big bazzar project report

7/28/2019 Big Bazzar Project Report

1/69

MCNP - 021

ADVERTISING AND SALES PROMOTION

TECHNIQUES USED BY RETAIL BUSINESSES

WITH SPECIAL REFERENCE TO BIG BAZAAR

By

Raju

Enrolment No: 112165967

Under Guidance

Of

Taruna Rawal

1


2/69

Submitted to the Everonn Global School of Business,

Chennai in partial fulfillment of the

requirementsfor the award of the degree

Master of Business Administration (MBA)

2011-2013

Indira Gandhi National Open

University

Maidan Garhi

New Delhi 110068.

CERTIFICATE

This is to certify that the project ADVERTISING AND SALES

PROMOTION TECHNIQUES USED BY RETAIL BUSINESSES

WITH SPECIAL REFERENCE TO BIG BAZAAR is an original

work of the Student and is being submitted in partial fulfillment for

the award of the Masters Degree in Business Administration of

Indira Gandhi National Open University. This report has not been

submitted earlier either to this University or to any other

2


3/69

University/Institution for the fulfillment of the requirement of a

course of study.

SIGNATURE OF SUPERVISOR SIGNATUREOF STUDENT

Place : Place :

Date: Date

3


4/69

:

DECLARATION

I the undersigned solemnly declare that the report of the project work

entitled ADVERTISING AND SALES PROMOTION TECHNIQUES

USED BY RETAIL BUSINESSES WITH SPECIAL REFERENCE TO

BIG BAZAAR is based on my own work carried out during the course

of my study under the Guidance of Mrs. Taruna Rawal

I assert that the statements made and conclusions drawn are an outcome

of the project work. I further declare that to the best of my knowledge and

belief that the project report does not contain any part of any work which

has been submitted for the award of any other degree/diploma/certificate

in this University or any other University.


5/69

_______________

(RAJU)

EnrollmentNo.112165967

ACKNOWLEDGEMENT

It is my pleasure to be indebted to various people, who directly or

indirectly contributed in the development of this work and who influenced

my thinking, behavior and acts during the course of study.

First of all I am thankful to BIG BAZAAR. Where I got the opportunity

to undertaken the project.

I am also thankful to Mrs. TARUNA RAWAL for her support,

cooperation and motivation provided to me during the training, for

constant inspiration, presence and blessings.

Lastly, I would like to thank the almighty and my parents for their moralsupport and my friends with whom I shared my day-to-day experience

and received lots of suggestions that improved my quality of work.


6/69

EXECUTIVE SUMMARY

The study of any subject is made by examining it in an organized fashion. There are

three classes of variables involved in understanding consumer behavior; STIMULUS,RESPONSE and INTERVENING variables. Stimulus variables, such as

advertisements, products exist in both the individuals external environment.

These generate a sensory input to consumers. Response variables are the resulting

mental / or physical reactions of individuals who are influenced by stimulus variables.

For e.g.:- purchasing a product or forming attitudes about it could be viewed as

response variables. Many of the variables affecting consumers (such as personality,

learning and perceptions are external situations, motives, and so forth) cannot be

directly observed.


7/69

A questionnaire was prepared by us in order to conduct market survey. The

questionnaire was based on different parameters to judge and understand the consumer

behaviors and determine the best possible strategies which could be used to attract

customers.

The research carried out in this project was descriptive in nature. The study was aimed

at knowing the various eating habits of a consumer.

This project helped in understanding what exactly a customer looks in an eating joint

before entering it. It gave an idea about the essential factors that are required now a

day for an eating joint to attract customers in this competitive world.

We were also given a task to understand the customer eating habits, what a customer

wants while eating in a restaurant what all a consumer look for and what are their

expectations, how can a mall owner satisfy the needs & wants of a consumer so that

the consumer may come back & the retailer can retain its consumer.

This project helps us to figure out the different consumer eating behavior & to

understand the overall consumer perception of eating in a restaurant as well as their

demand for mall.

The trend today has been to combine shopping with various offering. For e.g. apart

from shopping there are food courts, cinema theaters & even in some an amusement

centre for children.

Shopping has made people spend not just on their requirement of goods to be bought

but to look on the totally of experience have a quick bite at McDonalds in the mall or

lets the kids play fun game while one is busy shopping or even taking the family out


8/69

for movie & having a dinner all under one roof. The benefits of this totally offering

are that many vendors get to have peoples patronize their offerings, while the

Shopping experience i.e. being enhanced, more business got by the stores at the venue.

Shopping is no longer a one time agenda for people. Various options are opening up.

