CRM in RetailCase Study : Big Bazaar

SIBM–Pune - EPGDBM2010-11 .

Subject :Customer Relationship Management.Presented By :

Abhijit Malankar ( Roll - AV 102 )Email - abhiam1@gmail.com

Type Hypermarket

Founded 2001

Headquarters Jogeshwari, Mumbai

Industry Retail

Products Department, Grocery store

Promoter Kishore Biyani

Parent Pantaloon Retail India Ltd.

Punchline ‘Is se sasta aur accha kahin nahin’

HIERARCHY

FUTURE GROUP

CAPITAL BRANDS SPACE RETAILS

LIFE STYLES RETAILING

VALUE RETAILING VENTURE

FASHION STATION

MEDIA LOGISTICS

One stop shopping at discounted prices.Provides Best Products at the Best Prices.Targets price conscious majority segment

of customers. Some Competitive Slogans : • Keep West-aSide. Make a smart choice!• Shoppers! Stop. Make a smart choice!• Change Your Lifestyle. Make a smart

choice!

MARKETING MIX‘7 P’s ANALYSIS’

DENIMS &-T shirts

Fabrics & CutPiece

Formal Wear

Casual Wear

Party Wear

Ethnic Wear

Accesories

Undergarments

Night Wear

DressMaterial

Sarees

Shampoos

Detergents

Soaps

Liquid Wash

Creams

Deodrants

HomeCleaners

Utensils

Plastics

Crockery

Sundries

Soft Drinks

PackagedJuices

Milk Items

Frozen Food

Ice creams

Staples

Ready to eat

Ready toCook

InternationalFood

Spices

ImportedBazaar

Tea & Coffee

Fruits

Vegetables

ImportedFruits

DairyProducts

PRODUCT MIXAPPARELS FOOD FARM PRODUCE CHILL STATION

HOME & PERSONAL CARE

TelevisionSets

WashingMachines

Refrigerators

Personal Care (Shavers, etc)

mBazaar

Microwaves

SmallAppliances

Laptops

ComputerAccessories

KitchenAppliances

mr. right

Bakery

Loot Mart

Tulsi

future money

futuregeneralli

Kids Wear

Toy Bazaar

Stationery

Child Care

FootwearBazaar

Beauty Care

Navaras

Star Parivar

MeenaBindre

Living Room

Bed Room

Kitchen

Dining Hall

Kids Room

Bean Bags

Paintings

DecorativeItems

PRODUCT MIXELECTRONICS

bazaar Fashion &

JewelleryFurniture

bazaar Child Care &

Toys Other Services

IN HOUSE BRANDS @ BIG BAZAAR

DJ & C CLEAN MATE SENSEI

KORYO FRESH & PURE CARE MATE

BRANDS @ BIG BAZAAR

PRICING OBJECTIVE - MAXIMUM MARKET

SHAREPrice is the critical point in a competitive industry. Big Bazaar works on a low cost model. It considers its discounted price as its USP. There is an average discount of 7-8% on all items in respect to their MRP. Prices of products are low because it is able to secure stock directly from the manufacturer. There are huge synergies in terms of bulk purchasing, central warehousing and transportation. These all factors help this retailer to keep low prices.

PRICINGVALUE PRICING PROMOTIONAL PRICING

- LOW INTEREST FINANCING - PSYCHOLOGICAL DISCOUNTING

- SPECIAL EVENT / FESTIVAL PRICING

DIFFERENTIATED PRICING- TIME PRICING

BUNDLING

TIME PRICING

LOW-INTEREST FINANCING

PSYCHOLOGICAL PRICING

BUNDLING

  MRP Brand

Atta 10kg 240 185 Shakti Bhog

Rice 10kg 210 210 Parimal

Dal 5kg 225 225 Moong

Sugar 5kg 95 94.05 Renuka*

Tea 500g 54 53.46 Red Label

Coffee 50g 68 68 Nescafe

Refine Oil 10ltr 860 759 Dhara

Ghee 2kg 400 330 Fresh n Pure*

Salt 2kg 20 19.98 Tata Salt

Soap 6pc 114 99 Cinthol

Shampoo 400ml 199 179 Garnier

Toothpaste 300g 79 74 Colgate

Detergent   110   69 Clean Mate*

Detergent Soap 4   40   39.96 Surf Excel Bar 

Bathroom Cleaner 2 100    50 Clean Mate* 

Bourntiva 500g 124 115 Bournvita

 Total 2688 2409.51  Save 276.51

DISCOUNT - PRICING

PLACE – Store Locations covers all major metros in India and growing

- SUPPLY CHAIN BIG BAZAAR

Supplier

Warehouse

Inspection

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Inspection

SUPPLY CHAIN – BIG BAZAAR

SOME PROMOTIONS‘Saal ke sabse saste 3 din’, 26 Jan ,

15 Aug , Diwali etc . Future Card (3% Discount) , Shakti

Card Tata Docomo – Free Talktime – On

Purchase limit of Rs.1000 Advertising (Print Ads, TV Ads, Radio)Brand Endorsement by M.S.Dhoni ,

Asin . ‘Junk’ swap offer-“Exchange anything

old for something new”Point-of-Purchase Promotions , Time

based limited offers Tying up with IPL - targeting sports

lovers

Some of the Key offers:- A Dish TV SetTop Box at Rs 999/-

(original cost Rs 3500/-) on a shopping of Rs 3500/-

- 5 Kg Rice + 5 Kg Sugar + 5 Kg Oil for RS 599/-.

