1

EXECUTIVE SUMMARY

From the last one decade the Indian Retail sector has been undergoing a number of changes. Retailing has created a buzz and there is a big difference in the consumer buying behaviour. With the continuous evolving retail markets and the dynamic changes in the consumer tastes and lifestyle, Big Bazaar has created a great competition to other retail outlets. Among the leading Retail Outlets, Big Bazaar is one of them providing great offers and discounts to customers. But still Big Bazaar has many competitors and this project is a study to know the Competitors Strategy from the Customers so that Big Bazaar can withstand the competition and serve the Customers in a better way.

STATEMENT OF THE PROBLEM TITLE OF THE STUDY The research problem selected for the project is entitled as Customer satisfaction and effectiveness of promotional activities carried out at Big Bazaar OBJECTIVES OF THE STUDY: To find out the effectiveness of promotional activities carried out at big bazaar. To find out which promotional activity is the most effective. To find out the awareness of customers towards promotional activities carried out by big bazaar. To know the customer satisfaction. To find out the Competitors Strategy from Customers. To know the expectations of Customers from Big Bazaar. To get the suggestions from Customers to improve the services provided by Big Bazaar. SCOPE OF THE STUDY The scope of the study covers in knowing whether the promotional activities carried out by Big Bazaar are effective or not. The study also tells whether the Customer is satisfied with the services provided by Big Bazaar. Overall the study tells the problems in Big Bazaar and how to attract customers towards Big Bazaar to withstand the competition.

METHODOLOGY (a) Type of Research Design This Research is conducted for the sample size of 200 customers to know the effectiveness of promotional activities carried out by Big Bazaar and the respondents were from all age group which is chosen randomly. Hence it is a Descriptive Research. (b) Data (Primary Data and Secondary Data) Primary Data was collected through survey method choosing the respondents randomly. A Questionnaire was used to collect the data as the population covered was large in number. It consisted of open ended questions, multiple choice questions, Likert Scale and dichotomous (yes/no) questions. (c) Secondary Data was collected from the Internet, Company Magazines.

Research Instrument The Instrument used for the research is Questionnaire because the

population covered was large in number. The Questionnaire is a StructuredUndisguised type of Questionnaire. (d) Sampling Design Sample Unit: The research was made from the customers visiting Big Bazaar. Sample Size: The Sample Size chosen for this research is 200 customers from all age group. The customers filled the Questionnaire themselves and were assisted and explained questions where they had difficulty in understanding. Sample Technique: The respondents (customers) were chosen through Random Sampling Technique. LIMITATIONS OF THE STUDY 4

Since everything is available in Big Bazaar it was difficult to get Questionnaires filled from customers for all product categories. There was very less time so it was quite difficult to get Questionnaires filled in Home Needs, Electronics and Furniture section. In Depth study was not possible due to time constraint. Customers could not spare much time while filling the Questionnaire.

CHAPTER 1
6

INDUSTRY PROFILE

RETAIL INDUSTRY
7

Retailing involves all activities incidental to selling to ultimate consumer for their personnel family and household use. It does this by organizing their availability on a relatively large scale and supplying them to customers on a relatively small scale. Retailer is any person/organization instrumental in reaching the goods or merchandise or services to the end users. Retailer is a must and cannot be eliminated. The Indian retailing industry is becoming intensely competitive, as more and more players are targeting for the same set of customers. The major retail players are Pantaloon Retail, Shoppers Stop, Reliance, etc. Retailing is one of the biggest sectors and it is witnessing revolution in India. The new entrant in retailing in India signifies the beginning of retail revolution. India's retail market is expected to grow tremendously in next few years. According to AT Kearney, The Windows of Opportunity shows that Retailing in India was at opening stage in 1995 and now it is in growth stage in 2009. India's retail market is expected to grow tremendously in next few years. Retail market is expected to grow 10% a year, with modern retailing just beginning. This window of opportunity is useful for executives who plan their market-specific strategies;

1.1 The four stages or the lifecycle of retail industry are as follows:
Introduction:
An introduction is the opening phase of a market and is one that is just entering Global Retail Development Index (GRDI). This index is based on more than 25 macroeconomic and retail specific variables for instance, the country risk includes parameters like political risk, economic risk, performance risk, financial risk and business risk. The market attractiveness covers retail sales per capita, urban population, laws and regulations and business efficiency. At this stage, retailers should monitor and performing high-level assessments, they should plan for their entry strategies. India in the late 1990's is a good example in the opening stage, while in 2007; Kazakhstan was the country in introduction stage. Strategy suggested: A rapid penetration strategy is suggested at this stage that is low price and high promotion.

Growth:
In growth stage, the market is developing quickly and also ready for modern retailing. Countries, which are in Peaking stage such as India. Retailers entering this stage have the best chance for long-term success. Retailers at this stage should enter through local representations, sourcing offices and new stores. Strategy suggested: The strategy of adopting quality and styled products with new models and shift of advertising from product awareness to product preference .The idea behind adopting this strategy is to strengthen against competitors.

