Research Report

On
“To develop Customer Service At Big
Bazaar”
(In partial fulfillment of Bachelor of Business Administration)

With reference to
Pantaloon Retail India Ltd
Big Bazaar

BY:
Abhijeet Shrivastava
A7006408036

LUCKNOW CAMPUS

1
 PREFACE

Today is the world of competition. In every sphere of life there is severe competition and
only those companies are running successfully who are able to overcome their drawbacks as
well as their weaknesses and have a complete and immense knowledge of what their
customers need and want, and how much satisfaction one provides to its customers.
Prevention is better than cure is an old time textured saying.

The findings not only help in performance appraisal but also give the warning signals to
guard it against any prospective threats from both within and outside. A market leader
would never like to loose its position and Big Bazaar (Pantaloon Retail India Ltd.) is no
exception.

Today companies most urgently and critically rethink their business mission and marketing
strategies. The present report studies the management problems at Big Bazaar. It throws
light on various problems faced by different departments like ware housing.

This report is largely based on self work done and helps taken from Industry guide and the
department managers of Big Bazaar.

Abhijeet Shrivastava

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 ACKNOWLEDGEMENT

The Project Title “How to enhance customer service in Big Bazaar” has been conducted by
me at PANTALOON RETAIL INDIA LIMITED.

As a student, a lot of guidance was needed for me to prepare the report.

With a profound feeling of immense gratitude and love, I express whole hearted thanks to
my industry mentor Mr. Nikhil Kansal (ASM Big Bazaar, Lucknow) for giving me an
opportunity to complete my industrial training in such a reputed company. I am also
thankful toward him for the priceless and affectionate guidance through out the training.

I am also grateful to my faculty mentor Mr. Rajneesh Shankdhar, who provided me their
valuable guidance and direction at every stage of my summer training.

I am also indebted to a number of consumers for sharing their insight and experience.

At last but not least, I would like to thank all those who directly or indirectly helped in
successful completion of this study.

Abhij
eet Shrivastava

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 STUDENT’S CERTIFICATE

Certified that this report is prepared based on the summer internship

project undertaken by me inBIG BAZAR. from 14th may 2010 to 14th July

2010, under the able guidance ofMr. Rajneesh Shankdharin partial

fulfillment of the requirement for award of degree of Bachelor of Business

Administration (BBA) from Amity University, Uttar Pradesh.

Date.______________

Signature Signature
Signature

Abhijeet shrivastava Mr. Rajneesh Shankdhar

Professor R P Singh

Student Faculty Guide

Director (ABS)

4
 CERTIFICATE

Amity Business School

This is to certify that Abhijeet Shrivastava, a student of Bachelor of Business

Administration (BBA), , Amity University, has undertaken the summer internship at
Pantaloon Retail India Limited during May 14,2010and July 14,2010 He has worked under
my guidance for the project title “To enhance customer service and to observe customer to
sales behavior in Big Bazaar, Lucknow”. He has also been guided by Mr. Samarth Pandey.

This project report is prepared in partial fulfillment of Bachelor of Business Administration

(BBA) to be awarded by Amity University, Uttar Pradesh.

To the best of my knowledge, this piece of work is original and no part of this report has
been submitted by the student to any other Institute or University earlier.

Mr. Nikhil Kansal

(Asst. Store Manager- FB)

Big Bazaar - Lucknow

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 EXECUTIVE SUMMARY

The Project under Study was “To enhance customer service at Big Bazaar” & “To observe
customer to sales behavior”. The major area of study in a organized retail Industry is good
customer service, Good customer service is important to bring customers back, and send
them happy. So that they pass positive feedback to others, who may then try the store for
themselves and in their turn become repeat customers. It is an exploratory research.

Future Group is the parent company handling Pantaloon Retail India Ltd and Big
Bazaar. Our main aim is to give suggestions to improve the customer service at big bazaar.

In today’s time competition being so fierce one company can differentiate from other by
providing good customer service. The customer has become more aware.

The changing Indian consumer

• Greater per capita income, growing high and middle income population,
Affordability growth
• The urban consumer Getting exposed to international lifestyles, More
discerning and demanding than ever, No longer need-based shopping,
Shopping is a family experience

• Changing Mindset, Increasing tendency to spend, Greater levels of education

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 TABLE OF CONTENT

Preface ………………………….……………………………………………….2

Acknowledgement…………………………………………………………… 3.

Certificate from the faculty

Guide......................................................................................................4

Certificate from the Industry

Guide......................................................................................................5

Executive summary…………………………………………………………...6

CHAPTER 1: Introduction 8

1.1 Introduction to Company…………………………………………………………...

1.2 Introduction to Product under study………………………………………………..
1.3 Introduction to Retail Industry……………………………………………………...

CHAPTER 2: Analysis and Interpretation 29

2.1 Analysis of findings……………………………………………………………….

2.2 Interpretation of Study…………………………………………………………….

CHAPTER 3: Conclusion and Suggestion 54

3.1 suggestions…………………………………………………………………………..

Select Bibliography

References…………………………………………………………….

Annexure ………………………………………………………. .

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.

CHAPTER 1:

INTRODUCTION
1.1 Introduction to Company

1.1.1 Future Group

Future Group is India’s leading business group that caters to the entire Indian
consumption space. Led by Mr. Kishore Biyani, the Future Group operates through six
verticals: operates through six verticals: Retail, Capital, Brands, Space, Media and Logistics.

Apart from Pantaloon Retail, the group’s presence in the retail space is
complemented by group companies, Indus League Clothing, which owns leading apparel
brands like Indigo Nation, Scullery and Urban Yoga, and Galaxy Entertainment Limited that
operates Bolwing Co, Sports Bar and Brew Bar and

The group’s joint venture partners include French retailer ETAM group, US-based
stationary products retailer, Staples and UK-based Lee Cooper. Group Company, Planet
Retail, owns and operates the franchisee of international brands like Marks & Spencer,
Next, Debenhams and Guess in India. The group’s Indian joint venture partners include,
Manipal Healthcare, Talwalkar’s, Blue Foods and Liberty Shoes.

