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CHAPTER I - INTRODUCTION
1.1 Meaning of Marketing
Marketing is "the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value for customers,
clients, partners, and society at large."
Marketing is a management process or social process or an effective communication
through which goods and services move from concept to the customer and companies
create value for customers and build strong customer relationships in order to capture
value from customers in return, and also identifying, anticipating and satisfying
customer requirements profitably. It includes the coordination of four elements called
the 4 P's of marketing:
(1) Identification, selection and development of a product,
(2) Determination of its price,
(3) Selection of a distribution channel to reach the customer's place, and
(4) Development and implementation of a promotional strategy.
For business to consumer marketing, it is "the process by which companies create
value for customers and build strong customer relationships, in order to capture value
from customers in return". For business to business marketing it is creating value,
solutions, and relationships either short term or long term with a company or brand. It
generates the strategy that underlies sales techniques, business communication, and
business developments. It is an integrated process through which companies build
strong customer relationships and create value for their customers and for themselves.
Marketing is used to identify the customer, satisfy the customer, and keep the
customer. With the customer as the focus of its activities, marketing management is
one of the major components of business management. Marketing evolved to meet the
stasis in developing new markets caused by mature markets and overcapacities in the
last 2-3 centuries. The adoption of marketing strategies requires businesses to shift
their focus from production to the perceived needs and wants of their customers as the
means of staying profitable.
As a philosophy, marketing is based on thinking about the business in terms of
customer needs and their satisfaction. Marketing differs from selling because (in the
words of Harvard Business School's emeritus professor of marketing Theodore C.
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Levitt) "Selling concerns itself with the tricks and techniques of getting people to
exchange their cash for your product. It is not concerned with the values that the
exchange is all about. And it does not, as marketing invariably does, view the entire
business process as consisting of a tightly integrated effort to discover, create, arouse,
and satisfy customer needs."
There is even more confusion about what constitutes "marketing." Marketing entails
several functions that include:
• Developing the products or services that customers want.
• Pricing the products or services correctly.
• Making the products or services readily available to the customers.
• And finally: Promoting the product or service, which if done correctly, not
only convinces customers that the product or service is preferable to its
competition, but that it is clearly the only choice. This is the field of marketing
"communications" and of all the marketing components, it is the one most
likely to be outsourced and the one most likely to be neglected if a company is
making a profit.
1.2. Importance of marketing
1. Marketing communications creates "top of mind" awareness
All you have to do is watch TV for a few hours (and actually watch the commercials)
to get a sense of how repetition of the same message starts to creep into your
subconscious mind. After you've seen 5 commercials for those cute, new VW's, you
suddenly find yourself daydreaming about going car shopping. After all, that
Suburban IS almost 8 years old, and of course you want a vehicle that's more fuel
efficient I know this isn't a manufacturing or industrial scenario, but trust me - the
same underlying psychological phenomenon occurs in the case of industrial
marketing. An integrated marketing communications plan that gets your messaging
out to the right target audience, consistently and over time, WILL eventually create
the "top of mind" awareness for your product or service that turns a prospect into a
customer. Recognition and awareness for your company also make it much easier for
your sales staff to get someone on the phone or schedule an appointment. Companies
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like to do business with companies they "know" and have positive perceptions of.
Likewise, investors like to buy recognized companies.
2. Preferred brands command a premium price - short and long-term
Go through a process of determining your company's unique value proposition, and
then start purposefully communicating that to the marketplace (promotion.) This is
the only way you will create a point of differentiation between you and your
competitors. As your customers and the industries you sell to begin to recognize your
company (brand) as the preferred choice for a certain product or service, it allows you
to charge premium pricing. Not only does this boost sales in the "now," it creates a
perception in the minds of future investors that your business has more value than
another one that claims to do the same thing.
3. Happy customers not only send referrals, they create perceived value
Every sales person knows it, but businesses still hammer him or her to get out and
develop "new" business: the most powerful form of lead generation comes in the form
of an existing happy customer. Happy customers talk to other potential customers,
even in the industrial world. I talk to manufacturers every day that tell me a good
percentage of their new business comes through referrals from satisfied customers. It
takes more than the experiences with your company to make a satisfied customer -
one who is willing to be an evangelist, of sorts. It also takes a marketing strategy that
positions your company (in the minds of your target audience) as the market leader in
overall customer satisfaction and intimacy. It's part of the image you build around
your brand - it's the magic result of well-executed brand development and marketing
communications. Word of mouth praise for your company not only attracts more
business; it attracts potential investors that want to own a company with this kind of
status.
