Marketing strategies & consumers satisfaction @big bazaar

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Marketing strategies & consumers satisfaction @big bazaar

  1. 1. A PROJECT ON “MARKETING STRATEGIS OF BIG-BAZAAR & CONSUMERS SATISFACTION IN BIG-BAZAAR” (AVANI MALL) POWERED BY FUTURE GROUP RAJARHAAT NEW-TOWN, KOLKATA, W.B JUNE-AUGUST 2012 UNDER GUIDENCE OF SUBHODEEP PAUL (FUTURE GROUP ZONAL OFFICE, KOLKATA) ANIRBAN KUNDU (FUTURE GROUP ZONAL OFFICE, KOLKATA) ANDPROFESSOR SOURAV BHATTACHARYA (BSM BARASAT, KOLKATA) SUBMITTED BY ARKABRATA BANDYAPADHYAY (MBA 3rd SEM, SECTION A 2011-2013)
  2. 2. INDEX Topics page number1. Introduction 01-06  Retail Industry In India  Abstract  Overview of Indian Retail Industry  Evaluation of the Indian Retail market  Growth in the Indian Retail sector  Retail Penetration in 2011  SWOT analysis of Indian Retail Industry  Retail formats in India2. Company Profile 07-11  History  Lines of Business of the above store  Operations  Time Line  Missions & Values3. Review of Literature 10-29  Meaning of Marketing  Importance of Marketing  Retail Marketing  Marketing Mix  Marketing Mix of BB  Consumers Satisfaction  Expectation & Consumers Satisfaction  Objective of Consumers Satisfaction surveying program  Importance of Consumers Satisfaction  Innovations of BB  Loyalty Program of BB
  3. 3. 4. Research Methodology 30-33  Sources of Data for Marketing Strategies  Sources of Data for Consumers Satisfaction  Research Objectives  Scope & Uses  Sampling for Consumers Satisfaction analysis  Questionnaires sample for Consumers Satisfaction analysis5. Data Analysis 34-58  Data description for Marketing Strategies  Marketing mix analysis of BB  Marketing Strategies analysis of BB  IMC  IMC components of BB  Importance of IMC for BB  Data Description for Consumers Satisfaction  Numbers of respondents based on age  Numbers of respondents based on sex  Customers/Consumers feedback analysis6. Findings & Suggestions 59-62 for consumers satisfaction in Big-Bazaar7. Conclusions & Recommendations 63-65  Conclusions for Marketing Strategies of BB  Recommendations for Marketing Strategies of BB  Conclusions & Recommendations for Consumers Satisfaction @ BB8. Limitations 669. Bibliography 66
  4. 4. ACKNOWLEDGEMENTI owe a great many thanks to a great many people who helped and supported me during my project paper.My deepest thanks to the Professor Sourav Bhattacharya, Anirban Kundu and Subhodeep Paul for guidingme with attention and care to accomplished this project beautifully. They are taken pain to go through theproject and make necessary correction as and when needed.I express my thanks to the Dean of BSM, Barasat, West.Bengal for extending his support.We would also thanks to my all faculty members, non-teaching stuff of BSM, Barasat, West.Bengal.without whom this project would have been a distant reality. We also extend our heartfelt thanks to ourfamily, our friends and well wishers. ArkaBrata Bandyapadhyay
  5. 5. DECLARATIONI HERE BY DECLARE THAT THIS DISSERTATION REPORT ON “CONSUMERS SATISFACTIONIN BIG-BAZAAR” SUBMITTED BY ME IS OF MY OWN AND NOT SUBMITTED TO ANY OTHERINSTITUTION OR PUBLISHED ANY WHERE ELSE. Signature: ___________________________________________________ Date: _______________________________________________________ Place: _______________________________________________________
  6. 6. [I] INTRODUCTIONRETAIL INDUSTRY IN INDIAABSTRACT:The Retail bazaar in India is booming beyond everyone’s expectation. The Indian Retail sectorhas caught the world’s imagination in the last few years. India’s retail growth was largely drivenby increasing disposable incomes, favorable demographics, changing lifestyles, growth of themiddle class segment and a high potential for penetration into urban and rural markets. Theorganized retail sector accounts for 5 % which is expected to grow to 10 % by the end of 2011. Anumber of large corporate houses like Aditya Birla , Bharti , Reliance ,Pantaloons ,Vishal ,Tata Retail,RPG, Rahejas and Piramalss have diversified to add retail to their sector portfolio. This studyrevolves around the opportunities and challenges faced by organized retail players in India. Itwas found that organized retailers see competition from the unorganized sector as their biggestchallenge, followed by competition between organized retailers and the inefficiency ofdistribution channels, internal logistical problem and retail shrinkage.OVERVIEW OF INDIAN RETAIL INDUSTRY:India is one of the largest emerging markets, with a population of over one billion. It is one ofthe largest economies in the world in terms of purchasing power. Retailing in India is at anascent stage of its evolution, but within a small period of time certain trends are clearlyemerging which are in line with the global experiences. Organized retailing has become morepopular in big cities in India and most of the metropolitan cities and other big cities are floodedby modern organized retail stores. Many semirural areas have also witnessed entry of suchorganized retail outlets. Indias retail sector is estimated to touch US$ 833 billion by 2013 andUS$ 1.3 trillion by 2018, with a compound annual growth rate (CAGR) of 10%, which is quitelucrative. Retailing as a whole contributes almost 10% of India’s GDP, and employs almost 8%of India’s employable population. The organized sector accounts for a mere 5 per cent indicatinga huge potential market opportunity that is lying in the waiting for the consumer-savvy organizedretailer. Purchasing power of Indian urban consumer is growing and branded merchandise incategories like Apparels, Cosmetics, Shoes, Watches, Beverages, Food and even Jewellery areslowly becoming lifestyle products that are widely accepted by the urban Indian consumer.Organized retailing is witnessing a wave of players entering the industry. These players areexperimenting with various retail formats. A number of large corporate houses like Aditya ,Bharti, Reliance, Future Group(Big Bazaar), Vishal, Tatas, RPG, Rahejas and Piramalss have alreadymadetheir foray into this arena, with beauty and health stores, supermarkets, self-service music stores,new age book stores, everyday low price stores, computers and peripherals stores, officeequipment stores and home/building construction stores. Today organized players have attackedevery retail category. Page 1 of 67
  7. 7. Organized retail chains comprise only 3% of the Indian market. Rest 97% market is comprised of mom-and – pop type shops. Now the number of organized retail stores is gradually increasing. According toETIG (Economic Times Intelligence Group), the size of the organized retail industry was about Rs. 160billion in 2001-02. In 2005 budget Government has allowed 26% Foreign Direct footwear, furniture andfurnishing, catering services, jewellery and watches, books, music and gifts, mobile handsets andothers.Investment (FDI) in the retail sector. Organized retailing is on continuous increase of its marketshare from the past. Retailing can be categorized as of different sectors like food and groceries, clothingand textiles, consumer durables, footwear, furniture and furnishing, catering services, jewellery andwatches, books, music and gifts, mobile handsets and others.EVOLUTION OF THE INDIAN RETAIL MARKET:Retailing goes back to centuries; it started as a very primitive business but today has growntremendously. First people were doing businesses with their neighbors. Goods were exchanged betweenthem. Gradually people began to collect themselves to a given neighborhood, which provides ageographical place to do the exchange. This not only increases the exposure of a given good but alsohelps a lot towards the development of a more formalized system. Gradually, a few more start to gettogether to a place that in turn creates a need for a common place. Later this common place was called afair. With the passing of time the number of people doing businesses in a given fair increased, issues likesecurity, transportation becomes a matter of concern. This semi-formalized system then gave birth tosmall-scale groceries, where people start to provide more combinations in their own neighborhoods. Thencame the issue of choice in given grocery, the choices the customer had was limited, this was thebeginning of the concept of “everything under one roof”. As time passes, joint family changes intonuclear family. There too both members started earning which resulted into a new way of lifestyle. Fromthen instead of mom-and-pop type of stores organized retail stores came into existence. Based on theICICI Research, the Indian Retail Market evolution can be traced in the following way: Page 2 of 67
  8. 8. Growth in the Indian Retail Sector:The retail sector in India has shown a healthy growth and is fast emerging as one of the largest sectors inthe economy. The sector has grown from a level of US $ 201 Billion to a market size of US $ 425 Billionin 2010.The Industry has been growing at a compound annual rate of 6.4% since 1998. Source EIU Euro Monitor (Source http://rmagine.wordpress.com/author/rmagine/) Page 3 of 67
  9. 9. Retail Penetration in 2011:Organised retail in India is still in its nascent stage and hence offers immense potential. India currentlyhas a small 6% penetration in organised retail , while a country like the US has a high 85% penetration.Given that there is a double digit economic growth projection for India in the following decade, thefuture has immense potential for the growth of organised retail in India.The chart below shows retail penetration across some countries. (Source: ( E&Y Report, Aranca Research)http://retailmantras.blogspot.in/2012/01/retail-penetration-in-2011.html) Page 4 of 67
