Final report of summer intenship in big bazaar

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A STUDY ON
CUSTOMER RELATIONSHIP MANAGEMENT
AT
BIG BAZAAR
A Project report submitted for the partial fulfillment for the award of
MASTERS DEGREE IN BUSINESS ADMINISTRATION(MBA)
By
MADHUSMITA PANIGRAHI
Register No.121723602032
Under the esteemed guidance
Of
MS.S SRIKANTA LAHARI
Assistant Professor
GITAM INSTITUTE OF MANAGEMENT
GITAM (DEEMED TO BE UNIVERSITY)
VISAKHAPATNAM

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ABSTRACT
In this day and age, customers are regarded as an article of trade. With
the growth of Marketing era the Customer Relationship Management
(CRM) is very much advanced advanced and became popular in India.
CRM became crucial to cope up with exceeding competitive global
market. Customer Relationship Management is a strategy for managing
and nurturing a company’s interactions with customers and sales
prospects. When an implementation is effective, people, processes,
technology work in synergy to develop and strengthen relationships,
increase profitability, and reduce operational costs. Customer
Relationship Management is a most effective tool for maintaining good
relationship with the customers. It plays an effective role in attracting
the new customers to the company. Customer relationship management
is a corporate level initiative, focusing on creating and maintaining
relationships with customers. The present study finds out the customer
relationship management its implementation and Consumer feelings
while shopping in big bazaar. The study shows that Most of the
customers know about the Big bazaar from advertisement. Most of the
customers select Big bazaar for shopping because of attractive offers.
KEYWords:
Customer relationship management, Frequency of purchasing,
delighters, customer, sales promotion, strategy, buying factors,
advertisements, service encounter, household products, etc.

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DECLARATION
I, MADHUSMITA PANIGRAHI, a student of GITAM Institute of
Management, GITAM (Deemed to be University), and pursuing
Masters of Business Administration course hereby declare that the
project entitled “Summer Internship” Visakhapatnam, India
submitted by me for the award of the degree of Master of Business
Administration GITAM (Deemed to be University) is original and has
not been submitted previously in part or full to this or any university for
the award of any degree or diploma or for any other similar title.
Place: Visakhapatnam MADHUSMITA PANIGRAHI
Date: 23.june.2018 Register No. 121723602032
MBA 2nd
YEAR

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GUIDE’S CERTIFICATE
This is to certify that the project was entitled “CUSTOMER
RELELATIONSHIP MANAGEMENT IN BIG BAZAAR RETAIL STORE
,DWARAKA NAGAR,VISAKHAPATNAM” is a genuine and bonafide work
done by Miss MADHUSMITA PANIGRAHI (Reg no : 121723602032),A
student of secondyear MBA, in GITAM INSTITUTE OF MANAGEMENT,
VISAKHAPATNAM for the award of degree of Master of Business
Administration Degree from GITAM UNIVERSITY during the year( 2017-
2019) under my guidance and supervision.
Place:Visakhapatnam MS.S.SRIKANTALAHARI
Date: 23.june.2018 AssistantProfessor
Gitam Institute Of Management

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ACKNOWLEDGEMENT
The immense pleasure and joy one derives on completion of the assigned job is beyond
description. It is the duty of the concerned person to pay respect and acknowledge the advice,
guidance and assistance received from all quarters for such an accomplishment.
I express my deep sense of gratitude to GITAM UNIVERSITY for providing me an
opportunity for doing this observation study, which has been an excellent and rewarding
experience.
It is my pleasure to acknowledge and express my gratitude to all those who helped me
throughout in the successful completion of this project.
I wish to express my gratitude to Prof P. SHEELA, Principal, GITAM Institute of
Management, GITAM (deemed to be University) Visakhapatnam, for giving me this valuable
opportunity to experience the work culture in an organization.
I wish to express my gratitude to Dr.Y.V.S.S.S.VARA PRASAD, Programme
Coordinator of MBA, GITAM Institute of Management, GITAM University, Visakhapatnam, for
giving me this opportunity.
I express profoundest gratitude to my esteemed lecturer and Project guide MS.S
SRIKANTA LAHARI Department of FINANCE, GITAM Institute of Management, GITAM
(Deemed to be University), Visakhapatnam, for her encouragement and valuable guidance at
every stage of this project.
I express my sincere thanks to BIG BAZAAR, VISAKHAPATNAM, for allowing me to
complete this project entitled “A STUDY ON CUSTOMER RELETIONSHIP MANAGEMENT
IN BIG BAZAAR.
I express my sincere gratitude to Store Manager, Assistant Store Manager, Human
Resource Manager, Assistant Human Resource Manager, my entire teaching faculty, non-
teaching faculty, my family and my friends who helped me directly or indirectly in this work.
MADHUSMITA PANIGRAHI
REG NO.121723602032

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CONTENTS
Page No.
Chapter 1:
Introduction……………………………………1
1.1 Synopsis …………………………………….2
1.2 Problem Of The Organisms ………………… 5
1.3 Competition Information ……………………6
1.4 S.W.O.R.T Analysis Of The Organisms ……7-9
Chapter 2:
OBJECTIVE AND METHODOLOGY
2.1 Scope of the study……………………………10
2.2 Objective of the study………………………..10
2.3 Need of the study…………………………….11
2.4 Significance of the study…………………….12
2.5 Methodology of the study……………………13-15
Chapter 3:
INDUSTRY PROFILE …………………………16-36
3.1 Scenario Of Retail Industry In India ………….16-17
3.2 Introduction To Retailing In India ……………17-23
3.3 Importance Of Retailing ………………………24-26
3.4 Key Challenges ……………………………….26-27
3.5 Classification Of Retailing ……………………27-28
3.6 Growth Of Retailing In India ………………….28-29
3.7 Major Indian Retailers …………………………30-32
3.8 Retailing In Future …………………………….33-36
Chapter 4:
PROFILE OF THE COMPANY………………...37-61
4.1 Future Group Manifesto………………………..37-44
4.2 Group Vision…………………………………...43
4.3 Group Mission………………………………….45
4.4 Core Value………………………………………46-49
4.4 CRM in big bazaar ……………………………..50-59

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4.6 Major Milestones…………………………….60
4.6 Affiliate Companies………………………….61
Chapter 5:
THEORETICAL FRAME WORK ……………62-73
5.1 Introduction …………………………………..62
5.2 History Of CRM ……………………………....63
5.3 Why Customer Relationship Management ……64
5.4 Ways To Keep Customer For Life …………….65
5.5 Thing Need To Be Done For CRM …………....66
5.6 Key CRM Principle ……………………………67
5.7 Architecture Of CRM ………………………….69-71
5.8 Porter five model……………………………….71-73
Chapter 6:
CRM IN RETAILING ……………………………74-79
6.1 What is Retail ………………………………….74-75
6.2 Necessity Of CRM In Retail……………………76-77
6.3 How Retailers Benefited by CRM ……………..78
6.4 Challenges For Big Bazaar In CRM Implementation..79
Chapter 7:
PROCESS OF CRM IN RETAILING………………80-83
7.1 Collection Customer Data………………………….80
7.2 Analyzing customer’s data and identify targeted…..81
7.3 Developing CRM Program………………………...82
7.4 Implementing CRM in Retailing ………………….83
Chapter 8:
DATA ANALYSIS …………………………………..84-
Chapter 9:
FINDINGS AND SUGGESTIONS …………………
Annexure …………………………………………………………
Bibliography ……………………………………………………..

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Chapter 1:
Introduction
 Synopsis
 Problem Of The Organisms
 Competition Information
 S.W.O.R.T Analysis Of The Organisms