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4. Planned marketing communications create a system that can be replicated
I have clients that have their marketing communications planning and implementation
down to a science. A meeting in the Fall determines the focus for the following year's
Marcomm initiatives. Budgets are allocated; tactics agreed upon; responsibilities
delegated; and contracts negotiated. The result is continued momentum in building
brand awareness and credibility, and a rather flawless execution. This process is one
that can be documented and taught like a system. In any manufacturing or industrial
service company, documented processes lend to the overall impression of the
business' stability and value. If a potential buyer can see how they too could operate
the systems within your company, even after you are long gone, you'll be creating a
more marketable asset. If you need to, hire an expert: but start creating and
documenting a marketing communications system that you can teach others to run
and remove yourself from the lead generation game.
5. Repeat revenue streams ensure a profit now and later
This really falls more into the other marketing functions than that of communications,
but a smart marketing strategy not only focuses on a company's core market and value
proposition, it also finds ways to build multiple channels for recurring revenue. Smart
marketers (and business owners) look for ways to diversify their offerings and
especially in areas where repeat sales require little to no effort on the part of the sales
team. With the Internet, this is more possible than ever before; particularly if you sell
a product that is not custom engineered, or a service that can be easily classified
without a lot of customization. Recurring revenue, generated from an effective
marketing strategy, and teamed with a stellar customer service approach is a
combination that is very attractive to a potential new owner.
6. Nothing lasts forever: marketing has to be a long-term investment
Here in Houston, where I live, getting into the "good ole' boy network" was the way
an industrial business succeeded in the last half of the 20'th century. Today's upper
management is not concerned with who you know and what clubs you belong to.
They want to know how you're going to help them meet their objectives and solve
their problems. Relationships developed over time will get you so far; but what about
the increase in career moves and job-hopping? What happens when the person you
developed a relationship with moves to another company and isn't in a position to
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specify what you sell? What happens when the person you developed a relationship
with retires and is replaced with someone much younger? What happens when YOU
are ready to retire? Will there be someone there who can step into your shoes and
carry your company through that transition without losing customers?
The way to prevent a negative outcome in any of these scenarios is a consistent
marketing communications program. If you're keeping your company's name out
there and building brand identity and recognition, you have less of an educational
process to deal with every time a new person is introduced to your business. This also
comes into play with young people just entering the work force.
The senior engineer at your top customer may love your product; the new hot shot
engineer fresh out of college doesn't know anything about it - UNLESS they've
already been exposed to it through Professors, the Internet, trade publications, trade
shows, etc. Consistent and persistent messaging, going to an integrated mix of contact
points with your customers and prospects, is an investment in your company's long-
term stability and value.
7. Employees who are "brand ambassadors" sell your company - to customers
AND potential buyers
Today, marketing is not just something you do "outside" of your company. If you
truly want to create a powerful image and value proposition for your business, the
first groups of people you have to convince are your own employees. Internal brand
integration is just as important as your external marketing strategies. Every employee
in your company should understand how their position contributes to the promise
your company makes to its customers and be motivated to carry it out. Understanding
their unique role in your company's brand promise is just the beginning; if you want
brand ambassadors, you need happy employees. An employee that feels appreciated
and fairly compensated (and that doesn't always equate to their salary) is much more
likely to sing the praises of your company. I think it goes without saying, this is good
for business today as well as making an impression on a future investor.
Who wants to buy a company full of overworked, disgruntled employees?
Marketing IS a long-term investment. You will not create a recognizable brand
(name, image, reputation, etc.) without it. You will not develop a stable, growing
business without it. You will not beat the "lead generation" game without it. You will
not create "brand ambassadors" among your employees without it. You will not create
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a company that has obvious value to a potential buyer without it. Marketing is
essential to the health and continuing prosperity of any business - including
manufacturing and industrial businesses. So what are you waiting for?
1.3. Retail Industry in India
The Retail bazaar in India is booming beyond everyone’s expectation. The Indian
Retail sector has caught the world’s imagination in the last few years. India’s retail
growth was largely driven by increasing disposable incomes, favorable demographics,
changing lifestyles, growth of the middle class segment and a high potential for
penetration into urban and rural markets. The organized retail sector accounts for 5 %
which is expected to grow to 10 % by the end of 2011. A number of large corporate
houses like Aditya Birla, Bharti, Reliance,Pantaloons, Vishal ,Tata Retail, RPG,
Raheja's and Piramals's have diversified to add retail to their sector portfolio. This
study revolves around the opportunities and challenges faced by organized retail
players in India. It was found that organized retailers see competition from the
unorganized sector as their biggest challenge, followed by competition between
organized retailers and the inefficiency of distribution channels, internal logistical
problem and retail shrinkage.
