IMS

A-8 B, Block a, Sector 62,

Noida 201303,(U.P)
"TO STUDY CUSTOMER RELATIONSHIP
MANAGEMENT IN RETAIL SECTOR WITH SPECIAL
REFRENCE OF BIG BAZAAR

Project Dissertation in VI Trimester.

PGDM 2013-15

Submitted by:

Name: Mohd. Asif Nawaz (PGD13050)

Project Mentor- Mrs.ANISA KHANAM(Asst.Proffessor)

Acknowledgement

I would like to express my deep sense of gratitude towards the Facultyand the seniors
around us, fortheir guidance and encouragement throughout the period of the project
study. I am indebted to their guidance, spirit and valuable suggestions.
I would also like to thankBIG BAZAAR and its employees, who has been a continuous
source of inspiration for me throughout the curriculum.
I would like to thank everyone who has been a help directly or indirectly leading to the
successful completion of the study report.

MOHD. ASIF NAWAZ

Declaration

I hereby declare that I have carried out Research Project on the topic entitled Customer
Relationship Management in Retail Sector (Big Bazaar) in NCR.

I further declare that this project work is based on my original work and no part of this
project has been published or submitted to anybody.

TABLE OF CONTENTS
Sr. No.Topic

Chapter 1 Introduction
1.1
1.2
1.3
1.4
1.5

Overview of Industry as a whole

Profile of the Organization
Problems of the Organization
Competition Information
S.W.O.T. Analysis of the Organization

Chapter -2 Object & Methodology

2.1
2.2
2.3
2.4
2.5

Significance
Managerial usefulness of the study
Objective
Scope of the Study
Methodology

Chapter 3

Conceptual Discussions

Chapter 4Data Analysis

Chapter 5Findings and Recommendations
Annexure
Bibliography

CHAPTER-1
INTRODUCTION

OVERVIEW OF THE INDUSTRY AS WHOLE

The Indian retail industry is now beginning to evolve in the line with the transformation
that has swept other large economies. The liberalization of the consumer goods industry
initiated in the mid-80 and accelerated through the 90s has begun to impact the structure
and conduct of the retail industry.
The concept retail which includes the shopkeeper to customer interaction, has taken many
forms and dimensions, from the traditional retail outlet and street local market shops to
upscale multi brand outlets, especially stores or departmental stores.
The objective being to assess the various parameters that influences a buyer to visit or
shop at departmental store thereby contributing to its turnover (in terms of sales and
profits) hence leading to its overall success.
The extensive research brought me to conclude that departmental stores are soon
emerging on the top priority lists, amongst the shopping spree in Delhi and NCR, as they
seem to derive immense pleasure of convenience and exposure to variety under one roof,
in their extremely busy lives, when they dont have time for things.
Though some of the customers perceive departmental stores to be expensive and only
high income categorys cup of tea, the stores make constant efforts to induce them to at
least visit the store at once during the sale period, or discount offers.

The Retail Marketing Revolution - An Introduction

Any business that directs its marketing efforts towards satisfying the final
consumer based upon the organization of selling goods and services as a means of
distribution
By 2010, the list of India's top 10 retailers will have at least 5 Indian corporate. Retail
Marketing will go through a tremendous change in India this millennium. It will change
India's cities, its people, and its households. The Indian consumer is reportedly the largest
spender in Singapore and London. It is, therefore, strange that there have, so far, been
few efforts to present the product in the right kind of environment in India.
Indeed, the right shopping experience does induce Indian consumers to spend more. This
is evident from the experiences of retail-outlets like Music.
World, Big Bazaar, Spencers, Crosswords, The Home Store, Ebony, Bigjos, Saboos,
Standard, Nanz, Vijay Store and Janaki Das & Sons, Westside etc.

Factors affecting Retail marketing

The development of organized retail is dependent on the efforts of several agencies and
institutions. A glimpse of the last 2 decades of the previous century proves illuminating.
Large-format retailing started with outlets like Vivek's and Nalli's in Chennai and
Kidskemp in Bangalore, and, at another level, with manufacturer-retail brands like Bata,
Bombay Dyeing, and Titan.

Government:
The first among these is the government. In a country as big as India and with as many
states as ours, it is imperative that the Central government and all state governments
bring in Value Added Taxation or a unified taxation system to ensure that the tax-regimes
are the same across the country.
The laws governing retail real estate should also be looked into, so that it is possible to
develop retail-estate beyond the city-limits. Apart from providing entertainment and retail
opportunities, this will also decongest the city center and facilitate the development of
suburbs. The relevant rules should also be amended to allow retail-stores to operate 7
days a week, 12 hours a day.
Nuclear Families:
Given the hours most urban consumers keep at work, and keeping in mind the increase in
the number of nuclear families, this may, indeed, make sense. This will also help people
enjoy their evenings, out at malls.

Developers:
The second group, whose participation is essential in making retail a boom-sector in this
millennium, comprises developers. Most properties are developed without considering
the end user; thus, we sometimes find highCeilinged offices and low-ceilinged retail stores. Often, the shopper's convenience is not
taken into consideration while the property is constructed.

