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Abstract
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In this paper we, have studied the quality of retail industry in India. The reader
can get a clear definition of retail and its types. The paper also further explains the
importance of quality. What can be done to improve quality, and what are the
consequences if the quality of a products sold does not meet the standards in the retail
sector.
We did a case study on Big Bazaar one the emerging retail chains in India started
in the year 2001 by Mr. Kishore Biyani. Big Bazaar is a venture by the Pantaloon India
Limited. Pantaloon Retail was recently awarded the International Retailer of the Year
2007 by the US-based National Retail Federation (NRF) and the Emerging Market
The researchers visited the Chennai Big Bazaar located at Vadapalani very close
to the Saligramam Signal. The Rs.15 crore, store with an area of over 50,000 sq ft on the
ground floor is being operated by Anandram Developers Pvt Ltd, agents of Pantaloon
customers. Due to time constrain we were notable to interview more customers and also
The following were the results that we got with the above survey. 93.3%
customers were frequent visitors to the store. While the rest 6.8% it was their first time,
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as they were living quite far from the location of the store. 23.3% surveyed felt that the
pricing of products was low, 70% felt that the price was moderate or medium while the
rest 6.6% had said that the price was high. The customers were also happy about the
Shakthi card offered by Big Bazaar and issued by ICICI bank for home makers, which
gives them special benefits like redeemable points, one kilo sugar free every month etc.
36.6% had a fair shopping experience, 50% had a good experience and 13.3%
were not satisfied. Customers were saying that the products are easily accessible and
there are no long lines that they have to wait. Further they say that the sales associates
are helpful with decision and choice making. 36.6% said that the product that they
purchased was fair, 50% said the product was good in quality and 13.3% said it was
excellent. Customers said that the store only carried standard products that lasted long.
They also said when a product was bought at bulk the saving is high.
To conclude the survey clearly reviled that Big Bazaar was the most sought of
shop by Chennites. People visit Big Bazaar frequently and they love to shop in a big store
with a wide assortment of products. Majority of the customers felt that the pricing was
moderate, the customer satisfaction with the store display and salesman attitude was
moderate, and the quality of merchandise available in Big Bazaar is good. All the above
information clearly indicates that the retail market has taken a big leap in the Chennai
cosmopolitan. The feature retailing scene will offer the emerging market more
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Retailing is the set of business activities that adds value to the products and
services sold to consumers for their personal or family use. Retailers are directly
involved with final consumers. They are involved in strategy planning which is very
critical for their survival. They offer assortments of goods and services advice to
customers, convenience in parking and other value additions to the consumers. If they
are engaged in service retailing like dry cleaning, fast food, photo-processing etc., then
having the right merchandise, at the right price, at the right place, when the consumer
wants it. Retailers also provide market for the producers to sell their merchandise.
Retailers are the final distribution channel that links the manufacturer to the consumer.
Pelligrini suggests that retail companies have three options for growth: vertical
integration, retail diversification, and internationalization. Retailing has often been slow
to expand globally because of the high level of investment needed to set up.
their consumer to choose from a wide selection of brands, designs, sizes, colors
send cartoons of a single product. Retailers then offer the product in smaller
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quantities tailored to individual consumer needs. It’s also easy for the consumer to
stores. By this a customer can always count on the retailer to have the product.
The consumer does not have to worry about the storage of the product.
Providing Services: Retailers make it easier for consumer to buy and use the
product. They offer credit so a consumer can have the product now and pay for it
later. They have displays where consumers can test the product before they buy.
Some retail chains are opened 24/7 where consumers can buy items at any time of
the day. There is an option given to the consumer to pick the items with them or
to get it shipped.
Increasing the value of products and services: By providing the above elements to
Classification of retailers:
examples of Departmental stores in Chennai. Here, we find product lines laid out
pay rent as a percentage of takings to the host store. Departmental stores are often
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Supermarkets: Big Bazaar and Saravana Stores. These are large, self service
stores carrying a very wide range of Fast Moving Consumer Goods (FMCGs).
They are typically located in out-of-town retail parks, although many supermarket
chains have recently opened smaller city center sites. The supermarket chains are
often the first with new customer initiatives such as loyalty cards and in store
bakeries. For example Big Bazaar has tied with ICICI Bank for issue of the
SHAKTI card exclusively for women who are home makers. Low prices based
on large –scale efficiency are hard for smaller independent store to match. To
boost sales some super market operators are opening “super warehouse” stores
which carry more non perishable items than supermarkets – package goods and
canned items with fast turnover and they do not stock any perishable item they
carry.
