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Sales promotion serves as a dynamic process crucial for stimulating short-term demand and sales
across various industries. It encompasses strategies aimed at launching new products, enhancing
short-term sales, expanding the customer base, and managing existing stock effectively. While
sales promotions offer several advantages such as insights into consumer behavior, increased sales
revenue, and loyalty building, they also come with drawbacks like product devaluation,
compromised selling prices, and over-reliance leading to a lack of loyal customers.
The Indian retail industry stands as a significant contributor to the nation's economy, witnessing
substantial growth and development over the years. With strong linkages to economic growth,
organized retailing has gained popularity in metropolitan cities and beyond. Future Group, notably
through its retail chain Big Bazaar, has played a pivotal role in reshaping India's retail landscape.
Celebrating its 10th anniversary with a fresh branding approach, Big Bazaar symbolizes the
amalgamation of traditional bazaars with modern retail conveniences, catering to diverse consumer
needs across the country.
1. McDougall and Fry (1974), Biswas and Blair (1991) - "The Effect of Rebate Offers on
Consumer Behavior"
- Previous research indicates that rebate offers perceived as valuable by consumers result in
increased acceptance and influence purchase decisions.
2. Banks & Moorthy (1999), Kopalle & Mela (1999), Smith & Sinha (2000), Gilbert & Jackaria
(2002) - "Impact of Price Discounts on Consumer Behavior"
- Price discounts have been shown to significantly influence consumer purchasing behavior,
leading to increased sales, particularly among price-conscious consumers.
4. Sinha and Smith (2000), Li, Sun, and Wang (2007) - "Effectiveness of 'Buy-One-Get-One-Free'
Promotions"
- 'Buy-One-Get-One-Free' promotions are effective in influencing consumer behavior by
providing additional value and perceived benefits, resulting in increased sales.
5. Smelser and Baltes (2001), William (2002), Yip (2003) - "Impact of Social Class on Consumer
Purchase Behavior"
- Social class significantly influences consumer purchase behavior, affecting attitudes,
motivations, and decision-making processes.
6. Guadagni & John D. C. Little (1983), Gupta (1988), Montgomery (1971), Schneider & Currim
(1991), Webster (1965), Blattberg, Peacock, & Sen (1976) - "Association of Promotions with
Brand Switching and Loyalty"
- Promotions have been associated with brand switching and reduced brand loyalty, as observed
in various studies analyzing purchasing behavior and brand preferences.
7. Peattie & Peattie (1994) - "Definition and Role of Sales Promotion"
- Sales promotion is defined as marketing activities aimed at encouraging direct responses from
consumers or intermediaries through the offer of additional benefits, contributing to short-term
sales growth and customer loyalty.
8. Adeleke & Aminu (2012) - "Impact of Competition on Brand Loyalty in the Nigerian Noodles
Market"
- The Nigerian noodles market is characterized by intense competition, environmental factors,
and brand attributes, all of which influence brand loyalty. Indomie noodles, among others, have
maintained a competitive edge due to factors such as quality, promotion, and brand recognition.
CHAPTER 3 : COMPANY PROFILE
Core Values:
Big Bazaar operates on a foundation of core values that guide its actions and decisions:
- Indianness: Embracing the rich cultural heritage and diversity of India.
- Leadership: Leading by example in both thought and business practices.
- Respect and Humility: Treating every individual with respect and maintaining humility in
conduct.
- Introspection: Engaging in purposeful thinking to drive continuous improvement.
- Openness: Remaining open and receptive to new ideas, knowledge, and information.
- Valuing and Nurturing Relationships: Building enduring relationships with customers, partners,
and stakeholders.
- Simplicity and Positivity: Adopting simplicity and positivity in thought, business, and action.
- Flow: Respecting and aligning with the universal law of nature.
- Adaptability: Remaining flexible and adaptable to navigate challenges and opportunities.
Key Features:
1. Product Variety: Big Bazaar offers a comprehensive range of products across categories
such as home and furniture, electronics, jewelry, toys, grocery, clothing, footwear, and
more. This diverse product selection ensures that customers can find everything they need
in one place.
2. Discounts and Offers: A key aspect of Big Bazaar's business model is its focus on
providing customers with attractive discounts and offers. This pricing strategy, coupled
with the principle of "low margin, high turnover," allows Big Bazaar to maintain
competitive pricing and drive customer footfall.
