51244468 3 intro bibliograpghy

8/7/2019 51244468 3 Intro Bibliograpghy

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1.1 INRODUCTION

Indian Retail industry is going through a favourable era ,offering the opportunity to

grow faster, expand business and strengthen the competition. A broad consumer base

and an ever increasing population have given the necessary push to the Indian retail

industry to grow prodigiously. The changing lifestyle and rising disposable incomes

are driving growth in the Indian retail industry. With the mall culture catching up in

the metros, the retail sector is poised to boom in the country. The Indian retail sector

is anticipated to reach the level of $ 637 bn by 2015. The modern retail industry must

conduct its business in rapidly changing and highly competitive environment.

Each retailer has to plan a mix of elements to match the needs of his customer. A mix

of products, price, place, promotion, physical evidences, people and process meet the

physical and emotional needs of the consumer. Organizations define their relationship

with the customer based on the frequency with which he or she uses the

organizations service or the quantum of purchases.

In the backdrop of challenging market scenario it was thought to be befitting to

undertake dissertation on comparative study of customer satisfaction towards the

marketing mix of Big Bazaar & SPAR Retail. Bangalore.

Customer satisfaction is determined by whether the total shopping experience has met

or exceeded the expectation. Customer satisfaction towards the marketing mix of the

retailer is important because it costs the average retailer four times to get a new

customer into store as it does to retain the customer. Retailer has to provide the

customer with good quality products and customer services. The services ranges from

ease of shopping, ease of transactions and post purchase support.

If the customer is dissatisfied with either the product offered or services provided;

then that customer is less likely to choose that retailer in the future, thus decreasing

the future sales. Todays consumers are fussier than ever and demanding perfection.

So a comparative study between the marketing mixes of Big Bazaar and SPAR will

give a detailed information about the customer satisfaction towards them and their

influence in consumer buying behaviour.

KRISTU JAYANTI COLLEGE OF MANAGEMENT AND TECHNOLOGY, BANGALORE

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2.1 TITLE OF THE DISSERTATION

A comparative study on customer satisfaction towards the marketing mix of Big

Bazaar & SPAR Retail. Bangalore.

2.2 STATEMENT OF THE PROBLEM

An attempt is made to find out the customers satisfaction towards the marketing

mixes of two major retailers i.e. Big Bazaar & SPAR Retail, Bangalore. A retailer is

successful only if he can match his products and services with that of the needs of his

customer. A mix of products, price, place, promotion, physical evidences, people and

process meet the physical and emotional needs of the consumer.

Customer satisfaction is the key to the profitability of retailing in India and it implies

the retention of customers for the long term, which is cheaper than attracting new

customers. In the current scenario of retailing in the India particularly with retailers

becoming larger and the closure of small retailers, the question arises whether the

customers are satisfied or otherwise and what are the elements of retailing which lead

to the satisfaction or dissatisfaction of customers. The knowledge of current levels of

satisfaction and, in particular, the key determinants of satisfaction benefit those in the

industry allowing them to focus and build upon key areas that lead to highly satisfied

customers.

2.3 OBJECTIVES OF THE STUDY

To know the satisfaction level of consumers towards the marketing mix of Big

Bazaar & SPAR Retail.

To know about significance product quality in customer satisfaction.

To determine suggestions for improvement of services & store atmosphere.


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2.4 NEED OF THE STUDY

Indian retail industry is growing in a good momentum. Increasing competition makes

it difficult for any company to gain competitive advantage over the competitors.

Retailing is a low margin, high volume , commodity business where profitability gets

strained as competition intensifies.

Customer satisfaction is the key to the profitability of retailing in India and it implies

the retention of customers for the long term, which is cheaper than attracting new

customers. A perfectly planned marketing mix helps to meets the expectations of the

customer and helps to provide him satisfaction & delight.

The study will help to understand whether the customers are satisfied with the

marketing mixes of Big Bazaar & SPAR Retail. It also helps to understand the

customers buying behaviour.

2.5 HYPOTHESES

H1:

Customer satisfaction towards the SPAR Retail is more than that of Big Bazaar

H0:

Customer satisfaction towards the SPAR Retail is not more than that of Big Bazaar

2.6 RESEARCH METHODOLOGY

2.6.1 Sampling techniqueSample is the fraction of the population; sampling is a technique or a method of

selection of samples. The researcher in carrying out this research is adopted the most

appropriate sampling technique for research that is the Simple Random Sampling

technique.

According to the simple random sampling method it is assumed that entire population

is homogeneous and the samples are selected in such a way that each and every unit in

the population has equal chance of occurrence or equal probability of occurrence. In


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other words the sampling units are selected randomly. Since random sampling implies

equal probability to every unit in the population, it is necessary that the selection of

the sample must be free from human judgment.

2.6.2 SOURCES OF DATA

The primary data used by the researcher is a set of questions in a questionnaire

collected from the respondents. Secondary data are those data that have already been

collected by some one else. The secondary data for the study was collected from

various books, project reports, company records and websites.

2.6.3 SAMPLING PLAN

It was unable to cover the whole within the limited time available. So sampling

method was used for the study. A respective portion of the population was used to

obtain the data required for the study.

Sample Size

The sample taken is 100. i.e. 50 respondents from Big Bazaar and 50 respondents

from SPAR Retail, Bangalore

2.6.4 RESEARCH INSTRUMENTS

The instrumentation technique is divided into two basic parts:

1) Tools used for data collection.

2) Tools used for analyzing the data.

Tools used for data collection (Questionnaire)

The researcher have used Self-completion questionnaire, to collect information from

the respondents.

Tools used for analyzing the data (Bar Graphs, Pie-charts and Z- test)

A combination of bar graphs and pie-charts were used to analyze and interpret the

data. Bar graphs and Pie-charts were used to represent the opinions of the respondents


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in terms of percentages. In addition to this hypotheses were formulated to assist in

analyzing the research. The software that was used to analyze the data was SPSS

Package.

2.6.5 DATA ANALYSIS AND INTERPRETATION

The data was processed after collection and analyzed in accordance with the outline

laid down for the purpose. The data was edited, classified and tabulated for analysis.

Analysis of data involves a number of operations, which are performed with the

purpose of summarizing the collected data and organizing these in such a manner that

they answer the research questions. Percentage analysis is used for analysis of data

and the results have been presented by way of pie charts and bar diagrams.

After analysis, the phase of interpretation starts. This is done by drawing inferences

from analyzed data. After interpretations, a report was prepared on the basis of

inferences.

2.7 SCOPE OF THE STUDY

This study conducted will help to understand the customer satisfaction level towards

the marketing mixes deployed by Big Bazaar & SPAR Retail. But the scope of the

study is limited to 100 customers in the area of Koramangala, Bangalore. So it may

not represent the behaviour of entire customers of Big Bazaar & SPAR Retail.

2.8 LIMITATIONS OF THE STUDY

The study is restricted to 100 respondents.ie 50 customers of Big Bazaar & 50

customers from SPAR Retail in the area of Koramangala, Bangalore.

Uncooperative respondents.

The sample population may not represent the entire population.


