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A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
A project report on  on increase in average bill value by ten percent
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A project report on on increase in average bill value by ten percent

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A project report on on increase in average bill value by ten percent

A project report on on increase in average bill value by ten percent

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  • 1. A Study on Increase in Average Bill Value by Ten Percent A Project Proposal on “A Study on Increase in Average Bill Value by Ten Percent” At Big Bazaar, 1 Babasabpatilfreepptmba.com
  • 2. A Study on Increase in Average Bill Value by Ten Percent Industry Overview 2 Babasabpatilfreepptmba.com
  • 3. A Study on Increase in Average Bill Value by Ten Percent Retail is India’s largest industry, accounting for over 10 per cent ofthe country’s GDP and around eight per cent of the employment. Retailindustry in India is at the crossroads. It has emerged as one of the mostdynamic and fast paced industries with several players entering themarket. But because of the heavy initial investments required, break evenis difficult to achieve and many of these players have not tasted successso far. However, the future is promising; the market is growing,government policies are becoming more favorable and emergingtechnologies are facilitating operations. Industry Evolution • Traditionally retailing in India can be traced to o The emergence of the neighborhood ‘Kirana’ stores catering to the convenience of the consumers o Era of government support for rural retail: Indigenous franchise model of store chains run by Khadi & Village Industries Commission • 1980s experienced slow change as India began to open up economy. • Textiles sector with companies like Bombay Dyeing, Raymonds, S Kumars and Grasim first saw the emergence of retail chains • Later Titan successfully created an organized retailing concept and established a series of showrooms for its premium watches • The latter half of the 1990s saw a fresh wave of entrants with a shift from Manufactures to Pure Retailers. 3 Babasabpatilfreepptmba.com
  • 4. A Study on Increase in Average Bill Value by Ten Percent • For e.g. Food World, Subhiksha and Nilgiris in food and FMCG; Planet M and Music World in music; Crossword and Fountainhead in books. • Post 1995 onwards saw an emergence of shopping centers, o mainly in urban areas, with facilities like car parking o targeted to provide a complete destination experience for all segments of society • Emergence of hyper and super markets trying to provide customer with 3 V’s - Value, Variety and Volume • Expanding target consumer segment: The Sachet revolution - example of reaching to the bottom of the pyramid. • At year end of 2000 the size of the Indian organized retail industry is estimated at Rs. 13,000 croreThe whole concept of shopping has altered in terms of format andconsumer buying behavior, ushering in a revolution in shopping in India.Modern retail has entered India as seen in sprawling shopping centres,multi-storeyed malls and huge complexes offer shopping, entertainmentand food all under one roof. The Indian retailing sector is at an inflexionpoint where the growth of organized retailing and growth in theconsumption by the Indian population is going to take a higher growthtrajectory. The Indian population is witnessing a significant change in itsdemographics. A large young working population with median age of 24years, nuclear families in urban areas, along with increasing working-women population and emerging opportunities in the services sector aregoing to be the key growth drivers of the organized retail sector in India. 4 Babasabpatilfreepptmba.com
  • 5. A Study on Increase in Average Bill Value by Ten PercentSome Key Facts:  Retail is India’s largest industry, accounting for over 10 per cent of the country’s GDP and around eight per cent of the employment  The market size of Indian retail industry is about US $312 billion  Organised retailing comprises only 2.8 per cent of the total retailing market and is estimated at around US$ 8.7 billion  The organised retail sector is expected to grow to US $ 70 billion by 2010 5 Babasabpatilfreepptmba.com
  • 6. A Study on Increase in Average Bill Value by Ten PercentRecent Trends  Retailing in India is witnessing a huge revamping exercise as can be seen in the graph  India is rated the fifth most attractive emerging retail market: a potential goldmine.  Estimated to be US$ 200 billion, of which organized retailing (i.e. modern trade) makes up 3 percent or US$ 6.4 billion  As per a report by KPMG the annual growth of department stores is estimated at 24%  Ranked second in a Global Retail Development Index of 30 developing countries drawn up by AT Kearney. 6 Babasabpatilfreepptmba.com
  • 7. Traditionally three factors Traditionally three factors Recent changes: Recent changes: have plagued the retail industry: industry: Experimentation with formats: Retailing Experimentation with formats: Retailing Unorganized : Vast majority in India is still evolving and the sector is in India is still evolving and the sector is 7 of the twelve million stores of the twelve million stores witnessing a series of experiments across the are small "father and son" are small "father and son" country with new formats being tested out. country with new formats being tested out.A Study on Increase in Average Bill Value by Ten Percent outlets outlets Ex. Quasi-mall, sub-urban discount stores, Ex. Quasi-mall, sub-urban discount stores, Cash and carry etc. Cash and carry etc. Fragmented : Mostly small Fragmented : Mostly small Store design : Biggest challenge for Store design : Biggest challenge for individually individually owned owned organised retailing to create a “customer- organised retailing to create a “customer- businesses, average size of businesses, average size of pull” environment that increases the amount pull” environment that increases the amount outlet equals 50 s.q. ft. outlet equals 50 s.q. ft. of impulse shopping. Research shows that of impulse shopping. Research shows that Though India Though India has the highest the chances of senses dictating sales are upto the chances of senses dictating sales are upto number of retail outlets per number of retail outlets per 10-15%. Retail 10-15%. Retail chains like MusicWorld, retail Babasabpatilfreepptmba.com capita in the world, the retail Baristas, Piramyd and Globus are laying Baristas, Piramyd and Globus are laying space per capita at 2 s.q. ft per space per capita at 2 s.q. ft per heavily in store major emphasis & investing heavily in store person is amongst the lowest. person is amongst the lowest. design. design. Emergence of discount stores: They are Emergence of discount stores: They are Rural bias: Nearly two thirds Rural bias: Nearly two thirds expected to spearhead the organised retailing expected to spearhead the organised retailing of the stores are located in of the stores are located in revolution. Stores trying to emulate the revolution. Stores trying to emulate the rural areas. Rural retail rural areas. Rural retail model of Wal-Mart. Ex. Big Bazaar, model of Wal-Mart. Ex. Big Bazaar, industry has typically two industry has typically two Bombay Bazaar, RPGs. Bombay Bazaar, RPGs. forms: "Haats" and “Melas". forms: "Haats" and “Melas". Unorganized Unorganized retailing retailing is is getting Haats are the weekly organized: To meet the challenges of organized: To meet the challenges of markets serve groups of 10- markets :: serve groups of 10- organized retailing such as large cineplexes, 50 villages and sell day-to- 50 villages and sell day-to- and malls, which are backed by the and malls, which are backed by the day necessities. Melas are day necessities. Melas are corporate house such as Ansals and PVR‘ corporate house such as Ansals and PVR‘ larger in size and more larger in size and more the unorganized sector is getting organized. the unorganized sector is getting organized. sophisticated in terms of the sophisticated in terms of the 25 stores in Delhi under the banner of 25 stores in Delhi under the banner of goods sold (like TVs) goods sold (like TVs) Provision mart are joining hands to combine Provision mart are joining hands to combine monthly buying. Bombay Bazaar and monthly buying. Bombay Bazaar and Efoodmart formed which are aggregations of Efoodmart formed which are aggregations of Kiranas. Kiranas.
