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I would like to express my deep sense of gratitude towards the Faculty and the seniors
around us, for their guidance and encouragement throughout the period of the project
study. I am indebted to their guidance, spirit and valuable suggestions.
I would also like to thank BIG BAZAAR and its employees, who has been a continuous
source of inspiration for me throughout the curriculum.
I would like to thank everyone who has been a help directly or indirectly leading to the
successful completion of the study report.
AMRIT SINGH
Declaration
I hereby declare that I have carried out Research Project on the topic entitled Customer
Relationship Management in Retail Sector (Big Bazaar) in NCR.
I further declare that this project work is based on my original work and no part of this
project has been published or submitted to anybody.
TABLE OF CONTENTS
Sr. No.
Topic
Chapter 1
1.1
1.2
1.3
1.4
1.5
Chapter -2
2.1
2.2
2.3
2.4
2.5
Introduction
Significance
Managerial usefulness of the study
Objective
Scope of the Study
Methodology
Chapter 3
Conceptual Discussions
Chapter 4
Data Analysis
Chapter 5
Annexure
Bibliography
CHAPTER-1
INTRODUCTION
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 90s 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 dont have time for things.
Though some of the customers perceive departmental stores to be expensive and only
high income categorys cup of tea, the stores make constant efforts to induce them to at
least visit the store at once during the same period, or discount offers.
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 highCeilinged 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.
Indian Consumers:
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 counterperson 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
because of increased consumption through retailing and the corresponding increase in
employment created by retailing.
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 bestknown 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 childrens 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.
10
Urban
Suburban
Rural
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.
Competition today is increasingly intertype, or between different types of store outlets.
Discount stores, catalog showrooms, and department stores all compete for the same
consumers. The competition between chain superstores and 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.
Todays retailers are moving toward one of two poles, operating either as mass
merchandisers or as specialty retailers. Superpower retailers are emerging. Through their
superior information systems and buying power, these giant retailers are able to offer
11
strong price savings. These retailers are using sophisticated marketing information and
logistical systems to deliver good service and immense volumes of product at appealing
prices to masses of consumers.
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.
Technology is becoming critical as a competitive tool. Retailers are using computers to
produce better forecasts, control inventory costs, order electronically from suppliers, send
e-mail between stores, and even sell to
Customers within stores. They are adopting checkout scanning systems, electronic funds
transfer, and improved merchandise-handling systems.
12
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.
There are a number of reasons behind this fragmented retail market. Some of the major
reasons being:
High taxes.
No exposure to media.
13
"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 .
CRM is a business strategy, one that puts the customer at the heart of the
business.
Thats 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.
14
One just needs to think of the local shop owner who knew everyone of his customers
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.
15
16
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. Thats 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.
17
as a process that brought together lots of pieces of information about customers, sales,
marketing effectiveness, and responsiveness and market trends.
CRM helps businesses use technology and human resources to gain insight into the
behavior of customers and the value of those customers.
18
The degree of customer satisfaction you deliver determines the level of long-term
success you will achieve in business. - --- Training Mantra for Sales Force
19
Never make any promises you can't (or won't) keep. Nothing alienates customers faster
than getting something less than they expect from a business transaction. They won't do
business with you again. And they will tell everybody they know about their unhappy
experience - causing you to lose future customers.
20
PROCESS OF CRM
Customer Relationship Management (CRM) is the process of bringing the
customer and the company closer together. There are many different areas in
which Customer Relationship Management can be implemented. The goal of
CRM is to help a company maintain current customers, as well as gain new
customers.
CONSUMER BEHAVIOR
21
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
22
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 betterknown 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. Both groups were told that they could
pick the same snack as many times as they wished. Those in the first group tended
to select the same snack all three times, whereas most in the second group
selected three different snacks.
23
Weakness
Large scale of operations sometimes acts as a barrier to personalized customer
relations
24
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 `valuefor-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
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Threats:
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.
26
20
NO
CANT SAY
27
25
20
15
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
NOT HELPING
28
RUDE
20
18
16
14
12
10
8
6
4
2
0
Result:
From the above table it is clear that customer are satisfied with the attitude of the
shoppers .Out of 30 customer all 18 customer are satisfied.
3. How would you rate the Shopper Assistants behavior on the scale of
five?
5
10
4 14
3 05
3
2 1 2
29
1 00
1
Series 1
16
14
12
10
8
6
4
2
0
Series 1
Result:
Out of 30 customer, 10 customer have given the 5 marks
To shopper. Assistant behavior while 14 has given 4 marks & 5 has given 3 marks
20
NO 8
CANT SAY
30
Series 1
25
20
15
10
YES
NO
CAN'T SAY
Series 1
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.