CONTENT

S. NO.CHAPTER PAGE NO.

Executive Summary 3

1. CHAPTER-1 8

1.1 INTRODUCTION 9

1.2 COMPANY PROFILE 10

1.3 INDUSTRY PROFILE 212. CHAPTER-2 25

2.1 LITERATURE REVIEW 26

3. CHAPTER-3 30


9/69

3.1 NEED OF THE STUDY 31

3.2 OBJECTIVES OF THE STUDY 32

4 CHAPTER-4 33

4.1 RESEARCH METHODOLOGY 34

5 CHAPTER-5 37

5.1 DATA ANALYSIS AND INTERPRETATION 38

5.2 LIMITATION OF THE STUDY 53

6 CHAPTER-6 54

6.1 CONCLUSION 55

6.2 SUGGESTION 566.3 REFERENCES 57

6.4 QUESTIONNAIRE 58


10/69

CHAPTER-1


11/69

INTRODUCTION

In saying, marketing involves the conception, pricing, promotion and distribution of

ideas, goods and services. The fundamental objective of marketing is to exchanges of

goods and services (Frances Brassington and Stephen Pettitt, 2005) By designing

products setting sensible, acceptable and justifiable prices, creating awareness andpreferences, and ensuring availability and service, the marketer can influence the

volume of exchange therefore marketing can be considered as a demand management

activity on the part of the selling company.

Promotion is an important component of marketing mix which has got a very

significant impact on the demand managing activity of marketing. The key

components of promotion includes personal selling, direct marketing, advertising,

sales promotion, and public relations. Sales promotion is a range of marketing

techniques designed with in a strategic marketing frame work to add extra value to a

particular product or services, developing a promotion strategy involve deciding on

the objectives of marketing communication. Promotion objectives are so vital that

these objectives are the key in determining the role of each components of the

promotion mix in the marketing objectives of the organisation. The role of promotion

mix components depends on the type of organization, nature of products, etc.

Promotion is a part of integrated marketing communication which recognizes the

advantages of having a complete plan to find better ways of understanding and

connecting with consumers.


12/69

COMPANY PROFILE

BIG BAZAAR


13/69

Big Bazaar is a chain of hypermarkets in India, with more than 100 stores in

operation. It is a subsidiary of Future Group Venture Ltd's, and follows the business

model of United States-based Wal-Mart. Facilities offered by Big Bazaar online


14/69

shopping: Big Bazaar has an official website, FutureBazaar.com, which is one of the

most favorite sites among people of India for online shopping. Future Bazaar is an

online business venture of Future Group, which sells an assortment of products such

as fashion, which includes merchandise for men and women, mobile accessories,

mobile handsets and electronics like home theatres, video cameras, digital camera,

LCD TVs, kitchen appliances and many more.

Discounts: Hfte ka sabse sasta din was introduced by the Big Bazaar, wherein extra

and special discounts were offered on Wednesday every week, to attract the potential

buyers into their store.

Security check: At each exit of Big Bazaar, they use alarm systems or Electronic

Article Surveillance system, which detects the products that has attached tags or not.

1. Big Bazaar is a chain of hypermarket in India, which caters to every familys needs

and requirements.

2. Big Bazaar has released the doors for the fashion world, general merchandise like

sports goods, cutlery, crockery, utensils, and home furnishings etc. at best economical

prices.

3. Big Bazaar group offers more than 100 stores all over the country with an

amalgamation of Indian bazaars feel and touch with a convenience and choice of the

modern retail facilities

4. The worldwide country chain, Big Bazaar, is formed by CEO of Future Group, Mr.

Kishore Biyani. Their basic attraction associated with reasonable prices is their

Unique Selling Price.

5. Big Bazaar has become a massive hit with lower middle-class and middle class

people as a major client base.


15/69

6. Reflect the look and feel of Indian bazaars at their modern outlets.

GROUP VISION

To deliver Everything, Everywhere, Everytime to Every

Indian Consumer in the most profitable manner.

GROUP MISSION

1 We share the vision and belief that our customers and stakeholders shall be served

only by creating and executing future scenarios in the consumption space leading to

economic development.

2 We will be the trendsetters in evolving delivery formats, creating retail realty,

making consumption affordable for all customer segments for classes and for

masses.

3 We shall infuse Indian brands with confused and renewed ambition

4 We shall be efficient and cost-conscious and committed to quality in whatever we do

Board of directors

1. Managing director

Mr kishore Biyani

2. Wholetime Director

Mr Gopikishan Biyani

Mr Rakesh Biyani

3. Director


16/69

Mr Shailesh Haribhakti

Mr S.Doreswamy

Mr Darlie Koshy

Mr Anil Harish

BIG BAZAAR SUPER CENTER

Big Bazaar Hyper mart chain in India

Outlet 140 Outlets

Parent Group Future Group

Owner Kishore biyani

Founded 2001

Head Quarter Jogeshwari, Mumbai

Industry Retail

Tagline Is se sasta aur accha kahin nahi


17/69

Major Milestones

1

9

8

7

Company incorporated as Manz Wear Private Limited. Launch of

Pantaloons trouser, Indias first formal trouser brand.

19

9

1

Launch of BARE, the Indian jeans brand.

1

9

9

2

Initial public offer (IPO) was made in the month of May.

1

99

4

The Pantaloon Shoppe exclusive menswear store in franchisee format

launched across the nation. The company starts the distribution ofbranded garments through multi-brand retail outlets across the nation.

1

9

9

5

John Miller Formal shirt brand launched.

1

9

9

7

Pantaloons Indias family store launched in Kolkata.

2

0

0

Big Bazaar, Is se sasta aur accha kahi nahin - Indias first hypermarket

chain launched.