Maturity:
In this stage the market is still big and growing, but the space for new entrants will become tighter and retailers should act quickly at this stage because retailers at this stage have limited time to explore, and also their margin for error is thin. In general, they should act according to the established rules and should be open to face the competition from international retailers. This stage generally lasts longer than the previous two stages. Strategy suggested: Enter new market segments that is either enter new geographic areas or introduce new and innovative products and offers.

Decline:
The window of opportunity is closing fast and modern retail share is reaching 40 to 60 percent. Though the opportunity is closing the existing retailers can enter with new formats such as discount models or non-food formats such as consumer electronics and apparel. Window of opportunity ends for about 5 to 10years before a market enters the closing phase and reaches saturation level. India for example, was in the opening stage in 1995 and entered peaking stage in the year 2003 and reached number 1 rank in2005. Strategy suggested: Identifying weak segments, maintaining investment level selectively.

Unorganized retailing in India:

In India, the most of the retail sector is unorganized. In India, the retail business contributes around 11 percent of GDP. Of this, the organized retail sector accounts only for about 3 percent share, and the remaining share is contributed by the unorganized sector which is mostly a family owned business in India. The main challenge facing the organized sector is the competition from unorganized sector. Unorganized retailing has been there in India for centuries, theses are named as mom-pop stores. The main advantage in unorganized retailing is consumer familiarity that runs from generation to generation. It is a low cost structure; they are mostly operated by owners, has very low real estate and labour costs and has low taxes to pay. 10

Organized retailing in India:

In late 1990's the retail sector has witnessed a level of transformation. Retailing is being perceived as a beginner and as an attractive commercial business for organized business i.e. the pure retailer is starting to emerge now. Organized retail business in india is small but will grow faster. Organized retailing will grow faster than unorganized sector and the growth speed will be responsible for its high market share, which is expected to be $ 17 billion by 2010-11. Retailing will show good prospects in cities like: Mumbai, Delhi, Chennai, Kolkata, Bangalore and Kanpur. After Dubai, Singapore and Hong Kong, In India Delhi will be the next big retail destination, According to CII whose findings have shown that Delhi has the good resources and good conditions for the retail sector. Out of the total earnings of the Government of Delhi Of Rs 11,000 crore, Rs 6,500 crore is achieved from the retail sector. The organized sector is expected to grow faster than GDP growth in next few years driven by favourable demographic patterns, changing lifestyles, and strong income growth. This organized retail sector mix includes supermarkets, hypermarkets discounted stores and specialty stores, departmental stores.

1.2

Growth

drivers

in

India

for

retail

sector:

Rising incomes and improvements in infrastructure are enlarging consumer markets and accelerating the convergence of consumer tastes. Liberalization of the Indian economy Increase in spending per capita Income. Advent of dual income families also helps in the growth of retail sector. Shift in consumer demand to foreign brands. Consumer preference for shopping in new environs. The Internet revolution is making the Indian consumer more accessible to the growing influences of domestic and foreign retail chains. Reach of satellite T.V. channels is helping in creating awareness about global products for local markets. The increasing share of young population in total population of India. Availability of quality real estate and mall management practices Foreign companies' attraction to India is the billion-plus population. 1.3 EMPLOYMENT OPPORTUNITIES IN INDIAN RETAIL INDUSTRY: 11

India's retail industry is the second largest sector, after agriculture, which provides employment. According to Associated Chambers of Commerce and Industry of India (ASSOCHAM), the retail sector will create 50,000 jobs in next few years. Retail companies are starting retail management courses in partnership with management institutes, roping in talent from other sectors and developing comprehensive career growth and loyalty plans for existing employees. Trent has also started in-house learning programmes and now goes to under graduate colleges to recruit students. Since, the job market is hugely receptive to this with more and more business schools focusing on the sector and large retailers setting up retail academics. 1.4 CHALLENGES OF RETAILING IN INDIA: In India the Retailing industry has a long way to go, and to become a truly flourishing industry, retailing needs to cross the following hurdles:

The first challenge facing the organized retail sector is the competition from unorganized sector. In retail sector, Automatic approval is not allowed for foreign investment. Taxation, which favours small retail businesses. Lack of trained work force. Low skill level for retailing management. Intrinsic complexity of retailing- rapid price changes, threat of product obsolescence and low margins. Organized retail sector has to pay huge taxes, which is negligible for small retail business. Cost of business operations is very high in India. 1.5

SCENARIO OF INDIAN RETAIL INDUSTRY:

