
have undertaken a project titled Effectiveness of Promotional offers at Big Bazaar,
belgaum. Hence I request your kind co-operation by sparing your precious time in
answering the following questions and providing information.
(Please mark)
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

Once in a month

Daily

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

Agree

Neither Agree/ Nor Dis-agree

Dis-agree

Strongly Dis-agree

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

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
Price
Quality
Product range
Promotional Offers
Ambience
11) Do offers make you feel like visiting Big Bazaar again?
Yes

No
THANK YOU

At other Retail shops

EXECUTIVE SUMMARY

Retailing in India is witnessing a huge revamping. India is rated the fifth most attractive
emerging retail market, estimated to be US$ 200 billions, of which organized retailing
(i.e. modern trade) makes up 3 percent or US$ 6.4 billions.

Retail is one of booming sectors in India. Retail contributes around 10% of Indias GDP
and 8% of employment. Revolution has taken palace in India with introduction of
sprawling shopping centers, multiplex- malls and huge complexes offer shopping,
entertainment and food all under one roof. Retail players have already tapped Tier-I cities
and are entering into Tier-II cities in India. The growth of retail sector in India is due to
following reasons:
o Low share of organized retailing
o Falling real estate prices
o Increase in disposable income and customer aspiration
o Increase in expenditure for luxury items
o Increase in young working population
o High pay packets, nuclear families

Future Group is one of the Countrys leading business groups present in retail, asset
management, consumer finance, insurance, retail media, retail spaces and logistics. The
groups flagship Company, Pantaloon Retail (India) Limited .Pantaloon Retail (India)
Limited, is Indias leading retailer that operates multiple retail formats in both the value
and lifestyle segment of the Indian consumer market. The Company operates over 7
million square feet of retail space, has over 1000 stores across 51 cities in India and
employs over 24,000 people. The companys leading formats include Pantaloons, a chain
of fashion outlets, Big Bazaar, a uniquely Indian hypermarket chain, Food Bazaar, a
supermarket chain, Some of its other formats include, Depot, Shoe Factory, Brand
Factory, Blue Sky, Fashion Station, aLL, Top 10, mBazaar and Star and Sitara. The
Company also operates an online portal, futurebazaar.com. Pantaloon Retail was recently
awarded the International Retailer of the Year 2007 by the US-based National Retail
Federation (NRF).

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

The Belgaum population is experiencing the new trend of shopping. Big Bazaar is known
for its promotions .This survey was conducted to study the Effectiveness of
Promotional offers at Big Bazaar, Belgaum.
The main objectives to carry out these topics at Big Bazaar are as follows:

To test the effectiveness of the communication of the offers to the consumers


To test the awareness level among public with respect to offers of Big Bazaar
To assess the attractiveness of the offers to customers at Big Bazaar
To find out the competitive differences of Big Bazaar with other Retail
competitors.

SAMPLING
Data Source

Primary Data
(From questionnaire and personal
interaction)
Secondary data Website,

Research approach

Survey method

Research Instrument

Questionnaire

Sample plan

Personal Interview

Sample unit

Customers of Big Bazaar

Sampling method

Convenience sampling

Sample Size

250 customers

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 multi-brand 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.

COMPANY PROFILE

Future Group
Future Group is one of the countrys leading business groups present in retail, asset
management, consumer finance, insurance, retail media, retail spaces and logistics. The
groups flagship company, Pantaloon Retail (India) Limited operates over 7 million
square feet of retail space, has over 1000 stores across 53 cities in India and employs
over 25,000 people. Some of its leading retail formats include, Pantaloons, Big Bazaar,
Central, Food Bazaar, Home Town, eZone, Depot, Future Money and online retail
format, futurebazaar.com.
Future Group companies includes, Future Capital Holdings, Future Generali India Indus
League Clothing and Galaxy Entertainment that manages Sports Bar, Brew Bar and
Bowling Co.
The groups joint venture partners include Italian insurance major, Generali, French
retailer ETAM group, US-based stationary products retailer, Staples Inc and UK-based
Lee Cooper and India-based Talwalkars, Blue Foods and Liberty Shoes.

