2. Food bazaar is an establishment of the Future group operating as a standalone value chain
retail outlet established in 2004 at Shipra mall, is the oldest retail chain of the conglomerate.
The standalone had a target of 1.37 crore for the 6 days offer and is estimated to earn around
50 crore annually for the group.
STRUCTURE OF THE RETAIL CHAIN
Store manager
HR
Department
manager
Food items
General
merchandise
Warehouse
Non food
items(Personal
and home care)
Cashing
Customer
Service desk
Marketing
division
Finance and
accounting
Facilities and
Administration
3. C O N S U M E R A LWAY S L O O K F O R E X T R A B E N E F I T S ( P E R C E I V E D O R A C T U A L ) F O R
T H E P U R C H A S E T H E Y M A K E A N D T H I S C O N C E P T I S U T I L I Z E D B Y T H E F O O D
B A Z A A R VA L U E C H A I N R E TA I L F O R M AT T O A C H I E V E H I G H E R S A L E S .
Food Bazaar – Customer base
One time
Purchaser(Devil
Customer)
•Looking for extra benefit: usually seen during sale.
•Wants value for every rupee invested : Points out nitty-gritty issues
•Difficult to satisfy with the offers
•Doesn’t require personal assistance
Repeat purchase
•Occasionally shops and interested more in the offers and discount
•Shops less argues more :Voices dissatisfaction openly but still comes back for more offers.
•Difficult to handle but can be converted into loyal customers.
•Time Consuming
Loyal Customer
•Neighborhood residents –Aware of the schemes and regularly visit the place
•Looks out for extra benefit like loyalty cards, total purchase discount ,points out dissatisfaction in a systematic manner.
•Happy to Shop usually comes back for more offers and discount but want extra benefits for loyalty.
•Offer suggestions for improvement and correction..
•Resistant to change.
TYPE OF FOOTFALL AT
FOOD BAZAAR
4. C o n s u me r i s t h e mo s t i mp o r t a n t p a r t o f a n y b u s i n e s s mo d e l a n d s p e c i a l l y
a re t a i l c h a i n ( v a l u e f o r ma t b a s e d ) w h i c h i s d e p e n d e n t o n t h e t o p
l i n e ( t o t a l s a l e s ) s i n c e i t h a s a re v e n u e b a s e d t a r g e t . T h u s , t h e h e a v y
i n f l u x o f c o n s u me r h e l p s t h e c o mp a n y a c h i e v e i t s t a r g e t w h i c h ma k e s i t
n e c e s s a r y f o r t h e c o mp a n y t o u n d e r s t a n d t h e c o n s u me r e x p e c t a t i o n , a re a s
o f d i s s a t i s f a c t i o n a n d e x p e r i e n c e i n o r d e r t o a t t r a c t t h e m t i me a n d
a g a i n .
Consumer Behavior @ Foodbazzar
SWOT Analysis of VALUE retail In purview of Customer Behavior
Play on your Strength
•Provides perceived value to price sensitive
customer.
•One Stop solution for home needs(Time Value)
•Standardized product
Tap the Opportunity
•Increased in working class(high disposable
income)
•Paucity of time(work schedule) leading to one
service provider
•Increase In lifestyle and shift of shopping
location (Neighborhood to malls)
Neutralize the Weakness
•Negative connotation of positioning
strategy(Inexpensive perceived as cheap)
•Maintenance of low customer turnover is difficult
(Extraneous variable)
Mitigate the Threat
•Low switching cost
•Heavy inflow of similar format store(inverse
competition)
•Supply and demand constraints due to PESTEL.
5. To s t u d y t h e c a u s e a n d e f f e c t o f a n y s i t u a t i o n , i t i s n e c e s s a r y t o c o n d u c t a n
e x c l u s i v e r e s e a r c h t o u n d e r s t a n d t h e u n d e r l y i n g i s s u e s .
To c o n d u c t a r e a l i s t i c r e s e a r c h , s a m p l i n g i s p e r f o r m e d w h i c h i s t h e
r e p r e s e n t a t i v e d a t a o f t h e p o p u l a t i o n u n d e r s t u d y.
I n o u r r e s e a r c h , w e h a v e t a k e n t h e c u s t o m e r v i s i t i n g t h e s t o r e a s o u r r e s e a r c h
s a m p l e s i n c e t h e y w o u l d p r o v i d e t h e t r u e s t o r e e x p e r i e n c e a n d r e a l i s t i c p i c t u r e
t h r o u g h t h e i r f e e d b a c k .