  • 8. A Study on Increase in Average Bill Value by Ten PercentConsumer TrendOver the years, the increasing literacy in the Country and the exposure todeveloped nations via satellite television or by way of the overseas workexperiences, the consumer awareness has increased on the quality and theprice of the products/services that is expected. Today more and moreconsumers are vocal on the quality of the products/services that they expectfrom the market. This awareness has made the consumer seek more andmore reliable sources for purchases and hence the logical shift to purchasesfrom the organized retail chains that has a corporate background and wherethe accountability is more pronounced. The consumer also seeks to purchasefrom a place where his/her feedback is more valued.India is currently having the largest young population in the world and 54per cent of India’s population is below 25 years of age and 80 per cent arebelow 45 years.As per India’s Marketing Whitebook by Businessworld, India has around192 million households. Of these only a little over six million are ‘affluent’ –that is, with household income in excess of INR215, 000. Another 75million households are in the category of ‘Well off’ immediately below theaffluent, earning between INR 45,000 and INR215,000.This is a sizable proportion which offers excellent opportunity fororganized retailers to serve 8 Babasabpatilfreepptmba.com
  • 9. A Study on Increase in Average Bill Value by Ten PercentSocial Trends:Social trends of a country have impact on the scheme of growth of foodretailing in a country. India is country that is vast geographically and diverseculturally. This has taken its toll on food retailing with retailers having to adaptto the local cultures and palates of the area in which they have established orplan to establish. This is a major reason for many or most retailing chainsrestricting their operations to a certain part of the country. But the trends noware slowly moving towards cultural integration where people of all states anddiametrically opposite cultures tend to try out foods and materials of otherstates and communities. This movement towards social integration wouldmake it very feasible in the near future for retailing chains and erstwhile localchains to spread across the country.Increased income levels and more women willing to make use of theireducation by joining work has increasingly affected the shopping pattern thatis moving towards fulfilling the need of convenience shopping in the form ofSupermarkets (now graduating to Hyper format) home deliveries. Indianconsumer is quality and price conscious and this awareness would drive theretailers to rework their supply chain relationships.A recent analysis shows that countries go through a distinct foodconsumption evolutionary pattern. In the first stage the focus is on obtainingbasic dietary inputs, the second stage focuses on improving and buildingbasic foods, before moving to the third stage of adding premium food to thediet. Most of urban India has already moved to the third stage and it is a greatavenue for food retailers, if they could slowly introduce the rest of India to it.The future would witness creation of specific models/formats one for theupwardly mobile urbanite and the other for the rural markets. Also since the 9 Babasabpatilfreepptmba.com
  • 10. A Study on Increase in Average Bill Value by Ten Percenttaste habits change from place to place in India, there would emerge aleadingRetail management skillsIt is a fact that the retailing industry is in its starting phase in our country. Thebenefits of organised retailing will only be felt once an equitable scale isachieved. This to a large extent depends on the store size, the walkthroughs,bills per customer per year, average bill size and the revenue earned per sq.ft. But besides resources and bottomline, a variety of other aspects need tobe in place for tasting success. The need for qualified and trained manpoweris of utmost importance. The need for specialised skills is increasingly felt inthe areas of: • Strategic management - strategising, targeting and positioning, marketing and site selection, among others • Merchandise management - Vendor selection, inventory management, pricing and so on • Store management - Layout, display, customer relationship, inventory management, etc. • Administrative Management - Human resources, finance, marketing and so on 10 Babasabpatilfreepptmba.com
  • 11. A Study on Increase in Average Bill Value by Ten Percent Retailing formats in India • Malls: The largest form of organized retailing today. Located mainly in metrocities, in proximity to urban outskirts. Ranges from 60,000 sq ft to 7,00,000sq ft and above. They lend an ideal shopping experience with anamalgamation of product, service and entertainment, all under a commonroof. Examples include Shoppers Stop, Piramyd, Pantaloon. • Specialty Stores: Chains such as the Bangalore based Kids Kemp, the Mumbai booksretailer Crossword, RPGs Music World and the Times Groups musicchain Planet M, are focusing on specific market segments and haveestablished themselves strongly in their sectors. • Discount Stores: As the name suggests, discount stores or factory outlets, offerdiscounts on the MRP through selling in bulk reaching economies of scaleor excess stock left over at the season. The product category can rangefrom a variety of perishable/ non perishable goods • Department Stores: Large stores ranging from 20000-50000 sq. ft, catering to a variety ofconsumer needs. Further classified into localized departments such asclothing, toys, home, groceries etc. • Department Stores: Departmental Stores are expected to take over the apparel businessfrom exclusive brand showrooms. Among these, the biggest success is KRahejas Shoppers Stop, which started in Mumbai and now has more thanseven large stores (over 30,000 sq. ft) across India and even has its ownin store brand for clothes called Stop!. 11 Babasabpatilfreepptmba.com
  • 12. A Study on Increase in Average Bill Value by Ten Percent • Hypermarts/Supermarkets: Large self service outlets, catering to varied shopper needs are termedas Supermarkets. These are located in or near residential high streets.These stores today contribute to 30% of all food & grocery organized retailsales. Super Markets can further be classified in to mini supermarketstypically 1,000 sq ft to 2,000 sq ft and large supermarkets ranging from of3,500 sq ft to 5,000 sq ft. having a strong focus on food & grocery andpersonal sales. • Convenience Stores: These are relatively small stores 400-2,000 sq. feet located nearresidential areas. They stock a limited range of high-turnover convenienceproducts and are usually open for extended periods during the day, sevendays a week. Prices are slightly higher due to the convenience premium. • MBO’s : Multi Brand outlets, also known as Category Killers, offer severalbrands across a single product category. These usually do well in busymarket places and Metros. 12 Babasabpatilfreepptmba.com
  • 13. A Study on Increase in Average Bill Value by Ten Percent Major Retailers  India’s top retailers are largely lifestyle, clothing and apparel stores  This is followed by grocery stores  Following the past trends and business models in the west retail giants such as Pantaloon, Shoppers’ Stop and Lifestyle are likely to target metros and small cities almost doubling their current number of stores  These Walmart wannabes have the economy of scale to be low – medium cost retailers pocketing narrow margin 13 Babasabpatilfreepptmba.com