Future Capital Holdings, the group’s financial arm, focuses on asset management and
consumer credit. It manages assets worth over $1 billion that are being invested in
developing retail real estate and consumer-related brands and hotels. The group has

8
launched a consumer credit and financial supermarket format, Future Money and soon plans
to offer insurance products through a joint venture with Italian insurance major, generally.

The group is currently developing over 50 malls and consumption centers across the
country and has formed a joint venture company focusing on mall management with
Singapore-based CapitaLand, one of Asia’s largest property companies.

Future Group’s vision is to, “deliver Everything, Everywhere, Every time 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.

1.1.2 Pantaloon Retail India Ltd.

Pantaloon Retail (India) Limited, is India’s leading retailer that operates multiple
retail formats in both the value and lifestyle segment of the Indian consumer marker.
Headquartered in Mumbai (Bombay), the company operates over 5 million square feet of
retail space, has over 350 stores across 40 cities in India and employs over 18,000 people.

The company’s leading formats include Pantaloons, a chain of fashion outlets, Big
Bazaar, a uniquely Indian hypermarket chain, Food Bazaar, a supermarket chain, blends the
look, touch and feel of Indian bazaars with aspects of modern retail like choice,
convenience and quality and Central, a chain of seamless destination malls. Some of its
other formats include, Depot, Shoe Factory, Brand Factory, Blue Sky, Fashion Station, all,
Top 10, M-Bazaar and Star and Sitara. The company also operates an online portal,
futurebazaar.com.

A subsidiary company, Home Solutions Retail (India) Limited, operates Home

Town, a large-format home solutions store, Collection i, selling home furniture products and
E-Zone focused on catering to the consumer electronics segment.

Pantaloon Retail was recently awarded the International Retailer of the Year 2007 by
the US-based National Retail Federation (NRF) and the Emerging Market Retailer of the

9
Year 2007 at the World Retail Congress held in Barcelona.

Pantaloon Retail is the flagship company of Future Group, a business group catering to the
entire Indian consumption space.

1.1.3 Future Group Manifesto

“Future” – the word which signifies optimism, growth, achievement, strength,

beauty, rewards and perfection. Future encourages us to explore areas yet unexplored, write
rules yet unwritten; create new opportunities and new successes. To strive for a glorious
future brings to us our strength, our ability to learn, unlearn and re-learn our ability to
evolve.

We, in Future Group, will not wait for the Future to unfold itself but create future
scenarios in the consumer space and facilitate consumption because consumption is
development. Thereby, we will effect socio-economic development for our customers,
employees, shareholders, associates and partners.

• Our customers will not just get what they need, but also get them where, how and
when they need.
• We will not just post satisfactory results, we will write success stories.
• We will not just operate efficiently in the Indian economy, we will evolve it.
• We will not just spot trends; we will set trends by marrying our understanding of the
Indian consumer to their needs of tomorrow.

It is this understanding that has helped us succeed. And it is this that will help us
succeed in the Future. We shall keep relearning. And in this process, do just one thing.

1.1.4 Group Vision

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

1.1.5 Group Mission

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

1.1.6 Core Values

• Indian ness: confidence in ourselves.

• Leadership: to be a leader, both in thought and business.
• Respect & Humility: to respect every individual and be humble in our conduct.
• Introspection: leading to purposeful thinking.
• Openness: to be open and receptive to new ideas, knowledge and information.
• Valuing and Nurturing Relationships: to build long term relationships.
• Simplicity & Positivity: Simplicity and positivity in our thought, business and
action.
• Adaptability: to be flexible and adaptable, to meet challenges.
• Flow: to respect and understand the universal laws of nature.

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1.2 Introduction to Product type

1.2.1 Retail chain of 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 - that’s
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
experience.

BIG Bazaar, a division of Pantaloon Retail (India) Ltd, is planning to extend its
chain of stores. After Bangalore, Hyderabad and Kolkata, Big Bazaar will now stretch its
brand to Mumbai by opening three hyper markets in the city.

Offering discounts ranging from 5 per cent to 60 per cent, discount stores are still a
nascent concept in India.

Although there are a few stores operating in this segment such as Giant in
Hyderabad, it is mostly international chains such as Wal-Mart and Carrefour which are the
better known names as discount stores worldwide.

Explains Mr Kishore Biyani, Managing Director (Pantaloon Retail (India) Ltd),

"Indians are counting on discount stores and consider it a favorable concept. After all we are
offering a variety of products all under one roof, which is bound to attract a lot of
consumers."

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 Bagging extensive retail space, imperative for such a venture, the Big Bazaar in
Mumbai will have a 50,000 sq. ft area at each of its locations at Lower Parel, Mulund and
the western suburbs. These Big Bazaar stores will be open to the public in Mumbai by the
end of the year.

Big Bazaar launched its stores in Bangalore, Hyderabad and Kolkata last year.
Marking an investment of Rs 10 crore into this new division, Pantaloon is expecting to
record the highest turnover from its Mumbai stores. Mr. Biyani expects a turnover to the
tune of almost Rs 80 crore from Mumbai alone within the first year of operations.

But the projected turnover from its other Big Bazaar stores in Bangalore, Hyderabad
and Kolkata is Rs 50 crore this year.

Meanwhile the general retailers in Mumbai are not too pleased about the concept of
discount stores. Claims a retailer at a south Mumbai outlet, "We can't figure out from where
such stores get their margins? It must have a feasible revenue model to sustain the venture."

Offering products and services such as a chemist, a photography shop, a bakery,

financial products, automobile accessories, financial products, bicycles, electrical hardware,
among other items, the range is vast and fulfils practically every need of the consumer under
one roof.

"Each store will have a bazaar and shop-in-shop experience created specifically to
cater to a customer's complete shopping basket under one roof," states Mr. Biyani.

Considering that Pantaloon has already bagged substantial retail space in Hyderabad
(60,000 sq ft), Kolkata (35,000 sq ft) and Bangalore (40,000 sq ft), Big Bazaar as a discount
store brand is expected to lure consumers through its range and prices. "We are offering
maximum discounts for garments and fashion wear," says Mr. Biyani. Scouting for partners
in Mumbai currently, the company is on the look out for reputed retailers who would like to
stock their products at its about-to-be-launched Big Bazaar stores in the city.

