Beruflich Dokumente
Kultur Dokumente
Submitted By:
Name: Ramya Nair
Year: 2012-14
SFIMAR
SUMMER PROJECT-2013
TABLE OF CONTENTS
Sr.N
o.
Index
Pag
e
No.
LITERATURE REVIEW
11
12
13
ANALYSIS OF RESEARCH
15
FINDINGS
46
RECOMMENDATIONS
46
10
CONCLUSION
47
11
REFERENCES
48
12
ANNEXURE
49
Executive Summary:
The internship comprises of 2 job profiles undertaken during the due course i.e. sales and
market research.
The report was commissioned to understand the various scales of operations in the retail
industry comprising of immense competition. It elaborates the various initiatives taken by
Future Groups Future Value Retail Company to expand their consumer base and converting
them into the loyalists of Big Bazaar. One of such efforts was the launch of the BIG
BAZAAR PROFIT CLUB which is an exclusive initiative being offered to the consumers to
own a card with an initial amount to be deposited and shop throughout the year. Its basically
an investment plan inducing the consumers to purchase and become the firms loyalists.
At the initial level, selling of Big Bazaar Profit Club card was conducted in the Kandivali
outlet of Big Bazaar. The main objective of being given this profile was to understand the
basic acceptance level of the card among the shoppers in the store.
The observations made while selling the product through extensive interactions with the
shoppers form the basis of the market research that was conducted at a later stage.
The market research has been done considering the observations made not only at the
Kandivali store but also 10 other outlets across Mumbai.
Objective of the market research:
1.
2.
To understand the factors which influences Big Bazaar shoppers to purchase the Big
Bazaar Profit Club Card.
To understand why Big Bazaar shoppers dont buy the card.
Observations:
In case of selling BAZAAR PROFIT CLUB CARD; selling at the store was much more
approachable and successful due to direct interactions with the Consumers and ease in
solving their queries.
3
In case of conducting a survey, the analysis showed that majority of the respondents do not
own the card affordability being the dominant reason.
Future Group was founded by Mr. Kishore Biyani on a simple idea: Rewrite rules, retain
values. This fundamental belief created a new kind of marketplace, forever transforming
Indian retail.
Future Group was conceived as a force to drive domestic consumption and capture every
addressable need of Indian consumers.
Future Group makes every effort to delight its customers, tailoring store formats to changing
Indian lifestyles and adapting products and services to their desires.
Future Group operates some of Indias most popular retail formats. Across value and lifestyle
segments, their multi-format retail strategy caters to the complete consumption needs of a
wide cross-section of Indian consumers.
Lifestyle
Style for Every Occasion
Value
Helping India Save
Home
Building Dreams in a New India
Digital
Connecting the Youth of India
As modern retail drives fresh demand and consumption in new categories, their strategy is
based on a deep understanding of Indian consumers, the products they want, and making
these products available in every city, in every store format. Future Group offers innovative
offerings at affordable prices tailored to the needs of every Indian household.
Pioneers in the Indias retail space, their formats are household names in more than 93 cities
and 60 rural locations across the country.
Their stores cover around 17 million square feet of retail space and attract around 300 million
customers each year.
Future Group brings various products, opportunities and services to millions of customers in
India. Through over 17 million square feet of retail space, they serve customers in 93 cities
and 60 rural locations across the country. Most of all, they help India shop, save and realize
dreams and aspirations to live a better quality of life every day.
Future Group is one of Indias retail pioneers with multiple retail formats; which connects a
diverse and passionate community of Indian buyers, sellers and businesses. The collective
impact on business is staggering: Around 300 million customers walk into their stores each
year and choose products and services supplied by over 30,000 small, medium and large
entrepreneurs and manufacturers from across India. And this number is set to grow.
Future Group employs 35,000 people directly from every section of our society. They source
our supplies from enterprises across the country, creating fresh employment, impacting
livelihoods, empowering local communities and fostering mutual growth.
Future Group believes in the Indian dream and has aligned their business practices to the
larger objective of being a premier catalyst in Indias consumption-led growth story. Working
towards this end, they are ushering positive socio-economic changes in communities to help
the Indian dream fly high and the Sone Ki Chidiya soar once again. This approach remains
embedded in our ethos even as they rapidly expand their footprints deeper into India.
KEY GROUP COMPANIES
Retail
Pantaloon Retail (India) Limited
Future Value Retail Limited
Finance
Future Generali Life Insurance Company Limited
Future Generali (India) Insurance Company Limited
Future Capital Holdings Limited
Future Ventures (India) Limited
Services
Future Supply Chains Limited
Future Human Development Limited
Future Media (India) Limited
Future Corporate Resources Limited
BIG BAZAAR
Big Bazaar is the largest hypermarket chain in India. Big Bazaar was introduced by the
Future Group in September 2001 with the opening of its first four stores in Kolkata, Indore,
Bengaluru and Hyderabad within a period of 22 days.
Started by Kishore Biyani, Big Bazaar was launched mainly as a fashion format selling
apparel, cosmetics, accessories and general merchandise. Over the years, the retail chain has
included in its portfolio a wide range of products and services, ranging from grocery to
electronics.
Big Bazaar is designed as an agglomeration of bazaars or Indian markets with clusters
offering a wide range of merchandise including fashion and apparels, food products, general
merchandise, furniture, electronics, books, fast food and leisure and entertainment sections.