  • 14. A Study on Increase in Average Bill Value by Ten Percent Company Profile About Future Group Future Group is the country’s leading business group that caters to the entire Indian consumption space. It operates through six verticals:  Future Retail : encompassing all lines of retail business  Future Capital : financial products and services 14 Babasabpatilfreepptmba.com
  • 15. A Study on Increase in Average Bill Value by Ten Percent  Future Brands : all brands owned or managed by group companies  Future Space : management of retail real estate  Future Logistics : management of supply chain and distribution  Future Media: development and management of retail media spaces The group’s flagship company, Pantaloon Retail (India) Limited operates over 7 million square feet through 1000 stores in 52 cities. Future Group companies include, Indus League Clothing, that owns and retails brands like Indigo Nation and Scullers and Galaxy Entertainment that manages Sports Bar, Brew Bar and Bowling Co. Future Capital Holdings, the group’s financial arm, focusses 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’s joint venture partners include..  Italian insurance major Generali  French retailer ETAM group  US-based stationary products retailer Staples  UK-based Lee Cooper 15 Babasabpatilfreepptmba.com
  • 16. A Study on Increase in Average Bill Value by Ten Percent  India-based Talwalkar’s, Blue Foods and Liberty Shoes. 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. Major Milestones 1987 Company incorporated as Manz Wear Private Limited. Launch of Pantaloons trouser, India’s first formal trouser brand. 1991 16 Babasabpatilfreepptmba.com
  • 17. A Study on Increase in Average Bill Value by Ten Percent Launch of BARE, the Indian jeans brand. 1992 Initial public offer (IPO) was made in the month of May. 1994 The Pantaloon Shoppe – exclusive menswear store in franchisee format launched across the nation. The company starts the distribution of branded garments through multi-brand retail outlets across the nation. 1995 John Miller –Formal shirt brand launched. 1997 Pantaloons – India’s family store launched in Kolkata. 2001 Big Bazaar, ‘Is se sasta aur accha kahi nahin’ - India’s first hypermarket chain launched. 2002 Food Bazaar, the supermarket chain is launched. 17 Babasabpatilfreepptmba.com
  • 18. A Study on Increase in Average Bill Value by Ten Percent 2004 Central – ‘Shop, Eat, Celebrate In The Heart Of Our City’ - India’s first seamless mall is launched in Bangalore. 2005 Fashion Station - the popular fashion chain is launched aLL – ‘a little larger’ - exclusive stores for plus-size individuals is launched 2006 Future Capital Holdings, the company’s financial arm launches real estate funds Kshitij and Horizon and private equity fund Indivision. Plans forays into insurance and consumer credit. Multiple retail formats including Collection i, Furniture Bazaar, Shoe Factory, EZone, Depot and futurebazaar.com are launched across the nation. Group enters into joint venture agreements with ETAM Group and Generali. Pantaloon Retail (India) Limited Pantaloon Retail (India) Limited is India’s leading retailer. The company operates across multiple segments including –Food, Books & Music, Fashion, Telecom & IT, Home & Electronics, General Merchandise, Leisure & Entertainment, Wellness, Health & Beauty and E-tailing and that helps the company cater to every Indian customer. 18 Babasabpatilfreepptmba.com
  • 19. A Study on Increase in Average Bill Value by Ten Percent Some of the leading formats include….  Pantaloons : department store  Central : seamless malls  Blue Sky : fashion accessories  aLL : fashion apparel for plus-size individuals  Big Bazaar : hypermarket  Food Bazaar : supermarket  Fashion Station : popular fashion  Collection i : home furnishings  E-Zone : consumer electronics  Depot : books and music  Shoe Factory : footwear Headquartered out of Mumbai, the company operates more than 331 outlets covering 5 million square feet of retail space, spread across 40 cities and has over 25,000 employees. Fact sheet Company Name: Pantaloon Retail (India) Limited Corporate Headquarters: 19 Babasabpatilfreepptmba.com
  • 20. A Study on Increase in Average Bill Value by Ten Percent Knowledge House, Shyam Nagar, Jogeshwari (East), Mumbai 400 060. India Ph: +91 22 6644 2200 Website: www.pantaloon.com Background: Founded in 1987 as a garment manufacturing company, the company forayed into modern retail in August 1997 with the launch of its first department store, Pantaloons in Kolkata. Listing: Pantaloon Retail is a listed company on the Bombay Stock Exchange (BSE, Scrip Code: 523574) and National Stock Exchange(NSE, Symbol: PANTALOONR). Employee Strength: 25,000 Big BazaarBig Bazaar, is the chain of retail stores of the big banner PantaloonRetail (India) Ltd., which in turn is a segment of the Kishore Biyani,regulated Future Group of Companies. 20 Babasabpatilfreepptmba.com
  • 21. A Study on Increase in Average Bill Value by Ten PercentMoreover the customer friendly ambiance and the organized retailing ofproducts also make Big Bazaar one of the successful retail companies inIndia.Big Bazaar: OverviewBig Bazaar, a part of the Pantaloon Group, is ahypermarket offering a huge array of goods ofgood quality for all at affordable prices.Big Bazaar with over 50 outlets in different partsof India, is present in both the metro cities as wellas in the small towns.Big Bazaar has no doubt made a big name in theretail industry of india, moreover shopping here isfurther made a memorable experience with thevaried rates of discounts on products as well asdiscount vouchers available in a variety of amounts, like INR 2000, INR3000, INR 4000, INR 5000 and INR 10000 on all Big Bazaar products andaccessories.The variety of product range in Big Bazaar: 21 Babasabpatilfreepptmba.com
  • 22. A Study on Increase in Average Bill Value by Ten PercentThis large format store comprise of almost everything required by peoplefrom different income groups.It varies from clothing and accessories for all genders like men, women and children, playthings, stationary and toys, footwear, plastics, home utility products, cosmetics, crockery, home textiles, luggage gift items, other novelties, and also food products and grocery.The added advantage for the customers shopping in Big Bazaar isthat there are all time discounts and promotional offers going on inthe Big Bazaar on its salable products.The significant features of Big Bazaar:Shopping in the Big Bazaar is a great experience as one can find almosteverything under the same roof. It has different features which caters allthe needs of the shoppers. Some of the significant features of Big Bazaarare: 22 Babasabpatilfreepptmba.com
  • 23. A Study on Increase in Average Bill Value by Ten Percent • The Food Bazaar or the grocery store with the department selling fruits and vegetables • There is a zone specially meant for the amusement of the kids • Furniture Bazaar or a large section dealing with furnitures • Electronics Bazaar or the section concerned with electronic goods and cellular phones • FutureBazaar.com or the online shopping portal which makes shopping easier as one can shop many products of Big Bazaar at the same price from home • Well regulated customer care telecalling services Food Bazaar Ab Ghar Chalaana Kitna Aasaan Food Bazaar invites you for a shopping experience, unique by its ambience. At Food Bazaar you will find a hitherto unseen blend of a typical Indian Bazaar and International supermarket atmosphere. 23 Babasabpatilfreepptmba.com