Revenue Model: Big Bazaar generates revenue through various tactics aimed at maximizing sales
and profitability:
1. Bulk Purchase: Big Bazaar purchases products in bulk from manufacturers at discounted
prices and sells them to consumers at a margin, ensuring profitability through volume sales.
2. Product Bundling: To clear slow-moving stock and optimize inventory, Big Bazaar
bundles products together, offering them to customers at discounted rates. This strategy
helps in stock clearance and enhances customer value.
3. Leveraging Products: Big Bazaar strategically showcases and promotes certain brands or
products within its stores to increase visibility and drive sales. By leveraging popular
brands, Big Bazaar enhances its product offerings and attracts more customers.
Sales Performance:
Over the past decade, Big Bazaar has witnessed exponential growth, expanding its presence to
over 100 stores in 90 cities across India. Through strategic initiatives and customer-centric
approaches, the brand has cultivated strong relationships with over 15,000 suppliers, offering
quality products to millions of consumers.
Milestones:
Big Bazaar's journey is marked by numerous milestones, including the launch of its flagship stores
in Kolkata, Bangalore, and Hyderabad in 2001, and the rapid expansion to over 100 stores by 2009.
The brand's commitment to innovation and customer service has earned it accolades such as the
Most Trusted Brand in 2024.
Departments:
Big Bazaar operates various departments within its stores, including Food Bazaar, Appliances,
Footwear, Furniture, and Human Resources, among others. Each department is dedicated to
providing exceptional service and meeting the diverse needs of customers.
Leadership:
Led by visionary entrepreneur Kishore Biyani, the Future Group is a prominent player in India's
retail landscape. With a diverse portfolio of retail chains, including Big Bazaar, Pantaloons, and
Food Bazaar, the group has established a strong presence across India. Future Group's core values
of 'Indianness,' innovation, and customer-centricity underscore its mission to serve Indian
consumers with quality products and affordable prices. Through continuous expansion, strategic
partnerships, and a deep understanding of consumer preferences, Future Group continues to shape
the retail industry and contribute to India's economic development.
Future Outlook:
As Big Bazaar commemorates its 15th anniversary with fresh branding and renewed promises, the
Future Group remains committed to rewriting rules while retaining its core values. With a focus
on innovation, affordability, and customer satisfaction, Big Bazaar is poised to continue its legacy
of serving Indian consumers and driving economic development in the years to come.
PESTEL Analysis:
Political: Government policies and regulations regarding foreign direct investment, taxation, and
trade agreements impact the retail sector's operations and growth prospects.
Economic: Economic factors such as inflation, GDP growth, and consumer spending influence
purchasing power and overall market demand for retail products.
Social: Changing demographics, lifestyle preferences, and cultural trends shape consumer
behavior and shopping patterns, impacting retailers like Big Bazaar.
Technological: Technological advancements in e-commerce, digital payment systems, and data
analytics drive innovation and disrupt traditional retail models.
Environmental: Increasing awareness of environmental sustainability and ethical sourcing
practices influence consumer preferences and brand perceptions in the retail industry.
Legal: Compliance with labor laws, intellectual property rights, and consumer protection
regulations is essential for retailers to ensure legal and ethical business practices.
Competitors:
Big Bazaar faces competition from both traditional and modern retailers in India's retail sector.
Major competitors include:
1. Reliance Retail: Reliance Retail operates a diverse portfolio of retail formats including Reliance
Fresh, Reliance Smart, and Reliance Trends, competing directly with Big Bazaar across various
product categories.
2. D-Mart: Owned by Avenue Supermarts Limited, D-Mart is known for its low-cost business
model and strong presence in western India. It competes with Big Bazaar in the hypermarket and
supermarket segments.
Recent Developments:
Big Bazaar continues to innovate and expand its operations to maintain its market leadership:
- In recent news, Big Bazaar announced the launch of its new flagship store in a prominent metro
city, featuring innovative customer experiences and enhanced product offerings.
- Additionally, the retailer unveiled a digital-first approach to sales promotion, leveraging social
media platforms and mobile apps to reach and engage tech-savvy consumers effectively.
- Big Bazaar also partnered with leading e-commerce platforms to strengthen its omni-channel
presence, offering seamless shopping experiences both online and offline.
Big Bazaar's strategic sales promotion initiatives, coupled with its expansive retail network and
customer-centric ethos, position it as a pioneer in India's retail landscape. With a relentless focus
on innovation, affordability, and customer satisfaction, Big Bazaar continues to shape the future
of retail, driving sustainable growth and success in the dynamic Indian market.
