CRM in Retail Marketing: Big Bazar

Gedela Rakesh Varma Prof.Jaladi Ravi

Research Scholar Professor
Department of Commerce and Management Studies Department of Commerce and Management Studies
Andhra University, Visakhapatnam-530003 Andhra University, Visakhapatnam-530003

Abstract: primary driver of customer satisfaction and retention in

A Customer relationship managment system is a financial service.
business tool that allows you to manage all  "CRM is the business strategy that aims to
prospective customers, associates and prospects understand, anticipate, manage and
information all in one place. The Sales data is a safe personalize the needs of an organization's
cloud based CRM method that can help every part of current and potential customers" PWC
your company get a overall view of your customer. Consulting.
Retailing occupies an important role in the world of  CRM is a business strategy, one that puts the
economic system. Retailing involves all the actions customer at the heart of the business.
incidental to sale to final consumers for their “That‟s nothing new” I hear you say, and you would
personal, family, and household use. It does this by be right. Good business people have always
organizing their existence on a relatively large size understood the relationship between happy customers
and supplying them to the consumers on a relatively that come back again and again and creating long term,
small scale. in this paper we will discuss about the sustainable profitability.
retail marketing strategies in Big Bazar.
Review of Literature:
Key words: Customer relationship management, Customer Relationship Management (CRM) has
Retail marketing, customer interaction. become one of the most dynamic technology topics of
the millennium. According to Chen and
Preface: A Customer relationship managment system Popovich(2003), CRM is not a concept that is really
is a business tool that allows you to manage all new but rather due to current development and
prospective customers, associates and prospects advances in information and enterprise software
information all in one place. The Sales data is a safe technology, it has assumed practical importance.The
cloud based CRM method that can help every part of root of CRM is relationship marketing, which has the
your company get a overall view of your customer. objective of improving the long-term profitability of
Retailing occupies an important role in the world of customers by moving away from product-centric
economic system. Retailing involves all the actions marketing.
incidental to sale to final consumers for their personal,
family, and household use. It does this by organizing Bose (2002) noted that CRM was invented because the
their existence on a relatively large size and supplying customers differ in their preferences and purchasing
them to the consumers on a relatively small scale. habits. If all customers were alike, there will be little
Customer relationship activities have the most impact need for CRM. As a result, understanding customer
on customer retention Every customer service drivers and customer profitability, firms can better
encounter has the potential to gain repeat business or tailor their offerings to maximize the overall value of
have the opposite effect The expectation of their customer portfolio (Chen and Popovich) . The
personalized, relevant offers and service is becoming a attention CRM is currently receiving across businesses

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is due to the fact that the marketing environment of individual databases and sales force automation tools
today is highly saturated and more competitive and sales and marketing functions so as to improve
(Chouet al, 2002). targeting effort.

According to Greenberg (2004), CRM generally is an Peppers and Rogers (1999) argued that other
enterprise-focused endeavor encompassing all organizations view CRM as a tool, which has been
departments in a business . He further explains that, in particularly designed for one-to-one customer
addition to customer service, CRM would also communications, which is the function of sales, call
include,manufacturing, product testing,assembling as centres or the marketing departments.
well as purchasing, and billing, and human resource,
marketing, sales and engineering. Accordingly Frow and Payne (2004) added that CRM
stresses two-way communication from the customer to
Chen and Popovich (2003) argued that CRM is a the supplier to build the customer over time. The two-
complicated application which mines customer data, way communication has been enhanced greatly by
which has been retrieved from all the touch points of advances in technology particularly the Internet.In
the customer, which then creates and enable the term of information technology (IT), CRM means an
organization to have complete view of the customers. enterprise –wide integration of technologies working
The result is that firms are able to uncover and together such as data warehouse, web site, and
determine the right type of customers and predicting intranet/extranet, phone support system, accounting,
trend of their future purchases. CRM is also defined as sales, marketing and production.
an all embracing approach that seamlessly integrates
sales, customer service, marketing, field support and Kotler (2000) assured that CRM uses IT to gather data,
other functions that touch customers (Chou et al, 2002) which can then be used to develop information
. They further stated that CRM is a notion regarding acquired to create a more personal interaction with the
how an organization can keep their most profitable customer.In the long-term, it produces a method of
customers and at the same time reduce cost, increase in continuous analysis and reinforcement in order to
values of interaction which then leads to high enhance customer‟s lifetime value with firms.
profits.The modern customer relationship management
concept was shaped and influenced by the theories of Goldenberg (2000) believes that CRM is not merely
total quality management (Gummesson) and by new technology applications for marketing, sales and
technological paradigms (Zineldin, 2000). There is services but rather when it is successfully implemented
however, a perceived lack of clarity in the definition of ; it enables firms to have cross-functional , customer-
customer relationship management, although all driven , technology-integrated business process
accepted definitions are sharing approximately the management strategy that maximses relationships.
same basic concepts: customer relationships,
customermanagement, marketing strategy, customer Chin et al (2003) stated that due to many technological
retention,personalization (Zineldin2000).However, solutions available for CRM automation, it is often
while academics debate the subtitles of various misconstrued as a piece of technology. But they
definitions, the practitioners have developed a wealth maintained that in recent times many companies have
of applicative papers analyzing the concrete challenges realized the strategic importance of CRM, and as a
and opportunities of implementing the systems result, it is becoming a business value -effort rather
(Bacuvier et al. 2001).CRM in some firms is than technology-centric effort.
considered as a technology solution, considering of