18/69

1

2

0

0

2

Food Bazaar, the supermarket chain is launched.

2

0

0

4

Central Shop, Eat, Celebrate In The Heart Of Our City - Indias first

seamless mall is launched in Bangalore.

2

0

0

5

Fashion Station - the popular fashion chain is launched

aLL a little larger - exclusive stores for plus-size individuals is

launched

2

0

0

6

Future Capital Holdings, the companys financial arm launches real

estate funds Kshitij and Horizon and private equity fund Indivision.

Plans forays into insurance and consumer credit.

Multiple retail formats including Collection i, Furniture Bazaar, Shoe

Factory, EZone, Depot and futurebazaar.com are launched across the

nation.

Group enters into joint venture agreements with ETAM Group and

Generali.

7P Analysis of Big Bazaar

7P Marketing Mix is more useful for services industries and knowledge intensive

industries. Successful marketing depends on number of key issues. The seven keys

issues are explained as: -

Product

Big Bazaar offers a wide range of products which range from apparels, food, farmproducts, furniture, child care, toys, etc. . Products of all the major brands are

available at Big Bazaar .Also, there are many in house brands promoted by Big

Bazaar. Big Bazaar sold over 300,000 pairs of jeans, 50,000 DVD-players and 25,000


19/69

microwave-ovens. In all, the fashion, electronics and travel segments made up about

70% of sales. Last year, these categories made up only about 60%.

Price

The tag-line is "Is se sasta aur accha aur kahin nahi". They work on the model of

economics of scale. There pricing objective is to get "Maximum Market Share". The

various techniques used at Big Bazaar are: -

Value Pricing (EDLP - Every Day Low Pricing): Big Bazaar promises consumers

the lowest available price without coupon clipping, waiting for discount promotions,

or comparison shopping.

Promotional Pricing: Big Bazaar offers financing at low interest rate. The concept of

psychological discounting (Rs. 99, Rs. 49, etc.) is used as promotional tool. Big

Bazaar also caters on Special Event Pricing (Close to Diwali, Gudi Padva, and Durga

Pooja).

Differentiated Pricing: Time pricing, i.e., difference in rate based on peak and non-

peak hours or days of shopping is also a pricing technique used in Indian retail, which

is aggressively used by Big Bazaar.

Bundling: Selling combo-packs and offering discount to customers. The combo-packs

add value to customer.

Place

Big Bazaar stores are located in 50 cities with 75 outlets.Big Bazaar has presence in

almost all the major Indian cities. They are aggressive on their expansion plans.

Promotion


20/69

Big Bazaar started many new and innovative cross-sell and up-sell strategies in Indian

retail market. The various promotion techniques used at Big Bazaar include "saal ke

sabse saste teen din", Future Card (the card offers 3% discount), Shakti Card,

Brand Endorsement by M. S. Dhoni, Exchange Offer - Junk Swap Offer', Point-of-

Purchase Promotions.

Advertising has played a crucial role in building of the brand. Big Bazaar

advertisements are seen in print media, TV, Radio (FM) and road-side bill-boards.

People

They are one of the key assets for any organization. The salient features of staff of Big

Bazaar are: -

Well-trained staff, the staff employed by Big-Bazaar are well-suited for modern retail.

Well-dressed staff improves the overall appearance of store.

Employees are motivated to think out-of-the-box. Retail sector is in growth stage, so

staff is empowered to take innovative steps.

Employs close to 10,000 people and recruits nearly 500 people every month.

Use of technology like scenario planning for decision making.

Multiple counters for payment, staff at store to keep baggage and security guards at

every gate, makes for a customer-friendly atmosphere.

Process

The goods' dispatch and purchasing area has certain salient features which include: -

Multiple counters with trolleys to carry the items purchased.

Proper display / posters of the place like (DAL, SOAP, etc.).

Home delivery counters also started at many places.


21/69

Advertising: The Essential of Brand Building Process

Advertising is an essential component of brand building. The advertisement and brand

building is done through various ways, the techniques used are: -

Tag-line:Big Bazaar tag-lines are the key components of advertising. These tag-lines

are modified according to demographic profile of customers. These catch-phrases

appeared on hoardings and newspapers in every city where Big Bazaar was launched.

Everybody understood and connected easily with these simple one-liners. The catch-

liners include "Hindi - Chane ke bhaw kaaju", "Bengali - Rui er dame illish", "Hindi -

Stall ke bhaw balcony", etc.

Print Ads: Big Bazaar newspaper advertisements are present just before launch of any

new scheme. This creates aura about the Big Bazaar brand in the minds of customers.

TV Ads: Kishore Biyani spends a lot of money in brand building exercise. Big Bazaar

commercials are shown on various channels in India. Presently, Fashion@Big Bazaar

commercial is aired.

Road-side Advertisements: Big Bazaar bill-boards are displayed on prime locations

in various cities as a brand building exercise. They display the catch-phrases now-a-

days.

Radio Ads: This technique is used in cities like Sangli (Tier 1 / Tier 2 cities). Now-a-

days, it is replaced by advertisements on FM channels. This informs customers about

all new happenings at Big Bazaar.

