0601086 customer’s expectations and feedback analysis


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0601086 customer’s expectations and feedback analysis

  1. 1. A PROJECT REPORT ON “Customer’s Expectations and Feedback Analysis” FOR BIG BAZAAR (A Division of Pantaloon Retail (I) Ltd) BY SATYA PRAKASH Under the guidance of PROF. SUNIL DOKE Submitted to "University of Pune" In partial fulfillment of the requirement for the award of the degree of Master of Business Administration (MBA) (2006-2008) Vishwakarma Institute of Management Pune-48 1
  2. 2. ACKNOWLEDGEMENT Its great privilege that I have done my project in such a well organized and diversified organization. I am grateful to all those who helped and supported me in completing the project in time. First and foremost I would like to thank Miss Rachaita Parihar (HR Big Bazaar, Allahabad) and Mr. Amritesh Pratap Singh, (Dept. Manager, home-ware) for giving me opportunity to work as a summer trainee in Big Bazaar (a division of Pantaloon Retail India) and there by fulfilling the requirements of our MBA course. I express my profound gratitude to Mr. Sunil Doke, my project guide who shared with me his valuable views and ideas and helped me in choosing the topic for my project and kept me motivated and also helped in solving queries, which I came across while doing the project. I would like to extend my gratitude towards Dr. Sharad Joshi, Director, Vishwakarma Institute of Management, for his technical and moral support required for the realization of this project report. I also extend my gratitude to my brother Mr. Om Prakash Singh, working with Big Bazaar, for providing me with the data required for the compilation of this project. Lastly I would like to thank all those people from Big Bazaar staff & my collage faculties for their valuable contribution in making this project a meaningful one. Satya Prakash 2
  3. 3. To Whomsoever It May Concern This is to certify that Mr. Satya Prakash is a bonafide student of our institute. He has successfully carried out his summer project “customer’s expectations and feedback analysis” titled, at Big Bazaar, Allahabad. This is original study of Mr. Satya Prakash and important sources of data used by him have been acknowledged in his report. The report is submitted in partial fulfillment of two years full time course of Masters in Business Administration 2006-2008 as per the rule. Mr. Sunil Doke Dr. Shrad Joshi Project Guide Director Vishwakarma Institute of Management 3
  4. 4. Is se.sasta aur achha kahin nahi! A Division of Pantaloon Retail (India) Ltd. Atlantis Multiplex. 34 B, Mahatma Gandhi Road, Civil Line, Allahabad. Pin Code - 211001 Tel.: 0532-3011000 Dated: 25/07/2007 TO WHOMESOEVER IT MAY CONCERN This is to certify that MR. Satya Prakash has done his summer project in retail marketing from Date 01/06/2007 to 25/07/2007. Mr. Satya Prakash was designated as Management Trainee and was based at the Company’s Big Bazaar located at Atlantis Multiplex, 34-B, M.G. Marg Road, Civil Lines, Allahabad – 211001. Yours faithfully, For Pantaloon Retail (India) Limited Authorised Signatory 4
  5. 5. INDEX 5 SERIAL NO. CHAPTER NAME PAGE NO. 1 Executive Summery 2 Introduction 3 Objective of the project 4 Retail Industry 5 Company Profile 6 Research Methodology 7 Analysis 8 Findings 9 Recommendations 10 S.W.O.T. Analysis 11 Questionnaire 12 Bibliography
  6. 6. Executive Summery The objective behind making this project is to know the customers expectations and how effectively the marketing practices are carried out to attract the customers with their expectations in the Big Bazaar. It takes care of the events and promotions, which are done to allure the customers to come to the store and increase the bill size of the organization. There are various branding strategies; discount offers, free parking and other promotional activities, which are used as a part of the marketing communication aspect of retail. All these events are communicated to the customers by Print advertising, via SMS, E-mail, Tele-calling or electronic advertising. During my internship I was assigned on: “CUSTOMER’S FEEDBACK ANALYSIS” Title: “Customer’s expectations and Feedback Analysis” at BIG BAZAAR” Introduction The study was conducted to increase the footfalls and to take the customer feedback about their expectations for the offers, variety, quality and service offered by BIG BAZAAR. Company profile In the company profile, the history and current scenario of BIG BAZAAR has been described. Objective • To study the customers expectations in BIG BAZAAR 6
  7. 7. • To check the satisfaction level of existing customers • To study the existing promotional materials by Big Bazaar. • To know about customers preferences Research methodology The research methodology used was descriptive research. The sample size was 100. Questionnaires were get filled by them at BIG BAZAAR, Allahabad. Details about the data collection methods and sampling units could be seen under the topic research methodology. Analysis Under this part the analysis of the questionnaires data which was collected has been done. Analysis of the data collected The study shows that service provided to the existing customers is at the satisfactory level. 7
  8. 8. S.W.O.T analysis The S.W.O.T analysis shows that the good reputation of the brand and the products available. Weakness of BIG BAZAAR is limited variety of products. Many of the products are un-available. In Allahabad it is the biggest retail mall, so it has a great opportunity to capture the whole market and build loyal customers. There is threat from some of the supermarket retailers such as Salasar and few local retailers but it is mandatory. FINDINGS • Customers think that the variety and the quality of products in the store were not good. • The customers faced parking problems. • The offers given to the customers are repeated every time. • Minimum percent of customers came to know about the offers through Tele- calling. RECOMMENDATIONS • More distribution of flyers in Newspapers should be there with which the customers will be able to know the offers. • There should be new offers every time. • Tele-calling should be done to the customers to inform them about the new offers. • More focus should be given on the advertisements of BIG BAZAAR. • The most important recommendation is the number of BIG BAZAAR members should be increased. More customers should be converted into BIG BAZAAR members. 8