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INTRODUCTION
Retailing is the set of activities that markets products or services to final
consumers for their own personal or house hold use .It does this by organizing their
availability on a relatively large scale and supplying them to customers on a
relatively small scale. Retailer is a person or agent or Company or Organization
who is instrumental in reaching the Goods or Merchandise or Services to the end
user or Ultimate consumers. The word “retail” originate from French –Italian word
.Retailer- Someone who cuts off or shed a small pieces from something.
Retailing is one of the pillar of the economy in India and account for 35% of
GDP. The retail industry is divided into organized and un organized sectors. Over
12 million outlets operate in the country and only 4% of them being larger than
500 SQ ft (46m2) in size. Organized retailing refers to trading activities undertaken
by licensed retailers, that is ,those who are registered for sales tax, income tax, etc
These included the corporate-backed hypermarkets and retail chain and also the
privately owned large retail businesses.
Unorganized retailing ,on the other hand ,refer to the traditional format of
low-cost retailing for example, the local kirana shops ,owner manned general
stores, paan/beedi shop, convenience store, hand cart and pavement vendor
etc.Most Indian shopping takes place in open markets and million of independent
grocery shop called kirana. Organized retail such supermarkets account for just 4%
of the market as 2008.regulation prevent most foreign investment in retailing.
Moreover ,over 30 regulation such as “signboard licenses” and “anti-hoarding
measures” may have to be complied before a store can open doors. There are
taxes for moving good to states from states, and even within states.
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1.1 SYNOPSIS
The project is aimed at how customer relationship management is
going on in organized retail store and engagement of the retail business and
studies its management ,growth expansion program and other thing which
have taken place.
There are certain aspect that are vital to be observed in any retail
store such as front-end operation, back-end operation, store layout, customer
relationship management ,visual merchandising, supply chain management,
category management, operation management. Human resources
management, Cash management, Security Management, Maintenance
management, This study explains all these aspects in particular and
emphasizes for an effective way to the retailers to improve their ability to
achieve the targeted goals and enhance the profitability of the organization.
The study also helps us to understand the difference among organized
store, semi-organized store and Un organized store. How a organized store
can yield benefits by adding latest and renowned techniques in retail
marketing.
The study also helps us to understand about what is customer relation
management, necessity of CRM, process of CRM, the way to keep customer
for life.
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What is service quality:
Service quality can be defined as “the collective effect of service
performances which determine the degree of satisfaction of user of the service”. In
other word ,quality is the customer’s perception of a delivered service. By service -
qulatity management, we refer to the monitoring and maintenance of end-to end
services for specific customers or classes of customers.
As larger verities of services are offered to customers the impact of
network performance on quality of service will be more complex .it is vital that
services engineers identify network – performance issues that impact customer
service. They also must quantify revenue lost due to service degradation.
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CUSTOMER EXPECTATIONS:
Time and quality of life are becoming relatively more important than
money:60% of Americans want to lead a simple life. Product performance was
found to be the top purchasing criterion while environmental feature were a close
second in survey conduct by Alliance for environmental innovation in conjunction
with SC Johnson wax.
The main thing here in the retail is
“The customer is the most important person on our premises.
He is not dependent on us ,we are dependent on him.
He is not an interruption of our work ,he is the purpose of it.
He is not an outsider on our business, he is part of it.
We are not doing him a favour by serving him ;
He is doing us a favour by giving us the opportunity to do so.”
-MAHATMA GANDHI.
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1.2 PROBLEM OF THE ORGANIZATION
Variable in an inventory problem: an inventory can be defined as a stock of
good which is held for the future production or sale .The stockof goods may
be kept in following form:
1. Raw materials
2. Partly finished goods
3. Finished good
4. Spare parts
The two variable of inventory problem having two categories
a) The controlled variable
b) The un controlled variable
The controlled variable: The variable that may be controlled separately or
in combination
1. The quantity acquired
2. The frequency of timing of acquisitions
3. The stage of completion of stocked items
The uncontrolled variable : The variable that may not be controlled in an
inventory problem are divisible into cost variable
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1.3 COMPETITORS OF BIG BAZAAR
Big Bazaar operates in a competitive environment. For each line of business, they
face competition from established national and regional companies.
In the fashion segment, they face competition from Shoppers Stop, Trent and
Lifestyle.
The hypermarket business is relatively new, being just about three to four years old
in the country. They face competition from the likes of RPG (Spencer’s), Trent
(Star India Bazaar) and with Shoppers Stop too indicating their entry into the
hypermarket segment.
In the Food business, major competition comes from Food World and recently
Reliance Fresh.
The biggestcompetitorof Big Bazaar presently is Reliance Group as they are
entering into different segments that Big Bazaar is dealing in.
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1.4 SWOT ANALYSIS OF BIG BAZAAR:
Strengths:
 Maximum number of varieties:
People prefer those places where they can get the maximum products they
need and Big Bazaar provides vast range of products under one roof helping in
attracting customer and their family to shop together and enjoy the experience.
 High brand equity:
Big Bazaar has created high brand equity through its promotions and
marketing it has created a different image for its products as the cheap and best.
 Largest chain of retail marketing in India:
Big Bazaar is the first retail chain to be started in India and is the largest
and successful until now.
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 High capacity investment:
Big Bazaar offers 1,70,000 products and owns more than 100 retail stores
all over India and has the strong financial background as being the subsidiary of
future groups which owns the pantaloons which is one of the biggest the industries
in men’s wear in India and have its work is spread all over India. Future group is
one of the leading groups in India.
 Everyday new promotions and schemes of low prices and
discounts:
Big Bazaar always offers new schemes of low prices and gives discounts
in products like Big Bazaar offers the sabse saste 3 din ( the cheapest 3 days) in
which it offers the lowest of prices than other days. Facilities like online
booking and delivery of goods: It is not just a chain of retail shopping but also
provides online shopping facility to the consumers.
Weaknesses:
 Overcrowded:
During offers, promotions and even on weekends the place is
overcrowded with people and sometime even there is the situation of closing the
store due to it.
 Checkout can be extremely slow:
There can be seen a long queue on the billing counters making the consumer
wait for hours due to the slow service and the crowd.
 Perception of low price=low quality:
Generally people think that if any product has low price then the quality of
the product will be low as they think quality comes with price.
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 Targets at the middle class and upper middle class only:
It targets at the middle and upper middle class due to which it ignores the
upper and elite class people as they are the cream of the society who are ready to
pay any price for the quality and product they need.
 Opportunities:
Big Bazaar can enter into production of various products due to its in depth
understanding of customers’ tastes and preferences. Nowadays people prefer going
to one big store and buy everything instead of visiting different places for different
items and waste time. So Big Bazaar can expand the business in smaller cities as
there is a lot of opportunity. Lot of potential in the rural market.
Threats:
 High business risk involved:
Big Bazaar investment is very large so it is obvious that there is high business
risk involved.
 Lot of competitors :
There are a lot of countries which are planning to enter the Indian market
like Wal-Mart, Carrefour and Tesco which is a big threat to Big Bazaar.
 Less Parking Space:
Customers are not satisfied with the parking space availability provided by
Big Bazaar. Hence it’s a threat of Big Bazaar as it may loose its customers because
of less parking space availability. In holidays it will be very difficult for customers
to park their vehicle in Big Bazaar.
 Unorganized retailing:
Unorganized retail stores are a threat to the business of big bazaar as now
also people prefer to go to the local stores which are convenient enough for
them. 9

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CHAPTER-2
OBJECTIVE AND METHODOLOGY
 Scope of the study
 Objective of the study
 Need of the study
 Significance of the study
 Methodology of the study

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2.1 SCOPE OF THE STUDY
The scope of the study is to analysis the CUSTOMER
RELETATIONSHIP MANAGEMENT (CRM) in retailing (BIG BAZAAR)
from the stage of controlling, collecting customer information to the
implantation.
2.2 OBJECTIVE OF THE STUDY
 To study the current practice of CRM in retailing.
 To find the impact of CRM on the profitability of the big
bazaar.
 To study the factors affecting the CRM practices.
 To study the method and tools for implementing CRM in
retails sector.
 To study the necessity of CRM in retail sector as well as
suggesting them the ways for successfully implementing it.
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2.3 NEED FOR THE STUDY
There are global player as well as INDIAN Players in retelling. Among all
the Indian Retail players BIG BAZAAR, VISAKHAPATNAM was chosen which
is a group of Future value Retail Limited whose performance is rated very high.
As the services providing by BIG BAZAAR retail outlet there is a need
for the study is to analyze the service activities offered by retail outlet and to
know the customer perception level on retail services. Study also concentrates on
find out strengths, weaknesses, and opportunities also. The study is also
concentrate on CUSTOMER RELATIONSHIP MANAGEMENT. To change
normal customer into regular customer into regular customer, to know the
customer perception and whether the store is utilizing all the resources in services
proving.
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2.4 SIGNIFICANCE OF THE STUDY
The CRM(CUSTOMER RELATIONSHIP MANAGEMENT) is an
integrated effort to strengthen the relationship for mutual benefit of both the
retailer and customer. The biggest management challenge in to new millennium of
liberalization and globalization for a business is to maintain good relationship
with the king the customer. This study is if great significance because.
 A 5% increase in the customer retention will increase the profit up to 125%.
 It cost five times more to attract a new customers than to service an old one.
 20% of the company’s loyal customers account for the 80% of its revenue.
 To study on customer relationship management has enabled me to know
about the CRM practice adopted in the retail industry (BIG BAZAAR).
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2.5 METHODOLOGY OF THE STUDY
Research Methodology is the way to systematically solve the research
problem. This study on Customer Relationship Management is a descriptive study.
The study of research is partially conceptual and partially empirical.
RESEARCHDESIGN:
Research Design is the framework or plan designed for the study that guides the
collection and analysis of the data. The function of researcher is to ensure that the
required data are accurate and even economical.
A descriptive research technique was adopted in the project .Descriptive research
is a study designed to depict the participants in an accurate way . More simply put
,descriptive research is all about describing people who take in study.
There are three way a researcher can go about doing a descriptive research project
and they are
 Observational: defined as a method of viewing and recording the
participants
 Case study: defined as in-depth study of an individual or group of individual
.
 Survey: defined as a brief interview or discussionwith an individual about a
specific topic.
SAMPLING DESIGN:
Data collected from various sources are tabulated ,analyzed ,interpreted and
supported with relevant chart, tables graphs etc… Where ever necessary and
suggestion arising therefore will also be listed in the project.
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SOURCES OF DATA:
Primary Data:
Refers to the information obtained first hand for the specific purpose. Primary data
is therefore is the data that has been collecting for the time by the researcher for the
project Eg: collected from the employees or Managers.
SECONDARY DATA:
Refers to the information collected from annual reports, manufacturing accounts
Statements department manuals, brochures and other printed material issued by the
company.
DATA COLLECTION METHOD:
The data for analysis are collected And gathered from observations through direct
interaction the managers and employees and also through printed annual reports of
integral coach factory, websites record, various related book and statements and
others available sources.
PERIOD OF STUDY :
The time period for study was 45 days , where I could compare the store operation
for the last 2 year (2017-2019)
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LIMITATIONS OF THE STUDY :
 The company at Visakhapatnam does not set the major strategies but is the
follower of the head branch, so I was restricted to look at its plans of
managerial strategies.
 Information gathered from retailer may not fulfill because no retailer shows
their weakness.
 No much data from past was available but had to frame by project based on
the information given by the company and my personal observation on the
issues.
 Time period for the study was also limited to make any further add on .
 Inadequate disclosure of tactical information’s by retailers is also the
problem.
 Lack of retailer knowledge about modern CRM concept.
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CHAPTER 3
INDUSTRY PROFILE
 Scenario Of Retail Industry In India
 Introduction To Retailing In India
 Importance Of Retailing
 Key Challenges
 Classification Of Retailing
 Growth Of Retailing In India
 Major Indian Retailers
Retailing In Future