Future Groups vision is to, deliver Everything, Everywhere, Everytime to Every Indian
Consumer in the most profitable manner. The group considers Indian-ness as a core
value and its corporate credo is - Rewrite rules, Retain values.

CORPORATE STATEMENT
Future Group Manifesto

Future the word which signifies optimism, growth, achievement, strength, beauty,
rewards and perfection. Future encourages 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.
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, will effect socio-economic development for our customers, employees,
shareholders, associates and partners.

Group Vision

Future Group shall deliver Everything, Everywhere, Every time for Every Indian
Consumer in the most profitable manner.
Group Mission

The group shares the vision and belief that their customers and stakeholders shall be
served only by creating and executing future scenarios in the consumption space leading
to economic development.
The group will be the trendsetters in evolving delivery formats, creating retail realty,
making consumption affordable for all customer segments for classes and for masses.
The group shall infuse Indian brands with confidence and renewed ambition.
The group shall be efficient, cost-conscious and committed to quality in whatever been
done.
The group shall ensure that positive attitude, sincerity, humility and united determination
shall be the driving force to be successful.

Core Values

Indianness: 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.
Adaptability: To be flexible and adaptable, to meet challenges.

COMPANY TIMELINE
Major Milestones
1987

Company incorporated as Manz Wear Private Limited. Launch of Pantaloons


trouser, Indias first formal trouser brand.

1991

Launch of BARE, the Indian jeans brand.

1992

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

1994

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.

1995

John Miller Formal shirt brand launched.

1997

Pantaloons Indias family store launched in Kolkata.

2001

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

2002

Food Bazaar, the supermarket chain is launched.

2004

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

2005

Fashion Station - the popular fashion chain is launched


aLL a little larger - exclusive stores for plus-size individuals is launched

2006

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.

BOARD OF DIRECTORS
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, Wholetime 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
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.
Mr. S Doreswamy, Independent Director
S. Doreswamy, is a former Chairman and Managing Director of Central Bank of India
and serves on the board of DSP Merrill Lynch Trustee Co and Ceat Limited among

PANTALOONS FORE RAY


1. Depot
Books, Music & Gifts
Depot is one of the youngest brands from the Pantaloon stable and is a tribute to our
freedom of thought, speech and expression shared in a novel fashion with customers
as books, multimedia, toys, stationary and gifts.
At Depot, book lovers are offered a range of books that meet the needs and preference
of every age group. From fiction to general reference, management and childrens
material, you will find it all at Depot. Music buffs are invited to select from a wide
category of music CDs and cassettes.

2. Futurebazaar.com
Futurebazaar.com offers the widest range of products at lowest prices everyday!
Having pioneered the retailing business in India, Futurebazaar.com has now decided
to revolutionize the consumer e-commerce business in India. It intends to provide
customers with a streamlined, efficient and world class personalized shopping
experience, which will be supported with the best technology platform.

Future Bazaar has been named as the Best Indian Website 2007 in the Shopping
category by PC World.
Future Bazaar won the top spot after beating other established players like Rediff,
Indiatimes, Sify, ebay, Indiaplaza, Chennai Bazaar and India Mall. The award was
presented to Future Bazaar for its "decent, no-nonsense approach, while providing a
good shopping experience".

3. Navaras

Navaras, a fine 22 carat pure gold and diamond jewellery brand, is retailed from Big
Bazaar stores.Future Group has revolutionized the Indian jewellery market with the
launch of Navaras, which offers branded, pure and design differentiated jewellery at
competitive prices in a hypermarket set-up in line with the evolving buying behaviour of
consumers. The rationale behind this is that with higher disposable incomes, for
consumers today gold and other jewellery purchases too have become impulsive buying
activities. Hence, Navaras within Big Bazaar. Navaras offers a complete fine jewellery
shopping experience, despite being within the confines of a hyper market.
4. TOP 10

Top 10, the cool offering from Future Group, offers the latest in fashion and style. This
format is based on the concept of the ever popular countdown shows, where the trendiest
styles get ranked from 1 to 10; the highest selling item gets the highest ranking!
Keeping pace with fast changing fashion needs, Top 10 stores empowers the youth to
make a distinctive fashion statement through easily affordable apparel collections and
accessories.