  10. 10. SWOT Analysis of Retail Industry of India: Strengths: Weaknesses: 1) Organized retailing at US$ 3.31 billion, 1) Shortage of quality retail spaces at affordable growing at 8%. rates. 2) 2nd largest contributor to GDP after 2) Government regulations on development of agriculture at 20%. real estate(Urban Land Ceiling Act) 3) Pattern of consumption changing along with 3) Need to provide Value for Money-squeezing shopping trends. margins 4) Consumer spending increasing at 11% 4) Lack of industry status. annually. 5) Retail revolution restricted to 250 million 5) Almost 25 million sq. ft. retail space people due to monolithic urban-rural divide. available. 6) Lack of huge investments for expansion 6) Paradigm shift in shopping experience for consumers pulling in more people. Opportunities: Threats: 1) Increasing urban population-more 1) Rising lease/rental costs affecting project participants in retail revolution. viability. 2) Increase in consuming middle class 2) Poor monsoons and low GDP Growth could population. affect consumer spending drastically. 3) Social factors, like dual household income 3) Archaic labor laws are a hindrance to has enhanced spending power. providing 24/7 shopping experience. 4) Spends moving towards lifestyle products 4) Personalized service offered by Kirana stores. and esteem enhancing products. 5) Unavailability of qualified personnel to 5) Average grocery spends at 42% of monthly support exponential growth in retail. spends-presents a huge opportunity. 6) Differentiate taxation laws hindering expansion. 6) Increase in use of credit cards.Retailing formats in India:1. Malls2. Specialty Stores3. Discount Stores4. Department Stores5. Hyper marts / Supermarkets6. Convenience Store7. MBO’s8. E-trailer Page 5 of 67
  11. 11. Malls:Mall is largest form of organized retailing today. Located mainly in metro cities, in proximity tourban outskirts they range from 60,000 sq ft to 7, 00,000 sq ft and above. They lend an idealshopping experience with an amalgamation of product, service and entertainment, all under acommon roof. Examples include Shoppers Stop, Pyramid, Pantaloon, Big Bazaar.Specialty Stores:Focusing on specific market segments and have established themselves strongly in their sectors.Chains such as the Bangalore based Kids Kemp, the Mumbai books retailer Crossword, RPGsMusic World and the Times Groups music chain Planet M are a couple of examples.Discount Stores:As the name suggests, discount stores or factory outlets, offer discounts on the MRP throughselling in bulk reaching economies of scale or excess stock left over at the season. The productcategory can range from a variety of perishable/ non perishable goods. Discount Circuit is onesuch example.Department Stores:Large stores ranging from 20000-50000 sq. ft, catering to a variety of consumer needs. Furtherthey are classified into localized departments such as clothing, toys, home, groceries, etc.Hyper marts/Supermarkets:Large self service outlets, catering to varied shopper needs are termed as Supermarkets. Theseare located in or near residential high streets. These stores today contribute to 30% of all food &grocery organized retail sales. Super Markets can further be classified into mini supermarketstypically 1,000 sq ft to 2,000 sq ft and large supermarkets ranging from of 3,500 sq ft to 5,000 sqft. having a strong focus on food & grocery and personal sales.Convenience Stores:These are relatively small stores 400-2,000 sq. feet located near residential areas. They stock alimited range of high-turnover convenience products and are usually open for extended periodsduring the day, seven days a week. Prices are slightly higher due to the convenience premium.MBO’s:Multi Brand outlets, also known as Category Killers, offer several brands across a single productcategory. These usually do well in busy market places and Metros.E-trailers:Retailers providing online buying and selling of products and services. Page 6 of 67
  12. 12. [II] Company ProfileBig Bazaar is a chain of hypermarket in India. As of June 2, 2012 there are 214 stores across 90 citiesand towns in India covering around 16 million sq.ft. of retail space. Big Bazaar is designed as anagglomeration of bazaars or Indian markets with clusters offering a wide range of merchandise includingfashion and apparels, food products, general merchandise, furniture, electronics, books, fast food andleisure and entertainment sections.Big Bazaar is part of Future Group, which also owns the Central Hypermarket, BrandFactory, Pantaloons, eZONE, HomeTown, futurebazaar.com, KBs Fair Price to name a few and is ownedthrough a wholly owned subsidiary of Pantaloon Retail India Limited, that is listed on Indian stockexchanges.HistoryBig Bazaar was launched in September, 2001 with the opening of its first four storesin Calcutta, Indore, Bangalore and Hyderabad in 22 days. Within a span of ten years, there are now 161Big Bazaar stores in 90 cities and towns across India.Big Bazaar was started by Kishore Biyani, the Group CEO and Managing Director of Pantaloon RetailIndia. Though Big Bazaar was launched purely as a fashion format including apparel, cosmetics,accessory and general merchandise, over the years Big Bazaar has included a wide range of products andservice offerings under their retail chain. The current formats includes Big Bazaar, Food Bazaar,Electronic Bazaar and Furniture Bazaar. The inspiration behind this entire retail format wasfrom Saravana Stores, a local store in T. Nagar, Chennai Page 7 of 67
  13. 13. The stores are customized to provide the feel of mandis and melas while offering the modern retailfeatures like Quality, Choice and Convenience. As the modern Indian familys favorite retail store, BigBazaar is popularly known as the "Indian Wal-Mart".On successful completion of ten years in Indian retail industry, in 2011, Big Bazaar has come up a newlogo with a new tag line: ‘Naye India Ka Bazaar’, replacing the earlier one: Isse Sasta Aur Accha KahinNahin.Lines of Business of the Above Store  E-tailing  Food  Fashion  Home Solution  General Merchandise  Leisure and Entertainment  Wellness and Beauty  Books and Music  Footwear  Electronics  Children Accessories  Crockery.OperationsMost Big Bazaar stores are multi-level and are located in stand-alone buildings in city centers as well aswithin shopping malls. These stores offer over 200,000 SKUs in a wide range of categories led primarilyby fashion and food products.Food Bazaar, a supermarket format was incorporated within Big Bazaar in 2002 and is now presentwithin every Big Bazaar as well as in independent locations. A typical Big Bazaar is spread acrossaround 50,000 square feet (4,600 m2) of retail space. While the larger metropolises have Big BazaarFamily centers measuring between 75,000 square feet (7,000 m2) and 160,000 square feet (15,000 m2),Big Bazaar Express stores in smaller towns measure around 30,000 square feet (2,800 m2).Big Bazaar has the facility to purchase products online through its official web page, and offers freeshipping on some of their products Page 8 of 67
  14. 14. Time Line2001 Three Big Bazaar stores launched within a span of 22 days in Kolkata, Bangalore and Hyderabad.2002 Big Bazaar - ICICI Bank Card is launched. Food Bazaar becomes part of Big Bazaar with the launch of the first store in Mumbai at High Street Phoenix2003 Big Bazaar enters Tier II cities with the launch of the store in Nagpur Big Bazaar welcomes its 10 million-th customer at its new store in Gurgaon.2004 Big Bazaar wins its first award and national recognition. Big Bazaar and Food Bazaar awarded the country’s most admired retailer award in value retailing and food retailing segment at the India Retail Forum A day before Diwali, the store at Lower Parel becomes the first to touch Rs 10 million turnover on a single day2005 Initiates the implementation of SAP and pilots a RFID project at its central warehouse in Tarapur Launches a unique shopping program: the Big Bazaar Exchange Offer, inviting customers to exchange household junk at Big Bazaar Electronic Bazaar and Furniture Bazaar are launched Big Bazaar and ICICI Bank launched ICICI Bank-Big Bazaar Gold credit card program to reward its loyal customers.2006 Mohan Jadhav sets a national record at Big Bazaar Sangli with a Rs 1,37,367 shopping bill. The Sangli farmer becomes Big Bazaar’s largest ever customer. Big Bazaar launches Shakti, India’s first credit card program tailored for housewives Navaras – the jewellery store launched within Big Bazaar stores2007 The 50th Big Bazaar store is launched in Kanpur Big Bazaar partners with Futurebazaar.com to launch Indias most popular shopping portal Big Bazaar initiates the "Power of One" campaign to help raise funds for the Save The Children India Fund Pantaloon Retail wins the International Retailer of the Year at US-based National Retail Federation convention in New York and Emerging Retailer of the Year award at the World Retail Congress held in Barcelona. Page 9 of 67
  15. 15. 2008 Big Bazaar becomes the fastest growing hypermarket format in the world with the launch of its 101st store within 7 years of launch Big Bazaar dons a new look with a fresh new section, Fashion@Big Bazaar Big Bazaar joins the league of India’s Business Super brands. It is voted among the top ten service brands in the country in the latest Pitch-IMRB international survey Big Bazaar initiated the Mega Saving "Monthly Bachat Bazaar" campaign, to provide exceptional deals on groceries and food items during the first week of every month.2009 Big Bazaar opens its second store in Assam at Tinsukia Big Bazaar initiates Maha Annasantarpane program at its stores in South India – a unique initiative to offer meals to visitors and support local social organizations Big Bazaar captures almost one-third share in food and grocery products sold through modern retail in India Mahendra Singh Dhoni and Asin, youth icons of India, were chosen as the brand ambassadors of Big Bazaar Big Bazaar announced the launch of The Great Exchange Offer Formed a joint venture with Hidesign to launch Holii, a new brand of handbags, laptop bags and other accessories.2010 Future Value Retail Limited is formed as a specialized subsidiary to spearhead the group’s value retail business through Big Bazaar, Food Bazaar and other formats. Big Bazaar wins CNBC Awaaz Consumer Awards for the third consecutive year. Adjudged the Most Preferred Multi Brand Food & Beverage Chain, Most Preferred Multi Brand Retail Outlet and Most Preferred Multi Brand One Stop Shop Big Bazaar connects over 30,000 small and medium Indian manufacturers and entrepreneurs with around 200 million customers visiting its stores Big Bazaar opens its third store in Kanpur at Z Square Mall Big Bazaar opens its fourth store in Kanpur at Jajmau which is the largest leather tannery garrison of Asia Vidya Balan was chosen as the brand ambassador of Big Bazaars Price Challenge exercise Ranked 6 among the Top 50 Service Brands in India.2011 Big Bazaar forays into the rural wholesale and distribution business through ‘Aadhaar Wholesale’ store at Kalol, Gujarat. Big Bazaar has come up a new logo with a new tag line: ‘Naye India Ka Bazaar’. 200th store opened in India Future Group has launched its latest venture, Foodhall – a premium food destination across 10 metros in India For the convenience of the online customers, Big Bazaar has started free shipping on all orders above Rs. 1000 Page 10 of 67