Discount Sheds or ‘Category Killer’: Wavetel, Univercell, Vasanth & Co., and
Viveks’. These stores often stock bulky items such as furniture and electrical
goods. The ‘Category Killer’ terminology results from the tendency of some very
Specialty Shops: Nalli, Kumarans’, and Bata. These type of stores are
“personality”. Since the size of the shop is small, the management and sales
people come to know the customers well and have an advantage to serve them
better. These are typically found in central business districts of towns where
prime sites are vitally important. As it is frequently only the large national chains
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Convenience Stores: Petty shops (Petty kadai). Geographically and also in terms
of the range of products offered, these stores fill the gap between edge–to-town
supermarket and the ‘traditional’ corner shops situated close to housing estates.
These stores do not offer a wide range of assortments rather they carry basic
needs and act like mini-retailers as they do not stock a large quantity of any
product. In spite of all this, they have steady and regular customers. While
recent years.
Catalogue Showrooms: Dell, Apple, etc. These stores lower their costs by
selections via a catalogue and collecting their purchase from a stockroom attached
to the showroom site. They major advantage in a catalogue showroom is that there
are no added costs therefore the consumer gets the product at a concessional or
discount price.
significant outlets for many low-value products and their importance has greatly
futurebazaar.com have no physical shops that interface with the public. However,
most online retailing is in fact accounted for by ‘bricks and mortar’ retailers.
Telephone and direct mail retailing. They allow consumers to shop from home by
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placing order via mail or by calling a toll free number and charging the purchase
Door to Door Retailing: Amway, Oriflamme and local small scale business
people selling vegetables, fruits, snacks, books and other needs are certain
examples of door-door retailing. Door to Door selling means going directly to the
attention.
machine in a railway station, vending machine in a milk booth are some examples
for vending machine retailing. In this a customer deposits the money in the
reputation for quality was the most frequently mentioned sustainable competitive
advantage for retailers in the emerging retailing markets. What is required is quality
the organization. Such systems are well developed in Japan and are know in US as total
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Quality Management. They consist of a host of tools and precepts. The commitment of
emphasis on TQM values. Cross functional teams that focus on quality improvement
projects and are empowered to make changes. These teams are sometimes called quality
circles but that phrase is associated with early quality efforts and it too limiting. There
improving process that will lead to improved quality. Teams should use problem- solving
tools and methods to develop programs. A focus on the problem and the underlying
causes of customer complaints and areas of dissatisfaction. One approach used in TQM
is to explore a problem in depth by repeatedly asking, “Why?” This process has been
dubbed the five whys. Benchmarking performance comparisons are made with other
firms inside and outside the industry and inside and outside the country. Ambitious goals
are set. Successes are recognized. The involvement of suppliers in the system with
supplier audit, ratings, and recognition, as well as joint team efforts. Quality is defined in
Customer Focus:
The problem is to distinguish between lip service and a culture and a set of
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Commission is now based on 60% on profitability and 40% on customer
Customers are surveyed to determine whether they are happy with the local
sales team and whether the sales representative had helped them achieve their
business objectives.
motivation
Examples:
means quality.
Cars: A solid door-closure sound implies good workmanship and a solid, safe
body
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Signals of High Quality:
Customers assume if a product does not fit or have the right finish then the
product is a low quality product. This is known as the “fit and finish” dimension.
The GAPS model indicates what retailer needs to do to provide high-quality customer
service. When customers’ expectations are greater than their receptions of the delivered
services, customers are dissatisfied and feel the quality of retailer’s service is poor. Thus,
retailers need to reduce the service gap (the difference between customers’ expectation
and perception of customer service) to improve customers’ satisfaction with their service
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Service
Gap
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3. Delivery Gaps – The difference between the retailer service standards and actual
The latest innovation of retail marketing - BIG BAZAAR was studied by the
researchers:
The inspiration to set up big bazaar came not from any foreign super market, but
from a relatively small family run shop in Chennai, called “Saravana Stores”. In the
book “IT HAPPENED IN INDIA” authored by Mr. Kishore Biyani, the founder of Big
Bazaar gives all the credit to Saravan Stores for the innovation Big Bazaar. The store
was created to target the middle class people who shy to go into posh looking stores but
prefer a store with crowd and but still providing quality products.
History:
Big Bazaar, the value retailing concept of Pantaloon Retail and a part of Future
group was started in the year 2001. The chairman and the main architect of Pantaloom
Retail group is Mr. Kishore Biyani. Big Bazaar mainly caters to the needs of a family,
while keeping the prices low but still manages to supply quality goods. A customer can
get all the products needed for running a home under one roof at a guaranteed price and
the quality of product being excellent. Pantaloon Retail was recently awarded the
International Retailer of the Year 2007 by the US-based National Retail Federation
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(NRF) and the Emerging Market Retailer of the Year 2007 at the World Retail Congress
held in Barcelona. Future Group’s vision is to, “deliver Everything, Everywhere, Every
time to Every Indian Consumer in the most profitable manner.” Their vision statement
for quality. With the above great idea Big Bazaar has become a success story in the retail
world.
