To Study Customer Relationship Management in Big Bazaar
To Study Customer Relationship Management in Big Bazaar
To Study Customer Relationship Management in Big Bazaar
bazaar”
A Project Submitted to
University of Mumbai for partial completion of the degree of
Bachelor of Management Studies
Under the Faculty of Commerce
By
Mr. Adarsh Gupta
This is to certify that Ms. Adarsh Gupta has worked and duly
completed her Project Work for the degree of Bachelor of Accounting
and Finance Studies under the Faculty of Commerce in the subject of
Accounting her project is entitled, To study customer
relationship management in big bazaar under my supervision.
I further certify that the entire work has been done by the learner
under my guidance and that no part of it has been submitted
previously for any Degree or Diploma of any University.
It is her own work and facts reported by her personal findings and
investigations.
Date of Submission :
Adarsh Gupta
Name and Signature of the learner
Certified by
Name and Signature of The Guiding Teacher
Students name
- RESEARCHER
Sr. No Topic
Ch 1. Introduction
1.1 Overview of Industry as a whole
1.2 Profile of the Organization
1.3 Problems of the Organization
1.4 Competition Information
1.5 S.W.O.T. Analysis of the Organization
Ch 2.
Object & Methodology
2.1 Significance
2.2 Managerial usefulness of the study
2.3 Objective
2.4 Scope of the Study
2.5 Methodology
Ch 3 . Conceptual Discussions
Ch 4. Data Analysis
Annexure
Bibliography
The Indian retail industry is now beginning to evolve in the line with the transformation that
has swept other large economies. The liberalization of the consumer goods industry initiated
in the mid-80 and accelerated through the 90’s has begun to impact the structure and conduct
of the retail industry.
The concept retail which includes the shopkeeper to customer interaction, has taken many
forms and dimensions, from the traditional retail outlet and street local market shops to
upscale multi brand outlets, especially stores or departmental stores.
The objective being to assess the various parameters that influences a buyer to visit or shop at
departmental store thereby contributing to its turnover (in terms of sales and profits) hence
leading to its overall success.
The extensive research brought me to conclude that departmental stores are soon emerging on
the top priority lists, amongst the shopping spree in Delhi and NCR, as they seem to derive
immense pleasure of convenience and exposure to variety under one roof, in their extremely
busy lives, when they don’t have time for things.
Though some of the customers perceive departmental stores to be expensive and only high
income category’s cup of tea, the stores make constant efforts to induce them to at least visit
the store at once during the sale period, or discount offers.
“Any business that directs its marketing efforts towards satisfying the final consumer
based upon the organization of selling goods and services as a means of distribution”
By 2010, the list of India's top 10 retailers will have at least 5 Indian corporate. Retail
Marketing will go through a tremendous change in India this millennium. It will change
India's cities, its people, and its households. The Indian consumer is reportedly the largest
spender in Singapore and London. It is, therefore, strange that there have, so far, been few
efforts to present the product in the right kind of environment in India.
Indeed, the right shopping experience does induce Indian consumers to spend more. This is
evident from the experiences of retail-outlets like Music.
World, Big Bazaar, Spencer’s, Crosswords, The Home Store, Ebony, Bigjo’s, Saboos,
Standard, Nanz, Vijay Store and Janaki Das & Sons, Westside etc.
The development of organized retail is dependent on the efforts of several agencies and
institutions. A glimpse of the last 2 decades of the previous century proves illuminating.
Large-format retailing started with outlets like Vivek's and Nalli's in Chennai and Kidskemp
in Bangalore, and, at another level, with manufacturer-retail brands like Bata, Bombay
Dyeing, and Titan.
Government:
The first among these is the government. In a country as big as India and with as many states
as ours, it is imperative that the Central government and all state governments bring in Value
The laws governing retail real estate should also be looked into, so that it is possible to
develop retail-estate beyond the city-limits. Apart from providing entertainment and retail
opportunities, this will also decongest the city center and facilitate the development of
suburbs. The relevant rules should also be amended to allow retail-stores to operate 7 days a
week, 12 hours a day.