Fashion Shows: "FASHION @ BIG BAZAAR - Desh Badla, Bhesh Badlo" is the

latest invention of the Indian iconic brand. In an effort to take the Fashion to the

masses, Big Bazaar, the flagship hypermarket brand of retail chain of Future Group,

organized a three-day Fashion Show on the streets of Bandra, Mumbai.Brand Endorsement by Celebrity:Big Bazaar is always associated with celebrities

for advertising and marketing of its brand name. The current campaign is starred by


22/69

Brand Ambassador and Indian Cricket ODI Captain Mahendra Singh Dhoni. Earlier

Himesh Reshammiya and Sanath Jaisuriya were associated with Big Bazaar.

INDUSTRY PROFILE

Retail Sector in India

Retail is booming sector in India. Retail, one of Indias largest industries, has

presently emerged as one of the most dynamic and fast paced industries with several

players entering the market. Retail Accounts for over 10 per cent of the countrys GDP

and around eight per cent of the employment in India.

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

large scale investments in the real estate sectorwith 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
http://www.indianground.com/real_estate_india.aspxhttp://www.indianground.com/real_estate_india.aspxhttp://www.indianground.com/real_estate_india.aspx


23/69

Increase in expenditure for luxury items

Another credible factor in the prospects of the retail sector in India is the increase in

the young working population. In India, high pay-packets, nuclear families in urban

areas, along with increasing working-women population and emerging opportunities

in the services sector. These key factors have been the growth drivers of the organized

retail sector in India.

The retailing configuration in India is fast developing as shopping malls are

increasingly becoming familiar in large cities. When it comes to development of retail

space specially the malls, the Tier II cities are no longer behind in the race.

India is being seen as a potential goldmine for retail investors from over the world and

India has the top destination for retailers for an attractive emerging retail market.

Indias vast middle class and its almost untapped retail industry are key attractions for

global retail giants wanting to enter newer markets. Even though India has well over 5

million retail outlets, the country sorely lacks anything that can resemble a retailing

industry in the modern sense of the term. This presents international retailing

specialists with a great opportunity. The organized retail sector is expected to grow

stronger than GDP growth in the next five years driven by changing lifestyles,

burgeoning income and favorable demographic outline.
http://www.indianground.com/articles/Miscellaneous-articles/organised-retail-in-india.aspxhttp://www.indianground.com/articles/Miscellaneous-articles/organised-retail-in-india.aspxhttp://www.indianground.com/articles/Miscellaneous-articles/organised-retail-in-india.aspxhttp://www.indianground.com/articles/Miscellaneous-articles/organised-retail-in-india.aspx


24/69

FDI in Retail Sector

Retailing is the largest private sector industry in the world economy with the global

industry size exceeding $6.6 trillion and India is the top destination for retail investors.

And the further upsurge is anticipated in the retail sector as the Government of opened

up 51% FDI in single brand retail outlets. And as the government is in a process to

initiate a second phase of reforms, it is cautiously exploring the avenues for multi-

brand segment. The Government is seeking for these options keeping in view theexisting social framework of India and the will ensure that the entry of global retail

giants do not displace the existing employment in the retail business.

Industry experts are sensitive to the point that local markets have an edge over the

retail investors in India as they have unique advantages such as an understanding of

local needs and extended service like home delivery. As the FDI influence on the

Indian retail sector sets in, the total size of the retail trade is expected to grow

extensively in the coming years and the consumer segments patronizing the big malls

will create frenzy for organized retailing predicting a growth of 25-30 per cent per

annum over the next decade. Moreover, Indian retail chains would get integrated with

global supply chains since FDI will bring in technology, quality standards and
http://www.indianground.com/investments/major_investors_realestate.aspxhttp://www.indianground.com/retail/retail-sector-in-india.aspxhttp://www.indianground.com/investments/major_investors_realestate.aspxhttp://www.indianground.com/retail/retail-sector-in-india.aspx


25/69


26/69

WHEN TO USE PROMOTION

A brands quality is inferior to competition

A brands advertising is not as persuasive as competitive

A new brand is being introduced

BELOW THE LINE SALES PROMOTION

Below the line sales promotions are short-term incentives, largely aimed at consumers.

Methods of below the line sales promotion

1. Price promotions

Price promotions are also commonly known as" price discounting". These can

be done in two ways:

(1) A discount to the normal selling price of a product, or

(2) More of the product at the normal price.

Price promotions however can also have a negative effect by spoiling the brand

reputation or just a temporary sales boost (during the discounts) followed by a

lull when the discount would be called off.

2. Coupons

Coupons are another, very versatile, way of offering a discount. Consider the

following examples of the use of coupons:

- On a pack to encourage repeat purchase

- In coupon books sent out in newspapers allowing customers to redeem the


27/69

coupon at a retailer

- A cut-out coupon as part of an advert

- On the back of till receipts

The key objective with a coupon promotion is to maximize the redemption rate

this is the proportion of customers actually using the coupon.

It must be ensured when a company uses coupons that the retailers must hold

sufficient stock to avoid customer disappointment.