India is one of the largest emerging markets, with a population of over one billion. It
is one of the largest economies in the world in terms of purchasing power. Retailing
in India is at a nascent stage of its evolution, but within a small period of time certain
trends are clearly emerging which are in line with the global experiences. Organized
retailing has become more popular in big cities in India and most of the metropolitan
cities and modern organized retail stores flood other big cities. Many semirural areas
have also witnessed entry of such organized retail outlets. India's retail sector is
estimated to touch US$ 833 billion by 2013 and US$ 1.3 trillion by 2018, with a
compound annual growth rate (CAGR) of 10%, which is quite lucrative. Retailing as
a whole contributes almost 10% of India’s GDP, and employs almost 8% of India’s
employable population. The organized sector accounts for a mere 5 per cent
indicating a huge potential market opportunity that is lying in the waiting for the
consumer-savvy organized retailer. Purchasing power of Indian urban consumer is
growing and branded merchandise in categories like Apparels, Cosmetics, Shoes,
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Watches, Beverages, Food and even Jewellery are slowly becoming lifestyle products
that are widely accepted by the urban Indian consumer.
Organized retailing is witnessing a wave of players entering the industry. These
players are experimenting with various retail formats. A number of large corporate
houses like Aditya, Bharti, Reliance, Future Group (Big Bazaar), Vishal, Tata's, RPG,
Raheja's and Piramals's have already made their foray into this arena, with beauty and
health stores, supermarket. Organized retail chains comprise only 3% of the Indian
market. Rest 97% market is comprised of momand – pop type shops. Now the number
of organized retail stores is gradually increasing. According to ETIG (Economic
Times Intelligence Group), the size of the organized retail industry was about Rs. 160
billion in 2001-02. In 2005 budget Government has allowed 26% Foreign Direct
footwear, furniture and furnishing, catering services, jewellery and watches, books,
music and gifts, mobile handsets and others. Investment (FDI) in the retail sector.
Organized retailing is on continuous increase of its market share from the past.
Retailing can be categorized as of different sectors like food and groceries, clothing
and textiles, consumer durables, footwear, furniture and furnishing, catering services,
jewellery and watches, books, music and gifts, mobile handsets and others, self-
service music stores, new age book stores, everyday low price stores, computers and
peripherals stores, office equipment stores and home/building construction stores.
Today organized players have attacked every retail category.
EVOLUTION OF RETAIL MARKETS
Retailing goes back to centuries; it started as a very primitive business but today has
grown tremendously. First people were doing businesses with their neighbors. Goods
were exchanged between them. Gradually people began to collect themselves to a
given neighborhood, which provides a geographical place to do the exchange. This
not only increases the exposure of a given good but also helps a lot towards the
development of a more formalized system. Gradually, a few more start to get together
to a place that in turn creates a need for a common place. Later this common place
was called a fair. With the passing of time the number of people doing businesses in a
given fair increased, issues like security, transportation becomes a matter of concern.
This semi-formalized system then gave birth to small-scale groceries, where people
start to provide more combinations in their own neighborhoods. Then came the issue
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of choice in given grocery, the choices the customer had was limited, this was the
beginning of the concept of “everything under one roof”. As time passes, joint family
changes into nuclear family. There too both members started earning which resulted
into a new way of lifestyle. From then instead of mom-and-pop type of stores
organized retail stores came into existence. Based on the
ICICI Research, the Indian Retail Market evolution can be traced in the following
way:
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CHAPTER 2: Analysis
Company profile Big Bazaar is a chain of hypermarket in India. As of June 2, 2012 there are 214 stores
across 90 cities and towns in India covering around 16 million sq.ft. Of retail space.
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 is part of Future Group, which also owns the Central Hypermarket, Brand
Factory, Pantaloons, eZONE, HomeTown, futurebazaar.com, KB's Fair Price to name
a few and is owned through a wholly owned subsidiary of Pantaloons Retail India
Limited, that is listed on Indian stock exchanges.
History
Big Bazaar was launched in September 2001 with the opening of its first four stores in
Calcutta, Indore, Bangalore and Hyderabad in 22 days. Within a span of ten years,
there are now 161
Big Bazaar stores in 90 cities and towns across India.
Big Bazaar was started by Kishore Biyani, the Group CEO and Managing Director of
Pantaloon Retail
India. Though Big Bazaar was launched purely as a fashion format including apparel,
cosmetics, accessory and general merchandise, over the years Big Bazaar has
included a wide range of products and service offerings under their retail chain. The
current formats includes Big Bazaar, Food Bazaar,
Electronic Bazaar and Furniture Bazaar. The inspiration behind this entire retail
format was from Saravana Stores, a local store in T. Nagar, Chennai
The stores are customized to provide the feel of mandis and melas while offering the
modern retail features like Quality, Choice and Convenience. As the modern Indian
family's favorite retail store, Big Bazaar is popularly known as the "Indian Wal-
Mart".
