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
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
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.
“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.
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, 1996Berman, B. (2006). Developing an Effective Customer Loyalty Program, California Management Review; Fall2006, Vol. 49 Issue 1, p123-148, 26p
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.
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.
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
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
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
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
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.
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.
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
• X2= Summation of (O-E) Where, O= Observed set of frequencies E= Expected set of frequencies
Sample Methods - Random Simple Sampling Sample size - 51 Primary data -Questionnaire-Interview Sample:- Sample Units:- sampling unit is Kolkatas Big Bazaar . Source of data:- through primary sources Market survey & area:-sealdah, Dharmatala Big bazaar Sampling size:- 51
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
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.
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.
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..
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.
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
Magazines and Newspapers· The Hindu Business Line· Economic Times· Business Week· Business World· Harvard Business Review· Franchise Plus· Images Retail