Nuclear Families:
Given the hours most urban consumers keep at work, and keeping in mind the increase in the
number of nuclear families, this may, indeed, make sense. This will also help people enjoy
their evenings, out at malls.
Developers:
The second group, whose participation is essential in making retail a boom-sector in this
millennium, comprises developers. Most properties are developed without considering the
end user; thus, we sometimes find high-Ceilinged offices and low-ceilinged retail stores.
Often, the shopper's convenience is not taken into consideration while the property is
constructed.
Manufacturers:
There's a lot at stake here: even so early in the 21st Century, India is too large a market to be
ignored by transnational retail giants. From the manufacturing company's perspective, the
focus should be on producing good products, and forging relationships with organised retail.
Manufacturers need to draw a plan of producing quality products and tie in with retailers.
Indeed, the birth of organised retail will also engender the creation of private labels and
store-brands. Thus, if a manufacturing company lacks the resources to build a brand, it can
supply to a retail-chain that has the resources to create a brand of its own.
And even as these developments were taking place, the Indian consumer became more
mature. Customer-expectations zoomed. Thus, at the beginning of the New Millennium,
retailers have to deal with a customer who is extremely demanding. Not just in terms of the
product-quality, but also in terms of service, and the entire shopping experience.
Today, the typical customer who shops in a retail outlet compares the time spent at the check-
out counter with that at an efficient petrol station, and the smile of the counter-person to that
decorating the face of a Jet Airways' crew member. To cope with the new customer,
manufacturers have to focus on product quality and brand building. And retailers, in turn,
have to focus on the quality of the shopping experience.
In this millennium, like in the last, customers will want to spend time with their family and
friends. They may like to visit an outlet on weekends where everything will be available
under one roof. India will benefit from these developments
Retail organizations exhibit great variety and new forms keep emerging. There are store
retailers, non store retailers, and retail organizations.
Consumers today can shop for goods and services in a wide variety of stores. The best-known
type of retailer is the department store. Japanese department stores such as Takashimaya and
Mitsukoshi attract millions of shoppers each year. These stores feature art galleries, cooking
classes, and children’s playgrounds.
The success of the retail stores, therefore, depends on customers’ reaction to the retailing mix
which influences the profits of the store, its volume of turnover, its share of the market, its
image and status and finally its survival.
At this point, I can summarize the main development retailers and manufacturers need to take
into account as they plan their competitive strategies.
In India the trends are mainly in three sectors. These sectors are:
New retail forms and combinations continually emerge. Bank branches and ATM counters
have opened in supermarkets. Gas stations include food stores that make more profit than the
gas operation. Bookstores feature coffee shops.
The electronic age has significantly increased the growth of non store retailing consumers
receive sales offers in the mail and over television, computers, and telephones, to which they
can immediately respond by calling a toll-free number or via computer.
Smaller independently owned stores have become particularly heated. Because of their bulk
buying power, chains get more favorable terms than independents, and the chains’ large
square footage allows them to put in cafes and bathrooms.
Many retailers are even telling the most powerful manufacturers what to make; how to price
and promote; when and how to ship; and even how to reorganize and improve production and
management. Manufacturers have little choice: They stand to lose 10 to 30 percent of the
market if they refuse.
These three are among the most common ways of making the goods available to consumers.
But in India the three layered system of distributor, wholesaler and retailer, forms the
backbone of the front-end logistics of most of the consumer-good companies.
"CRM is the business strategy that aims to understand, anticipate, manage and
personalize the needs of an organization's current and potential customers" -- PWC
Consulting .
“That’s nothing new” I hear you say, and you would be right. Good business people
have always understood the relationship between happy customers that come back
again and again and creating long term, sustainable profitability. Big Bazaar has
realized this and applied this to effect.
One just needs to think of the local shop owner who knew everyone of his customer’s names,
birthdays and particular ailments to prove that point. What is new is that there now exists the
technology to enable this customer-centricity on a much larger scale.
It is said that a successful CRM implementation will allow your Customer Service, Sales and
Marketing people (and anyone else in your organization) to have a holistic view of each and
everyone of your customers. In theory this will enable them to make quick, informed
decisions, create cross selling and up selling opportunities, measure marketing effectiveness
and deliver personalized Customer Care. Sound’s great doesn’t it !!!