  16. 16.  Entered into an agreement with Hindustan Unilever to co-develop and co-brand bakery products, which would be sold exclusively at Big Bazaar stores.2012  Big Bazaar entered into a five year multi-million dollar deal with Cognizant Technology Solutions for IT infrastructure services that support Future Groups network of stores, warehouses, offices, and data centers.  Partnered with Disney to launch "Kidz Cookies", exclusively for kids across India.  Big Bazaar is planning to add further value to its retail services by offering Value added services like grinding, de-seeding, vegetables cutting at free of cost.Mission & Values Mission Values  We share the vision and belief that our  Indianness: Confidence in ourselves. customers and stakeholders shall be served only by creating and executing future scenarios in the  Leadership: To be a leader, both in thought and consumption space leading to economic business. development.  Respect & Humility: To respect every  We will be the trendsetters in evolving delivery individual and be humble in our conduct. formats, creating retail realty, making consumption affordable for all customer  Introspection: Leading to purposeful thinking. segments – for classes and for masses.  Openness: To be open and receptive to new  We shall infuse Indian brands with confidence ideas, knowledge and information. and renewed ambition.  Valuing and Nurturing Relationships: To  We shall be efficient, cost- conscious and build long term relationships. committed to quality in whatever we do.  Simplicity & Positivity: Simplicity and  We shall ensure that our positive attitude, positivity in our thought, business and action. sincerity, humility and united determination shall be the driving force to make us successful.  Adaptability: To be flexible and adaptable, to meet challenges.  Flow: To respect and understand the universal laws of nature. Page 11 of 67
  17. 17. [III] Review of Literature1. WHAT IS THE MEANING OF MARKETING?Marketing is "the activity, set of institutions, and processes for creating, communicating, delivering, andexchanging offerings that have value for customers, clients, partners, and society at large."Marketing is a management process or social process or an effective communication throughwhich goods and services move from concept to the customer and companies create value for customersand build strong customer relationships in order to capture value from customers in return, and alsoidentifying, anticipating and satisfying customer requirements profitably. It includes the coordination offour elements called the 4 Ps of marketing:(1) identification, selection and development of a product,(2) determination of its price,(3) selection of a distribution channel to reach the customers place, and(4) development and implementation of a promotional strategy.For business to consumer marketing, it is "the process by which companies create value for customersand build strong customer relationships, in order to capture value from customers in return". For businessto business marketing it is creating value, solutions, and relationships either short term or long term witha company or brand. It generates the strategy that underlies sales techniques, business communication,and business developments. It is an integrated process through which companies build strong customerrelationships and create value for their customers and for themselves.Marketing is used to identify the customer, satisfy the customer, and keep the customer. With thecustomer as the focus of its activities, marketing management is one of the major components of businessmanagement. Marketing evolved to meet the stasis in developing new markets caused by maturemarkets and overcapacities in the last 2-3 centuries. The adoption of marketing strategies requiresbusinesses to shift their focus from production to the perceived needs and wants of their customers as themeans of staying profitable.As a philosophy, marketing is based on thinking about the business in terms of customer needs andtheir satisfaction. Marketing differs from selling because (in the words of Harvard BusinessSchools emeritus professor of marketing Theodore C. Levitt) "Selling concerns itself with the tricksand techniques of getting people to exchange their cash for your product. It is not concerned withthe values that the exchange is all about. And it does not, as marketing invariably does, view theentire business process as consisting of a tightly integrated effort to discover, create, arouse, and satisfycustomer needs."There is even more confusion about what constitutes "marketing." Marketing entails several functionsthat include:[*]Developing the products or services that customers want.[*]Pricing the products or services correctly. Page 12 of 67
  18. 18. [*]Making the products or services readily available to the customers.[*]And finally: Promoting the product or service, which if done correctly, not only convinces customersthat the product or service is preferable to its competition, but that it is clearly the only choice. This isthe field of marketing "communications" and of all the marketing components, it is the one most likely tobe outsourced and the one most likely to be neglected if a company is making a profit.2. IMPORTANCES OF MARKETING1. Marketing communications creates "top of mind" awarenessAll you have to do is watch TV for a few hours (and actually watch the commercials) to get a sense ofhow repetition of the same message starts to creep into your subconscious mind. After youve seen 5commercials for those cute, new VWs, you suddenly find yourself daydreaming about going carshopping. After all, that Suburban IS almost 8 years old, and of course you want a vehicle thats morefuel efficient! I know this isnt a manufacturing or industrial scenario, but trust me - the same underlyingpsychological phenomenon occurs in the case of industrial marketing. An integrated marketingcommunications plan that gets your messaging out to the right target audience, consistently and overtime, WILL eventually create the "top of mind" awareness for your product or service that turns aprospect into a customer. Recognition and awareness for your company also make it much easier foryour sales staff to get someone on the phone or schedule an appointment. Companies like to do businesswith companies they "know" and have positive perceptions of. Likewise, investors like to buyrecognized companies.2. Preferred brands command a premium price - short and long-termGo through a process of determining your companys unique value proposition, and then startpurposefully communicating that to the marketplace (promotion.) This is the only way you will create apoint of differentiation between you and your competitors. As your customers and the industries you sellto begin to recognize your company (brand) as the preferred choice for a certain product or service, itallows you to charge premium pricing. Not only does this boost sales in the "now," it creates a perceptionin the minds of future investors that your business has more value than another one that claims to do thesame thing.3. Happy customers not only send referrals, they create perceived valueEvery sales person knows it, but businesses still hammer them to get out and develop "new" business: themost powerful form of lead generation comes in the form of an existing happy customer. Happycustomers talk to other potential customers, even in the industrial world. I talk to manufacturers everyday that tell me a good percentage of their new business comes through referrals from satisfiedcustomers. It takes more than the experiences with your company to make a satisfied customer - one whois willing to be an evangelist, of sorts. It also takes a marketing strategy that positions your company (inthe minds of your target audience) as the market leader in overall customer satisfaction and intimacy. Its Page 13 of 67