R e s e a r c h t y p e : d e s c r i p t i v e r e s e a r c h ( t o u n d e r s t a n d c o n s u m e r e x p e r i e n c e )
To t a l s a m p l i n g u n i t : 1 5 4
R e s e a r c h m e t h o d o l o g y : q u e s t i o n n a i r e ( f e e d b a c k f o r m " s h a r e w i t h u s ” )
S c a l e : g r a p h i c a l s c a l e
Research Methodology
58%27%
7%
6% 2%
Demography of sample
AGE(18-30) AGE(31-40) AGE(41-50)
AGE(51-60) AGE(61-70)
Profile of Sample
Female
45%
Male
55%
Profiling of sample
6. SOP: Customer Analysis
As already seen the importance of customer in a retail chain, it
is important to operate in a customer centric environment.
Since, a retail market suffers from
a high churn rate which needs to be minimized since
it is difficult to create a customer.
So in order to serve the customer better the feedback was
taken
so that the customer can be attracted to the
store to continually contribute as loyal customer
Customer
Oriented
Strategy
Identify a
customer
Create a
Customer
Retain a
customer
Customer creation
ISSUE
80-20rule(80%
revenue from 20% old
customer)
Rise In acquisition
Cost(5 times)
7. The Customer Expectation pyramid
According to the paper by Chu and Pike on Customer strategy in retail chain(2002 the most
important aspect for a retail chain customer was in-store experience and staff assistance
whereas marketing and communication(promotion) had little impact on the customer
satisfaction so accordingly we designed our feedback form to incorporate the values customer
feel most importantly:
Customer Overall experience
In store Experience
• Music
• Lighting
• Temperature
• Cleanliness
Facilities management
• Ease of moving
Around
• Ease of finding a
trolley
• Checkout Counter
Staff Support
• Courteousness
• Knowledge and
efficiency
Presentation
• Cashier Interaction
• Cashier speed
Product
• Range
• Prices
• Quality
• Availability
Communication and
marketing
• Ease of finding a
product
8. In-Store Experience
The organized retail format has changed the way people shop today. Not only has it provided
the ease of access and availability of product and service , the concentration is on the customer
In store experience which cannot be provided in an unorganized retail via Delightful Music,
Lively display and Lighting, Sanitation and hygiene and Ambience.
Analysis: The results show that around 73% of the respondents are highly satisfied with the
overall store experience and consider lighting of the store (Visibility)to be relatively better to
other parameter. The overall customer respomses shows high level of satisfaction among all the
attribute measured.
0
20
40
60
80
100
120
140
160
180
music temperature lighting cleanliness
bad
ok
good
73%
13%
14%
0%
Overall In Store
Experience
Highly satisfied Satisfied
Dissatisfied Highly dissatisfied
9. In a customer oriented business, the personal interaction between the seller and customer plays
an important role in the purchase decision thus several attribute of the staff involved in the
process is considered to influence the customer. In food bazaar, the customer mainly interacts
with staffs at three departments:
Department Function
Product Purchase department Product Knowledge and SP personality
Cashing counter Billing time and interaction
Checkout counter(CSD and security) Query handling and delivery
0
20
40
60
80
100
120
140
160
180
good
bad
Ok
We can conclude that the
customers are mostly satisfied with
the support staff and ranked the
services good with little scope of
improvement required in the area
of staff courteousness and product
knowledge area and also certain
training should be provided to the
selling staffs in order to improve
them over the cashier rating.
Staff Support
10. S t o r e m a n a g e m e n t i s a v e r y i m p o r t a n t s o t h a t t h e o v e r a l l p r o c e s s c a n t a k e
p l a c e s m o o t h l y p r o v i d i n g a g o o d e x p e r i e n c e t o t h e c u s t o m e r. A s p a r t o f t h e
i n – s t o r e m a r k e t i n g v a r i o u s d i s p l a y s , s i g n a g e ( d e p a r t m e n t l o c a t i o n ) a n d p r o d u c t
d i s p l a y a r e p u t u p w h i c h h e l p t h e e a s y n a v i g a t i o n t o t h e c u s t o m e r. A g a i n ,
f a c i l i t e s l i k e t r o l l e y a s a t h e s h o p p i n g c a r t w h i c h i s f a c i l i t a t e d b y s p a c i o u s
m o v i n g a r e a a r o u n d t h e f l o o r i s p r o v i d e d .
“ M i s u t i l i s a t i o n o f s p a c e i s a c r i m e i n a r e t a i l s t o r e ” s o p r o p e r u s a g e o f t h e
s p a c e i s e s s e n t i a l t o p r o v i d e b e n e f i t t o t h e o u t l e t a s w e l l a s c u s t o m e r.
