loyality

1. SUBMITTED TO SUBMITTED BY
JURY VISHWAJEET BHARTI
MFM
ROLL-25
2ND SEMESTER

2.  INTRODUCTION BIG BAZAAR
 OVERVIEW OF THE COMPANY
 WHAT IS CUSTOMER LOYALTY?
 LITERATURE SURVEY
 OBJECTIVES OF THE SURVEY
 RESEARCH METHODOLOGY
 PROPOSED CHAPTERS
 THE SIGNIFICANT FEATURES OF BIG BAZAAR
 PROMOTION TECHNIQUES
 SALES PROMOTION TECHNIQUES
 LOYALTY PROGRAMS
 THE CUSTOMER EXPERIENCE
 RESEARCH OBJECTIVE
 RESEARCH METHODOLOGY
 HYPOTHESIS AND TESTING
 SAMPLING PLAN
 FINDINGS
 CONCLUSION
 RECOMMENDATIONS
 LIMITETIONS
 BIBLIOGRAPHY

3.  Big bazaar- Hyper market chain in India
 Outlet – 140+ outlets
 Parent group – future group
 Owner – Kishor Biyani (CEO)
 Founded – 2001
 Head quarter – Jogeshwari,mumbai
 Industry – Retail
 Web site – www.bigbazaae.com
 Tagline – is se sasta aur khin nhi

4.  Big Bazaar, one of the biggest retail format of future group
(India) Limited
 One finds over 170,000 products under one roof.
 They provide different offers at different intervals of time.
 They have opened the doors into the world of fashion and
general merchandise including home
furnishings, utensils, crockery, cutlery, sports goods and much
more at surprisingly low prices.
 In recent years, Big Bazaar has adopted value pricing in
which they win loyal customers by charging a fairly low price
for a high –quality offering.
 The added advantage for the customers shopping in Big
Bazaar is that there are all time discounts and promotional
offers going on in the Big Bazaar on its scalable products.

5.  “Loyalty Program” can be defined as a
program that allows consumers to
accumulate free rewards when they make
repeated purchases with a firm.”
(YupingLiu, 2007)
 Source - YupingLiu(2007). Rinkodaros genijus. Verslo žinios; 488 p.

6.  Maloney (2006) propose to exclude purposes according to their
stability criteria: Operative/ changing purposes i.e. (1) increase the profit
while raising levels of customers’ purchase or products consumption, and (2)
expand categories of offering products from suppliers. Stabile purposes i.e
develop the stronger and closer connection between products and
customers, help to develop and control customers’ database usefully. Later
then company will implementing loyalty programs, these purposes can
change. Popularity of loyalty programs, the distribution among
customers, rendering of advantages for customers are influencing purposes
as well. Also additional purposes are excluding in loyalty programs
formation, which later let to develop and control loyalty programs, i.e., further
cross sale, development of databases, help in developing additional trade
connections, creating and improving public relations politic of the
company, create friendly relations with other companies and association of
them for the general aim.
 According to Long & Schiffman (2005) it is easier for the company to
estimate the particular loyalty program type then purposes of these
programs have evaluated.
Source - · Zeithaml Valarie A,Maloney, Bitner Mary Jo, Services Marketing, McGraw- Hill, International Edition, 1996
Berman, B. (2006). Developing an Effective Customer Loyalty Program, California Management Review; Fall
2006, Vol. 49 Issue 1, p123-148, 26p

7.  Food bazaar.
 Electronic bazaar.
 Furniture bazaar.
 FutureBazaar.com
 Telecalling services.(T24)

8.  Big Bazaar - Isse sasta aur accha kahin nahi :- Big Bazaar has
adopted value pricing in which they win loyal customers by charging a
fairly low price for a high – quality offering.
 Wednesday Bazaar – Hafte ka sabse sasta din :- In January 2007, Big
Bazaar introduced a Wednesday Bazaar concept called “Hafte Ka Sabse
Sasta Din” with the aim to give homemakers the power to save the most
on this day of the week
 Sabse Saste panch Din (Big days) :- In 2006 they started a new
shopping festival, i.e. Sabse Saste panch Din on 24, 25 ,26,27,28 and 29th
of
January. Big bazaar throwed up to 65% of on each & every products in
he store for three days.
 Big Bazaar announced The Great Exchange Offer with a “Bring anything
old and take anything new” concept which started from the 16th of Feb
2008 at the Landmark store.