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3.1 OVERVIEW OF THE INDUSTRY AS WHOLE
The Indian retail industry is now beginning to evolve in the line with the
transformation that has swept other large economies. The liberalization of the
consumer goods industry initiated in the mid-80 and accelerated through the 90’s
has begun to impact the structure and conduct of the retail industry.
The concept retail which includes the shopkeeper to customer interaction, has
taken many forms and dimensions, from the traditional retail outlet and street local
market shops to upscale multi brand outlets, especially stores or departmental
stores.
The objective being to assess the various parameters that influences a buyer to visit
or shop at departmental store thereby contributing to its turnover (in terms of sales
and profits) hence leading to its overall success.
The extensive research brought me to conclude that departmental stores are soon
emerging on the top priority lists, amongst the shopping spree in Delhi and NCR,
as they seem to derive immense pleasure of convenience and exposure to variety
under one roof, in their extremely busy lives, when they don’t have time for things.
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Though some of the customers perceive departmental stores to be expensive and
only high income category’s cup of tea, the stores make constant efforts to induce
them to at least visit the store at once during the sale period, or discount offers.
33..22 TThhee RReettaaiill MMaarrkkeettiinngg RReevvoolluuttiioonn -- AAnn IInnttrroodduuccttiioonn
“Any business that directs its marketing efforts towards satisfying the final
consumer based upon the organization of selling goods and services as a
means of distribution”
BBy 2010, the list of India's top 10 retailers will have at least 5 Indian corporate.
Retail Marketing will go through a tremendous change in India this millennium. It
will change India's cities, its people, and its households. The Indian consumer is
reportedly the largest spender in Singapore and London. It is, therefore, strange
that there have, so far, been few efforts to present the product in the right kind of
environment in India.
Indeed, the right shopping experience does induce Indian consumers to spend
more. This is evident from the experiences of retail-outlets like Music.
World, Big Bazaar, Spencer’s, Crosswords, The Home Store, Ebony, Bigjo’s,
Saboos, Standard, Nanz, Vijay Store and Janaki Das & Sons, Westside etc.
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Factors affecting Retail marketing
The development of organized retail is dependent on the efforts of several agencies
and institutions. A glimpse of the last 2 decades of the previous century proves
illuminating. Large-format retailing started with outlets like Vivek's and Nalli's in
Chennai and Kidskemp in Bangalore, and, at another level, with manufacturer-
retail brands like Bata, Bombay Dyeing, and Titan.
Government:
The first among these is the government. In a country as big as India and with as
many states as ours, it is imperative that the Central government and all state
governments bring in Value Added Taxation or a unified taxation system to ensure
that the tax-regimes are the same across the country.
The laws governing retail real estate should also be looked into, so that it is
possible to develop retail-estate beyond the city-limits. Apart from providing
entertainment and retail opportunities, this will also decongest the city center and
facilitate the development of suburbs. The relevant rules should also be amended to
allow retail-stores to operate 7 days a week, 12 hours a day.
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Nuclear Families:
Given the hours most urban consumers keep at work, and keeping in mind the
increase in the number of nuclear families, this may, indeed, make sense. This will
also help people enjoy their evenings, out at malls.
Developers:
The second group, whose participation is essential in making retail a boom-sector
in this millennium, comprises developers. Most properties are developed without
considering the end user; thus, we sometimes find high-
Ceilinged offices and low-ceilinged retail stores. Often, the shopper's convenience
is not taken into consideration while the property is constructed.
Manufacturers:
There's a lot at stake here: even so early in the 21st Century, India is too large a
market to be ignored by transnational retail giants. From the manufacturing
company's perspective, the focus should be on producing good products, and
forging relationships with organised retail. Manufacturers need to draw a plan of
producing quality products and tie in with retailers. Indeed, the birth of organised
retail will also engender the creation of private labels and store-brands. Thus, if a
manufacturing company lacks the resources to build a brand, it can supply to a
retail-chain that has the resources to create a brand of its own.
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Indian Consumers:
And even as these developments were taking place, the Indian consumer became
more mature. Customer-expectations zoomed. Thus, at the beginning of the New
Millennium, retailers have to deal with a customer who is extremely demanding.
Not just in terms of the product-quality, but also in terms of service, and the entire
shopping experience.
Today, the typical customer who shops in a retail outlet compares the time spent at
the check-out counter with that at an efficient petrol station, and the smile of the
counter-person to that decorating the face of a Jet Airways' crew member. To cope
with the new customer, manufacturers have to focus on product quality and brand
building. And retailers, in turn, have to focus on the quality of the shopping
experience.
In this millennium, like in the last, customers will want to spend time with their
family and friends. They may like to visit an outlet on weekends where everything
will be available under one roof. India will benefit from these developments
because of increased consumption through retailing and the corresponding increase
in employment created by retailing.
Retail organizations exhibit great variety and new forms keep emerging. There are
store retailers, non store retailers, and retail organizations.
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Consumers today can shop for goods and services in a wide variety of stores. The
best-known type of retailer is the department store. Japanese department stores
such as Takashimaya and Mitsukoshi attract millions of shoppers each year. These
stores feature art galleries, cooking classes, and children’s playgrounds.
The success of the retail stores, therefore, depends on customers’ reaction to the
retailing mix which influences the profits of the store, its volume of turnover, its
share of the market, its image and status and finally its survival.
TTrreennddss IInn RReettaaiill MMaarrkkeettiinngg
AAt this point, I can summarize the main development retailers and manufacturers
need to take into accountas they plan their competitive strategies.
In India the trends are mainly in three sectors. These sectors are:
Trends in retail marketing
Urban Suburban Rural
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New retail forms and combinations continually emerge. Bank branches and ATM
counters have opened in supermarkets. Gas stations include food stores that make
more profit than the gas operation. Bookstores feature coffee shops.
The electronic age has significantly increased the growth of non store retailing
consumers receive sales offers in the mail and over television, computers, and
telephones, to which they can immediately respond by calling a toll-free number or
via computer.
Competition today is increasingly intertype, or between different types of store
outlets. Discount stores, catalog showrooms, and department stores all compete for
the same consumers. The competition between chain superstores and Smaller
independently owned stores have become particularly heated. Because of their bulk
buying power, chains get more favorable terms than independents, and the chains’
large square footage allows them to put in cafes and bathrooms.
Today’s retailers are moving toward one of two poles, operating either as mass
merchandisers or as specialty retailers. Superpower retailers are emerging.
Through their superior information systems and buying power, these giant retailers
are able to offer strong price savings. These retailers are using sophisticated
marketing information and logistical systems to deliver good service and immense
volumes of product at appealing prices to masses of consumers.
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Many retailers are even telling the most powerful manufacturers what to make;
how to price and promote; when and how to ship; and even how to reorganize and
improve production and management. Manufacturers have little choice: They stand
to lose 10 to 30 percent of the market if they refuse.
Technology is becoming critical as a competitive tool. Retailers are using
computers to produce better forecasts, control inventory costs, order electronically
from suppliers, send e-mail between stores, and even sell to
Customers within stores. They are adopting checkout scanning systems, electronic
funds transfer, and improved merchandise-handling system
RReettaaiill MMaarrkkeettiinngg IInn IInnddiiaa
There are various ways of making goods available to consumers like:
 Company to distributor to wholesaler to retailer to consumer
 Company to salesperson to consumer
 Company to consumers (online/ phone/ catalog ordering)
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These three are among the most common ways of making the goods available to
consumers. But in India the three layered system of distributor, wholesaler and
retailer, forms the backboneof the front-end logistics of most of the consumer-
good companies.
There are a number of reasons behind this fragmented retail market. Some of the
major reasons being:
 Poverty and lower literacy levels.
 Low per capita income.
 Savings focused and less indulgence mindset.
 Poorinfrastructure facilities like roads etc.
 Restrictions on intra-state good movement.
 High taxes.
 No exposure to media.
 High import duties on imported goods.
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3.4 KEY CHALLENGE
1. LOCATION
“Right place , Right choice” Location is the most important ingredient for any
business that relies on customer’s and is typically the prime consideration in a
customer’s store choice. Locations decisions are harder to change because retailer
have to either make sustainable investment to buy and develop real estate or commit
to long term lease with developers. When formulating decision about where to locate
the retailer must refer to strategic plan:
 Investigate alternative trading area
 Determine the type of desirable store location
 Evaluate alternative specific store sites
2. Merchandise:
The primary goal of most retailers is to sell the right kind of merchandise and
nothing is more central to the strategic trust of retailing firm. The merchandise
consist of activities involved in acquiring particular goods and service and
making them available at a place, time and quantity that enable the retailer to
reach its goal. Merchandising is perhaps the most important function for any
retail organization, as it decides its what finally goes on shelf of the store.
3. Pricing
Pricing is a crucial strategic variable due to its direct relationship with the firm’s
goal and interaction with other retailing elements. The importance of pricing
decision is growing because today’s customer are looking for good values when
they buy merchandise and services. Price is the easiest and quickest variable to
change.
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4. Target audience :
“Consumer the prime mover”
“Consumer Pull”, however, seems to be the most important driving factor behind
the sustain of the industry. The purchasing power of the customer has increased
to a great extent with the influencing the retail industry to great extent a variety