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On successful completion of ten years in Indian retail industry, in 2011, Big Bazaar
has come up a new logo with a new tag line: ‘Naye India Ka Bazaar’, replacing the
earlier one: 'Isse Sasta Aur Accha Kahin Nahin'.
Lines of Business of the Above Store · E-tailing
· Food
· Fashion
· Home Solution
· General Merchandise
· Leisure and Entertainment
· Wellness and Beauty
· Books and Music
· Footwear
· Electronics
· Children Accessories
· Crockery.
Operations Most Big Bazaar stores are multi-level and are located in stand-alone buildings in city
centers as well as within shopping malls. These stores offer over 200,000 SKUs in a
wide range of categories led primarily by fashion and food products.
Food Bazaar, a supermarket format was incorporated within Big Bazaar in 2002 and
is now present within every Big Bazaar as well as in independent locations. A typical
Big Bazaar is spread across around 50,000 square feet (4,600 m2) of retail space.
While the larger metropolises have Big Bazaar
Family centers measuring between 75,000 square feet (7,000 m2) and 160,000 square
feet (15,000 m2),
Big Bazaar Express stores in smaller towns measure around 30,000 square feet (2,800
m2).
Big Bazaar has the facility to purchase products online through its official web page,
and offers free shipping on some of their products
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2.2. Time Line 2001
§ Three Big Bazaar stores launched within a span of 22 days in Kolkata, Bangalore
and Hyderabad.
2002
§ Big Bazaar - ICICI Bank Card is launched.
§ Food Bazaar becomes part of Big Bazaar with the launch of the first store in
Mumbai at High Street Phoenix
2003
§ Big Bazaar enters Tier II cities with the launch of the store in Nagpur
§ Big Bazaar welcomes its 10 million-th customer at its new store in Gurgaon.
2004
§ Big Bazaar wins its first award and national recognition. Big Bazaar and Food
Bazaar awarded the country’s most admired retailer award in value retailing and food
retailing segment at the India Retail Forum
§ A day before Diwali, the store at Lower Parel becomes the first to touch Rs 10
million turnover on a single day
2005
§ Initiates the implementation of SAP and pilots a RFID project at its central
warehouse in Tarapur
§ launches a unique shopping program: the Big Bazaar Exchange Offer, inviting
customers to exchange household junk at Big Bazaar
§ Electronic Bazaar and Furniture Bazaar are launched
§ Big Bazaar and ICICI Bank launched ICICI Bank-Big Bazaar Gold credit card
program to reward its loyal customers.
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2006
§ Mohan Jadhav sets a national record at Big Bazaar Sangli with a Rs 1,37,367
shopping bill. The Sangli farmer becomes Big Bazaar’s largest ever customer.
§ Big Bazaar launches Shakti, India’s first credit card program tailored for housewives
§ Navaras – the jewellery store launched within Big Bazaar stores
2007
§ The 50th Big Bazaar store is launched in Kanpur
§ Big Bazaar partners with Futurebazaar.com to launch India's most popular shopping
portal
§ Big Bazaar initiates the "Power of One" campaign to help raise funds for the Save
The Children IndiaFund
§ Pantaloon Retail wins the International Retailer of the Year at US-based National
Retail Federation convention in New York and Emerging Retailer of the Year award
at the World Retail Congress held in Barcelona.
2008
§ Big Bazaar becomes the fastest growing hypermarket format in the world with the
launch of its 101st store within 7 years of launch
§ Big Bazaar dons a new look with a fresh new section, Fashion @ Big Bazaar
§ Big Bazaar joins the league of India’s Business Super brands. It is voted among the
top ten service brands in the country in the latest Pitch-IMRB international survey
§ Big Bazaar initiated the Mega Saving "Monthly Bachat Bazaar" campaign, to
provide exceptional deals on groceries and food items during the first week of every
month.
2009
§ Big Bazaar opens its second store in Assam at Tinsukia
§ Big Bazaar initiates Maha Annasantarpane program at its stores in South India – a
unique initiative to offer meals to visitors and support local social organizations
§ Big Bazaar captures almost one-third share in food and grocery products sold
through modern retail in India
§ Mahendra Singh Dhoni and Asin, youth icons of India, were chosen as the brand
ambassadors of Big Bazaar
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§ Big Bazaar announced the launch of 'The Great Exchange Offer'
§ Formed a joint venture with Hidesign to launch Holii, a new brand of handbags,
laptop bags and other accessories.
2010
§ Future Value Retail Limited is formed as a specialized subsidiary to spearhead the
group’s value retail business through Big Bazaar, Food Bazaar and other formats.
§ Big Bazaar wins CNBC Awaaz Consumer Awards for the third consecutive year.