Manufacturers:
There's a lot at stake here: even so early in the 21st Century, India is too large a market to
be ignored by transnational retail giants. From the manufacturing company's perspective,
the focus should be on producing good products, and forging relationships with organised
retail. Manufacturers need to draw a plan of producing quality products and tie in with
retailers. Indeed, the birth of organised retail will also engender the creation of private
labels and store-brands. Thus, if a manufacturing company lacks the resources to build a
brand, it can supply to a retail-chain that has the resources to create a brand of its own.

Indian Consumers:
And even as these developments were taking place, the Indian consumer became more
mature. Customer-expectations zoomed. Thus, at the beginning of the New Millennium,
retailers have to deal with a customer who is extremely demanding. Not just in terms of
the product-quality, but also in terms of service, and the entire shopping experience.

Today, the typical customer who shops in a retail outlet compares the time spent at the
check-out counter with that at an efficient petrol station, and the smile of the counterperson to that decorating the face of a Jet Airways' crew member. To cope with the new
customer, manufacturers have to focus on product quality and brand building. And
retailers, in turn, have to focus on the quality of the shopping experience.

In this millennium, like in the last, customers will want to spend time with their family
and friends. They may like to visit an outlet on weekends where everything will be
available under one roof. India will benefit from these developments
because of increased consumption through retailing and the corresponding increase in
employment created by retailing.
Retail organizations exhibit great variety and new forms keep emerging. There are store
retailers, non store retailers, and retail organizations.
Consumers today can shop for goods and services in a wide variety of stores. The bestknown type of retailer is the department store. Japanese department stores such as
Takashimaya and Mitsukoshi attract millions of shoppers each year. These stores feature
art galleries, cooking classes, and childrens playgrounds.
The success of the retail stores, therefore, depends on customers reaction to the retailing
mix which influences the profits of the store, its volume of turnover, its share of the
market, its image and status and finally its survival.

10

Trends In Retail Marketing

At this point, I can summarize the main development retailers and manufacturers need to
take into account as they plan their competitive strategies.
In India the trends are mainly in three sectors. These sectors are:

Trends in retail marketing

Urban

Suburban

Rural

New retail forms and combinations continually emerge. Bank branches and ATM
counters have opened in supermarkets. Gas stations include food stores that make more
profit than the gas operation. Bookstores feature coffee shops.
The electronic age has significantly increased the growth of non store retailing consumers
receive sales offers in the mail and over television, computers, and telephones, to which
they can immediately respond by calling a toll-free number or via computer.
Competition today is increasingly intertype, or between different types of store outlets.
Discount stores, catalog showrooms, and department stores all compete for the same
consumers. The competition between chain superstores and

11

Smaller independently owned stores have become particularly heated. Because of their
bulk buying power, chains get more favorable terms than independents, and the chains
large square footage allows them to put in cafes and bathrooms.

Todays retailers are moving toward one of two poles, operating either as mass
merchandisers or as specialty retailers. Superpower retailers are emerging. Through their
superior information systems and buying power, these giant retailers are able to offer
strong price savings. These retailers are using sophisticated marketing information and
logistical systems to deliver good service and immense volumes of product at appealing
prices to masses of consumers.
Many retailers are even telling the most powerful manufacturers what to make; how to
price and promote; when and how to ship; and even how to reorganize and improve
production and management. Manufacturers have little choice: They stand to lose 10 to
30 percent of the market if they refuse.

Technology is becoming critical as a competitive tool. Retailers are using computers to

produce better forecasts, control inventory costs, order electronically from suppliers, send
e-mail between stores, and even sell to
Customers within stores. They are adopting checkout scanning systems, electronic funds
transfer, and improved merchandise-handling systems.

12

Retail Marketing In India

There are various ways of making goods available to consumers like:

Company to distributor to wholesaler to retailer to consumer

Company to salesperson to consumer

Company to consumers (online/ phone/ catalog ordering)

These three are among the most common ways of making the goods available to
consumers. But in India the three layered system of distributor, wholesaler and retailer,
forms the backbone of the front-end logistics of most of the consumer-good companies.

*There are a number of reasons behind this fragmented retail market. Some of the major
reasons being:

Poverty and lower literacy levels.

Low per capita income.

Savings focused and less indulgence mindset.

Poor infrastructure facilities like roads etc.

Restrictions on intra-state good movement.

High taxes.

No exposure to media.

High import duties on imported goods.

FDI in retailing is not allowed.

13

INTRODUCTION OF BIGBAZAR

14

Theory
According to Kishore Biyani's 3-C theory, Change and Confidence
among the population is leading to rise in Consumption, through better
employment and income. Big Bazaar has divided India into three
segments:
India one: The Consuming class which includes upper middle and lower
middle class (14% of India's population).
India two: The Serving class which includes people like drivers,
household helps, office persons, liftmen, and washermen (55% of
India's population) and
India three: The Struggling class (31% of India's population).