  19. 19. part of the image you build around your brand - its the magic result of well executed brand developmentand marketing communications. Word of mouth praise for your company not only attracts morebusiness, it attracts potential investors that want to own a company with this kind of status.4. Planned marketing communications create a system that can be replicatedI have clients that have their marketing communications planning and implementation down to a science.A meeting in the Fall determines the focus for the following years marcomm initiatives. Budgets areallocated; tactics agreed upon; responsibilities delegated; and contracts negotiated. The result iscontinued momentum in building brand awareness and credibility, and a rather flawless execution. Thisprocess is one that can be documented and taught like a system. In any manufacturing or industrialservice company, documented processes lend to the overall impression of the business stability andvalue. If a potential buyer can see how they too could operate the systems within your company, evenafter you are long gone, youll be creating a more marketable asset. If you need to, hire an expert: butstart creating and documenting a marketing communications system that you can teach others to run andremove yourself from the lead generation game.5. Repeat revenue streams ensure a profit now and laterThis really falls more into the other marketing functions than that of communications, but a smart marketing strategy not only focuses on a companys core market and value proposition, it also finds waysto build multiple channels for recurring revenue. Smart marketers (and business owners) look for waysto diversify their offerings and especially in areas where repeat sales require little to no effort on the partof the sales team. With the Internet, this is more possible than ever before; particularly if you sell aproduct that is not custom engineered, or a service that can be easily classified without a lot ofcustomization. Recurring revenue, generated from an effective marketing strategy, and teamed with astellar customer service approach is a combination that is very attractive to a potential new owner.6. Nothing lasts forever: marketing has to be a long-term investmentHere in Houston, where I live, getting into the "good ole boy network" was the way an industrialbusiness succeeded in the last half of the 20th century. Todays upper management is not concerned withwho you know and what clubs you belong to. They want to know how youre going to help them meettheir objectives and solve their problems. Relationships developed over time will get you so far; butwhat about the increase in career moves and job-hopping? What happens when the person you developeda relationship with moves to another company and isnt in a position to specify what you sell? Whathappens when the person you developed a relationship with retires and is replaced with someone muchyounger? What happens when YOU are ready to retire? Will there be someone there who can step intoyour shoes and carry your company through that transition without losing customers?The way to prevent a negative outcome in any of these scenarios is a consistent marketingcommunications program. If youre keeping your companys name out there and building brand identityand recognition, you have less of an educational process to deal with every time a new person isintroduced to your business. This also comes into play with young people just entering the work force.The senior engineer at your top customer may love your product; the new hot shot engineer fresh out of Page 14 of 67
  20. 20. college doesnt know anything about it - UNLESS theyve already been exposed to it through Professors,the Internet, trade publications, trade shows, etc. Consistent and persistent messaging, going to anintegrated mix of contact points with your customers and prospects, is an investment in your companyslong-term stability and value.7. Employees who are "brand ambassadors" sell your company - to customers AND potentialbuyersToday, marketing is not just something you do "outside" of your company. If you truly want to create apowerful image and value proposition for your business, the first group of people you have to convinceare your own employees. Internal brand integration is just as important as your external marketingstrategies. Every employee in your company should understand how their position contributes to thepromise your company makes to its customers and be motivated to carry it out. Understanding theirunique role in your companys brand promise is just the beginning; if you want brand ambassadors, youneed happy employees. An employee that feels appreciated and fairly compensated (and that doesntalways equate to their salary) is much more likely to sing the praises of your company. I think it goeswithout saying, this is good for business today as well as making an impression on a future investor.Who wants to buy a company full of overworked, disgruntled employees?Marketing IS a long term investment. You will not create a recognizable brand (name, image, reputation,etc.) without it. You will not develop a stable, growing business without it. You will not beat the "leadgeneration" game without it. You will not create "brand ambassadors" among your employees withoutit. You will not create a company that has obvious value to a potential buyer without it. Marketing isessential to the health and continuing prosperity of any business - including manufacturing and industrialbusinesses. So what are you waiting for?3. RETAIL MARKETINGThrough the years retailing has evolved, competition has gotten stiff and therefore marketing has becomemore integral in the direct selling of wares. From specialty mom-and-pop shop to mass-merchants, themethods by which stores are getting their products into the hands of customers are evolving. Becausecustomers have more choices, stores have to reach them with advertising, entice them with promotions,and secure them with branding—hence the ever-growing need for marketing in retail outlets.Advertising There are two main functions of advertisements: to sell more products, and to inform the customer.Through newspaper, TV, radio and internet advertisements, retailers can inform their customers of thesales, promotions and in-store events. Moreover, since the media is flooded with advertisements, theability to create a more eye-catching or attention-grabbing ad directly influences sales. Stores thatadvertise--as opposed to those that don’t--are kept at the top of their potential shoppers’ mind, which canproduce sales in the short and long term. Page 15 of 67
  21. 21. In-Store Promotions Stores use promotions to prompt impulse buying behavior. A shopper may not intend to buy aproduct, but if there is a promotion, there is an incentive for immediate action. For example, a shoppermay not need another dress shirt, but might still buy one if it is on sale. Additionally, promotions canprompt consumers to recall a product and thus instigate a purchase. Retailers also use promotionalperiods-- corresponding with national holidays or well-know sales times--to sell off the previous season’smerchandise. Promotional periods spike sales, and are a way retailers can reduce the loss of unsoldinventory.In-Store Atmosphere and Customer Relations Store design and consumer relationship marketing (CRM) directly affected the way customerspurchase and retain goods. Things like the atmosphere, music, store layout, sales help, and post-purchasesupport can influence things like shopping time (the longer they shop, the more likely they are to buy),and how gratified they feel with their purchase. The more content a buyer is with their shoppingexperience, the more likely they are to buy merchandise, and the less likely they are to return it.Branding Retail Outlets It is necessary for retailers to develop their brand in order to stand out amongst the many other stores.With local boutiques, specialty stores, department stores, mass-merchants and internet stores, customershave more choices when it comes to buying. There is competition within each category, and competitionbetween categories. For example, a local boutique selling dress shirts is competing with other localboutiques, and also with the mass-merchant who might be selling dress shirts at a cheaper price. It istherefore necessary for the boutique to create a brand position that a customer can identify with, to keepthem loyal.Private Labeling Solidifying a retail brand’s private label is the apex of the retail marketing evolution--and the mostrecent trend in high-end retailing. This is not a new concept for low- to mid-priced retail outlets, aseverything from food to raincoats have been put under their brands name. But whats new is stores thatbuild their brand to the point where they can sell merchandise at a premium price. Doing so is more costeffective: they can reduce the costs associated with buying other brand names, source cheaper goods fromprivate manufacturers and reap higher profits. As an added bonus, stores benefit from consumer loyaltyto their stores and their products.Salespeople Personal selling is a more direct approach to marketing. Retailers that sell higher-end products orpromote themselves as tops in service often employ more active sales personal. Companies that sellhigher-end products often have to rely on salespeople to help customers understand the benefits of payingmore for better value. Salespeople can also make add-on or cross-sales for more revenue.4. What is Marketing Mix?The marketing mix is a business tool used in marketing products. The marketing mix is often crucialwhen determining a product or brands unique selling point (the unique quality that differentiates a Page 16 of 67
  22. 22. product from its competitors), and is often synonymous with the four Ps: price, product, promotion,and place; in recent times, however, the four Ps have been expanded to the seven Ps.5. Marketing Mix of Big BazaarProduct:Big Bazaar offers a wide range of products which range from apparels, food, farm products,furniture, child care, toys, etc of various brands like Levis, Allen Solly, Pepsi, Coca- Cola, HUL, ITC,P&G, LG, Samsung, Nokia, HP etc.Big Bazaar also promotes a number of in house brands like: o DJ & C o Tasty Treat o Clean Mate o Sensei o Care Mate o Koryo and 44 other brands.Pricing:The pricing objective at Big Bazaar is to get “Maximum Market Share”. Pricing at Big Bazaar is basedon the following techniques:  Value Pricing (EDLP – Every Day Low pricing): Big Bazaar promises consumers the lowest available price without coupon clipping, waiting for discount promotions, or comparison shopping.  Promotional Pricing: Big Bazaar offers financing at low interest rate. The concept of psychological discounting (Rs. 99, Rs. 49, etc.) is also used to attract customers. Big Bazaar also caters on Special Event Pricing (Close to Diwali, Gudi Padva, and Durga Pooja).  Differentiated Pricing: Differentiated pricing i.e. difference in rate based on peak and non-peak hours or days of shopping is also a pricing technique used in Indian retail, which is aggressively used by Big Bazaar. e.g. Wednesday Bazaar.Bundling: It refers to selling combo-packs and offering discount to customers. The combo-packs addvalue to customer and lead to increased sales. Big Bazaar lays a lot of importance on bundling.e.g. 3 Good Day family packs at Rs 60(Price of 1 pack = Rs 22)5kg oil + 5kg rice + 5kg sugar for Rs 599. Page 17 of 67