Top 10 stores stock a wide range of Message Tees , Fashion Tees ,Cool Tees (for guys
and gals), casuals, cargoes, sports wear & skirts. A unique offering of this format are
T-shirts with college names printed on them, wherein one can vote for ones college
name and get ones college name products custom-made.

5. Tulsi
The medical bazaar

Tulsi the Medicine Bazaar is a pharmacy housed within Big Bazaars and Food Bazaars at
over 35 locations all over India .
Aiming to offer outstanding professional service from a caring and friendly environment.
We are prepared to go the extra mile or provide that little extra guidance and to care for
your needs through our Healthcare enquiry system.

6. Mr. RIGHT
Future Services brings Mr. Right - a reliable resource who is always ready to perform any
task or attend to any requirement. For the very first time in India Be it fixing plumbing to
providing serious financial advice, no job is too big or small.
Mr. Right is envisaged to be a one stop solution for all the service needs and will offer
various innovative services. Mr. Right will operate in the following service categories Utility services, Home Improvement, Travel, Event & Wedding Planning, Beauty &

Wellness and Advisory Services. Currently offering services like Home Cleaning, Pest
Control, Travel & Helpmate. Soon to launch Astrology, Shoe laundry, Help@home

7. Pantaloons Fresh fashion


Pantaloons Fresh Fashion stands out as a fashion trendsetter, on the lines of how fashion
is followed internationally. The look and whats in today for the season is sacrosanct.
Pantaloons takes its promise of 'fresh fashion' very seriously making available to its
customers the latest in fashion every week!
All Pantaloons stores reflect the new ideology -- Fresh Feeling, Fresh Attitude, Fresh
Fashion. The stores offer fresh collections and are visually stimulating thanks to
appealing interiors and attractive product display!
The first Pantaloons was opened in Gariahat in 1997. Over the years, it has undergone
several transitions. When it was first launched, this store mostly sold external brands.
Gradually, it started retailing a mix of external brands while at the same time introduced
its own private brands. Initially positioned as a family store, it finally veered towards
becoming a fashion store with an emphasis on 'youth' and clear focus on fresh fashion.
8. aLL
aLL houses a wide range of ready-to-wear fashionable clothes and accessories that are
otherwise not easily available for plus size customers. aLL brings forth a wide collection
of stylish clothing to select from, be it Western wear, Indo-western or Ethnic wear in both
Formal and Casual categories. aLL also offers matching accessories like belts, ties, and
handbags in a perfect size and fit. The stores are aesthetically and sensitively designed to

cater to this niche set of customers who love the open wide spaces, clean cut lines, pastel
colours that make up the inviting store layout and the even more remarkable customer
friendly staff that are present to assist them in every way.

9. Central

Launched in May'04 at Bangalore, Central is a showcase, seamless mall and the first of
its kind in India. The thought behind this pioneering concept was to give customers an
unobstructed and a pure shopping experience and to ensure the best brands in the Indian
market are made available to the discerning Indian customer.
Central offers everything for the urban aspirational shopper to shop, eat and celebrate.
Located in the heart of the city, Central believes its customers should not have to travel
long distances to reach us; instead we must be present where customers frequently visit.
Central houses over 300 brands across categories, such as apparel, footwear and
accessories for women, men, children and infants, apart from a whole range of Music,
Books, Coffee Shops, Food Courts, Super Markets (Food Bazaar), Fine Dining
Restaurants, Pubs and Discotheques. The mall also has a separate section for services
such as Travel, Finance, Investment, Insurance, Concert/Cinema Ticket Booking, Bill
Payments and other miscellaneous services. In addition, Central houses Central Square,
a dedicated space for product launches, impromptu events, daring displays, exciting
shows, and art exhibitions.

10. Fashion Station


Fashion Station is the company's offering from their value retail platform. A thematic
store, Fashion Station is an attempt to offer fashion forward products to the mass market.

Called a first of its kind fashion destination, Fashion Station houses a wide selection of
trendy apparels. The USP of the store is 'Fashion that fits your budget', which translates
to great deals on apparel & accessories for Men, Women and Children.