With a baseline `Is se Accha aur profitable kahin nahi', Big Bazaar claims to be
India's first chain of hypermarket discount stores.

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 Investors with an appetite for risk can consider exposures in the stock of Pantaloon
Retail. Pantaloon is a front-runner in the fledgling organized retail industry. Besides being
one of only two listed retail companies, a rapid expansion in retail space and high growth
numbers has the stock trading at rather rich levels.

Pantaloon has rapidly garnered retail space, having set up more than 30 outlets all
over the country over the past six years. The company is expected to post a turnover of Rs
650 crore in FY04 and has targeted an ambitious target of Rs 1,000 crore in FY05. The
company has established stores across multiple formats — departmental store (Pantaloon),
hypermarket (Big Bazaar), and grocery retailing (Food Bazaar) and, recently, malls (Central
Mall). Already an established player in the apparel retailing business, its success with the
hypermarket format makes it a formidable player in the retail space.

Profits grew at a compound annual growth rate (CAGR) of about 35 per cent over
the past five years and Pantaloon appears set to record similar levels in the next couple of
years.

Glitches in expansion plans, a possible dilution of equity on account of an expansion

to fund growth and a possible drop in valuations following the IPO of Shoppers Stop, are
the risks to our recommendation. The growing proportion of low-margin products in the
product mix is also a cause for concern.

Although revenue growth has been strong, it has been volume-driven. Pantaloon,
which traditionally started as an apparel retailer, has emerged as a serious player in the food
and grocery retailing (value retailing) business, through its Big Bazaar and Food Bazaar
outlets. Although apparel still remains as its main revenue and earnings driver, low-margin
food and grocery products have, over the years, increasingly contributed to its revenues. The
company, therefore, lacks a cushion to protect its profits in a sluggish market. The
management, however, appears determined to restrict the sales contribution of grocery
retailing to 30 per cent of topline.

Enhancing margins

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 Operating margins took a dip in FY02, when Big Bazaar, which followed the
discount store model, was launched. However, margins have improved since then.

Strict inventory control, backward integration and the use of private labels are some
of the measures that have been taken to improve margins. Pantaloon has a stock conversion
period of about 90 days. This is moderate, considering that it retails a wide range of
products with divergent inventory policies.

With Food Bazaar, the company has attempted to set up shop close to its suppliers. For
instance, it sources dry staples such as rice and wheat directly from millers.

Pantaloon is integrated backwards in the apparel business, with its group company,
Pantaloon Industries — supplying fabric. This enables it to have some control over the cost
and quality of its apparel. It markets most of its products under private labels, thus offering
products that cost 20-25 per cent lower than branded items, owing to an absence of
advertising and other related expenses.

The use of private labels has met with some success in apparel retailing. A growing
share of private labels would have a favorable impact on the company's margins.

Growing at a frenetic pace

The company is on an aggressive expansion path, foraying into Tier-II and Tier-III
cities. This would mean a different set of challenges as against the urban set-up.

With Food bazaar, it has attempted to compete with the kirana or general store
format (which remains a dominant force), with its mandi system (customers are allowed to
pick and choose their fruits and vegetables as they do with the local vendor) and home
delivery services.

Even as it increases the number of outlets, Pantaloon's same store sales, particularly
which of its hypermarket and grocery businesses, remain reasonable.

Apparel retailing grew at only 2 per cent, while value retailing (big bazaar and food
bazaar) rose 25 per cent. In the future, however, revenues are likely to even out across
outlets, as new stores may cannibalize the sales of existing ones.

15
 Pantaloon plans to enter other retailing formats such as footwear and white goods,
which require different expertise and strategies.

The company's ability to replicate its success with its Big Bazaar and Food Bazaar
outlets across other retail formats would be its major challenge.

The company, for the present, intends to focus only on the four main formats.
Emerging competition in the hypermarkets arena would necessitate constant innovation,
which would determine the company's success.

1.2.2 Cities where stores are located

• Agra
• Ahmedabad
• Allahabad
• Ambala
• Asansol
• Bangalore
• Bhubaneswar
• Chennai
• Coimbatore
• Palakkad
• Kolkata
• Delhi
• Durgapur
• Ghaziabad
• Gurgaon
• Hyderabad
• Indore
• Lucknow
• Kanpur
• Mangalore
• Mumbai

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 • Nagpur
• Nasik
• Noida
• Panipat
• Pune
• Rajkot
• Surat
• Thane
• Thiruvananthapuram
• Thrissur
• Vishakhapatnam

1.3 Introduction to Retail Industry

1.3.1 Concept of Retailing

Retailing consists of the sale of goods or merchandise, from a fixed location such as
a department store or kiosk, in small or individual lots for direct consumption by the
purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be
individuals or businesses. In commerce, a retailer buys goods or products in large quantities
from manufacturers or importers, either directly or through a wholesaler, and then sells
smaller quantities to the end-user. Retail establishments are often called shops or stores.
Retailers are at the end of the supply chain. Manufacturing marketers see the process of
retailing as a necessary part of their overall distribution strategy.

Shops may be on residential streets, or in shopping streets with few or no houses, or

in a shopping center or mall, but mostly found in the central business district. Shopping
streets may or may not be for pedestrians only. Sometimes a shopping street has a partial or
full roof to protect customers from precipitation. Retailers often provided boardwalks in
front of their stores to protect customers from the mud. Online retailing, also known as e-
commerce is the latest form of non-shop retailing (cf. mail order).

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 Shopping generally refers to the act of buying products. Sometimes this is done to
obtain necessities such as food and clothing; sometimes it is done as a recreational activity.
Recreational shopping often involves window shopping (just looking, not buying) and
browsing and does not always result in a purchase.

Most retailers have employees learn facing; a hyper real tool used to create the look
of a perfectly-stocked store (even when it's not).

Difference between retail and other industries

A retail chain differs from other industries by nature of its number of locations. A
conventional manufacturing industry has a production at a limited number of locations and

18
sales being handled from a few more. However, a retail industry has sales from a large
number of locations.