Adjudged the Most Preferred Multi Brand Food & Beverage Chain, Most Preferred
Multi Brand Retail Outlet and Most Preferred Multi Brand One Stop Shop
§ Big Bazaar connects over 30,000 small and medium Indian manufacturers and
entrepreneurs with around 200 million customers visiting its stores
§ Big Bazaar opens its third store in Kanpur at Z Square Mall
§ Big Bazaar opens its fourth store in Kanpur at Jajmau, which is the largest leather
tannery garrison of Asia
§ Vidya Balan was chosen as the brand ambassador of Big Bazaar's Price Challenge
exercise
§ Ranked 6 among the Top 50 Service Brands in India.
2011
§ Big Bazaar forays into the rural wholesale and distribution business through
‘Aadhaar Wholesale’ store at Kalol, Gujarat.
§ Big Bazaar has come up a new logo with a new tag line: ‘Naye India Ka Bazaar’.
§ 200th store opened in India
§ Future Group has launched its latest venture, Foodhall – a premium food destination
across 10 metros in India
§ For the convenience of the online customers, Big Bazaar has started free shipping on
all orders above Rs. 1000
§ Entered into an agreement with Hindustan Unilever to co-develop and co-brand
bakery products, which would be sold exclusively at Big Bazaar stores.
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2012
§ Big Bazaar entered into a five year multi-million dollar deal with Cognizant
Technology Solutions for IT infrastructure services that support Future Group's
network of stores, warehouses, offices, and data centers.
§ Partnered with Disney to launch "Kidz Cookies", exclusively for kids across India.
§ Big Bazaar is planning to add further value to its retail services by offering Value
added services like grinding, de-seeding, vegetables cutting at free of cost.
2.3. Marketing Mix of Big Bazaar
Product: Big Bazaar offers a wide range of products which range from apparels, food, farm
products, furniture, child care, toys, etc of various brands like Levis, Allen Solly,
Pepsi, Coca- Cola, HUL, ITC, P&G, LG, Samsung, Nokia, HP etc.
Big Bazaar also promotes a number of in house brands like:
• DJ & C
• Tasty Treat
• Clean Mate
• Sensei
• Care Mate
• Koryo and 44 other brands.
Pricing: The pricing objective at Big Bazaar is to get “Maximum Market Share”. Pricing at
Big Bazaar is based on the following techniques:
· Value Pricing (EDLP – Every Day Low pricing): Big Bazaar promises consumers
the lowest available price without coupon clipping, waiting for discount promotions,
or comparison shopping.
· Promotional Pricing: Big Bazaar offers financing at low interest rate. The concept of
psychological discounting (Rs. 99, Rs. 49, etc.) is also used to attract customers. Big
Bazaar also caters on Special Event Pricing (Close to Diwali, Gudi Padva, and Durga
Pooja).
· Differentiated Pricing: Differentiated pricing i.e. difference in rate based on peak
and non-peak hours or days of shopping is also a pricing technique used in Indian
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retail, which is aggressively used by Big Bazaar.
e.g. Wednesday Bazaar.
Bundling: It refers to selling combo-packs and offering discount to customers. The
combo-packs add value to customer and lead to increased sales. Big Bazaar lays a lot
of importance on bundling.
e.g. 3 Good Day family packs at Rs 60(Price of 1 pack = Rs 22) 5kg oil + 5kg rice +
5kg sugar for Rs 599.
Place: The Big Bazaar stores are operational across three formats — hypermarkets spread
over 40,000-45,000 sq ft, the Express format over 15,000-20,000 sq ft and the Super
Centers set up over 1 lakh sq ft.
Currently Big Bazaar operates in over 34 cities and towns across India with 116
stores. Apart from the Metros these stores are also doing well in the tier II cities.
These stores are normally located in high traffic areas. Big Bazaar aims at starting
stores in developing areas to take an early advantage before the real estate value
booms. Mr. Biyani is planning to invest around Rs 350 crore over the next one year
expansion of Big Bazaar. In order to gain a competitive advantage Big Bazaar has
also launched a website www.futurebazaar.com, which helps customers to orders
products online which will be delivered to their doorstep. This helps in saving a lot of
time of its customers.
Promotion: The various promotion schemes used at Big Bazaar include:
· “Saal ke sabse saste 3 din”
· Hafte ka sabse sasta din “Wednesday bazaar”
· Exchange Offers “Junk swap offer”
· Future card(3% discount)
· Shakti card
· Advertisement (print ad, TV ad, radio)
· Brand endorsement by M.S Dhoni and Asin
· Big Bazaar has come up with 3 catchy lines written on hoardings taking on biggies
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like Westside,
Shoppers stop and Lifestyle. They are:
· “Keep West- aSide. Make a smart choice!”
· “Shoppers! Stop. Make a smart choice!”
· “Change your Lifestyle. Make a smart choice!”