12

India retail industry is the largest industry in India, with an employment of around 8% and contributing to over 10% of the country's GDP. Retail industry in India is expected to rise 25% yearly being driven by strong income growth, changing lifestyles, and favorable demographic patterns. It is expected that by 2016 modern retail industry in India will be worth US$ 175200 billion. India retail industry is one of the fastest growing industries with revenue expected in 2007 to amount US$ 320 billion and is increasing at a rate of 5% yearly. A further increase of 7-8% is expected in the industry of retail in India by growth in consumerism in urban areas, rising incomes, and a steep rise in rural consumption. It has further been predicted that the retailing industry in India will amount to US$ 21.5 billion by 2010 from the current size of US$ 7.5 billion. Shopping in India have witnessed a revolution with the change in the consumer buying behavior and the whole format of shopping also altering. Industry of retail in India which have become modern can be seen from the fact that there are multi- stored malls, huge shopping centers, and sprawling complexes which offer food, shopping, and entertainment all under the same roof. India retail industry is expanding itself most aggressively, as a result a great demand for real estate is being created. Indian retailers preferred means of expansion is to expand to other regions and to increase the number of their outlets in a city. It is expected that by 2010, India may have 600 new shopping centers. In the Indian retailing industry, food is the most dominating sector and is growing at a rate of 9% annually. The branded food industry is trying to enter the India retail industry and convert Indian consumers to branded food. Since at present 60% of the Indian grocery basket consists of non- branded items.
The Indian retail market, which is the fifth largest retail destination globally, was ranked second after Vietnam as the most attractive emerging market for investment in the retail sector by

13

AT Kearney's seventh annual Global Retail Development Index (GRDI), in 2008. The share of retail trade in the country's gross domestic product (GDP) was between 810 per cent in 2007. It is currently around 12 per cent, and is likely to reach 22 per cent by 2010. Commercial real estate services company, CB Richard Ellis' findings state that India's retail market is currently valued at US$ 511 billion, and is poised to grow to US$ 833 billion by 2013. The report further stated that organised retail that currently accounts for less than 5 per cent of the total retail market is expected to register a compound annual growth rate (CAGR) of 40 per cent and swell to US$ 107 billion by 2013. According to the recent report by McKinsey & Company titled 'The Great Indian Bazaar, Organized Retail Comes of Age in India', India's overall retail sector is likely to grow to US$ 450 billion by 2015. Another McKinsey report 'The rise of Indian Consumer Market', estimates that the Indian consumer market is likely to grow four times by 2025. In a joint study recently conducted by ASSOCHAM and KPMG, the following findings were revealed:

The total retail market size in India in 2008 was estimated at US$ 353 billion. The annual growth of the retail market in India is expected to be around 8 per cent. The total retail market size in India is likely to touch US$ 416 billion by 2010. The present share of organised retail sector is estimated at 7 per cent. The estimated annual growth of organised retail sector is 40 per cent. The size of organised retail sector by 2010 is estimated to reach US$ 51 billion. The estimated share of organised retail in total retail by 2010 is 12 per cent. The investment into modern retailing formats over the coming 4-5 years is expected to be around US$ 25-30 billion. The great Indian consumer market is still going strong. The ETIG analysis carried out by the Economic Times revealed that most mass consumer goods and service in India were not much affected by the global economic slowdown. Despite the inflation experienced during the period, the second-quarter results of leading 70 consumer-related firms revealed that their aggregate revenues increased by 8.5 per cent during the September 2008 quarter over the same period in 2007. Even though this was a tad lower than the 9 per cent growth posted during the first 14

quarter of 2008-09, it was a lot higher than the 7 per cent registered during the previous three quarters for these firms.

Growth Continues Apace

Despite the global economic slowdown, Indian retailers are still optimistic about the India growth story. Speaking on the issue, Mr Tarun Joshi, CEO and MD of Brandhouse Retails said Fashion retail has not been impacted in a big way. Not even 0.5 per cent of the working population has been hit in India. The Indian economy is more stable than other economies across the world and one must not confuse India with the rest of the world, reiterated Mr Sandeep Kulhalli, V-P, Retail and Marketing, Tanishq. With the 30-40 per cent drop in retail rentals, Indian retailers are a happy lot. In fact, retailers are also foreseeing further drops in rentals in 2009 and they are optimistic about their expansion plans for this year. Retailers such as Spencer's Retail, Future Group, Shoppers Stop, Westside, Wills Lifestyle, Bata India, and Raymond, have plenty of expansion plans for 2009.

The Future Group will focus on launching private labels with high profit margins in segments like toothpaste, shampoo, and butter amongst others. According to Kishore Biyani, MD and CEO of the Future Group, "Another thrust area will be entering into new segments like rural retail and telecom products distribution. Through 'Aadhar' we can ramp up rural retail, which is outside the 20 per cent of the population we have been targeting so far."

Aggressive marketing efforts by leading retailers are on. Tanishq is planning a marketing effort for plain gold along with the World Gold Council during the last quarter of 2008-09. Similarly, Brandhouse Retails is planning a joint venture with a European private apparel label for the next financial year, along with the introduction of a few more international brands.