  • 24. A Study on Increase in Average Bill Value by Ten Percent Flagged off in April’02, Food Bazaar is a chain of large supermarkets with a difference, where the best of Western and Indian values have been put together to ensure your satisfaction and comfort while shopping. The western values of convenience, cleanliness and hygiene are offered through pre packed commodities and the Indian values of "See- Touch-Feel" are offered through the “bazaar-like” atmosphere created by displaying staples out in the open, all at very economical and affordable prices without any compromise on quality. The best of everything offered with a seal of freshness and purity will definitely make your final buying decision a lot easier. 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. 24 Babasabpatilfreepptmba.com
  • 25. A Study on Increase in Average Bill Value by Ten Percent 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 expereince. Electronics Bazaar Currently present within Big Bazaar stores, Electronics Bazaar offers the best deals in branded electronic goods and appliances. Furniture Bazaar Furniture Bazaar offers an entire range of Home Furniture needs that are utilitarian and affordable in their pricing. Depot Books, Music & Gifts 25 Babasabpatilfreepptmba.com
  • 26. A Study on Increase in Average Bill Value by Ten Percent Depot is one of the youngest brands from the Pantaloon stable and is a tribute to our freedom of thought, speech and expression shared in a novel fashion with customers as books, multimedia, toys, stationary and gifts. Depot is all about freedom and democracy and this is reflected in the relaxed manner in which products are displayed, the affordable pricing, the strong local flavour, the young, lively and interactive store experience, that are all designed in a way to liberate these categories and transform the way they are bought, sold and perceived in India. At Depot, book lovers are offered a range of books that meet the needs and preference of every age group. From fiction to general reference, management and children’s material, you will find it all at Depot. Music buffs are invited to select from a wide category of music CDs and cassettes spanning all genres like Rock, Pop, Hindi, Indipop and more. For the movie enthusiasts out there, we have a great selection of home videos (VCD and DVD) and multimedia (CD-ROMs). Depot Store also has an attractive selection of gifts (candles, mugs, photo frames, themed packs) toys and stationery (office, children’s and fancy stationery) ensuring this is a one-stop shop for everyone and anyone who plans to gift their loved ones. At Depot we endeavour to give our customers an Indian experience where we celebrate and give due importance to regional literature and music. In this regard, Depot aims to become a strong member of the local communities it operates in through a variety of events, engagements and social initiatives and we will be happy to keep you 26 Babasabpatilfreepptmba.com
  • 27. A Study on Increase in Average Bill Value by Ten Percent posted on these activities from time to time. Depot is a lively, colourful, vibrant and happy retail space, which we hope you will visit in the near future. Inviting Reading Corners where you can be comfortable with a book of your choice and an Interactive Zone where you get to try out new board games, read new books, check out new toys and browse at the Interactive kiosk, await you at Depot. Depot also has its line of private label products. It is our guarantee that you will not find better deals than what we are offering so check out what is on offer today! M Bazaar Latest Technology, Lowest Price. M Bazaar is the first and one of its kind concept offering comprehensive solutions to 27 Babasabpatilfreepptmba.com
  • 28. A Study on Increase in Average Bill Value by Ten Percent satisfy the knowledge, entertainment and communication aspirations of Individuals. A value seekers haven, M Bazaar offers latest technologies at fantastic prices. The product basket offers everything from airtime recharges, mobile accessories, swanky brands in mobile phones, landline instruments, blue tooth accessories, fashionable mobile trinkets and much more. Present as a part of Big Bazaars, these retail points are unique in character by their warm presence combined with the cutting edge branding. The counters are specially designed to give the customers an easy access to all the products thus making it a hot spot for all the tech enthusiasts. General Merchandise -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. 28 Babasabpatilfreepptmba.com
  • 29. A Study on Increase in Average Bill Value by Ten Percent 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  Plastic Utensils and Crockery  Head to Toe  Appliances Navaras Jewellery for all emotions and occasions Navaras, a fine 22 carat pure gold and diamond jewellery brand, retailed from Big Bazaar stores, offers nine unique rational benefits to the consumer namely – BIS Hallmark jewellery, free cleaning and polishing, insurance cover against theft and 29 Babasabpatilfreepptmba.com
  • 30. A Study on Increase in Average Bill Value by Ten Percent burglary, transparent making charges, a buyback if unsatisfied, 0% weight loss if jewellery is exchanged, diamond certification, free karatmeter check and a range of designs. The Navaras product range and store look is in keeping with the needs of contemporary women. It is emotions and occasions that lead women to buy jewellery, they buy jewellery to express emotions like pyaar (love), during occasions like tyohaar (festivals) and as uphaar (gifts). Navaras jewellery has been conceptualised with this thought - jewellery for all emotions and occasions. Future Group has revolutionized the Indian jewellery market with the launch of Navaras, which offers branded, pure and design differentiated jewellery at competitive prices in a hypermarket set-up in line with the evolving buying behaviour of consumers. The rationale behind this is that with higher disposable incomes, for consumers today gold and other jewellery purchases too have become impulsive buying activities. Hence, Navaras within Big Bazaar. But, certain criteria still remain constant like carat, price, trust and purity – all strong deciding factors while purchasing jewellery. Thus, the format’s brand positioning and offerings have been tailored to suit the modern day consumer. Navaras offers a complete fine jewellery shopping experience, despite being within the confines of a hyper market. This is ensured by the segregation of the Navaras section via 30 Babasabpatilfreepptmba.com
  • 31. A Study on Increase in Average Bill Value by Ten Percent glazed glass walls to provide a comfortable and secluded ambience. The sit-down arrangement, as opposed to stand alone counters, further ensures that shoppers try out the Navaras products in a peaceful and comfortable environment before they make their final shopping decision. Pantaloon Retail (India) Ltd. opened a Big Bazaar outlet in Hubli on July 28 2007, Saturday. This is the ninth outlet in the State and 62nd outlet. Located near Akshay Centre, Gokul Road, it was the first and biggest hypermarket store in the city. With 50,000 sq. ft. of shopping area, the Big Bazaar in Hubli is one of the largest stores of the company. The company hoped to do a business of Rs. 50 crore to Rs. 75 crore in the first year of the Hubli outlet. 31 Babasabpatilfreepptmba.com