11. Food Bazaar


Food Bazaar invites you for a shopping experience, unique by its ambience. At Food
Bazaar you will find a hitherto unseen blend of a typical Indian Bazaar and
International supermarket atmosphere.
Flagged off in April02, Food Bazaar is a chain of large supermarkets with a
difference, where the best of Western and Indian values have been put together to
ensure your satisfaction and comfort while shopping.
The western values of convenience, cleanliness and hygiene are offered through pre
packed commodities and the Indian values of "See-Touch-Feel" are offered through
the bazaar-like atmosphere created by displaying staples out in the open, all at very
economical and affordable prices without any compromise on quality.

12. Blue Sky

Blue Sky is a national chain of stores offering a wide selection of branded and private
label sunglasses and watches. Blue Sky has been designed to address an exciting and
growing market for accessories. Customers get a wide and interesting collection of
fashion brands from across the world.

13. Star & Sitara


Star & Sitara, a unique beauty salon for men and women, introduces many new features
and products for the first time in India. At Star & Sitara we aim to democratise salon
services for easy access to all and deliver quality service at very affordable prices. Star
& Sitara evokes a theme of Bollywood and promises to make you a Star (Sitara in
Hindi) The space, dcor, lighting is reminiscent of movies and will transport you from
the ordinary world to that of the reel world.
Star & Sitara provides all skin and hair related beauty service. The salon is spacious and
the atmosphere relaxed. Men, women and children can easily find a service to cater to
their need. But the focal and niche element of our salon is the affordable and attractive
pricing.

14. Big Bazaar

Big Bazaar is not just another hypermarket. It caters to every need of your family.
Where Big Bazaar scores over other stores is its value for money proposition for the
Indian customers.
At Big Bazaar, you will definitely get the best products at the best prices - thats what
we guarantee. With the ever increasing array of private labels, it has opened the doors
into the world of fashion and general merchandise including home furnishings,
utensils, crockery, cutlery, sports goods and much more at prices that will surprise
you. And this is just the beginning. Big Bazaar plans to add much more to complete
your shopping expereince.

INTRODUCTION OF TOPIC

Title of Project: Effectiveness of Promotional offers at Big Bazaar, Belgaum


Meaning
Promotion is an important marketing force that provides extra incentives for short term
sales. Promotion plays an important role with advertisements and selling efforts.

The role and mechanics of promotion


Promotions are an extremely valuable tool for the marketing of goods. Like all other
tools, promotions can make a valuable contribution to marketing.

Promotion function: The function of promotion is to accelerate action stated by other


marketing activities. Promotion acts as a catalyst to accelerate action, primarily on the
part of the consumer. It supplements, but is not a substitute for, advertising and selling
efforts.
Promotion accelerates action by changing the price value relationship of the brand
Every product has an established value in the minds of the consumer. This is what the
consumer is normally willing to expend (in money) for what he gets, or thinks be gets,
when he buys the product.

Promotion changes this price-value relationship to the point where the individual is
stimulated to take a desired action. It does this in most cases either by lowering the price
or by increasing the value of the product or both
When to use promotion:

The need for promotion varies because


1. A brands quality is inferior to competition;
2. A brands advertising is not as persuasive as competitive copy; or
3. A new brand is being introduced

Promotions role in the life cycle of a brand


At each stage in a brands life cycle a different degree of promotional
emphasis is required.
New Product: A new product can usually profit from substantial promotion support if
the product, the advertising, distribution and price are right.
The promotion can truly perform its function of accelerating trial and purchase of a brand
whose value has not yet been fully established in the minds of all consumers. Although
good advertising on a new brand will persuade many consumers to try the brand, it is not
likely to persuade every logical prospect to take immediate action. Though the
advertising does not quickly move to action require an extra incentive, such as a free
sample or coupon or some other device that increases the value of the brand, or lowers its
price, to the point where the prospect decides to buy it. If the product is of good quality,
promotion thus helps to establish its value quickly in the minds of more people.

Growing Brand: There are indications, incidentally, that many new brands (but not all)
reach their share-of-market peak within six months to a year after the completion of their
introduction. This leads to the conclusion that a brand of proven product and advertising
copy superiority would be well advised to meet maximum trial during the introductory
period by spending heavily in the advertising media and on the promotional devices that
are most effective in reaching the brands best longterm prospective consumers.
Investment at the highest practicable level in effective advertising and promotion during
the introductory stage, therefore by quickly achieving a high franchise level can
establish a business that is less vulnerable to competition and that returns higher level of
profit in the following years.

