Star Bazaar Introduction

July 31, 2017 | Author: Ravi Singh | Category: Retail, Marketing, Product (Business), Employment, Distribution (Business)
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Star Bazaar Introduction...




The India Retail Industry is the largest among all the industries, accounting for over 10 per cent of the country‟s GDP and around 8 per cent of the employment. The Retail Industry in India has come forth as one of the most dynamic and fast paced industries with several players entering the market. But all of them have not yet tasted success because of the heavy initial investments that are required to break even with other companies and compete with them. The India Retail Industry is gradually inching its way towards becoming the next boom industry. India is the country having the most unorganized retail market. Traditionally it is a family‟s livelihood, with their shop in the front and house at the back, while they run the retail business. More than 99% retailer function in less than 500 square feet of shopping space. Global retail consultants KSA Technopak have estimated that organized retailing in India is expected to touch Rs 35,000 crore in the year 2005-06. The Indian retail sector is estimated at around Rs. 900,000 crore, of which the organized sector accounts for a mere 2 per cent indicating a huge potential market opportunity that is lying in the waiting for the consumersavvy organized retailer. As consumers have shifted their buying criteria to demand more value, better service, and greater convenience, retailers must adapt the way they offer services to meet these evolving consumer needs. In addition, industry consolidation, globalization, and the growth of technology have blurred the lines among the traditional role of a consumer product manufacturer, wholesaler, distributor, retailer, and the customer. As the contemporary retail sector in India is reflected in sprawling shopping centers, multiplex- malls and huge complexes offer shopping, entertainment and food all under one roof, the concept of shopping has altered in terms of format and consumer buying behavior, ushering in a revolution in shopping in India. This has also contributed to largescale investments in the real estate sector with major national and global players investing in developing the infrastructure and construction of the retailing business. The trends that are driving the growth of the retail sector in India are    

Low share of organized retailing Falling real estate prices Increase in disposable income and customer aspiration Increase in expenditure for luxury items (CHART)



Retailing in India is one of the pillars of its economy and accounts for 14 to 15 percent of its GDP.The Indian retail market is estimated to be US$ 450 billion and one of the top five retail markets in the world by economic value. India is one of the fastest growing retail markets in the world, with 1.2 billion people. India's retailing industry is essentially owner manned small shops. In 2010, larger format convenience stores and supermarkets accounted for about 4 percent of the industry, and these were present only in large urban centers. India's retail and logistics industry employs about 40 million Indians (3.3% of Indian population). FOLLOWING ARE THE SOME OF THE RETAIL MARKET PLAYERS 1. Star Bazar 2. Big Bazar 3. A.V.Sons 4. Dhiraj Sons 5. Familymart 6. Reliance fresh 7. Adani 8. Lawson 9. RT Mart 10. Wal-Mart

11.Wesfarmers 12. Woolworths



CHAPTER 2: INTRODUCTION TO STAR BAZAR (A TATA ENTERPRISE) TRENT LTD'S - STAR INDIA BAZAAR A retail chain by Tata Companies, Star Bazaar is one of the leading Hyper Markets in the country. Due to their vast product range and valuable offers, Star Bazaar is gaining recognition rapidly. Presently there are three outlets of Star Bazaar in Mumbai, One at Andheri, other at Dahisar and one at Thane. Established in 1998 Trent Ltd. is part of the Tata Group India‟s premier business house. Trent Ltd. operates the newly launched hypermarket, Star India Bazaar providing a large assortment of high quality products made available at the lowest prices coupled with aunique shopping experience. Star India Bazaar, currently has one store in Ahmedabad. The Star India Bazaar in Ahmedabad covers over 54,000 sq. ft and is spread over two floors. The new store offers customers a wide choice of products that include staple foods, beverages, health and beauty products, vegetables, fruits, dairy products, consumer electronics and household items at the most affordable prices. Star India Bazaar also includes a large range of fashionable in-house garments for men, women and children, exclusively available at the store


SERVICE MANAGEMENT OF STAR BAZAAR The Star India Bazaar Advantage ►High quality products available at the lowest prices in the city. ►Well laid out store – items categorized into departments. ►Walkway escalator to reach the first floor and also to come down to the ground floor. ►All the cash billing in the ground floor. ►Gondolas well placed and spaced out with easy to reach product displays. ►Clear signage's to guide to the right departments. ►Bar coded items. State of the art scanners and systems for ease in billing. The ground floor comprises of fast moving consumer goods and food products. The food products comprises of staple foods, fresh foods like fruits and vegetables, dairy products, mithai and farsan. There are also special counters and locations for fresh foods. The food section includes oils, ghee, snacks, pickles, noodles pasta, papads, biscuits, chocolates, candies, drinks, jams, jellies, staples and cereals. Interestingly the store also offers an atta chakki for grinding of grains. The FMCG range comprises of toiletries, personal care and hygiene products. This range also includes soaps,shampoos, toothpaste, toothbrushes, cleaners for floor and much more.