Use of coupon promotions is often best for new products or perhaps to

encourage sales of existing products that are slowing down.

3. Gift with purchase

The "gift with purchase" is a very common promotional technique. In this

scheme, the customer gets something extra along with the normal good

purchased. It works best for

- Subscription-based products (e.g. magazines)

- Consumer luxuries (e.g. perfumes)

4. Competitions and prizes

This is an important tool to increase brand awareness amongst the target

consumer. It can be used to boost up sales for temporary period and ensure

usage amongst first time users.


28/69

5. Money refunds

Here, a customer receives a money refund after submitting a proof of purchase

to the manufacturer.

Customers often view these schemes with some suspicion particularly if the

method of obtaining a refund looks unusual or onerous.

6. Frequent user / loyalty incentives

Repeat purchases may be stimulated by frequent user incentives. Perhaps the

best examples of this are the many frequent flyer or user schemes used by

airlines, train companies, car hire companies etc.

7. Point-of-sale displays

shopping habits are changing for the people living in metropolitan cities.

People prefer big retail outlets like Big Bazaar to local kirana stores. Most of

the decisions of buying are taken by the virtue of point-of-sale displays in

these retail outlets.BTL PROMOTION activities of Big Bazaar:

BTL promotions are gaining popularity among all big companies nowadays

considering their effectiveness because of the "individual customer promotion"

at a price, which is much lesser than the normal media promotions.

Low prices on Wednesday Low prices on Wednesday

Concept of Big Day

Promotional offers

School Jao Khushi Khushi

Khushi Ki Barsaat

Happy Fathers Day


29/69

CHAPTER-2


30/69

LITERATURE REVIEW

WHAT IS RETAILING

Retailing is all the activities involved in selling goods and services directly to final

consumers for their personal, non-business use. The word retail is derived from the

French word retailer, meaning to cut a piece off or to break bulk. A retailer buys goods

or products in large quantities from manufacturers or importers, either directly or

through a wholesaler, and then sells individual items or small quantities to the general

public or end user customers, usually in a shop, also called store. Retailers are at the

end of the supply chain. Marketers see retailing as part of their overall distribution

strategy.

Retailing is one area of the broader term, e-commerce. Retailing is buying and selling

both goods and consumer services. With more number of educated and literate

consumers entering the economy and market, the need for reading the pulse of theconsumers has become very essential.


31/69

Retail marketing is undergoing radical restructuring. This is because of increase in

gross domestic product, increase in per capita income, increase in purchasing power

and also the ever changing tastes and preferences of the people. The entry of plastic

money, ATMs, credit cards and debit cards and all other consumer finances, the taste

for the branded goods also added for the evolution of retail marketing.

Retail marketing is not just buying and selling but also rendering all other

personalized consumer services. With the RM picking up it has given a new look for

various fast moving capital goods (FMCG) goods. This not only increased the demand

for various goods in the market but also made retail marketing the second largestemployment area, the first being agriculture.

TYPES OF RETAILING

Retailing can be classified under two heads: 1 Store Retailing 2 Non-store Retailing.

Retailing is a distinct, diverse and dynamic sector . It is an activity of enormouseconomic significance to most developed nations. It generates revenue and wealth for

nation, encourages investments and brings technological advancements. Stated that it

brings employment and creates wealth of the economy. It is a vibrant part of our

changing society and a major source of employment Retailing performs activities at

larger level so it requires massive manpower to handle and manage its operations.

Retailing also helps society in general by providing goods and services in reasonable

price and increasing their standards of living. Retailing activity can be viewed as a

significant contributor to the economy in general.

Retailing is the set of activities that markets products or services to final consumers

for their own personal or household use. It does this by organizing their availability on

a relatively large scale and supplying them to consumers on a relatively small scale.


32/69

Retailing makes products and services available in large quantities. Retailers produce

or order the products/services in bulk so they can take advantage of economy of scale

and thus they can formulate competitive pricing strategies. Products and services are

generally sold through the store or on the internet.

Store Retailing

Retail stores come in a variety of shapes and sizes, and new retail types keep

emerging. They can be classified by one or more of several characteristics:

1Amount of service

2Product line

3Relative prices

4Control of outlets

5Type of store cluster

1) AMOUNT OF SERVICE

Different products require different amounts of service, and customer service

preferences vary:

Self-service retailers

Customers are willing to perform their own "locate-compare-select" process to save

money. Today, self-service is the basis of all discount operations, and typically is used

by sellers of convenience goods (such as supermarkets) and nationally branded, fast

moving shopping goods (such as catalog showrooms).

Limited service retailers


33/69

Retailers such as Sears and J. C. Penney, provide more sales assistance because they

carry more shopping goods about which consumers need information. Their increased

operating costs resulting higher prices.

Full service retailers

Like specialty stores and first-class department stores, have salespeople to assist

customers in every phase of the shopping process. Full service stores usually carry

more specialty goods for which customers like to be waited on. They provide more

liberal return policies, various credit plans, free delivery, home servicing, and extras

such as lounges and restaurants.