In West Bengal, leading retailers like the Future Group and Spencer's Retail, are expanding and upgrading their present stores in 2009. Others like Wills Lifestyle, Turtle Ltd, and Bisk Farm, are planning to set up new stores, particularly in the suburbs. 15

Auto Company Mahindra & Mahindra (M&M) has made a quiet foray into the retail sector with the soft launch of its specialty format Mom & Me to sell infant care and maternity products. The company has launched two outlets in Ludhiana and Ahmedabad.

India has one of the largest numbers of retail outlets in the world. A report by Images Retail estimates the number of operational malls to grow more than two-fold, to cross 412, with 205 million square feet by 2010, and a further 715 malls to be added by 2015, with major retail developments even in tier-II and tier-III cities in India. Even as the organised retail market is starting to take off, there is an associated surge in branded discount outlets in India. Top realtors and local retail chains are developing malls in regional boroughs, specifically to sell premium branded goods.

16

CHAPTER 2
17

COMPANY PROFILE

18

2.1

ORGANISATION STRUCTURE

BUSINESS MANAGER
( Mr. Venkateshwara)

OPERATIONS AREA BUSINESS MANAGER

CATEGORY MARKETING COMMERCIAL

KERALA KARNATAKA

GM

APPARRELS

NON GM HR ADMINISTRATION

TAMIL NADU ANDHRA PRADESH

19

Hierarchy of Pantaloon (Future Group)

Mr. Kishore Biyani, Managing Director Mr. Gopikishan Biyani, Wholetime Director Mr. Rakesh Biyani, Wholetime Director Mr. Ved Prakash Arya, Director Mr. Shailesh Haribhakti, Independent Director Mr. S Doreswamy, Independent Director Dr. D O Koshy, Independent Director Ms. Anju Poddar, Independent Director Ms. Bala Deshpande, Independent Director Mr. Anil Harish, Independent Director

20

Rakesh Biyani Anshuman Singh Damodar Mall Hans Udeshi Hemchandra Javeri Kailash Bhatia Madhumati Lele Rajan Malhotra Sadashiv Nayak Sanjeev Aggarwal Vishnu Prasad Kruben Moodliar Mayur Toshniwal Rajesh Joshi Rohit Malhotra Sandeep Marwaha Sanjay Jog Ushir Bhatt Atul Takle Prashant Desai Vinay Shroff

CEO - Retail CEO - Value Fashion CEO - Incubation & Innovation CEO - General Merchandising CEO - Home Solutions Retail (India) Ltd. CEO - Integrated Merchandising Group CEO - Services CEO - Big Bazaar CEO - Food Bazaar CEO Pantaloons CEO - Central & Brand Factory President- Operations (Value Retailing) Head - Operations (North Zone) Head - Operations (West Zone) Head - Operations (South Zone) Head - Operations (East Zone) Head - Human Resources Executive Board Member Head - Corporate Communications Head - Group IR & New Ventures (PE) Head - Supply Chain Management

2.2 COMPANY PROFILE Pantaloon Retail (India) Limited, is Indias leading retailer that operates multiple retail formats in both the value and lifestyle segment of the Indian consumer market. Headquartered in Mumbai (Bombay), the company operates over 12 million square feet of retail space, has over 1000 stores across 71 cities in India and employs over 30,000 people.

21

The companys leading formats include Pantaloons, a chain of fashion outlets, Big Bazaar, a uniquely Indian hypermarket chain, Food Bazaar, a supermarket chain, blends the look, touch and feel of Indian bazaars with aspects of modern retail like choice, convenience and quality and Central, a chain of seamless destination malls. Some of its other formats include Brand Factory, Blue Sky, aLL, Top 10 and Star and Sitara. The company also operates an online portal, futurebazaar.com. A subsidiary company, Home Solutions Retail (India) Limited, operates Home Town, a large-format home solutions store, Collection i, selling home furniture products and eZone focused on catering to the consumer electronics segment. Pantaloon Retail was recently awarded the International Retailer of the Year 2007 by the US-based National Retail Federation (NRF) and the Emerging Market Retailer of the Year 2007 at the World Retail Congress held in Barcelona. Pantaloon Retail is the flagship company of Future Group, a business group catering to the entire Indian consumption space.