Big Bazaar stores are aimed at providing a local marketplace feel to the shoppers. They offer
a wide variety of household items including retail apparels, food products, general
7
merchandise, furniture, electronics, books, fast food, etc. Several stores also have leisure and
entertainment sections.
Big Bazaar not only aim to provide customers value for their money but also realizes the
importance of customer patronage and hence it pushes itself to retain the existing customers
through innovative loyalty and membership programmes.
One such newly launched membership programme is the Big Bazaar Profit Club.
Big Bazaar Profit Club Pay Rs. 10,000 and Shop for Rs. 12,000
Big Bazaar has recently launched a membership program called the Big Bazaar PROFIT
CLUB. The key benefit of this program is that its members can pay Rs.10, 000 and shop for
Rs.1000 every month, for 12 months. This means that you pay Rs.10, 000 but you actually
get to shop for Rs. 12,000.
To become a member, the customer to pay a nominal one-time registration fee of Rs.100.
Once you load this card with Rs 10,000 it gets credited with Rs 12,000. This card can then be
used for shopping across our network of over 240 Big Bazaars, Food Bazaars, Fashion at Big
Bazaar and Food Right stores in India. Members of the Big Bazaar PROFIT CLUB will also
receive the benefit of all the existing offers in the store as well as loyalty benefits of Payback
card and T24.
8
The selling for the Big Bazaar Profit Club Card had been carried out on 2 levels by the
organisation Business to Consumer Selling and Business to Business Selling
Consumer behaviour
The following are the observations noted while interacting with the Big Bazaar shoppers:
The consumers were hesitant on paying a huge amount of Rs. 10,000 in advance.
The amount redeemable every month was Rs.1000 which was perceived by the
consumers less compared to the amount deposited. As matter they did mention their
monthly shopping to be more that Rs.1000.
Also certain customers preferred shopping for the entire Rs. 12,000 in a day or week
rather than paying for a period of 1 year.
The consumers also felt the sight of being tied for a year on the payment of the card
irrespective the cancellation policy being penalty free.
Customers who were regular shoppers look out for different offers and are more
interested in BBPC card and are ready to opt for the same.
10
Customers who were not regular lacked trust in the offer as the amount being a total of
Rs. 10,000. They rather preferred the PAYBACK card or the T24 card which could be
owned free of cost.
Consumers claimed that on the payment of Rs. 12,000, a return of Rs. 2,000 didnt
seem interesting as they shopped for more than 4000 per month.
On the other hand, many consumers purchased the cards assuming it as an investment
and the ease of shopping every month without cash. Also the flexibility of the money
getting carried forward.
LITERATURE REVIEW
Most retailers today offer their customers some kind of loyalty card or membership
program. The main idea behind this is to gain loyalty by rewarding the customers.
These programs are an extremely popular way to reward customers for their loyalty. In
addition to increased sales, loyalty cards are a proven, invaluable marketing tool that
enables retailers to identify who their customers are, what they purchase and how much
they are spending.
Marketing research consistently demonstrates that retaining existing customers is easier
than establishing new ones. Loyalty cards and membership programs are mainly used to
promote customer retention and increase sales. Retailers and marketers realise how
important loyalty and membership cards are to encourage customers to support their
products and brands (repeat business) through specials, offers and promotions (target
marketing).
The main difference between a membership card and a loyalty card is that the
customers have to make advance payments with respect to membership cards and only
then can they enjoy the benefits offered by the card. However, in case of loyalty cards
in most of the cases the customers are not required to make any payments.
Loyalty cards and membership cards are custom branded and may have a magnetic
stripe and/or barcode. As part of a retailers loyalty program, the customer/client
provides their personal and contact details to the retailer, who will usually add them to
a data base, and this information enables the retailer to market to the customer via
direct mailing, SMS and other types of advertising media.
11
II.
III.
IV.
V.
VI.
VII.
RESEARCH OBJECTIVES
1. To understand the factors which influences Big Bazaar shoppers to purchase the Big Bazaar
Profit Club Card.
2. To understand why Big Bazaar shoppers dont buy the card.
RESEARCH DESIGN
Research Methodology
Exploratory research and Descriptive Research:
To address the objective of this study, proposed is a two prolong approach
Qualitative: To identify the reasons for buying or not buying the Big Bazaar Profit Club Card.
Quantitative: To quantify the reasons for buying or not buying the Big Bazaar Profit Club
Card.
Research Methods
Observation and Survey using questionnaires
Target group
1. Age group : 25 yrs 34yrs, 35yrs 45yrs,
Frequency of visits to the store: Once a month, Once in 3-4 months, One time visitors
EDUCATION
Literate
Illiterat
no formal
e
education
Unskilled Workers
O
Skilled Workers
C
C
Petty traders
U
Shop owners
P
None
Businessman/
A Industrialists with 1 to 9
T
no. of employees
10+
I
Self-employed professionals
O
Clerical/Salesman
N
Supervisory level
Officers/Execs Junior
Officers/Execs Mid/Senior
School
School 5- HSC/
upto 4
9 Yrs
SSC
yrs
E2
E2
E2
E1
E2
E1
E1
B2
B2
3
4
5
6
7
8
9
A
B
C
E2
D
D
C
B1
D
D
D
C
B1
D
D
C
B2
B1
D
D
D
C
B1
D
D
C
B2
B1
D
D
D
C
B1
D
C
B2
B2
A2
D
D
C
C
B1
C
B2
B1
B1
A2
B2
C
C
B2
B1
C
B1
A2
A2
A1
B1
B2
B2
B1
A2
B2
A2
A2
A1
A1
A2
B1
B1
A2
A1
B2
A2
A1
A1
A1
A1
B1
A2
A2
A1
Sampling technique
Convenience Sampling
Sample size
A survey was conducted on 440 Big Bazaar shoppers across the 11 Big Bazaar
stores.