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2.9 REVIEW LITERATURE

Marketing affects almost every aspect of todays daily life. Modern age is the age

of marketing. Marketing is a dynamic, exciting and challenging activity. Today the

success or failure of a company and its product in the market place depend largely on

the adoption of effective marketing strategy by the company.

2.9.1 Meaning and Definition of Marketing

In common practice Marketing means the process of distribution of goods and

services. The aim of marketing is to make sales in order to earn reasonable profit for

the product. The term marketing embraces all resources and activities necessary to

direct and facilitate the flow of goods and services from the producer to the customer.

Philip Kotler defines marketing as human activity directed at satisfying need and

wants through exchange process. According to him activities such as product

development, search, communication, distribution, pricing and service contribute the

core of marketing activities.

2.9.2 Objectives of Marketing

Barker and Ashen says, The end of all marketing activities is the satisfaction of

human wants.

Though the satisfaction of human wants, profits are rewarded to the business and the

reward is inducement of marketing.

The following are the aims of marketing:

Intelligent and capable application of modern marketing policies.

To develop the marketing field.

To develop guiding policies and this implementation for a good result.

To suggest solutions by studying the problems relating to marketing.

To take appropriate activities in the course of action.


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2.9.3 Functions and Importance of Marketing

As a country becomes more industrialized and urbanized, marketing becomes

functionally more important. Marketing is a connecting link between

the consumer and the producer. It helps in increasing the living standard of people. It

helps to increase the nations income. Marketing process increases employment

opportunity.

Therefore marketing is a total system of business activities designed to plan, price,

promote and distribute want-satisfying goods and services goods and services to

prevent and potential customer. Thus, greater marketing effort is required in case of

more industrialized and urbanized societies. So, marketing has to play a vital role not

only in profit making, but in non-profit making organization also. It includes buying,

selling, transporting, storing, standardization and grading, financing, risk taking and

marketing information.

2.9.4 The Exchange Functions

Buying and selling lead to exchange. The buying function involves looking for and

evaluating goods and services. The selling function involves promoting the products.

It includes the use of personal selling and advertising and other mass selling methods.

2.9.5The Physical Distribution Functions

The transporting function means the movement of goods from one place to another.

The storing function involves holding goods. These are the major activities of many

marketing institutions especially warehouse transportation agencies, wholesalers and

some retailers.

2.9.6 The Facilitating Functions

Standardization and grading, financing, risk taking and market information are the

functions included in this head.


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2.9.7 Modern Marketing Strategies

Marketing strategy of a firm is the complete and unbeatable plan or instruments

designed specifically for attaining the marketing objectives of the firm. According to

Philip Kotler, marketing strategy is the basic approach that the business unit will use

to achieve its objectives and it consists of brand decisions on target markets,

marketing positioning and mix and marketing expenditure level.

Designing the product, forms perk of marketing strategy. While marketing the

products, the management paces several problems. The strategies are intended to

overcome such difficult situations and to maximize profits.

2.10 Consumer Behaviour

2.10.1 What is the buyer behaviour?

All the behaviour of human beings during the purchase may be termed as buyer

behaviour. The process whereby individuals decide whether, what, when, how and

from whom to purchase goods and services, can be termed as the consumer

behaviour or the buyers behaviour".

The studies on the spending pattern of consumers over consumption reveal the

influences of several economic factors. They are disposable income, size of family,

family income etc. with the widespread use of television, circulation of magazines and

the increasing mobility of consumers, fashion news is spreading like wildfire

2.10.2 Perception

Perception is the process by which an individual selects, organizes, and interprets

information inputs to create a meaningful picture of the world. Perception depends not

only on the physical stimuli, but also on the stimulis relation to the surrounding field

and on conditions within the individual. The key point is that perceptions can vary

widely among individuals exposed to the same reality. One person might perceive a

fast-talking salesperson as aggressive and insincere; another, as intelligent and

helpful. Each will respond differently to the salesperson.


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In marketing, perceptions are more important than the reality, as it is perceptions that

will affect consumers actual behaviour. People can emerge with different

perceptions of the same object because of three perceptual processes: selective

attention, selective distortion, and selective retention.

2.10.3 Importance of Customer Satisfaction

The concept customer is the king has much significance in marketing a product.

The product has to be ultimately accepted by him. Hence, a product should have some

marketing characteristics, which a consumer should accept.

The marketing concept was born out of the, determination of consumer wants and

ends with the satisfaction of their want. The purpose of any business is to create a

customer. It is the customer who determines what a business is: it is the customer and

alone who through being willing to pay for goods or services, converts economic

resources into wealth, things into goods.

The rest which determine a consumers acceptability of a product are:

1. The product should have attractive and pleasing appearance.

2. It should be convenient to purchase and easy to consume.

3. The product should be useful to the consumers.

4. Competitive and combative price of the product with the existing competitors or

substitutes of the product.

5. Stability of demand for the product is to be assured.

6. The distribution channels should be capable of supplying the entire demand of

the product.

2.11 MARKETING MIX

The retailers product assortment must match the target markets shopping

expectations. The retailer has to decide on product-assortment breadth and depth.

Pre-purchase services include accepting telephone and mail orders, advertising,

window and interior display, fitting rooms, shopping hours, fashion shows, trade-ins.


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Post purchase services include shipping and delivery, gift wrapping, adjustments and

returns, alterations and tailoring, installations, engraving. Ancillary services include

general information, check cashing, parking, restaurants, repairs, interior decorating,

credit, rest rooms, and baby-attendant service.

Prices are a key positioning factor and must be decided in relation to the target

market, the product-and-service assortment mix and competition. All retailers would

like to achieve high volumes and high gross margins.

Retailers use a wide range of promotion tools to generate traffic and purchases. They

place ads, run special sales, issue money-saving coupons and run frequent shopper-

reward programs, in-store food sampling and coupons on shelves of at checkout

points. Each retailer must use promotion tools that support and reinforce its image

positioning.

Retailers are accustomed to saying that the three keys to success are location,

location and location. Customers generally choose the nearest bank and gas station.

Department-store chains, oil companies and fast-food franchisers exercise great care

in selecting locations.

Atmosphere is another element in the store arsenal. Every store has a physical layout

that makes it hard or easy to move around. Every store has a Look. The store must

embody a planned atmosphere that suits the target market and draws consumers

toward purchase.


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2.12 CHAPTER SCHEME

Chapter 1: Introduction

This chapter deals with the introduction of various marketing concepts. It also

includes the concept of marketing mixes, customer satisfaction & retailing. This also

throws light on the significance of marketing mixes towards customer satisfaction in

retail industry.

Chapter 2: Research DesignThis chapter describes the objective of study, research Methodology that has been

followed in the project to collect and analyse the data. It also describes the various

statistical tools and techniques that are used in the project.

Chapter 3: Profile of the industry and companies

This chapter gives detailed information about the industry and company. Its history,

the various activities undertaken by the organization.

Chapter 4: Analysis and interpretation of data

This chapter deals with the analysis of the collected data by using various tables and

charts. It also provides interpretation and inferences of the collected data.

Chapter 5: Summary of findings, conclusion and recommendations

This chapter lists out the various findings made after analyzing the data and the

various suggestions offered by the customers.


