Customer ship Management in Retail Sector (Big Bazar)

PROJECT REPORT ON

To study the Customer Relationship Management In Retail Sector (Big Bazaar)

Submitted by:

GAURAV VERMA ROLL NO. 232 SECTION- G

SHRI RAM COLLEGE OF COMMERCE

Acknowledgement

I would like to express my deep sense of gratitude to Mr. PADMESHWAR DOLLEY, for his guidance and encouragement throughout the period of the project study. I am indebted to his guidance, spirit and valuable suggestions.

I would like to thank everyone who has been a help directly or indirectly leading to the successful completion of the study report.

Mr. Padmeshwar Dolley

GAURAV VERMA

(Project mentor)

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Contents 1. Executive Summary 2. Introduction 3. Preface 4. Objective of Study 5. Research Methodology 6. Study of CRM 7. SWOT Analysis of BIG BAZAAR 8. Analysis of Data: •

Customer survey

•

Retailer survey 9. Finding

10. Recommendation 11. Conclusion 12. Bibliography

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Executive Summary

The Indian retail industry is now beginning to evolve in the line with the transformation that has swept other large economies. The liberalization of the consumer goods industry initiated in the mid-80 and accelerated through the 90’s has begun to impact the structure and conduct of the retail industry. The concept retail which includes the shopkeeper to customer interaction, has taken many forms and dimensions, from the traditional retail outlet and street local market shops to upscale multi brand outlets, especially stores or departmental stores. The objective being to assess the various parameters that influences a buyer to visit or shop at departmental store thereby contributing to its turnover (in terms of sales and profits) hence leading to its overall success. The extensive research brought me to conclude that departmental stores are soon emerging on the top priority lists, amongst the shopping spree in Delhi and NCR, as they seem to derive immense pleasure of convenience and exposure to variety under one roof, in their extremely busy lives, when they don’t have time for things. Though some of the customers perceive departmental stores to be expensive and only high income category’s cup of tea, the stores make constant efforts to induce them to at least visit the store at once during the sale period, or discount offers.

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The Retail Marketing Revolution - An Introduction “Any business that directs its marketing efforts towards satisfying the final consumer based upon the organization of selling goods and services as a means of distribution” By 2010, the list of India's top 10 retailers will have at least 5 Indian corporate. Retail Marketing will go through a tremendous change in India this millennium. It will change India's cities, its people, and its households. The Indian consumer is reportedly the largest spender in Singapore and London. It is, therefore, strange that there have, so far, been few efforts to present the product in the right kind of environment in India. Indeed, the right shopping experience does induce Indian consumers to spend more. This is evident from the experiences of retail-outlets like Music World, Big Bazaar, Spencer’s, Crosswords, The Home Store, Ebony, Bigjo’s, Saboos, Standard, Nanz, Vijay Store and Janaki Das & Sons, Westside etc.

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Factors affecting Retail marketing The development of organized retail is dependent on the efforts of several agencies and institutions. A glimpse of the last 2 decades of the previous century proves illuminating. Large-format retailing started with outlets like Vivek's and Nalli's in Chennai and Kidskemp in Bangalore, and, at another level, with manufacturer-retail brands like Bata, Bombay Dyeing, and Titan.

Government: The first among these is the government. In a country as big as India and with as many states as ours, it is imperative that the Central government and all state governments bring in Value Added Taxation or a unified taxation system to ensure that the tax-regimes are the same across the country. The laws governing retail real estate should also be looked into, so that it is possible to develop retail-estate beyond the city-limits. Apart from providing entertainment and retail opportunities, this will also decongest the city center and facilitate the development of suburbs. The relevant rules should also be amended to allow retail-stores to operate 7 days a week, 12 hours a day.

Nuclear Families: Given the hours most urban consumers keep at work, and keeping in mind the increase in the number of nuclear families, this may, indeed, make sense. This will also help people enjoy their evenings, out at malls.

Developers: The second group, whose participation is essential in making retail a boom-sector in this millennium, comprises developers. Most properties are developed without considering the end user; thus, we sometimes find highCeilinged offices and low-ceilinged retail stores. Often, the shopper's convenience is not taken into consideration while the property is constructed.