At the store level
Total 40 respondents were surveyed.
Weekday - 25 respondents
Weekends 15 respondents
DAY
STORE
NAME
GENDER
AGE GROUP
SEC
A
Andheri E
10
10
11
Bhayander
10
Dombivali
10
10
Ghatkopar W
10
13
12
Kalyan E
10
Kandivali E
10
10
10
Lower Parel
10
10
14
Mulund W
11
10
10
11
Thane
10
10
10
Ulhasnagar
11
10
10
Vashi
10
275
165
201
239
189
174
77
213
227
TOTAL
ANALYSIS OF RESEARCH
SHOPPERS PROFILE
GENDER
54% Females and 46% Males were contacted.
AGE
43% respondents belonged to age group of 25-34yrs and 40% respondents belonged to age
group of 35-45yrs and 18% belonged to the age group of 50yrs and above.
15
DAY
62% respondents were contacted during a weekday and 38% respondents were contacted
during a weekend.
SEC
52% respondents belonged to SEC A whereas 48% respondents belonged to SEC B
16
RESPONDENTS EDUCATION
53% respondents were Graduates, 25% respondents had either completed SSC or HSC, 18%
respondents were Post Graduates and 4% respondents had completed their basic schooling.
17
RESPONDENTS OCCUPATION
18
57% respondents were into service whereas 29% were non working and 14% were self
employed.
95% respondents spend Rs.5000 or less in Big Bazaar and only 5% respondents spend an
amount in the range of Rs.5001-10000.
Andheri
KandiBhayan- Ulhas
Lower
Dombi
vali
Vashi
der
nagar Kalyan Parel Mulund Ghatkopar Thane vali
Western
90
98
23
Urban
East
100
10
100
90
South
85
Central
10
10
88
90
10
15
Urban
West
67
Urban
Central
10
85
82
90% respondents in Andheri store belonged to the Western zone and 10% belong to the
Central zone.
20
98% respondents in Kandivali store belonged to Western zone and 2% belonged to Urban
West zone.
100% respondents in the Vashi store belonged to the Urban East zone.
23% respondents in the Bhayander store resided in Western zone, 10% belonged to Urban
East zone, 67% belonged to Urban West zone
All the respondents in the Ulhasnagar store belonged to the Urban East zone.
2% respondents from the Kalyan store belonged to Western Zone, 90% belonged to Urban
East and 8% belonged to Urban Central zone.
85% respondents from the Lower Parel store belonged to the South zone, 10% belonged to
the Central zone and only 5% belonged to the Western zone.
2% respondents from the Mulund store belonged to Urban East, 88% belonged to Central and
10% belonged to Urban Central.
8% respondents in the Ghatkopar store belonged to the Western Zone, 2% belonged to Urban
East and 90% belonged to Central zone.
5% respondents in Thane store belonged to Urban East,10% belonged to Central zone and
85% belonged to Urban Central Zone.
3% respondents from Dombivali store belonged to Urban East, 15% belonged to Central zone
and 82% belonged to Urban Central Zone.
SHOPPER BEHAVIOUR
RETAIL STORES
PERCENTAGE
21
VISITED REGULARLY
Big Bazaar
100
Food Bazaar
15
D-Mart
45
Spencer
31
Hypercity
17
Reliance Fresh
41
Reliance Mart
Easy Day
10
Haiko
Kirana
73
BASE
440
Since the survey was conducted in the Big Bazaar outlets, the percentage with respect to Big
Bazaar is 100%.
73% respondents visit kirana, 45% shop from Dmart, 41% visit Reliance fresh and 31% visit
Spencer.
Only 15% of the respondents said that they visit or shop from Food Bazaar.
A minority of 4% visit Reliance Mart and 2% visit Haiko.
Therefore D-mart, Reliance Fresh and Spencer can been seen as major competitors from
organised sector of retail.
STOREWISE BIFURCATION
22
RETAIL
STORES
VISITED
REGUL- AndheBhay- Dombi- Ghat
Kandi- Lower
Ulhas
ARLY
ri
ander vali
kopar Kalyan vali Parel Mulund Thane nagar Vashi
Big Bazaar 100 100
100
100
100
100 100
100
100 100 100
Food
Bazaar
28
15
15
20
23
25
10
15
13
D-Mart
45
45
48
58
48
53
43
45
48
45
25
Spencer
60
13
58
43
58
10
13
48
40
Hypercity
30
10
23
18
15
28
23
13
15
Reliance
Fresh
48
20
63
63
53
10
23
58
35
45
40
Reliance
Mart
10
Easy Day
23
18
10
25
23
10
Haiko
Kirana
98
63
90
90
93
53
15
95
63
83
68
100% respondents visit Big Bazaar across all the stores; the percentage of people visiting Big
Bazaar store is the same across all the 11 stores
28% from Andheri store and 25% from Lower Parel store visit Food Bazaar whereas only 3%
from Thane store visit Food Bazaar
58% from Ghatkopar store, 53% from Kandivali store and only 25% from Vashi store visit
Dmart
60% from Andheri store visit Spencer but no one from Thane visits Spencer.