2) PRODUCT LINE:

Retailers can also be classified by the depth and breadthoftheir product assortments.

The depth of a product assortment refers to the number of different versions of each

product that are offered for sale. The breadth of the assortment refers to the number of

differentproducts that the store carries.

. General Merchandisers These retailers carry a wide range of product categories

(i.e., broad width) though the number of different items within a particular product

line is generally limited (i.e., shallow depth).

. Multiple Lines Specialty Merchandisers - Retailers classified in this category

stock a limited number of product lines (i.e., narrow width) but within the categories

they handle they often offer a greater selection (i.e., extended depth) than are offered

by general merchandisers. For example, a consumer electronics retailer would fall into

this category.

Single Line Specialty Merchandisers Some retailers limit their offerings to just

one product line (i.e., very narrow width), and sometimes only one product (i.e., very


34/69

shallow depth). This can be seen online where a relatively small website may sell a

single product such as computer gaming software. Another example may be a small

jewelry store that only handles watches.

3) RELATIVE PRICES

Retailers can also be classified by the prices they charge. Most retailers charge regular

prices and offer normal quality goods and customer service. Some offer higher quality

goods and service at higher prices

Discount Pricing Discount retailers are best known for selling low priced

products that have a low profit margin (i.e., price minus cost). To make profitsthese retailers look to sell in high volume. Typically discount retailers operate

with low overhead costs by vigorously controlling operational spending on

such things as real estate, design issues (e.g., store layout, website

presentation), and by offering fewer services to their customers.

Competitive Pricing The objective of some retailers is not to compete on

price but alternatively not to be seen as charging the highest price. These

retailers, who often operate in specialty markets, aggressively monitor the

market to insure their pricing is competitive but they do not desire to get into

price wars with discount retailers. Thus, other elements of the marketing mix

(e.g., higher quality products, nicer store setting) are used to create higher

value for which the customer will pay more.

Full Price Pricing Retailers targeting exclusive markets find such markets

are far less price sensitive than mass or specialty markets. In these cases the

additional value added through increased operational spending (e.g., expensive

locations, more attractive design, more services) justify higher retail prices.


35/69

CHAPTER-3

NEED OF THE STUDY

In this competitive world, there exists huge competition between organizations of

retail sector. The company which adopts best sales promotion activities will have

better profits. So, it is necessary to know companys sales promotion activities which

results in sales growth and turn profits to the organization.


36/69

OBJECTIVE OF THE STUDY

Following are the objectives of the study:

To find out the influence of Advertising and Sales promotion on the sales of the

Big Bazaar

To find the most effective tool of Sales promotion technique to entice customers

used by Retail businesses.

To study various advertising and sales promotion techniques used by Big Bazaar.

To find out the influence of Advertising and Sales promotion on the sales of Big

Bazaar.

To find the effectiveness of the Brand recall and Recognition of Big Bazaar.


37/69

To find out the ranking of Big Bazaar with its relative competitors as per the

customers.

To find certain new techniques that Big Bazaar can adopt to improve its services


38/69

CHAPTER-4

RESEARCH METHODOLOGY

Methodology adopted for study

Observation Method (Observing the working of various departments like

finance, marketing, purchasing, production.)

Questionnaire method (Enquiring about the Sales promotion techniques

adopted by Big Bazar from its Managers and employees, also from the

cusomers visiting the store)


39/69

Visiting & surfing websites of company.

Meaning

Research Methodology is a set of various methods to be followed to find out various

Informations regarding market strata of different products. Research Methodology is

required in every industry for acquiring knowledge of their products.

Area of study

The study is exclusively done in the area of marketing. It is a process requiring care,

sophistication, experience, business judgment, and imagination for which there can be

no mechanical substitutes.

Sources of Data

Primary Source - The primary data was collected by means of a survey.

Questionnaires were prepared and customers of the big bazaar at two branches

were approached to fill up the questionnaires. The questionnaire contains 20

questions which reflect on the type and quality of services provided by the Big

bazaar to the customers. The response of the customer is recorded on a grade

scale of strongly disagree, disagree, uncertain, agree and strongly agree for

each question. The filled up information was later analyzed to obtain the

required interpretation and the findings.

Secondary Source - In order to have a proper understanding of the customer

service of Big Bazaar a depth study was done from the various sources such as

books, a lot of data is also collected from the official websites of the Big

bazaar and the articles from various search engines like Google, yahoo search

and answers.com.


40/69

RESEARCH DESIGN

The research design is exploratory till identification of customer services parameters.

Later it becomes descriptive when it comes to evaluating the promotion techniques of

the big bazaar.

Descriptive research, also known as statistical research, describes data and

characteristics about the sales promotion techniques being studied. Descriptive

research answers the questions who, what, where, when and how.

Although the data description is factual, accurate and systematic, the research cannot

describe what caused a situation. Thus, descriptive research cannot be used to create a

causal relationship, where one variable affects another.

The description is used for frequencies, averages and other statistical calculations.

Often the best approach, prior to writing descriptive research, is to conduct a survey

investigation. Qualitative research often has the aim of description and researchers

may follow-up with examinations of why the observations exist and what the

implications of the findings are.