  23. 23. Place:The Big Bazaar stores are operational across three formats — hypermarkets spread over 40,000-45,000sq ft, the Express format over 15,000-20,000 sq ft and the Super Centers set up over 1 lakh sq ft.Currently Big Bazaar operates in over 34 cities and towns across India with 116 stores. Apart from theMetros these stores are also doing well in the tier II cities. These stores are normally located in hightraffic areas. Big Bazaar aims at starting stores in developing areas to take an early advantage before thereal estate value booms. Mr. Biyani is planning to invest around Rs 350 crore over the next one yearexpansion of Big Bazaar. In order to gain a competitive advantage Big Bazaar has also launched awebsite www.futurebazaar.com, which helps customers to orders products online which will be deliveredto their doorstep. This helps in saving a lot of time of its customers.Promotion:The various promotion schemes used at Big Bazaar include:  “Saal ke sabse saste 3 din”  Hafte ka sabse sasta din “Wednesday bazaar”  Exchange Offers “Junk swap offer”  Future card(3% discount)  Shakti card  Advertisement (print ad, TV ad, radio)  Brand endorsement by M.S Dhoni and Asin  Big Bazaar has come up with 3 catchy lines written on hoardings taking on biggies like Westside, Shoppers stop and Lifestyle. They are:  “Keep West- aSide. Make a smart choice!”  “Shoppers! Stop. Make a smart choice!”  “Change your Lifestyle. Make a smart choice!”People:  Well trained staff at stores to help people with their purchases  Employ close to 10,000 people and employ around 500 more per month.  Well-dressed staff improves the overall appearance of store.  Use scenario planning as a tool for quick decision making multiple counters for payment, staff at store to keep baggage and security guards at every gate, makes for a customer-friendly atmosphere.Process:Big Bazaar places a lot of importance on the process right from the purchase to the delivery of goods.When customers enter the stores they can add the products they which to purchase in their trolley from Page 18 of 67
  24. 24. the racks. There are multiple counters where bill can be generated for purchases made. Big Bazaar alsoprovides delivery of products over purchases of Rs. 1000.Physical Evidence:Products in Big Bazaar are properly stacked in appropriate racks. There are different departments in thestore which display similar kind of products. Throughout the store there are boards/written displays putup which help in identifying the location of a product. Moreover boards are put up above the productswhich give information about the products, its price and offers. Big Bazaar stores are normally ‘Ushaped’ and well planned & designed. Marketing Mix concept Image6. WHAT IS CONSUMER SATISFACTION?Satisfaction is an overall psychological state that reflects the evaluation of a relationship between thecustomer/consumer and a company-environment-product-service. Satisfaction involves one of thefollowing three psychological elements: cognitive (thinking/evaluation), affective (emotional/feeling),and behavioral. "Satisfaction" itself can refer to a number of different facts of the relationship with acustomer. For example, it can refer to any or all of the following: Satisfaction with the quality of a particular product or service Satisfaction with an ongoing business relationship Satisfaction with the price-performance ratio of a product or service Satisfaction because a product/service met or exceeded the customers expectations The achievement of customer satisfaction leads to company loyalty and product repurchase. There aresome important implications of this definition: Page 19 of 67
  25. 25. Because customer satisfaction is a subjective, non-quantitative state, measurement wont be exact andwill require sampling and statistical analysis. Customer satisfaction measurement must be undertaken with an understanding of the gap betweencustomer expectations and attribute performance perceptions. There should be some connection between customer satisfaction measurement and bottom-line results.Customer satisfaction is influenced by perceived quality of product and service attributes, features andbenefits, and is moderated by customer expectations regarding the product or service. Each of theseconstructs that influence customer satisfaction need to be defined by the researcher.7. EXPECTATIONS AND CONSUMERS SATISFACTIONExpectations are beliefs (likelihood or probability) that a product/service (containing certain attributes,features or characteristics) will produce certain outcomes (benefits-values) given certain anticipatedlevels of performance based on previous affective, cognitive, and behavioral experiences. Expectationsare often seen as related to satisfaction and can be measured as follows:1. IMPORTANCE: Value of the product/service fulfilling the expectation.2. OVERALL AFFECT—SATISFACTION EXPECTATIONS: Like / Dislike of the product/service.3. FULFILLMENT OF EXPECTATIONS: The expected level of performance vs. the desired expectations. This is “Predictive Fulfillment” and is a respondent-specific index of the performance level necessary to satisfy.4. EXPECTED VALUE FROM USE: Satisfaction is often determined by the frequency of use. If a product/service is not used as often as expected, the result may not be as satisfying as anticipated. For Page 20 of 67
  26. 26. example a motorcycle that sits in the garage, an unused year subscription to the local fitness center/gym, or a little used season pass to a ski resort would produce more dissatisfaction with the decision to purchase than with the actual product/service.8. Objectives of a Consumers Satisfaction surveying program In addition to a clear statement defining customer satisfaction, any successful surveying program musthave a clear set of objectives that, once met, will lead to improved performance. The most basicobjectives that should be met by any surveying program include the following: Understanding the expectations and requirements of all your customers Determining how well your company and its competitors are satisfying these expectations andrequirements Developing service and/or product standards based on your findings Examining trends over time in order to take action on a timely basis Establishing priorities and standards to judge how well youve met these goals Before an appropriate customer satisfaction surveying program can be designed, the following basicquestions must be clearly answered: How will the information we gather be used? How will this information allow us to take action inside the organization? How should we use this information to keep our customers and find new ones? Customer Satisfaction Measurement Facts A 5-percent increase in loyalty can increase profits by 25%-85%. A very satisfied customer is nearly six times more likely to be loyal and to repurchase and/or recommend your product than is a customer who is just satisfied. Only 4 percent of dissatisfied customers will complain. The average customer with a problem eventually tells nine other people. Satisfied customers tell five other people about their good treatment. Page 21 of 67
  27. 27. 9. Why is Customer Satisfaction So Important?Effective marketing focuses on two activities: retaining existing customers and adding new customers.Customer satisfaction measures are critical to any product or service company because customersatisfaction is a strong predictor of customer retention, customer loyalty and product repurchase.10. Innovations of Big-Bazaar to satisfied and attract customersWednesday Bazaar:Big Bazaar introduced the Wednesday Bazaar concept and promoted it as “Hafte Ka Sabse Sasta Din”. Itwas mainly to draw customers to the stores on Wednesdays, when least number of customers areobserved. According to the chain, the aim of the concept is "to give homemakers the power to save themost and even the stores in the city don a fresh look to make customers feel that it is their day".Sabse Sasta Din:With a desire to achieve sales of Rs 26 Crore in a one single day, Big Bazaar introduced the concept of"Sabse Sasta Din". The idea was to simply create a day in a year that truly belonged to Big Bazaar. Thiswas launched on January 26, 2006 and the result was exceptional that police had to come in to control themammoth crowd. The concept was such a huge hit that the offer was increased from one day to threedays in 2009 (24 to 26 Jan) and to five days in 2011 (22-26 Jan).Maha Bachat:Maha Bachat was started off in 2006 as a single day campaign with attractive promotional offers acrossall Big Bazaar stores. Over the years it has grown into a 6 days biannual campaign. It has attractive offersin all its value formats such as Big Bazaar, Food Bazaar, Electronic Bazaar and Furniture Bazaar -catering to the entire needs of a consumer. Page 22 of 67
  28. 28. The Great Exchange Offer:On February 12, 2009 Big Bazaar launched "The Great Exchange Offer", through with the customers canexchange their old goods in for Big Bazaar coupons. Later, consumers can redeem these coupons forbrand new goods across the nation.11. Loyalty Programs of Big Bazaar’s (A Step Towards Customers Satisfaction)Loyalty Programs:1. Pay-back CardAt Future Group Big Bazaar, we believe in building long-lasting relationships with customers. Weencourage repeat customer visits through our unique offers and special sale days.Future Group has taken the whole concept of customer loyalty to the next level by joining hands withPAYBACK. PAYBACK is India’s largest and one of Europe’s most successful multi-partner loyaltyprograms. With PAYBACK, customers can shop, save and get rewarded. This program enablesconsumers to collect millions of points across online and offline partners – with just a single card.Customers can accumulate points across Future Group formats , thereby making “shopping rewarding”.Our formats Big Bazaar, Food Bazaar, Pantaloons, Central, Home Town, eZone, Brand Factory andFuture Bazaar are a part of the PAYBACK Loyalty program. Page 23 of 67