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3.1 RETAIL INDUSTRY PROFILE

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.

It is expected that by 2016 modern retail industry in India will be worth US$ 175- 200

billion. India retail industry is one of the fastest growing industries with revenue

expected in 2012 to amount US$ 420 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 2011 from the current size.

Shopping in India have witnessed a revolution with the change in the consumer

buying behaviour 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 centres, and sprawling complexes which offer food, and

everything.

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 2011, India may have 600 new shopping centres.

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.

India retail industry is progressing well and for this to continue retailers as well as the

Indian government will have to make a combined effort.


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Retailing includes all the activities involved in selling goods or services directly to

final consumers for personal, non business use. A retailer or retail store is any

business enterprise whose sales volume comes primarily from retailing.

Any organization selling to final consumers whether it is a manufacturer, wholesaler

or retailer is doing retailing. It does not matter how the goods or services are sold or

where they are sold.

Segments in Indian Retail Industry

The retailing segment of India can be split into two. They are informal and formal

retailing sectors. The informal retailing sector is comprised of small retailers. For this

sector, it is very difficult to implement the tax laws also it is cumbersome to regulate

the labour laws in this sector. As far as the formal retailing sector is concerned, it is

comprised of large retailers. Stringent tax and labour laws are implemented in this

sector. If the retail industry is divide on the basis of retail formats then it can be split

into the modern format retailers and traditional retail formats.

The modern format includes supermarkets, hypermarkets, departmental stores,

speciality chain and company owned retail chains.

Traditional format includes Kiranas, street markets and multiple brand outlets.

The growth in the Indian organised retail market is mainly due to the change in the

consumers behaviour. This change has come to consumer due to increased income,

changing lifestyle and patterns of demography which are favourable.

The growth factors of organised retail in India are

Increase in per capita income

Demographical changes and improvements in standard of living

Improvements in infra structure

Entry to various sources of financing

3.1.1 TYPES OF RETAIL FORMATS

Retail industry is continuously growing through changes on account of liberalization,

globalization and consumer preferences. While multi nationals retail chains are

looking for new markets, manufacturers are identifying, redefining or evolving new

retail formats.


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SPECIALITY STORE: Narrow product line with a deep assortment. A clothing

store would be a single-line store; a mens clothing store would be a limited-line

store; and a mens custom-shirt store would be a super speciality store

DEPARTMENTAL STORE: Several product lines-typically clothing, home

furnishings, and household goods-with each line operated as a separate department

managed by specialist buyers or merchandisers

SUPERMARKET: Relatively large, low-cost, low-margin, high-volume, self-service

operation designed to serve total needs for food, laundry and household products.

CONVENIENCE STORE: Relatively small store located near residential area, open

long hours, seven days a week and carrying a limited line of high-turnover

convenience products at slightly higher prices, plus takeout sandwiches, coffee, soft

drinks.

DISCOUNT STORE: Standard merchandise sold at lower prices with lower margins

and higher volumes. Discount retailing has moved into speciality merchandise stores,

such as discount sporting-goods stores, electronics stores and bookstores.

OFF-PRICE RETAILER: Merchandise bought at less than regular wholesale prices

and sold at less than retail; often leftover goods, overruns and irregulars.

SUPERSTORE: About 35000 square feet of selling space traditionally aimed at

meeting consumers total needs for routinely purchased food and non-food items, plus

services such as laundry, dry cleaning, shoe repair, check cashing, and bill paying. A

new group called category killers carries a deep assortment in a particular category

and a knowledgeable staff.

CATALOGUE SHOW ROOM: Broad selection of high-mark-up, fast-moving,

brand-name goods at discount prices. Customers order goods from a catalogue, and

then pick these goods up at a merchandise pickup area in the store.

LEVELS OF SERVICE: The wheel-of-retailing hypothesis explains one reason that

new store types emerge. Conventional retail stores typically increase their services

and raise their prices and less service. New store types meet widely different

consumer preferences for service levels and specific services.

Retailers can position themselves as offering one of four levels of service:


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Self service: Self service is the cornerstone of all discounts operations. Many

customers are willing to carry out their own locate-compare-select process to

save money.

Self-selection: Customers find their own goods, although they can ask for

assistance.

Limited service: These retailers carry more shopping goods and customers

need more information and assistance. The stores also offer services (such as

credit and merchandise-return privileges).

Full service: Salespeople are ready to assist in every phase of the locate-

compare-select process. Customers who like to be waited on prefer this type of

store. The high staffing cost, along with the higher proportion of specialty

good as and slower-moving items and the many services, results in high-cost

retailing.

3.1.2 MARKETING DECISIONS IN RETAIL INDUSTRY

In the past retailers held customers by offering convenient location, special or unique

assortments of goods, greater or better services than competitors and store credit

cards. All of this has changed. Today, national brands such as Calvin Klein, Izod and

Levis are found in department stores, in their own shops, in merchandise outlets and

in off-price discount stores. In their drive for volume, national-brand manufacturers

have placed goods everywhere. The result is that retail-store assortments have grown

more alike.

Service differentiation also has eroded. Many department stores trimmed services and

many discounters have increased services. Customers have become smarter shoppers.

They do not want to pay more for identical brand, especially when service differences

have diminished; nor do they need credit from a particular store, because bank credit

cards are almost universally accepted.

Supermarkets have opened larger stores, carry a larger number and variety of items

and upgrade facilities. Supermarkets have also increased their promotional budgets

and moved heavily into private brands. Retailers marketing decisions in the areas of


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target market, product assortment and procurement, services and store atmosphere,

price, promotional and place.

Target Market: A retailers most important decision concerns the target market. Until

the target market is defined and profiled, the retailer cannot make consistent decisions

on product assortment, store dcor, advertising messages and media, price and

services levels. Some retailers have defined their target markets quite well:

Product assortment and procurement: The retailers product assortment must match

the target markets shopping expectations. The retailer has to decide on product-

assortment breadth and depth. The real challenge begins after defining the stores

product assortment and that is to develop a product-differentiation strategy.

3.1.3 SERVICES

Retailers must also decide on the services mix to offer customers:

Pre-purchase services include accepting telephone and mail orders,

advertising, window and interior display, fitting rooms, shopping hours,

fashion shows, trade-ins.

Post-purchase services include shipping and delivery, gift wrapping,

adjustments and returns, alterations and tailoring, installations, engraving.

Ancillary services include general information, check cashing, parking,

restaurants, repairs, interior decorating, credit, rest rooms, and baby-attendant

service.

The services mix is a key tool for differentiating one store from another; so is

atmosphere.

3.1.4 STORE ATMOSPHERE

Atmosphere is another element in the store arsenal. Every store has a physical layout

that makes it hard or easy to move around. Every store has a Look. The store must

embody a planned atmosphere that suits the target market and draws consumers

toward purchase.

3.1.5 PRICING


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Prices are a key positioning factor and must be decided in relation to the target

market, the product-and-service assortment mix and competition. All retailers would

like to achieve high volumes and high gross margins. They would like high Turns x

Earns, but the two usually do not go together. Most retailers fall into the high-

makeup, lower-volume group (fine specialty stores) or the low-mark-up, higher-

volume group (mass-merchandisers and discount stores). Within each of these groups

are further gradations).