Following on from Enterprise Resource Planning or ERP (the business strategy that promised
to automate the “back-office”), the term CRM was first coined in the mid-1990s. CRM in
those days referred to the software used to help businesses manage their customer
relationships. From sales force automation software (SFA) that focused on customer contact
management to integrated knowledge management solutions, these were the early
foundations of CRM.
Successful CRM always starts with a business strategy, which drives change in the
organization and work processes, enabled by technology. The reverse rarely works. The key
here is to create a truly Customer-Centric philosophy that touches every point and more
importantly every person in the company. From CSR to CEO everyone must live and breathe
customer focus for all of this to work.
It is estimated that the global market for CRM services and solutions is currently worth $148
billion. That means a lot of choice when selecting your technology - from web-based
solutions aimed at small businesses with less than 10 employees to solutions suitable for
multi-national enterprises with millions of customers.
The Future
CRM has already made a big impact in the world of Customer Service and will continue to
do so. As more and more companies become customer-centric those that fail to do so will
lose competitive advantage. As technology increases to develop at a startling rate the key
emphasis will be how we can fully utilize it within our business.
However let's not lose sight of the fact that Customer Relationship Management is about
people first and technology second. That’s where the real value of CRM lies, harnessing the
potential of people to create a greater customer experience, using the technology of CRM as
the enabler.
By applying this methodology Big Bazaar learned more about customers' needs and
behaviors in order to develop stronger relationships with them. They implemented CRM as a
process that brought together lots of pieces of information about customers, sales, marketing
effectiveness, responsiveness and market trends.
CRMhelps businesses use technology and human resources to gain insight into the behavior
of customers and the value of those customers.
“The degree of customer satisfaction you deliver determines the level of long-term success
you will achieve in business.” - --- Training Mantra for Sales Force
Don't just make sales. Create customers - satisfied customers. In addition to the immediate
profit they provide on the first sale, satisfied customers help you build your business in 2
other important ways:
1. They become a reservoir of repeat buyers. For some businesses that means repeat buyers
for more of the same product or service. For every business, it means buyers for additional
products and services.
2. They automatically refer more business to you from their friends and business contacts.
This is highly profitable business for you because it doesn't cost you any time or money to get
it.
"Over deliver" on quality and service. Always exceed your customers' expectations. You will
win their long term loyalty. It also makes it difficult for competitors to steal customers from
you - even if they have lower prices. Customers will not risk an uncertain experience with a
competitor when they know they will get more than they expect from you.
announce new products or services to them before you announce them to the general market.
PROCESS OF CRM
Alternatives: Consumers prefer alternatives that are compromise choices. Given a choice
between two alternatives, one priced lower than the other, the addition of a third choice,
priced higher than both, will increase the market share of the more expensive of the original
two. This finding suggests that companies can increase their overall sales and shift purchases
to higher-margin items by carefully designing the sets of alternatives that their customers
consider.
Floor Displays: Buyers are averse to choosing the lowest-quality alternative in sets
of three or more choices. One of the implications of this finding is that marketers of
well-known, high-priced brands should encourage retailers to organize floor displays
by model type, whereas marketers of lesser-known, lower-priced brands should
prefer organization by brand.
Brands: Consumers who think about the possibility that their purchase decisions will be
wrong are more likely to choose better known brands. In a test case, Simonson showed
that consumers debating between a better known, more expensive brand and a lesser-
known, less expensive brand expect to feel greater regret if they err by choosing the
cheaper option. Indeed, after thinking about the possibility of regret, consumers were
more likely to select the better-known brand. Kodak film has capitalized on this finding
with an advertising campaign that asks consumers to consider how they would feel if
they bought cheap film and their pictures didn't turn out.
Preferences: Consumers tend to select variety when buying multiple products for
consumption at a later time. In each of three weeks, Simonson asked a group of respondents
to select one of six familiar snacks for immediate consumption. A second group was asked to
pick three snacks -- one for immediate consumption and one for each of the next two weeks.