People: · Well trained staff at stores to help people with their purchases
· Employ close to 10,000 people and employ around 500 more per month.
· Well-dressed staff improves the overall appearance of store.
· Use scenario planning as a tool for quick decision making multiple counters for
payment, staff at store to keep baggage and security guards at every gate, makes for a
customer-friendly atmosphere.
Process: Big Bazaar places a lot of importance on the process right from the purchase to the
delivery of goods. When customers enter the stores they can add the products they
which to purchase in their trolley from the racks. There are multiple counters where
bill can be generated for purchases made. Big Bazaar also provides delivery of
products over purchases of Rs. 1000.
Physical Evidence: Products in Big Bazaar are properly stacked in appropriate racks. There are different
departments in the store, which display similar kind of products. Throughout the store
there are boards/written displays put up which help in identifying the location of a
product. Moreover boards are put up above the products which give information about
the products, its price and offers. Big Bazaar stores are normally ‘U shaped’ and well
planned & designed.
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2.4. PROMOTION ACTIVITIES OF FOOB BAZAAR:
Wednesday Bazaar:
Big Bazaar introduced the Wednesday Bazaar concept and promoted it as “Hafte Ka
Sabse Sasta Din”. It was mainly to draw customers to the stores on Wednesdays,
when least number of customers are observed. According to the chain, the aim of the
concept is "to give homemakers the power to save the most and even the stores in the
city don a fresh look to make customers feel that it is their day".
Sabse Sasta Din:
With a desire to achieve sales of Rs 26 Crore in a one single day, Big Bazaar
introduced the concept of "Sabse Sasta Din". The idea was to simply create a day in a
year that truly belonged to Big Bazaar. This was launched on January 26, 2006 and
the result was exceptional that police had to come in to control the mammoth crowd.
The concept was such a huge hit that the offer was increased from one day to three
days in 2009 (24 to 26 Jan) and to five days in 2011 (22-26 Jan).
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Maha Bachat:
Maha Bachat was started off in 2006 as a single day campaign with attractive
promotional offers across all Big Bazaar stores. Over the years it has grown into a 6
days biannual campaign. It has attractive offers in all its value formats such as Big
Bazaar, Food Bazaar, Electronic Bazaar and Furniture Bazaar - catering to the entire
needs of a consumer.
The Great Exchange Offer:
On February 12, 2009 Big Bazaar launched "The Great Exchange Offer", through
with the customers can exchange their old goods in for Big Bazaar coupons. Later,
consumers can redeem these coupons for brand new goods across the nation.
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CHAPTER 3 - CRM ACTIVITIES
3.1. Loyalty Programs of Big Bazaar’s (A Step Towards Customers
Satisfaction)
Pay-back Card
At Future Group Big Bazaar, we believe in building long-lasting relationships with
customers. We encourage repeat customer visits through our unique offers and special
sale days. Future Group has taken the whole concept of customer loyalty to the next
level by joining hands with PAYBACK. PAYBACK is India’s largest and one of
Europe’s most successful multi-partner loyalty programs. With PAYBACK,
customers can shop, save and get rewarded. This program enables consumers to
collect millions of points across online and offline partners – with just a single card.
Customers can accumulate points across Future Group formats , thereby making
“shopping rewarding”.
Our formats Big Bazaar, Food Bazaar, Pantaloons, Central, Home Town, eZone,
Brand Factory and Future Bazaar are a part of the PAYBACK Loyalty program.
Some Basic Information About Payback and Payback Card: 1.What is PAYBACK?
a. PAYBACK is a unique loyalty program that lets you earn points for the daily
activities you do, like refueling, traveling, shopping, eating out, watching movies,
flying etc.
b. You can earn points by swiping your PAYBACK card at the time of payment with
our participating partners be it cash, cheque, credit or debit card.
c. Points earned can be redeemed against fabulous rewards from the PAYBACK
rewards catalogue or at PAYBACK’s various in-store/retail store partners and online
partners.
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2. What are the benefits of PAYBACK?
a. PAYBACK is a multi partner rewards program where several merchants have come
together to reward the customers for their continued relationship.
b. It has a huge network of partners at national, regional and local levels.
c. Members can accumulate points at a faster rate irrespective of their payment mode
– cash, credit/debit card, or cheques across all the enrolled partners.
d. PAYBACK points earned by a member across the various partners in the network
get accumulated under the same membership account thus ensuring the member
accumulates points at a faster pace
e. Accumulated points can be redeemed against an extensive reward catalogue with a
variety of rewards to choose from. The points can also be used as a payment option at
many PAYBACK partners.
T24 Program T24 will provide customers with a dual advantage all 24 hours of the day—‘Shop
More, Talk More’ and ‘Talk More, Shop More’.