Retailers must also pay attention to pricing tactics. Most retailers will put low prices

on some items to serve as traffic builders or loss leaders. They will run storewide

sales. They will plan markdowns on slower-moving merchandise.

Some retailers have abandoned sales pricing in favour of everyday low pricing

(EDLP). EDLP could lead to lower advertising costs, greater pricing stability, a

stronger image of fairness and reliability and higher retailer profits. Frank Feather

cites a study showing that supermarket chains practicing everyday low pricing are

often more profitable than those practicing sales pricing.

3.1.6 PROMOTION

Retailers use a wide range of promotion tools to generate traffic and purchases. They

place ads, run special sales, issue money-saving coupons and run frequent shopper-

reward programs, in-store food sampling and coupons on shelves of at checkout

points. Each retailer must use promotion tools that support and reinforce its image

positioning. Fine stores will place tasteful full-page ads in magazines such as Vogue

and Harpers. They will carefully train salespeople to greet customers, interpret their

needs, and handle complaints.

3.1.7 PLACE

Retailers are accustomed to saying that the three keys to success are location,

location and location. Customers generally choose the nearest bank and gas station.

Department-store chains, oil companies and fast-food franchisers exercise great care


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in selecting locations. Retailers can locate their stores in the central business district, a

regional shopping centre, a community shopping centre, a shopping strip, or within a

larger store.

General business districts: This is the oldest and most heavily trafficked city

area, often known as downtown. Store and office rents are normally high.

Most downtown areas were hit by a flight to the suburbs in the 1960s,

resulting in deteriorated retailing facilities; but in the 1960s, a minor

renaissance of interest in downtown apartments, stores and restaurants began

in many cities.

Regional shopping centres: These are large suburban malls containing 40 to

200 stores. They usually draw customers from a 5 to 20 mil radius. Malls are

attractive because of generous parking, one-stop shopping, restaurants and

recreational facilities. Successful malls charge high rents and may get a share

of stores sales.

Community shopping centres: these are smaller malls with one anchor store

and between 20 and 40 smaller stores.

Strip malls (also called shopping strips): these contain a cluster of stores,

usually housed in one long buildings, serving a neighbourhoods needs for

groceries, hardware, laundry, shoe repair and dry cleaning. They usually

serve people within a five to tenminute driving range.

A location within a larger store: Certain well-known retailers-McDonaldss,

Starbucks, Nathans, Dunkin Donuts-locate new, smaller units as

concession space within larger stores or operations such as airports, schools

or department stores.

In view of the relationship between high traffic and high rents, retailers must decide

on the most advantageous locations for their outlets. They can use a variety of

methods to assess locations, including traffic counts, surveys of consumer shopping

habits and analysis of competitive locations. Several models for site location have

also been formulated.

Retailers can assess a particular stores sales effectiveness by looking at four

indicators:


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1. Number of people passing by on an average day.

2. Percentage who enter the store

3. Percentage of those entering who buy

4. Average amount spent per sale.

3.1.8 TRENDS IN RETAIL INDUSTRY

At this point, the main developments retailers and manufacturers need to take into

account in planning competitive strategies.

New retail forms and combinations: some supermarkets include bank

branches.

Growth of intertype competition: Different types of storesdiscount stores,

catalogue showrooms, department stores-all compete for the same consumers

by carrying the same type of merchandise.

Growth of giant retailers: Through their superior information systems,

logistical systems, and buying power, giant retailers are able to deliver good

service and immense volumes of product at appealing prices to masses of

consumers. They are crowding out smaller manufacturers what to make, how

to price and promote, when and how to ship and even how to improve

production and management. Manufacturers need these accounts; otherwise

they would lose 10 to 30 percent of the market.

Growing investment in technology: Retailers are using computers to produce

better forecasts, control inventory costs, order electronically from suppliers,

send e-mail between stores and even sell to customers within stores. They are

adopting checkout scanning systems, electronic fund transfer, electronic data

interchange, in-store television, store traffic radar systems and improved

merchandise-handling systems.

Global presence of major retailers: Retailers with unique formats and strong

brand positioning are increasingly appearing in other countries.


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Selling an experience, not just goods: Retailers are now adding fun

community in order to compete with other stores and online retailers. There

has been a marked rise in establishments that provide a place for people to

congregate, such as coffeehouses, tea shops, juice bars, book shops.

Competition between store-based and non-store-based retailing:

Consumers now receive sales offers through direct mail letters and catalogs

and over television, computers and telephones. These non-store-based retailers

are taking business away from store-based retailers. Some store based retailers

initially saw online retailing as a definite threat.

3.2 COMPANT PROFILE

3.2.1 BIG BAZAAR -PROFILE

Big Bazaar is the chain of retail stores of the big banner Pantaloon Retail(India) Ltd,

which in turn is a segment of the Mr. Kishore Biyani , regulated Future Group of

companies.The customer friendly ambience and organised retailing of products make

Big bazaar one of the successful retail companies in India.

BIG BAZAAR OVERVIEW

Big Bazaar , a part of the Pantaloon group is a hypermarket offering huge array of

good quality products at affordable prices. Big Bazaar with over 50 outlets in different

parts of India is present in both the metro cities as well as in the small towns.

Pantaloon is also planning catalogue stores, to be called Big Bazaar Unlimited, in

association with its electronic commerce unit, Future Bazaar India Ltd, and take this

format to small towns. These small shops would display catalogues from which

customers can order merchandise to be delivered at home.

It is also going ahead with its aggressive strategy for the hypermarket format.

Currently, it operates 91 Big Bazaar hypermarkets and plans to double that number in

the next one year.


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Big Bazaar is the biggest revenue and profit generator for Pantaloon. The company

announced revenues of Rs3,236 crore for the fiscal year ended June 2008 with a net

profit of Rs120 crore. Pantaloon begins its fiscal year in July.

The significant features of Big Bazaar:

Shopping in the Big Bazaar is a great experience as one can find almost everything

under the same roof. It has different features which caters all the needs of the

shoppers.

Some of the significant features of Big Bazaar are:-

THE FOOD BAZAAR: is the grocery with the department selling fruits and

vegetables

FURNITURE BAZAAR: dealing with furniture

ELECTRONIC BAZAAR: deals with electronic goods and cellular phones.

FUTURE BAZAAR.COM: i.e. the online shopping portal which makes

shopping easier as one can shop many products of Big Bazaar at the same

price from home.

Awards and major mile stones :

The Reid and Taylor Awards for Retail Excellence 2008

Retail leadership award : Kishore Biyani

Retail best employer of the year: Future Group

Best Indian website in the shopping category- www.futurebazaar.com

Major Milestones:

2001: Big Bazaar, Is se sasta aur accha kahi nahin- Indias 1 st Hypermarket chain

launched.


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2002: Food Bazaar, the supermarket chain launched

2006:Multiple retail formats including Collection i, Furniture Bazaar, Shoe factory, E-

Zone, Depot, and futute.com are launched across the nation.