Big Bazaar's new shopping scheme finds takers

About 20,000 customers have enrolled for the Future Group-owned Big
Bazaar's latest shopping scheme, which requires shoppers to pay
money upfront to join for membership. To join 'Big Bazaar Profit Club', a
customer has to pay Rs 10,000, after which he can shop for Rs 1,000 a
month for 12 months, thus getting two months' shopping free.
"It is a loyalty and prepaid card for our customers. Many customers are
liking it and we have seen over 20,000 customers enrolling for it," said
a senior executive with Future Group.
On being asked about the legality of the scheme, the executive said it
is akin to a prepaid card and it has nothing to do with money making.
"Many retailers and jewellers are doing such schemes," he pointed out.
A mail sent to a Future Group spokesperson on Saturday did not elicit
any response.
However, the company's peers say it is an expensive scheme for the
retailer due to heavy discounts they offer and the administrative costs
involved.
"It is a good way for them to get new cashflows. This way, they can go
and buy new goods," said the chief executive officer of a retail chains
on condition of anonymity. However, according to the Future Group
executive, the new scheme has "nothing to do with money". He said,

15

"It is about loyalty of customers coming in 12 times a year and results

in business for us."
An executive from a rival firm said the cost of the scheme was very
high, given that Big Bazaar is offering goods worth Rs 12,000 for Rs
10,000.
"The cost of managing so many accounts is high. Administrative costs
come to two to three per cent of the scheme. I wonder how they will
make money. We can't do it," the executive said.

Wednesday Bazaar
The concept of Wednesday Bazaar was promoted as 'Hafte Ka Sabse
Sasta Din' (Cheapest Day of the Week). Initiated in January 2007, the
idea behind this scheme was to draw customers to stores on
Wednesdays, the day when consumer presence is usually less.
According to the chain, the aim of the concept was 'to give
homemakers the power to save the most.

MahaBachat

The concept of 'MahaBachat' (Mega Saving) was introduced in the year

2006 as a single day campaign with promotional offers across the
company outlets. Over the years, the concept has grown to become a
six-day biannual campaign. During the campaign, offers are given in all
the value formats including Big Bazaar, Food Bazaar, Electronic Bazaar,
Furniture Bazaar, Fashion bazaar.

16

The Great Exchange Offer

Introduced on 12 February 2009, 'The Great Exchange Offer' allows
customers to exchange their old goods for Big Bazaar coupons. The
coupons can be redeemed later for buying brand new goods from Big
Bazaar outlets across the nation. All three scheme are active till date
2015.

17

Big Bazaar timeline

2001
Three stores launched within a span of 22 days in Kolkata, Bangalore
and Hyderabad

2002

ICICI Bank Card is launched.

Food Bazaar becomes part of Big Bazaar with the launch of the first
store in Mumbai at High Street Phoenix

2003

Enters Tier II cities with the launch of the store in Nagpur

Welcomes its 10 millionth customer at its new store in Gurgaon

2004
Wins its first award and national recognition. Big Bazaar and Food
Bazaar awarded the countrys most admired retailer award in value
retailing and food retailing segment at the India Retail Forum
A day before Diwali, the store at Lower Parel becomes the first to touch
Rs 10 million turnover on a single day

18

2005
Implementation of SAP and pilots a RFID project at its central
warehouse in Tarapur
Launch of a shopping program: the Big Bazaar Exchange Offer, inviting
customers to exchange household junk at Big Bazaar
Electronic Bazaar and Furniture Bazaar are launched
Big Bazaar and ICICI Bank launched ICICI Bank-Big Bazaar Gold credit
card program to reward its loyal customers.

2006
Mohan Jadhav set a national record at Big Bazaar Sangli with aRs
137,367 shopping bill. The Sangli farmer becomes Big Bazaars largest
ever customer.
Launches Shakti, Indias first credit card program tailored for
housewives
Navaras the jewellery store launched within Big Bazaar stores

2007
The 50th Big Bazaar store is launched in Kanpur
Partners with Futurebazaar.com to launch India's most popular
shopping portal
Initiates the "Power of One" campaign to help raise funds for the Save
The Children India Fund.
Pantaloon Retail wins the International Retailer of the Year at US-based
National Retail Federation convention in New York and Emerging
Retailer of the Year award at the World Retail Congress held in
Barcelona.

2008
New section, Fashion@Big Bazaar, starts
Voted among the top ten service brands in the country in the latest
Pitch-IMRB international survey
Initiates the Mega Saving "Monthly Bachat Bazaar" campaign, to
provide deals on groceries and food items during the first week of
every month.

2009
Opens its second store in Assam at Tinsukia
Initiates MahaAnnasantarpane program at its stores in South India an
initiative to offer meals to visitors and support local social
organizations
Mahendra Singh Dhoni and Asin, youth icons of India, were chosen as
the brand ambassadors of Big Bazaar
Announced the launch of 'The Great Exchange Offer'
Formed a joint venture with Hidesign to launch Holii, a new brand of
19

handbags, laptop bags and other accessories.