The spectrum of Retail Industry is quite wide in nature. Retail serves consumers through a small grocery store to a huge departmental store. Following are the characteristics of retail industry 1. INTANGIBLILTY: Services are “experiences” created for customers. Physical products in the store are widely displayed for customers to see, feel, touch, weigh or sniff at before deciding whether or not to buy but one cannot touch, see or smell the Service before choosing, although clearly one can make some assessment based on past experience. The intangible nature of most services gives rise to special problems both for suppliers and consumers. Service provided by star bazaar cannot be touched but it can be felt.  How to overcome the problem intangibility in relation to star bazaar? Star bazaar makes use of tangible product like trolleys, elevators, proper display of products with price tags, billing counters, etc. Star Bazaar manage and promote word of mouth communication like Advertisment in local news papers, banners, low rate, wide range of products, products in proper way, helping customers, etc. Star bazaar use Personal sources for proper delivery of service like keeping sales representatives of for selling products. Star bazaar applies post communication by offering coupons and providing products at less than MRP price. 2. INSEPRATIBILITY: A key distinguishing feature of service marketing is that the service provision and provider are inseparable from the service consumption and consumer. Services of star bazaar cannot be delivered if both, the representative of star bazaar and customer are not present. Example: customers have to be present to get services provided by star bazaar. Service delivery is not possible if any of them is not present. Star bazaar deal with the problems of inseparability by strong selection and training programs for its employees who would be dealing with customers. 5

SERVICE MANAGEMENT OF STAR BAZAAR Star Bazaar announces strong incentives and motivation to attract and satisfy the customer like providing good to customer at less than printed price, giving benefits of customer membership card in relation to points. Star bazaar focus on personal attention by keeping sales representative at different section of the bazaar.

3. VARIABILITY: services faced the difficulties of achieving uniform outputs. It is difficult to setting up standard when the behavior and performance vary not only among service works but even between the same employees dealing with different customer on different days. Star Bazaar deal with the problem of variability with help of following tools. They stress upon standardization and performances in services. They force on employee‟s training programs, performance evolution and internal marketing. Customized Services, Applying specific techniques to substitute organized per planed system for individual service operations.

4. PERISHABILITY: implies services that cannot be saved. An unutilized service capacity cannot be utilize further. Star bazaar deal with the problems of perishability with the help of following tools. Demand forecasting a creative planning for capacity utilization. Eg. As the firm is new in the market so they don‟t have much experience with relation to Surat public so demand for casting can be done basis of sales of rival firms. Invent strong recovery strategy when things go wrong. Eg. When demands forecasting for sales of products goes wrong and they a huge stock of product than to overcome this problem then they may sell good to customer at discounted rates or with any other scheme. Focus of competence and expertise.


SERVICE MANAGEMENT OF STAR BAZAAR 5. LACK OF TRNASFER OF OWNERSHIP: The final distinguishing feature of a service is that, unlike a physical product, the consumer does not secure ownership of the service. Rather the customer pays only to secure access to or use of the service. In relation to star bazaar, lack of transfer of ownership can be explained with the help of trolleys that customers‟ uses to collect their product, elevator used, changing rooms, etc. cannot be purchased by customer but can be used by customer to complete the service. Thus these are the five major characteristics of service.



CHAPTER 4: SERVICE MANAGEMENT AT STAR BAZAAR Management of service can be explained with the help of following Seven P‟s of service. 1. Product: In case of services, the „product‟ is intangible, heterogeneous and perishable. Moreover, its production and consumption are inseparable. Hence, there is scope for customizing the offering as per customer requirements and the actual customer encounter therefore assumes particular significance. However, too much customization would compromise the standard delivery of the service and adversely affect its quality. Hence particular care has to be taken in designing the service offering. FMCG products, home appliances cosmetics, foot wear, cloths, plastic products, Home decors, Stationary products, food and beverages, etc. 2. Pricing: Pricing of services is tougher than pricing of goods. While the latter can be priced easily by taking into account the raw material costs, in case of services attendant costs - such as labor and overhead costs - also need to be factored in. Thus a restaurant not only has to charge for the cost of the food served but also has to calculate a price for the ambience provided. The final price for the service is then arrived at by including a mark up for an adequate profit margin. They provide different range of products and heavy discounts to attract customers which value their services with price. Sometimes they provide free goods if customer purchases goods to a certain amount limit and even sometimes on the baisi of points earned by the customer.