2.3 Future Group

Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one of Indias leading business houses with multiple businesses spanning across the consumption space. While retail forms the core business activity of Future Group, group subsidiaries are present in consumer finance, capital, insurance, leisure and 22

entertainment, brand development, retail real estate development, retail media and logistics. Led by its flagship enterprise, Pantaloon Retail, the group operates over 12 million square feet of retail space in 71 cities and towns and 65 rural locations across India. Headquartered in Mumbai (Bombay), Pantaloon Retail employs around 30,000 people and is listed on the Indian stock exchanges. The company follows a multi-format retail strategy that captures almost the entire consumption basket of Indian customers. In the lifestyle segment, the group operates Pantaloons, a fashion retail chain and Central, a chain of seamless malls. In the value segment, its marquee brand, Big Bazaar is a hypermarket format that combines the look, touch and feel of Indian bazaars with the choice and convenience of modern retail. In 2008, Big Bazaar opened its 100th store, marking the fastest ever organic expansion of a hypermarket. The first set of Big Bazaar stores opened in 2001 in Kolkata, Hyderabad and Bangalore. The groups speciality retail formats include, books and music chain, Depot, sportswear retailer, Planet Sports, electronics retailer, Ezone, home improvement chain, Home Town and rural retail chain, Aadhar, among others. It also operates popular shopping portal, future bazaar.com. Future Capital Holdings, the groups financial arm provides investment advisory to assets worth over $1 billion that are being invested in consumer brands and companies, real estate, hotels and logistics. It also operates a consumer finance arm with branches in 150 locations. Other group companies include, Future Generali, the groups insurance venture in partnership with Italys Generali Group, Future Brands, a brand development and IPR company, Future Logistics, providing logistics and distribution solutions to group companies and business partners and Future Media, a retail media initiative.

23

The groups presence in Leisure & Entertainment segment is led through, Mumbaibased listed company Galaxy Entertainment Limited. Galaxy leading leisure chains, Sports Bar and Bowling Co. and family entertainment centres, F123. Through its partner company, Blue Foods the group operates around 100 restaurants and food courts through brands like Bombay Blues, Spaghetti Kitchen, Noodle Bar, The Spoon, Copper Chimney and Gelato. Future Groups joint venture partners include, US-based stationery products retailer, Staples and Middle East-based Axiom Communications. The groups flagship company, Pantaloon Retail was awarded the International Retailer of the Year 2007, by the US-based National Retail Federation, the largest retail trade association and the the Emerging Market Retailer of the Year 2007 at the World Retail Congress in Barcelona. Future Group believes in developing strong insights on Indian consumers and building businesses based on Indian ideas, as espoused in the groups core value of Indianness. The groups corporate credo is, Rewrite rules, Retain values.

2.4 PRODUCT PROFILE

24

FOOD BAZAAR:

25

Food Bazaar sells all kind of food products, fruits and vegetables, non food items like shampoos, soaps, conditioners, cosmetics, hair oils, shaving creams.

FURNITURE BAZAAR:

Furniture Bazaar sells various designs of furniture and sofas at the lowest price and good discounts.

26

Big Bazaar sells their products during all the seasons in all the sections like apparels, utensils, home needs, electronics and furniture. The above picture shows the offers during winter season.

FASHION BAZAAR:
27

Big Bazaar has great collection of brands in apparels section like DJ&C, Knighthood, and Levis Signature with good discounts and great offers. There are good collections of footwear also.

28

29

CHAPTER 3 MY INTERNSHIP AT BIG BAZAAR

THE INTERNSHIP PROFILE

DIVISION:

BIG BAZAAR, PANTALOONS RETAIL INDIA LTD

BUSINESS CONGLOMARATE: LOCATION:

FUTURE GROUP BIG BAZAAR, COIMBATORE.

PROJECT:

EFFECTIVENESS OF PROMOTIONAL ACTIVITES CARRIED OUT BY BIG BAZAAR

MY DESIGNATION: RESPONSIBILITIES

MANAGEMENT TRAINEE FRONTLINE MARKETING OF BIG BAZAAR STORE

30

ACTIVITIES PERFORMED
ASSIGNMENT 1: Promotion of Wednesday bazaar Promotional activities included: o Pamphlet distribution. o Bike rallies in catchment areas. o Instore activities like conducting games & quizzes and also lucky draws for customers. o Regular announcements about various offers at Wednesday bazaar. ASSIGNMENT 2: Study of comparision between big bazaar and spar hypermarkets pricing, quality and service. The activities carried out for this study were: o Focus group discussion of spar customers. o Customer survey of spars customers. ASSIGNMENT 3: Customer satisfaction in big bazaar The activities carried out for this survey were: o Survey through questionnaire. o Personal interaction with customers.

31

32

CHAPTER 4

DATA ANALYSIS & INTERPRETATION

Graph 4.1.1 Indicating profile of customers

a.

Visitors

Interpretation: This graph indicates males are in majority as compared to females but females also visits big bazaar in huge numbers. 33

b.

AGE OF THE CUSTOMERS

Interpretation Majority of customers are from the age group of 18 25. Which indicates that young people prefer Big Bazaar more.

34

c. Profession of Customers

Interpretation Majority of customers are IT professionals this indicates that big bazaar is not only for lower middle class or middle class people now it is also attracting high class and educated people.

35

4.1.2 How important promotional activities are:

Interpretation Majority of customers feels promotional activities are very important where as nobody thinks that it is unimportant which indicates that customers are very much influenced by the promotional activities.