- Branded Microwave 17 ltrs at Rs 1999/-.

- Branded DVD Player + Home theater at Rs 2999/-.

- Magnum Queen Metal Bed with mattress and 2 pillows of Rs.12000/- at Rs.5999/-.

- Nirlon Fry Pan @Rs.569/-. Get Tawa,Kadai & Gas Toaster free

Faida Zone

INTERNATIONAL FOOD FESTIVAL

BILLBOARDS

SOCIAL RESPONSIBILITY

CUSTOMER DEMO S / FEEDBACK

NEW DIRECT ADVERTISING CONCEPTS.

PEOPLEWell Trained StaffProfessional and Uniformed

AppearanceEmpowered IndividualsEncouraged to Think Out Of

The Box while servicing customers

Uniformed Security Guards placed at all Entry / Exit points

All counters are manned for full operational timeof the stores

Entire store connected by PBX and central voice systems for faster communications between all operational floors .

PROCESS

PROCESS Contd..

PHYSICAL MARKINGS FOR BETTER INFORMATION TO CUSTOMERS.

SWOT ANALYSIS

Strength- High Brand Equity- State-of-art infrastructure- PoP promotions- Variety of stuff under single roof at competitive prices

Weakness- Unable to meet store opening targets- Falling revenue/sq. ft.

Opportunity- Organized retail- Evolving consumer preferences

Threat- Competitors – Local and International- Government policies- Unorganized retail

TARGET AUDIENCE

•Big Bazaar targets middle and upper middle class customers

•The large and growing young working population is its preferred customer segment

•Targets specifically as customers - children ,working women and home makers who are mostly the primary decision makers

Maintaining Customer Database

• The rise of loyalty programs, mail order and the Internet has provided retailers with real access to consumer data. Data warehousing and mining technologies offers retailers the tools they need to make sense of their consumer data and apply it to business.

• For Big Bazzaar , one of the way of maintaining the Customer Database is by issuing of Loyalty cards which are called as - Future Cards

- Types of Future cards • Silver Card• Gold Card• Shakti card

Customer Profitability Analysis (CPA)

Customers classified into four types • Platinum Customers• Gold Customers• Iron Customers• Lead Customers

Differentiating customers in terms of:• Their needs• Their value to the company

Types of Analysis for CRM

• Periodic Surveys• Customer Loss Rate• Analysis of Mystery Shoppers• Monitor Competitive Performance

Complaint Handling Procedure

• Screening and Logging• Investigating• Acknowledging• Formulating a solution• Responding• Following Up

• Big Bazaar needs to focus more on Customer Relationship Management {CRM} and improved in-store assistance (Building loyal customers base and developing a more profitable – loyalty cycle).• Customer Care Centre to guide and counsel about customer loyalty programs. • Training must be provided to sales personnel not only of managing there own counters but for other functions also. Job rotation and training will enhance their knowledge, job profile and further boost the morale of employees to effectively perform their duties and responsibilities.

RECOMMENDATIONS

• Exchange offers must be made more simpler as the consumers are often not clear about how to use them.• Seating arrangements and child amusement areas can be made available for customers.• Customers usually face problem in billing their

purchased goods. Waiting in long queues forces them to leave certain products midway thereby causing loss of sale to Big Bazaar. So billing counters must be increased and employees at the billing should be given training so that they could bill the products in more efficient fashion in much lesser time.

RECOMMENDATIONS

• Employess at the billing stations should have the information about the special offers and the events that are being conducted at the store so they commit lesser mistakes.

• One solution can be that employees can be made wireless billing terminals available so they can generate bill for the customers anywhere in the store rather than only at the exit terminals so as to make the exits less crowded .

• Care to be taken to maintain proper inventory levels and the varieties at all times and offer the customer what is needed rather than offering what is available.

RECOMMENDATIONS

• Stress Buster Exercises can be organized for employees during evenings in sessions as employees have to stand all throughout the day.

• Offer Home Delivery at a charge below certain billing limit and free of cost above certain billing limit.

• Offer easy credit facility for frequent customers. • Offer discounts to frequent customers.

RECOMMENDATIONS

Conclusion

• Customer often says “I won’t complain. I just won’t Come Back”

• Being on par in terms of Price and Quality only gets you into the Game. Service wins the Game.

• Treat your Customer, just like you expect to be treated when you are a Customer.

Happy Shopping…

Thank you!