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Trends In Retail Marketing At this point, I can summarize the main development retailers and manufacturers need to take into account as they plan their competitive strategies. In India the trends are mainly in three sectors. These sectors are: Trends in retail marketing

Urban

Suburban

Rural

New retail forms and combinations continually emerge. Bank branches and ATM counters have opened in supermarkets. Gas stations include food stores that make more profit than the gas operation. Bookstores feature coffee shops. The electronic age has significantly increased the growth of non store retailing consumers receive sales offers in the mail and over television, computers, and telephones, to which they can immediately respond by calling a toll-free number or via computer. Competition today is increasingly intertype, or between different types of store outlets. Discount stores, catalog showrooms, and department stores all compete for the same consumers. The competition between chain superstores and

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Retail Marketing In India There are various ways of making goods available to consumers like: •

Company to distributor to wholesaler to retailer to consumer

•

Company to salesperson to consumer

•

Company to consumers (online/ phone/ catalog ordering)

These three are among the most common ways of making the goods available to consumers. But in India the three layered system of distributor, wholesaler and retailer, forms the backbone of the front-end logistics of most of the consumergood companies. There are a number of reasons behind this fragmented retail market. Some of the major reasons being: •

Poverty and lower literacy levels.

•

Low per capita income.

•

Savings focused and less indulgence mindset.

•

Poor infrastructure facilities like roads etc.

•

Restrictions on intra-state good movement.

•

High taxes.

•

No exposure to media.

•

High import duties on imported goods.

•

FDI in retailing is not allowed.

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CRM In Retail Marketing( Big Bazaar) Customer relationship activities have the most impact on customer retention. Every customer service encounter has the potential to gain repeat business or have the opposite effect. The expectation of personalized, relevant offers and service is becoming a primary driver of customer satisfaction and retention in financial services.

What Exactly Is CRM? The first thing you find when looking into the world of Customer Relationship Management is the number of different definitions in use today.

Here is the one I have chosen for this Project: •

"CRM is the business strategy that aims to understand, anticipate, manage and personalize the needs of an organization's current and potential customers" -- PWC Consulting

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Slogan of big bazaar: (“Come To Big Bazaar- Isse Sasta Aur Achha Kahin Nahin”) It is said that a successful CRM implementation will allow your Customer Service, Sales and Marketing people (and anyone else in your organization) to have a holistic view of each and everyone of your customers. In theory this will enable them to make quick, informed decisions, create cross selling and up selling opportunities, measure marketing effectiveness and deliver personalized Customer Care. Sound’s great doesn’t it!!!

The History of CRM Following on from Enterprise Resource Planning or ERP (the business strategy that promised to automate the “back-office”), the term CRM was first coined in the mid-1990s. CRM in those days referred to the software used to help businesses manage their customer relationships. From sales force automation software (SFA) that focused on customer contact management to integrated knowledge management solutions, these were the early foundations of CRM.

The last couple of years have seen the term broaden to encompass a more strategic approach and the investment of billions of dollars worldwide into CRM solutions and services has followed.

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The Right Technology It is estimated that the global market for CRM services and solutions is currently worth $148 billion. That means a lot of choice when selecting your technology from web-based solutions aimed at small businesses with less than 10 employees to solutions suitable for multi-national enterprises with millions of customers.

The Future CRM has already made a big impact in the world of Customer Service and will continue to do so. As more and more companies become customer-centric those that fail to do so will lose competitive advantage. As technology increases to develop at a startling rate the key emphasis will be how we can fully utilize it within our business. However let's not lose sight of the fact that Customer Relationship Management is about people first and technology second. That’s where the real value of CRM lies, harnessing the potential of people to create a greater customer experience, using the technology of CRM as the enabler.

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Advantages Of CRM for Big Bazaar

Using CRM, the management of Big Bazaar can:  Provide better customer service  Increase customer revenues  Discover new customers  Cross sell/Up Sell products more effectively  Help sales staff close deals faster  Make call centers more efficient  Simplify marketing and sales processes

Challenges For Big Bazaar in CRM implementation: 

.Difficulty in acquiring new customers can be a result of any one, or combination, of the following problems.

 .Inaccurate and Slow Quoting Organizations may be unable to accurately estimate and quickly deliver successful proposals, often leading to missed opportunities, bad profit margins and upset prospects.  Lack of Product Knowledge Within their Sales Force  Problems can arise when products were sold that didn’t fit company's profitability strategy such as selling a customer one product when another would be better for the customer and more profitable for you.  Difficulty and Delay in Updating Pricing and Product Information

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Customer Satisfaction Is Big Bazaar

“The degree of customer satisfaction you deliver determines the level of long-term success you will achieve in business.” - --- Training Mantra for Sales Force

Customer Satisfaction their Top Priority Don't just make sales. Create customers - satisfied customers. In addition to the immediate profit they provide on the first sale, satisfied customers help you build your business in 2 other important ways: 1. They become a reservoir of repeat buyers. For some businesses that means repeat buyers for more of the same product or service. For every business, it means buyers for additional products and services. 2. They automatically refer more business to you from their friends and business contacts. This is highly profitable business for you because it doesn't cost you any time or money to get it.