  29. 29. Some Basic Information About Payback and Payback Card:1.What is PAYBACK ? a. PAYBACK is a unique loyalty program that lets you earn points for the daily activitiesyou do, like refueling, traveling, shopping, eating out, watching movies, flying etc. b. You can earn points by swiping your PAYBACK card at the time of payment with ourparticipating partners be it cash, cheque, credit or debit card. c. Points earned can be redeemed against fabulous rewards from the PAYBACK rewardscatalogue or at PAYBACK’s various in-store/retail store partners and online partners.2. What are the benefits of PAYBACK? a. PAYBACK is a multi partner rewards program where several merchants have cometogether to reward the customers for their continued relationship. b. It has a huge network of partners at national, regional and local levels. c. Members can accumulate points at a faster rate irrespective of their payment mode – cash,credit/debit card, or cheques across all the enrolled partners. d. PAYBACK points earned by a member across the various partners in the network getaccumulated under the same membership account thus ensuring the member accumulates points at afaster pace e. Accumulated points can be redeemed against an extensive reward catalogue with a varietyof rewards to choose from. The points can also be used as a payment option at many PAYBACKpartners.3. What are my eligibility criteria to become a member of PAYBACK? The eligibility criteria to become a PAYBACK member are: a. One should be above the age of 18years; and b One should have a mailing address in India4. What is a PAYBACK card? a. A PAYBACK card is your membership card to the PAYBACK loyalty program b. It uniquely identifies every member with his/her membership/card number Page 24 of 67
  30. 30. c. It is not a payment instrument like credit or debit cards d. It enables you to earn points from our various partners.5. How can I get a PAYBACK Card / Membership? You can get a free membership by enrolling into the PAYBACK program on our website. Youwould get a unique 16 digit card number. A new card will be shipped to you within 14 working days.You can also collect your PAYBACK card across the counter in any of the retail stores enrolled withPAYBACK.6. How long is my PAYBACK Card valid? PAYBACK membership card is valid for lifetime. However if you have the old i-mint card, it isvalid for 10 years only. You can call us and request for a new PAYBACK card, which will be valid forlifetime.7. How do I earn PAYBACK points? Earning PAYBACK points is easy. After you get your PAYBACK card number: a. Spot the PAYBACK logo at the transacting outlet or visit our online partners to earnpoints by quoting the PAYBACK card number. Please visit our website to know more about ourparticipating partners b. Please allow a maximum time period of 45 working days for points to get credited to yourPAYBACK membership account. c. You can make use of our power of multiplicity benefit by making transaction withdifferent partners from a same source and yet earn points from all of them.8. How do I login to my new PAYBACK account? Log on to www.payback.in and enter your 16 digit PAYBACK Number / Username to view yourpoints balance and activate coupons. To update your profile or redeem PAYBACK points, please enteryour 4-digit PIN. PIN is a 4 digit numeric value which needs to be typed in to access your PAYBACK account. Forall the existing PAYBACK account holders, PIN will be set to your Date of Birth (DDMM – Date &Month) as shown in the example below. You will have to change your default PIN/DDMM to a new PINon your first login. Page 25 of 67
  31. 31. Example: Registered DOB with PAYBACK – 6th May 1985 Default PIN – 06059. Why should I register my PAYBACK Card? You should register your PAYBACK card to avail all the benefits of the program. Onceregistered, you will be able to check your point balance and you will be able to redeem your PAYBACKpoints for rewards from our website. To register please visit our website.10. How can I redeem my PAYBACK points? a. Identify the product from the rewards catalogue on our website and then you can eitherredeem your PAYBACK points on our website or call our Contact Center and mention the item code ofthe product. b. Or, you can redeem your PAYBACK points to make payments at our PAYBACK retailstore partners who accept redemption at the store. c. Or, you can redeem your PAYBACK points to make payment at our PAYBACK onlineredemption enabled partners.11. How do I register online? a. Visit our website www.payback.in b. Enter your 16-digit PAYBACK card number into the top right corner login box and clickLogin. c. You will be taken to the registration page. Complete the registration form with yourpersonal details to register and use your PAYBACK account.12. What is the benefit of using the online account? a. View and manage your PAYBACK points online b. View and edit your personal details Page 26 of 67
  32. 32. c. Access our rewards catalogue and place redemption orders online d. Contact us directly via our Website13. Who are our partners? We are tied up with 4 national partners –Big Bazaar, ICICI Bank, HPCL andwww.makemytrip.com and many more partners in your city and online. To get more information, pleasevisit the Partners section on our website.14. How can I keep a track of my PAYBACK points? You can track and manage your PAYBACK points by registering on our website or by calling ourContact Center or by sending SMS PBBAL < space > < last four digits of your PAYBACK card number> to 9212146468 from your registered mobile number(National SMS charges apply).16. What is the number of your Contact Center and what are their working hours? PAYBACK Contact Center Number: 1860-258-5000 (Local call charges apply) PAYBACK Contact Center is open from 10:00 AM to 9:00 PM.17. What information is available on my PAYBACK card? PAYBACK card will have the following information, . 16 digit card number . PAYBACK Contact Center Details . Barcoding of the card information In addition to the PAYBACK card, we also have partner branded cards. For more details pleasevisit our website. Page 27 of 67
  33. 33. 18. What kinds of products are available to redeem my PAYBACK points? You can choose rewards from a wide variety of categories from the PAYBACK rewards catalogEach reward requires a certain number of points available in your account to redeem.. You can choosethe reward corresponding to the available points in your account and place the redemption order.19. What if in case I receive a wrong or damaged product? This would not occur as we always commit ourselves in delivering the right product. If in case ithappens, you can call our Contact Center within 7 days from the receipt of the product and we would re-ship the right product to your mailing address.20. How can I cancel my PAYBACK membership/account? A member may terminate his/her PAYBACK membership by calling the Contact Center andrequesting for termination. Post cancellation of membership the PAYBACK points already earned and tobe earned will continue to be purged and not refunded back to the member. Therefore, please ensure toredeem your points before cancelling the membership.21. How to reactivate my account? Your account can be reactivated within 30 days from the date of cancellation by calling ourContact Center and placing a request for the same.2. T24 ProgramT24 will provide customers with a dual advantage all 24 hours of the day—‘Shop More, Talk More’ and‘Talk More, Shop More’.Shopping and talking on our mobile phones are among the two favorite activities for all of us in India.With T24, we have been able to develop a unique customer value proposition that combines theseinterests of the aspirational Indian. Customers will get shopping benefits for talking and talk-timebenefits each time they shop.We believe that with our partners, Tata Teleservices Limited, we have been able to develop adifferentiated offering in the crowded telecom space and also increase the loyalty we enjoy among themillions of customers who patronize our stores.T24 (Talk 24) tariff plans reflect the competitive per-second rates being offered for pre-paid customerson Tata Teleservices Limited’s GSM network. In addition, customers will be rewarded with free talk-time for every purchase at Future Group Stores starting at Rs.10 to a maximum of Rs.350. Plans willkeep evolving to offer ever-more attractive options to the customer. Page 28 of 67
  34. 34. Additional Features • Improved & Easy Navigation in the stores. • There is a display board in the store where you’ll find different products in different places so that finding products is no more problem for you. • Shopping accessories(trolley/baskets/bags) are always available in the store to make your shopping so comfortable. • There are first-aid desk in the store. • Clean space for moving into the store. • All sales persons are very helpful & ready to help you always. • All cash counter (12-15) are always open. So you don’t have to wait in front of the cash counter for billing. • Moderate Environment in the store, like Music/Aroma, so that you can enjoy your shopping. • Wheel Chair available in the store for Handicapped & Pregnant women. • Tight Security system in the store. Emergency exit available. • Fire protected store (fire prevention equipments are implemented in the stores). • Drinking Water/Wash Room available for the consumers. • There are places where you can seat and enjoy food in the food court. • Varieties of foods are available in the food court. Page 29 of 67
  35. 35. [IV] Research MethodologyA. Sources of Data for Marketing StrategiesThere are two types of data we have collected: 1. Primary Data & 2. Secondary Data.  Primary Data was collected from discussion with the Big Bazaar’s Corporate Managers and others stuff of Kolkata Zonal Office, HomeTown, RajarHaat.  Secondary Data was collected from Internet.B. Sources of Data for Consumers SatisfactionThere are two types of data we have collected: 1. Primary Data & 2. Secondary Data.  Primary Data was collected from the feedback of the customers/consumers of Big Bazaar with the help of questionnaire.  Secondary Data was collected from Internet.Research Objectives1. Primary Objectives:  To identify performance of store operation.  To understanding the buying behavior at Big Bazaar.  To analyze how the merchandising mix influence consumer satisfaction level.  To analyze how active Big Bazaar’s Marketing Strategies & hoe they attract customers.  To understand how Big Bazaar convert ‘Customers’ in ‘Consumers’.2. Secondary Objectives:  To understand the quality of service maintained in the store.  To determine the performance of sales persons in the store.  To find out reasons of dis-satisfaction.  To find out which means of communication plays a vital role to persuade customer. Page 30 of 67