30% from Andheri store visit Hypercity whereas only 8% from Bhyander and 3% from Vashi
visit Hypercity
63% from Ghatkopar as well as Dombivali visit Reliance Fresh whereas only 10% from
Kandivali and 20% from Bhyander visit Reliance Fresh
Very few visit Reliance Mart and Reliance Fresh
10% from Dombivali visit Reliance Mart whereas no one from Kandivali, Thane and Lower
Parel visits Reliance Mart
23
25% from Kalyan store visit Easy Day whereas no one from Bhayander, Kandivali, Lower
Parel, Thane and Vashi visit Easy Day
8% from Ghatkopar store visit Haiko whereas no one from Kandivali, Bhyander, Dombivali,
Lower Parel, Mulund, Thane and Vashi visit Haiko
Majority of the respondents visit Kirana stores across all the stores except for Lower Parel
store where only 15% go to kirana.
DAY
RETAIL
STORES
VISITED
REGULARLY
Big Bazaar
GENDER
AGE
SEC
weekday
weekend
male
female
25-34
35-45 50+ A
100
100
100
100
100
100
100
Food Bazaar
16
15
15
15
20
12
D-Mart
45
46
45
46
46
Spencer
33
28
29
33
Hypercity
17
16
16
Reliance Fresh
43
39
Reliance Mart
Easy Day
100
12
10
0
16
47
42
48
43
32
32
29
35
28
17
17
16
16
22
12
41
41
44
44
27
42
41
11
11
10
12
12
Haiko
Kirana
72
76
74
73
77
71
70
73
74
BASE
275
165
201
239
189
174
77
21
3
227
15
For Big Bazaar, Food Bazaar, Dmart, Hypercity, Reliance Mart, Easy Day, Haiko,Kirana
percentage of people visiting on a weekday and weekend are similar
72% visit Kirana,16% visit Food bazaar, 45% visit Dmart ,43% visit Reliance Fresh on a
weekday.
In Spencer, 33% visit on a weekday and 28% visit on a weekend
In Reliance Fresh 43% visit on a weekday and 33% visit on weekend
For all the stores except Spencer, the percentage of males visiting the store and females
visiting the store are similar.
In Spencer, 33% females and 29% males visit the store
24
For Big Bazaar, Spencer, Hypercity, Reliance Mart, Easy Day, Haiko and Kirana there is not
much of a difference in the percentage of shoppers of age group 25-34yrs, 35-45yrs and 50 and
above.
20% in the age group of 25-34 visit Food Bazaar whereas 12% each in the age group of 35-45
and 50 and above visit Food Bazaar
47% in age group of 35-45 visit Dmart
44% each in the age group of 24-34yrs and 35-45yrs visit Reliance Fresh whereas only 27% in
50 and above age group visit Reliance Fresh
77% in the age group of 25-34yrs visit kirana whereas around 70% in the age group of 35-45
and 50 and above visit kirana
RESPONDENTS
EDUCATION
RESPONDENTS
OCCUPATION
Post
SSC/HSC Graduate Graduate
Self
Nonemployed Service working
RESPONDENT DETAILS
100
100
100
100
100
100
Food Bazaar
15
14
20
17
15
16
D-Mart
40
46
49
58
43
43
Spencers
29
28
44
28
31
35
Hypercity
13
14
32
17
15
19
Reliance Fresh
35
44
47
41
43
38
Reliance Mart
Easy Day
14
13
12
Haiko
Kirana
75
71
77
69
73
76
BASE
110
233
79
64
249
127
77% Post Graduates visit Kirana whereas only 4% Post Graduates visit Reliance Mart and
Haiko
25
71% Graduates visit kirana and round 45% Graduates visit Dmart and Reliance Fresh
69% Self employed shoppers visit kirana 58% Self employed shoppers visit Dmart
Around 43% shoppers into service visit Dmart and Reliance Fresh
76% non working visit kirana and 43% visit Dmart
FREQUENCY OF VISIT AT BIG BAZAAR
The average frequency of visit i.e. 0.91 indicates more people visit Big Bazaar once a month.
26
BIG
BAZAAR
Bhay- Ulhas
Lower
Andheri Kandivali Vashi ander nagar Kalyan Parel Mulund Ghatkopar Thane Dombivali
Once a
month
75
45
40
53
58
73
43
75
80
48
75
Once in 23 months
18
25
33
23
23
28
25
23
15
28
23
Once in 45 months
23
18
18
13
28
18
First time
10
0.65
0.88
0.92
0.71
0.88
Average
Frequency 0.91
0.68
Rank - Once a month 1, once in 2-3 months 0.5, once in 4-5 months 0.25
The Average Frequency across all stores is more that 0.5 which suggests that majority
respondents visit Big Bazaar once a month.