Stable Brand: An established, growing brand generally requires minimal promotion


support, usually of a selective nature. The product and its advertising are still equal to or
better than competition. A high proportion of potential customers have tried the brand
And many have become more or less regular users.

In such a healthy situation, the job that promotion has to do usually is much narrower and
more specialized. It can be used for such specific purposes as improving distribution on
large sizes, attracting new users from fringe groups or areas where usage levels are below
potential, or increasing the consumption among present users. Total promotion
expenditures, however, can be cut back to levels that generate optimum profits so long
as

the

brand

continues

to

represent

superior

value

for

the

price.

Declining Brand: A mature, stable brand may need increased promotional support as
competition begins to match it in product quality and in the persuasiveness of its
advertising copy, or as the brand reaches its natural franchise level. When this happens,
Growth ceases, sales and share level off.

A declining brand may need much heavier promotion support as it becomes old and outdated by new or improved competitive brands. Efforts to improve the brands quality and
its advertising copy to equal competition may have been unsuccessful. Increasing the
advertising appropriation may not help and may, in fact, merely reduce profits.

MAJOR TYPES OF CUSTOMER PROMOTIONS

1.Sampling: Distribution of free special or regular size package to consumers

2.Couponing: Distribution of certificates with a stated monetary or merchandize value


which the consumer redeems through a retailer towards the purchase of the
specified item.

3. Demonstrations: An illustration or demonstration of how a product is prepared


and/or used, frequently involving consumer tasting of food products and usually
involving the presence of a home economist or other trained representative.
4. Price packs: Offers to consumers of savings off the regular price of a product,
flagged on the label. Ex: A reduced price packs.
5. Free trials: Inviting customers for free trials of products without cost.

RESEARCH METHODOLOGY

TITLE OF THE PROJECT


Effectiveness of Promotional offers at Big Bazaar, Belgaum.

OBJECTIVES
To test the effectiveness of the communication of the offers to the consumers
To test the awareness level among public with respect to offers of Big Bazaar
To assess the attractiveness of the offers to customers at Big Bazaar
To find out the competitive differences of Big Bazaar with other Retail
competitors.
RESEARCH METHODOLOGY
Data Source

Primary Data
(From questionnaire and personal
interaction)
Secondary data Website,

Research approach

Survey method.

Research Instrument

Questionnaire

Sample plan

Personal Interview

Sample unit

Customers of Big Bazaar

Sampling method

Convenience sampling

Sample Size

250 customers

DURATION OF PROJECT
Duration of the Project 10th Dec 2007 to 27th April 2008.

LIMATATION OF STUDY

Customers did not respond, so I had to find many customers for survey
HYPOTHESIS TESTS

1) Hypothesis testing for attractiveness of customers to offers and inducement for


purchase
HO: More than 65% of the customers are attracted to promotional offers & are induced to
make purchases
H1: More than 65% of the customers are not attracted to promotional offers & are not
induced to make purchases

2) Hypothesis testing for price better compared to other retail shops


HO: More than 85% of the customers find price better than other retail stores
H1: More than 85% of the customers do not find price better than other retail stores