2010
Future Value Retail Limited is formed as a subsidiary to spearhead the
groups value retail business through Big Bazaar, Food Bazaar and
other formats.
Wins CNBC Awaaz Consumer Awards for the third consecutive year.
Adjudged the Most Preferred Multi Brand Food & Beverage Chain, Most
Preferred Multi Brand Retail Outlet and Most Preferred Multi Brand One
Stop Shop
Opens its third store in Kanpur at Z Square Mall
VidyaBalan was chosen as the brand ambassador of Big Bazaar's Price
Challenge exercise
Ranked six among the Top 50 Service Brands in India.

2011
Enters the rural wholesale and distribution business through 'Aadhaar
Wholesale' store at Kalol, Gujarat.
Big Bazaar has come up a new logo with a new tag line: 'Naye India Ka
Bazaar'.
200th store opened in India.

Advertising campaigns and marketing

initiatives

New logo
On the occasion of completion of ten (10) years in the Indian retail
industry (in 2011) Big Bazaar came up with a new logo for the
company with a tag line that says: 'Naye India Ka Bazaar' (Market for
New
India).
This
replaces
the
earlier
tag
line:
'IsseSastaAuracchaKahinNahin' (Nothing is Cheaper and good than
Here).

20

Advertising initiatives
Big Bazaar has launched a promotion drive covering the three prime
media, television, print and social media, to mark the launch of the
new logo. The media campaign was developed by Mudra
Communications.

Future Group trims workforce

Kishore Biyani-led Future Group has rationalized its workforce by 3,000
employees in the last 12 months amid mounting debt, which has
troubled the country's largest retailer.

The jobs which have been shed on a net basis include both natural
attrition as well as employee exits due to store closures, the company
said in a recent conference call after the announcement of its second
quarter financial results. Future Group said it was not filling up
vacancies and was transferring employees from closed stores to other
functioning ones. The retailer, which runs Big Bazaar, Pantaloon and
Food Bazaar stores, added that the October to December quarter last
year was one of the worst in terms of consumer sentiments. With debts
estimated at $1 billion, it closed five independent Food Bazaar outlets
and 11 e-zone stores.
Future Group has also been faced with some top-level exits in the past
year and now there is speculation over ex-PepsiCo veteran Vibha Paul
Rishi, executive director, customer strategy at Future Group, being on
her way out. When contacted by TOI, Rishi said over the phone, "I
cannot say Yes or No to this news."
When asked about the job rationalization currently being undertaken at
the group, a company spokesperson said in an emailed response,
"While we have added over 2 million sq feet of retail space in the past
one year, we have also been able to increase our employee
productivity on a per sq feet basis. We have realigned our talent pool
and hence addition of new stores didn't result in significant increase in
headcount. In fact due to natural attrition, the headcount at the
company level has come down."
The group's retail business had a headcount of around 40,000 a
yearback which is down to around 36,000 people now. The company
spokesperson said that attrition at the front end was in double digits
across all chains, citing it as a possible reason for the drop in employee

21

numbers. The country's top retailer has said that it wants to sell its
non-core assets like financial services and insurance. It was also
banking heavily on the opening up of the multi-brand retail sector to
FDI last year. In an announcement made to the stock exchange,
Pantaloon Retail, the listed entity of the group, had said that it has
formed a review committee with a mandate to consider various options
for realignment and divestment with specific objective to ensure
unlocking of shareholder's value, achieve substantial debt reduction
and consolidation.

Big Bazaar-Marketing Mix

Product Branding

Price

Packaging

Cost of goods

Product Design

Business Expenses

Assortment

Gross Margin

Services

Profit

Promotion

Distribution

Advertising

Logistics

Personal Selling

Store Location

Sales Promotion

Site Evaluation

Public Relations

Transportation

Visual Merchandising

Storage of goods

They seem to follow this to the core for effective Customer reach and encourage
customer loyalty.

22

CRM In Retail Marketing( Big Bazaar)

Customer relationship activities have the most impact on customer retention. Every
customer service encounter has the potential to gain repeat business or have the opposite
effect. The expectation of personalized, relevant offers and service is becoming a primary
driver of customer satisfaction and retention in financial services.

What Exactly Is CRM?

The first thing you find when looking into the world of Customer Relationship
Management is the number of different definitions in use today.

Here is the one I have chosen for this Project:

"CRM is the business strategy that aims to understand, anticipate, manage and
personalize the needs of an organization's current and potential customers" -PWC Consulting .

CRM is a business strategy, one that puts the customer at the heart of the
business.

Thats nothing new I hear you say, and you would be right. Good business
people have always understood the relationship between happy customers that

23

come back again and again and creating long term, sustainable profitability. Big
Bazaar has realized this and applied this to effect.

One just needs to think of the local shop owner who knew everyone of his customers
names, birthdays and particular ailments to prove that point. What is new is that there
now exists the technology to enable this customer-centricity on a much larger scale.

(Come To Big Bazaar- IsseSastaAurAchhaKahinNahin)

It is said that a successful CRM implementation will allow your Customer Service, Sales
and Marketing people (and anyone else in your organization) to have a holistic view of
each and everyone of your customers. In theory this will enable them to make quick,
informed decisions, create cross selling and up selling opportunities, measure marketing
effectiveness and deliver personalized Customer Care. Sounds great doesnt it !!!