80% respondents from Ghatkopar store visit Big Bazaar once a month, 75% from Andheri,
Mulund, Dombivali visit Big Bazaar once a month whereas only 40% from Vashi store visit
Big Bazaar once month
Around 25% from all the stores except Andheri and Ghatkopar visit Big Bazaar once in 2-3
months
18% from Andheri and 15% from Ghatkopar visit Big Bazaar once in 2-3 months
28% from Lower Parel store visit Big Bazaar once in 4-5 months
10% from Vashi store were one time shoppers at Big Bazaar
Day
Gender
27
Age
Sec
BIG
BAZAAR
25-34
35-45
50+
Once a month
60
60
63
58
65
58
55
68
53
Once in 2-3
months
24
24
19
28
24
22
26
23
25
Once in 4-5
months
11
10
11
10
13
13
13
First time
10
BASE
275
165
201
239
189
174
77
213
227
Average
Frequency
0.79
0.80
0.81
0.78
0.82
0.77
0.76
0.83
0.76
Rank : Once a month 1, once in 2-3 months 0.5, once in 4-5 months 0.25
RESPONDENTS EDUCATION RESPONDENTS OCCUPATION
FREQUENCY
OF VISIT AT
BIG BAZAAR SSC/HSC Graduate
Once a
month
52
58
Once in 2-3
months
23
28
Once in 4-5
months
17
First time
8
BASE
110
Average
Frequency 0.74
Post
Graduate
Self
employed Service
Non-working
76
52
59
68
15
30
25
17
14
10
10
6
233
0
79
5
64
6
249
5
127
0.79
0.86
0.73
0.79
0.83
Rank : Once a month 1, once in 2-3 months 0.5, once in 4-5 months 0.25
Frequency of visit at Big Bazaar during weekday and weekend is similar
63% males and 58% females visit Big Bazaar once a month
19% males and 28% females visit Big Bazaar once in 2-3 months
65% in age group of 25-34yrs and around 55% in the age group of 35-45yrs and 50 and
above visit Big Bazaar once a month
68% SEC A and 53% SEC B visit Big Bazaar once a month
28
Gender
Sec
FREQUENCY
TOTAL
male
female
Once a month
72
77
68
74
70
19
13
24
20
18
10
12
First time
BASE
68
31
37
35
33
Average
Frequency
0.84
0.86
0.82
0.86
0.82
Rank : Once a month 1, once in 2-3 months 0.5, once in 4-5 months 0.25
The Average Frequency of 0.84 suggests that majority visit Food Bazaar Once a month
29
Ran
k: Once a month 1, once in 2-3 months 0.5, once in 4-5 months 0.25
Average Frequency - 0.90
82% visit Reliance Fresh once a month.
The average frequency of visit indicates more people visit Reliance Fresh once a month.
Day
FREQUENCY
OF VISIT AT
RELIANCE
FRESH
Gender
Age
Sec
2534
3545
50+
Once a month
82
86
75
78
86
76
84
100
80
85
Once in 2-3
months
14
12
19
17
12
19
13
13
15
Once in 4-5
months
BASE
182
118
64
83
99
84
77
21
90
92
Average
Frequency
0.90
0.93
0.86
0.88
0.92
0.87
0.92
1.00
0.88
0.92
Rank : Once a month 1, once in 2-3 months 0.5, once in 4-5 months 0.25
RESPONDENTS EDUCATION
FREQUENCY
OF VISIT AT
RELIANCE
30
RESPONDENTS
OCCUPATION
Self
Service
employed
Nonworking
FRESH
once a month
100
84
80
86
69
86
81
Once in 2-3
months
13
17
11
23
11
17
Once in 4-5
months
BASE
38
103
37
26
108
48
Average
Frequency
1.00
0.91
0.89
0.93
0.83
0.92
0.90
Rank : Once a month 1, once in 2-3 months 0.5, once in 4-5 months 0.25
Average Frequency is more than 0.5 which suggests that majority visit Reliance Fresh once a
month.
FREQUENCY OF VISIT AT DMART
100
80
84%
60
40
16%
20
1%
0
Once a month
Once in 2-3
months
First time
84% respondents visit Dmart once a month, 16% visit Dmart once in 2-3 months.
LOYALTY PROGRAMS
31
69% respondents were aware about different loyalty cards offered by Big Bazaar.
Store level:
93% respondents in Dombivali and Kalyan Store were aware about loyalty programs,
55% respondents in Lower Parel store were not aware about loyalty programs.
50% respondents in Bhayander store were not aware about loyalty programs.
48% respondents in Vashi store were not aware about loyalty programs.
45% respondents in Kandivali and Thane store were not aware about loyalty programs.
Day
Gender
32
Age
Sec
LOYALTY
PROGRAM
AWARENESS weekday weekend male female 25-34 35-45
50+
YES
71
67
69
69
72
68
65
77
63
NO
29
33
31
31
28
32
35
23
37
275
165
201
239
189
174
77
213
227
BASE
Age:
72% respondents in the age group of 25-34yrs were aware about loyalty cards.
32% respondents in 35-45yrs age group not aware about loyalty programs.
SEC:
77% respondents belonging to SEC A were aware about loyalty cards.
37% shoppers belonging to SEC B not aware about loyalty programs.
