MMSO Project Final

8/3/2019 MMSO Project Final

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BIG BAZAAR

Presented by :

Deepesh BelwalRicha Sharma

Satyabrata Rath

Siddhartha Basu

Umang Dubey


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STRUCTURE OF BIG BAZAAR

Store manager

HRDepartment

manager

Food itemsGeneral

merchandiseWarehouse

Non fooditems(Personaland home care)

CashingCustomer

Service desk

Marketingdivision

Finance andaccounting

Facilities andAdministration


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SERVICE BLUE PRINT FOR BIG BAZAAR


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SEGMENTATION:

Big Bazaar targets higher and upper middle

class customers.

The large and growing young working

population is a preferred customer segment.

Big Bazaar specifically targets working women

and home makers who are the primary decision

makers.


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TARGET SEGMENT:

the Big Bazaar targets itself directly at theaverage Indian's love of following the crowdand scrambling for a good discount.


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POSITIONING

With a slogan of "Is se sasta aur accha kahinnahi!"("Nowhere cheaper or better thanthis!"), they try them self to position as one

stop shop for every thing.


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Positioning

10

Organizational &

Customer Value Matrix


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FOOD BAZAAR CUSTOMER BASE

Consumers always look for extra benefits(Perceived or actual) for the purchase they make and this concept is utilized by the Food Bazaar

Value Chain Retail format to achieve higher sales .

One timePurchaser(Devil

Customer)

Looking for extra benefit: usually seen during sale.Wants value for every rupee invested : Points out nitty-gritty issuesDifficult to satisfy with the offers

Doesnt require personal assistance

Repeat purchase

Occasionally shops and interested more in the offers and discountShops less argues more :Voices dissatisfaction openly but still comes back for more offers. Difficult to handle but can be converted into loyal customers.

Time Consuming

Loyal Customer

Neighborhood residents Aware of the schemes and regularly visit the placeLooks out for extra benefit like loyalty cards, total purchase discount ,points out dissatisfaction in a systematic manner. Happy to Shop usually comes back for more offers and discount but want extra benefits for loyalty.Offer suggestions for improvement and correction..Resistant to change.


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THE CUSTOMER EXPECTATION PYRAMIDAccording to the paper by Chu and Pike on Customer strategy in retail chain(2002 the

most important aspect for a retail chain customer was in-store experience and staff

assistance whereas marketing and communication(promotion) had little impact on thecustomer satisfaction so accordingly we designed our feedback form to incorporate the

values customer feel most important:

Customer Overall experience

In store Experience

Music

Lighting

Temperature

Cleanliness

Facilities management

Ease of moving

Around Ease of finding a

trolley

Checkout Counter

Staff Support

Courteousness

Knowledge andefficiency

Presentation

Cashier Interaction

Cashier speed

Product

Range Prices

Quality

Availability

Communication andmarketing

Ease of finding aproduct


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IN-STORE EXPERIENCEThe organized retail format has changed the way people shop today. Not only has it provided the ease of

access and availability of product and service , the concentration is on the customers in store experience

which cannot be provided in an unorganized retail via Delightful Music, Lively display and Lighting,

Sanitation and hygiene and Ambience.

Analysis: The results show that around 73% of the respondents are highly satisfied with the overall store

experience and consider lighting of the store (Visibility)to be relatively better to other parameters.

The overall customer responses shows high level of satisfaction among all the attributes measured.

0

20

40

60

80

100

120

140

160

180

music temperature lighting cleanliness

bad

ok

good

73%

13%

14%

0%

Overall In Store Experience

Highly satisfied SatisfiedDissatisfied Highly dissatisfied


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In a customer oriented business, the personal interaction between the seller and customer

plays an important role in the purchase decision thus several attributes of the staff

involved in the process is considered to influence the customer. In food bazaar, thecustomer mainly interacts with staffs at three departments:

Department Function

Product Purchase department Product Knowledge and SP personality

Cashing counter Billing time and interaction

Checkout counter(CSD and security) Query handling and delivery

0

20

40

6080

100

120

140

160

180

good

bad

Ok

We can conclude that the

customers are mostly satisfied with

the support staff and ranked the

services good with little scope of

improvement required in the area

of staff courteousness and product

knowledge area and also certain

training should be provided to the

selling staffs in order to improve

them over the cashier rating.

Staff Support


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MARKETING AND FACILITIES MANAGEMENTStore management is very important so that the overall process can take place smoothly providinga good experience to the customer. As part of the instore marketing various displays,signage(department location) and product display are put up which help the easy navigation to the

customer. Again, facilities like trolley as a the shopping cart which is facilitated by spaciousmoving area around the floor is provided.

Misutilisation of space is a crime in a retail store so proper usage of the space is essential toprovide benefit to the outlet as well as customer.

So, the feedback provided would help us find solution to optimally utilize the floor space andprovide more convenience for browsing the store for a satisfactory shopping experience.

Majority of respondents

are happy about the

product display and floor

movement area

The facility of trolley isalso very efficient

Some issues in navigation

for some customer maybe

due to peak hour shopping0

20

40

60

80

100

120

Ease of moving

around in the store -

Navigation

Ease of finding a

product - Product

Displays

Ease of finding a

trolley/basket

okbad

good


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THE PRODUCT The most important factor which attracts the customer is the product

portfolio provided by the store. The customer are attracted to a storebecause of the one stop shopping solution which Food bazaar providesthrough its various food and non food categories.