Big Bazaar offers the best products at the best prices-thats what they guarantee. Big

Bazaar is not just another hyper market. It caters to every need of a family.

3.2.2 SPAR RETAIL-PROFILE

The $37-billion Dutch retail giant SPAR International comprises 13,700 stores in 33

countries on 4 continents and meets the needs of over 9 million consumers every day.

The expansion of the organisation increased dramatically in the 1990s and continues

now in the new century with Romania, Russia and China being the latest member

countries. 4 provinces in China have already joined the SPAR family, with large

independent retailers bringing the SPAR brand to over 300 million people in China.

SPAR RETAIL INDIA LTD-OVERVIEW

The $37-billion Dutch retail giant SPAR International, which has tied up with the

Max Hypermarkets for its hypermarket foray in India may bring in large format

kirana store under its fold. This could happen in SPARs second phase of expansion

beginning 2009. Along with its India master licensee, Max Hypermarkets, the Dutch

behemoth plans to have sub-licensee arrangements with larger Kirana stores to kick-

start the neighbourhood supermarket format in the country.

Max Hypermarkets, the SPAR partner, opened its first SPAR hypermarket in 2007.

The second store is a supermarket and was opened in early 2008. Plans are advanced


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to accelerate the rate of store openings, with the objective of developing a network of

7 SPAR hypermarkets by the end of 2009.

SPAR is an organisation that provides its customers value for money. SPAR is

passionate about retailing and is driven by committed independent retailers who win

the trust and friendship of their community. Through its commitment to outstanding

service and excellence in fresh foods, SPAR meets the real needs of its customers.

SPAR India has begun to introduce unique products into their range, launching a

highly successful campaign promoting well-known Australian brands. This promotion

has been undertaken with the Australian Trade Council. With a 9% growth in 2007

and a forecast 8% for 2008, the Indian market is experiencing rapid development in

both industry and service sectors. This is resulting in a dramatic increase in spending

power for consumers. SPAR India is confident of growing rapidly in this growing

economy. SPAR India will focus on the enormous market of young people with 52%

of the Indian population being under the age of 25. This will be reflected in the

product offer in both the SPAR hypermarkets and supermarkets.

The significant features of SPAR RETAIL Bangalore:

Products Displayed

Huge building with glass faade simply saying Spar Hypermarket in red and green.

There are books, cameras, shoes and clothes of different brands being sold in their

exclusive spaces. Some open spaces are used to display and sell discounted products

like toys and home accessories available in the hypermarket.

Products we get

The ground floor has a book shop called Odyssey along with a camera shop Pixetra

and an exclusive W store. They also have a Gloria Jeans coffee shop to refresh you

post shopping.

Second floor has the non-food things ie. deodorant, diapers or shampoos and soaps,

steel and non-stick vessels along with plastic knickknacks, curtains, bedspreads,


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pillows, towels and related products. Max Retail, the in-house brand sells their clothes

here too. Childrens books and toys are there and so is a kids play area.

Third floor has all the electronic goods that one needs. From an iron and hair dryer to

plasma screen TVs and car audio systems.

Major milestones:

2007: First SPAR hypermarket2008: Second hypermarket from SPAR-Max group2009:7 supermarkets are supposed to be launched by December

4.1 ANALYSIS OF BIG BAZAAR

Table 4.1 Frequency of customers shopping

Frequency Percent

Valid Weekly 28 56.0

Monthly 7 14.0

Occasionally 15 30.0

Total 50 100.0

Source: primary data

Figure 4.1 Frequency of customers shopping


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INTREPRETATION:

The above collected data reveals that 56% of respondents purchase weekly, 14% of

respondents purchase monthly and 30% of respondents purchase occasionally.

From the analysis it is found that majority of the respondents go for shopping weekly.


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Table 4.2 Customers who are buying regularly from Big Bazaar

Frequency Percent

Valid Yes 37 74.0

No 13 26.0

Total 50 100.0


Figure 4.2


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INTREPRETATION:

The above table shows that 74 % of respondents purchase regularly from Big Bazaar

and 26 % of respondents do not purchase regularly from Big Bazaar.

The analysis indicates that most of the customers buy their products from Big Bazaar.


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Table 4.3 Customers are satisfied with the range of products available in Big Bazaar

Frequency Percent

Valid Yes 44 88.0

No 6 12.0

Total 50 100.0



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Figure 4.3

INTREPRETATION:

The above table shows that 88% of respondents are satisfied with the range of

products available in the Big Bazaar and 12% of respondents are not satisfied with the

range of products available in Big Bazaar.

The survey indicates that most of the customers are satisfied with the range of

products available in Big Bazaar and it is Big Bazaar store has wide range of both

branded and unbranded products and also in different quantities.


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Table 4.4 Rate of the quality of products available in Big Bazaar

Frequency Percent

Valid Excellent 21 42.0

Good 16 32.0

Satisfactory 13 26.0

Total 50 100.0



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Figure 4.4

INTREPRETATION:

The above collected data reveals that 42% of respondents rated the quality of products

as Excellent,32 % as Good and 26 % as Satisfactory.

The analysis reveals that most of the products in the Big Bazaar are satisfactory and

above their expectation.

Big Bazaar caries products that provide value to the customers.


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Table 4.5 Customer satisfaction towards the location of Big Bazaar

Frequency Percent

Valid Yes 50 100.0


Figure 4.5


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INTREPRETATION:

100% of the respondents are satisfied with the store location of Big Bazaar.

The above interpretation shows that Big Bazaar is located in the ideal place. Also

customers are well satisfied with the location of the Big Bazaar. Store is near to their

residence.


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Table 4.6 Customer satisfaction towards the pricing of products available in Big bazaar

Frequency Percent

Valid Yes 44 88.0

No 6 12.0

Total 50 100.0



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Figure 4.6

INTREPRETATION:

The table shows that 88 % of customers are satisfied and 12 % are not satisfied with

the pricing of products in Big Bazaar.

The above analysis shows that the prices of the products in Big Bazaar are

competitively priced.

The customers are satisfied with the pricing of the products in Big Bazaar in this

period of economic slow down.


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Table 4.7 Customer rating about the pricing of products in Big Bazaar

Frequency Percent

Valid Expensive 6 12.0

Affordable 33 66.0

Cheap 11 22.0

Total 50 100.0


Figure 4.7


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INTREPRETATION:

The above table gives a clear picture that 12% of respondents rated the products as

expensive, 66 % as affordable and 22 % of respondents as cheap.

Most of the respondents rated that pricing in Big Bazaar as affordable and they are

satisfied with the pricing decisions.


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INTREPRETATION:

The table shows that 52 % of respondents rated the promotion strategies of big Bazaar

as excellent, 36 % as good and 12 % as satisfactory .

The analysis shows that Big Bazaar has a good and planned promotion strategies to

reach the customers. Majority of the customers rated the strategies as Excellent.


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Table 4.9 Satisfaction of customers towards the sales persons services

Frequency Percent

Valid Yes 37 74.0

No 13 26.0

Total 50 100.0


Figure 4.9


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INTREPRETATION:

The table shows that 74 % of the respondents are satisfied with the sales persons

services and only 26 % respondents are dissatisfied.