  9. 9. INTRODUCTION The main motive of doing this research was to get the feedback from the customers, analyzing it and finding the weak areas in which BIG BAZAAR is and overcome the weaknesses to give a better service to the existing customers & future prospects. This company aims to target these customer groups & offer innovative & convenient service with the help of promotional strategies that will fulfill their needs fast and efficiently. The survey has been done at Allahabad on various factors such as variety, quality, service, promotions, offers and many more. The sample size was 100. This study aims at creating and analyzing brand awareness among the target Customers about the service offered to them by BIG BAZAAR. 9
  10. 10. OBJECTIVE OF THE PROJECT Every project report is carried out with some specific objectives in the mind. Objective is basically the purpose behind conducting a project and unless the objective is certain or specifically defined it is not understood what data has to be collected. Objectives of the project are nothing but what is to be learned out of this project report. This 60 days summer project was carried out in Big Bazaar, Allahabad. PRIMARY OBJECTIVE: 1. To know about the tastes of the existing customers. 2. To check the satisfaction level of existing customers & future prospects. 3. To know about customer preference. 4. To locate problems, if any. 5. Study of the promotional material by Big Bazaar. 6. Devising the marketing strategy to meet the customer’s expectations. SECONDARY OBJECTIVE: 1. To understand the nuances of Indian retail industry. 2. To gain better understanding of formats and processes prevalent in the industry. 3. To understand the needs and expectations of Indian consumers towards the organized retail sectors. 10
  11. 11. Retail Industry Indian Retail Industry Profile The size of retail industry in an economy depends on many factors and the level of consumer spending is the most important among these factors. The retail sector in India has grown by leaps and bounds in the last five years. The reason behind this growth has been the synergy of many propellants. However the growth is not always genuine as there are exaggerations as well. But these exaggerations also have benefits since they given a feel of growing competition all around. Secondly the present situation is just a depiction of nascent stage. The future of the trajectory may not be as steep as it is now or may be even slope downward. 'What will be the future size of the retail industry' is the mind boggling question. Another moot point that will gain importance in due time concerns the future of the unorganized retail market which constitute a significant proportion of the whole industry. Retailing in India: the present scenario India has topped the AT Kearney’s annual Global Retail Development Index (GRDI) for the third consecutive year, maintaining its position as the most attractive market for retail investment. The Indian retail market -- one of India's fastest growing industries -- is expected to grow from US$ 350 billion to US$ 427 billion by 2010. According to Euro monitor International, the Indian Retail market will grow in value terms by a total of 39.6 per cent between 2006 and 2011, averaging growth of almost 7 per cent a year. Modern retail accounts for about 4 per cent of the total retail market in India. This share is expected to increase to about 15 -20 per cent with the entry of a number of corporate into the segment. Modern retail formats have grown by 25-30 per cent in India in the last year and could be worth US$ 175-200 billion by 2016. 11
  12. 12. Indian Retail: Past Vs Present Let us compare the image of Indian retailing in 2004-05 to that of its status in 2007-08 in the following table: Magnification of the Indian Retail Industry Yardstick Situation in 04-05 Situation in 07-08 Value of retail sales Rs. 10,20,000 crore Rs 12,00,000 crore Annual growth rate 5% 5.7% Value of organized market Rs 35,000 crore Rs 55,000 crore Share of organized market in the sector 3.4% 4.6% Forecasts (after 5 years) about size of organized retail market Over Rs. 1,00,000 crore Rs. 2,00,000 crore Forecasts about growth rate of organized retail market Around 30% Around 40% The above table clearly shows that the retail market as well as the mindset required for it has experienced a thorough revisal in the last three years. This is just the beginning and Indians are sanguine that the sector will see rosy days in the future. This confidence has helped India acquire the No.1 position among 30 most attractive retailing destinations in the world according to the Global Retail Development Index of 2005 (by AT Kearney, India). Among emerging markets, India holds the second position after China in the list of most favored retail destinations. The retail industry employs a huge share of the total workforce in India. It is the second largest employer in India. Presently 7 percent of the total labor force is employed in the retail sector. It is also the largest employer in the services sector and maximum growth in the non-agricultural sector has been witnessed by retail trade. According to market analysts 300 new malls, 1,500 supermarkets and 325 12