RESEARCH SAMPLE

SAMPLING PLAN:

Since it is not possible to study whole universe, it becomes necessary to take sample

from the universe to know about its characteristics.

Sampling Units: Customers and Empolyees of Big bazaar.

Sample Technique: Random Sampling.

Research Instrument: Structured Questionnaire.

Contact Method: Personal Intervie/Filling the Questionnairs.


41/69

SAMPLE SIZE:

The work is a case of Big bazaar one of the Retail Sector industry together

representing great per cent of the market share of Indian retail sector. The survey was

conducted in the city of Chandigarh with two branches of big bazaar, with 100

customers as respondent.

DATA COLLECTION TOOL

Data is collected from various customers through personal interaction. Some other

information is collected through secondary data also. Data was collected through a

structured questionnaire, Likert Scale is used for analysis.

Likert scale is simply a statement which the respondent is asked to evaluate according

to any kind of subjective or objective criteria, generally the level of agreement and

disagreement is measured Likert scaling is a bipolar scaling method, measuring either

positive or negative response to a statement.


42/69

CHAPTER-5

DATA INTREPRETATION AND

ANALYSIS

GRAPHS AND FINDINGS

Concept: To survey whether the customers visiting at Big Bazaar are aware of the

Promotional offers

Table No: 1

Are you aware of promotional offers at Big Bazaar

210 84.0 84.0 84.0

40 16.0 16.0 100.0

250 100.0 100.0

Yes

No

Total

Valid

Frequency Percent Valid Percent

Cumulative

Percent


43/69

Graph No: 1

Interpretation: Majority (84%) of the customers surveyed were aware of the

Promotional offers at Big Bazaar.

Concept: To study mode of communicating promotional offers to the customers

Table No: 2

What was the mode of Communication

35 14.0 16.7 16.7136 54.4 64.8 81.4

39 15.6 18.6 100.0

210 84.0 100.0

40 16.0

250 100.0

TVNews Paper

Hordings

Total

Valid

SystemMissing

Total


Cumulative

Percent

16.00%

84.00%

No

Yes

Are you aware of promotional offers at Big Bazaar


44/69


45/69

Graph No: 3

Interpretation: Promotional offers are noticed and heard by the customers during

their shopping

Concept: To study frequency the sample customers visited Big Bazaar

Table No: 4

How frequently you visit Big Bazaar

Fre

que

ncy

Per

cen

t

Valid

Perc

ent

Cum

ulativ

e

Perc

7.20%

92.80%

No

Yes

Did you notice/hear about the Promotional offers Today


46/69

ent

V

a

lid

Occasion

ally9 3.6 3.6 3.6

Once in a

month42

16.

816.8 20.4

Once in a

week163

65.

265.2 85.6

Daily 4 1.6 1.6 87.2

As and

when

required

3212.

812.8

100.

0

Total250

100

.0

100.

0

Graph No: 4


As and whenrequired

DailyOnce in a weekOnce in a monthOccasionaly

Percent

60

40

20

0

12.80%

1.60%

65.20%

16.80%

3.60%



47/69


48/69

Promotional offers at Big Bazaar are attractive

Promotional offers at Big Bazaar are attractive and induce me to m

Dis-agreeNeither Agree/Nor DiAgreeStrongly Agree

Percent

50

40

30

20

10

0

12

22

40

26

Interpretation: 26% strongly agree, 40% agree, 22% neither agree nor dis-agree and

remaining customers dis-agree

Concept: To study customers preferences of the commodities

Table No: 6

Rank the products that you expect promotional offers

125 50.0 50.0 50.0

80 32.0 32.0 82.0

32 12.8 12.8 94.8

13 5.2 5.2 100.0

250 100.0 100.0

Clothing

Groceries

Electronic items

Furnitures

Total

Valid


Cumulative

Percent


49/69

Graph No: 6

Interpretation: Customers preferred clothing followed by groceries, electronic items

and furnitures.

Concept: To study whether customers availed benefit of promotional offers

Table No: 7


FurnituresElectronic itemsGroceriesClothing

Percent

50

40

30

20

10

0

5.20%

12.80%

32.00%

50.00%



50/69

Have you availed any offers during your recent visit

214 85.6 85.6 85.6

36 14.4 14.4 100.0

250 100.0 100.0

Yes

No

Total

Valid


Cumulative

Percent

Graph No: 7

Interpretation: Majority (85%) of customers availed benefit of promotional offers

Concept: What did you opt for?

14.40%

85.60%

No

Yes

Have you availed any offers during your recent visit


51/69

The customers may go in for Free offers or discount offers. To study the customers

preference of offers this question was asked.

Table No: 8

What did you opt for

91 36.4 42.5 42.5

123 49.2 57.5 100.0

214 85.6 100.0

36 14.4

250 100.0

Discount offer

Free offer

Total

Valid

SystemMissing

Total


Cumulative

Percent

Graph No: 8

Interpretation: 49% of the customers availed Free offers 36% availed Discount

offers.