In the case of big bazaar you could say that its production is also being done at all
locations. They have their own chain of men’s clothing i.e. shatranj, in food products its
tasty treat n in case of children’s wear its pink and blue. This means that material handling,
production, sales and distribution as well as finance transactions are being conducted at all
their stores. Each store requires an inventory control system, a Point of Sales system and an
accounting system (maybe also a production system).

Major Procurement is conducted at the HO, Material Receipt is done at the

Stores and Bill Passing and Bank Payments conducted at the HO. Some extent of
local procurement is also sometimes being done at the Stores. Sales are an activity
which is being done completely at the stores. Most of these activities are handled
through a POS system. However, while a POS system handles sales satisfactorily, it
is generally not geared up to manage inventory, consumption or requisitions for
material. Contrary to popular belief (even within the organization), the problem for a
Retail organization is not the POS system. The problem is integration and accurate
information flow and the issue goes beyond just the Consolidation of Sales figures,
A POS was meant for entering sales tickets and printing them, which it does without
too many problems. It was then extended to contain some inventory information at
each location. It is not capable of becoming an inventory, sales and procurement
management solution, which is what a lot of POS solutions attempted to do.

1.3.2 Retail pricing

The pricing technique used by most retailers is cost-plus pricing. This involves
adding a markup amount (or percentage) to the retailers cost. Another common technique is
suggested retail pricing. This simply involves charging the amount suggested by the
manufacturer and usually printed on the product by the manufacturer.

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 In Western countries, retail prices are often so-called psychological prices or odd
prices: a little less than a round number, e.g. $6.95. In Chinese societies, prices are generally
either a round number or sometimes a lucky number. This creates price points.

Often prices are fixed and displayed on signs or labels. Alternatively, there can be
price discrimination for a variety of reasons. The retailer charges higher prices to some
customers and lower prices to others. For example, a customer may have to pay more if the
seller determines that he or she is willing to. The retailer may conclude this due to the
customer's wealth, carelessness, lack of knowledge, or eagerness to buy. Price
discrimination can lead to a bargaining situation often called haggling — a negotiation
about the price. Economists see this as determining how the transaction's total surplus will
be divided into consumer and producer surplus. Neither party has a clear advantage, because
the threat of no sale exists, whence the surplus vanishes for both.

Retailers who are overstocked, or need to raise cash to renew stocks may resort to
"Sales", where prices are "marked down", often by advertised percentages - "50% off" for
example."Sales" are often held at fixed times of the year, for example January sales, or end-
of-season sales, or Blue Cross Sale.

1.3.3 Retail types

There are three major types of retailing. The first is the market, a physical location
where buyers and sellers converge. Usually this is done on town squares, sidewalks or
designated streets and may involve the construction of temporary structures (market stalls).
The second form is shop or store trading. Some shops use counter-service, where goods are
out of reach of buyers, and must be obtained from the seller. This type of retail is common
for small expensive items (e.g. jewelry) and controlled items like medicine and liquor. Self-
service, where goods may be handled and examined prior to purchase, has become more
common since the Twentieth Century. A third form of retail is virtual retail, where products
are ordered via mail, telephone or online without having been examined physically but
instead in a catalog, on television or on a website. Sometimes this kind of retailing replicates
existing retail types such as online shops or virtual marketplaces such as eBay or Amazon.

Buildings for retail have changed considerably over time. Market halls were
constructed in the middle Ages, which were essentially just covered marketplaces. The first

20
shops in the modern sense used to deal with just one type of article, and usually adjoined the
producer (baker, tailor, and cobbler). In the nineteenth century, in France, arcades were
invented, which were a street of several different shops, roofed over. From this there soon
developed, still in France, the notion of a large store of one ownership with many counters,
each dealing with a different kind of article was invented; it was called a department store.
One of the novelties of the department store was the introduction of fixed prices, making
haggling unnecessary and browsing more enjoyable. This is commonly considered the birth
of consumerism. In cities, these were multi-story buildings which pioneered the escalator.

In the 1920's the first supermarket opened in the United States, heralding in a new
era of retail: self-service. Around the same time the first shopping mall was constructed
which incorporated elements from both the arcade and the department store. A mall consists
of several department stores linked by arcades (many of whose shops are owned by the
same firm under different names). The design was perfected by the Austrian architect Victor
Gruen. All the stores rent their space from the mall owner. By mid-century, most of these
were being developed as single enclosed, climate-controlled, projects in suburban areas. The
mall has had a considerable impact on the retail structure and urban development in the
United States.

In addition to the enclosed malls, there are also strip malls which are 'outside' malls
(in Britain they are called retail parks. These are often connected to supermarkets or big box
stores. Also, in high traffic areas, other businesses may lease space from the supermarket or
big box store to sell their goods or services from. A recent development is a very large shop
called a superstore. These are sometimes located as stand-alone outlets, but more commonly
are part of a strip mall or retail park. Local shops can be known as brick and mortar stores in
the United States. Many shops are part of a chain: a number of similar shops with the same
name selling the same products in different locations. The shops may be owned by one
company, or there may be a franchising company that has franchising agreements with the
shop owners (see also restaurant chain).

Some shops sell second-hand goods. Often the public can also sell goods to such
shops, sometimes called 'pawn' shops. In other cases, especially in the case of a nonprofit
shop, the public donates goods to the shop to be sold (see also thrift store). In give-away
shops goods can be taken for free.

21
 There are also ‘consignment’ shops, which are where a person can place an item in a
store, and if it sells the person gives the shop owner a percentage of the sale price. The
advantage of selling an item this way is that the established shop gives the item exposure to
more potential buyers.

1.4 Customer Service Industry

What is customer service?

Customer service is not merely customer relations or how nice frontline workers are to
customers. Rather, satisfying or even delighting customers is the goal of excellent customer
service. Because customers for different types of services have different needs, customer
service strategies will differ and must be tailored to the target customer.

Why should a company or agency provide good customer service?

It improves trust and information exchange. Good customer service generates

satisfied, delighted customers. Satisfied customers lead to increased compliance, improved
information exchange, improved relationships, increased trust, and, potentially, decreased
workloads or costs.