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Retailing which has drastically influenced the wholesalers expect retailers to be a part of established
strategies of retail management. This has changed the channel through which customer feedback can flow
perception, competitive strategies, distribution systems back to them. The authors present the fact that retailer
and promotional strategies that are adopted by the is the first contact point that the customer has with the
retailers. product and therefore this fact gives him tremendous
power. Nair Suja in her book ̳Retail Management„ has
DunneM.Patrick and LufschF.Robert gave a analyzed tried to explain the growth of retailing in Indian
view that Customer Services include the activities the context especially in the context of new economic
retailer performs that influence policy, global economic development, changes in the
1.The case with which a potential customer can shop marketing and economic system as well as changing
or learn about the store„s offerings pattern and classification of economic activity.
2.The case with which a transaction can be completed
once the customer attempts to make a purchase The author has tried to stress that there is a significant
3.The customer„s satisfaction with the product after the effect of liberalization and privatization policies on
purchase. development of retail format. According to author,
retailing has come to occupy a prominent position in
These three elements are the pre-transaction, today„s modern society. Inspite of the Indian retail
transaction, post-transaction components of customer revolution, it is said that over 90 percent of the 20
services Rugman and D„Cruz developed a stream of percent urban India are still towards the traditional
research that potentially links international business to retail. Now some worthy modern organized retail
globalization theories, pointing to the essentially, format is slowly gaining acceptance and can easily be
regional‟rather than,global level of activity in the early seen to be emerging as a strong contender. The author
21st century. This theoretical route again has has tried to make an attempt to communicate various
difficulties when applied to retailing because of the developments occurring in retail market especially on
different nature of the international organization of account of evolving consumer behaviour typically the
investment in retailing and the importance of the local evolution of retail. It can be studied by having a look
market, and adoptions to it, for retailers. The at 4 tier component i.e. consumer behaviour, trade
globalization studies start from an economic structure, retailer-distributer-manufacturer relationship
perspective, as in Spulber„s (2007) study of Dairy and the competition. The profile of today„s customer
Farm and so do not address the issues of social change can be easily described as an affluent one with a higher
that have become explicit in the recent activity of and most disposable income, frequent visits & makes a
international retailers.Dale Gillian and Banfield longer and investment and time to explore a detailed
Graham have introduced the concepts of distribution shopping experience. However the consumers have
and retailing in elaborate manner. Distribution refers to also revealed a illingness to pay a premium provided
the process of movement of goods.from the original they are offered better service quality at a retail
producer to the final consumer. The line of exchange is counter. In addition to these, modern consumers will
known as chain of distribution‖. In this final chain, also appreciate additional facilities such as ATM,
retail is the end point.Retailing includes all the parking and in -store attendance. The main features of
activities involved in selling goods and services to the the book includes emphasis on case study of 12 major
final consumers for personal, non personal use. retail format wherein the author has tried to find out
Retailers perform several functions such as bulk what are the new trends that are introduced by these
breaking,assorting, storing, advisory services among various retail players, how they influence the overall
others as a part of customer service. Manufacturers and market structure and the marketing environment in