3. Place: Since service delivery is concurrent with its production and cannot be stored or transported, the location of the service product assumes importance. Service providers have to give special thought to where the service would be provided. Thus, a fine dine restaurant is better located in a busy, upscale market as against on the outskirts of a city. Similarly, a holiday resort is better situated in the countryside away from the rush and noise of a city. Star bazaar provides home delivery service to some limited area near the bazaar. They even provide services in different cities like Ahmedabad, Mumbai, etc. the location of star bazaar helps it to attract more customers of residential area. 4. Promotion: Since a service offering can be easily replicated promotion becomes crucial in differentiating a service offering in the mind of the consumer. Thus, service providers offering identical services such as airlines or banks and insurance companies invest 8

SERVICE MANAGEMENT OF STAR BAZAAR heavily in advertising their services. This is crucial in attracting customers in a segment where the services providers have nearly identical offerings. We now look at the 3 new elements of the services marketing mix - people, process and physical evidence - which are unique to the marketing of services. 5. People: People are a defining factor in a service delivery process, since a service is inseparable from the person providing it. Thus, a restaurant is known as much for its food as for the service provided by its staff. The same is true of banks and department stores. Consequently, customer service training for staff has become a top priority for many organizations today. Star bazaar target the segment of middle class people to give them better quality products at reasonable rates and of wide range. 6. Process: The process of service delivery is crucial since it ensures that the same standard of service is repeatedly delivered to the customers. Therefore, most companies have a service blue print which provides the details of the service delivery process, often going down to even defining the service script and the greeting phrases to be used by the service staff. To maintain the standard of services they provide better training program to their customers. The process of providing their services is best given by the company to their employees to deliver services. 7. Physical Evidence: Since services are intangible in nature most service providers strive to incorporate certain tangible elements into their offering to enhance customer experience. Thus, there are hair salons that have well designed waiting areas often with magazines and plush sofas for patrons to read and relax while they await their turn. Similarly, restaurants invest heavily in their interior design and decorations to offer a tangible and unique experience to their guests. Star bazaar is well designed to understand the prospective of their products so that customer does not face any problem while shopping. Giving different facilities while their shopping experience help the customer to worth their shopping in Star Bazaar.







Owned good

Goods are purchased

2. Skills


3. Goals

Profit making

4. Regulation

Limited regulation

5. Labor intense

Less labor intense

6. Customer Contact

Low Contacts

7. Place and Time

Service site

8. Customization

Customized services

Professional Sales man is not required It is a profit making departmental store Demand or rush in store keep fluctuating. Less labor is required at the time of giving services Contacts with customers are low in retail stores. Services are given on the store only. Standardized services are not there because of human nature Customers keep visiting the site for services. Demand of retail is not steady.

9. Relationship with On going customers 10. Demand and Supply Fluctuating Demand 11. Customer-Employee presence

Self Service personal


Inter Shopping experience is done by customer and services need to be inter personal.




The eight clusters are displayed as petals surrounding the center of a flower; hence we call it the Flower of Service. The petals are arranged in a clockwise sequence depending on how they are likely to been countered by customers. However, the sequence may sometimes vary. For instance, payment may have to be made before service is delivered rather than afterwards. In a well-designed and well-managed service organization, the petals and core are fresh and well-formed

There are two kinds of supplementary services.

1. Facilitating supplementary services are either needed for service delivery, or help in the use of the core product. 2. Enhancing supplementary services add extra value for the customer. These different supplementary services can be classified into one of the following eight clusters.



Types of Facilitating Services

Types of Enhancing Services


SERVICE MANAGEMENT OF STAR BAZAAR A service that is badly designed or poorly delivered is a like a flower with missing or dried petals. Even if the core is perfect, the flower looks unattractive. Think about one of your negative experiences as a service customer. When you were dissatisfied with a particular purchase, was it the core that was at fault, or was it a problem with one or more of the petals?



Information To obtain full value from any good or service, customers need relevant information .New customers and prospects are especially hungry for information. Information may sometimes be required by law. These include conditions of sale and use, warnings, reminders, and notification of changes. In relation to star bazaar information can be consider as providing all the information related to goods and services they provide. Eg. If they are customer want to by home appliances so at this point of time with the help if sales representative customer can get all the features of the product. Thus in this way information of service can be provided to the customer. Customer of star bazaar comes to know about it with internet, friends, relatives, advertisement, etc.