  13. 13. departmental stores are going to come up in India in the next few days. The shopping revolution that has led to this retail boom is going to continue and this is good news for the government as well as those who wish to work in the organized sector. Major Points: 1. The Retail Sector in India can be split up into two, the organized and the unorganized. The organized sector whose size is expected to triple by 2010 can be further split up into departmental stores, supermarkets, shopping malls etc. 2. In terms of value the size of the retail sector in India is $350 billion. The organized sector contributes about 4.6% to the total trade. 3. The retail sector in India contributes 10% to the Gross Domestic Product and 8% to the employment of the country. 4. In terms of growth the FMCG retail sector is the fastest growing unit and the retail relating to household care, confectionery etc, have lagged behind. 5. The foreign retail giants were initially restricted from making investments in India. But now FDI of 51% is permitted in India only through single branded retail outlets. Multi brand outlets are still beyond their reach. Again they can only enter the market through franchisees,. This was how Wal-Mart had entered joining hands with Bharati Enterprises. 6. On line retailing is still to leave a mark on the customers. In a nutshell we may conclude that the retail industry in India has a very bright future prospect. It is expected to enrich the Indian Economy in terms of income and employment generation. 13
  14. 14. COMPANY PROFILE Company Name: Pantaloon Retail (India) Limited Corporate Headquarters: Knowledge House, Shyam Nagar, Jogeshwari (East), Mumbai 400 060. India Ph: +91 22 6644 2200 Listing: Pantaloon Retail is a listed company on the Bombay Stock Exchange (BSE, Scrip Code: 523574) and National Stock Exchange (NSE, Symbol: PANTALOONR). Employee Strength: 17,000 OUR BACKGROUND: Pantaloon Retail (India) Limited was incorporated as Manz Wear Private Limited by Kishor Biyani on 12 October 1987, converted into a public limited company in September 1991, renamed as Pantaloon Fashion (India) Limited a year later and thereafter Pantaloon Retail (India) Limited in July 1999. The company is headquartered in Mumbai and possesses plants in Tarapur and Mumbai to manufacture garments. The company’s shares are listed on the Mumbai and National Stock Exchange. The promoters, the Mumbai based Biyani family, hold a near 50 percent equity in the company. The company has approximately 14000 shareholders. PIONEERS: 14
  15. 15. Over the years, the company has accelerated growth through its ability to lead change, a number of its pioneering concepts have now emerged as industry standards. For instance, the company integrated backwards into garment manufacturing even as it expanded its retail presence at the front end well before this was attempted by other Indian retail company. The company was the first to introduce the concept of the retail department store for the entire family in 1997. The company was the first to launch a hypermarket in India with Big Bazaar, a large discount store that it commissioned in Kolkata in October 2001 and the company introduced the country to the Food Bazaar, a unique mandi within a Hypermarket, which was launched in July 2002 in Mumbai. GROWTH: Pantaloon Retail (India) Limited is a leading retailer with a turnover of Rs. 2,019 crore for the financial year 2005-06 Pantaloon declared its unaudited financial results for the quarter ended December 31, 2006 wherein the gross turnover (Rs.795.48 crore) for the quarter increased by 57 per cent; net sales/ income from operations (Rs. 752.68 crore) increased by 59.47 per cent. The company store Big Bazaar a division of Pantaloon Retail (I) Ltd. has reported a top line CAGR (Company Annualized Growth Rate) of 65 percent over the last decade. Over this period, the company has evolved from a small manufacturing concern into India s largest manufacturer-retailer, integrated along the entire value chain. The company has about 331 stores in over 40 cities across the country, constituting 5 million square feet of retail space. The company caters to the ‘Lifestyle’ segment through its 31 Pantaloons Stores and 4 Central Malls, as well as its other concepts. In ‘Value’ retailing it is present through 68 Big Bazaar hypermarkets, 89 Food Bazaars and 7Fashion Stations, and other delivery formats. BRANDS: The company s retail presence is market by visible and reputed brands like John Miller, Oye, Bare, Srishti, HNY, Annabelle, Scotsville, Ajile, Pantalength and Pantaloon (India s number one trouser).The Company delivers adequate customer choice by stocking no competing and complementary brands owned by other manufactures as well. 15
  16. 16. OUR PEOPLE: The biggest strength of the company does not lie in its tangibles but in its people. Over the years, Pantaloons has selectively recruited form some of the best fashion and business schools of the country to staff of its design, merchandising, category management, human resources and finance functions with capable professionals. INDIAS PREFERRED FAMILY STORE: Pantaloons introduced, India to a world class shopping experience through a 13,000 square feet store in Kolkata in 1997.Encouraged by its immediate acceptability, Pantaloons spread to 14 stores and 2.13 lac square feet across Kolkata, Mumbai, Pune, Chennai, Hyderabad, Nagpur, Ahmedabad and Kanpur over the next few year. (2004-above).Today, Pantaloons offers a range of Products - trousers, shirts, casual wear, children clothes, accessories, jewellery, stationary, home items, restaurant, watches, electronic item, chocolates, toys and cosmetics, among others. As a result, Pantaloons has emerged as a family store with something for everyone. BIG BAZAAR Hypermarket Brand Is se sasta aur aacha kahin nahin This is the Hypermarket Discount store initiative of the company, commissioned to address the discount and bargain hunting tendencies of the Indian Shopper. Big Bazaar chain houses everything that one may need in house under one roof, at the lowest prices. Is se sasta aur achha kahin nahi! A Division of Pantaloon Retail (India) Ltd They sell all items either branded or unbranded. This includes clothing, apparel, home textile and furnishing, white goods, home appliances, electronics, plastics, toys, kitchen needs, pharmacy, luggage, foods and provisions, sarees etc. it also offer the 16