  • 32. A Study on Increase in Average Bill Value by Ten Percent Project Details“Increase in Average Bill Value by 10%” 32 Babasabpatilfreepptmba.com
  • 33. A Study on Increase in Average Bill Value by Ten PercentDetails of the project:Time: This study spans for a period of 60 days between 10th Dec 2007 and 19th April 2008.Need for the Study: • Looked at Higher sales do not always mean higher profits. • This increase in average bill value will increase the sales and the profitability. This project is a requirement by the organizationand growth in sales is always expected in business.Average Bill Value: The average bill value is the average purchase made by a buyer that is = Total sales per day/Total number of bills made This increase in average bill value will increase the salesand the profitability. Thorough study of the past sales data and theconsumer buying behavior gives me good exposure and goodknowledge about the same. 33 Babasabpatilfreepptmba.com
  • 34. A Study on Increase in Average Bill Value by Ten Percent Surveys show that a large percentage of consumers do notlook at ads before shopping, do not prepare shopping lists, and makepurchases that are fully unplanned. In this situation some smallimprovements at the store and strategies can make customer to buymore. This study will helps to know the drawbacks and improve onsuch areas so that the average bill value will be increased by Tenpercent.By studying sales by store, department, and item, and comparing themwith prior periods, a firm can get a sense of growth or contraction.Higher sales do not always mean higher profits. Sales data should beexamined along with profit and loss data.Customer billing reports offer a lot of data. A retailer could learn aboutinventory movement, sales by different personnel, peak selling time,and sales volume. The purchase history itself evaluates againstbudgetary or goals. Objectives: 34 Babasabpatilfreepptmba.com
  • 35. A Study on Increase in Average Bill Value by Ten Percent “Increase in the average bill value by ten percent”. • To study different parameters influencing the purchase • To study the previous and present sales reports and find out the areas for improvement • Identify products which can increase bill value and are impulse in buying • Create combo offers in departments and increase the ticket size. 35 Babasabpatilfreepptmba.com
  • 36. A Study on Increase in Average Bill Value by Ten PercentMethodology:Since the project is conducted at Big Bazaar Hubli, data is very crucial.Daily sales Reports were analyzed and interpreted to find the ways as tohow bill value can be increased. Various techniques and methods havebeen implemented in order to achieve the aim.Formulas: • Avg.value per piece--- Store sale/no. of store qty sold • Customer conversion--- No of bills/no of entry • Avg.value per bill----- Store sale/bills made  Collecting all historical data  Analyzing the previous sales reports  Observing the customer buying behavior to know what makes him to buy more and what not  Identify areas for improvement and implement different strategies 36 Babasabpatilfreepptmba.com
  • 37. A Study on Increase in Average Bill Value by Ten PercentWHY CUSTOMERS ARE LEAVING PRODUCTS AT CASHCOUNTERS It was observed that most of the time customers leave at least one or two products at the cash counters while billing which could have been helped in increasing the bill value. To know what are the major reasons for this; a study was done keeping in mind four major parameters ….  OFFERS ARE NOT UPDATED  IDOC PROBLEM  LONG QUES  WRONG COMMUNICATION BY TM 37 Babasabpatilfreepptmba.com
  • 38. A Study on Increase in Average Bill Value by Ten Percent No Parameters Parentage of occurrence 1 OFFERS ARE NOT UPDATED 15 2 IDOC PROBLEM 25 3 LONG QUEUE 37 4 WRONG COMMUNICATION BY TM 23 A hundred billings were observed and the findings were listed according to which the outcomes are as follows…Thus we need to focus on using atleast 6-7 cash counters whentraffic is more and try to minimize queue length and another isproper communication between the teem member to the customerregarding offer.The offers should be updated. 38 Babasabpatilfreepptmba.com
  • 39. A Study on Increase in Average Bill Value by Ten PercentAfter implementing thee things the extent of customer leaving thethings near cash counters will decrease by 75%.Also the Cashier should be updated with all the offers.TECHNIQUES IMPLEMENTEDCross sellingThis is an effective and most important tool for a format like big bazaar.Here merchandises are mixed with other related products and sold withother products. This technique will help in increasing the bill value andalso liquidate the stocks.E.g.: food Bazaar and Plastics merchandise can be crossed sold. Vim bar, henko can be sold with scrubber or Brush form plasticdepartmentUp sellingThis technique is very important too. Up selling is when you call a personsattention to an item of greater quality (and cost). Here staff is trained tosell more products to a single customer. This can lead to improve in sales,increase in quantity and liquidate stocks. This can be done by preparing aseparate batch of 20 or 25 staffs and train them on how to convince thecustomer in a clever way 39 Babasabpatilfreepptmba.com
  • 40. A Study on Increase in Average Bill Value by Ten PercentE.g.: When a customer comes to buy a shirt or a pant, staff shouldconvince him to buy belt, socks or other accessories. He should be smartenough in convincing the customers at the right wayIncentiveIncentive is a powerful tool to motivate staffs. Identify products which canbe sold in large quantities and set an achievable target.E.g. Targets can be given on accessories which are between 50 Rs to 100Rs. Motivate the staff to achieve the targets. This will increase the salesand bill value of the customers.Department wise combo offers.Combo offers is nothing but combining products to give a better offers tothe customers. Here related products are combined together and given adiscount on all the products. This type of offers is highly effective in foodbazaar.Eg: 10 Kg rice,10kg toor dall ,5 litre oil and 5 kg sugar can be combinedtogether and give a overall discount. Assume if a customer buys all theproducts separately he will be charged 1000 rs, but if he avails a combooffer we can give the same products at a discount of 50rs. 40 Babasabpatilfreepptmba.com
  • 41. A Study on Increase in Average Bill Value by Ten PercentThis can largely attract more customers and increase the bill value andquantity.Slab based offers:Above all, it is the most important and effective tool to increase the billvalue. It can be done department wise or store wise. In this tool a slab rateis set and hyped to maximum. Customer can avail exciting offers if theyfulfill the criteria’s set by the department /store.EG. Shop for rs.999 and above and get 5kg sugar free.Common promo area to highlight important offer products.A common promo area should be created at the promo area on weeklybasis. This will highlight all the important offers of all departments.Customers get impactedwhen they look at thisarea. Their decisionpattern changes whenthey see an excitingoffer running on thefloor. 41 Babasabpatilfreepptmba.com