of other factor also seem to fuel the retailing boom.
5. Scale of operation:
Scale of operation includes all the supply chain activities which are carried out in
the business. It is one of the challenges that Indian retailers are facing. The cost
of the business operation is very high in India.
3.5 RETAIL CLASSIFICATION
Retail industry can be broadly classified into two categories namely-orgainsed
and unorganized retail.
I. Organized retailer:
Organized retailers, who are licensed for trading activities and register to
pay tax to the government .
II. Unorganized retailer:
It consist of unauthorized small shop conventional Kirana shops, general
stores, corner shops various other small retail outlets but remain as the radiating
force of India retail industry.
The retail scenario in India is unique. Much of it is in the unorganized sector,
with over 12 million retail outlets of various size and formats. Almost 96% of
this retail outlets are less than 500 square feet in size. The per capital retail space
India being 2 square feet compared to the US figure of 16 square feet India’s per
capital retailing space in thus the lowest in the world.
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With more than 9 outlets per 1000 people India has the largest number in the
world. Most of them are independent and contribute as much as 96% to the total
retail sale. Because of the increasing number of the nuclear families, working
women, greater work pressure and increased commuting time, convenience has
become a priority for Indian consumer. They want everything under one roof for
easy access and multiplicity of choice. This offers an excellent opportunity for
organized retailers in the country which account for just 2% and modern stores
0.5% of the estimated US dollar 180 billion worth of goods that are retailed in
India every chain, WAL-MART.
3.6 Growth of retailing in India
 Unorganized market: Rs: 583,000 crores.
 Organized market: Rs: 5,000 crores.
 5X growth in organized retailed between 2000-2005
 Over 4,000 new modern outlets in the last 3 years
 Over 5,00,000 sq.ft of mall space under development
 The top 3 modern retailers control over 750,000 sq.ft. of retail space.
 Over 400,000 shoppers walk through their doors every week
Growth in organized retailing on par with expectations and projections of the
last 5 years on course to touch Rs. 35,000 crores or more by 2005-06 growth.
An increasing number of people in India are turning to the services sector
for employment due to the relative low compensation offered by the traditional
agriculture and manufacturing sectors. The organized retail market is growing at 35
percent annually while growth of unorganized retail sector is pegged at 6 percent.
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The retail business in India is currently at the point of inflection. Rapid
change with investments to the tune of US $ 25 billion is being planned by several
Indian and multinational companies in the next 5 years. It is a huge industry in
terms of size and according to management consulting firm Technopak Advisors Pvt
Ltd. It is valued at about US $ 350 billion. Organized retail is expected to garner
about 16-18 percent of the total retail market (US $ 65-75 billion) in the next 5
years.
India has topped the A.T. Kearneys annual Global Retail Development
Index(GRDI) for the third consecutive year, maintaining its position as the most
attractive market for retail investment. The Indian has registered a growth of 8% for
2007. The predictions for 2008 are 7.9%. The enormous growth of the retail
industry has created a huge demand for real estate. Property developers are creating
retail real estate at an aggressive pace and by 2010, 300 ma;;s are estimated to be
operational in the country. With over 1,000 hypermarkets and 3,000 supermarkets
projected to come up by 2011, India will need additional retail space of 700,000,000
sq ft as compared to today. Current projections on construction point to a supply of
just 200,000,000 sqft leaving a gap of 500,000,000 sq ft that needs to be filled, at a
cost o US$15-18 billion.
According to the Icier report, the retail business in India is estimated to
grow 13% frp,$322 billion in 2006-07 to $590 billion in 2011-12. The unorganized
retail sector is expected to grow at about 10% per annum with sales expected to rise
from $ 309 billion in 2006-07 to $ 496 billion in 2011-12.
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3.7 MAJOR INDIAN RETAILERS
Indian apparel retailers are increasing their brand presence overseas,
particularly in developed markets. While most have identified a gap in countries in
West Asia and Africa, some majors are also looking at the US and Europe. Arvind
Brands, Madura Garments, Spykar Lifestyle and Royal classic polo are busy
chalking out foreign expansion plans through the distribution route and standalone
stores as well. Another denim wear brand, spykar which is now moving towards
becoming a casual wear lifestyle brand, has launched it’s store in Melbourne
recently. It plans to open three stores in London by 2008 end.
The low intensity entry of the diversified Mahindra group into retail is unique
because it plans to focus on lifestyle products. The Mahindra group is the fourth
large Indian business group to enter the business of retail after reliance industries ltd,
the Aditya birla group, and Bharti enterprises ltd. The other three groups are
focusing either on perishables and groceries or a range of products or both.
 Vivek limited retail formats: Viveks, jainsons, viveks service centre, viveks
safe deposit lockers.
 PGC Retail – T- Mart India, Switcher, Respect India, Grand India Bazaar
etc.,
 REI AGRO LTD Retail-formats:6TEN Hyper & 6TEN super.
 RPG Retail-Format: Music words, Books & beyond, Spencer hyper,
Spencer’s super, daily & fresh.
 Pantaloon retail formats: Big Bazaar, food bazaar, pantaloons central fashion
station, brand factory, depot, all, E-Zone etc.
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 The Tata group formats: West side, star India bazaar, steel junction, landmark,
and titan industries with world of titans showrooms, Tanishq outlets, Chroma.
 K Raheja Corp Group-Formats: Shoppers stop crossword, Hyperr city, Inorbit
mall.
 Lifestyle international lifestyle, Home centre, max, fun city and international
franchise brand stores.
 Pyramid retail formats: pyramids megastore, TruMart.
 Nilgiri’s formats: Nilgiris’ Supermarket pharmacy and telecom discount
chain.
 Trinethra formats: Fabmall supermarket chain and fabcity hypermarket chain.
 Vishal retail group formats: vishal mega mart.
 BPCL- Formats: In & Out.
 Reliance Retail-Formats: Reliance Fresh.
 Reliance ADAG Retail format: Retail World.
 German Metro Cash & carry.
 Shoprite holdings formats: shoprite hyper.
 Paritala stores bazaar: honey shine stores.
 Aditya birla group more outlets.
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For a start, these retailers need to invest much more in capturing more
specific market. Intelligence as well as almost real-time customer purchase behavior
information. The retailers also need to make substantial investment in
understanding/acquiring some advanced expertise in developing more accurate and
scientific demand forecasting models. Re-engineering of product sourcing
philosophies-aligned more towards collaborative planning a replenishment should
then be next on their agenda. The message, therefore for the existing small and
medium independent retailers is ti closely examine what changes are taking place in
their immediate vicinity and analyze whether their current market offers a potential
redevelopment of the area into a more modern multi-option destination. If it does,
and most commercial areas in India do have this potential, it would be very useful to
form a consortium of other such small retailers in that vicinity and take a pro-acibe
approach pool in resources and improve the overall.
Finally it is important to note that these strategies are not strictly
independent of each other; value is function of not just price, quality and service but
can also be enhanced by personalization and offering a memorable experience. In
fact, building relationships with customers can by itself increase the quality of
overall customer experience and thus the perceived value. But most importantly for
winning in this intensely competitive marketplace, it is critical to understand the
target customers definition of value and make an offer, which not only delights the
customers but also is also difficult for competitors to replicate.
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MARKETING INITIATIVES
Big Bazaar is not only a store but also a brand today. Like any store, all the
marketing Strategies are taken into view, to operate such a big store, smoothly and
efficiently.
Big Bazaar has its Saying ““Isse sasta aur accha kahin nahin” which means,
nothing cheaper and nor the quality to be found anywhere else. The Pricing
Strategy that the Company uses is basically Every Day Low Pricing. The basic
strategy of the company is low pricing ,thus after conducting a survey it was
noticed that people relate Big Bazaar with its cheap rates. Thus the main marketing
strategy of Big Bazaar is to position it as low priced among the middle income and
low income group. This strategy stresses the use of a pricing policy with the
continuity of prices at a level. The Big bazaar, believes in generating all year round
demand by setting the prices at the lowest cost.
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A few marketing initiatives of Big Bazaar are as follows:
On republic day, the company honoured the consumer by calling it the ‘Maha
Savings Day’. Shoppers at all Big Bazaar and Food Bazaar outlets across the
country were offered products at prices never heard before in the history of
shopping.. This event received tremendous response from the regular and an
entirely new set of shoppers, which resulted in nearly 2 million people visiting the
stores on that day.
A few promotional techniques adopted by Big Bazaar are as follows:
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Big Bazaar lures its consumers by offering discounts, conducting events,
competitions and lucky draws. These strategies go down well with the lower
income group consumers.
They also have many promotional offers on festive occasions like Father’s Day,
Diwali Bonanza, and Raksha Bandhan etc.
Combo deals mark one of their marketing initiatives like buy 2 t-shirts and get 1
denims free.,etc.
Big Bazaar in collaboration with Star India Pvt Ltd, has launched a collection of
designer ethnic wear under the brand ‘Star Parivar’.
Also it follows the normal promotional techniques of advertising in the
newspapers, TV, internet. It alo has partnerships with Bigflix and Big Fm 92.7.
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CORPORATE SOCIAL RESPOSIBILTY OF BIG BAZAAR
Big Bazaar aims at achieving an excellent profile in corporate social responsibility.
The main areas of CSR of Big Bazaar are as follows:
1. Community welfare
2. Poverty eradication
3. Sports
4. Water
5. Rural Development
6. Vocational Training
7. Women empowerment
Big Bazaar has a separate CSR department working with a defined budget and
regularly speaks out of the good work that it does. It has always been their belief
that being an ethically, socially and environmentally responsible organization is
the best and the most efficient way to earn the trust and goodwill of millions of
customers and stakeholders. As a sustainable business that nurtures its supply
partners, which cares for its community, empowers its employees and strives to be
a positive change agent in society.
In the year 2010, Big Bazar implemented a 52-week calendar of events, to
celebrate within Central. This reflects every Indian festival, sporting, lifestyle and
leisure events from around the world as well as social causes like Environment
Day.
Initiatives are today focused on building a platform and providing distribution and
market outreach to women led organizations engaged in producing food products,
textiles and handicrafts. These not only help us act as positive change agents for