  17. 17. services of an optician and matching center. The merchandise will be either part of Big Bazaar goods or will be part of the shop-in shop (SIS) Big Bazaar merchandise includes the following goods; ladies, dress materials western wear, ethnic wear, Men s garments like shirts, trousers, shorts, blazers, kids were suiting fabrics, home furnishing, plastic Goods, utensils. VISION MISSION AND VALUES VISION: We shall deliver Everything, Everywhere, Every time for Every Indian Consumer in the most profitable manner. MISSION: We share the vision and belief that our customers and stakeholders shall be served only by creating and executing future scenarios in the consumption space leading to economic development. We will be the trendsetters in evolving delivery formats, creating retail realty, making consumption affordable for all customer segments – for classes and for masses. We shall infuse Indian brands with confidence and renewed 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 force to make us successful. VALUES: Indian-ness The core value of the company is Indian-ness. I believe in myself. The company is developing. An Indian customer has unique culture and a value system. That’s why the company is targeting the family as the customer rather then the individual. It offers products of Indian taste, a combination of own and shop-in-shop categories and a mix of big retailer partnering with the smalltime shopkeeper. 17
  18. 18. Dedication: The company is dedicated to customer satisfaction. This is way it has a no questions asked exchange policy and offers products, which the customer needs. The company follows an inverse pyramid structure of organization where the board of directors is at the bottom and the customer service executive is on the top, interacting directly with the customer. Leadership: The Company aims to be a leader and not a follower. The company has taken the initiatives to achieve this leadership position by launching multiple retail formats that target all segments of society. Self-Development: The company is in the continuous process of self-development through sincere and hard work towards understanding customers, markets and products. The company had moved over time form apparel manufacturing to distribution to franchisee retailing to the departmental format retailing and to the hypermarket format of retailing. As a result, the company is always in a state of learning. Respect: The company respects the individual. For instance, employees are considered as internal customers, suppliers/vendors are treated as partners in progress. The company believes in long-term value-driven customer relationships rather than one-off deals. Introspections: Introspection is a key corporate value. The company has passed through a number of in fluctuation points in its short life span and emerged successful. The company’s ability to introspect has helped it to grow over time from the small to large and multiple formats of retailing the target all the sections of society. RETAILING PRINCEIPLES: 18
  19. 19. • To define the core customer and merchandise for the store, its price points, its assortments and presentation of sales for that target group. • To have consistency of quality in merchandise of the store i.e. same taste and price points for every merchandise. • To always have a unique and exclusive merchandise to differentiate itself from the competition • To give value for money to the customers • To build people to attract, retain and develop an outstanding team that can work together to achieve the goals for the company • To upgrade technology, by way of bar coding, computerized reordering system and to monitor inventories, analyses the customer database for effective marketing. • To a low cost operator in terms of cost • To build up successful partnership with franchisees • To build up stores through carefully thought out strategies and execution. Awards: 1. Images Retail Forum Announced most admired retailer of the year 2007: Large format, multi product store: Big Bazaar 2. National Retail Federation Awards International Retailer for the Year 2007 3. World Retail Congress Awards Emerging Market Retailer of the Year 2007 4. Reader’s Digest Trusted Brands Platinum Awards Trusted Brands Platinum Award (Supermarket Category) – Big Bazaar 5. Hewitt Best Employers 2007 Best Employers in India (Rank 14th) – Pantaloon Retail (India) Ltd 19
  20. 20. Competitors: For each line of business, one would face competition from established national and regional companies. In the fashion segment, Pantaloon probably faces competition from Shoppers Stop, Trent and Lifestyle. The hypermarket business is relatively new, being just about five years old in the country. Pantaloon faces 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, competition is from Subhiksha, Food World to name a few. Top Companies: An analysis Big Bazaar- Big Bazaar is a chain of department stores owned by the Pantaloon Group (Future Group)and headed by Kishore Biyani and headquartered at Mumbai. It offers all types of household items such as home furnishing, utensils, fashion products etc. It has a grocery department and vegetable section known as the Food Bazaar and its online shopping site is known as FutureBazaar.com. The real estate fund management company promoted by the Future Group expects to develop more than 50 projects across India covering a combined area of more than 16 million sq. ft. On April 1 2007, Big Bazaar had to shut its outlets in Mumbai as the 120 retrenched employees called a strike with the support of Bhartiya Kamgar Sena (the trade Union wing of Shiv Sena). Later the management agreed to reinstate the sacked workers. Bharti Retail, a wholly owned subsidiary of Bharti Enterprises. has announced two joint ventures (JV)with the international retailing behemoth, Wal-Mart. The first JV ensures cash and carry business, in which 100 percent FDI is permitted and it can sell only to retailers and distributors. The second JV concerns the franchise arrangement. Sunil Mittal, Chairman of the Bharti Group assured that the ventures will use “low 20