  36. 36. Scope and Uses 1. It will extend to the actual field study of these outlets in Kolkata. 2. It will give information to prospective customers. 3. It will give information about Big Bazaar’s Marketing Strategies, Marketing Mix/Retail Mix. 4. Help us gain independent knowledge about the consumer perception of the outlets identified. 5. The study can help the companies get additional research information. 6. It facilitates evaluation of brand name and customer satisfaction.Sampling for Consumers Satisfaction AnalysisSample Size – 200 customers/consumers.Sample Unit – Consumers in the age group 18 to 50 years.Questionnaire Sample for Consumers Satisfaction AnalysisDear Customer, NAME:_______________________________ OCCUPATION:_____________________CONTACT No.:________________________ AGE: 18-28 28-38 38-48 48-58 58-65 GENDER: Male Female 1. Do You Frequently Shop @ Big-Bazaar? (Options: Yes/No) 2. How Frequently You Shop @ Big-Bazaar? (Options: every week/once in 2 week/once in 3 week/once in a month.) Page 31 of 67
  37. 37. 3. What comes to your mind when you think about Big-Bazaar? (Options: Discount/Product Variety/Brand/Quality/Offers/Others)4. Do you feel you find different product variety in Big-Bazaar.(Options: Yes/No)5. Do you find the specific brand that you look in the Big-Bazaar? (Options: Yes/No)6. In which section you spend more time while shopping? (Options: Food-Bazaar/Apparels/Kitchen- Section/Electronics-Section/Children & Toys Section/Sports Section/Others).7. Are you satisfied with you product? (Options: Yes/No)8. Do you think this store has good parking facility? (Options: Yes/No)9. How would you rate the following in our store ambience? a) Music – Good/ok/Bad b) Temperature - Good/ok/Bad c) Lighting - Good/ok/Bad d) Cleanliness- Good/ok/Bad.10. How did you find the following qualities of our store staff? a) Courteousness - Good/ok/Bad b) Grooming - Good/ok/Bad c) Efficiency & Knowledge - Good/ok/Bad11. How would you rate the following in our Products? a) Range - Good/ok/Bad b) Prices - Good/ok/Bad c) Quality - Good/ok/Bad d) Availability - Good/ok/Bad.12. How would you rate the Navigation (Ease of moving around the store) in our store? (Options: Good/ok/Bad)13. How would you rate the Product Display, Finding any Product & Signage in our store? (Options: Good/ok/Bad) Page 32 of 67
  38. 38. 14. How would you rate the following in our store? b) Cashier interaction - Good/ok/Bad c) Cashier Speed - Good/ok/Bad d) Check out counter - Good/ok/Bad e) Customer Service Desk - Good/ok/Bad. f) Loyalty Program – Good/ok/Bad. g) Sales Persons - Good/ok/Bad.15. How was your overall experience? (Options: Good/ok/Bad)16. Would you visit Big-Bazaar again? (Options: Sure/Maybe/Never). Page 33 of 67
  39. 39. [v] Data Analysis A. Data Description for Marketing StrategiesMarketing Mix Analysis of Big BazaarProductBig Bazaar offers a wide range of products which range from apparels, food, farm products,furniture, child care, toys, etc of various brands like Levis, Allen Solly, Pepsi, Coca- Cola, HUL, ITC,P&G, LG, Samsung, Nokia, HP etc.Big Bazaar also promotes a number of in house brands like:  DJ & C Tasty Treat Clean Mate Sensei Care Mate Koryo and 44 other brands.PricingThe pricing objective at Big Bazaar is to get “Maximum Market Share”. Pricing at Big Bazaar is basedon the following techniques:  Value Pricing (EDLP – Every Day Low pricing): Big Bazaar promises consumers the lowestavailable price without coupon clipping, waiting for discount promotions, or comparison shopping. Promotional Pricing: Big Bazaar offers financing at low interest rate. The concept of psychologicaldiscounting (Rs. 99, Rs. 49, etc.) is also used to attract customers. Big Bazaar also caters on SpecialEvent Pricing (Close to Diwali, Gudi Padva, and Durga Pooja). Differentiated Pricing: Differentiated pricing i.e. difference in rate based on peak and non-peakhours or days of shopping is also a pricing technique used in Indian retail, which is aggressively used byBig Bazaar.e.g. Wednesday Bazaar  Bundling: It refers to selling combo-packs and offering discount to customers. The combo-packs addvalue to customer and lead to increased sales. Big Bazaar lays a lot of importance on bundling.e.g. 3 Good Day family packs at Rs 60(Price of 1 pack = Rs 22)5kg oil + 5kg rice + 5kg sugar for Rs 599 Page 34 of 67
  40. 40. PlaceThe Big Bazaar stores are operational across three formats — hypermarkets spread over 40,000-45,000sq ft, the Express format over 15,000-20,000 sq ft and the Super Centers set up over 1 lakh sq ft.Currently Big Bazaar operates in over 34 cities and towns across India with 116 stores. Apart from theMetros these stores are also doing well in the tier II cities. These stores are normally located in hightraffic areas. Big Bazaar aims at starting stores in developing areas to take an early advantage before thereal estate value booms. Mr. Biyani is planning to invest around Rs 350 crore over the next one yearexpansion of Big Bazaar. In order to gain a competitive advantage Big Bazaar has also launched awebsite www.futurebazaar.com, which helps customers to orders products online which will be deliveredto their doorstep. This helps in saving a lot of time of its customers.PromotionThe various promotion schemes used at Big Bazaar include:  “Saal ke sabse saste 3 din” Hafte ka sabse sasta din “Wednesday bazaar”. Public Holiday Sale. Exchange Offers “Junk swap offer”. Pay Back Card(Loyalty Program). Advertisement (print ad, TV ad, radio). Brand endorsement by M.S Dhoni and Asin. 6 Days Maha Bachat. Great Indian Kitchen Festival.People  Well trained staff at stores to help people with their purchases Employ close to 10,000 people and employ around 500 more per month. Well-dressed staff improves the overall appearance of store. Use scenario planning as a tool for quick decision making multiple counters for payment, staff atstore to keep baggage and security guards at every gate, makes for a customer-friendly atmosphere.ProcessBig Bazaar places a lot of importance on the process right from the purchase to the delivery of goods.When customers enter the stores they can add the products they which to purchase in their trolley from Page 35 of 67
  41. 41. the racks. There are multiple counters where bill can be generated for purchases made. Big Bazaar alsoprovides delivery of products over purchases of Rs. 1000.Physical EvidenceProducts in Big Bazaar are properly stacked in appropriate racks. There are different departments in thestore which display similar kind of products. Throughout the store there are boards/written displays putup which help in identifying the location of a product. Moreover boards are put up above the productswhich give information about the products, its price and offers. Big Bazaar stores are normally ‘Ushaped’ and well planned & designed.Marketing Strategies Analysis of Big Bazaar3-C TheoryAccording to Kishore Biyanis 3-C theory, Change and Confidence among the entire population isleading to rise in Consumption, through better employment and income which in turn is creating value tothe agricultural products across the country.[4] Big Bazaar has divided India into three segments: 1. India one: Consuming class which includes upper middle and lower middle class (14% of Indias population). 2. India two: Serving class which includes people like drivers, household helps, office peons, liftmen, washer men, etc. (55% of Indias population) and 3. India three: Struggling class (remaining 31% of Indias population).While Big Bazaar is targeted at the population across India one and India two segments, AadhaarWholesale is aimed at reaching the population in India three segment. With this, Group emerged as aretail destination for consumers across all classes in the Indian society.TARGET AUDIENCE * Big Bazaar targets higher and upper middle class & middle class customers. * The large and growing young working population is a preferred customer segment. * Targets specifically working women and home makers who are the primary decision makers.BIG BAZAAR-USP * Low price as compared to other places. * Schemes like Buy 1 gets 1 free, 20% discount etc. * 1 Billion Population. * Availability of Liquid Cash/Disposable Income among Young Generation. * Affordable man power. * Craze, Passion among Mr. Customer (Consumer). Page 36 of 67
  42. 42. * Different products under one roof.SPECIAL STRATEGIES * To minimize Retailing cost. * Operating: Fewer staff on the floor-one person for every 500 sq ft. * Minimize the Furniture cost. * Saving Shelf Space. * Way to deal unsold stock off. * “Today’s Price”: Everyday a chosen product is being sold at lower than usual price.Integrated Marketing Communication (IMC)Integrated marketing communications (IMC) is an approach to brand communications where the differentmodes work together to create a seamless experience for the customer and are presented with a similartone and style that reinforces the brand’s core message. Its goal is to make all aspects of marketingcommunication such as advertising, sales promotion, public relations direct marketing, onlinecommunications and social media work together as a unified force, rather than permitting each to work inisolation, which maximizes their cost effectiveness.IMC is becoming more significant in marketing practice because of the reduced cost effectiveness ofmass media and media fragmentation. As consumers spend more time online and on mobile devices allexposures of the brand need to tie together so they are more likely to be remembered.Increasingly the strategies of brands cannot be understood by looking solely at their advertising. Insteadthey can be understood by seeing how all aspects of their communications ecosystem work together andin particular how communications are personalized for each customer and react in real time, as in aconversation. Brand strategies and their tactics can be viewed on the Integrated Brands site.IMC Components of Big Bazaar  The Foundation - is based on a strategic understanding of the product and market. This includes changes in technology, buyer attitudes and behavior and anticipated moves by competitors.  The Corporate Culture - increasingly brands are seen as indivisible from the vision, capabilities, personality and culture of the corporation.  The Brand Focus - is the logo, corporate identity, tagline, style and core message of the brand.  Consumer Experience - includes the design of the product and its packaging, the product experience (for instance in a retail store) and service.  Communications Tools - includes all modes of advertising, direct marketing and online communications including social media. Page 37 of 67