Shopping and talking on our mobile phones are among the two favorite activities for
all of us in India.
With T24, we have been able to develop a unique customer value proposition that
combines these interests of the aspirational Indian. Customers will get shopping
benefits for talking and talk-time benefits each time they shop.
We believe that with our partners, Tata Teleservices Limited, we have been able to
develop a differentiated offering in the crowded telecom space and also increase the
loyalty we enjoy among the millions of customers who patronize our stores.
T24 (Talk 24) tariff plans reflect the competitive per-second rates being offered for
pre-paid customers on Tata Teleservices Limited’s GSM network. In addition,
customers will be rewarded with free talk time for every purchase at Future Group
Stores starting at Rs.10 to a maximum of Rs.350. Plans will keep evolving to offer
ever-more attractive options to the customer.
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Marketing Strategies Analysis of Big Bazaar 3-C Theory
According to Kishore Biyani's 3-C theory, Change and Confidence among the entire
population is leading to rise in Consumption, through better employment and income,
which in turn is creating value to the agricultural products across the country. Big
Bazaar has divided India into three segments:
1. India one: Consuming class, which includes upper middle and lower middle class
(14% of India's population).
2. India two: Serving class, which includes people like drivers, household helps,
office peons, liftmen, washer men, etc. (55% of India's population) and
3. India three: Struggling class (remaining 31% of India's population).
While Big Bazaar is targeted at the population across India one and India two
segments, Aadhaar Wholesale is aimed at reaching the population in India three
segment. With this, Group emerged as a retail destination for consumers across all
classes in the Indian society.
TARGET AUDIENCE
* Big Bazaar targets higher and upper middle class & middle class customers.
* The large and growing young working population is a preferred customer segment.
* Targets specifically workingwomen and homemakers who are the primary decision
makers.
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BIG BAZAAR-USP
* Low price as compared to other places.
* Schemes like Buy 1 gets 1 free, 20% discount etc.
* 1 Billion Population.
* Availability of Liquid Cash/Disposable Income among Young Generation.
* Affordable man power.
* Craze, Passion among Mr. Customer (Consumer).
* Different products under one roof.
SPECIAL STRATEGIES
* To minimize Retailing cost.
* Operating: Fewer staff on the floor-one person for every 500 sq ft.
* Minimize the Furniture cost.
* Saving Shelf Space.
* Way to deal unsold stock off.
* “Today’s Price”: Everyday a chosen product is being sold at lower than usual price.
Advertising: The essential of brand building process
Advertising is an essential component of brand building. The advertisement and brand
building is done through various ways, the techniques used are:-
Tag line:
Big Bazaar tag lines are the key components of advertising. These tag lines are
modified according to demographic profile of customers. These catchphrases
appeared hoardings and newspapers in every city where Big Bazaar was launched.
Everybody understood and connected easily with these simple one-liners. The catch
liners includes “Hindi- Chane ke bhaw kaaju”, “Bengali-Rui er dame illish”, “Hindi-
Stall ke bhaw balcony” etc.
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Print Ads:
Big Bazaar news paper advertisements are present just before launch of any new
scheme. This creates aura about the Big Bazaar brand in the minds of customer.
TV Ads:
Kishore Biyani spends a lot amount of money in brand building exercise. Big Bazaar
commercials are shown on various channels in India. Presently, Fashion @Big Bazaar
commercial is aired.
Roadside advertisements:
Big Bazaar billboards are displayed on prime location in various cities as a brand
building exercise. They display the catchphrases and now days.
Radio Ads:
This technique is used at cities like Sangli (tier 1 / tier 2 cities).Now a days it is
replaced by advertisements on FM channels. This informs customers about the all
new happenings at Big Bazaar.
Fashion shows:
“FASHION @ BIG BAZAAR - Desh Badla, Bhesh Badlo” is the latest invention of
the Indian iconic brand. In an effort to take the Fashion to the masses, Big Bazaar, the
flagship hypermarket brand of retail chain of Future Group,organized a three-day
Fashion Show on the streets of Bandra, Mumbai.Brand Endorsement by celebrity: Big
Bazaar is always associated with celebrities for advertising and marketing of its
Brand-name. Brand Ambassador and Indian cricket ODI Captain Mahendra Singh
Dhoni star the current campaign. Earlier Himesh Reshammiya and Sanath Jaisuriya
were associated with BigBazaar.
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CUSTOMER SATISFACTION Satisfaction is an overall psychological state that reflects the evaluation of a
relationship between the customer/consumer and a company-environment-product-
service. Satisfaction involves one of the following three psychological elements:
cognitive (thinking/evaluation), affective (emotional/feeling), and behavioral.