  • 42. A Study on Increase in Average Bill Value by Ten PercentOther techniques implemented  Identifying products which are impulse in buying  Keeping items below 50rs at all cash counters This was implemented. 8 bins having different items such as cleaning articles, fridge bottles, glass dusters for car, soft toys were kept near the cash counters. In two to three days we found all items in 8 bins were sold and bins are being refilled with new items.  Using free bees which are leftover and give to customers to buy more Free Bees are those products which come as free gift with some other product. E.g. Glass bowl with Bru coffee, Sample items. Some times customer will not take these free gifts. This stock can be used to make customers buy more. 42 Babasabpatilfreepptmba.com
  • 43. A Study on Increase in Average Bill Value by Ten Percent  Giving targets to individual –e.g. on accessories. Targets can be given to the employees to sell more on some section where sales is low. As in case of accessories they should catch customers who are buying a pant and convince them to buy one belt.  Preparing combo offers Combo offers are those where two or more different products will be sold together at a lower price. Eg. o T- Shirts and caps o Cotton jeans and belt o Cargos with caps o Shirt and tie 43 Babasabpatilfreepptmba.com
  • 44. A Study on Increase in Average Bill Value by Ten PercentThere were some combo offers successfully run at Food Bazaar andPlastic utensils and crockery section during my project period andadded to the customer bill value. Cont.Food Bazaar Combo Offer  1 KG Apple +1 KG Banana +1 KG Orange @ 75/-( FEB 1ST TO 26TH FEB)Slab Based Offer  SHOP @99 IN Fruits & Vegetables and get 1 KG Tomato FREE -( FEB 10TH TO 25TH FEB)PUC combo Offer  Buy a Bucket and Get Mug and Soap Box FREE ( FEB 18TH to 28th Feb)Slab Based Offer  BUY For RS 899 and Get a STEAM IRON BOX FREE  BUY a GAS STOVE and Get a MIXER GRINDER FREE  BUY FRY PAN and Get A KADAI/TAWA FREE 44 Babasabpatilfreepptmba.com
  • 45. A Study on Increase in Average Bill Value by Ten PercentFood Bazaar and PUC Combo Offer  SHOP for RS 799 IN FB AND PUC and get 1 AIRTIGHT CONTAINER FREE (IMPLEMENTED FROM FEB 17TH TO 28TH FEB) 45 Babasabpatilfreepptmba.com
  • 46. A Study on Increase in Average Bill Value by Ten Percent Impulsive ProductsTheoretical aspects of impulsive purchaseImpulse purchases occur when consumers buy products and /or Brandthey had not planned on buying before entering a store. There are threekinds of impulse shopping  Completely unplanned – A consumer has no intention of making a purchase in a goods or service category before he/she comes into contact with a retailer  Partially unplanned - A consumer intends to make a purchase in a goods or service category but has not chosen a brand before he/she comes into contact with a retailer  Unplanned substitution – A consumer wants to buy a specific brand but changes his or her mind about the brand after coming into contact with retailerImpulse purchases are more susceptible to retailer displays than pre-planned purchases: 46 Babasabpatilfreepptmba.com
  • 47. A Study on Increase in Average Bill Value by Ten Percent“For most shoppers, the checkout lane is the final hurdle – choosingthe right lane and getting out of the store quickly is a majorobjective. Retailers however view the checkout lane as ‘last chancearea’ –the place to sell impulse items such as candy and magazineas well as small but profitable necessities batteries and razorblades.”After keeping impulse buying goods near cash counters atBig Bazaar 47 Babasabpatilfreepptmba.com
  • 48. A Study on Increase in Average Bill Value by Ten PercentImpulsive products—ApparelsKIDS BRAND NAME MRPINFANTS TOPS ZERO 52/-INFANTSPYJAMA YES 49/-,59/-INFANTSLEGING ZERO 52/-FEEDINGBOTTLE AUTO FLOW 55/-60/-INFANT WEAR BABY MASTER 40/-CHILDREN COMFORDSOCKS FASHION 39/-ACCESSORIES PNB 39/-,49/-BOTTLE BRESH AUTO FLOW 18/-LADIES BRAND NAME MRPCaps many 49/- and aboveHanky BB 15/- and aboveSocks BB 49/-Shall / scarf DJ &C 99/-MENS BRAND NAME MRPCAPS ASST 49/-SOCKS B.B 12/-SOCKS BB 49/-SOCKS KNIGHT HOOD 52/- 48 Babasabpatilfreepptmba.com
  • 49. A Study on Increase in Average Bill Value by Ten PercentSOCKS DJ&C 45/- LOVE BIRD BRAND(BLUEHANKIES DIAMOND) 49/-HOME LINEN BRAND NAME MRPCUSHIONS BB 49/-RUBBER MATS PALM FIBER 48/-CHINDI MATS BB 9/-10/-,19/-,29/-RUBBER MATS BB 29/-WOOLEN MATS BB 59/-NON SLEEP MATS 19/-TELEPHONE MATS CLASSIC 39/-,49/-,59/-HANDLOOM MATS BB 9/-BAMBOO MATS BB 29/-WOODEN MATS BB 10/-,25/-39/-FLOOR DUSTER BB 29/-KITCHEN DUSTER BB 45/-GLASS DUSTER BB 49/-YELLOW DUSTER BB 49/-LANDURY BAG GENERATION 29/-OVEN GLOVE BB 29/-POT HOLDER BB 15/-KITCHEN DUSTER BB 39/-HAND TOWELS DREAM LINE 49/-HAND TOWELS HOME STYLE 39/-HAND TOWELS BB 49/-COTTON TOWELS BB 40/-,60/-PILLOW COVERS BB 35/-,39/-,59/-HAND TOWELS BB 20/-CHATTI BB 12/-SHOWER CAPS BB 9/-,15/-,49/-COASTER HOME COLLECTION 9/-MAGIC WIPING 39/- 49 Babasabpatilfreepptmba.com
  • 50. A Study on Increase in Average Bill Value by Ten PercentCLOTHNYLON TABLECOVERS BB 29/-GENERAL MERCHANDISE- IMPULSIVE PRODUCTSPLASTICSCLEANING ARTICLES, CONTAINERS, POTS, FRIDGE BOTTELS,BUCKETS, MUGS, CASSEROLESUTENSILSPLATES, GLASSES, VATTIES, LOW PRICE TAWA, TOPES, COOKERSCROCKERYMELAMINE PLATES, LOW PRICE DINNER SET, BOWLSFOOTWEARSLIPPERS, KIDS SANDALS AND SHOES, LADIES SANDALS.LUGGAGESCHOOL AND COLLEGE BAGS, DUFFEL BAGS, MENS AND LADIESWALLETSTOYS AND SPORTS 50 Babasabpatilfreepptmba.com
  • 51. A Study on Increase in Average Bill Value by Ten PercentBELOW 99 SOFT TOYS, CHINKY DOLLS, SOFT PILLOW, INFLATABLEBALLS, TENNIS BALLS, Analysis 51 Babasabpatilfreepptmba.com
  • 52. A Study on Increase in Average Bill Value by Ten Percent and InterpretationThe average bill value per day and per month is calculated for fourmonths. December and January before implementing any technique.Above mentioned techniques’ were implemented in the month ofFebruary and March. 52 Babasabpatilfreepptmba.com
  • 53. A Study on Increase in Average Bill Value by Ten PercentThe data of every month and comparative graphs are shown infollowing pages.The tables below show the date and average bill value on thatparticular day.Average bill value = Total Sales / No. of Bills madeFor the month of December……. December Average Bill value Date In Rs. 1 528 2 528 3 420 4 629 5 610 6 560 7 495 8 582 9 464 10 500 11 490 53 Babasabpatilfreepptmba.com
  • 54. A Study on Increase in Average Bill Value by Ten Percent 12 506 13 410 14 524 15 561 16 524 17 573 18 651 19 565 20 403 21 552 22 677 23 522 24 528 25 486 26 560 27 493 28 509 29 548 30 383 31 540The average bill value for Month of December is Rs. 526For the month of January………. January Average Bill Value Date In Rs. 1 547 2 550 3 473 4 417 5 500 6 417 7 517 8 381 9 909 10 680 11 449 12 482 54 Babasabpatilfreepptmba.com
  • 55. A Study on Increase in Average Bill Value by Ten Percent 13 465 14 513 15 530 16 581 17 461 18 377 19 977 20 489 21 423 22 528 23 380 24 469 25 487 26 459 27 569 28 402 29 974 30 572The average bill value for month January is Rs.531For the month of February…… after implementing differenttechniques February Average Bill Value Date In Rs. 1 612 2 457 3 551 4 662 5 502 6 461 7 496 8 756 9 470 55 Babasabpatilfreepptmba.com