PROCESS OF CRM Customer Relationship Management (CRM) is the process of bringing the customer and the company closer together. There are many different areas in which Customer Relationship Management can be implemented.

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The goal of CRM is to help a company maintain current customers, as well as gain new customers.

CONSUMER BEHAVIOR

•

Options: Consumers are more likely to choose an alternative after

a relatively inferior option is added as a choice. For example, Simonson says, participants in one study were given a choice •

Between $6 and an elegant Cross pen. A second group chose

among $6, the •

Same Cross pen, and a second pen that was clearly less attractive

than the Cross pen. As was predicted, the addition of the unattractive pen increased the share of the Cross pen at the expense of the $6. Alternatives: Consumers prefer alternatives that are compromise choices. Given a choice between two alternatives, one priced lower than the other, the addition of a third choice, priced higher than both, will increase the market share of the more expensive of the original two. This finding suggests that companies can increase their overall sales and shift purchases to higher-margin items by carefully designing the sets of alternatives that their customers consider.

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SWOT Analysis of Big Bazaar Strength  Prime location  Large floor space allowing for better visual merchandising  Large area also allows to stock a large variety of products under one roof  Experienced and competent management  Highly trained and motivated sales force  Brand equity  Large scale operations in various cities throughout the country allows them to reap the benefits of “economies of scale”

Weakness  Large scale of operations sometimes acts as a barrier to personalized customer relations  Large scale operations lead to reduced flexibility by increasing the amount of overheads and a huge commitment in terms of fixed costs  A large organization structure leads to delayed decisions. This can prove fatal for a business in the dynamic fashion industry. Mumbai, this fact sometimes results in delayed decisions in adapting to changing market trends

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Opportunities  Apart from the metros, cities like Ahmedabad, Pune, Lucknow, Indore and Coimbatore have shown substantial retail presence. Most sport modern retail formats like supermarkets, department stores and specialty chains. These markets are expected to show exponential growth in the next few years. Thus Food Bazaar has the opportunity to explore new markets  According to the Consumer Outlook study, consumers are generally satisfied with the service that organized retailers extend to them. More importantly, they are increasingly regarding these organized retailers as providing `value-for-money’. These findings indicate that large retailers will capture most of the higher consumer spending

Threats:

 The time when retailers had to worry about competition only from their peers down the street has come to an end. Food Bazaar is now facing increased competition in the form of international retail chains that are making a beeline towards the highly potential Indian markets. Moreover many big Indian business houses are also vying a space in the Indian retail scene

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RESULT

OF

SURVEY

ON

CRM

IN

RETAIL

MANAGEMENT (BIG BAZAAR)

CUSTOMER SURVEY 1. Are you satisfied with the services provided by Big-Bazaar?

YES

20

NO

CAN’T SAY

5

5

25 20 15 Series1 10 5 0 YES

NO

CAN'T SAY

Result: From the above table it is clear that customers are satisfied with the services of Big Bazaar because out of 30 customers 20 has given the positive answer in favor of Big Bazaar.

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2. How do you find the Shopper Assistant’s behavior? HELPING 18

NOT HELPING

20 18 16 14 12 10 8 6 4 2 0

7

RUDE 5

R U D E

N O

T

H

H EL PI

N

G

EL PI N G

Series1

Result: From the above table it is clear that customer are satisfied with the attitude of the shopper’s .Out of 30 customer all 18 customer are satisfied. 18

3. How would you rate the Shopper Assistant’s behavior on the scale of five? 5

10

4 14

3 05 3

2 1 2

1 00 1

5 4 Series1

3

Series2

2 1 0

5

10

15

20

Result: Out of 30 customers, 11 customers have given the 5 marks to shopper. Assistant behavior while 14 has given 4 marks & 5 have given 3 marks.

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4. Do you find the Layout of Food-Bazaar helpful in Shopping Experience? YES 20

NO 8

CAN’T SAY

2

can't say

2

8

no

20

yes

0

5

10

15

20

25

Series1

Result: Out of 30 customers, 18 have told that they like the layout of Big Bazaar while 8 told that they do not like very much.