S o , t h e f e e d b a c k p r o v i d e d w o u l d h e l p u s f i n d s o l u t i o n t o o p t i m a l l y u t i l i z e t h e
f l o o r s p a c e a n d p r o v i d e m o r e c o n v e n i e n c e f o r b r o w s i n g t h e s t o r e f o r a
s a t i s f a c t o r y s h o p p i n g e x p e r i e n c e
Marketing and Facilities management
As it can be seen majority of
respondents are happy about
the product display and floor
movement area also the
facility of trolley is also very
efficient .Only some issues
in navigation for some
customer has been observed
which maybe due to peak
hour shopping.
0
20
40
60
80
100
120
Ease of moving around
in the store - Navigation
Ease of finding a
product - Product
Displays
Ease of finding a
trolley/basket
ok
bad
good
11. The Product
The most important factor which attracts the customer is the product portfolio provided
by the store. The customer are attracted to a store because of the one stop shopping
solution which Food bazaar provides through its various food and non food categories.
In spite of the easy accessibility it is very essential to provide an uncompromising
product with the following feature:
Large Portfolio
Quality and Standard maintained
Availability of the Product in the catalogue
Value for money
0
20
40
60
80
100
120
140
Range Prices Quality Availability
PERCEIVED PRODUCT VALUE
ok
bad
good
As seen the customer are
satisfied by the overall feature
and benefit provided by the
product but certain
inefficiency has been
observed on the following
points:
•Quality of product not
maintained
•Prices perceived to be
inflated
•Low replacement rate
causing unavailability of Fast
Moving product.
12. Customer Reasons of Deflection
As already mentioned the switching cost of customer in a retail outlet is very less and it is
important to minimize the instances which can possibly lead to deflection of customer. It
is unavoidable that certain situations arise where the customers are likely to be irritated
but it is important to mitigate those inefficiencies and develop a flawless system of
operation.
As observed in food bazaar a lot of customer query and cases of issuance of credit note
and cash refund(special cases) has been confronted which needs to be handled at the
points it arises so that the customers are prompted to come back later happily.
19%
19%
4%
8%
18%
14%
18%
Department wise classification
of issue
chefzone chill station farm fresh GM
home care personal care staples
10% 6%
2%
12%
1%69%
Customer Issue
barcode issue Billing error
damage and defective discount not given
dislike customer change of mind
13. As we can see that the consumers mostly return the product because of their own
choice or change of mind which contributes to around 69% of the return.
Again, some 12% cases are of the barcode issues and 10% are the mismatch of discount
offers(Updation in the POS) so it is necessary to take care of the issues at the end of the
outlet so that there is certain reduction in the refund cases which contributes to heavy
loss of sale.
As ,we can see that in a period of a month, the outlet has issued a refund worth Rs
30,000 of which around 30% is internally caused from errors like billing ,discount
mismatch etc which can be completely eliminated and sale can be escalated.
Type of refund Amount(Rs)
Cash refund 4872
Credit refund 24910
14. Handling the Customer
It is very important to be very patient and listen to the problems of the customer to avoid negative
network (BIG Bazaar news) publicity
Store manager
Department
manager
Quality defect
Offer
Mismatch(Barco
de Issue)
Customer
Service Desk
Bill Error
Customer
change of Mind
Share with
us(Feedback)
Identification
The dept manager or LT would be called to know the problem(faulty display, barcode
mismatch ,wrong communication of offers by staff or SP)
Rectification
The problem would be tackled by issuance of CN or CR as per the demand and type of customer and
the concerned authority be held liable for the credit inwards(register maintained and signed)
Communicati
on
Information through a CSD report to the store manager (Customized SAP Software for reporting)
15. Majority consumers chose scheme over brand exception being
health conscious consumers
Brand loy al customers remained sticky irrespective of schemes
Many consumers are unaware about the difference between
brands
Tendency to ask repetitively for the offers
Value perceived is usually low despite discounts and offers
Regular customers prefer loy alty cards and extra benefit.
Apprehension towards any change like chargeable poly bags were
highly criticized
Preference of home delivery(many enquiry regarding the same)
One time buy ers more skeptical and usually fusses about the
product quality.
A high amount of shrinkage (theft) prevalent .
Falsification of bill errors by customers also provided for some
benefit.
Shopping assistance usually not required by the shoppers (only
brief idea of the schemes are required)
Most of the billing errors caused by ignorance on the customer
side.
Conclusion