46
society, but also provide ethnic and traditional products that urban India so often
craves for. An immensely successful initiative of this nature was ‘Yatra’, a joint
effort between Big Bazaar and Yashaswini, a self help group platform. The
purpose was to encourage the efforts of underprivileged women traders through
establishing a channel for them to sell their produce in a profitable manner.
Every Big Bazaar and Food Bazaar store now has a customer advisory board.
Thus, Big Bazaar increasingly plays an important role in maintaining a good
profile in its corporate social responsibility and thereby retaining its good image
with their consumers, stakeholders, employees and the society at large.
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CHAPTER 4
PROFILE OF THE COMPANY
 Future Group Manifesto
 Group Vision
 Group Mission
 Core Value
 Major Milestones
 Affiliate Companies

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BIG BAZAAR
Pantaloon Retail (India) Limited was incorporated as Man wear
Private Limited in the year 1987. It became a public limited company in 1991 and
was renamed Pantaloon Fashions (India) Limited and then Pantaloon Retail (India)
Limited in 1999. Over the years the company has accelerated growth through its
ability to manage change. It integrated backwards into garment manufacturing and
expanded its retail network at the same time. It launched three successful brands –
Pantaloon trouser bar denims and John Miller shirts between 1987 and 1993. The
company introduced the concept of The Pantaloon Shoppe, an exclusive men’s
wear retail store, which expanded across India from 1994- 1998 . In the year 1997,
Pantaloon moved to large format lifestyle retailing with the launch of Pantaloons
India’s family Store. Pantaloon has grown to a 29 store network and occupies
2,63,000 sq ft of the retail space. They contributed Rs 174 crores to the total
turnover of the company.
Big Bazaar owned by Pantaloon Retail India Limited, the flagship
retail chain of the Future Group, achieved a unique milestone in the history of
world retail - by being the first hypermarket format in the globe to roll-out the
fastest 101 stores in a short span of seven years. This hypermarket chain was
introduced in India by Pantaloon Retail (India) Limited. The year was 2001. The
first store opened in Kolkata and was followed by stores in Hyderabad, Bangalore
and Aurangabad in a short span. It works on the same economy model as Wal-Mart
and has had considerable success in many Indian cities and small towns. The
Group is confident of the Indian retail story. It has not slowed down its expansion
plans despite many other retailers slowing expansion, reducing the number of
outlets, effecting layoffs and even exiting the businesses. In 2006-2007 more
Indians discovered the value of shopping in Big Bazaar. Big Bazaar launched 27
new stores in 22 cities, covering over 1.40 million square feet. While Big Bazaar
continued to expand in the large cities it also tapped consumptions potential in
smaller cities like Agra, Allahabad, Coimbatore, Surat, Panipat, Palakkad, Kanpur,
Nashik, Jalagaon and Kolhapur. By May 2008, there were 89 BigBazaars spread
across various cities and towns across the country. Big Bazaar plans to have 300
stores and is expecting revenues of130 billion rupees by the year 2011.
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At the time of the launch of Big Bazaar there was no real precedent
in the Indian market giants the RPG hypermarkets had opened in Hyderabad only
two months prior to the launch of Big Bazaar. A western model had to be adapted
to suit the needs of the Indian environment various local markets and local market
leaders were studied. This was done to understand the product mix and the prices
offered. Saving is the key to the Indian middle class consumer. The store which
would be created had to offer value to the consumer. Keeping this in mind, the
concept of Big Bazaar was created.
.
Big Bazaar offers a wide range of products which range from
apparels, food, farm products, furniture, child care, toys, etc. Products of all the
major brands are available at Big Bazaar. Also, there are many in house brands
promoted by Big Bazaar. BigBazaar sold over 3 lakh pairs of jeans, 50,000 DVD-
players and 25,000 microwave-ovens. In all, the fashion, electronics and travel
segments made up about 70 per cent of sales. The tag-line is "Is Se Sasta Aur
Accha Aur Kahin Nahi". They work on the model of economics of scale. There
pricing objective is to get Maximum Market
Marketing Techniques used by Big Bazaar:
Value Pricing (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 used as promotional tool. Big
Bazaar also
caters on Special Event Pricing (Close to Diwali, Gudi Padva, Durga Pooja,
Independence day, Republic day etc.)
Differentiated Pricing:
Time 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

50
Bundling:
Selling combo-packs and offering discount to customers. The combo-packs
add value to customer. Big Bazaar is aggressive on their expansion plans. Big
Bazaar started many new and innovative cross-sell and up-sell strategies in Indian
retail market. The various promotion techniques used at Big Bazaar include "Saal
Ke Sabse Saste Teen Din", Future Card (the card offers 3% discount), Shakti
Card, etc.
Big Bazaar Hyper mart chain in India
Outlet 140 Outlets
Parent Group Future Group
Owner Kishore Biyani
Found 2001
Head quarter Jogeshwari, Mumbai
Industry Retail
Tag line Is Se Sasta Aur Accha kahin
nahi
Brand Image:
“Is se sasta aur accha kahin nahi” Nothing captures the spirit of Big
Bazaar better than this one line. It is a simple statement and yet it positioned at the
top of Indian customers mind. It shows that big bazaar was built on the foundation
of entrepreneurship and simplicity. They believe in service and value for the
customers. They consider that it is their only duty to keep customer in mind at
every step; they go that extra mile and buy directly from source in bulk so that they
can get best rates by keeping the margin low.
Merchandise:
Main objective of the store layout is to maximize the interface between
customers and merchandise. It provides easy accessibility to the customers to view
the offerings of the store. Layout of the store has been strategically designed in
order to make effective use of merchandise and passage to draw customers’
attention on store’s offerings Big Bazaar has a wide range of merchandise they
have both branded and unbranded products like –

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Home lien items:
Like bed sheets, pillow covers, carpets to kitchen utility items like steel
utensils and crockery and other minor utility items required in a house.
Electronic items:
Like refrigerator, T.V, vacuum cleaner,music system, vacuum cleaner,
washing machine. Etc.
Mobile Zone:
A wide range of mobile phones and accessories is available at lowest
possible price.
Furniture:
All kind of furniture is available that one may require decorating the house.
Star Sitara:
In this section all kinds of cosmetic items are made available.
Opticians:
In this section all brands and types fashion glasses are available.
Men Ladies and kids wear:
This section includes fashion and casual wear for men ladies and kids both
branded and unbranded.
Foot wear:
In this section footwear for men women and kids is made available.
Music:
A wide collection of CDs DVDs is made available.
Toys:
All kinds of toys for children are available.
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Stationary:
All kind of office stationery and stationery for school going kids is
available.
Loyalty Program in Big Bazaar:
According to Kishore Biyani, the big brain behind Big Bazaar, price,
quality or services are the only way to retain customers in retail. The repeat
customers spend more than the average customers and need to be encouraged to
come back. That’s why the stores have started offering special discounts to
customers who join their loyalty card programme. Lifestyle, for instance, has a
loyalty programme called `The Inner Circle’, while Pantaloons offers a `Green
Card’. Rewards programmes, Westside have `Club West’ and `First Citizen’ from
Shopper’s Stop to woo the customer. Firstly, Citizen Citibank Card and ICICI
Bank had tie-up with Big Bazaar. The ICICI Credit Card EDC terminals were
setup in Big Bazaar. The company woos the customers to subscribe for Future
Credit Card. The Future card is a loyalty cum credit card of future holdings and the
customer will get the full benefit of this card if and only if the card is used in any
of the Future Group outlets like Big bazaar, and that too if swiped in an ICICI bank
EDC machines in the outlet cash counter.
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Different Retail Marketing Schemes Offered By Big Bazaar:
Exchange offer:
A new offer came in from Big Bazaar, to exchange your old goods for
coupons which one can reimburse with goods.
Sabse Sasta Din:
On the ‘Republic Day’ and ‘Independent Day’ have special offer for
ordinary Indians with Big Bazaar’s mega sales festival, ‘Sabsa Sasta Din’. No
event before had influenced a day’s routine of thousands of people in different
parts of the country like this sales festival.
Wednesday Bazaar:
Big Bazaar has introduced a ‘Wednesday Bazaar’ concept called “Hafte
Ka Sabse Sasta Din”. The aim, according to the chain, is to give homemakers the
power to save the most and even the stores in the city don a fresh look to make
customers feel that it is their day. The Wednesday Bazaar also offers clothes,
accessories and fashion jewelers and personal care products.
Monthly Bachat Bazaar:
Big bazaar has scheme of ‘Monthly Bachat Bazaar’ at the starting of every
month, its start from date 1 to 8, it’s the time when most of the working people get
their salaries, so big bazaar take good advantage of grabbing these salary by giving
this scheme. This offer is on food and beverages. Most of working people buys
food and beverages for whole month during these days.
Special offer before college or school start:
Big Bazaar provide special offer when there is time of starting schools,
give special offer or discount on stationery items and for college going students
provide special offer on apparel like jeans, t-shirt etc., on foot ware, bags, etc., In
Big bazaar in store offer on different product is going on the whole year.
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Sampling of new product
Big Bazaar arranges a sampling stall for a new product coming into market
to introduce. Customers can test those new items on free of cost and if they like it
then make purchase of it. In short customers can trail a new product. Big bazaar
has tie up with those products so that this can be possible. Big Bazaar has provided
sampling for Nescafe, nimbooz, 7 up a new product of PepsiCo, act to pop corn
etc.
Customer Services of Big Bazaar:
Big Bazaar provides a wide range of services to its customers like Trial
rooms, Elevators, Car parking, Security, Baggage counter, Trolleys, Gift wrapping,
Free call in case of emergency, for electronics item provide free home delivery,
Wheel chair is provided at the entrance of the Big Bazaar, stretcher, in any case a
mother wanted to feed her infant child or little child there is mother room to feed
the child, water so that one could shop easily. They even provide them with after
sale services in case of buying electronic items. One of the major services provided
by them are one stop shop as one could get a whole range of items under one shop
and at the most reasonable price. They always have their
outlets in such a location where it is easy to commute. Big Bazaar provides a
customer help desk at entrance of the shop, where customer can get all the
necessary information of any new scheme or offer going on. Customer desk is for
helping and guiding the customers. Customer desk help have complaint or
suggestion box in which customer can write their suggestion and complaint
regarding service, product etc. Big Bazaar provides toll free number for customer
care and email id through which customers can give their complaints and
suggestion. A complaint of any customer can be solved within 24 hrs by a person
who handle complaints if he is not able to solve it within 24 hrs then he try to
convince that customer, that it would be solve within few hours or days. If that
fellow is not at all able to solve the problem of the customer then it goes to zonal
office.
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Basic Marketing Strategy of Big Bazaar:
According to Kishore Biyani’s theory, change and confidence among the
entire population is leading to rise in consumption, through better employment and
income which in turn is creating value to agriculture products across country.
4.1 MISSION
We share the vision and belief that our customer and stakeholder shall be
served only by creating and executing future scenarios in the consumption space
leading to economic development.
We will be trendsetter evolving delivery formants, creating retail realty
making consumption affordable for all customer segments for classes and for
masses.
We shall infuse Indian brands with confidence and renew ambition .we
shall be efficient, cost-conscious and committed to quality in whatever we do.
We shall ensure that our positive attitude, sincerity, humility and united
determination shall be the driving forces in making us a success.
VISSION:-
Future group shall deliver everything, everywhere, every time for every
Indian consumer in the most profitable manner.
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VALUE
 Indianans
 Leadership
 Respectand humility
 Introspection
 Openness
 Valuing and nurturing
 Simplicity and positivity
 Adaptability
Quality policy:
All products sold at Big Bazaar are guaranteed to be at good price and of good
quality.
Price guarantee:
If within two days of purchase, you find a product of same brand /quality available
at a lesser price, please bring back to us within ten days along with cash memo and
we will give you a gift voucher which will be of DOUBLE the value of the price
difference.
Infrastructure Facilities:
A typical Big Bazaar store usually consists of 2-3 floors. The Back office is
situated at the ground floor. The Big Bazaar stores are fully air conditioned and are
equipped with music facilities, escalators, Parking facilities.
4 P’S of Big Bazaar:
Product Mix of Big Bazaar:
Apparel Home Care Chill Station Farm Produce
Denims &Shirt Shampoos Soft Drinks Fruit
Fabrics Detergent Packaged Juices Vegetable
Formal Wear Soaps Milk Items Imported Fruit
Casual Wear Liquid Wash Frozen Foods Dairy products