The History of CRM

Following on from Enterprise Resource Planning or ERP (the business strategy that
promised to automate the back-office), the term CRM was first coined in the mid1990s. CRM in those days referred to the software used to help businesses manage their
customer relationships. From sales force automation software (SFA) that focused on
customer contact management to integrated knowledge management solutions, these
were the early foundations of CRM.

24

The last couple of years have seen the term broaden to encompass a more strategic
approach and the investment of billions of dollars worldwide into CRM solutions and
services has followed.

First Things First

Successful CRM always starts with a business strategy, which drives change in the
organization and work processes, enabled by technology. The reverse rarely works. The
key here is to create a truly Customer-Centric philosophy that touches every point and
more importantly every person in the company. From CSR to CEO everyone must live
and breathe customer focus for all of this to work.

The Right Technology

It is estimated that the global market for CRM services and solutions is currently worth
$148 billion. That means a lot of choice when selecting your technology - from webbased solutions aimed at small businesses with less than 10 employees to solutions
suitable for multi-national enterprises with millions of customers.

The Future
CRM has already made a big impact in the world of Customer Service and will continue
to do so. As more and more companies become customer-centric those that fail to do so
will lose competitive advantage. As technology increases to develop at a startling rate the
key emphasis will be how we can fully utilize it within our business.

25

However let's not lose sight of the fact that Customer Relationship Management is about
people first and technology second. Thats where the real value of CRM lies, harnessing
the potential of people to create a greater customer experience, using the technology of
CRM as the enabler.

Advantages Of CRM for Big Bazaar

Using CRM, at the management of Big Bazaar can:
Provide better customer service
Increase customer revenues
Discover new customers
Cross sell/Up Sell products more effectively
Help sales staff close deals faster
Make call centers more efficient
Simplify marketing and sales processes

By applying this methodology Big Bazaar learned more about customers' needs and
behaviors in order to develop stronger relationships with them. They implemented CRM
as a process that brought together lots of pieces of information about customers, sales,
marketing effectiveness, responsiveness and market trends.

26

CRMhelps businesses use technology and human resources to gain insight into the
behavior of customers and the value of those customers.

Challenges For Big Bazaar in CRM implementation:

.Difficulty in acquiring new customers can be a result of any one, or combination,
of the following problems.
.Inaccurate and Slow Quoting Organizations may be unable to accurately estimate
and quickly deliver successful proposals, often leading to missed opportunities,
bad profit margins and upset prospects.
Lack of Product Knowledge Within their Sales Force
Problems can arise when products were sold that didnt fit company's profitability
strategy such as selling a customer one product when another would be better for
the customer and more profitable for you.
Difficulty and Delay in Updating Pricing and Product Information
When the sales force is relies on incomplete product, pricing and customer
information, then they're probably not selling the most profitable
offer.

27

products you

 Customers prefer a combination of differing channels in which to deal with your

company. Self-service on the web can even be done for complex products. Plus,
self-service on the web offers retail banks the opportunity to shift cost out to the
customer.

Customer Satisfaction Is Big Bazaar

The degree of customer satisfaction you deliver determines the level of long-term
success you will achieve in business. - --- Training Mantra for Sales Force

Customer

Satisfaction

their

Top

Priority

Don't just make sales. Create customers - satisfied customers. In addition to the
immediate profit they provide on the first sale, satisfied customers help you build your
business

in

other

important

ways:

1. They become a reservoir of repeat buyers. For some businesses that means repeat
buyers for more of the same product or service. For every business, it means buyers for
additional

products

and

28

services.

2. They automatically refer more business to you from their friends and business contacts.
This is highly profitable business for you because it doesn't cost you any time or money
to get it.

Whatever

they

Promise

More,

they

Deliver

Never make any promises you can't (or won't) keep. Nothing alienates customers faster
than getting something less than they expect from a business transaction. They won't do
business with you again. And they will tell everybody they know about their unhappy
experience

Always

causing

Give

you

Customers

to

More

lose

Than

future

They

customers.

Expect

"Over deliver" on quality and service. Always exceed your customers' expectations. You
will win their long term loyalty. It also makes it difficult for competitors to steal
customers from you - even if they have lower prices. Customers will not risk an uncertain
experience with a competitor when they know they will get more than they expect from
you.

Customers

know

how

much

they

value

them:

Let your customers know you are always thinking about them. Communicate with them
regularly. For example, create some special deals just for your existing customers. And

29

announce new products or services to them before you announce them to the general
market.

PROCESS OF CRM
Customer Relationship Management (CRM) is the process of bringing the
customer and the company closer together. There are many different areas in
which Customer Relationship Management can be implemented. The goal of
CRM is to help a company maintain current customers, as well as gain new
customers.

Targeted Marketing: Targeted marketing is accomplished through collecting

information about the customer. This information can be buying habits or simply
demographics. The idea behind this is that a business analyzes what a customer
buys and then markets specific products to that customer based on his or her
buying habits. Businesses track buying habits using discount cards, and special
store credit cards. Targeted marketing can also be implemented on the Internet.
Amazon.com has product recommendations based on buying habits, and product
ratings. Customers can also be sent e-mails that market targeted products.
Marketing the right products to the right customers can significantly increase a
business' sales with minimal associated costs.