  43. 43.  Promotional Tools - trade promotions; consumer promotions; personal selling, database marketing, and customer relations management; public relations and sponsorship programs.  Integration Tools - software that enables the tracking of customer behavior and campaign effectiveness. This includes customer relationship management (CRM) software, web analytics, marketing automation and inbound marketing software.Importance of IMC for Big BazaarSeveral shifts in the advertising and media industry have caused IMC to develop into a primary strategyfor marketers: 1. From media advertising to multiple forms of communication. 2. From mass media to more specialized (niche) media, which are centered on specific target audiences. 3. From a manufacturer-dominated market to a retailer-dominated, consumer-controlled market. 4. From general-focus advertising and marketing to data-based marketing. 5. From low agency accountability to greater agency accountability, particularly in advertising. 6. From traditional compensation to performance-based compensation (increased sales or benefits to the company). 7. From limited Internet access to 24/7 Internet availability and access to goods and services.  It can create competitive advantage, boost sales and profits, while saving money, time and stress.  IMC wraps communications around customers and helps them move through the various stages of the buying process. The organization simultaneously consolidates its image, develops a dialogue and nurtures its relationship with customers.  This Relationship Marketing cements a bond of loyalty with customers which can protect them from the inevitable onslaught of competition. The ability to keep a customer for life is a powerful competitive advantage.  IMC also increases profits through increased effectiveness  Carefully linked messages also help buyers by giving timely reminders, updated information and special offers which, when presented in a planned sequence, help them move comfortably through the stages of their buying process  Finally, IMC saves money as it eliminates duplication in areas such as graphics and photography since they can be shared and used in say, advertising, exhibitions and sales literature.  IMC also makes messages more consistent and therefore more credible. This reduces risk in the mind of the buyer which, in turn, shortens the search process and helps to dictate the outcome of brand comparisons. Page 38 of 67
  44. 44. B. Data Description for Consumers Satisfaction AnalysisNo. of the respondents based on the age Age Total Percentage 18-28 41 49.33% 28-38 67 21.33% 38-48 37 10.67% 48-58 39 12.00% 58-65 16 6.67% Total 200 100% No. of Respondendts based on age 80 60 40 20 0 18-28 28-38 38-48 48-58 58-65 Bar Diagram No. of Respondendts based on age 18-28 28-38 38-48 48-58 58-65 8% 20% 20% 19% 33% Pie Chart Page 39 of 67
  45. 45. The age groups were identified as key factors impacting shopping and purchase decisions of consumers.By analysing the responses to this question, I as, a researcher, as well as companies, can identify thedemographics of the population that visit retail outlets.The highest number of respondents falls in the age group 28-38. It can be deduced that most of theconsumers who visit retail outlets regularly are the youth. The rest of the population who visit the retailoutlets under study can be listed in the following descending order of distribution – the working agegroup, the older age group, the middle age group, and senior citizens.It is not surprising that the youth most frequent malls and retail stores. What is unexpected, however, isthe fact that more people who fall into the older age group visit the retail stores than those who fall in themiddle age group. Then again, this deduction cannot be applied to the entire population of Kolkata. Thedisparity can be attributed to the small size of the sample under study.No. of the respondents based on the sex Sex Total Percentage Male 87 43.5% Female 113 56.5% Total 200 100% No. of respondents based on the sex Male Female 43% 57% Pie Chart Page 40 of 67
  46. 46. No. of respondents based on the sex 120 100 80 60 40 20 0 Male Female Bar DiagramConsumers were also asked to indicate their gender. The object of this question is to understand thedemographics of the population under study. By analysing the responses to this question, we, theresearchers, as well as companies, can identify the distribution in the number of men and women whovisit the retail outlets and appropriate decisions can be made keeping these numbers in mind.The highest number of respondents were female, as is depicted by the graph and chart presented above.The number of male respondents was less compared to the female respondents.Two deductions can be made from the above data collected: one, more women visit retail outlets thanmen. Two, more women are willing to fill out questionnaires and take a survey than men.This can help the companies and researchers in undertaking future decisions and studies. Since morewomen can be inferred to visit retail stores than men, companies can target their offerings and marketingstrategies in two areas. Retail outlets can appeal to the women customers by offering more productsgeared especially towards women. They can provide a shopping experience that women are particularlyattracted to.Another way that retail chains can use the above data is to appeal to the men rather than the women.Since, fewer men visit retail stores as against women, the companies have a large base of potentialcustomers. By providing products that are geared towards men and by providing a shopping experiencethat attracts men, the retail chains can expand their customer base. Page 41 of 67
  47. 47. Customers & Consumers Feedback Analysis1. Do You Frequently Shop @ Big-Bazaar? (Options: Yes/No) Yes 148 74% No 52 26% Total 200 100% 150 100 50 0 Yes No2. How Frequently You Shop @ Big-Bazaar? (Options: every week/once in 2 week/once in 3 week/once in a month.) Every week 44 22% Once in 2 week 48 24% Once in 3 week 32 16% Once in a month 76 38% Total 200 100% Shopping Frequency Every week Once in 2 week Once in 3 week Once in a month 22% 38% 24% 16% Page 42 of 67
  48. 48. Consumers approached were asked about their frequency in visits to shops. The frequency pointsfurnished were: Every week, once in 2 week, once in 3 week and once in a month. By analysing theresponses to this question, we, the researchers, as well as companies, can identify the number of times acustomer is likely to shop in a month’s time.The highest responses have been attributed to once a month shopping. It can be deduced that consumerswho shop only once a month look to buy groceries and other essentials to last them a month. Therefore,retail outlets have tough customers in those who shop once a month. Such customers look to buy in bulk.Moreover, such customers may not be open to experimenting with new stores. Hence, to capture thismarket, retail outlets must put in place strategies that attract them. Once they profess a liking to a certainstore, they turn out to be very loyal customers.Consumers who shop once a week, on the other hand, pose very different challenges to retail stores. Suchcustomers can be presumed to have a high disposable income and may buy more lifestyle or fashionproducts. Since they shop so frequently, they must continually be entertained and attracted to make repeatpurchases at stores. When targeting this segment, companies must be able to get new stock every week,and update their marketing strategies continuously.3. What comes to your mind when you think about Big-Bazaar? (Options: Discount/Product Variety/Brand/Quality/Offers/Others). Discount 68 34% Product Variety 48 24% Brand 8 4% Quality 16 8% Offers 56 28% Others 4 2% Total 200 100% 70 60 50 40 30 20 10 0 Page 43 of 67
  49. 49. We understood from analysis part why consumers choose big bazaar than other. Customers choose Big-Bazaar because of Discount, Product Variety and Offers. This part helps researchers, how to increase footfalls by providing betters services/Discount/Product Variety/Offers etc.4. Do you feel you find different product variety in Big-Bazaar.(Options: Yes/No). Yes 132 66% No 86 34% Total 200 100% 140 120 100 80 60 40 20 0 Yes No This analysis part shows us that maximum consumers were satisfied with variety of products.5. Do you find the specific brand that you look in the Big-Bazaar? (Options: Yes/No). Yes 74 37% No 126 63% Total 200 100% 150 100 50 0 Yes No Page 44 of 67
  50. 50. This analysis part show us that maximum customers were not satisfied with brand availability, this part help researchers, how to satisfied consumers by providing more branded products.6. In which section you spend more time while shopping? (Options: Food- Bazaar/Apparels/Kitchen-Section/Electronics-Section/Children & Toys Section/Sports Section/Others). Food-Bazaar 81 40.5% Apparels 73 36.5% Kitchen-Section 22 11% Electronics-Section 5 2.5% Children & Toys Section 4 2% Sports Section 5 2.5% Others 10 5% Total 200 100% 90 80 70 60 50 40 30 20 10 0 From this analysis part we can understand the popular section of big bazaar. Food Bazaar, Apparels, Kitchen section is more popular while others sections are not so popular. Researchers may use this analysis part to make popular those other section, and continuous improvements of popular section to increase more footfalls and more satisfaction. Page 45 of 67

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