  21. 21. prices every day” and “best practices for the satisfaction of the customer”. Processed foods and vegetables will be delivered by Bharti Field Fresh, Bharti's JV with Rothschild. Bharti Retail aims to foray every city with a population exceeding 1 million. It has plans to come up with an investment of more than $2 billion in convenience stores, supermarkets and hypermarkets spread over an aggregate 10 million sq. ft. The expansion drive looks ambitious but analysts are worried that Bharti may face stiff competition from Pantaloon and Reliance as they too have sanguine plans to flood the markets with thousands of retail outlets in the coming five years. Bharti Telecom also has plans to offer all its fixed and mobile telecom products and services from a single window to the SMB (Small and Medium Business) enterprises under the Bharti Infotel division.. Reliance Retail- Reliance claimed last year to start a retail chain that will be unique in size and spread, will lead to the welfare of one and all ranging from Indian farmers, manufacturers and ultimately consumers. It is known as Reliance Retail Ltd.(RRL) and is a 100 percent subsidiary of Reliance industries Ltd.(RIL). Soon after the Bharti-Wal Mart tie up, there was the news that RIL (Reliance Industries Ltd.) Chairman Mukesh Ambani met Commerce Minister Kamal Nath to discuss the apprehension of cheap imports from China. Reliance Retail has plans to open 4,000 outlets across 1,500 towns for an investment of $5.6 billion. Reliance is not away from agro-business. According to Buddhadeb Bhattacharjee, Chief Minister of West Bengal, “Reliance will hold demonstration farming, produce good quality seeds and give inputs to farmers”. Its most significant participation has been in the food procurement business in Madhya Pradesh and Punjab. This has in fact compelled the government to import wheat this year. Reliance Retail has also been reported to have entered into an agreement with footwear manufacturer Bata India Ltd. so that they will involve in selling each other's products. DLF Shopping Malls- DLF Retail Developers Ltd. is one of the troikas of the DLF Group. Besides being India's largest real estate developer, DLF is also of the leaders in innovating shopping malls in India. It caught public eye when it launched the 2,50,000 sq ft. shopping mall in Gurgaon. It has brought a dramatic change in the 21
  22. 22. lifestyles and entertainment with its City Centres and DT Cinemas. DLF has plans to invest Rs. 2000-3000 crore in all the emerging areas from metros to A class cities in the next two years. Till last year the company was involved in building 18 malls out of which 10 were in the NCR region. Future plans of DLF involve opening up of 100 malls(speciality malls, big box retailing and integrated malls) across 60 cities in next 8-10 years. They are slowly transforming into 'lease' and 'revenue share' models. Local players like ITC, the A.V. Birla Group and Tatas have given the hints to enter organised retail. France’s Carrefour SA and Britain’s Tesco too were recently in news for their future plans to explore the Indian retail market. Retailing in India: (a forecast) Future of organized retail in India looks bright. According to recent researches it is projected to grow at a rate of about 37% in 2007 and at a rate of 42% in 2008. It will capture a share of 10% of the total retailing by the end of 2010. The organized retail sector is expected to grow to a value of Rs. 2, 00,000 crore (US$45 billion) and may generate 10 to15 million jobs in next 5 years. This can happen in two forms- 2.5 million of these people may be associated directly with retailing and the rest 10 million people may be gainfully employed in related sectors that will be pulled up through the strong forward and backward linkage effects. However to compete in this sector one needs to have up-to-date market information for planning and decision making. The second most important requirement is to manage costs widely in order to earn at least normal profits in face of stiff competition. 22
  23. 23. Major Milestones 1987 Company incorporated as Manz 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 the 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 Pantaloons – India’s family store launched in Kolkata. 2001 Big Bazaar, ‘Is se sasta aur accha kahi nahin’ - India’s first hypermarket chain launched. 2002 Food Bazaar, the supermarket chain is launched. 2004 Central – ‘Shop, Eat, Celebrate In The Heart Of Our City’ - India’s first seamless mall is launched in Bangalore. 2005 Fashion Station - the popular fashion chain is launched aLL – ‘a little larger’ - exclusive stores for plus-size individuals is launched 2006 Future Capital Holdings, the company’s financial arm launches real estate funds Kshitij and Horizon and private equity fund Indivision. Plans forays into insurance and consumer credit. Multiple retail formats including Collection i, Furniture Bazaar, Shoe Factory, EZone, Depot and futurebazaar.com are launched across the nation. Group enters into joint venture agreements with ETAM Group and Generali. 23