The analysis shows that Big bazaar has a number of trained staffs to provide better

services to the customers. Most of respondents said that salespersons voluntarily come

forward to help the customers and they provide clear information about the product.

The customers are satisfied to the services provided by them.


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Table 4.10 Customers satisfied with pre-purchase services

Frequency Percent

Valid Yes 33 66.0

No 17 34.0

Total 50 100.0



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Figure 4.10

INTREPRETATION:

The table shows that 66 % of the respondents are satisfied with the Pre-purchase

services provided by Big Bazaar and 34 % are not satisfied with the Pre- purchase

services.

It is clear that most of the respondents are satisfied with Pre-purchase services.


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Table 4.11 pre-purchase service of Big Bazaar should be improved in

Frequency Percent

Valid Telephone order 17 34.0

Not Applicable 33 66.0

Total 50 100.0



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Figure 4.11

INTREPRETATION:

The table above shows that 34 % respondents recommended to improve the pre

purchase services in Telephone Order.66 % responded that they are satisfied with the

pre purchase services and no need of improvement.

The analysis depicts that Big bazaar s Pre purchase service is lacking in telephone

order and has to improve in that particular dimension.


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Table 4.12 Customer satisfaction towards post-purchase services of Big Bazaar

Frequency Percent

Valid Yes 42 84.0

No 8 16.0

Total 50 100.0


Figure 4.12


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INTREPRETATION:

The table shows that 84 % of the respondents are satisfied with the Post-purchase

services provided by Big Bazaar and 16 % are not satisfied with the Post- purchase

services.

The analysis gives a clear picture that the post purchase services of Big Bazaar is

doing well and by improving in certain aspects they can bring better customer

satisfaction and loyalty.


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Table 4.13 Suggestions for improvement in Post purchase service of Big Bazaar


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Figure 4.13

INTREPRETATION:

The table above shows that 16 % respondents recommended to improve the post

purchase services in Shipping & delivery.84 % responded that they are satisfied with

the post purchase services and no need of improvement.


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The analysis depicts that Big bazaar s Post purchase service is lacking in shipping

and delivery and has to improve in that particular dimension. It is clear that most of

the respondents are satisfied with all other services except shipping and delivery.


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Table 4.14 Customer satisfaction towards the store atmosphere of Big Bazaar

Frequency Percent

Valid Yes 43 86.0

No 7 14.0

Total50 100.0

Figure 4.14

INTREPRETATION:

The data in the above table shows that 86% of respondents are satisfied with the

stores atmosphere and 14% of respondents are not satisfied with the stores atmosphere

of Big Bazaar.


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From the above analysis it is evident that most of the respondents are satisfied with

the store atmosphere of Big Bazaar. It is one of the reasons why the respondents

prefer to go the provision store.


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Table 4.15 Elements that have to be improved in store atmosphere of Big Bazaar

Frequency Percent

Valid Lighting 7 14.0

Missing System 43 86.0

Total

50 100.0


Figure 4.15

INTREPRETATION:

The table above shows that 14 % respondents recommended to improve the lighting

and 86 % responded that they are satisfied with the store atmosphere and no need of

improvement.


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From the above analysis it is evident that most of the respondents are satisfied with

the store atmosphere of Big Bazaar and a small group recommended an improvement

in the lighting of the store.

Table 4.16 Customer satisfaction towards the marketing mix of Big Bazaar


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Frequency Percent

Valid Extremely Satisfied 18 18.0

Satisfied 30 30.0

Not satisfied 2 2.0

Total 50 50.0

Total 100 100.0


Figure 4.16

INTREPRETATION:

The above table clearly indicates that 36% of respondents are Extremely satisfied , 60

% of respondents are satisfied and 4 % not satisfied in the marketing mix of the Big

Bazaar.


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More than 90% of the total respondents are satisfied with the marketing mix in Big

Bazaar. They have a good value for money and a better shopping experience.

4.2 ANALYSIS OF SPAR RETAIL


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Table 4.17 Frequency of customers shopping from SPAR Retail

Frequency Percent

Valid Daily 3 6.0

Weekly 32 64.0

Monthly 15 30.0

Total 50 100.0


Figure 4.17

INTREPRETATION:

The above collected data reveals that 6% of respondents purchase daily,56 % weekly,

20 % of respondents purchase monthly and 4 % of respondents purchase occasionally.


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It is found that majority of the respondents go for weekly shopping which means

respondents frequently go for shopping.

Table 4 .18 Customers who are buying regularly from SPAR Retail


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Figure4.18

INTREPRETATION:


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The above table shows that 60 % of respondents purchase regularly from SPAR Retail

and 40 % of respondents do not purchase regularly from SPAR Retail.

The survey indicates that more than 50 % of the customers do not buy their products

regularly from SPAR Retail


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Table 4.19 Customers are satisfied with the range of products available in SPAR Retail

Frequency Percent

Valid Yes 20 40.0

No 30 60.0

Total

50 100.0


Figure 4.19

INTREPRETATION:


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The above table shows that 40% of respondents are satisfied with the range of

products available in the SPAR Retail and 60% of respondents are not satisfied with

the range of products available in SPAR Retail.

The survey indicates that most of the customers are not satisfied with the range of

products available in SPAR Retail. This sows that though SPAR Retail has wide

range of both branded and unbranded products in different quantities they lack in

certain aspects of customer satisfaction.


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Table 4.20 Customers rating about the quality of products in Spar Retail

Frequency Percent

Vali

d

Excellent 18 36.0

Good 15 30.0


Bad 7 14.0

Total 50 100.0


Figure 4.20

INTREPRETATION:


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The above collected data reveals that 36% of respondents rated the quality of products

as Excellent,30 % as Good , 26 % as Satisfactory and 14 % as bad.

The analysis reveals that most of the products in the SPAR Retail are Excellent and

above their expectation but certain customers have an opinion that the products

available are either damaged or faulty in certain segments and they rated the products

as bad.


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Table 4.21 Customer satisfaction towards the location of Spar Retail

Frequency Percent

Valid Yes 30 60.0

No 20 40.0

Total 50 100.0


Figure 4.21

INTREPRETATION:


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60% of the respondents are satisfied with the store location of SPAR Retail and 40 %

are not satisfied. The above interpretation shows that SPAR Retail is located in the

ideal place at the same time a certain group of people revealed that they are not

satisfied with the location of the SPAR Retail and for them location is a major

constrain .


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Table 4.22 Customer satisfaction towards the pricing of products available in Spar Retail

Frequency Percent

Valid Yes 17 34.0

No 33 66.0

Total

50 100.0


Figure 4.22

INTREPRETATION:


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The table shows that 34% of customers are satisfied and 66 % are not satisfied with

the pricing of products in SPAR Retail.

The analysis shows that the prices of the products in SPAR Retail are not

competitively priced. The customers are very much dissatisfied with the pricing of the

products in SPAR Retail.