The hypothesis test was carried out and the results are put into Annexure

GRAPHS AND FINDINGS

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

Valid

Yes
No
Total

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

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

Valid

TV
News Paper
Hordings
Total
System

Missing
Total

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

Graph No: 2

What was the mode of Communication


70
65

60
50
40
30

Percent

20
19

17
10
0
TV

New s Paper

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

Valid

Yes
No
Total

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

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

Valid

Occasionally
Once in a month

Frequency
9
42

Percent
3.6
16.8

Valid Percent
3.6
16.8

Cumulative
Percent
3.6
20.4

163

65.2

65.2

85.6

1.6

1.6

87.2

32

12.8

12.8

100.0

250

100.0

100.0

Once in a week
Daily
As and when required
Total

Graph No: 4
How frequently you visit Big Bazaar

Percent

60

40
65.20%

20

16.80%
12.80%

3.60%

Occasionaly

1.60%

Once in a month

Once in a week

Daily

How frequently you visit Big Bazaar

As and when
required

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

Valid

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

Frequency
65
100

Percent
26.0
40.0

Valid Percent
26.0
40.0

Cumulative
Percent
26.0
66.0

56

22.4

22.4

88.4

29
250

11.6
100.0

11.6
100.0

100.0

Graph No: 5

Promotional offers at Big Bazaar are attractive and induce me t


50

40

40

30
26
22

Percent

20

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

Valid

Clothing
Groceries
Electronic items
Furnitures
Total

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

Graph No: 6

Rank the products that you expect promotional offers

50

Percent

40

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

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

Valid

Yes
No
Total

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

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

Valid

Missing
Total

Discount offer
Free offer
Total
System

Frequency
91
123
214
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

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

Valid

Yes
No
Total

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

Do you communicate offers at Big Bazaar to your friends


Yes
No

12.80%

87.20%

Graph No: 9

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

Valid

Big Bazaar
Other retail stores
Total

Frequency
215
35
250

Percent
86.0
14.0
100.0

Valid Percent
86.0
14.0
100.0

Cumulative
Percent
86.0
100.0

Graph No: 10

Price

100

Percent

80

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

Valid

Big Bazaar
Other retail stores
Total

Frequency
190
60
250

Percent
76.0
24.0
100.0

Valid Percent
76.0
24.0
100.0

Cumulative
Percent
76.0
100.0

Graph No: 11

Quality

80

Percent

60

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

Valid

Big Bazaar
Other retail stores
Total

Frequency
240
10
250

Percent
96.0
4.0
100.0

Valid Percent
96.0
4.0
100.0

Cumulative
Percent
96.0
100.0

Range

100

Percent

80

60

96.00%

40

20

4.00%

0
Big Bazaar

Other retail stores

Range

Graph No: 12
Interpretation: (96)% of Customers feel product range good at Big Bazaar

Concept: Promotional offers


Table No: 13
Offers

Valid

Big Bazaar
Other retail stores
Total

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

Graph No: 13

Offers

100

Percent

80

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

Valid

Big Bazaar
Other retail stores
Total

Frequency
242
8
250

Percent
96.8
3.2
100.0

Valid Percent
96.8
3.2
100.0

Cumulative
Percent
96.8
100.0

Ambience

100

Percent

80

60

96.80%

40

20

3.20%

0
Big Bazaar

Other retail stores

Ambience

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

Valid

Yes
No
Total

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

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

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-and-when
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
Belgaum 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

ANNEXURES

BIBLIOGRAPHY
Books

Business Statistics G.C. Berry

Advertisement and Promotion Belch & Belch

Marketing Management Philip Kotler

Websites

www.pantaloon.com

www.indiainbusiness.nic.in

HYPOTHESIS TESTING
Hypothesis testing for attractiveness of customers to offers and inducement for purchase
HO: More than 65% of the customers are attracted to promotional offers & are induced to
make purchases
H1: More than 65% of the customers are not attracted to promotional offers & are not
induced to make purchases
Z=

P-P
sigma P
P=0.65
N=250

(1-P)=0.35
N-1=249

P = X/N
=

Favoring
N

= 165
250
Sigma P =

=0.66
P(1-P)/N-1

0.65x 0.35/249

0.00091365

0.302

Z= 0.66-0.65

0.302
= 0.03
Critical value K(=+1.64) and observed value is 0.03, which is less than critical value.
Therefore Accept Ho

Hypothesis testing for price better compared to other retail shops


HO: More than 85% of the customers find price better than other retail stores
H1: More than 85% of the customers do not find price better than other retail stores

Z=P - P
Sigma P
P=0.85
N=250

(1-P)=0.15
N-1=249

P = X/N
= Favoring price as a factor
N
= 215
250

=0.44

Sigma P =

P(1-P)/N-1

0.85x 0.15/249

0.00051205

0.0226

Z= 0.86-0.85
0.0226
= 0.44

Critical value K(+1.64) and observed value is 0.44, which is less than critical value.
Therefore Accept Ho