  24. 24. About Future Group: Future Group is positioned to cater to the entire Indian consumption space. It operates through six verticals: Future Retail (encompassing all lines of retail business), Future Capital (financial products and services), Future Brands (all brands owned or managed by group companies), Future Space (management of retail real estate), Future Logistics (management of supply chain and distribution) and Future Media (development and management of retail media spaces). The group's flagship enterprise, Pantaloon Retail, is India's leading retail company with presence in food, fashion and footwear, home solutions and consumer electronics, books and music, health, wellness and beauty, general merchandise, communication products, E-tailing and leisure and entertainment. Future Group's vision is- “Deliver Everything, Everywhere, Every time to Every Indian Consumer in the most profitable manner.” One of the core values at Future Group is- ‘Indian-ness' Its corporate credo is – Rewrite Rules, Retain Values. Future Group Future Group is India’s leading business group that caters to the entire Indian consumption space. Led by Mr. Kishore Biyani, the Future Group operates through six verticals: Retail, Capital, Brands, Space, Media and Logistics. 24
  25. 25. Apart from Pantaloon Retail, the group’s presence in the retail space is complemented by group companies, Indus League Clothing, which owns leading apparel brands like Indigo Nation, Scullers and Urban Yoga, and Galaxy Entertainment Limited that operates Bowling Co, Sports Bar, F123 and Brew Bar. Future Bazaar Futurebazaar.com is owned and operated by Future Bazaar India Ltd., a subsidiary of Pantaloon Retail (India) Limited. As part of India’s largest retail chain, we enjoy the benefits of buying in bulk for the entire group and keep our margins low, so you get a great range of products at great prices. We pass these benefits on to you, so our prices are the lowest we can make – every day. About our parent company Pantaloon Retail (India) Limited led by Kishore Biyani is the country's largest retailer. It owns and operates multiple retail formats including Pantaloons, Big Bazaar, Food Bazaar, Central, E-Zone, Fashion Station, Depot and many others. Headquartered in Mumbai, Pantaloon Retail is listed on BSE and NSE with a turnover of Rs 2,018 crores for financial year ended 2005-06. 25
  26. 26. RESEARCH METHODOLOGY Meaning of research Research in common parlance refers to a search for knowledge. One can also define research as a scientific and systematic search for pertinent information on a specific topic. In fact, research is an art of scientific investigation. The advanced learner’s dictionary of current English lays down the meaning of research as a careful investigation or inquiry specially through search for new facts in any branch of knowledge. Objective The purpose of research is to discover answers to questions through the application of scientific procedures. Though each research study has its own scientific purpose, we may think of research objectives as falling into a number of following groups: 1. To gain familiarity with a phenomenon or to achieve new insights 2. To portray accurately the characteristics of a particular individual, situation or a group 3. To determine the frequency with which something occurs or with which it is associated with something else. 4. To test a hypothesis of a casual relationship between variables 26
  27. 27. Research methodology Research methodology is a way to systematically solve a research problem. It may be understood as a science of studying how research is done scientifically. In it we study various steps that are generally adopted by a researcher in studying his research problem along with logic behind them. Research process Before embarking on the details of research methodology and techniques, it seems appropriate to present a brief overview of the research process. Research process consists of series of actions or steps necessary to effectively carry out research and the desired sequencing of these steps.  Formulating the research problem  Extensive literature survey  Development of working hypothesis  Preparing the research design  Determining the research design  Deliberate sampling  Simple random sampling  Systematic sampling  Stratified sampling  Collecting the data  By observation  Through personal interview  Through telephone interviews  By questionnaires  Execution of the project  Analysis of data  Hypothesis-testing  Generalization and interpretation  Preparation of the report 27
  28. 28. Types of research  Descriptive research  Analytical research  Applied research  Fundamental research  Quantitative research  Qualitative research  Conceptual research  Empirical research The above mentioned are the various types of research which a researcher can apply in order to achieve one s desired objective. Therefore to achieve the objectives of my research I have used descriptive research. This is based on proper research design to meet the objectives of the study. Sampling plan for the project Geographical/sample area: Allahabad Sampling unit: BIG BAZAAR, Allahabad Sample size: 100 questionnaires Data collection The data was collected by going in the store personally and getting the questionnaires filled form the customers when they are shopping. The main motive in doing this 28