36

4.1.3 Which promotional activities carried out by big bazaar are known to customers.

Interpretation This graph shows that 70% of customers are aware of newspaper advertisement carried out big bazaar which indicates that newspaper is the best source of advertisement.

37

Graph 4.1.4 Rating the promotional activities carried out by Big Bazaar a. Newspaper advertisement

Interpretation Majority of the customers feels that newspaper advertisement is very effective.

38

b. Radio

Interpretation Majority of customers feels that radio advertisement is ineffective and it is not worth a lot to advertise in radio.

39

c. Bike Rally

Interpretation Majority of customers feels that bike rally is ineffective and they are not aware of any bike rally carried out by Big Bazaar.

40

d.

Pamphlet Distribution

Interpretation Majority of customers feels that pamphlet distribution is average which means it is neither that effective nor ineffective.

41

e. Instore activities

Interpretation Majority of customers feels that it is neither effective nor ineffective.

42

Graph 4.1.5 Through which newspaper customers come to know about various offers at Big Bazaar

27%

20% 15% TIMES OF INDIA

42%

ECONOMIC TIMES HINDU DINA MALAR OTHERS

96%

Interpretation This graph shows majority of customers come to know about various offers at big bazaar through The Hindu only.

43

Graph 4.1.6 a. Clarity & understandability of signages

Interpretation Majority of customers are satisfied with the clarity & understandability of signages but still there are lots of customers who are dissatisfied.

44

b. Product display

Interpretation Majority of customers are satisfied with the product display but still there is huge scope of improvement according to customers.

45

c. Regular Announcement of offers

Interpretation Majority of customers are satisfied with the announcements and some of them thing its average and some think its ineffective.

46

d. Arrangement of products

Interpretation Majority of customers are satisfied with the arrangement of products but still some feels it is ineffective.

47

e. Visibility and appeal of the Instore Advertisements

Interpretation Majority of the customers are satisfied and same percentage of customers thinks it is average.

48

4.1.7 Do promotional activities influence customers buying decision

Interpretation: Majority of the customers are influenced by the promotional activities.

49

4.1.8 Are the customers aware of Wednesday bazaar

Interpretation This shows that majority of customers are not aware of Wednesday bazaar which automatically indicates that the promotional activities carried out by big bazaar are not effective.

50

4.1.9 a. Big Bazaar

Interpretation Majority of customers thiks that Big Bazaars promotional activities are very effective and are properly reaching to the customers.

51

b. Star Bazaar

Interpretation Majority of customers were neutral about star bazaar as most of them have not visited star bazaar.

52

c. spar hypermarket

Interpretation Majority of the customers have not visited spar and even they have not seen any advertisement by spar and thats why they are neutral.

53

d. Reliance mart

Interpretation: Majority of customers were neutral and some of them thought that its ineffective.

54

e. Total hypermarket

Interpretation: Majority

55

56

CHAPTER 5

FINDINGS
STATISTICAL FINDINGS: GENERAL FINDINGS RELATED TO CUSTOMERS: 1. 70% of customers are IT professionals. 2. 50% of customers belong to an age group of 18 to 25 years. EFFECTIVENESS OF PROMOTIONAL ACTIVITIES: 1. The Newspaper advertisement is the best source of advertisement for big bazaar as in survey I found almost 70% of customers are aware of the newspaper advertisement conducted by Big Bazaar. 2. The other promotional activities like advertisements through radios are not the effective method of advertising according to our customers and they also are not aware of Bike Rallys carried out by Big Bazaar. 3. 90% of the customers come to know about various offers at big bazaar through Times of India. EFFECTIVENESS OF COMMUNICATION FACTORS IN BIG BAZAAR: 1. Around 45% customers are satisfied with the clarity and understandability of signages. 2. 50% of customers are satisfied with the product display in big bazaar. 3. 45% customers are satisfied with the regular announcement of offers.

57

4. 40% thinks the arrangement of products is done properly where as another 38% thinks the products are not arranged properly. 5. 40% of customers are satisfied with the visibility and appeal of instore activities and others thinks it should be improved. CUSTOMER SATISFACTION: 1. Billing process is very slow at big bazaar. 2. The staff is not customer friendly. 3. The quality of the product is not maintained properly. 4. The offers are not updated regularly. 5. There is a huge problem of MRP mismatch and i.e. because of barcode. 6. The express counters are just for namesake as these are not operated. 7. Sales representative doesnt have good product knowledge.

58

59

CHAPTER 6
SUGGESTIONS & RECOMMENDATIONS
GENERAL SUGGESTIONS: 1. As it is found in study that almost 40% of customers are IT professionals and 35% are students who believes in buying a quality product so, the quality of the products in Big Bazaar should be improved. 2. Almost 50% of customers are in the age group of 18 to 25 years which is a young generation and they always prefer to shop in a store where the ambience is good, quality of the product is good and variety should be there.