While marketing professionals can use these findings to influence consumer decision
making, consumers, too, can benefit by understanding their own behavior. "One of the
points of our research is to inform consumers about some of the factors that influence
their decisions," Simonson says. "With such knowledge, they may be able to make
better, more thoughtful decisions."
Strength
Prime location
Large floor space allowing for better visual merchandising
Large area also allows to stock a large variety of products under one roof
Experienced and competent management
Highly trained and motivated sales force
Brand equity
Large scale operations in various cities throughout the country allows them to
reap the benefits of “economies of scale”
Opportunities
Apart from the metros, cities like Ahmadabad, Pune, Lucknow, Indore and
Coimbatore have shown substantial retail presence. Most sport modern retail
formats like supermarkets, department stores and specialty chains. These markets
are expected to show exponential growth in the next few years. Thus Food Bazaar
has the opportunity to explore new markets
According to the Consumer Outlook study, consumers are generally satisfied with
the service that organized retailers extend to them. More importantly, they are
increasingly regarding these organized retailers as providing `value-for-money’.
These findings indicate that large retailers will capture most of the higher
consumer spending
Increasing penetration of the internet into Indian homes has provided Food Bazaar
Mall to break the geographical barriers and to increase their customer base. The
entry into online retailing, would, in fact, expand the product categories available
to the consumer
The time when retailers had to worry about competition only from their peers
down the street has come to an end. Food Bazaar is now facing increased
competition in the form of international retail chains that are making a beeline
towards the highly potential Indian markets. Moreover many big Indian business
houses are also vying a space in the Indian retail scene .
(BIG BAZAAR)
CUSTOMER SURVEY
YES 20
NOCAN’T SAY 5 5
25
20
15
Series1
10
0
YES NO CAN'T SAY
Result:
From the above table it is clear that customers are satisfied with the services of Big Bazaar
because out of 30 customers 20 has given the positive answer in favor of Big Bazaar.
18 7 5
HELPING NOT HELPING RUDE
20
18
16
14
12
10 Series1
8
6
4
2
0
G G E
IN IN D
P P U
L L R
E E
H H
T
O
N
Result:
From the above table it is clear that customer are satisfied with the attitude of the shopper’s .Out of
10
54 3 14
3 2 05
2 1 11 00
Series1
3
Series2
0 2 4 6 8 10 12 14 16 18 20
Result:
to shopper . Assistant behavior while 14 has given 4 marks&5 has given 3 marks
20 8 2
YES NO CAN’T SAY
can't say
2
no
8
yes
20
0 5 10 15 20 25
Series1
Result:
Out of 30 customers, 18 have told that they like the layout of Big Bazaar while 8 told that they do not
like very much.
18
DELIVERY SERVICES
20
15
10 Series1
18
5
7
5
0
Cr.Facility Tr.Facility Dl.facility
Result:
20
15
10 18 Series1
5 9
0 3
S ES
AY
IM VER
W T E
AL M
E N
SO
Result:
Out of 30 Customers ,18 customers said that Big Bazaar always provide better
services &it exceed their expectation.
25 5 0
YES NO CAN’T SAY
30
25
20
15 Series1
25
10
5
5
0 0
Yes No Can'tsay
Result:
10
PRICE 20 QUALITY
QUALITY
33%
PRICE
67%
Result:
Customer said that when they think about Big Bazaar they think about price.
out of 30 customer 20 customer have told this while 10 customer said that
they think about quality.
9 18 3 0
EXCELLENT GOOD SO-SO BAD
0
WORST
18
20
15
9
10
3
5 0 0
0
T D O D ST
N
E O
O -S BA R
E L L G SO W
O
E XC
Result:
10. What is the most important criteria of selection for their Store Assistant
and Store Manager?
1 5 4
4
3
0
2
1
0
1
0 2 4 6 8 10 12
Result:
Out of 20 retailers,10 has given importance to the store manager who have the
quality of identifying customer need, while others have given importance on
work & good communication skills.
Only to FMCG 2
2
0
4
0 8
3
2 14
1 0
Result:
Out of 20 retailer ,14 have told that they show all the product to customer,
while 4 have told that show some product to the customer.