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Price Mix:
 Value Pricing.
 Promotional Pricing.
 Low Interest Financing.
 Psychological Discounting.
 Special Event Pricing.
 Differentiated Pricing.
 Time Pricing.
 Bundling.
Place Mix:
 Initially Identifies Future/Potential development areas.
 Acquire such areas at an early phase before the real estate value booms.
 Located at high traffic areas.
 Design to look crowded.
Promotion Mix:
 “Saal Ke Sabse Saste 3 Din”
 Future Card (3%Discount)
 Advertising (Print ads, TV Ads, Radio)
 Brand Endorsement by M.S Dhoni
 Exchange Offer.
 Weekend Discount.
 Point of Purchase Promotion.
Customer Segmentation of Big Bazaar:
 Big Bazaar target higher and upper middle class customers.
 The large and growing young working population is a preferred customer
segment.
 Big Bazaar specially targets working women & home markets
 who are the primary decision maker.
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Big bazaar uses 8 golden rules to deal with Customer Services:
1. Answer the phone.
2. Don’t make promise unless you will keep them.
3. Listen to your customer.
4. Deal with complaints.
5. Be helpful.
6. Train your staff to be always helpful, courteous and knowledgeable.
7. Take the extra step.
8. Throw in something extra.
Competitors of Big Bazaar with regard to services:
 Wal-Mart
 Reliance
 Shoppers stop
 Vishal mega mart
 Local retailers
Big Bazaar targets to be achieved
 The aim is to increase the retail business to around 30 million square feet by
2011 as compared to 8 million square feet now.
 To become a substantial part of every Indian’s wallet.
 To get across 30 per cent of the population of entire nation which is now just
8 per cent.
 To increase organized retail from 3 per cent to at least 18-20 per cent in next
2 years.
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CORE VALUES IN BIG BAZAAR
The core values in Big Bazaar are:
1. Indianness – Confidence in ourselves
2. Leadership – To be leader, both in thought and in business
3. Respect and Humility – To respect every individual and be humble in our
conduct
4. Introspection – Leading to purposeful thinking
5. Openness – To be open and receptive to new ideas, knowledge and information
6. Valuing and Nurturing relationships – To build long term relationship
7. Simplicity & positivity-Simplicity and positivity in our thought, business and
action
8. Adaptability – To be flexible and adaptable to meet challenges
9. Flow – To respect and understand the universal laws of nature.
DIFFERENT CUSTOMER SERVICES:
 Online shopping:
o Big Bazaar has an official website, FutureBazaar.com,which is one of
the most favorite sites among people of India for online shopping.
Future Bazaar is an online business venture of Future Group, which
sells an assortment of products such as fashion, which includes
merchandise for men and women, mobile accessories, mobile
handsets and electronics like home theatres, video cameras, digital
camera, LCD TVs, kitchen appliances and many more.
 Discounts:
o ‘Hfte ka sabse sasta’ din was introduced by the Big Bazaar, wherein
extra and special discounts were offered on Wednesday every week,
to attract the potential buyers into their store.
 Security check:
At each exit of Big Bazaar, they use alarm systems or Electronic Article
Surveillance system, which detects the products that has attached tags or not.
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Customer Relationship Management of Big Bazaar:
The Big Bazaar first tries to determine likely prospects i.e. the people who
have a strong potential interest in the product and ability to pay for it. The Big
Bazaar hopes to convert many of its qualified prospect into first time customers
and then to convert those first time customers into repeat customers. Then the Big
Bazaar tries to convert these repeat customers into clients – they are those people
who buy only from the Big Bazaar in the relevant product categories. The next
challenge for the Big Bazaar is to convert these clients into advocates. Advocates
are those clients who praise the Big Bazaar and encourage others to buy from it.
The ultimate challenge is to convert these advocates into partners where the
customers and the clients work actively together to discover ways of getting
mutual benefit. Thus in CRM the key performance figure is not just current market
share but share of life time value by converting customers into partners. In CRM
the Big Bazaar identified that small percentage of key account holders whose
contribution to the Big Bazaar revenues is high. So from this point of view, CRM
is also known as key account management.
Innovative Management Practices of Big Bazaar:
Big retail chains such as Future Group have set up their own mall
management divisions that operate as their subsidiary companies. Big Bazaars are
focused the following areas under the innovative management practices.
Infrastructure Management:
Infrastructure management refers to the management of facilities provided to
the tenants within the mall. This includes provision of adequate power supply,
safety issues in case of emergency and miscellaneous issues related to signage,
water supply, sanitation, etc. These form an integral part of mall management as
they are the basic amenities that any tenant would look for in a mall. Infrastructure
management also includes risk management issues such as essential safety measure
asset liability and environmental audits as well as emergency and evacuation
training. It also means optimal utilization of resources to meet organizational
needs.
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Ambience Management:
The overall shopping experience provided for consumers becomes an
important factor for the success of any mall. Ambience management includes
management of parks, fountains and overall look of the mall. A mall is not just a
place for shopping but is also a place where people spend their leisure time. In
favourable, lush green landscaping with seating facilities and the presence of food
and beverage inside or outside the mall can increase foot traffic.
 Traffic Management:
Traffic management includes managing foot traffic into the mall and
parking facilities. Foot traffic management involves crowd management inside the
operational area of a mall. The flow of people is related to the design of the mall
and the spatial distribution of its tenants. For example, a star-shaped mall tends to
have a problem of crowding in the centre of the mall, as everyone has to pass
through the centre while moving from one side to the other. Circular malls, on the
other hand, would not have this problem. They tend to have better pedestrian flow
and less congestion. Managing parking facilities includes provision of ample
parking and maneuverings of cars in the parking lot. Big Bazaar is an example of a
successful mall led by good facility management practices.
 Finance Management:
Professional financial management of a mall as a business venture is a
must. Mall management also covers financial management, which involves
monitoring and controlling of various issues such as: cash receipts and collection
of income including rentals, service charges, car park receipts, electricity and other
utility income developing accounting systems to track the ageing of debts, payment
delay patterns, bad debts and payment of all invoices and expenses developing
standard financial templates so that a detailed annual property budget is prepared at
times, organizing resources to deliver an efficient and effective annual external
Audit.
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 Strategic Objectives of the Company:
Strategic objectives of a company can be short term and long term. The
short term objectives are the goals that a company plans to achieve in one or less
than one year. The objectives can range from the products and services they offer
to the management objectives such as enlarging the human capital or more
investment, etc. The Long term objectives refer to the goals that a company wants
to achieve in the long run, more than one year. The short term goals help the
company to reach its long term objectives. Typically, long term objects lay out
what a company wants to become. Big Bazaar wants to become number one
retailer of fast moving consumer goods. This is a long term business objective
which can be achieved by achieving the short term objectives. When the market
requirements and customer
requirements change, companies review their objectives and change or update their
business objective to suit the market and customer requirements.
Innovative Marketing Strategies of Big-Bazaar:
 Exterior Presentation:
The quality of a store front is a major determinant for a customer and the
store appearance should never be compromised. The exterior appearance silently
announces what customers can expect inside. Good exterior visual merchandising
attracts attention, creates interest and invites the customer into business. Generally
the exterior presentation should be progressive, lavish or discount image to the
customer. The important point to be noted is that how a store visually welcomes a
customer has to do a lot, whether they enter or not.
 Exterior Signs:
An effective sign is a silent sales person. A sign must attract attention of
customers in less than ten seconds and should convey what the business is and
what it has to sell. The size of the letter used in signs should be large enough to be
read from a distant place. Elegant design and expensive sign material will convey a
business of luxury goods and services. A design of the sign conveys a great deal
about the business. Signs can also be used to target a specific market segment such
as youth, women, singles etc. Logo is also very important and plays a major role in

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attracting customers. They should be unique and noticeable. To put it in simple
words simple brief, well designed, well lettered and easy to read signs will attract
more customers and convey a feeling of welcome to the customers. A stores signs
is its identity. It is with the sign that the public recognize the store. Hence it should
create an image that can be consistently carried out as an identity of the store.
 Marquees:
Marquees are special type of signs used to display stores name. Effective
marquees should be designed so as it is different from others and attracts the
attention of customers.
 Banners:
Banners are economical but colorful and eye catching means of
promotion. They can be changed frequently to create different appearances which
will in turn attract customers to the store. It will be more effective when the colour
scheme and design concept used in the banners are the same as what is used in the
store, on promotional materials and newspaper ads.
 Entrance and Aisles:
Most of the first time customers remember the store entrance. This goes on
with the quote ‘first impression is the best impression’. Giving the best impression
to the customer’s right at the entrance is mandatory for any store. Cluttered aisles
makes the shoppers feel uncomfortable and hence leave to a bad shopping
experience. Entrances that allow shopping to come into a store without being
aware of their entering are also becoming very popular.
 Window Displays:
The display at shop windows is becoming increasingly popular as far as
visual merchandising stands. Changing window displays to suit themes and moods
and seasons is gaining popularity. Special emphasis has to be placed on a store’s
window displays because they are the information link to the potential customer. It
is reckoned that as many as one in every four sales could be the result of a good
window display. Window display should attract attention, create interest and invite
people into the store to purchase goods. The average amount of time an individual