CONSUMER BEHAVIOR

30

Options: Consumers are more likely to choose an alternative after a

relatively inferior option is added as a choice. For example, Simonson
says, participants in one study were given a choice

between $6 and an elegant Cross pen. A second group chose among $6,
the

same Cross pen, and a second pen that was clearly less attractive than the
Cross pen. As was predicted, the addition of the unattractive pen increased
the share of the Cross pen at the expense of the $6.

Alternatives: Consumers prefer alternatives that are compromise choices.

Given a choice between two alternatives, one priced lower than the other, the
addition of a third choice, priced higher than both, will increase the market share
of the more expensive of the original two. This finding suggests that companies
can increase their overall sales and shift purchases to higher-margin items by
carefully designing the sets of alternatives that their customers consider.

Floor Displays: Buyers are averse to choosing the lowest-quality

alternative in sets of three or more choices. One of the implications of this
finding is that marketers of well-known, high-priced brands should
encourage retailers to organize floor displays by model type, whereas
marketers of lesser-known, lower-priced brands should prefer organization
by brand.

Brands: Consumers who think about the possibility that their purchase
decisions will be wrong are more likely to choose better known brands. In a
test case, Simonson showed that consumers debating between a better known,
more expensive brand and a lesser-known, less expensive brand expect to feel
31

greater regret if they err by choosing the cheaper option. Indeed, after thinking
about the possibility of regret, consumers were more likely to select the betterknown brand. Kodak film has capitalized on this finding with an advertising
campaign that asks consumers to consider how they would feel if they bought
cheap film and their pictures didn't turn out.
Preferences: Consumers tend to select variety when buying multiple
products for consumption at a later time. In each of three weeks, Simonson
asked a group of respondents to select one of six familiar snacks for
immediate consumption. A second group was asked to pick three snacks -one for immediate consumption and one for each of the next two weeks.
Both groups were told that they could pick the same snack as many times
as they wished. Those in the first group tended to select the same snack all
three times, whereas most in the second group selected three different
snacks.

Product Modifications: Modifying a product with a feature or premium

that is of little or no value to the consumer, even without raising the price,
may actually decrease sales. When consumers are uncertain about their
preferences, a product that offers an unneeded add-on (such as an offer to
purchase a Pillsbury Doughboy collector's plate) provides them with a
reason for rejecting it.

While marketing professionals can use these findings to influence consumer

decision making, consumers, too, can benefit by understanding their own
behavior. "One of the points of our research is to inform consumers about some of
the factors that influence their decisions," Simonson says. "With such knowledge,
they may be able to make better, more thoughtful decisions."

32

1.5

SWOT Analysis of Big Bazaar

Strength
Prime location
Large floor space allowing for better visual merchandising
Large area also allows to stock a large variety of products under one roof
Experienced and competent management
Highly trained and motivated sales force
Brand equity

33

 Large scale operations in various cities throughout the country allows them to
reap the benefits of economies of scale

Weakness
Large scale of operations sometimes acts as a barrier to personalized customer
relations
Large scale operations lead to reduced flexibility by increasing the amount of
overheads and a huge commitment in terms of fixed costs
A large organization structure leads to delayed decisions. This can prove fatal
for a business in the dynamic fashion industry. Mumbai, this fact sometimes
results in delayed decisions in adapting to changing market trends

Opportunities
Apart from the metros, cities like Ahmadabad, Pune, Lucknow, Indore and
Coimbatore have shown substantial retail presence. Most sport modern retail
formats like supermarkets, department stores and specialty chains. These
markets are expected to show exponential growth in the next few years. Thus
Food Bazaar has the opportunity to explore new markets
According to the Consumer Outlook study, consumers are generally satisfied
with the service that organized retailers extend to them. More importantly,
they are increasingly regarding these organized retailers as providing `valuefor-money. These findings indicate that large retailers will capture most of
the higher consumer spending

34

 Increasing penetration of the internet into Indian homes has provided Food
Bazaar Mall to break the geographical barriers and to increase their customer
base. The entry into online retailing, would, in fact, expand the product
categories available to the consumer

Threats:
The time when retailers had to worry about competition only from their peers
down the street has come to an end. Food Bazaar is now facing increased
competition in the form of international retail chains that are making a beeline
towards the highly potential Indian markets. Moreover many big Indian
business houses are also vying a space in the Indian retail scene.

Chapter 4 Data Analysis

RESULT OF SURVEY ON CRM IN RETAIL MANAGEMENT
(BIG BAZAAR)
CUSTOMER SURVEY:-

1. Are you satisfied with the services provided by Big-Bazaar?

YES

20

NO

CANT SAY

35

25

20

15

10

0
YES

NO

CAN'T SAY

DATA INTERPRETATION
From the above table it is clear that customers are satisfied with the services of Big
Bazaar because out of 30 customers 20 has given the positive answer in favor of Big
Bazaar.