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India, how they have changed the retailers approach retailing as a vibrant part of our changing society and
towards consumers and how consumers have major source of employment. They have noticed that
responded to these new changes in the growing context retailing is closely tied to the changing moods of the
of economic development. consumers and new ways of business, spread on by the
impressive development in Technology and
David Gilbert is one of the noted authorities who in his Management Theory. The book provides a
book titled ―Retail Marketing Management‖ have comprehensive grounding in many facets of retailing,
identified the reasons of growth of Modern Retailing. including Logistics and Distribution, erchandising,
In this book he has tried to find out why the growth of Store Layout and design, pricing and location strategy.
retailing is actually taking place. According to him
more than any other business we are witnessing the The authors have included new areas of importance
emergence of new forms of retailing and becoming which includes retail services and out of store retailing.
more segmented with reforms focusing on the needs of The authors have tried to understand what are the ways
particular consumer segment. The result of this is the and means because of which retailing is growing in a
development of more consumer friendly global scenario? How it has influenced non-formal
environment.Whereas, once it was manufacturers ways of trading? And what are the implications of new
brand that were all important. The year 2000 has format of retailing on consumer behavior? In this book
witnessed the power of retailers brand challenging the the authors have also tried to find out the different
position of suppliers. The traditional forms of market structures that are required for retail operations
independently owned small business and co-operative and managing in the times of booms and slumps. This
have lost significant market share in developed helps the readers to understand different facets,
economy and the retail sector is now characterized by challenges and changes that are happening in the retail
large scale,multiple store, run by powerful and environment.
sophisticated organizations. The increasing size of
retailers and intensifying rates of competition in the Hamilton Ryan in their research paper majorly focused
markets in which they are operating has made retailers on the important decision that retailers always involves
to search for new ways to grow their business. The in selecting the number of items constituting their
author has tried to emphasize on two facts: First, assortments. A key issue in making these decisions is
retailing has become a major avenue of growth and the the role of assortment size in determining consumers„
increase in the retail operations has changed the choice of a retailer. The authors address this issue by
market dimensions. investigating how consumer choice among retailers
offering various-sized assortments is influenced by the
Second thing, there is an impact of E-retailing which attractiveness of the options constituting these
attracts considerable attention.However, though assortments. The data show that consumer preference
initially it may not be successful but in the due course for retailers offering larger assortments tends to
of time successful models for retail sectors based on E- decrease as the attractiveness of the options in their
business and Electronic Media will definitely influence assortments increases and can even lead to a reversal
the multichannel retailing system. of preferences in favour of retailers offering smaller
assortments. This research further presents evidence
Newmen Andrew and CullenPeter in their that the relationship between assortment size and
book ̳Retailing: Environment and Operations„ have option attractiveness is concave, such that the marginal
rightly concentrated on understanding various aspects impact of assortment size on choice decreases as the
of Retailing as a Business. They have considered attractiveness of the options increases. Data from eight