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Table 4.23 Customer rating towards the pricing of products in Spar Retail

Frequency Percent

Valid Highly Expensive 9 18.0

Expensive 25 50.0

Affordable 11 22.0

Cheap 5 10.0

Total 50 100.0


Figure 4.23

INTREPRETATION:


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The above table gives a clear picture that 18% of respondents rated the products as

highly expensive ,50 % as expensive , 22 % as affordable and 10 % of respondents as

cheap. Most of the respondents rated that pricing in SPAR Retail is not affordable and

they are not satisfied with the pricing decisions.


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Table 4.24 Customer rating towards the promotion strategies of Spar Retail

Frequency Percent

Valid Excellent 5 10.0

Good 10 20.0


Bad 15 30.0

Total 50 100.0


Figure 4.24

INTREPRETATION:


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The table shows that 10 % of respondents rated the promotion strategies of big Bazaar

as excellent, 20 % as good, 40 % as satisfactory and 30 % as bad.

The analysis shows that SPAR Retail has a good promotion strategies. It also shows

that certain customers rated the promotion strategies as bad which implies poor reach

ability and clarity of promotions.


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Table 4.25 Customers satisfaction towards the sales persons services

Frequency Percent

Valid Yes 18 36.0

No 32 64.0

Total 50 100.0


Figure 4.25

INTREPRETATION:


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The table shows that 36% of the respondents are satisfied with the sales persons

services and 64 % respondents are dissatisfied.

The analysis shows that SPAR Retail dont have a number of trained staffs to provide

better services to the customers. Most of respondents said that salespersons wont

come forward to help the customers and they provide only vague information about

the products displayed. Majority of the customers are not satisfied to the services

provided by them.


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Table 4.26 Customer satisfaction towards pre-purchase services

Frequency Percent

Valid Yes 28 56.0

No 22 44.0

Total

50 100.0


Figure 4.26

INTREPRETATION:


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The table shows that 56 % of the respondents are satisfied with the Pre-purchase

services provided by SPAR Retail and 44 % are not satisfied with the Pre- purchase

services.

It is clear that more than half of the respondents are satisfied with Pre-purchase

services


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Table 4.27 Pre-purchase service of Spar Retail should be improved in

Frequency Percent

Valid Telephone order 25 50.0

Advertising 25 50.0

Total 50 100.0

Total 50 100.0


Figure 4.27

INTREPRETATION:


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The table above shows that 50 % of respondents recommended to improve the pre

purchase services in Telephone Order and 50 %% in Advertising of SPAR Retail.

The analysis depicts that SPAR Retail s Pre purchase service is lacking in telephone

order , Advertising and need improvement in these services.


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Table 4.28 Customer satisfaction towards post-purchase services

Frequency Percent

Valid Yes 33 66.0

No 17 34.0

Total 50 100.0


Figure 4.28

INTREPRETATION:


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The table shows that 66 % of the respondents are satisfied with the Post-purchase

services provided by SPAR Retail and 34% are not satisfied with the Post- purchase

services.

The analysis gives a clear picture that the post purchase services of SPAR Retail is

satisfactory and by improving in certain aspects they can bring more foot falls.


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Table 4.29 Post-purchase service of Spar Retail should be improved in

Frequency Percent

Valid Shipping & Delivery 11 22.0

Adjustments & Returns 6 12.0

No Need 33 66.0

Total 50 100.0


Figure 4.29

INTREPRETATION:


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The table above shows that 22 % respondents recommended to improve the post

purchase services in Shipping & delivery and 12 % in Adjustments and returns.66 %

responded that they are satisfied with the post purchase services and no need of

improvement.

The analysis depicts that SPAR Retail s Post purchase service is lacking in shipping

and delivery, adjustments and returns. Post purchase services help to bring the

customers back to the retailer again and again.


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Table 4.30 Customer satisfaction towards store atmosphere

Frequency Percent

Valid Yes 35 70.0

No 15 30.0

Total50 100.0


Figure 4.30

INTREPRETATION:


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The data in the above table shows that 70% of respondents are satisfied with the

stores atmosphere and 30 % of respondents are not satisfied with the stores

atmosphere of SPAR Retail.

From the analysis it is evident that most of the respondents are satisfied with the store

atmosphere of SPAR Retail and a certain portion of the customers rated that the

layout need improvement.


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Table 4.31 Store atmosphere of Spar Retail have to be improved in

Frequency Percent

Valid Physical layout 11 22.0

Lighting 4 8.0

No Need 35 70.0

Total 50 100.0


Figure 4.31

INTREPRETATION:


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The table above shows that 22 % respondents recommended to improve the Physical

layout and 8 % to improve in lighting. 70 % responded that they are satisfied with the

store atmosphere and no need of improvement.

From the analysis it is evident that most of the respondents demanded an

improvement in the physical layout and Lighting of SPAR Retail .A better store

atmosphere makes the customers stay in the store for a longer time and this could be

turned to sales if tackled appropriately.


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Table 4.32 Customer satisfaction towards the marketing mix at Spar Retail

Frequency Percent

Valid Extremely Satisfied 7 7.0

Satisfied 14 14.0

Not satisfied 13 13.0

Not at all satisfied 16 16.0

Total 50 50


Figure 4.32

INTREPRETATION:


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The analysis makes it clear that more than 50% of the total respondents are not

satisfied with the marketing mix at SPAR Retail.

They dont have a good value for money and they expect a better shopping

experience.


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4.3 CROSS TABULATION-PRICING OF PRODUCTS IN BIG BAZAAR AND SPAR

Table 4.33


Figure 4.33


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INTREPRETATION:

The pricing of products plays an important role in customer satisfaction. Customers

always tend to purchase quality and at the same time low priced products. The pricing

decision of Big Bazaar & SPAR is compared with. As a result out of the 44

respondents who are satisfied with the pricing decision of Big bazaar 17 are satisfied

with the pricing decision of SPAR retail and the rest 27 are not satisfied with SPAR.

Out of the 6 who are not satisfied with the Big Bazaar pricing decision are not also

satisfied with SPAR Retail.

Therefore customers are more satisfied with the pricing decision of Big Bazaar.


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4.4 CROSS TABULATION QUALITY OF PRODUCTS IN BIG BAZAAR & SPAR

.

Table 4.34


Figure 4.34


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INTREPRETATION:

Out of the 21 respondents who rated the quality of the products in Big Bazaar

excellent , 18 respondents rated the quality of the quality of product in SPAR

excellent and the rest 3 respondents rated it as good. Out of the 16 respondents who

rated the quality of the products in Big Bazaar good, 12 respondents rated the quality

of the quality of product in SPAR good and the rest 4 respondents rated it as

satisfactory. Out of the 13 respondents who rated the quality of the products in Big

Bazaar satisfactory, 6 respondents rated the quality of the product in SPAR

satisfactory and the rest 7 respondents rated it as bad. None of the respondents rated

the quality of the products as bad in Big Bazaar whereas 7 respondents rated the

quality of products as bad in SPAR.


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4.5 CROSS TABULATION PROMOTION STRATEGIES OF BIG BAZAAR & SPAR

Table4.35


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Figure 4.35

INTREPRETATION:

Out of 26 respondents who were of the opinion that the promotion strategy of Big

Bazaar as excellent 5 respondents rated it as excellent in SPAR, 10 respondents rated

it as good, and the rest 11 as satisfactory. Out of 18 respondents who were of the

opinion that the promotion strategy of Big Bazaar as good, 3 respondents rated it as

satisfactory in SPAR and 15 respondents rated it as bad. Out of the 6 respondents who

rated the promotion strategy as satisfactory in Big Bazaar also rated as satisfactory in

SPAR too.