  29. 29. study was to get the feedback from the customers to give them better service by knowing how they rate the store in all the parameters. a. Types of data i. Primary data: Data observed and recorded or collected directly from respondents. ii. Secondary data: Data complied both inside and outside the organization for same purpose. iii. Other than the current investigation. Internal Sources of Secondary Data Daily, weekly, and annual sales reports, which may be broken down by geographical area, by product line, or even by product, accounting information, such as expenses and profits, Competitive information gathered by the sales force. External Sources of Secondary Data: Trade associations, Industry publications and databases. Government databases (e.g. bureau of the Census) Sales, volume and brand market share measurement system (e.g. ACNilsen Company and information Resources, Inc.) Methods of collecting Primary Data Sampling Population consists of all the elements, Units or an individual of interest to researchers for specific study. Sample is a limited number of units chosen to represent the characteristics of a total population. Types of sampling Probability - each element has a know chance for study. 29
  30. 30. Random-each element has an equal chance for study. Stratified-study populations divided into like groups. Non-probability: elements likelihood of study is unknown. Quota: Population is grouped and elements are arbitrarily chosen. Basic Survey Methods • Mail survey • Telephone survey • Online survey • Personal interview survey  In home (door-to-door) interview  Focus- group interview  Telephone depth interview  Shopping mall intercepts interviews  On-site computer interviews DATA COLLECTION TOOL 30
  31. 31. The data collection tool that I have used is Questionnaire. I have selected questionnaire as a data collection tool primarily because of descriptive nature of sampling & secondly it was the most suitable tool that could help in achieving all the objectives of the study & to do the analysis deeply and effectively. ANALYSIS 1. How often do you shop at Big Bazaar? Shopping Frequency Weekly Fortnightly monthly quarterly half yearly No. of respondents 47 18 30 4 1 31
  32. 32. Shoping Frequency 4% 1% 47% 18% 30% Weekly fortnightly monthly quarterly half yearly Interpretation: The more number of customers visit Big Bazaar weekly and monthly. Only 18 percent of respondents visit fortnightly. 2. Are you a Big Bazaar member? Membership Yes No No. of respondents 30 70 32
  33. 33. Membership 30% 70% Yes No Interpretation: Only 30 percent of respondents are the members of Big Bazaar. Rest 70 percents are not the members of Big Bazaar. 3. How do you find the quality of the products? Product Quality Excellent Good Average Poor No. of respondents 22 74 3 1 33
  34. 34. Interpretation: Maximum number of respondents, (96%), responded that the quality of the product is satisfactory. Few were there who were expecting more than the current quality level. 4. How did you find the variety of products? Product Variety Excellent Good Average Poor No. of respondents 14 78 8 0 34 Product Quality 22% 74% 1%3% excellent Good Average Poor
  35. 35. Product Variety 78% 8% 0% 14% Excellent Good Average Poor Interpretation: Maximum number of respondents, 92%, responded that the variety of the product is good. Only 8% rated it average. 5. Did you come across any difficulty while purchasing or billing? Difficulty while Shopping Yes No Number Of respondents 4 96 35
  36. 36. Difficulty while Shopping 96% 4% Yes No Interpretation: Only 4% respondents responded negatively. They felt problem during billing, carrying trolley, etc. Others 96% faced no problem during their shopping. 6. Do you wish any products to be added in our store? New product desire Yes No Number of respondents 43 57 36
  37. 37. New Product desire 43% 57% Yes No Interpretation: Approximately 43% customers are expecting more product variation in the form of new product or variety improvement in current products. Remaining 57% responded that they are happy with the current products in Big Bazaar. 7. Was the store clean? Neatness of the store Yes No Number of Respondents 100 0 37
  38. 38. Neatness of the store 100% 0% Yes No Interpretation: All the respondents were satisfied with the neatness of the store. All said that the store was neat and clean. 8. Was the parking space provided to you appropriate? Availability of enough Parking Yes No Number of respondents 78 22 38
  39. 39. Availability of Parking 78% 22% Yes No Interpretation: Approximately 1/4th of the respondents responded that the parking space is not enough for their vehicles. Remaining said that parking is having enough space. 9. How was the overall appearance of the crew members? (Hair, dressing, body language, communication skill) Appearance of the crew members Excellent Average Good Poor Number of Respondents 20 10 70 0 39
  40. 40. Appearance of the crew members 70% 10% 20% 0% Excellent Good Average Poor Interpretation: Most of the customers told that the appearance of the crew members is good. Approximately 70% responded that appearance is good, 20% said its excellent, 10% said its average and no one said its poor. 10. Were the signages informative? Effectiveness of signages Yes No Number of responded 57 43 40
  41. 41. Usefulness of signage 43% 57% Yes No Interpretation: Signages for different departments and places are displayed inside the mall. 57% customers responded that signages are very informative but 43% said that the signages are not informative, sometimes they create confusion. Use of English language was the main reason to create confusion among the local (rural) customers. 11. How was the visibility and shelf space arrangement of the store? Shelf space arrangement Excellent Good Average Poor Number of Respondents 25 75 0 0 41
  42. 42. shelf and space arrangement 25% 75% 0%0% Excellent Good Average Poor Interpretation: 75% customers said that visibility and shelf space arrangement is good and 25% said that it is excellent. No one said that space arrangement either average or poor. 12. How did you come to know about the offers? Methods to know the offers Flyers Mouth Publicity News paper Tele-calling Number of respondents 33 23 39 5 42