  • 56. A Study on Increase in Average Bill Value by Ten Percent 10 524 11 522 12 621 13 531 14 623 15 597 16 538 17 566 18 607 19 584 20 515 21 545 22 643 23 579 24 591 25 521 26 408 27 562 28 504 29 443THE AVERAGE BILL VALUE FOR FEB IS 551For the month of March……. March Average bill value Date In Rs. 1 569 2 598 3 658 4 586 5 578 6 595 7 510 8 569 9 610 10 798 11 596 12 549 56 Babasabpatilfreepptmba.com
  • 57. A Study on Increase in Average Bill Value by Ten Percent 13 484 14 570 15 660 16 588 17 648 18 576 19 534 20 694 21 654 22 673 23 657 24 684 25 588 26 565 27 1098 28 696 29 595 30 699 31 610Average bill value for the month of March is 628GRAPH 1 57 Babasabpatilfreepptmba.com
  • 58. A Study on Increase in Average Bill Value by Ten Percent From the following GRAPH, it clearly indicates that there is a huge increase in bill value. This is during the big days on Jan 25th, 26th and 27th. Here it shows the hike on week ends. The bill value for Saturday and Sunday was 977 and 974. The total customer entry for these two days was 20638 customers. Apart from these two big days the bill value of January is decreasing compared to December in weekendsGRAPH 2 58 Babasabpatilfreepptmba.com
  • 59. A Study on Increase in Average Bill Value by Ten PercentFrom the following graph it indicates that compared to month of Janand Feb there is a hike in bill value ON FEB except during Big baysGraph 3 59 Babasabpatilfreepptmba.com
  • 60. A Study on Increase in Average Bill Value by Ten PercentFrom the following graph there is a decrease in Bill value whichfluctuates from the range of 400 to 600 DURING WEEK days. The billvalue was on it peak during the big day i.e. on Friday (25th)Total customer entry on 25th jan-3282Graph 4 60 Babasabpatilfreepptmba.com
  • 61. A Study on Increase in Average Bill Value by Ten PercentFrom the following graph it shows that there is a hike in bill valueduring weekdays for the month of February.The bill value compared to Jan and Feb. for week days it has risen by11 %January weekdays bill value—503February weekdays bill value---558.Graph 5 61 Babasabpatilfreepptmba.com
  • 62. A Study on Increase in Average Bill Value by Ten PercentThe following graph shows the comparison for the past three monthsi.e. December, January and February. It clearly indicates there isconsecutive hike for the past three months.December total ABV—526January total ABV-----531February total ABV----551Compared to December and February there is a hike in 5 %Graph 6 62 Babasabpatilfreepptmba.com
  • 63. A Study on Increase in Average Bill Value by Ten PercentThe graph of February is above January throughout the month apartfrom two big days.Form the following graph it indicates that there is hike in Bill valueby 4 % during the month of FebruaryJANUARY ABV-531FEBRUARY ABV-551Graph 7 : Comparison of March and December (whole month) 1200 1100 1000 900 800 700 march 600 Dec 500 400 300 200 100 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31The average bill value in March is higher than December throughout themonth. 63 Babasabpatilfreepptmba.com
  • 64. A Study on Increase in Average Bill Value by Ten PercentAverage bill value in December : 526Average bill value in March : 628There is a increase in bill value by 19 %Graph 8 : Comparison of March and January (whole month) 1200 1000 800 march 600 jan 400 200 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 64 Babasabpatilfreepptmba.com
  • 65. A Study on Increase in Average Bill Value by Ten PercentThe average bill value in March is higher than January throughout themonth.Average bill value in December : 531Average bill value in March : 628There is a increase in bill value by 18%Graph 9 : Comparison of March and February (whole month) 1200 1000 800 march 600 Feb 400 200 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 65 Babasabpatilfreepptmba.com
  • 66. A Study on Increase in Average Bill Value by Ten PercentThe average bill value in March is higher than February throughout themonth.Average bill value in February : 551Average bill value in March : 628There is a increase in bill value by 13.7 %Graph 9 : Comparison of all four months 1200 1000 800 march Feb 600 jan Dec 400 200 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 66 Babasabpatilfreepptmba.com
  • 67. A Study on Increase in Average Bill Value by Ten PercentThe following graph shows the comparison for the past four monthsi.e. December, January, February and March.It clearly indicates there is consecutive hike for the months ofFebruary and March.December total ABV—526January total ABV-----531February total ABV----551March total ABV--------628Compared to December and February there is a hike in 18 % Recommendatio n 67 Babasabpatilfreepptmba.com
  • 68. A Study on Increase in Average Bill Value by Ten Percent:: Loyalty ProgramTheoretical aspects of Customer loyalty :When customer loyalty exists, a person regularly patronizes a particularretailer that he/she knows, likes, and trusts. Such loyalty lets a personreduce decision making because he/she does not have to invest time inlearning about and choosing the retailer from which to make purchases.Over the years research has addressed various aspects of shopper 68 Babasabpatilfreepptmba.com
  • 69. A Study on Increase in Average Bill Value by Ten Percentloyalty. Loyal customers tend to be time-conscious, like shopping locally,do not often engage in outshopping, and spend more per shopping trip.In today’s competitive marketplace, it is a challenge for a retailer to gaincustomer loyalty-the greatest asset a firm can have.According to Harte-Hanks Market research  Customer satisfaction is a crucial aspect of customer loyalty.  Among the factors that create sense of loyalty beyond satisfaction is the retailer’s “Value Proposition” and an ability to communicate a caring attitude to customers  Retailers can receive a higher-than-average degree of loyalty by targeting shoppers who are especially predisposed to being loyalLoyalty programs A retail establishment or a retailgroup may issue a loyalty card to aconsumer who can then use it as aform of identification when dealing withthat retailer. By presenting the card, thepurchaser is typically entitled to either a 69 Babasabpatilfreepptmba.com
  • 70. A Study on Increase in Average Bill Value by Ten Percentdiscount on the current purchase, or an allotment of points that can beused for future purchases. • Delighted customers will get extra discount every time on making bill above Rs. 999/- This is one program where any person can become a delighted customer of Big Bazaar by purchasing above 1100/- in a single bill. He will be given a membership card. Whenever he purchases above 999/- he can use this card to get extra benefits or discount one the purchase. (Upto 5%). He will also be getting many other benefits (during special days, festivals etc.) and a strong customer relation will be built. The card should be used atleast once in 3 months otherwise it will be expired.* This will help in building customer loyalty. People will turn to bigbazaar to make their monthly grocery and other purchases, even for homelinen and apparels. Customers shifting to other retail outlets will definitelycome down when they are treated as “delighted customers” • Special offer for students – flash your Identity card and get special discount This may be for a week / fifteen days or a month “youth festival” where college students will get special discounts above certain amount of purchase. Students have to flash their identity card of their respective institute to get such discount. They can also be part of other activities to get more by showing their identity card itself and get…. 70 Babasabpatilfreepptmba.com