OBJECTIVE:
The researchers visited the Chennai division of Big Bazaar to understand whether
quality products were offered to the customers, and also wanted to understand
METHODOLOGY:
satisfaction and their perception on quality. Due to constrain of time and resources
the researchers could only interview 30 customers. More over the visit was held on
a Saturday being a busy day for Big Bazaar the manager would not permit us to
continue our survey. The survey was conducted using an interview schedule
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Chennai Big Bazaar:
Signal. The Rs.15 crore, store with an area of over 50,000 sq ft on the ground floor is
being operated by Anandram Developers Pvt Ltd, agents of Pantaloon Retail (I) Ltd. The
store has huge parking space for cars and two wheelers, for customers’ convenience they
Inside the store the products are categorically divided into aisles, Big Bazaar
carries over 1, 60,000 products. Big Bazaar store manager has considerable authority to
take most of the decisions on the spot or floor planning. That is to decide what item goes
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in which part of the store. The following are the categories of products that the Big
Bazaar, the first counter that a customer walks in is the medicine bazaar where all
medications for acute ailment are found, and then there is the cosmetics counter along
with the ladies accessories, followed by the cell phone counter and a wide range of shoes
and apparels for men, women, children and infants. Then there is a large variety of books
and stationeries, gift items, furniture, home décor, car accessories, electronics, utensils
and crockery, kitchen appliances, home essentials like cleaners and personal hygiene
products, grocery, fruits and vegetables, beverages, dairy and frozen products are the
other categories of products available. The merchandising of the products at Big bazaar
is done by local vendors and manufactures. Except for apparels and clothing related
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RESEARCH FINDINGS:
1. Frequency of Visits
Frequency of Visits
100 93.3%
80
Percentage
60
40
20
6.6%
0
yes = 28 no = 2
Yes/No
We found that 93.3 % customers were frequent visitors to the store. While
the rest 6.8% it was their first time, as they were living quite far from the location
of the store. The graph below shows the data that we obtained from 30 random
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2. Price Offered:
80 70%
70
60
Percentage
50
40
30 23.3%
20
6.6%
10
0
low =7 medium = 21 high = 2
Low / Medium /High
Most customers that we surveyed felt that the price of the apparels, house
décor and electronics was low. But the price of grocery and house hold were only
sold at MRP. Customers also save more when they buy things on daily special,
special offers, seasonal sales and also when they use their SHAKTI card offered
by Big Bazaar and issued by ICICI bank, a customer gets points for every
Rs.100 / 4 points that can be redeemed. 23.3% surveyed felt that the pricing of
products was low, 70% felt that the price was moderate or medium while the rest
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3. Customer Satisfaction:
Customer Satisfaction
60
50%
50
36.6%
40
Percentage
30
20
13.3%
10
0
fair = 11 good =15 bad = 4
Fair/Good/Bad
Customers shopping at Big Bazaar say that the quality of customer service
provided by the associates, easy availability and accessibility of products, and the
many choices offered under a single roof are main high lights that attract them to
come back again. This clearly shows the quality of management staff in store is
good. 36.6% had a fair shopping experience, 50% had a good experience and
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4. Quality Perception:
60
50%
50
40 36.6%
Percentage
30
20
13.3%
10
0
ok = 11 good = 15 excellent = 4
Ok/Good/Excellent
Finally when we asked about the quality perception that is the quality and
durability of the product sold at Big Bazaar, customers said that the store only carried
standard products that lasted long. They also said when a product was bought at bulk the
saving is high. 36.6% said that the product that they purchased was fair, 50% said the
Conclusion:
The researchers after the survey felt that the Big Bazaar was the most sought of
shop by Chennites. The survey reviled that people visit Big Bazaar frequently; majority
of them felt that the pricing was moderate, the customer satisfaction with the store
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display and salesman attitude was moderate, and the quality of merchandise available in
Customers who had been to Bombay and Bangalore Big Bazaar said that the
Chennai Big Bazaar has to develop and improve. Some felt because of Big Bazaar
smaller shops and departmental store suffer. Besides many agreed that in small shops
they do not get a wide assortment of products that is offered in places like Big Bazaar and
also the quality of product and service is better in big retailers than in smaller stores.
Child labor can be eradicated in places like Big Bazaar they do not hire children to
deliver goods and for other jobs. Customers also felt stores like Big Bazaar create a lot of
employment opportunity in the neighborhood. A customer felt that the most of the goods
are sold at the MRP (maximum retail price). Over all Big Bazaar has satisfied and happy
customers.
All the above information clearly indicates that the retail market has taken a big
leap in the Chennai cosmopolitan. In the dynamic environment mass merchandising - the
modern Philosophy has come to stay. The all purpose departmental store is an
expectation of the customer in combination with mail order and electronic ordering. The
feature retailing scene will offer the emerging market more challenges and opportunities
in the neighborhood.
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Bibliography
Books:
1. A. Aaker, David. Strategic Market management. New York: John Wiley &
Sons,2001, pp.154-162.
Web Sites:
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