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empirical studies offer converging evidence in support actual new product selection by retail buyers at two
of the theoretical predictions. large grocery retailers in the United States. The
findings indicate that buyer–salesperson and firm–firm
Bradford Kevin., Stringfellow Anneand Weitz Barton relationships have a greater influence on new product
A had written that the retailers are becoming involved acceptance when a new product„s attractiveness is
with networks consisting of multiple firms in order to modest than when the new product is very unattractive
more effectively perform business activities such as or very attractive. At modest levels of product
supply chain management. This research develops and attractiveness, the likelihood of new product
tests a framework outlining the effects of conflict in acceptance can increase by as much as 60 percent
networks and how conflict management can mitigate when the buyer has a strong relationship with the
and exacerbate these effects. A study of simulated salesperson. The paper provides insights into the
networks finds that inter-personal and task conflict complex interplay of marketing relationships and
have a negative effect on network member satisfaction product attractiveness in retail buyers„ selection of new
and desire to be a member of the network. The use of a products. Raff Horst and Schmitt Nicolas investigated
collaborative conflict management style has a positive the implications for international markets of the
effect on satisfaction and desire for continuity, but the existence of retailers/wholesalers with market power.
effects of accommodative and confrontational styles
depend on the level of inter-personal and task conflict Two main results were shown. First, in the presence of
present in the network. buyer power, trade liberalization may lead to retail
market concentration. Due to this concentration, retail
Kaltcheva Velitchka developed the conceptual prices may be higher and welfare may be lower in free
framework which proposes that the consumer„s trade than in autarky, thus reversing the standard
motivational orientation moderates the effect of the effects of trade liberalization. Second, the pro-
arousal produced by a store environment on the competitive effects of trade liberalization are weaker
pleasantness of the environment. When consumers under buyer power than under seller power. Buchanan,
have a recreational motivational orientation, high Simmons and Barbara highlighted that consistency
arousal has a positive effect on pleasantness, but when among the various elements of a marketing program
consumers have a task-oriented motivational believed essential in building and maintaining brand
orientation, high arousal decreases pleasantness. In image and equity. And yet, a brand„s ultimate
addition, high arousal increases consumer intentions to presentation to customers is controlled more often by
visit and make purchases in the store for recreationally the retailer than by the manufacturer. The retailer„s
oriented consumers, but it has a negative impact on display decision can negate the equity of an
shopping behavior for task-oriented consumers. established brand. The author suggests that this occurs
Pleasantness mediates the effect of arousal on because consumers have expectations about retail
shopping behavior.Kaufman Peter, Jayachandran displays and the relationship among displayed brands.
Satish and Rose Randall , have written that retailers
face considerable risk in introducing new products Display conditions that disconfirm these expectations
because of high failure rates. Given the proliferation of can lead consumers to re-evaluate the brand.Ganeshan
new products juxtaposed against finite shelf space, focused on the impact of four staffing policies
retail buyers are confronted with a choice problem. To (promotion from within, promotion through seniority,
enhance understanding of this issue, the authors well -defined career paths, and opportunity for intra-
examine the role of buyer–salesperson and firm–firm organizational mobility) on the job attitudes and
relationships using data collected in the context of behaviors of retail employees.

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Staffing policies significantly affect the buyers„ Retail organizations exhibit great variety and new
intrinsic motivation and commitment to their firms. forms keep emerging. There are store retailers, non
Commitment and intrinsic motivation, in turn, have a store retailers, and retail organizations.
strong effect on a buyer„ creativity, risk-taking
behavior and intention to leave organization. Consumers today can shop for goods and services in a
wide variety of stores. The best-known type of retailer
Need for the Study:The customer relationship is the department store. Japanese department stores
managment is important factor for every organization. such as Takashimaya and Mitsukoshi attract millions
in this paper we will discuss about crm in retail of shoppers each year. These stores feature art
marketing sector taking case study on BIG BAZAR. galleries, cooking classes, and children‟s playgrounds.

Objective: The main objective of this paper is to study The success of the retail stores, therefore, depends on
the CRM IN RETAIL MARKETING in BIG BAZAR. customers‟ reaction to the retailing mix which
Methodology: This paper mainly based on secondary influences the profits of the store, its volume of
data The articles which are published in the area of turnover, its share of the market, its image and status
CRM IN RETAIL and information from bigbazar and finally its survival.
website.
Trends In Retail Marketing
Indian Consumers:
And even as these developments were taking place, the At this point, I can summarize the main development
Indian consumer became more mature. Customer- retailers and manufacturers need to take into account
expectations zoomed. Thus, at the beginning of the as they plan their competitive strategies.
New Millennium, retailers have to deal with a
customer who is extremely demanding. Not just in In India the trends are mainly in three sectors. These
terms of the product-quality, but also in terms of sectors are:
service, and the entire shopping experience.
Trends in retail marketing
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 New retail forms and combinations continually
quality and brand building. And retailers, in turn, have emerge. Bank branches and ATM counters have
to focus on the quality of the shopping experience. opened in supermarkets. Gas stations include food
stores that make more profit than the gas operation.
In this millennium, like in the last, customers will want Bookstores feature coffee shops.
to spend time with their family and friends. They may
like to visit an outlet on weekends where everything
The electronic age has significantly increased the
will be available under one roof. India will benefit growth of non store retailing consumers receive sales
from these developments because of increased offers in the mail and over television, computers, and
consumption through retailing and the corresponding telephones, to which they can immediately respond by
increase in employment created by retailing. calling a toll-free number or via computer.