RESPONDENTS
OCCUPATION
RESPONDENTS EDUCATION
AWARENESS
ABOUT BIG
BAZAAR
LOYALTY
PROGRAMS
SSC/HSC
YES
Graduate
Post
Graduate
Seld
employed
Service
Nonworking
65
67
84
58
73
69
NO
35
33
16
42
27
31
BASE
110
233
79
64
249
127
33
86% respondents were aware about Payback Card, 76% respondents aware about Payback
card and 69% aware about Big Bazaar Profit Club Card.
Day
LOYALTY
CARD
AWARENESS
Gender
Age
sec
T24
76
76
76
79
73
75
77
76
75
77
PAYBACK
BIG BAZAAR
PROFIT CLUB
CARD
86
87
84
85
86
89
86
76
82
89
69
69
70
78
61
65
70
78
70
68
BASE
305
195
110
139
166
137
118
50
163 142
The level of awareness with respect to Big Bazaar Profit Club Card amongst shoppers during
weekday and weekend is similar.
78% males and 61% females were aware about Big Bazaar Profit Club Card.
78% respondents in the age group of 50 and above are aware about the card whereas only
65% in the age group of 25-35yrs aware about the card.
70% respondents belonging to SEC A and 68% belonging to SEC B aware about the card
which shows that a similar level of awareness exists among respondents in both SEC A and
SEC B categories
34
RESPONDENTS
EDUCATION
LOYALTY CARD
AWARENESS
RESPONDENTS
OCCUPATION
Post
Seld
SSC/HSC Graduate Graduate employed Service
Nonworking
T24
69
75
83
84
71
83
PAYBACK
92
82
86
95
80
93
71
66
73
81
69
66
BASE
72
157
66
37
181
87
73% Post Graduates and 71% respondents who have completed either SSC or HSC were
aware about Big Bazaar Profit Club Card.
81% respondents who are self employed were aware about Big Bazaar Profit Club Card
Bhayan Ulhas
Lower
Dombi
Andheri Kandivali Vashi der
nagar Kalyan Parel Mulund Ghatkopar Thane vali
OWN
15
0
8
10
8
5
3
5
5
15
8
DONT
85
100
93
90
93
95
98
95
95
85
93
STORE
35
OWN
15% owned BBPC in Andheri, 15% owned Big Bazaar Profit Club Card in Thane.
Day
Gender
Age
Sec
YES
10
10
18
11
NO
94
90
90
95
96
94
82
89
96
BASE
275
165
201
239 189 174 77 213
227
10% weekend shoppers owned Big Bazaar Profit Club Card.
10% males and 5% own Big Bazaar Profit Club Card.
18% respondents in the age group of 50yrs and above own Big Bazaar Profit Club Card.
RESPONDENTS
EDUCATION
Post
Graduate
RESPONDENTS
OCCUPATION
Self
Employed Service
Nonworking
YES
13
13
NO
95
95
87
88
94
94
BASE
110
233
79
64
249
127
13% Post Graduates, 13% self employed earn Big Bazaar Profit Club Card
95% shoppers who have done HSC/SSC, 95% Graduates and 87% Post Graduates do not
own the card.
36
37
The respondents who were not aware of this program were explained about the scheme while
conducting the survey so as to see how likely they were to now purchase the card.
LIKELINESS TO PURCHASE
STORE
Ulha
s
Ghat
Dom
Andher Kandiv Vash Bhaya naga Kalya Lower
kopa
b
i
ali
i
nder r
n
Parel Mulund r
Thane ivali
38
V.likely
Somewhat
likely
19
31
17
20
14
19
26
21
22
18
26
May/may
not
16
23
14
26
20
14
21
16
22
24
20
Somewhat
unlikely
38
21
31
17
46
47
21
32
33
21
29
V.unlikely
28
21
37
29
20
17
26
32
22
38
23
BASE
32
39
35
35
35
36
38
38
36
34
35
MEAN
SCORE
2.3
2.8
2.1 2.6 2.3 2.4
2.6
2.3
2.4 2.2
2.6
Rank : Very Likely 5, Somewhat Likely 4, May/May not 3, Somewhat Unlikely 2,
Very Unlikely 1
Mean score across all the stores is between 2 and 3 which suggests that majority of the
respondents are either somewhat unlikely or may/may not buy the card
Mean score suggests that shoppers in Kandivali, Bhayander, Lower Parel, Dombivali may or
may not buy the card whereas in the other stores, respondents are somewhat unlikely to buy
the card.
Day
Gender
LIKELINESS
TO
PURCHASE weekday weekend male female 25-34
39
Age
35-45
Sec
50+
V.likely
Somewhat
likely
21
23
17
25
21
23
19
18
May/may not
21
16
20
19
14
26
19
25
17
Somewhat
unlikely
30
31
33
28
39
24
23
31
30
V.unlikely
26
27
28
26
24
26
34
23
30
BASE
253
140
174
219
174
157
62
184
209
MEAN
SCORE
2.4
2.4
2.3
2.5
2.4
2.5
2.4
2.6
2.3
22
Rank : Very Likely 5, Somewhat Likely 4, May/May not 3, Somewhat Unlikely 2, Very
Unlikely 1
30% weekday shopper said that they are somewhat unlikely to purchase the card, 26% said
that they are very unlikely to purchase the card, 21% said that they are somewhat likely to
purchase the card.
31% weekend shoppers said that they are somewhat unlikely to purchase the card, 27% said
they are very unlikely to purchase the card and 23% said they are somewhat likely to
purchase the card.