9.  Price promotion:- Price promotions are also commonly
known as" price discounting". These can be done in two ways:
*A discount to the normal selling price of a product, or
*More of the product at the normal price.
 Coupons:- Use of coupon promotions is often best for
new products or perhaps to encourage sales of existing
products that are slowing down.
 Gift with purchase:- The "gift with purchase" is a very
common promotional technique. In this scheme, the
customer gets something extra along with the normal
good purchased such as perfumes and magazines etc.

10.  Competitions and prizes:- This is an important tool to
increase brand awareness amongst the target consumer. It
can be used to boost up sales for temporary period and
ensure usage amongst first time users.
 Money refunds:- Here, a customer receives a money
refund after submitting a proof of purchase to the
manufacturer

11.  Point-of-sale displays:- Shopping habits are changing or
the people living in metropolitan cities. People prefer big
retail outlets like Big Bazaar to local kirana stores. Most of
the decisions of buying are taken by the virtue of point-of-
sale displays in these retail outlets.
 Frequent users/ loyalty incentives:-Repeat purchases
may be stimulated by frequent user incentives. Perhaps the
best examples of this are the many frequent flyer or user
schemes used by airlines, train companies, car hire
companies etc

13.  Customer Loyalty measures are designed for the
people within a company who dictate the strategic
direction of the company. These measures
evaluate the performance of a company’s current
customer base and drive the future direction of a
company’s overall customer strategy. Big bazaar’s
loyalty programs are comprised of:
• Membership card
• Discount
• Shop at home
• Home delivery

16.  The customer experience is comprised of the following
components:-
 POPULATING THE CUSTOMER PROFILE:- To create the
Ideal Customer Experience, Big Bazaar populates the
Customer Profile with the relevant information .
 DELIVERING AND RECEIVING VALUE AT EACH
CUSTOMER
 INTERACTION:- Big Bazaar views each interaction as a
golden opportunity to deliver value through its
products, services, and processes, as well as to receive
valuable information from the customer in the form of
feedback.
 CUSTOMIZING THE CUSTOMER EXPERIENCE:- By
understanding an individual’s needs, it creates the Ideal
Customer Experience by customizing the
products, services, and processes to meet the needs of the

17.  PRIMARY OBJECTIVE
 To find out in today’s competitive scenario loyalty programs
are successful to attract customer attention or not.
 SECONDRY OBJECTIVES
• To find out the increase in customer loyalty by means of
measuring various factors affecting.
• To find out customer’s reactions to various loyalty programs
and change in their purchase decision due to these programs.
• To analyze customer’s expectations from retail format like
convenience store in terms of offering of loyalty programs.

18.  Research problems:- consumer’s reactions
and expectation from loyalty programs of
convenience store format, Big Bazaar
 Research methodology: Exploratory method
 Descriptive research is a type of research
conducted when we have to find out the
frequency with which something occurs. This
research is guided by an initial hypothesis.