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Competition today is increasingly intertype, or  Company to consumers (online/ phone/
between different types of store outlets. Discount catalog ordering)
stores, catalog showrooms, and department stores all These three are among the most common ways of
compete for the same consumers. The competition making the goods available to consumers. But in India
between chain superstores and Smaller independently the three layered system of distributor, wholesaler and
owned stores have become particularly heated. retailer, forms the backbone of the front-end logistics
Because of their bulk buying power, chains get more of most of the consumer-good companies.
favorable terms than independents, and the chains‟
large square footage allows them to put in cafes and There are a number of reasons behind this fragmented
bathrooms. retail market. Some of the major reasons being:
 Poverty and lower literacy levels.
Today‟s retailers are moving toward one of two poles,  Low per capita income.
operating either as mass merchandisers or as specialty  Savings focused and less indulgence mindset.
retailers. Superpower retailers are emerging. Through  Poor infrastructure facilities like roads etc.
their superior information systems and buying power,  Restrictions on intra-state good movement.
these giant retailers are able to offer strong price  High taxes.
savings. These retailers are using sophisticated
 No exposure to media.
marketing information and logistical systems to deliver
 High import duties on imported goods.
good service and immense volumes of product at
 FDI in retailing is not allowed.
appealing prices to masses of consumers.

CRM In Retail Marketing( Big Bazaar):

Many retailers are even telling the most powerful
Customer relationship activities have the most impact
manufacturers what to make; how to price and
on customer retention Every customer service
promote; when and how to ship; and even how to
encounter has the potential to gain repeat business or
reorganize and improve production and management.
have the opposite effect The expectation of
Manufacturers have little choice: They stand to lose 10
personalized, relevant offers and service is becoming a
to 30 percent of the market if they refuse.
primary driver of customer satisfaction and retention in
financial service.
Technology is becoming critical as a competitive tool.
 "CRM is the business strategy that aims to
Retailers are using computers to produce better
understand, anticipate, manage and
forecasts, control inventory costs, order electronically
personalize the needs of an organization's
from suppliers, send e-mail between stores, and even
current and potential customers" PWC
sell to Customers within stores. They are adopting
Consulting .
checkout scanning systems, electronic funds transfer,
and improved merchandise-handling systems  CRM is a business strategy, one that puts the
customer at the heart of the business.
Retail Marketing In India  “That‟s nothing new” I hear you say, and you
There are various ways of making goods available to would be right. Good business people have
consumers like: always understood the relationship between
 Company to distributor to wholesaler to happy customers that come back again and
retailer to consumer again and creating long term, sustainable
profitability. Big Bazaar has realized this and
 Company to salesperson to consumer
applied this to effect.

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One just needs to think of the local shop owner who The Right Technology
knew everyone of his customer‟s names, birthdays and It is estimated that the global market for CRM services
particular ailments to prove that point. What is new is and solutions is currently worth $148 billion. That
that there now exists the technology to enable this means a lot of choice when selecting your technology -
customer-centricity on a much larger scale. from web-based solutions aimed at small businesses
with less than 10 employees to solutions suitable for
(“Come To Big Bazaar- Isse Sasta Aur Achha Kahin multi-national enterprises with millions of customers.
Nahin”) It is said that a successful CRM
implementation will allow your Customer Service, The Future
Sales and Marketing people (and anyone else in your CRM has already made a big impact in the world of
organization) to have a holistic view of each and Customer Service and will continue to do so. As more
everyone of your customers. In theory this will enable and more companies become customer-centric those
them to make quick, informed decisions, create cross that fail to do so will lose competitive advantage. As
selling and up selling opportunities, measure technology increases to develop at a startling rate the
marketing effectiveness and deliver personalized key emphasis will be how we can fully utilize it within
Customer Care. Sound‟s great doesn‟t it our business.