It saves money and increases profit. In the private sector, good customer service leads to
satisfied or delighted customers, which generates customer loyalty, which produces
increased revenues and reduced costs

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What are the concepts underlying effective customer service strategies?

Profit and growth are generated by customer loyalty. Loyalty is generated by

customer satisfaction. Customer satisfaction is the goal that companies should seek and
focus on, because high customer satisfaction, as a matter of course, produces customer
loyalty and subsequently profit and growth.

Customer satisfaction is achieved by providing valued services and products, where

value is the positive difference between customers’ actual experiences and their service
delivery expectations. Productive employees also create value. Employee productivity stems
from employee loyalty, and loyalty is a product of employee satisfaction. Satisfaction is
generated by high-quality support services (people, information, and technology) and by
being empowered to provide value and resolve customer complaints.

What are the guiding principles of companies that deliver effective

customer service?

In the customer service literature, five guiding principles are adopted by public as well
as private agencies delivering excellent customer service:

1. Embrace change and persistently strive to improve (be a learning organization).

2. Continually ask the target customers what they want and then give it to them.

3. Empower, support, and reward frontline personnel.

4. Harness the power of information.

5. Establish an enabling infrastructure.

How does an organization develop and implement an effective customer

service strategy?

23
1. Identify the Target Customer.

• Begin by identifying the target customers and by considering the point of

purchase, point of service delivery or receipt, and point of consumption.

• Cluster or segment target customers based on their common behaviors,

knowing that targeting the wrong customers can have adverse effects on the
organization.

• Determine the priorities of various clusters of customers, knowing that the

capabilities of the organization are crucial in addressing these priorities.

• When possible, focus on customers with high current or future value. This
does not mean that other customers will not receive service, but it may mean
that they will receive a different level of service.

• Discourage non-target customers, those who are not likely to be satisfied by

the services, and those to whom it is expensive to provide services, which is a
necessary part of a customer focus.

2. Determine What Customers Want..

• Determine what target customers want (not just what they need right now) by
asking them in person or as part of a mail or telephone survey or by using
other mechanisms to determine what they want. Be aware that advertising,
word of mouth, and public relations influence customers’ expectations.
Meeting customers’ basic needs or expectations does not always bring high
levels of satisfaction. Exceeding expectations produces high satisfaction—
therefore, determine customers’ ideal desires.

• Determine how the target customers prioritize their "wants." Generally,

customers want convenience, quality products and services, variety or
selection, low prices, and protection or security. However, each organization
must identify what is most important to its customers.

• Weigh how important the customer-identified "wants" are to the

organization. Are the services something that the organization does, is
capable of doing, or wants to pursue?

24
 • Determine how well the organization can meet the customers’ "wants" in
comparison with competitors. The success of other companies at meeting and
exceeding customer expectations changes a customer’s frame of reference
and increases a customer’s expectations.

• Determine which "wants," if performance delivery were to be improved,

would most impact the organization’s bottom line (profit, cost, loyalty, trust,
or compliance).

3. Establish an Organizational Culture Supportive of Customer Service.

• Utilizing the information gathered, establish the company’s customer-

focused vision. The vision statement should be simple and may also identify
what the company does not want to be.

• Live up to what is promised by concurrently developing and applying

externally and internally oriented strategic service concepts that reflect the
vision. If the organization does not implement both internally and externally
oriented service strategies consistent with the vision, the organization will
have good intentions but poor customer service.

• Continually reflect on the vision and goals and the way services are delivered
to customers. Be creative about the mechanisms used to create and deliver
new services. Be willing to change existing practices to integrate
improvements.

4. Implement an Externally Oriented Strategic Service Concept.

The externally oriented strategic service concept establishes how the organization’s
service is designed, marketed, and delivered to target customers.

• Take into account the costs of providing services and ways to minimize those
costs while implementing quality control. The service concept must be
developed with the frontline worker at its center. Determine the necessary
financial, human, and technological resources necessary, as well as how the

25
 organizational structure and flow can enable the frontline worker to delight
the customer and deliver the promised vision.

• Use advertising/educational strategies to set appropriate customer

expectations.

• When planning, realize that control of information can take the place of
assets.

• Provide a feedback loop for incorporating customer comments and

complaints into the planning processes. Customer complaints are an
invaluable resource and source of information without which organizations
cannot be successful. Complaints brought to the organization are one of the
most efficient and least expensive ways to obtain information about customer
expectations of products and services. Complaints are a more direct means of
obtaining information than conducting research studies of customer
expectations, conducting transaction studies, or reviewing customer
expectations in parallel industries

• Ensure that the complaint resolution strategy supports the customer-focused

vision. Most research shows, "…if customers believe their complaints are
welcomed and responded to, they will more likely repurchase."

• One final element of an externally oriented service strategy is to regularly

measure customer satisfaction or delight in the products and services.

5. Implement an Internally Oriented Strategic Service Concept.

The internally oriented strategic service concept establishes how the organization’s
internal processes will support the customer-focused vision. The premise behind the
internally oriented strategic service concept is "…capable workers who are well
trained and fairly compensated provide better service, need less supervision, and are
much more likely to stay on the job. As a result, their customers are likely to be
more satisfied…" A study by Sears in 1989 found that "employee turnover and
customer satisfaction are directly correlated." Stores with high customer service
ratings had a 54 percent sales force turnover versus 83 percent in stores with low
customer service ratings. This is supported by examples throughout the literature.

26
• Ensure that leaders of the learning organization exhibit the company values.
Leaders must foster the creation and testing of new ideas and be unabashedly
willing to change existing practices to integrate improvements.

• Identify employee groups important to implementing the externally oriented

service concept. Frontline workers are of central importance.

• Identify the characteristics and needs of the employee group(s) and how well
those needs are met. This may include resources needed to successfully
perform the job or needs can refer to compensation, work environmental
factors, or personal needs. Understanding employee needs helps an
organization to develop successful processes as well as employee retention
policies. Learn how targeted employees perceive the proposed customer
services. An organization cannot change without the participation of its
employees.