Order-Taking Once customers are ready to buy, the company accepts applications, orders, and reservations. The process of order-taking should be polite, fast, and accurate so that customers do not waste time and endure unnecessary mental or physical effort. Technology can be used to make order-taking easier and faster for both customers and suppliers. Order-taking in relation to star bazaar can be explained with the help of customers, making bill, helping customer in finding good/service.


greeting to

Billing Billing is common to almost all services (unless the service is provided free of charge). Customers usually expect bills to be clear. Inaccurate, illegible, or incomplete bills risk disappointing customers who may, up to that point, have been quite satisfied with their experience. If customers are already dissatisfied, the billing mistake may make them even angrier. In star bazaar billing is done with the help of computer and they do not provide any credit to their customers. Instead of providing credit to the customer they have kept points earning system, which customer can earn with they help of the amount of shopping they do.


Payment In most cases, a bill requires the customer to take action on payment. In star bazaar there are variety of options exist for customers to make payment, one may make payment in cash, credit card , debit card, into machines and a full payment of the purchased amount.


Consultation Now we move to enhancing supplementary services, led by consultation. Consultation involves a dialog to probe customer requirements and then develop a solution that is suited to the needs of the customer. In relation to star bazaar consultation category include Customized advice, Personal counseling, Tutoring/training in product use, management or technical consulting.




Hospitality This is especially use for business-processing services where customers should not easily leave the service facility. Hospitality-related services in star bazaar ideally, reflect pleasure at meeting new customers and greeting old ones when they return. Well-managed businesses try, at least in small ways, to ensure that their employees treat customers as guests. The quality of the hospitality services offered by a firm can increase or decrease satisfaction with the core product. People-processing services tend to have more supplementary elements, especially hospitality, since they involve close (and often extended) interactions with customers, Greeting Food and beverages Toilets and washrooms Waiting facilities and amenities


Safekeeping While visiting a service site, customers often wants their personal possessions to be looked after.´ In fact, some customers may choose not to go to certain places that do not have safekeeping services like a safe and convenient car park. Safekeeping services with relation star bazaar includes baggage transport, handling and storage; safekeeping of valuables; and even children, Packaging, Transportation and Delivery, Installation, Inspection and diagnosis Cleaning


Exceptions Exceptions involve supplementary services that fall outside the normal service delivery. Exceptions include special requests, and problem solving Exception in relation to star bazaar is Special Requests in Advance of Service Delivery Children‟s needs Religious observances Handling Special Communications Complaints Compliments Suggestions, Problem Solving, Warranties and guarantees against product malfunction, Resolving difficulties that arise from using the product, Resolving difficulties caused by accidents, service failures, and problems with staff or other customers, Restitution, Refunds, Compensation in kind for unsatisfactory goods and services etc.

Thus these are petal of service with relation to star bazaar.



Chapter 7: LEVELS OF CHANNEL OF DISTRIBUTION Meaning: levels of channel of distribution provide the means by which goods and services are conveyed from producers to consumers and users Retail distribution channels consist of some combination of producers or manufacturers, agents or brokers, wholesalers or distributors, importers, and retailers. Each step along the channel has a specific purpose that is met by one or more member companies. Distribution channels are important because they allow for a continuous flow of product despite the natural peaks and slumps experienced in manufacturing and sales. They also provide efficiency, economies of scale, and cost savings to members of the channel. Marketing intermediaries are middlemen operating between producer and consumer or business users •direct channels •channels using marketing intermediaries •dual distribution channels





Star bazaar itself act as an agent who delivery the service to customs from other words star bazaar help the customer to purchase goods/services and help the producer to sell its product to the needy people.




Star Bazaar uses the strategy of pricing on the basis of competition and value of their services. They provide heavy discount to meet their supply with demand. It also attracts customers who are price sensitive. For eg: The rate of products in Star Bazaar is less than Big Bazaar‟s rates which attracts the customers. They even provide variety in products. The discounts are up to 70%.




The following section examine in more detail three major roles played by customers in service co-creation and delivery. They are as follows: 1. CUSTOMERS AS PRODUCTIVE RESOURCES: If customers contribute efforts, time, or other resources to the service production process, they should be considered as part of the organization. Customer inputs can affect the organization‟s productivity through both the quality of what they contribute and the resulting quality and quantity of output generated. For eg: the services given at retail shops like Star Bazaar is mostly performed by customers like taking trolleys for shopping purpose, collecting goods from the slot on their own, etc. this reduces the uncertainty of customers‟ behavior at the time of shopping.