  • 71. A Study on Increase in Average Bill Value by Ten Percent  Special gifts hampers (latest music cds, accessories etc.)  lucky vouchers  Be part of Treasure hunt type games for one or two days to create excitement and win more prizes.* This effort is because youth is the major buyer in apparels and theyalways make big bills. It is very important to see that these youngsters willnot shift to our competitors like Vishal.Need and importance of this program: • To build strong customer relationship and they can also maintain a database of their delighted customers • As I have observed the average bill at big bazaar is Rs. 500 to Rs. 600. There are around 40% of the customers who make bill between Rs. 750 to Rs. 850. We can convince these customers to buy some more and they will get extra discount on that and they can become “delighted customers” of Big Bazaar. • As number of competitors is increasing such kind of programs will help Big Bazaar to attract and keep their loyal customers.About loyalty card: In marketing generally and in retailing more specifically, a loyaltycard / rewards card / points card or club card is a plastic or paper card,visually similar to a credit card or debit card, that identifies the card holderas a member in a commercial incentives programme. Loyalty cards are asystem of the loyalty business model. 71 Babasabpatilfreepptmba.com
  • 72. A Study on Increase in Average Bill Value by Ten Percent In the United Kingdom and India it is typically called a loyalty card,in Australia a rewards card or a points card, and in the United Stateseither a discount card, a club card or a rewards card. Cards typically havea barcode or magstripe or an EPROM chip that can be easily scanned,and some are even chip cards. Small keyring cards are often used forconvenience. The card issuer requests or requires customers seeking theissuance of a loyalty card to provide a usually minimal amount ofidentifying or demographic data, such as name and address. Applicationforms usually entail agreements by the store concerning customer privacy,typically non-disclosure (by the store) of non-aggregate data aboutcustomers. The store — one might expect — uses aggregate datainternally (and sometimes externally) as part of its marketing research.Where a customer has provided sufficient identifying information, theloyalty card may also be used to access such information to expediteverification during receipt of cheques or dispensing of medical prescriptionpreparations, or for other membership privileges………….e.g. Access to a club/reputed hotelSuggestionsNo. 1. Attract Shoppers and keep them in storeThe amount of time a customer spends inside a store is directlyproportional to how much they spend. By making customers spend moretime in the store, companies can increase their sales. A classic example ofthis is Barnes & Nobles book stores - they have a coffee shop inside the 72 Babasabpatilfreepptmba.com
  • 73. A Study on Increase in Average Bill Value by Ten Percentbook store, they provide comfortable lounge chairs and sofas so thatcustomers can browse books at leisure.No. 2. Men & Women have different shopping habitsMen tend to walk directly to the required shelf - if the product is not on theshelf, they tend to walk out. Men rarely ask for help from the storeattendants. If the required product is not seen in that store, they move onto another store. This results in lost revenue.An attendant always has to make sure that he asks the customer if hefound everything he was looking for. Note that the store attendant has tobe proactive when dealing with male customers.Women need more space around them while shopping. Women tendto avoid crowded stores or stores with narrow isles. The ladies section ofthe store has more space around the merchandise - when compared tomen’s section. Women tend to spend more time for shopping if the sectionis more spacious.Since space is a major constrain for retailers, stores tend to be overpacked with merchandise - leaving very little room to move around. As aresult, many women prefer to buy at the local convenience or "Kirana"shops. This represents lost revenue for the retailers.No. 3. Make merchandise easy to findCustomers don’t like to hunt for products. Having all products clearlyclassified and displayed increases the sales. Display the store layout.Other chain stores do not even have sign boards. 73 Babasabpatilfreepptmba.com
  • 74. A Study on Increase in Average Bill Value by Ten PercentCreate a route for customers to follow within a store Customers tend toslow down once they enter the store. Retailers can then utilize this byorganizing the store in such a way that it encourages customers to windtheir way all through the store, see/feel different things before theyproceed to the checkout counter.Store should be designed in such a way that it encourages the customerto walk through all the departments of the store - and that encouragescustomer to buy more by reminding them of the things they need, or bymaking them buy things on impulse.Indian retailers are yet to catch-on to this concept. Most Indian retailstores are space constrained. Enough space is necessary to create awinding path for customers to follow.No. 4. Make Checkout fasterOnce customers have bought the products they need, they are eager topay & leave the store. Customer patience at this point is very low.Retailers should have multiple checkout counters to address this issue.Another trick to increase sales is to prominently display magazines, 74 Babasabpatilfreepptmba.com
  • 75. A Study on Increase in Average Bill Value by Ten Percentchocolates, candies etc., at the checkout counter. These are highmargin goods which people tend to buy on impulse. Shoppers with kidsare particularly susceptible for this tactic.Retailers have to catch-up on the customer service aspect at the checkoutcounter. Very few checkout counters may result in long lines and lostsales due to customers walking out without buying - because of the longwait.Many of the customers feel like avoiding Big Bazaar or other super storeson weekends & evenings. Instead they prefer to buy things at theconvenience mom & pop stores instead. All this accounts to lost sales forthe superstoresUtility of the project: 75 Babasabpatilfreepptmba.com
  • 76. A Study on Increase in Average Bill Value by Ten Percent 1. The project will be helpful to the organization as it helps in increasing the sales through increase in the average bill value. 2. It will facilitate the management to know about the drawbacks and to improve on it. 3. The study of the past data will help in knowing which product, which department, which days, which offer will make difference. 4. This project will give me a great exposure regarding business analysis and good knowledge of customer buying behavior. I will come to know different parameters influencing the sales and how to overcome the drawbacks. 5. This project will also helps in  Understanding parameters influencing customers’ purchase behavior  Deigning combo offers and increase ticket size  Different techniques which help in increasing the bill value 76 Babasabpatilfreepptmba.com

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