19.  Hypothesis testing for this report has evolved around formulating a nul
hypothesis and an alternative hypothesis as regards to the percentage of
population availing the loyalty programs
 H(o) Null Hypothesis
 :- Mostly 70% of the population would be availing the loyalty programs
carried out by Big bazaar.
 H(T) Alternative Hypothesis:-
 Less than 70% of the population would be availing the loyalty programs
carried out by Big Bazaar
 At 5% level of significance we test the above mentioned hypothesis as
per the results obtained.
 • The Chi-Square test has been taken up as the selection criteria for the
above mentioned data. The Chi-Square test which shows the magnitude of
discrepancy between observed and expected frequency can be expressed
symbolically as


20. • X2= Summation of (O-E)
 Where,
 O= Observed set of frequencies
 E= Expected set of frequencies

21.  Sample Methods - Random Simple Sampling
 Sample size - 51
 Primary data -Questionnaire-Interview
 Sample:-
 Sample Units:- sampling unit is Kolkata's Big Bazaar .
 Source of data:- through primary sources
 Market survey & area:-sealdah, Dharmatala Big bazaar
 Sampling size:- 51

22.  Big Bazaar has been preferred by most of the households
frequently and they use to purchase daily requirement material
from there. While still 15% of people don’t prefer to buy daily
requirement items from organized formats.•
 The data predicts that customers at nearby locations of Big
Bazaar prefer to go to there often but it is not destination for
customers every time.
 35% go there often
 30% go there occasionally
 15% go every time
 20% people go there sometimes

23.  The ratio of customers using loyalty programs floats between
60%-62%.Educated people are giving more attention to the
loyalty card due to the awareness of its future benefits
monetarily as well as in getting right information of the
production.
 Most of the customers feel satisfied from the loyalty program
offerings of Big Bazaar so it has been successful in fulfilling
customer’s expectations. While 25% of customers still want
to get some more benefits in return of their loyalty to the store.
 Customers feel 55% motivated to shop from Big Bazaar due to
their loyalty programs.

24.  In our calculations: The calculated value of is more
than the table value. So, the hypothesis is
REJECTED i.e. less than 70% of the population is
only availing the loyalty program carried out by Big
Bazaar.
 There are maximum customers who are satisfied
with the merchandising of the store and they find
every product of brand in each category and shelf
according to their choices.
 They are having some complains regarding the
future cards.

25.  Customers wait for discount loyalties provided by
them but not too much
 Customers are not aware of the benefits of the
card.
 Many of the customers are not even using any of
the loyalty program.
 Store has been a big flop at online shopping
centre as people want to touch and select
their items before purchase..

26.  The materials like shopping bags, catalogues etc. are appealing to
attract the customers but some others materials as new offers ,free
samples of new products should be added this series to attract the
customers.•
 They need not to deviate what they are providing as a loyalty
program , i.e. future card.
 Store must work upon its idea of shopping at home facility and also
delivery facilities should be improved.•
 Customers want to avail discounts and clubbed offering so, they
must be given more monetary benefit in terms of cost savings.•
 Since loyalty programs are motivational factors for the customer so
their expectation from such programs must be achieved.

27.  Data out of date
 Lack of Money

28. Books
· Kotler Philip, Marketing Management, Prentice
Hall India, Millennium Edition, 2000
· Ries al, Trout Jack, Marketing
Warfare, Plume, Reprint 1986
· Zeithaml Valarie A, Bitner Mary Jo, Services
Marketing, McGraw- Hill, International
Edition, 1996
· Dunne Patrick, Lusch Robert
F., Retailing, Dryden, Third Edition, 1999
· Lucas George H. Jr., Bush Robert P., Gresham
Larry G., Retailing, All India Publishers, First
Edition 1997

29. Magazines and Newspapers
· The Hindu Business Line
· Economic Times
· Business Week
· Business World
· Harvard Business Review
· Franchise Plus
· Images Retail

30. Websites
 · www.retailyatra.com
 · www.agencyfaqs.com
 · www.indiaonestop.com/retailing.htm
 · www.euromonitor.com/Retailing_in_India
 · www.indiainfoline.com/bisc/reta.pdf
 · www.marketresearch.com/map/prod/1035097.html
 · www.webmasterworld.com/forum22/2874.htm
 · www.etstrategicmarketing.com/ summer-
apr2/strategic_iss.htm
 · www.ksa-technopark.com
 · www.pwcglobal.com
 · www.ebonyclick.com
 · www.pantaloon.com
 · www.shoppersstop.com