2. How do you find the Shopper Assistants behavior?

HELPING

18

NOT HELPING

36

7RUDE

20
18
16
14
12
10
8
6
4
2
0

DATA INTERPRETATION
From the above table it is clear that customer are satisfied with the attitude of the
shoppers .Out of 30 customer all 18 customer are satisfied.

3. How would you rate the Shopper Assistants behavioron the scale of
five?
54 10

3 143

2 05 2

1 11

37

00

5
4
3
2
1
0

10

15

20

25

DATA INTERPRETATION
Out of 30 customer,11customer have given the 5 marks
to shopper . Assistant behavior while 14 has given 4 marks&5 has given 3 marks

4. Do you find the Layout of Food-Bazaar helpful in Shopping Experience?

YES

20

NO 8

CANT SAY

38

can't say 2

no

yes

20

10

15

20

25

DATA INTRPRETATION
Out of 30 customers ,18 have told that they like the layout of Big Bazaar while 8 told that
they do not like very much.

5. What do you like most about Big-Bazaar ?

CREDIT FACILITY

DELIVERY SERVICES

TRANSPORTATION FACILITY
18

39

20
18
16
14
12
10
8
6
4
2
0

18
7

Cr.Facility

Tr.Facility

Dl.facility

DATA INTERPRETATION

Out of 30 Customer, 18 customers like delivery services of Big Bazaar while

7 customers like the credit facility&5 customers like transportation facilities.
So it is clear that customer wants delivery services most.
6. How often do Big-Bazaar services exceed your expectations? (Customer
Delightness)
ALWAYS 18

SOMETIMES

40

NEVER

20
15
10

18

9
3

DATA INTERPRETATION

Out of 30 Customers ,18 customers said that Big Bazaar always provide
better services &it exceed their expectation.

7. Do you think that Big-Bazaar follow the ethical Mktg. Practices like
right pricing, right quality and right quantity?
YES

25

NO

CANT SAY

41

30
25
20
15
25
10
5
5
0

Yes

No

0
Can'tsay

DATA INTERPRETATION
Out of 30 customer,25 customers have told that BigBazaar following the
ethical marketing practices.

8. What comes first when you think about FoodBazaar?

PRICE

20

QUALITY

10

42

QUALITY; 33%

PRICE; 67%

DATA INTERPRETATION
Customer said that when they think about Big Bazaar they think about
price. out of 30 customer 20 customer have told this while 10 customer said
that they think about quality.

9. How would you rate themesetting display of Food-Bazaar in

comparison to other?
EXCELLENT
WORST

9 GOOD

18 SO-SO

43

3 BAD

20
15
10
5

18
9
3

DATA INTERPRETATION
Out of 30 customers, 9customers said that Food Bazaar theme is excellent
while 18 customers said that it is good &3 customers said that it is ok.

RETAILOR SURVEY
10. Whatis the most important criteria of selection for their Store Assistant
and Store Manager?
1

Pleasing Personality

Good Communication
44

Team Work

Commitment toward Customer needs

40

30

10

20

10

10 1 1
0

10

12

14

16

DATA INTERPRETATION
Out of 20 retailers,10 has given importance to the store manager who have
the quality of identifying customer need, while others have given importance
on work & good communication skills.

11. Do you display all the entire stock on the rack or some amount is kept
for contingence? (Inventory availability)

45

Applicable to all product 14 Applicable to some product

Only to FMCG

0
2

8
1

14

DATA INTERPRETATION
Out of 20 retailer ,14 have told that they show all the product to customer,
while 4 have told that show some product to the customer.

12. How do you decide of point of purchase counter?

Brand 2

Price 2

Customer preference 12

46

Product visibility 4

40

30

12

20 2

10 2

10

12

14

16

DATA INTERPRETATION
Out of 20 Retailer, 12 has said they use the customer preference for point of
purchase counter while other said that they use brand &product visibility.

13.What is the preference order for promotional activity to create customer

awareness?
47

Newspaper

10

Radio jingle

Advertising

Banner

12
10
8
6
4
2
0

DATA INTERPRETATION
Out of 20 retailer ,10 has told that they use Newspaper as their main tool for
promotional .

14. How would you analyse the customer satisfaction?

Number of repeat purchase
database

Loyalties benefit

48

Customer

10

30

20

10

10

10

12

14

DATA INTERPRETATION
20 Out of Retailer, 10 retailer said that they get the customer satisfaction by
customer database while other have said that they use data of number of
repeat purchase.

15. What is your method of analyzing customer satisfaction?

Feedback

12

No. of repeat purchase

With customer

49

interaction of manager 3

1
0

10

12

14

DATA INTERPRETATION
Out of 20retailer, 12 have told that analyzing the customer satisfaction
through the feedback of customer.

50

Chapter 4- FINDINGS

Findings
In this survey the findings are given below:

51

1. Most of the stores are targeting almost all the segments of the society with their USP
being Price benefit
2. All the stores are in Prime Location.
3. Every Big Bazaar outlet have motivated and trained sales force.
4. Large variety of products are available ranging from clothes, food items, electronic
goods etc.
5. Staff is provided constant training for various peculiarities of customer behavior.
6. Some of them offer discount sales and also send greetings to its loyal customers.
7. Not much difference in the Layout of the floor designs in the various branches. They
try to maintain a similarity to maintain comfort levels of customers.
8. These stores maintain Word of Mouth.
9. Customers are satisfied with the provided services.
10. International shopping experiences can be achieved from these stores.