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Z-TEST

4.6 CUSTOMER SATISFACTION TOWARDS BIG BAZAAR AND SPAR

Table 4.36

Ranks

N Mean Rank Sum of Ranks

Customer satisfaction towards

the marketing mix at Spar

Retail - Customer satisfaction

towards the marketing mix at

Big Bazaar

Negative Ranks 0a .00 .00

Positive Ranks 40b 20.50 820.00

Ties 10c

Total50

a. Customer satisfaction towards the marketing mix at Spar Retail < Customer satisfaction towards

the marketing mix at Big Bazaar


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Test Statisticsb,c

Customer

satisfactiontowards the

marketing mix at

Spar Retail -

Customer

satisfaction

towards the

marketing mix at

Big Bazaar

Z -5.734a

Asymp. Sig. (2-tailed) .000

Monte Carlo Sig. (2-tailed) Sig. .000

95% Confidence Interval Lower Bound .000

Upper Bound .030

Monte Carlo Sig. (1-tailed) Sig. .000

95% Confidence Interval Lower Bound .000

Upper Bound .030

a. Based on negative ranks.

b. Wilcoxon Signed Ranks Test

INTREPRETATION:

For hypothesis testing Z test is used.

The total number of respondents involved in the study was 100.

At 5 % level of significance, the calculated value is : -5.734a

Here the table value is 1.96.

That is -5.734


98/105

The study conducted to know the satisfaction level of consumers towards the

marketing mix of Big Bazaar & SPAR Retail, significance of product quality in

customer satisfaction and to determine suggestions for improvement of services &

store atmosphere revealed several findings. The findings were observed by taking into

account the response of the customers via questionnaire.

The Marketing department needs to carefully observe the findings of the study to

design future changes in the marketing mix.

The study has shown that more than 60 % respondents go for weekly

shopping.

74 % of the respondents at Big Bazaar said that they regularly buy products

from Big Bazaar itself whereas in SPAR Retail only 60 % buy products from

there regularly.

Big Bazaar customers said that they are satisfied with the range of products

available in Big Bazaar but only few respondents are satisfied with the

products in SPAR Retail.

Majority of Big Bazaar customers rated the products at Big Bazaar as

excellent and good while a small number of SPAR customers only rated the

products as of excellent and good quality.

All the customers of big Bazaar said that the store is located at the ideal place

where as in SPAR ,60 % marked that store location is not supporting for their

shopping activities.

Pricing of products plays a major role in customer satisfaction. Around 88%

customers of big Bazaar are satisfied with the pricing of products but in SPAR

the satisfaction level is 34 % only.

88 % customers of Big Bazaar is at an opinion that the prices of products are

either affordable or cheap.

Big Bazaar customers have an opinion that the promotion strategies are

excellent and they are reaching the targeted customers.

74 % of the customers at Big Bazaar are satisfied with the salespersons

services available there but in SPAR its minimal.


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The customers satisfaction towards pre purchase services of both the Big

Bazaar and SPAR is 66 % and 56 % respectively.

Both the respondents of Big Bazaar & SPAR recommended improvement in

Telephone order and in advertisements.

The customers satisfaction towards post purchase services of both the Big

Bazaar and SPAR is 84 % and 66 % respectively.

16 % of respondents of Big Bazaar recommended an improvement in the

Shipping, delivery services of Big Bazaar where as in SPAR 22 % respondents

recommended improvement in Shipping, delivery and a few in adjustments.

Customers of Big Bazaar & SPAR are satisfied with the store atmosphere.

14 % customers of Big Bazaar recommended an alteration in the physical

layout of the store for better shopping experience whereas in SPAR it was 22

%.Another 8 % of SPAR customers recommended an improvement in the

lighting of the store.

More than 90 % of the respondents rated that they are satisfied with the overall

marketing mix of Big Bazaar but in SPAR around 50 % of the customers are

dissatisfied with the marketing mix.

5.2 CONCLUSIONS


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The research shows that there are number of reasons that the respondents often go to

Big Bazaar, because of a wide variety of quality of products, price deduction on total

purchase, free home delivery, good packing, and excellent services from salesperson.

The location is the prime factor that determines the footfall in a retail outlet. If the

retail outlet is situated around the locality, it offers a convenient option of purchasing

items that are required immediately. Frequent promotions, affordable pricing and

store atmosphere increases the footfall in a retail outlet.

A careful study has been done to analyse and interpret customers satisfaction level to

the marketing mixes of two major retailers through questionnaires, observation and

through proper guidance of respective faculties.

The aim of the research was to conduct a study to identify the key factors involved in

achieving customer satisfaction, solutions and guidelines to be followed to enhance

customer satisfaction. The study helped to understand the customer responses towards

the marketing mixes of retailers and their acceptance in the customers mind which

plays a major role in their business.

The study is limited to 100 customers in the area of Koramangala, Bangalore.

Marketing mix have a significant role in attracting more and more customers to the

outlets. An appropriate plan should be created while designing and implementing the

marketing mix of a retail outlet as these involve a huge amount of money.

From the research, it can also be concluded that it is very comfortable and convenient

to purchase the products from Big Bazaar rather than from the SPAR Retail because

of the excellent marketing mix deployed by the management of Big Bazaar.


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5.3 SUGGESTIONS

Retailing industry is booming in India, so as competition. One cannot do business

based on his own intuitions about customer needs and wants. A proper research has to

be done in order to success in any business. Therefore suggestion must be given on

the basis of the research work.

A few important suggestions to the Big Bazaar and SPAR Retail are the following.

As the customer satisfaction is influenced by the marketing mix of retailing

more and more care should be given while designing the mix.

Weigh the packaged items in front of the customer so that customers are much

more confirmed about the quantity and give them ample facilities to hand pick

the products they want to purchase.

As quality of products matters a lot ensure that the products stored are of good

quality.

As the location affects the footfall, SPAR have to either provide good parking

facilities or traffic control assistance.

Customers are much affected by the economic recession and they need

affordable and cheap products to meet their day to day requirements, so SPAR

have to revise the pricing strategies. Coupons or discounts or offers for regular

customers to retain them and to attract new customer.

Both the Big Bazaar and SPAR have to improve in the pre and post purchase

services provided to the customers as services makes the customers buy again

and again from the retailer. SPAR should improve on services like

salespersons, i.e. should be more friendly and helpful and not intrusive.

SPAR have to concentrate more to improve on telephone booking and delivery

process.

Big Bazaar and SPAR have to encourage the customer participation by

providing suggestion boxes.

SPAR should give detailed care in the post purchase services.


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Text Books

1. Newman J Andrew,Retailing :Environment and Operations, India Edition,

Jaico Publishing,NewDelhi,2002. Page no: 15-49

2. Dunne M. Patrick, Retailing, Fourth Edition, Thomson South-West, Fo

51244468 3 intro bibliograpghy

Documents