• Focus on recruiting employees who support the customer service vision. The
costs of employing people who do not support the customer service vision
are considerable. Oftentimes, the right employees are those that fit in with the
corporate culture’s customer service vision, not necessarily those with the
most experience in the industry. Additionally, develop career paths that allow
successful customer-oriented employees to remain on the frontline.

• Focus on training and employee development throughout employment. A

study by Ryder Truck from 1988 through 1989 found that increased training
meant lower employee turnover.

• Empower frontline employees to do what it takes to satisfy the customer.

Management must support employee empowerment by clearly defining the
parameters of the empowerment, while remaining flexible within the
parameters. This will encourage creativity. Rules should be simple and few.

• Ensure that management supports employee decisions and judgment calls,

even if this means that the cost of satisfying customers initially increases. In
positions of high customer contact, quality control is not met by increased
supervision, but by the use of incentives to emphasize quality, making

27
 service providers highly visible to customers, and by building a peer group to
instill a sense of pride and teamwork.

• In addition to skills and empowerment, equip frontline personnel with the

technology, information, and internal resources to do what it takes to satisfy
the customer. The literature is replete with examples of how incorporating
the latest information technology can improve employee productivity.

• Ensure that divisions and individuals within the organization communicate.

Frontline employees and other employees need information and a support
network. A customer should never have to tell one employee what another
employee already knows.

• Develop cross-functional teams for operations and improvement tasks. First

ask those who are doing the work for suggestions to improve productivity.

• Link all employees’ compensation to (and offer rewards for) good customer
service performance. Rewards can be money, status, praise,
acknowledgement, or perks such as trips or special events.

• Finally, measure employee satisfaction regularly. Leaders in the service

industry have employed such methods as toll-free numbers, periodic
roundtable meetings, and surveys to collect employee satisfaction
information.

28
 CHAPTER-2

ANALYSIS AND INTERPRETATION

2.1 Analysis of findings

The first step was to get an overview on the working of complete store and to find
out the different products or SKU’s which are sold here.

According to the research done in the first phase out of the total area of 41000sqfts
approx of the complete store the total retail area is 26000sqfts and more than 45000 SKU’s
are been sold here.

The Complete Store is mainly divided into two major sections i.e. Big Bazaar and
Food Bazaar. There are thirty five sections in total present in the store. Out of which seven
sections belong to Food Bazaar and the remaining twenty eight sections belong to Big
Bazaar.

The list of these sections is given bellow:

29
BIG BAZAAR

1. M-Bazaar

2. Western Ladies

3. Ladies Ethnic

4. Sarees

5. Ladies Nightwear

6. Infants

7. Trial Rooms

8. Kids

9. Toys

10. Footwear

11. Loot Mart

12. Luggage

13. Depot

14. Home Linen

15. Gifts

16. Auto Accessories

17. Appliances

18. Utensil

30
 19. Plastics

20. Men Party Wear

21. Men Ethnic Wear

22. Men Formal

23. Men Casuals

24. Ladies Handbags and Sun glasses.

25. Baggage Counter

26. Crockery

27. Tulsi

28. CSD

FOOD BAZAAR

1. Hungary Kya

2. Chef Zone

3. Farm Fresh

4. Fabrikleen

5. Golden Harvest

6. Chill Station

7. Head to Toe

Analysis of sales of different departments of five weeks

31
Sales of last five weeks:

Section Net Sale week Net Sale week Net Sale week Net Sale week Net Sale week
Wise 44 45 46 47 48

Convergem 269754.5 327326 430009 506613.31 298113.5

Depot 110122.6 124110.47 95581.95 115083.1 85061.49

Food 4995389.29 7338810.44 5762740.38 5689449.68 4629710.96

GM 1314937.97 1623246.53 1386175.76 1711005.32 1061803

Home 295666 395504.4 332105.71 682260.08 302530.18

HS 153020.05 174188.75 145160.85 273488.43 142049.35

Kids 277371.64 418999.37 525643.1 605010.92 389343.37

Ladies 674576.4 819762.62 738782.88 922638.77 629352.99

Lootmart 133301 177711.11 103361.24 182144.73 112809.72

Mens 1014575.97 1230685.19 1046095.14 1473996.74 919814.96

Wellness 153209.45 188409.55 169171.98 147730.45 134514.78

32
 The convergem section of big bazaar store includes items like mobile, mobile
accessories, landline phones, new connections and recharge coupons.

The sales of week 47 is higher because at that time the 50% off dhamaka offer ws
going on.

33
 The depot section of big bazaar store consist of books which include fiction, non
fiction. Other items are magazines, office stationery, notebooks, diaries and multimedia like
cd and dvd.

This section of big bazaar is not giving returns which can justify the space given.
Here also the sales of week 47 is compatible with the sales of week 45 when the store was
only 14 days old.

34
The food section of big bazaar consist of different sub sections namely:

Hungry kya

Chef zone

Fabrikleen

Chill station

Farm fresh

Golden harvest

Head to toe

35
GM stands for general merchandise

It includes items like

Fashion Jewelry & Handbags

Footwear
Sunglasses & Watches
Home Décor
Auto Accessories
Bags
Sports Goods
Toys
Travel Accessories
Trolley And Suitcases
Cookware
Cutlery & Kitchenware
Home Décor
Household Crockery
Household Plastics
Loose Utensils
Got It
Cabinetry Hardware
Plywood
Tools
Sunglasses & Watches

36
The home section includes items like

BF- Bath Linen

BF- Bed Linen & Stuffed Articles
BF- Home Accessories
BF- Home Furnishings & Curtains
BF- Kitchen Linen
BF- Living Accessories
BF- Table Linen

37
HS includes the following categories:

Home Appliances
Home Entertainment
Kitchen Appliances
Personal Electronics
Luminaries
Utilities

38
39
40
Analysis of the survey

Question 1:What is your age?