However let's not lose sight of the fact that Customer

The History of CRM Relationship Management is about people first and
Following on from Enterprise Resource Planning or technology second. That‟s where the real value of
ERP (the business strategy that promised to automate CRM lies, harnessing the potential of people to create
the “back-office”), the term CRM was first coined in a greater customer experience, using the technology of
the mid-1990s. CRM in those days referred to the CRM as the enabler.
software used to help businesses manage their
customer relationships. From sales force automation Using CRM, at the management of Big Bazaar can:
software (SFA) that focused on customer contact
 Provide better customer service
management to integrated knowledge management
 Increase customer revenues
solutions, these were the early foundations of CRM.
 Discover new customers
 Cross sell/Up Sell products more effectively
The last couple of years have seen the term broaden to
encompass a more strategic approach and the  Help sales staff close deals faster
investment of billions of dollars worldwide into CRM  Make call centers more efficient
solutions and services has followed
Simplify marketing and sales processes
First Things First By applying this methodology Big Bazaar learned
Successful CRM always starts with a business more about customers' needs and behaviors in order to
strategy, which drives change in the organization and develop stronger relationships with them. They
work processes, enabled by technology. The reverse implemented CRM as a process that brought together
rarely works. The key here is to create a truly lots of pieces of information about customers, sales,
Customer-Centric philosophy that touches every point marketing effectiveness, responsiveness and market
and more importantly every person in the company. trends.
From CSR to CEO everyone must live and breathe
customer focus for all of this to work CRM helps businesses use technology and human
resources to gain insight into the behavior of
customers and the value of those customers.

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Challenges For Big Bazaar in CRM Whatever they Promise More, they Deliver
implementation: Never make any promises you can't (or won't) keep.
 Difficulty in acquiring new customers can be a Nothing alienates customers faster than getting
result of any one, or combination, of the something less than they expect from a business
following problems. transaction. They won't do business with you again.
 Inaccurate and Slow Quoting Organizations And they will tell everybody they know about their
may be unable to accurately estimate and unhappy experience - causing you to lose future
quickly deliver successful proposals, often customers.
leading to missed opportunities, bad profit
margins and upset prospects. Always Give Customers More Than They Expect
 Lack of Product Knowledge Within their Sales "Over deliver" on quality and service. Always exceed
Force your customers' expectations. You will win their long
 Problems can arise when products were sold term loyalty. It also makes it difficult for competitors
that didn‟t fit company's profitability strategy to steal customers from you - even if they have lower
such as selling a customer one product when prices. Customers will not risk an uncertain experience
another would be better for the customer and with a competitor when they know they will get more
more profitable for you. than they expect from you.
 Difficulty and Delay in Updating Pricing and
Product Information Customers know how much they value them:
 When the sales force is relies on incomplete Let your customers know you are always thinking
product, pricing and customer information, about them. Communicate with them regularly. For
then they're probably not selling the most example, create some special deals just for your
profitable products you offer. existing customers. And announce new products or
 Customers prefer a combination of differing services to them before you announce them to the
channels in which to deal with your company. general market.
Self-service on the web can even be done for
complex products. Plus, self-service on the PROCESS OF CRM
web offers retail banks the opportunity to shift Customer Relationship Management (CRM) is the
process of bringing the customer and the company
cost out to the customer.
closer together. There are many different areas in
which Customer Relationship Management can be
Customer Satisfaction their Top Priority
Don't just make sales. Create customers - satisfied implemented. The goal of CRM is to help a company
customers. In addition to the immediate profit they maintain current customers, as well as gain new
provide on the first sale, satisfied customers help you customers.
build your business in 2 other important ways:
1. They become a reservoir of repeat buyers. For some Targeted Marketing: Targeted marketing is
businesses that means repeat buyers for more of the accomplished through collecting information about the
same product or service. For every business, it means customer. This information can be buying habits or
simply demographics. The idea behind this is that a
buyers for additional products and services.
business analyzes what a customer buys and then
2. They automatically refer more business to you from
their friends and business contacts. This is highly markets specific products to that customer based on his
profitable business for you because it doesn't cost you or her buying habits. Businesses track buying habits
any time or money to get it. using discount cards, and special store credit cards.