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spends looking at a window display is about eleven seconds, and that is the
maximum time available to achieve this. Too much of merchandise must not be
crowded at a window, as customers find it difficult to determine the message and
what items are being promoted.
 Interior Presentation:
Selling space is the most important part of a store and therefore, efforts to
utilize each square foot will help to maximize sales. When planning interior
displays, it should be kept in mind that the theme and image presented on the
exterior must be carried throughout the interior of the store to provide consistency
for the customer. The purpose of interior display is to develop desire for the
merchandise, show what is available, and encourage both impulse and planned
buying. Three major goals of a store should be to motivate the customer to spend
money, project the image of the store and keep expenses to a minimum. Well
designed displays and in-store promotions are essentials for a consistent theme and
to help the customer find advertised items
 Display Design:
An effective way of attracting customers to a store is by having good
displays, both exterior and interior. A customer will be attracted to a display within
three to eight seconds, which is the time a customer spends to determine interest in
a product. Every display should be planned and must have a theme. Good design
makes a visual presentation come together. This means the design attracts attention
in a way that strengthens the store image, as well as introducing merchandise to the
customer. Sale or promotional good in front of the store should be placed for short
period of time only. If the sale or promotion lasts for several weeks, merchandise
should be moved to the rear of the store. The customer should always get to see
new exciting and creative merchandise with display at the front of the store.
 Use of music:
The store image and the mood of the customers can be changed
dramatically by the use of music. Music establishes moods, helps to motivate the
subconscious mind and create long lasting impression on the customers. Specific
music for particular merchandise can create a good shopping experience and can
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 Perfumes and Scent:
The other use of stimulation can be use of stimulating the olfactory lobe
of the brain. i.e. use of perfumes and scents. Layout having fresh breads and buns,
can entice the customers by the aroma. Segments of the store having soaps and
toiletries can enchant the customers by the use of perfumes and scents. A pleasing
scent can create a wonderful ambience and add to the customers shopping
experience. Scent can also be a major factor in determining which product to buy.
Everything from perfumes, scented candles, toiletries, cleaning products are all
bought while keeping scent in the mind. The scent generally determines which
product the customer purchases.
Impact of Big Bazaar on the Consumers Retailers:
1. Keeping the stockof the different verities of goods.
2. Applying various methods of demand creation.
3. Helping in the effective distribution of consumer goods.
4. Extending credit facilities to the consumers.
5. Providing many personal services to the consumers.
6. Providing essential data and information to the manufacturers about the
trend in marketing changes in fashion, tests, etc.
7. Making available the good according to the season.
8. Gives properadvice to the customer.
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Big Bazaar’s New Marketing Strategy:
Big Bazaar, a part of the Pantaloon Group, is a hypermarket offering a huge
array of goods of good quality for all at affordable prices. Big Bazaar with number
of outlets in different parts of India is present in both the metro cities as well as in
the small towns. Big Bazaar has no doubtmade a big name in the retail industry of
India, moreover shopping here is further made a memorable experience with the
varied rates of discounts on products as well as discount vouchers available in a
variety of amounts. Big Bazaar is a chain of shopping malls in India owned by the
Pantaloon Group. The idea from the very beginning was to make Big Bazaar very
comfortable for the Indian customer. Big bazaar is not just another hypermarket. It
caters to every need of the family. Where Big Bazaar scores over other stores is its
value for money proposition for the Indian customers. At Big Bazaar, the customer
will definitely get the best products at the best prices - that’s what they guarantee.
With the ever increasing array of private labels, it has opened the doors into the
world of fashion and general merchandise including home furnishings, utensils,
crockery, cutlery, sports goods and much more at prices that will surprise you. Big
Bazaar plans to add much more to complete their customers shopping experience.
Big Bazaar has launched new marketing strategy which is based on Guerrilla
Marketing. Guerrilla marketing warfare strategies are a type of marketing warfare
strategy designed to wear-down the enemy by a long series of minor attacks, using
principles of surprise and hit-and-run tactics. Attack, retreat, hide, then do it again
and again, until the competitor moves on to other markets. Guerrilla force is
divided into small groups that selectively attack the target at its weak points. In the
world of cut throat competition, corporateuse extension of the same strategy in
marketing. Corporatelike Pepsi, Coke etc have been using the same for quite some
time now and the latest entrant is our very own ‘Future Group’-Big Bazaar, Future
Bazaar, Pantaloons, e Zone are all part of this group and they are taking on the
biggies like Shoppers Stop, Lifestyle, and Tata’s Westside. In order to do the
same, Future Group have come up with 3 catchy and cheeky adcampaigns which
surely do catch our eyes and surely one can’t resist appreciating the same.
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Challenges to organized retail development in India:
Organized retail in India is little over a decade old. It is largely an urban
phenomenon and the pace of growth is still slow. Some of the reasons for this slow
growth are
1. The Kiranas continue:
The very first challenge facing the organized retail industry in India is
competition from the unorganized sector. Traditionally retailing has
established in India for centuries. It is a low coststructure, mostly owner
operated, has negligible real estate and labor costs and little or no taxes to
pay. Customer familiarity that runs from generation to generation is one big
advantage for the unorganized sector. On the other hand, organized sector
have big expenses to meet and yet have to keep prices low enough to
compete with the traditional sector.
2. Retail not being recognized as an industry in India:
lack of recognition as an industry hampers the availability of finance to the
existing and new players. This affects growth and expansion plans.
3.The High Costs of Real Estate:
Real estate prices in some cities in India are amongst the highest in the
world. The lease or rent of property is one of the major areas of expenditure. A
high lease rental reduces the profitability of a project. It is difficult to find suitable
properties in central locations for retail, primarily due to fragmented private
holdings, infrequent auctioning of large government owned vacant lands and
litigation disputes between owners.
4. High Stamp Duties:
In addition to the high costof real estate the sectoralso faces very high
stamp duties on transfer of property, which varies from state to state.
5. Lack of Adequate Infrastructure:
Poorroads and the lack of a cold chain infrastructure hamper the
development of food and grocery retail in India.
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6. Price War:
There is a price war between different retail organizations. Every one is
saying to provide goods at low costand offers various promotional schemes. In
such a case it is difficult to keep one’s customers with oneself.
7. Shortage of Skilled Manpower:
Front-end/retail assistant profiles in stores form a major proportion of the
employment in the retail sectorwhile store operations accounts for 75-80% of the
total manpower employed in the organized retail sector. Unfortunately, there are
very few courses specific to the retail sectorand graduates/post graduates from
other streams are recruited.
8. Policy Induced Barriers:
Organized retail in India is managed by both the Ministries of Commerce &
Consumer Affairs. While the Ministry of Commerce takes care of the retail policy,
the Ministry of Consumer Affairs regulates retailing in terms of licenses and
legislation. There is a need to govern retail operations through a single apex
body. A single agency can take care of retail operations more effectively.
9. Channel Conflicts:
Globally, retailers maintain a direct relationship with their suppliers. Due to the
complex taxation structure and geographical spread of the country, most FMCG
companies have developed regional distribution and re-distribution network.
Cutting out the distribution network will hurt the operating structure of
distributors.
10. Unique Indian Customer:
The Indian consumer experiencing modern retail has now warmed up to this idea.
Buying habits have still not changed, where people prefer to buy most of the fruits
and vegetables on a daily basis. The indian consumers have a strong preference for
freshly cooked food over packaged. Food mainly attributed to dietary patterns,
poorelectricity supply, low penetration of refrigerators and a family structure
where one of the primary roles of the housewife’s is feeding the family. There is
also an impact on the basket size because of non-availability of personal transport
facilities, due to which the consumers prefer to buy smaller quantities from stores
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Suggestions for overcome the challenges for Organized
Retail:
1. Acceptance of Industry Status to Retail:
Industry status should be given to improve retail development, to
facilitate organized financing and to establish insurance norms.
2. Incentives for Investments:
Tax holiday norms for cold storage chains, infrastructure and investment
in supply chain should be enacted.
3. Comprehensive Legislation:
Comprehensive legislation should be drafted and enacted with futuristic
approach.
4. Eliminating Archaic Laws:
Laws, essential Commodities Act APMC acts, licensing restrictions,
differential taxes, stamp duties, should be simplified and put in proper place so that
it would not hinder growth of retail sector.
5. Proper TaxStructure:
The current multipoint taxation should be rationalized. The
government should introduce a uniform taxation system across the country
to relax the law that hinders interstate flows of goods.
6. Establishment of national commissionon retail:
The national commission on retail must be established. The functions
should be:
 To set clear target for giant retailers for procurement. Enforce uniform
quality standards.
 Setup a regulatory bodyfor the governing the operations of retail sector.
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4.5 MAJOR MILESTONE
1987 = Company incorporated as man wear private limited .Launch of pantaloons
trouser, India’s first formal trouser brand.
1991 = Launch of BARE, The Indian Jeans brand.
1992 = Initial public offer (IPO) was made in month of May.
1994 = The Pantaloon Shoppe-Exclusive menswear store in franchisee format
launched across the nation . The company starts the distribution of branded
garments through multi-brand retail outlets across the nation.
1995 = John Miller Formal shirt brand launched.
1997 = Pantaloon India’s family store launched in Kolkata.
2001 = Bigbazaar “Is se sasta aur accha kahi nahi” India’s first hyper market
chain launched.
2002 = Food bazaar launched as the chain in super market.
2005 = Multiple retail format including collection i.e Furniturebazaar, shoefactory,
Ezone,etc are launched Across in nation.
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4.6 AFFILIATE COMPANIES
Home solution retail(india)Ltd.
Home solution retail (india) Ltd. (HSRIL) leads the group foray in the
home improvement and consumer election retailing segment .it caters to home
management requirement and productincluding furnishing and textiles ,furniture,
consumer electronic, home electronics and home services. It operate retail
formats like home town, furniture bazaar, E-zone.
Future capital holdings
Future capital is the financial arm of the group is involved in asset
management (both private equality and real estate funds) with plans to get into
other financial services including insurance, credit and other consumer related
financial services . It’s associated companies are (kshitij investment advisory
co.Ltd ,Investment adviser Ltd and Ambit investment advisory co.Ltd. )
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CHAPTER-5
THEORETICAL FRAME WORK
 Introduction
 History of CRM
 Why customer relationship management
 Ways to keep customer for life
 Thing need to be done for CRM
 Key CRM principle
 Architecture of CRM