EFFECTIVENESS OF PROMOTIONAL ACTIVITIES CARRIED OUT BY BIG BAZAAR: 1. More advertisements should be given in newspaper as compare it to radio. 2. As I found in study almost 80% people get to know about the offers at big bazaar through TOI so we need to focus more on TOI. 3. Instore activities plays an important role in increasing sales but it is very rare to see these activities in Big Bazaar so they should focus on that. CUSTOMER SATISFACTION: 60

1. The major problem is the slow billing process for that the counters should be increased and also the staff should be trained properly. 2. Big Bazaar has to improve the quality of its products otherwise it can loose its market share as there are lots of Big competitors coming in Indian Retail market and some are already present. 3. The staff should be trained properly as many customers felt staff is very reluctant to attend a customer and sometimes when they are attending the customers they dont have a proper knowledge of the product which they are offering or displaying to customers. 4. The ambience should be improved as in terms of cleanliness, spaciousness etc. which results in wasting the customers time. 6. The arrangement of the products should be done properly and customers have complaint that the positions of the products keeps on changing which creates a lots of problems in finding a particular product. 5. Offers are not updated regularly which creates a lot of problems for customers

61

62

CHAPTER 7

CONCLUSION
Finally to conclude my project experience in Big Bazaar was really good. Although there are many competitors for Big Bazaar, it still serves customers in a better and efficient way so that the customers are satisfied with the good products for low price. The study was basically to know how effective the promotional activities carried out by Big Bazaar are. Based on the answers given by customers a conclusion can be made that the promotional activities are being carried out in a good way and most of the customers were happy with the service, pricing, discounts and other factors but some of them were strongly recommending to improve the quality and service and for promotional activities some of them found that it should be done in more effective way so that each and every customer comes to know about the various offers at big bazaar. What basically Big Bazaar needs to do is to conduct its promotional activities in a proper and effective way as I found promotional activities were not taken seriously by management of the big bazaar.

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CHAPTER 8 BIBLIOGRAPHY
Websites 1. www.pantaloon.com 2. www.pantaloon.com/companyinfo.asp 3. www.economywatch.com 4. www.ibef.org/industry/retail.aspx 5. www.business.mapsofindia.com 6. www.retailpedia.com 7. www.retailabout.com 8. www.Indiaretailing.com

Books: Business India, business world, Naresh k malhotra, Marketing Research

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ANNEXURE - I
PROJECT PROPOSAL
Name of the Learner : PANKAJ MEHTA Registration Number : 200716875 Program Name Address : Post Graduate Diploma in Retail Managament : 19, Devangapet Street no.2, Coimbatore-1.

A STUDY ON CUSTOMER SATISFACTION AND EFFECTIVENESS OF

PROMOTIONAL ACTIVITIES CARRIED OUT AT BIG BAZAAR From the last one decade the Indian Retail sector has been undergoing a number of changes. Retailing has created a buzz and there is a big difference in the consumer buying behaviour. With the continuous evolving retail markets and the dynamic changes in the consumer tastes and lifestyle, Big Bazaar has created a great competition to other retail outlets. Among the leading Retail Outlets, Big Bazaar is one of them providing great offers and discounts to customers. But still Big Bazaar has many competitors and this project is a study to know the Competitors Strategy from the Customers so that Big Bazaar can withstand the competition and serve the Customers in a better way. STATEMENT OF THE PROBLEM TITLE OF THE STUDY The research problem selected for the project is entitled as Customer satisfaction and effectiveness of promotional activities carried out at Big Bazaar

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OBJECTIVES OF THE STUDY: To find out the effectiveness of promotional activities carried out at big bazaar. To find out which promotional activity is the most effective. To find out the awareness of customers towards promotional activities carried out by big bazaar. To know the customer satisfaction. To find out the Competitors Strategy from Customers. To know the expectations of Customers from Big Bazaar. To get the suggestions from Customers to improve the services Bazaar. SCOPE OF THE STUDY The scope of the study covers in knowing whether the promotional activities carried out by Big Bazaar are effective or not. The study also tells whether the Customer is satisfied with the services provided by Big Bazaar. Overall the study tells the problems in Big Bazaar and how to attract customers towards Big Bazaar to withstand the competition. METHODOLOGY (e) Type of Research Design This Research is conducted for the sample size of 200 customers to know the effectiveness of promotional activities carried out by Big Bazaar and the respondents were from all age group which is chosen randomly. Hence it is a Descriptive Research. (f) Data (Primary Data and Secondary Data) Primary Data was collected through survey method choosing the respondents randomly. A Questionnaire was used to collect the data as the population covered was large in number. It consisted of open ended questions, multiple choice questions, Likert Scale and dichotomous (yes/no) questions. provided by Big

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(g)

Secondary Data was collected from the Internet, Company Magazines. The Instrument used for the research is Questionnaire because the

Research Instrument

population covered was large in number. The Questionnaire is a StructuredUndisguised type of Questionnaire. (h) Sampling Design Sample Unit: The research was made from the customers visiting Big Bazaar. Sample Size: The Sample Size chosen for this research is 200 customers from all age group. The customers filled the Questionnaire themselves and were assisted and explained questions where they had difficulty in understanding. Sample Technique: The respondents (customers) were chosen through Random Sampling Technique. LIMITATIONS OF THE STUDY Since everything is available in Big Bazaar it was difficult to get Questionnaires filled from customers for all product categories. There was very less time so it was quite difficult to get Questionnaires filled in Home Needs, Electronics and Furniture section. In Depth study was not possible due to time constraint. Customers could not spare much time while filling the Questionnaire.