a)15-25
b)25-35
c)35-45
d)45-55
e) above 55

41
Question 2: When you shop at this store do you come in to browse, look for a
particular item, or both equally?

a) browse
b) look for particular item

c) both

d) don’t know

42
Question 3: How knowledgeable do you find the sales
staff about the products we sell?

a) Very Knowledgeable

b) Somewhat Knowledgeable

c) Not At All Knowledgeable

d) Don't Know

43
Question 4: How helpful do you find the sales staff at this store?

a) Very Helpful

b) Somewhat helpful

c) Helpful

d) Not very helpful

e) Not at all helpful

f) Don’t know

44
Question 5: How comfortable are you shopping at this store?

a) Very Comfortable

b) Somewhat Comfortable

c) Somewhat Uncomfortable

d) Not at all Comfortable

e) Don’t know

45
 Question 6: How competitive do you find the prices at this
store?

a) Very competitive

b) Somewhat competitive

c) Not very competitive

d) Not at all competitive

e) Don’t know

46
Question 7: This store is clean and well organized.

a) Strongly disagree

b) Disagree

c) Undecided

d) Agree

e) Strongly agree

47
Question 8: This store is well stocked.

a) Strongly disagree

b) Disagree

c) Undecided

d) Agree

e) Strongly agree

48
Question 9: The sales staff at this store is friendly and
helpful.

a) Strongly disagree

b) Disagree

c) Undecided

d) Agree

e) Strongly agree

49
Question 10: At the cash counters you do not have to wait long
for your turn

a) Strongly disagree

b) Disagree

c) Undecided

d) Agree

e) Strongly agree

50
Question 11: You are easily able to reach to the section you want

a) Strongly agree

b) Strongly disagree

c) Disagree

d) Undecided

e) Agree

51
Question 12: The staff at the customer service desk is courteous
and helpful

a) Strongly agree

b) Strongly disagree

c) Disagree

d) Undecided

e) Agree

52
Data Interpretation

• The analysis about the sales pattern shows that whenever there are promotional
offers the sales is high.

• Some of the departments like HS, depot, sports accessories do not justify the space
allotted to them.

• The sale on weekends is almost three times the sales of weekdays, this high
fluctuation of sales needs to be looked upon.

• The Wednesday being promoted as hafte ka sabse sasta bazaar is not upto mark.

• The offers given are ambiguous, people come with lot of expectation and when they
actually see the offer they are turned off.

• The staff needs more training.

• A common problem faced by customers was, the store is very large in size with over
33 sections, and there must be a map like thing which can help customers to reach to
the section they want.

53
 CHAPTER- 3

SUGGESTIONS
Suggestions

 Company should try to improve the production procedure and try to update the
techniques of stock take etc.
 Company should try to give more space to warehouse….as per now the store has
only one warehouse that to with food bazaar, leaving no storage space for big
bazaar.
Due to this sometimes sections like home linen are seen overflowing with goods
which give it an disorderly look and also lack to justify the returns.
 Company should try to generate trust among its suppliers and customers and also
start policies and schemes to retain customers…as per now the store does not have
such schemes.
 Lack of space at cash counters makes it very difficult to manage ,especially at
weekends
so better space and personnel management is required.
 The Wednesday being promoted as hafte ka sabse sasta bazaar is not upto mark.

 The offers given and promoted should be more clear and well defined.

 The staff needs more training.

 A common problem faced by customers was, the store is very large in size with over
33 sections, and there must be a map like thing which can help customers to reach to
the section they want.

 So a easy to reach guide map is suggested. We made a map of big bazaar, which
will be put up on the trolleys, this map will help in easy navigation through the store.

 The map is being shown on the next page.

 This map was named easy to reach guide.

54
 K
PINK

ADDITIONAL PROJECTS UNDERTAKEN

55
During our summer Internship at Big Bazaar (Pantaloon Retail India Ltd) a venture of
Future Group, several short term projects were given and some ideas were turned into
reality. During this tenure of two months as the main project work was going on, some
additional responsibilities were given like Direct Customer Interaction through Gift
Counters.

• Big Bazaar organized a three days special offer in which the complete responsibility
of Gift delivery and customer handling was given the average footfall per day was
15000 the dates of the event was May 18 to 20, 2007.

• A similar event was organized in the month of June where similar responsibility was
given.

• Helped the management during the audit of Mr. Kishore Biyani (CEO – Future
Group).

56
 REFERENCES

BOOKS:

Marketing Research by Mishra

Research Methodology by C.R Kothari

Retail Guide

MEGAZINES:

Business world

Retail world

WEBSITES:

http://www.wikipedia.com/retail

http://www.fao.org/docrep

http://www.yliopistojentt.fi/FAST/FIN/RESEARCH/sources.html

57
 ANNEXU
QUESTIONNAIRE

Question 1: What is your age?

a) 15-25
b) 25-35
c) 35-45
d) 45-55
e) Above 55

Question 2: When you shop at this store do you come in to browse, look for a
particular item, or both equally?

a) Browse
b) look for particular item

c) both

d) don’t know

Question 3: How knowledgeable do you find the sales staff

about the products we sell?

a) Very Knowledgeable

b) Somewhat Knowledgeable

c) Not At All Knowledgeable

d) Don't Know

58
Question 4: How helpful do you find the sales staff at this store?

a) Very Helpful

b) Somewhat helpful

c) Helpful

d) Not very helpful

e) Not at all helpful

f) Don’t know

Question 5: How comfortable are you shopping at this store?

a) Very Comfortable

b) Somewhat Comfortable

c) Somewhat Uncomfortable

d) Not at all Comfortable

e) Don’t know

Question 6: How competitive do you find the prices at this

store?

a) Very competitive

b) Somewhat competitive

59
 c) Not very competitive

d) Not at all competitive

e) Don’t know

Question 7: This store is clean and well organized.

a) Strongly disagree

b) Disagree

c) Undecided

d) Agree

e) Strongly agree

Question 8: This store is well stocked.

a) Strongly disagree

b) Disagree

c) Undecided

d) Agree

e) Strongly agree

Question 9: The sales staff at this store is friendly and

helpful.