CHAPTER 4: RESEARCH METHODOLOGY
Source Data:
The study employed both primary and secondary data sources. Primary data was collected directly
from respondents, while secondary data was obtained from existing sources such as the internet or
previous studies.
Sampling Design:
A sample design serves as a roadmap for selecting survey participants. In this study, the sample
population consisted of customers of Big Bazaar in Chennai, with a sample size of 110
respondents.
5.4 Methodology and Framework:
The study employed various statistical tools for data analysis and interpretation, including
percentage method analysis, chi-square analysis, and simple correlations.
5.6 Chi-Square:
Chi-square tests, specifically Pearson’s chi-square test of association, were used to analyze
categorical data and determine if there was a significant relationship between two independent
variables.
This research methodology provides a structured approach to gathering and analyzing data, aiming
to derive meaningful insights into the behavior and preferences of Big Bazaar customers in
Chennai.
Chapter 5: DATA COLLECTION AND ANALYSIS
Age
20
15
10
0
18-25 26-35 36-45 46-55
Number of Respondents
Male
3. Occupation of Respondents
10%
20%
16%
Student
Professional
14% Homemaker
40% Retired
Others
SATISFACTION LEVEL
Number of Respondents
25
20
15
10
0
Highly Satisfied Satisfied Moderate Dissatisfied
5. Sales and Promotional Activities
Promotional Activity
Fair
Good
Excellent
0 5 10 15 20 25
7. Suitable Medium to Promote Promotional Schemes
Medium to Promote
Medium Number of Respondents
Radio 8 Promotional Schemes
TV 20
News Paper 15
Others 7
Total 50
Number of Respondents
9. Reason Behind Purchasing at Big Bazaar
10
5
GOOD SATISFACTION REASONABLE PRICE MORE OFFERS ANY OTHER
CHAPTER 6: SUGGESTIONS AND CONCLUSION
In conclusion, sales promotional activities are crucial for attracting and retaining customers at Big Bazaar.
While current promotions such as monthly savings and big day offers are effective, there is significant
potential for improvement in other areas. By enhancing communication about the T24 free recharge and
payback schemes, improving store ambiance, adopting better advertising strategies, and refining the
exchange mela, Big Bazaar can further boost customer satisfaction and sales.
Quality and customer experience should remain at the forefront of all promotional strategies. Regularly
gathering and acting on customer feedback will ensure that Big Bazaar stays aligned with consumer
expectations and market trends. By implementing these suggestions, Big Bazaar can solidify its position as
a leader in the Indian retail market and continue to grow its customer base.
Ultimately, the goal is to create a shopping environment that not only meets but exceeds customer
expectations, thereby fostering loyalty and driving sales growth. The future of retail lies in understanding
and adapting to the evolving needs of consumers, and Big Bazaar is well-positioned to lead this
transformation through innovative and customer-centric sales promotion strategies.
ANNEXURE:
QUESTIONNAIRE
Demographic Details:
Name:
Qualifications:
Age:
Occupation:
Gender:
1. Which factors do you normally consider while purchasing a product in Big Bazaar?
- A. Ambiance
- B. Quality
- C. Company image
- D. Price
- E. Others
4. In which sales promotional activities are you satisfied more in Big Bazaar?
- A. Payback offer
- B. Monthly saving offer
- C. Gift voucher
- D. Big day offer
- E. Others
5. In which department do you prefer to buy more products in Big Bazaar, Mumbai?
- A. Food
- B. Home appliances
- C. Toys and sports
- D. Non-food (soap, men's grooming)
- E. Others
7. Opinion about the sales promotion activities carried out by the company?
- A. Excellent
- B. Good
- C. Average
- D. Bad
- E. Very poor
8. What is your opinion about the advertisement?
- A. Highly satisfied
- B. Satisfied
- C. Average
- D. Dissatisfied
- E. Highly dissatisfied
10. Which medium do you feel is suitable to promote the various promotional schemes?
- A. Radio
- B. TV
- C. Newspaper
- D. Hoarding
- E. Others
11. What do you think about the sales services of Big Bazaar?
- A. Excellent
- B. Good
- C. Average
- D. Bad
- E. Very bad
12. Do you consider promotional schemes while purchasing a product in Big Bazaar?
- A. Yes
- B. No
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