In spite of the easy accessibility it is very essential to provide anuncompromising product with the following feature: Large Portfolio

Quality and Standard maintained

Availability of the Product in the catalogue

Value for money

0

20

40

60

80

100

120

140

Range Prices Quality Availability

PERCEIVED PRODUCT VALUE

ok

bad

good

As seen the customer are

satisfied by the overall featureand benefit provided by the

product but certain

inefficiency has been

observed on the following

points:

Quality of product notmaintained

Prices perceived to be

inflated

Low replacement rate

causing unavailability of Fast

Moving product.


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CUSTOMER REASONS OF DEFLECTION

As already mentioned the switching cost of customer in a retail outlet is very lessand it is important to minimize the instances which can possibly lead to deflectionof customer. It is unavoidable that certain situations arise where the customers arelikely to be irritated but it is important to mitigate those inefficiencies and develop aflawless system of operation.

As observed in food bazaar a lot of customer query and cases of issuance of creditnote and cash refund(special cases) has been confronted which needs to be handledat the points it arises so that the customers are prompted to come back later happily.

19%

19%

4%8%

18%

14%

18%

Department wise classification of

issue

chefzone chill station farm fresh GM

home care personal care staples

10% 6%

2%

12%

1%69%

Customer Issue

barcode issue Billing error

damage and defective discount not given

dislike customer change of mind


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7PS OF SERVICE MARKETING MIX


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PRODUCT MIX

APPARELS Formal wear

Casual wear

Night wear

T-shirt

Jeans

Sarees

Dress

materials

Ethnic wears

Party wear

FOOD

Ready to eat

Ready to cook

Spices Staples

International

foods

Tea & Cofee

HOME

&

PERSONAL

CARE

Shampoo

Detergent

Soap Liquid Wash

Creams

Deodorants

Home Cleaners

Utensils

Crockery

CHILL

STATIO

NS

Soft drink

Packaged juice

Milk Items

Frozen foods

Ice creams


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PRODUCT MIX (CONTD..)

ELEC

TRONICS

BAZAAR

Television

sets

Washing

Machines

Refrigerator

Personal

Care

mBazaar

Microwaves

Small

Appliances

Laptops

Computer

Accessories

Kitchen

Appliances

FASH

ION

&

JEW

ELLERY

Footwear

Bazaar Beauty

Care Navara

StarParivar Meena

Bindre

FURNITURE

BAZAAR

LivingRoom

Bed Room Kitchen Dinning

Rooms

KidsRoom Paintings Decorative

Items

OTHERSSERVICES

Mr. right Bakery Loot Mart Tulsi Future

Money Future

Generali


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PRICE

PRICING OBJECTIVE: Maximum Market Share Value Pricing (EDLP - Every Day Low Pricing) Promotional Pricing

LOW INTEREST FINANCING PSYCHOLOGICAL DISCOUNTING SPECIAL EVENT PRICING (Festive Offers)

Differentiated Pricing TIME PRICING

Bundling


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PSYCHOLOGICALPRICINGBUNDLING

TIME PRICING22

LOW-INTERESTFINANCING


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Known Presence

Present in almost all the major Indian cities

Place

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Saal ke sabse saste 3 din Wednesday Sabse sasta din Future Card (3% Discount) Shakti Card (Women) Advertising (Print Ads, TV Ads, Radio, Hoardings) Brand Endorsement Exchange Offer Junk Swap Offer Point-of-Purchase Promotions

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Promotion


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Coupon Discount, more of theproducts at normal price, gift withpurchase, competitions and prizes,money back offers and exchangeoffers, special occasions.

Below theline

Promotion

Giving advertisement in news

papers, TV, Internet, (own websitewhich gives online shoppingservices)

Partnership with Bigflix, Big FM92.7

Above theline

Promotion

Promotion (contd..)

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Makes for a customer-friendly atmosphere Employs close to 10,000 people and recruits nearly 500 peopleevery month Well-dressed staff Use of technology like scenario planning for decision making Staff at store to keep baggage Security guards at every gate

People

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Multiple counters Trolleys to carry the items purchased Proper display / posters of the placeOnline Purchasing/Order tracking

Process

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It deals with the final deliverable or the display of written facts.This includes the current system and available facilities.

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Physical Evidence


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STAFF SUPPORT

Department Function

Product Purchase department Product Knowledge and SP personality

Cashing counter Billing time and interaction

Checkout counter(CSD and security) Query handling and delivery

In a customer oriented business, the personal interaction betweenthe seller and customer plays an important role in the purchasedecision thus several attributes of the staff involved in the processis considered to influence the customer. In food bazaar, thecustomer mainly interacts with staffs at three department.


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Strengths Weakness

Opportunities Threats

SWOT


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Strengths One stop shop Benefit of early entry into the retail industry Cheap goods as no middleman Diversified business Better understanding of customers Provide perceived value to price sensitive customer. Standardized product


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Weaknesses Negative connotation of positioning strategy(inexpensive

perceived as cheap) Maintenance of low customer turnover is difficult(Extraneous variable) Sub standard Quality of goodsOpportunities Increased in working class(high disposable income) Paucity of time(work schedule) leading to one serviceprovider Increase in lifestyle and shift of shopping location(Neighborhood to malls


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Threats Low switching cost Heavy inflow of similar format store(inversecompetition) Supply and demand constraints Reducing Margin


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CRM INITIATIVES:

Membership cards Special discounts for regular customer Order on telephone Quick delivery Order tracking facilities online Customer care very efficiently Genuine products with warranty Free Shipping Convenient Payment Options

7 Days Delivery Guarantee Easy Returns, replacements and exchange facilities Gift vouchers.


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Documents

MMSO Project Final