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5. What do you like most about Big-Bazaar? CREDIT FACILITY

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DELIVERY SERVICES

TRANSPORTATION FACILITY 5 18

20 15 10 5

18 7

Series1

5

0 Cr.Facility

Tr.Facility

Dl.facility

Result:

Out of 30 Customer, 18 customers like delivery services of Big Bazaar while 7 customers like the credit facility&5 customers like transportation facilities. So it is clear that customer wants delivery services most. 21

6. How often do Big-Bazaar services exceed your expectations? (Customer Delightness) ALWAYS 18

SOMETIMES

9

NEVER

3

20 15 10

Series1

18

5

9

3 NE VE R

M ET I M SO

AL W

AY S

ES

0

Result:

Out of 30 Customers, 18 customers said that Big Bazaar always provides better services &it exceeds their expectation.

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7. Do you think that Big-Bazaar follow the Ethical Marketing Practices like right pricing, right quality and right quantity? YES

25

NO

CAN’T SAY

5

0

30 25 20 15 10

Series1

25

5

5

0 Yes

No

0 Can'tsay

Result: Since 25 customers surveyed feel that big bazaar follows ethical marketing practices so we can fairly conclude that they are following so.

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Findings In this survey the findings are given below: 1. Most of the stores are targeting almost all the segments of the society with their USP being “Price benefit” 2. All the stores are in Prime Location. 3. Every Big Bazaar outlet have motivated and trained sales force. 4. Large variety of products is available ranging from clothes, food items, electronic goods etc. 5. Staff is provided constant training for various peculiarities of customer behavior. 6. Some of them offer discount sales and also send greetings to its loyal customers. 7. Not much difference in the Layout of the floor designs in the various branches. They try to maintain a similarity to maintain comfort levels of customers. 8. These stores maintain Word of Mouth. 9. Customers are satisfied with the provided services. 10. International shopping experiences can be achieved from these

stores.

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RECOMMENDATIONS AND SUGGESTIONS

1) Convert your customers into publicity agents. Develop an incentive for them to tell associates and friends about the value of your products or services. An endorsement from them is more effective than any amount of advertising - and it is much cheaper.

2) Surprise your customers with unexpected value. If you sell products, include an "unadvertised bonus" with every order. If you sell services, get into the habit of doing something extra for every customer or client without charging for it.

3) Reward them each time they refer someone who becomes a customer. Your reward can be as simple as a credit toward their next order from you. 4) The management of Big Bazaar can improve their understanding of the role and capabilities of advertising to improve customer relation and enhance loyalty. This understanding should in turn results in a more effective and more efficient advertising campaign.

5) Visual Merchandising: It is often seen that the people come to the store to browse rather than buy. 6) Schemes: In store Promotions: The people visiting the store should be encouraged to visit the store again and again. So it is necessary to delight the shoppers with the shopping experience. It has been observed in

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CONCLUSION “Customer Service is a critical factor for keeping your clients coming back and ensuring they’ll refer you to others”. 1: Growing your business will be a difficult task at best if you don’t perform, meet and exceed your client’s expectations, and provide service that creates customers for life.

2: Customer service is all about the customer’s perception. You have to do more than just get the job done. You must deliver on all the things (big and small) that affect the relationship with your client. Consider opportunities for improvement in the following areas. 3: Setting/Reviewing Expectations: Do you work with your client to set clear, appropriate, realistic expectations that you can always meet or exceed? Are you clear about the responsibilities (both yours’ and the client’s), timelines, and expectations of results? Are you then willing to go back and review these expectations with the client at key points along the way? 4: Communication: Do you have mechanisms in place to ensure you’re communicating with clients at every stage of the engagement, from the sales process through to completion of the project? Being clear about where you’re

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Big Bazaar-Marketing Mix Product Branding

Price

Packaging

Cost of goods

Product Design

Business Expenses

Assortment

Gross Margin

Services

Profit

Promotion

Distribution

Advertising

Logistics

Personal Selling

Store Location

Sales Promotion

Site Evaluation

Public Relations

Transportation

Visual Merchandising

Storage of goods

They seem to follow this to the core for effective Customer reach and encourage customer loyalty.

Bibliography

•

Marketing Management - Philip Kotlar

•

Research Methodology - C. R. Kothari 27

•

Retail Marketing - J.A.Lamba

•

Customer Relationship Management - Jagdish and Seth

•

www.indiainfoline.com

•

www.wikipedia.org/wiki/Big_Bazaar

•

www.financialexpress.com/news/future-group-to-hive-off-big-bazaar

•

www.businessline.com

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