The mean score for weekdays as well as weekends is 2.4 which suggests that shoppers are
somewhat unlikely to purchase the card.
The mean score with respect to respondents belonging to SEC A is 2.6 which states that the
respondents may or may not buy the card.
Overall, the percentages and mean score suggests that majority of the respondents are
somewhat likely to purchase the card.
40
72% respondents are likely to buy the card because of the benefit of free shopping, 72%
found the offer to be beneficial.
47% said they are likely to buy the card because it can be used in any Big Bazaar Outlet
across India.
32% said they are likely to buy the card as they get to shop for products worth Rs.12000 by
paying Rs10000 i.e. shopping worth Rs.2000 free which gives a benefit of 20%.
REASONS FOR NOT TAKING THE CARD
Out of the 408 respondents who were asked about their intentions to purchase the card, 119
respondents said that they were somewhat unlikely to buy the card and 104 respondents said
that they are very unlikely to buy the card.
Therefore, this question was asked only to those 223 respondents. Hence the base for this
question is 223.
41
42% respondents said that they are not likely to purchase the card as it is not affordable, 35%
said since they were not frequent shoppers they wont be interested in the offer and 33% did
not find the offer beneficial.
The respondents who say that they are not able to afford the offer include the respondents
who cannot afford Rs.10000 which is the advance payment required to purchase the card as
well as those respondents who spend a lot in Big Bazaar and cannot afford that cumulative
amount in the month they buy the card.
For e.g. Shopper A is a regular customer at Big Bazaar and spends around Rs.5000 every
month in Big Bazaar. If this customer is to buy the card in the month of May, he will have to
spend Rs.10000 along with his bill amount of Rs.5000 in May. If he avails the offer before
billing he may have to pay a total amount of Rs.14000. So in this case if the customer says he
cannot afford the offer it means that he cannot afford spending 14000 at a go in a single
month.
PERCENTAGE
42
Not affordable
27
29
12
Not beneficial
44
Blocking Money
12
permission required
not secure
23
BASE
77
44% respondents who said that they may/may not purchase the card, said so because they
dont find the offer beneficial and 27% do not find the scheme affordable
LIKELINESS TO RECOMMEND
43
44
Ghat
TOTA Andher Bhay- Domb Kopa Kaly Kand Lower
Ulhas
L
i
ander ivali r
an ivali parel Mulund Thane Nagar Vashi
Very
likely to
recomme
nd
Somewha
t likely to
recomme
nd
May or
may not
recomme
nd
Somewha
t unlikely
to
recomme
nd
Very
unlikely
to
recomme
nd
Base
Mean
score
20
16
23
29
26
11
33
13
23
20
16
31
27
49
42
45
32
24
39
10
29
26
22
27
30
15
24
16
21
29
11
54
31
26
35
19
24
10
34
42
23
17
24
20
410
37
39
38
38
38
38
36
39
35
35
37
3.4
3.3
3.8
3.9
3.8
3.1
3.6
3.2
3.2
45
Day
Gender
Age
Sec
50+
Very likely
15
26
18
21
25
15
16
25
14
Somewhat likely 33
29
28
34
31
30
34
32
30
23
27
26
25
30
23
22
32
Somewhat
unlikely
19
18
21
17
17
21
16
18
19
Very unlikely
10
Base
252
158
190 220
173
164
73
207
203
Mean score
3.4
3.6
3.3
3.6
3.3
3.3
3.6
3.3
3.5
46
FINDINGS
Apart from Big Bazaar the retail stores majorly visited are Dmart, Reliance Fresh,Spencer.
As far as unorganized retail sector is concerned majority of the respondents still visit kirana
stores.
60% respondents visit Big Bazaar once a month whereas the remaining 40% visit the store
less frequently.
Around 69% respondents are aware of the different loyalty programmes offered by Big
Bazaar.
Highest awareness are for Dombivali, Kalyan, Mulund, Andheri and Mulund store whereas
lower level of awareness is seen in Lower Parel, Bhyander, Kandivali and Thane stores.
Respondents in the age group of 25-34yrs more aware and lower awareness is seem amongst
SEC B shoppers and self employed shoppers.
Out of 440 respondents, 305 were aware about different loyalty programs out of which 69%
were aware about Big Bazaar Profit Club Card.
Only 7% respondents owned Big Bazaar Profit Club Card and the main reason stated for
buying the card was that they found the offer to be beneficial.
The main reason given by respondents who said that they are not likely to buy the card was
affordability.
Out of the respondents who were either not aware of the card or did not own the card despite
being aware about it, 23% were likely to purchase the card as they found the offer beneficial
& as they get to shop for Rs.2000 extra.
Majority of the respondents were somewhat likely to recommend Big Bazaar Profit Club
Card to others.
RECOMMENDATIONS:
Increase awareness about loyalty programs in Kandivali, Lower Parel, Vashi, Bhayander
stores.
Increase awareness about Big Bazaar Profit Club Card amongst shoppers in the age group of
25-34yrs females and SEC B shoppers.
Increase awareness for shoppers who visit Big Bazaar once in 2-3 months
Find ways to make the offer affordable by providing provision for advance payment of
Rs.10000 through installments.
The conversion rates for shoppers who are already aware about the card but still have not
purchased it has to be improved.