  43. 43. Way to know offers 23% 39% 5% 33% Flyers Mouth Publicity News Paper Telecalling Interpretation: Customers become aware about the offers mostly by news paper. There are very few who come to know about Tele-calling. 39% know about the offers by news paper.33% by flyers and 23% by mouth publicity. Only 5% were there who come to know the offers by Tele-calling. 13. 70% of the customers were male shoppers out of 100 Gender Of the customers Male Female Number 70 30 43
  44. 44. Gender of the studied customers 30% 70% Male Female Interpretation: From the total observed customers (100) there were 70 males and only 30 female. Ratio of female customers in comparison with males was very less. Findings From the analysis of the data I collected during the study I present following Findings: • Customers think that the variety and the quality of products in the store should be improved. 44
  45. 45. • At Big Bazaar the customers faced parking problems. • The offers given to the customers are repeated every time. • Minimum percentage of the customers came to know about the offers through Tele-calling. • Most of the customers have come to know about the offers through News papers and Flyers. • Satisfaction level of existing customers is satisfactory, however for the future prospects more changes and efforts have to be taken. There is a huge potential of Big Bazaar as they do not have even a single competitor in Allahabad. Recommendations From the analysis of the data I collected during the study I present following Recommendations: • Customers think that the variety and the quality of products in the store should be improved. 45
  46. 46. • More distribution of flyers in Newspapers should be there with which the customers will be able to know the offers. • The offers given to the customers are repeated every time. There should be new offers every time. • Minimum percent of customers came to know about the offers through Tele- calling. Tele-calling should be done to the customers to inform them about the new offers. • Hoardings should be put up in the key areas of the city. • More promotions to be made to attract new customers. • In-store buzz should also be conducted at Big Bazaar. • The most important recommendation is the number of Big Bazaar members should be increased. More customers should be converted into Big Bazaar members. SWOT ANALYSIS STRENGTH • Limited competition • Good reputation of the company (Pantaloon Retail India ltd.) 46
  47. 47. • Quality of service • Highly cooperative and efficient staff & crew members • Exclusive Products • Use of modern technology like credit card billing & loyalty programs • Wide range of products to suit all customer segments • Maximum number of branches • Membership loyalty programs WEAKNESS • Target customer base very small • No presence in semi urban sector • Promotional campaigns are nearly absent. • Less advertising efforts • At many times products are out of stock • Offers are repeated commonly. • Less number of Big Bazaar members. OPPORTUNITIES • Can build a strong distribution network to tap the untouched market • Customer education will improve the customer base. 47
  48. 48. • Increasing awareness will result in increase in customer base. • None of the supermarkets have a branch in Allahabad. • No of competitor is increasing very fast, especially In Allahabad. • By making some good promotional efforts Big Bazaar can gain more number of customers who will be loyal. THREATS • Competition with big giants like Reliance Retail and Spencer s daily. • Challenges posed by other retailers in the market. • Customer may shift to other supermarket. • Lower customer base may hinder prompt service. QUESTIONNAIRE Dear Customer, In an effort to serve you better, we request you to fill in the following questionnaire. 48
  49. 49. 1. How often do you shop at Big Bazaar? (Weekly / fortnightly / monthly / quarterly/ half yearly) 2. Are you a Big Bazaar member? (Yes/No) 3. How do you find the quality of the products? (Excellent / good / average / poor) 4. How did you find the variety of products? (Excellent / good / average / poor) 5. Did you come across any difficulty while purchasing or billing? (Yes /No) Reason: _________________________________________ _________________________________________. 6. Do you wish any products to be added in our store? (Yes /No) Which: __________________________________________ 7. Was the store clean? (Yes /No) 8. Was the parking space provided to you appropriate? (Yes /No) 9. How was the overall appearance of the crew members? (Hair, dressing, body language, communication skill) (Excellent / good / average / poor) 10. Were the signages informative? (Yes/No) 49
  50. 50. 11. How was the visibility and shelf space arrangement of the store? (Excellent/ good / average / poor) 12. How did you come to know about the offers? (Flyers / mouth publicity / news paper / Tele-calling) Other: ___________________________________________. 13. Any other observations: _______________________________________________ _______________________________________________ ______________________________________________. 14. Any other suggestions: _______________________________________________ _______________________________________________ ______________________________________________. Personal information: Name: __________________________________________. Age: ________. Sex: (Male / Female) Address: __________________________________________ _________________________________________. Contact no. : ________________. Mobile: _____________. BIBLIOGRAPHY 1) E. Green, Paul & Tull, S. Donald & Albaum, Gerald (2000), Research for Marketing Decisions Fifth Indian, Prentice Hall of India 2) Philip Kotler, Marketing Management, Person education 11th Edition, pp. 72-75 50
  51. 51. 3) Philip Kotler, Marketing Management, Person education 11th Edition, pp. 61-65 Websites: www.retailyatra.com www.indiainfoline.com www.bcgindia.com/home.html www.acnielson.com www.Org-marg.com/index1024.htm www.icraindia.com www.pantaloon.com/html/bigbazaar_index.htm www.ficci.com/ficci/index.htm 51