2 2 12 4
Brand Price Customer preference Product visibility
0
3
12
0
2
0
2
1
0
2
0 2 4 6 8 10 12 14
Result :
Out of 20 Retailer, 12 has said they use the customer preference for
point of purchase counter while other said that they use brand
&product visibility.
10 5 1 4
Newspaper Radio jingle Advertising Banner
12
10
8
6
4
2
0
er le ne
r
in
g
a p ng n s
sp ji
B a e rti
io
ew ad A dv
N R
Result :
Out of 20 retailer ,10 has told that they use Newspaper as their main tool for
promotional .
10
0
0
2
7
1
0
0 2 4 6 8 10 12
Result :
20 Out of Retailer,10 retailer said that they get the customer satisfaction by
customer database while other have said that they use data of number of
repeat purchase.
12 5 3
Feedback No. of repeat purchase interaction of manager
With customer
3
2
1
0 2 4 6 8 10 12
Result :
Out of 20retailer, 12 have told that analyzing the customer satisfaction through
the feedback of customer.
Findings
1. Most of the stores are targeting almost all the segments of the society with their USP being
“Price benefit”
1) Convert your customers into publicity agents. Develop an incentive for them to tell
associates and friends about the value of your products or services. An endorsement from
them is more effective than any amount of advertising - and it is much cheaper.
2) Surprise your customers with unexpected value. If you sell products, include an
"unadvertised bonus" with every order. If you sell services, get into the habit of doing
something extra for every customer or client without charging for it.
3) Reward them each time they refer someone who becomes a customer. Your reward can
be as simple as a credit toward their next order from you.
4) The management of BigBazaar can improve their understanding of the role and
capabilities of advertising to improve customer relation and enhance loyalty. This
understanding should in turn results in a more effective and more efficient advertising
campaign.
5)Visual Merchandising: It is often seen that the people come to the store to browse
rather than buy.
6) Schemes: In store Promotions: The people visiting the store should be encouraged to
visit the store again and again. So it is necessary to delight the shoppers with the
shopping experience. It has been observed in
“Customer Service is a critical factor for keeping your clients coming back and ensuring
they’ll refer you to others”.
1: Growing your business will be a difficult task at best if you don’t perform, meet and
exceed your client’s expectations, and provide service that creates customers for life.
2: Customer service is all about the customer’s perception. You have to do more than just
get the job done. You must deliver on all the things (big and small) that affect the
relationship with your client. Consider opportunities for improvement in the following
areas.
5:Organization: Are you organized? Punctual? Reliable? When you show up to work with
your clients, have you done the work and are you prepared to make them feel comfortable
and taken care of? Even though you’ve done it hundreds, maybe thousands of times
6: Committing to the Little Things:Don’t ever dismiss the power of all the little things.
Together they can make all the difference and really separate you from the competition.
Returning calls and emails in a timely manner. Providing useful information to folks on a
regular basis. Showing appreciation for your clients through things like thank you notes,
exclusive client-only briefings, and open house, etc.
Clearly these are not the only relevant areas for creating great customer service, I assure
you. But these were some of the Factors which might
Provide a boost to the sales figures, though I am sure the organization would have already
implemented most of these measures already.
Services Profit
Promotion Distribution
Advertising Logistics
They seem to follow this to the core for effective Customer reach and encourage customer
loyalty.
QUESTIONAIRE ON CUSTOMER-RELATIONSHIP
MANAGEMENT IN RETAIL-SECTOR (BIG BAZAAR)
CUSTOMER BASED SURVEY
3.How would you rate the Shopper Assistant’s behavior on the scale of five?
5 4 3 2 1
DELIVERY SERVICES
NAME…………………………. ADDRESS………
1.What is the most important criteria of selection for their Store Assistant and Store Manager?
2.Do you display all the entire stock on the rack or some amount is kept for contingence?
3. Rate the following options as per your priorities while deciding the layout for store?
5. What is the preference order for promotional activity to create customer awareness?
Bibliography
Marketing Management
- Philip Kotlar
Research Methodology
- C. R. Kothari
Retail Marketing
J.A.Lamba
www.indiainfoline.com
www.google.com
www.businessline.com