a) Strongly disagree

b) Disagree

c) Undecided

d) Agree

60
 e) Strongly agree

Question 10: At the cash counters you do not have to wait long
for your turn

a) Strongly disagree

b) Disagree

c) Undecided

d) Agree

e) Strongly agree

Question 11: You are easily able to reach to the section you want

a) Strongly agree

b) Strongly disagree

c) Disagree

d) Undecided

e) Agree

Question 12: The staff at the customer service desk is courteous

and helpful

a) Strongly agree

b) Strongly disagree

c) Disagree

d) Undecided

e) Agree

61
TOATAL SALE OF DIFFERENT SECTIONS IN FIVE WEEKS

Data
Section Wise Category Qty Net Sale
Convergm CM- Mobile 516 2891276.31
CM- Mobile Enhancement 119 25600
CM- New Connections 13409 32715
CM- Landline 59 52857
Convergm Total 14103 3002448.31
Depot CT- Sis Bms 508 6132.81
DP- Books 3925 240055.16
DP- Gifts 2 234
DP- Multimedia 3377 294560.76
DP- Stationery 18457 542835.18
Depot Total 26269 1083817.91
Food FB- Additives & Preservatives 36372 1745064.29
FB- Baby Foods 1030 130507.12
FB- Bakery 4919 102816.95
FB- Basic Staples Loose 217021.73 7986838.47
FB- Cooking Medium 37783 3601578.03
FB- Dairy 3444.79 278001.56
FB- Dairy Products 34772.3 1890829.64
FB- Drinks & Beverages 149282.98 6745665.81
FB- Fabric Care 38268 2357395.89
FB- Frozen Foods 267 14540.49
FB- Fruits & Vegetables 126659.84 2638519
FB- Health Foods 9195 873282.53
FB- Home Care 112058 4427646.21
FB- Kitchen 2049.7 331212.74
FB- Personal Care 144041 9097676.15
FB- Ready To Cook 90012 2846214.27
FB- Ready To Eat 260092.18 5729664.75
Food Total 1267268.52 50797453.9
GM BF- Fashion Jewelry & Handbags 7292 382967.17
BF- Footwear 9660 2145102.91
BF- Sunglasses & Watches 2469 266380.64
CT- Home Décor 45 2433.72
GF- Auto Accessories 1860 330629.1
GF- Bags 1694 786007.14
GF- New Business- Others 18 5492.5
GF- Sports Goods 1999 165349.15
GF- Toys 11787 1668656.09
GF- Travel Accessories 943 90768.36
GF- Trolley And Suitcases 547 983704.93
GH- Cookware 2203 897518.96
GH- Cutlery & Kitchenware 11861 1064841.32
GH- Home Décor 7723 501141.22
GH- Household Crockery 9393 965384.24
GH- Household Plastics 38246 2409843.07
GH- Loose Utensils 10914 607965.29
GH- Sis Crockery -1 -330

62
 GI- Got It 1248 84013.44
HI- Cabinetry Hardware 13 182.1
HI- Door & Window Fitting 66 6824.26
HI- Plywood 3 123
HI- Tools 132 6519.3
BS- Sunglasses & Watches 1 190.8
GM Total 120116 13371708.71
Home BF- Bath Linen 8879 706322.34
BF- Bed Linen & Stuffed Articles 6017 1482366.85
BF- Home Accessories 682 77836.3
BF- Home Furnishings & Curtains 238 95177.01
BF- Kitchen Linen 6126 267732.84
BF- Living Accessories 4766 566889.65
BF- Table Linen 792 68548.5
Home Total 27500 3264873.49
HS EE- Cd & E Accessories 15 10894.99
EE- Home Appliances 360 262433.59
EE- Home Entertainment 8 7888
EE- Kitchen Appliances 732 1077077.86
EE- Personal Electronics 40 27113.81
HI- Luminaires 819 89896.76
HI- Utilities 145 11508.97
HS Total 2119 1486813.98
Kids BF- Boys Wear 9362 1413352.5
BF- Girls Wear 6106 1135995.86
BF- Infant 11743 1098863.31
BF- Kids Acc 3977 313426.56
PF- Girls Wear 2 467.07
Kids Total 31190 3962105.3
Ladies BF- Ladies Acc 8219 501467.25
BF- Ladies Ethnic 13941 4456347.68
BF- Ladies Nightwear 4529 757366.45
BF- Ladies Seasonal 74 10470.69
BF- Ladies Sportswear 815 154948.49
BF- Ladies Western Casuals 4433 1128654.43
BF- Ladies Western Formals 563 154510.1
BF- Ladies Western Party 55 19705.94
Ladies Total 32629 7183471.03
Lootmart Boys Wear 1062 193784.28
Girls Wear 693 132998.85
Kids Accessories 1696 31868.39
Ladies Accessories 548 9889.38
Ladies Jeans Wear 349 63424.36
Ladies Western Casuals 533 122881.82
Ladies Western Formals 22 9430.47
Mens Accessories 1460 90989.81
Mens Casuals 305 84898.66
Mens Formal 454 167362.92
Mens Jeans Wear 1620 344510.44
Mens Sportswear 108 14082.16
Infant Wear 43 1779.87
Lootmart Total 8893 1267901.41
Mens BF- Fabrics 2478 384306.02
BF- Mens Acc 22386 1664954.41

63
 BF- Mens Casuals 4491 1647446.28
BF- Mens Formal 6448 2030970.45
BF- Mens Jeanswear 12935 2948741.27
BF- Mens Nightwear 3337 550130
BF- Mens Seasonal 117 37160.39
BF- Mens Sportswear 3178 696191.66
BF- Ocassion Wear 3106 999892.52
PF- Mens Sportswear 15 3937
PF- Fabrics 3 878
Mens Total 58494 10964608
Wellness CC- Allopathic Medicine 399 18193.12
CC- Alternative Medicine 107 10137.65
CC- Ayurveda 2264 174246.96
CC- Health Supplements 2227 184093.74
CC- Homeopathy 178 10880.78
CC- Medical Care 3086 248866.17
SS- Colour Cosmetics 2204 244365.25
SS- Lifestyle Fragrances 1536 310671.72
SS- Speciality Hair Care 275 38580.56
SS- Speciality Skin Care 1515 212357.6
Wellness Total 13791 1452393.55
#N/A
Grand Total 1602372.52 97837595.59

64