47
CONCLUSION
The project involved working under 2 profile i.e. sales and market research.
Selling the card required a lot of interaction with the customer. It therefore became very
important to know what feature of the product interests the customer the most. This feature
would be different for different customers and different for customers at different stores.
Adding to it, it is the first time any retail store has come up with a membership card which is
quite different from the loyalty cards as it requires the customers to make an advance
payment.
During the course of 2 weeks at the store, I have been able to sell 19 cards but this does not
include the weekend activations. While selling an opportunity was given to interact with
several regular as well as non regular Big Bazaar shoppers and a lot of observations were
made possible.
Similar observations from all the 11 Big Bazaar outlets in Mumbai were collected and a
suitable questionnaire was framed. The profile of market research involved visiting these 11
stores twice i.e. one during a weekday and one during a weekend.
On the basis of analysis of the questionnaire, it was possible to understand the factors
influencing the customers to buy the card and the reason behind not opting for the card.
This study when aligned with similar type of research with respect to other stores across India
will give the major factors that influence the consumer to buy or to not buy the card.
As far as implementation of the recommendation goes, the Company will study the data for
all the outlets across India and then decide on further strategies.
This study will give the company the basis of further research and form strategies to sell the
product extensively in the Indian markets.
48
REFERENCES
Bibliography:
It happened in India Kishore Biyani
We are like that only Rama Bijapurkar
Webliography:
http://www.futuregroup.in/about-us/about-group.html
http://www.futuregroup.in/about-us/our-fundamental-beliefs.html
http://www.fvrl.in/about-us/overview-retail.html
http://titan.co.in/loyalty-programs
http://www.accentiv.co.in/case_studies.html
49
ANNEXURE
QUESTIONNAIRE
RESPOND
ENT NO.
STORE
DATE
DAY
WEEKDAY
WEEKEN
D
We are students pursuing MBA and this survey is carried out as a part
of our summer internship. This survey is carried out for all Big Bazaar
stores across Mumbai and is for educational purpose.
NAME: _________________________________________________________
GEND
ER
AGE
MALE
25 34 yrs
FEMALE
35 45
2 50 yrs and
3
yrs
above
R1a) Now I would like to know something about the person who makes the
biggest contribution to the running of the household. What is the highest level
to which he or she has studied? SINGLE CODING
----------------------------------------------------------R1b) What is his/her occupation? (If Retired: What was his occupation
before he / she retired? SINGLE CODING
--------------------------------------------------------------------CIRCLE EDUCATION LEVEL AND OCCUPATION IN GRID BELOW AND
CODE THE SEC
EDUCATION
C
Unskilled Workers
C
U
Skilled Workers
P
Petty traders
A
Shop owners
T
I
None
OBusinessman/
1 to
NIndustrialists
9
with no. of
employees
10+
Self-employed
professionals
Clerical/Salesman
Literate
no
School
Illiter
formal
upto 4
ate
educatio yrs
n
School HSC/
5-9 Yrs SSC
Some
Grad/Pos
Grad/Post
coll but t Grad Grad - Prof.
not Grad Gen
E2
E2
E2
E1
E2
E1
E1
B2
B2
3
4
5
E2
D
D
D
D
C
D
D
C
D
C
B2
C
B2
B1
C
B1
A2
B2
A2
A2
B2
A2
A1
B2
B2
B2
B1
A2
A1
A1
B1
B1
B1
A2
A2
A1
A1
A1
B2
B1
A2
A1
B2
B1
B1
50
Supervisory level
Officers/Execs
Junior
Officers/Execs
Mid/Senior
B2
B1
A2
B2
B1
A2
A2
B1
B1
B1
B1
B1
A2
A1
A1
School
1 SSC/HSC
2 Graduate
Post
graduate
Self
employ
ed
Student
Service
Nonworking
Q3
Onc
ea
mon
th
Once
in 23
mont
hs
2
Once
in 4-5
mont
hs
Fir
st
tim
e
BIG
01
1
3
4
BAZAAR
FOODBAZA
02
1
2
3
4
AR
DMART
03
1
2
3
4
SPENCERS
04
1
2
3
4
HYPERCITY
05
1
2
3
4
RELIANCE
06
1
2
3
4
FRESH
RELIANCE
07
1
2
3
4
MART
EASYDAY
08
1
2
3
4
HAIKO
09
1
2
3
4
KIRANA
10
1
2
3
4
STORE
4a) What is your average monthly household expenditure? RECORD IN GRID
ASK Q4b IF CODED 1 IN Q2b
4b) What is your average monthly expenditure at Big Bazaar? RECORD IN
GRID
51
5) Big Bazaar has loyalty programs, are you aware of any loyalty cards
offered by Big Bazaar? SINGLE CODE
YES
NO
1
2
3
9
8) Please tell me the reasons for purchasing this card? MULTIPLE CODES
POSSIBLE
Free shopping worth
Rs.2000
Offer is beneficial
Flexible usage of the card
Return of more than 20%
OTHERS
1
2
3
4
1 Somewh
at likely
2 Somewha
t unlikely
3 May or
May not
purchase
52
4 Very
unlikel
y
5 Dont
know/Can
t say
2
3
4
1
2
3
4
1 Somewha
t likely
2 Somewhat
unlikely
3 May or
May
not
53
4 Very
unlikely
5 Dont
know/
Cant say
54