2. CUSTOMERS AS CONTRIBUTORS TO SERVICE QUALITY AND SATISFACTION: Customer plays role in service co-creation and delivery is that of contributor to their own satisfaction and the ultimate of services they receive. Effective customer participation can increase the great dear about whether their needs are fulfilled. For example: customers at Star Bazaar understand the procedure of collecting goods on their own which satisfy them, they co-operate with the employees at the time of billing which help the company to provide better services.

3. CUSTOMERS AS COMPETITORS: If self-service customers can be viewed as resources of the firm, or as “partial employees”, they could in some cases partially perform the service for themselves and not need the provider at all. For example: shopping done by the customers at departmental store is a kind of self-service. Thus the role of customers plays an important role in generating services.




Employees are very important in playing the role in field of services. If they are given proper training in terms of handling customers and satisfying them, then it creates a brand for the organization. It is true that employees are services of the company, they are the organization in the customers‟ eye, they are the brand and they are marketers. Even if the contact contacting employee does not perform the services entirely, he or she may still personify the firm in customers‟ eyes because they represent the firm to the client. For example: In Star Bazaar if employees do not guide they customers about the product then customer may choose the wrong product which do not satisfy their need and in return the image of the organization does not remain good. If employees do not give proper guidance or delivery services it affect the organization‟s image as employees are the only who can satisfy the customers‟ need. If the employees of Star Bazaar are properly trained then they can perform the functions properly and help the company to maximize the profit and even lead the customer to increase word of mouth communication. Contact employees represent the organization and can directly influence customer satisfaction; they perform the role of marketers.




The behavior of employees in an organization will be heavily influenced by the culture of that organization, or the pervasive norms and values that shape individual and group behavior. Once the employees are on the job, then their formal training as well as informal observation of behavior will work together to give a better picture of the organization‟s culture.

1. EXIBITING SERVICE LEADERSHIP: A strong culture begins with leaders in the organization who demonstrate a passion for service excellence. Star Bazaar is a Tata Enterprise, the norms followed by the top level executives gives the passion to follow the culture of the organization. If the company follows the rules and regulations and give proper training and guidance to their employees then there will better service delivery of services under the company norms.

2. DEVELOPING A SERVICE CULTURE:The human resource and internal marketing practices help develop a service culture over time. Hundreds of little factors are required to build and sustain a service culture. For example: Culture of the Star Bazaar employees cannot be build overnight. It takes time to understand the working of the organization and the interest of the customers. Proper training is given to their employees to understand the prospective of the organization which helps them to handle the services given at Star Bazaar.




The blueprint is an operational tool that describes the nature and the characteristics of the service interaction in enough detail to verify, implement and maintain it.



Steps in designing a blueprint: 1. Identify the process to be blueprinted: This implies that it would be impossible to blueprint the complete processes of the service provider in one format. The individual processes are to be identified. Each process would by itself be an issue, and particular problem identification and appropriate solution would be easier. 2. Map process from the customers’ point of view: The customers‟ comfort zone can be identified; if they are not satisfied the process can be modified. 3. Draw the line of interaction: The line of visibility and interaction has to be drawn clearly. The areas of interaction affect service experience the most. 4. Draw the line of visibility: This component contains all of the steps that customers take as part of the service delivery process. This element is always on top of the service blueprint. This element is separated from the customer actions by a „line of interaction‟. These actions are face-to-face actions between employees and customers. 5. Draw the line of internal interaction: The „internal line of interaction‟ separates the contact employees from the support processes. These are all the activities carried out by individuals and units within the company who are not contact employees. These activities need to happen in order for the service to be delivered. 6. Link customer and contact person: For each customer action, and every moment of truth, the physical evidence that customers come in contact with is described at the very top of the service blueprint. These are all the tangibles that customers are exposed to that can influence their quality perceptions.


SERVICE MANAGEMENT OF STAR BAZAAR Star Bazaar. Star Bazaar is a chain of hypermarkets, currently numbering 14 stores of 50,000-60,000 square feet size stores across Ahmedabad, Aurangabad, Bengaluru, Chennai, Kolhapur, Mumbai and Pune with plans to expand rapidly. It offers customers a choice of good quality products and wide range across all categories including staples, vegetables, fruits, dairy and non-vegetarian products, beverages, health and beauty products, live bakery, consumer electronics, household items and garments for men, women and kids at economic prices. In August 2008 Trent entered into an exclusive franchise agreement with Tesco Plc., the world‟s 3rd largest retailer which allows Star Bazaar to access the extensive retail expertise and technical capabilities of Tesco.


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