TRANSPORTATION FACILITY
18
31
DELIVERY SERVICES
20
18
16
14
12
10
8
6
4
2
0
18
7
Cr.Facility
Tr.Facility
Dl.facility
Result:
SOMETIMES
32
NEVER
20
15
10
18
9
3
Result:
7. Do you think that Big-Bazaar follow the ethical Mktg. Practices like
right pricing, right quality and right quantity?
YES
25
NO
CANT SAY
33
30
25
20
15
25
10
5
5
0
Yes
No
0
Can'tsay
Result:
Out of 30 customer, 25 customers have told that Big Bazaar following the
ethical marketing practices.
20
QUALITY
10
34
10
20
PRICE
QUALITY
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.
GOOD
18
WORST 0
35
SO-SO 3
BAD
20
15
10
5
18
9
3
Result:
Out of 30 customers, 9 customers said that Food Bazaar theme is excellent
while 18 customers said that it is good & 3 customers said that it is ok.
RETAILOR SURVEY
10. What is the most important criteria of selection for their Store Assistant
and Store Manager?
1
Pleasing Personality
Good Communication
36
Team Work
10
Series 1
12
10
8
6
4
2
0
Series 1
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.
11. Do you display all the entire stock on the rack or some amount is kept
for contingence? (Inventory availability)
Applicable to all product 14
Only to FMCG
37
Series 1
16
14
12
10
8
6
4
2
0
Only to FMCG
Series 1
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.
Price 2
Customer preference 12
38
Product visibility 4
Series 1
14
12
10
8
6
4
2
0
Brand
Price
Customer perference
Product Visibility
Series 1
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.
13. What is the preference order for promotional activity to create customer
awareness?
Newspaper
10
Radio jingle
39
Advertising
Banner
12
10
8
6
4
2
0
Result:
Out of 20 retailer, 10 has told that they use Newspaper as their main tool for
promotional.
Loyalties benefit
40
Customer
10
Series 1
12
10
8
6
4
2
0
No. of repeat purchase database
Loyalties benefit
Customer
Series 1
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
With customer
41
interaction of manager 3
Series 1
14
12
10
8
6
4
2
0
Series 1
Result:
Out of 20 retailer, 12 have told that analyzing the customer satisfaction
through the feedback of customer.
42
FINDINGS
In this survey the findings are given below:
43
1. Most of the stores are targeting almost all the segments of the society with their
USP being Price benefit
2. All the stores are in Prime Location.
3. Every Big Bazaar outlet have motivated and trained sales force.
4. Large variety of products are available ranging from clothes, food items,
electronic goods etc.
5. Staff is provided constant training for various peculiarities of customer behavior.
6. Some of them offer discount sales and also send greetings to its loyal customers.
7. Not much difference in the Layout of the floor designs in the various branches.
They try to maintain a similarity to maintain comfort levels of customers.
8. These stores maintain Word of Mouth.
9. Customers are satisfied with the provided services.
10. International shopping experiences can be achieved from these stores.
RECOMMENDATION
a. 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
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CONCLUSION
Customer Service is a critical factor for keeping your clients coming back and ensuring
theyll refer you to others.
45
1: Growing your business will be a difficult task at best if you dont perform, meet
and exceed your clients expectations, and provide service that creates customers for
life.
2: Customer service is all about the customers 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 youve done it hundreds, maybe
thousands of times before, do you take the time to organize and prepare to make it the
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6: Committing to the Little Things: Dont 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.
Price
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Packaging
Cost of goods
Product Design
Business Expenses
Assortment
Gross Margin
Services
Profit
Promotion
Distribution
Advertising
Logistics
Personal Selling
Store Location
Sales Promotion
Site Evaluation
Public Relations
Transportation
Visual Merchandising
Storage of goods
They seem to follow this to the core for effective Customer reach and encourage
customer loyalty.
48
ANNEXURES
NO
CAN'T SAY
NOT HELPING
49
RUDE
3. How would you rate the shopper assistant`s behaviour on the scale of
five?
1
NO
CANT SAY
delivery services
sometimes
never
7. Do you think that Food-bazaar follow the ethical Mkgt. practices like
right pricing, right quality and right quantity?
Yes
no
can`t say
50
Price
quality
good
so-so
bad
NAME...........................
ADRESS..............
1. What is the important criteria of selection for their store assistant and
store manager?
Pleasing personality
good communication
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team work
2. Do you display all the entire stock on the rack or some amount is kept
for contingence?
Applicable to all product
only to fmcg
3. Rate the following options as per your priorities while deciding the
layout for store?
Security
computerization
parking
air-condition
price
customer performance
product visibility
radio jingle
advertising
banner
localities benefit
customer database
52
BIBLIOGRAPHY
www.indiainfoline.com
www.google.com
53
www.businessline.com
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