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5.1 INTRODUCTION
The biggest challenge in the news millennium of liberalization and Globalization
for a business is to serve and maintain good relationship with the king-the
customers. In the past producers took their customers for granted, because at that
time the customers were demanding nor had alternative sources of suppliers .
But today there is a radical transformation .The changing business environment is
Characterized by economics liberalization ,increasing competition ,high consumer
choice, demand customer, more emphasis on quality and value of purchases etc.
All these changes have made today’s product shift from traditional marketing to
modern marketing. Modern marketing calls for more than developing a product,
pricing it, promoting it and making it accessible to target customers. It demands
trust ,a binding forces and value added with the customers.
“Customer relationship management (CRM)is a business strategy to acquire and
manage the most valuable customers relationships. CRM requires a customer-
centric business philosophy and culture to support effective marketing sales and
service process. CRM application can enable effective customer relationship
management, provide that enterprise has the right leadership, strategy and culture”
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5.2 HISTORY OF CRM
Customer Relationship Management (CRM)is one of the magnificent concept that
swept the business world in 1990’s with the promise of for fever changing the way
business small and large interact with their customer bases.
IN THE BEGINNING…………….
The 1980’s saw the emergence of database marketing. Which was simply a catch
phrase to define the practice of setting up customer services group to speak
individually to all of company’s customers.
Advance in the 1990’s
In the 1990’s companies began to improve on customer relationship management
by making it more of a two ways street .Instead of simply gathering data for their
own use ,they began giving back to their customers not only in term of the obvious
goal of improved customer services, but incentives, gifts and other pearks for
customer loyal.
True CRM comes of age
Real customers relationship management as its through of today. Instead of feeding
information into a static databases for future reference, CRM became a way to
continuously updated understanding of customer needs and behavior. In recent
year however ,several factor have contributed to the rapid development and
evolution of CRM .
These include :-
 The growing de- intermediation process.
 Advances information technology.
 Changing customer expectations.
 The total quality movement.
 Intense competitions.
 Retaining customers is less expensive than acquiring new ones.
 Necessity to have global account management for the customers.

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5.3 Why Customer Relationship Management?
 A satisfied customer in 10 year will bring 100 more customers to the
company.
 It cost 5 times more to more to attract a new customer than to serve an
old one.
 20% of the company’s loyal customers account for 80% of its
revenue.(pareto’s principle)
 The chances of selling to an existing customers are 1 and 2 the change
of selling to new customers are 1 in 6
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5.4 WAYS TO KEEP CUSTOMERS FOR LIFE
 Every part of the company’s marketing effort should be geared
towards building life time relationship.
 People wants to do business with friendly people .to have effective
relations a friendly attitude must permeate in organization.
 Information technology should be positively used to serve the
customers.
 The company should communicate and develop stronger customers
bonding by providing financial and social benefit.
 The company should try to know all its customers including their
lifestyle hobbies like and dislikes.etc
 The company should make it a point to deliver more than what is
promised.
 The company should always be flexible to bend its rules and
procedures in the client’s favors.
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5.5 Thing Need To Done For CRM
 A good CRM program can improve customers services by facilitating
communication in several ways.
 Provide product information product use information and technical assistance
that are accessible 24 hours a day ,7 days a week.
 Identify how each individual customers based on these individual requirements
and expectation.
 Provide a fast mechanism for managing and scheduling follow up sales calls to
assess post purchases cognitive dissonances repurchases probabilities
repurchase time and repurchase frequencies.
 Provide a mechanisms to track all point of contract between a customer and do
it in an integrated ways so that all sources and types of contact are include and
all users of the system see the same views of the customers(reduces confusion)
 Help to indentify potential problem quickly ,before they occur .
 Provide a user-friendly mechanism for registering customers complaint(that are
not registered with company cannot be resolved. And are a major sources of
customers dissatisfaction).
 Provide fast mechanisms for handling problem and complaint (complaint that
are resolved quickly can increase customer satisfaction).
 Use internet cookies to track customers interest and personalize product
offering accordingly.
 Use the internet to engage in collaborative customization or real time
customization.
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5.5 key CRM principle
Differentiate customers
All customer are not equal recognize best customers disproportionately
understanding each customers becomes particularly importance.
What CRM needs to understanding while differentiating customers
 Sensitivities, Tastes, preference and personalities.
 Life style and age
 Culture background and education.
 Physical and psychological characteristics.
Differentiating offereing
 Low value customers requiring high value customers offering.
 Low value customers with potential to become high value in near future.
 High value customers requiring high value services.
Keeping existing customers
Grading customers from very satisfied to very disappoint should help the
organization in improving it’s customers satisfaction level and score .As a
satisfaction for each customer improves ,so shell the customers retention with the
organization.
Maximizing life time value
Exploit up selling and cross selling potential .By identifying life stage and life event
triggers point by customers ,marketers can maximizing share of purchase potential.
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Increase loyalty
Loyal customers are more profitable .any company like its mind share status to
improve from being a suspectto being an advocate. Company has to invest in term
of its productand service offering to it’s customers.
5.6 CRM PROGRAMS
ONE-TO ONE MARKETING
Meeting and satisfying each customer’s need uniquely and individually. In the mass
markets individualize information on customers is now possible at low costdue to
the rapid development in the information technology and due to availability of
scalable data warehouse and data mining product. By using online information and
data base on individual customers interaction, marketers aims to fulfill unique needs
of each mass market customer’s. Information on individual customer is utilize to
develop frequency marketing, interactive marketing and after marketing program in
order to develop relationship with high yielding customers.
Continuity marketing programs
Take the shade of membership and loyalty card programs where customers often
rewarded for their member and loyalty relationship with the marketers. The basis
premise of continuity marketing programs is to retain customers and increase
loyalty through long term special services that has potential to increase mutual
value through about each other.
Partnering programs
The third type CRM programs is partnering relationship between customers and
marketing to serve end user needs in the mass markets two types partnering
programs are most common: co branding and affinity partnering.

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5.7 ARCHITECTURE OF CRM
There are three application architecture of CRM:
1. Operational
2. Analytical
3. collaborative
1. Operational-automation to the basic business process (marketing ,sales,
services)
2. Analytical-supportto analyses customers behavior , implementation
business, intelligence alike technology.
3. Collaborative-ensure the contactwith customers (phone, email, fax, web,
sms, post, in person)
1. Operational CRM
Operational CRM means supporting the “front office” business process
which include customers contact (sales, marketing, and services). Operational
CRM provides the following benefits:
 Deliver personalization and effective marketing, sales and through multi
channel collaboration.
 Enables a 360- degree view of your customers interacting with them.
 Sales people and services engineers can access compile history of all
customers interaction with your company ,regarding of the touch point.
The operational part of CRM typically involves three general areas of business:
 Sale forces automation (SFA) – SFA tool are designed to improve field sales
productivity. Key infrastructure requirement of SFA are mobile
synchronization and integrated product configuration.
 Customer services and support(CSS)-CSS automates some services request,
complaint, product configuration.
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 Enterprise marketing automation (EMA)-EMA provides information about
the business environment including competitor, industry treads and macro-
environmental variables
ANALYTICAL CRM
In analytical CRM ,data gathered with in operational CRM and other sources are
analyzed to segment customer or to identify potential to enhances client
relationship .example of campaigns directed towards customer are:
Acquisition: cross-sell, up –sell
Retention: Retaining customers who leaves due to maturity or attrition.
Information :Providing timely and regular information to customer.
Modification: Alternating detail of the transactional nature of the customer
relationship.
Analysis of customer data may relate to one or more of the following analyses:
Contact channel optimization ,customers acquisition / Reactivation / retention,
Customer segmentation, customers satisfaction measurement /increase, sales
coverage optimization ,fraud detection analysis ,financial forecast, pricing
optimization ,product development, program Evaluation ,risk assessment
management data collection and analysis is viewed as continuing and iterative
process .Therefore ,most successful analysis CRM project take advantage of a data
warehouse to provide suitable data.
COLLABORATIVE CRM
Collaborate CRM facilitates interaction with the company through all channel
(personal, letter, fax, phone, web, e-mail) and support co-ordination of employee
team and channels. It is a solution that bring people ,processes and data together so
companies can better serve and retain their customer .The data/ activities can be
structured ,unstructured, conversational and transactional in nature . collaborate
CRM provide the following benefit:
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 Enable efficient productive customer interaction across all communications
channels.
 Enable web collaboration to reduces customers services costs.
 Integrates view of the customers while interaction at the transactional level.
PORTER’S FIVE FORCE MODEL
Analysis in context to Big Bazaar
1. Competitive rivalry within an industry
Retailers always face stiff competition. The slow market growth for the
retail market means that firms must fight each other for market share.
Big Bazaar has to face immense competition from its rivals like Reliance
Retail, Aditya Birla Group, Bharti and Walmart etc.
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2. Threat of new entrants
One trend that started over a decade ago has been a decreasing number of
independent retailers. Walk through any mall and you'll notice that a
majority of them are chain stores. While the barriers to start up a store are
not impossible to overcome, the ability to establish favorable supply
contracts, leases and be competitive is becoming virtually impossible. Their
vertical structure and centralized buying gives chain stores a competitive
advantage over independent retailers
FDI policies are not very favourable for the international players as of today,
however they are increasingly loosening thereby causing a major threat to
Bog Bazaar. Domestic conglomerates are looking to initiate new retail
chains. Also international players are looking to foray India.
3. Bargaining powerof supplier
The bargaining power of suppliers varies depending on the target segment.
The unorganized sector has a dominant position. There are few players who
have a slight edge over others on account of being established players and
enjoying brand distinction.
They have locally sourced suppliers. Big companies like HUL and P & G.
Also local suppliers provide flexibility which works to the advantage of Big
Bazaar.
72

Final report of summer intenship in big bazaar

Final report of summer intenship in big bazaar

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