52

RECOMMENDATION

53

RECOMMENDATION
1)Convert your customers into publicity agents. Develop an incentive for them to tell
associates and friends about the value of your products or services. An endorsement
from them is more effective than any amount of advertising - and it is much cheaper.
2) Surprise your customers with unexpected value. If you sell products, include an
"unadvertised bonus" with every order. If you sell services, get into the habit of doing
something extra for every customer or client without charging for it.
3) Reward them each time they refer someone who becomes a customer. Your reward
can be as simple as a credit toward their next order from you.
4) The management of BigBazaar can improve their understanding of the role and
capabilities of advertising to improve customer relation and enhance loyalty. This
understanding should in turn results in a more effective and more efficient advertising
campaign.
5)Visual Merchandising: It is often seen that the people come to the store to browse
rather than buy.
6) Schemes: In store Promotions: The people visiting the store should be encouraged
to visit the store again and again. So it is necessary to delight the shoppers with the
shopping experience. It has been observed in

54

CONCLUSION

CONCLUSION

55

Customer Service is a critical factor for keeping your clients coming back and ensuring
theyll refer you to others.

1: Growing your business will be a difficult task at best if you dont perform, meet
and exceed your clients expectations, and provide service that creates customers for
life.

2: Customer service is all about the customers perception. You have to do more than
just get the job done. You must deliver on all the things (big and small) that affect the
relationship with your client. Consider opportunities for improvement in the
following

areas.

3: Setting/Reviewing Expectations: Do you work with your client to set clear,

appropriate, realistic expectations that you can always meet or exceed? Are you clear
about the responsibilities (both yours and the clients), timelines, and expectations of
results? Are you then willing to go back and review these expectations with the client
at

key

points

along

the

way?

4: Communication: Do you have mechanisms in place to ensure youre

communicating with clients at every stage of the engagement, from the sales process
through to completion of the project? Being clear about where youre at, whats been
completed, whats coming up next, whos responsible, what results you can expect,
etc.?

Has

the

client

ever

had

to

ask

you

for

these

things?

5:Organization: Are you organized? Punctual?Reliable? When you show up to work

with your clients, have you done the work and are you prepared to make them feel

56

comfortable and taken care of? Even though youve done it hundreds, maybe
thousands of times before, do you take the time to organize and prepare to make it the
best

client

experience

possible?

6: Committing to the Little Things:Dont ever dismiss the power of all the little
things. Together they can make all the difference and really separate you from the
competition. Returning calls and emails in a timely manner. Providing useful
information to folks on a regular basis. Showing appreciation for your clients through
things like thank you notes, exclusive client-only briefings, and open house, etc.

Clearly these are not the only relevant areas for creating great customer service, I
assure you. But these were some of the Factors which might
Provide a boost to the sales figures, though I am sure the organization would have
already implemented most of these measures already.

57

ANNEXURES

58

QUESTIONAIRE: customer based survey

1. Are you satisfied with the services provided by Big-Bazaar?
YES

NO

CAN'T SAY

2. How do you find the Shopper Assistant's behaviour?

HELPING

NOT HELPING

RUDE

3. How would you rate the shopper assistant`s behaviour on the scale of
five?
1

4. Do you find the layout of big-bazaar helpful in shopping experience?

YES

NO

CANT SAY

5. What do you like about Big-bazaar?

Credit facility

delivery services

6. How often do food-bazaar services exceed your expectations?

Always

sometimes

59

never

7. Do you think that Food-bazaar follow the ethical Mkgt. practices like
right pricing, right quality and right quantity?
Yes

no

can`t say

8. What comes first when do you think about food bazaar?

Price

quality

9. How would you rate theme-setting display of Food-Bazaar in

comparison to other?
Excellent

good

so-so

NAME...........................
ADRESS..............

60

bad

QUESTIONAIRE:-RETAILOR BASED SURVEY

1. What is the important criteria of selection for their store assistant and
store manager?
Pleasing personality

good communication

team work

2. Do you display all the entire stock on the rack or some amount is kept
for contingence?
Applicable to all productapplicable to some product

only to fmcg

3. Rate the following options as per your priorities while deciding the
layout for store?
Security

computerization

parking

air-condition

4. How do you decide of point of purchase counter?

Brand

price

customer performance

product visibility

5. What is the preference order for promotional activity to create

customer awareness?

61

Newspaper

radio jingle

advertising

banner

6. How would you analyse customer localities factor?

No. Of repeat customer

localities benefit

customer database

7. What is your method of analysing customer satisfaction?

Feedback

no.of repeat purchase

interaction of manager with customer

Bibliography

Marketing Management
62

- Philip Kotlar

Research Methodology
- C. R. Kothari

Retail Marketing
J.A.Lamba

Customer Relationship Management

-

Jagdish and Seth

www.indiainfoline.com

www.google.com

www.businessline.com

63

64