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Targeted marketing can also be implemented on the choose better known brands. In a test case, Simonson
Internet. Amazon.com has product recommendations showed that consumers debating between a better
based on buying habits, and product ratings. known, more expensive brand and a lesser-known, less
Customers can also be sent e-mails that market expensive brand expect to feel greater regret if they err
targeted products. Marketing the right products to the by choosing the cheaper option. Indeed, after thinking
right customers can significantly increase a business' about the possibility of regret, consumers were more
sales with minimal associated costs. likely to select the better-known brand. Kodak film has
capitalized on this finding with an advertising
CONSUMER BEHAVIOR campaign that asks consumers to consider how they
Options: would feel if they bought cheap film and their pictures
Consumers are more likely to choose an alternative didn't turn out.
after a relatively inferior option is added as a choice.
For example, Simonson says, participants in one study Preferences:
were given a choice between $6 and an elegant Cross Consumers tend to select variety when buying multiple
pen. A second group chose among $6, the same Cross products for consumption at a later time. In each of
pen, and a second pen that was clearly less attractive three weeks, Simonson asked a group of respondents
than the Cross pen. As was predicted, the addition of to select one of six familiar snacks for immediate
the unattractive pen increased the share of the Cross consumption. A second group was asked to pick three
pen at the expense of the $6. snacks -- one for immediate consumption and one for
each of the next two weeks. Both groups were told that
Alternatives: they could pick the same snack as many times as they
Consumers prefer alternatives that are compromise wished. Those in the first group tended to select the
choices. Given a choice between two alternatives, one same snack all three times, whereas most in the second
priced lower than the other, the addition of a third group selected three different snacks.
choice, priced higher than both, will increase the
market share of the more expensive of the original Product Modifications:
two. This finding suggests that companies can increase Modifying a product with a feature or premium that is
their overall sales and shift purchases to higher-margin of little or no value to the consumer, even without
items by carefully designing the sets of alternatives raising the price, may actually decrease sales. When
that their customers consider. consumers are uncertain about their preferences, a
product that offers an unneeded add-on (such as an
Floor Displays: offer to purchase a Pillsbury Doughboy collector's
Buyers are averse to choosing the lowest-quality plate) provides them with a reason for rejecting it.
alternative in sets of three or more choices. One of the
implications of this finding is that marketers of well- While marketing professionals can use these findings
known, high-priced brands should encourage retailers to influence consumer decision making, consumers,
to organize floor displays by model type, whereas too, can benefit by understanding their own behavior.
marketers of lesser-known, lower-priced brands should "One of the points of our research is to inform
prefer organization by brand. consumers about some of the factors that influence
their decisions," Simonson says. "With such
Brands: knowledge, they may be able to make better, more
Consumers who think about the possibility that their thoughtful decisions."
purchase decisions will be wrong are more likely to

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SWOT Analysis of Big Bazaar indicate that large retailers will capture most
Strength of the higher consumer spending
 Prime location  Increasing penetration of the internet into
 Large floor space allowing for better visual Indian homes has provided Food Bazaar Mall
merchandising to break the geographical barriers and to
 Large area also allows to stock a large variety increase their customer base. The entry into
of products under one roof online retailing, would, in fact, expand the
 Experienced and competent management product categories available to the consumer
 Highly trained and motivated sales force
 Brand equity Threats:
 Large scale operations in various cities  The time when retailers had to worry about
throughout the country allows them to reap competition only from their peers down the
the benefits of “economies of scale” street has come to an end. Food Bazaar is now
facing increased competition in the form of
Weakness international retail chains that are making a
 Large scale of operations sometimes acts as a beeline towards the highly potential Indian
barrier to personalized customer relations markets. Moreover many big Indian business
 Large scale operations lead to reduced houses are also vying a space in the Indian
retail scene .
flexibility by increasing the amount of
overheads and a huge commitment in terms of
fixed costs Conclusion:
CUSTOMER RELATIONSHIP MANAGMENT is
 A large organization structure leads to delayed
one of the important factor in the present competitive
decisions. This can prove fatal for a business
world every company has to maintain their customer
in the dynamic fashion industry. Mumbai, this
database for customer retention so BIG BAZAR
fact sometimes results in delayed decisions in
focuses on aims to understand, anticipate, manage and
adapting to changing market trends
personalize the needs of an organization's current and
potential customers. by providing options, alternatives,
Opportunities
floor display, brands. Preferences, Product
 Apart from the metros, cities like Ahmadabad,
modification.
Pune, Lucknow, Indore and Coimbatore have
shown substantial retail presence. Most sport
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