"Satisfaction" itself can refer to a number of different facts of the relationship with a
customer. For example, it can refer to any or all of the following:
• Satisfaction with the quality of a particular product or service
• Satisfaction with an ongoing business relationship
• Satisfaction with the price-performance ratio of a product or service
• Satisfaction because a product/service met or exceeded the customer's
expectations
The achievement of customer satisfaction leads to company loyalty and product
repurchase. There are some important implications of this definition:
• Because customer satisfaction is a subjective, non-quantitative state,
measurement won't be exact and will require sampling and statistical analysis.
• Customer satisfaction measurement must be undertaken with an understanding
of the gap between customer expectations and attribute performance
perceptions.
• There should be some connection between customer satisfaction measurement
and bottom-line results.
Customer satisfaction is influenced by perceived quality of product and service
attributes, features and benefits, and is moderated by customer expectations regarding
the product or service. Each of these constructs that influence customer satisfaction
need to be defined by the researcher.
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Expectations are beliefs (likelihood or probability) that a product/service (containing
certain attributes, features or characteristics) will produce certain outcomes (benefits-
values) given certain anticipated levels of performance based on previous affective,
cognitive, and behavioral experiences. Expectations are often seen as related to
satisfaction and can be measured as follows:
1. IMPORTANCE: Value of the product/service fulfilling the expectation.
2. OVERALL AFFECT—SATISFACTION EXPECTATIONS: Like / Dislike of the
product/service.
3. FULFILLMENT OF EXPECTATIONS: The expected level of performance vs. the
desired expectations. This is “Predictive Fulfillment” and is a respondent-specific
index of the performance level necessary to satisfy.
4. EXPECTED VALUE FROM USE: Satisfaction is often determined by the
frequency of use. If a product/service is not used as often as expected, the result may
not be as satisfying as anticipated. For example a motorcycle that sits in the garage, an
unused year subscription to the local fitness center/gym, or a little used season pass to
a ski resort would produce more dissatisfaction with the decision to purchase than
with the actual product/service.
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CHAPTER 4 – Conclusion
4.1. Disadvantages
1. Store layout: The store layout and the assortment of goods is not the best at Big
Bazaar, as the quantity of goods sold is more the arrangement and assortment of
goods in the store is the greatest. Hence at times customers find it hard to find what
they require, this leads to dissatisfaction of customers.
2. Lower quality of goods: As Big bazaar aims more toward the middle income group,
the quality of goods is not of the highest quality, and this is sometimes a disadvantage
as some would prefer better quality to the price, making customers to search for
different places.
3. Does not appeal to the elite: As mentioned above, the main customers are middle
income and a few high income groups, The elite do not like to shop at Big Bazaar as
the quality of goods is lower and they would prefer a higher price and get a better
brand, this decreases sales from the elite class
4. Not acclaimed for very good service: Big Bazaar is not known for high class
service. The staff recruited is not very well trained and the billing queues take a long
time to move, this irritates customers which makes them visit the store more seldom
5. Lower quality of goods: As the store is trying to concentrate on the middle income
group the type of products used is not of the most superior quality and most of the
times nor branded, this may dissatisfy certain customers
6. Consumer satisfaction: Long queues and lower quality leads to dissatisfaction of
customers. Due to factors mentioned above Big Bazaar shoppers are not always
satisfied, this is not a positive for the store.
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Conclusions for Marketing Strategies of BB
• To increase the footfall of the store during the weekday.
• Customers are more attracted towards Discount Schemes & Sales.
• Various Product lines also attract customers to choose there retails stores.
• Entertainment units & Kids zone should be provided in Retail stores in order
to cater more customers.
• The after sales service of retail stores should be helpful & effective. This after
sales service creates loyal customers.
• Major steps should be taken to stop shoplifting in retail stores, as it is one of
the problematic characters for leading & large size retails stores.
• The retail stores should provide various kinds of loyalty rights in order to
provide more customers.
Recommendations for Marketing Strategies of BB
• Retail Stores should focus more on Store Ambience, Store Space & Selling
Areas.
• All the Retails Formats should have an effective Loyalty Program.
• More focus on Direct Marketing should be given in order to attract more &
more customers.
• Better after sales service & customer service should be provided in order to
make customers loyal.
• To manage proper proportion of Convenience, Staple & Impulse goods.
• Along with SMS the retails formats should use more innovative ways to alert
customers.
• The Retail store should replenish the goods on time (before the stock ends).
• A proper proportion of Private & National Brands should be kept in Retail
stores.
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BIBLIOGRAPGHY
• www.slideshare.net
• www.managementparadise.com
• www.roehampton.ac.uk
• www.AllAnalytics.com
• www.futuregroup.in
• http://en.wikipedia.org
• www.cci.in/pdf/surveys_reports/indias_retail_sector.pdf
• articles.economictimes.indiatimes.com
• www.rai.net.in/