Detailed Information of Guide Name Address : : Mr. HITESH BOHRA 252, R.G.Street, Bohra Kunj, Qualification Designation : : Coimbatore-641 001. MBA Managing Director, Century Ply n Lam, Coimbatore..

ANNEXURE - II

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QUESTIONNAIRE
The Information and Opinion Shared in this questionnaire would be kept confidential. Personal Details: Name: Profession: Contact details: Email id: Phone no.:

Age:

Area:

Q1. How important do you think promotional activities are? Very important ( ) Unimportant ( ) Q2. What among these promotional activities carried out by big bazaar are known to you? Advertisements in newspapers ( ) bike rallies ( ) pamphlet distribution ( ) Instore activities (games,luckydraws,quiz etc) ( ) Q3. How do you rate the overall promotional activities carried out by big bazaar? Excellent( ) Good ( ) Neutral ( ) Average ( ) bad ( ) important ( ) neutral ( ) slightly important ( )

Q4. How do you rate the following promotional activities carried out by big bazaar? (1-very in effective and 5-very effective). Newspaper advertisement Bike rally Radio Pamphlet distribution Instore activities (games,luckydraws,quiz etc) Excellent ( ) Good ( ) Neutral ( ) 1 1 2 1 1 1 2 3 2 2 2 3 4 3 3 3 4 5 4 4 4 5 5 5 5

Q5. How do you rate the newspaper advertisements in terms of its reach and effectiveness? Average ( ) Bad ( )

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Q6. Through which newspaper you come to know about various offers at Big Bazaar? Times of India( ) Economic Times( ) The Hindu( ) Dina Malar ( ) Others ( )

Q7. How do you rate the effectiveness of bike rally as a part of our promotional activity? Very Ineffective( ) Ineffective ( ) Neutral ( ) Effective ( ) Very effective ( )

Q8: How satisfied are you with respect to the following communication factors? (1=VERY DISSATISFIED and 5=VERY SATISFIED). a) Clarity /understandability of signages b) Product display c) Regular Announcement of offers d) Arrangement of products e) Visibility of the instore advertisements 1 1 1 1 1 2 2 2 2 2 3 3 3 3 3 4 4 4 4 4 5 5 5 5 5

Q9. Do advertising and other promotional activities influence your buying decision? Yes ( ) no ( ) cant say ( )

Q10. Which type of offers you prefers the most? Buy 1 get 1 free Get 50% Discount Buy 2 Get 1 free Buy 1 get 50% discount on another Exchange offers Q11. Are you aware of Wednesday bazaar scheme? Yes ( ) No ( ) Cant say ( ) 1 1 1 1 1 2 2 2 2 2 3 3 3 3 3 4 4 4 4 4 5 5 5 5 5

Q12.How did u come to know about this? Newspaper( ) Bike rally( ) Pamphlet ( ) Instore Advertisements ( )

Q13. Do you think our competitors promotional activities are better then us? 71

Yes( )

No( )

Cant say( )

Q14. Which promotional activity of our competitors do you like most and why? Q15. How would you rate the promotional activities carried out by the following retail outlets? (1-very ineffective and 5-very effective). Big Bazaar Star bazaar Spar Hypermarket Reliance Mart Total Hypermarket Q16. Any Suggestions: 1 1 1 1 1 2 2 2 2 2 3 3 3 3 3 4 4 4 4 4 5 5 5 5 5

*THANK YOU*

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LIST OF GRAPHS
NO. a. Visitors b. Age of Customers c. Profession 4.1.2 Importance of promotion 4.1.3 Big Bazaars promotional activities 4.1.4 Rating of Promotional activities a. Newspapers b. Radio c. Bike Rally d. Pamplets e. In-store activities 4.1.5 Newspaper Source 4.1.6 Communication Factors a. Clarity and Understating of signages b. Product display c. Regular Announcement of offers d. Arrangement of products e. Visibility of the instore advertisements Promotional activities influencing customers 4.1.7 buying decision 4.1.8 Customers awareness of Wednesday bazaar 4.1.9 Promotional Activities of other Retails a. Big Bazaar b. Star bazaar c. Spar Hypermarket d. Reliance Mart e. Total Hypermarket PARTICULARS 4.1.1 Indicating profile of Customers

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