What did you opt for

Missing

Free offer

Discount offer


52/69

Concept: Did customers communicate benefit of promotional offers to their friends

and relatives

Table No: 9

Do you communicate offers at Big Bazaar to your friends

218 87.2 87.2 87.2

32 12.8 12.8 100.0

250 100.0 100.0

Yes

No

Total

Valid


Cumulative

Percent

Graph No: 9

12.80%

87.20%

No

Yes

Do you communicate offers at Big Bazaar to your friends


53/69

Interpretation: Majority (87%) of customers did communicate benefits of

promotional offers to their friends and relatives.

Concept: Where do you find the following better?

1. Price

2. Quality

3. Product range

4. Promotional offers

5. Ambience

Concept: Price

Table No: 10

Price

215 86.0 86.0 86.0

35 14.0 14.0 100.0

250 100.0 100.0

Big BazaarOther retail stores

Total

Valid


Cumulative

Percent

Graph No: 10


54/69

Interpretation: 86% of customers find price better compared to other retail stores

Concept: Quality

Table No: 11

Quality

190 76.0 76.0 76.0

60 24.0 24.0 100.0

250 100.0 100.0

Big Bazaar

Other retail storesTotal

Valid


Cumulative

Percent

Graph No: 11

Price

Other retail storesBig Bazaar

Percent

100

80

60

40

20

0

14.00%

86.00%

Price


55/69

Interpretation: Quality at Big Bazaar is good as compared to other retail stores

Concept: Product Range

Table No: 12

Quality


Pe

rcent

80

60

40

20

0

24.00%

76.00%

Quality


56/69

Range

240 96.0 96.0 96.0

10 4.0 4.0 100.0

250 100.0 100.0

Big Bazaar

Other retail stores

Total

Valid


Cumulative

Percent

Graph No: 12

Interpretation: (96)% of Customers feel product range good at Big Bazaar

Range


Percent

100

80

60

40

20

04.00%

96.00%

Range


57/69

Concept: Promotional offers

Table No: 13

Offers

218 87.2 87.2 87.2

32 12.8 12.8 100.0

250 100.0 100.0

Big Bazaar

Other retail stores

Total

Valid


Cumulative

Percent

Graph No: 13

Offers


Percent

100

80

60

40

20

0

12.80%

87.20%

Offers


58/69

Interpretation: Promotional offers are good compared to other retail stores

Concept: Ambience

Table No: 14


59/69


60/69

Interpretation: Majority (97%) of the customers find Ambience very good

Concept: To study whether Customers feel like coming to Big Bazaar to avail the

benefits of the offers

Table No: 15

Do offers make you feel like visiting Big Bazaar

226 90.4 90.4 90.4

24 9.6 9.6 100.0

250 100.0 100.0

Yes

No

Total

ValidFrequency Percent Valid Percent

Cumulative

Percent

Graph No: 15

9.60%

90.40%

No

Yes

Do offers make you feel like visiting Big Bazaar


61/69

Interpretation: Majority (90%) of customers are attracted to offers and hence they

will shop frequently at Big Bazaar


62/69

LIMITATIONS OF STUDY

Data collection cannot be asserted to be free from errors, as the sample

size is small

The project is done for the partial fulfillment of the MBA program

Time is the major limiting factor as the available time for survey was

only three months.

The accuracy of the findings is trusted by the accuracy of the statistical

tools used for analysis.

Few respondents were reluctant while answering the questions due to their busy

schedule


63/69

CHAPTER-6

FINDINGS

Majority (84%) of the customers surveyed were aware of the Promotional

offers at Big Bazaar

Newspaper was the most effective mode for communication, followed by

hoardings and TV advertisements.

Promotional offers are noticed and heard by the customers during their

shopping 65%of the customers visit Big Bazaar once in a week, either on Wednesdays

or week ends, followed by customers visiting once in a month and as-and-

when required.

26% strongly agree, 40% agree, 22% neither agree nor disagree and remaining

customers disagree

Customers preferred clothing followed by groceries, electronic items and

furnitures

Majority (85%) of customers availed benefit of promotional offers

49% of the customers availed Free offers 36% availed Discount offers.

Majority (87%) of customers did communicate benefits of promotional offers

to their friends and relatives.


64/69

86% of customers find price better compared to other retail stores

Customers found Quality at Big Bazaar good as compared to other retail stores

Customers feel product range good at Big Bazaar

Promotional offers are good compared to other retail stores as per the

customers

SUGGESTIONS

16% of the surveyed customers were not aware of promotional offers, so the

Company should ensure that maximum customers know about promotional

offers visiting Big Bazaar and there should make aware of offers to general

public.

34% of the customers are not attracted to promotional offers because of short

range of electronic items and some doubt the quality of the products on which

promotional offers are declared. The Company should take note of this.


65/69

Some customers are disappointed because of short period of promotional

offers as they visit Big Bazaar after the offer period is over. Such customers

should be convinced that similar offers would be declared soon.

The duration of the discount offers must be increased, so that more number of

customers can avail the benefit.

Most of the customers prefer clothing (50%) and groceries (32%) , the

Company has to attract the customers towards and electronic items and

furnitures

The promotional offers on Wednesdays can also be extended to Tuesdays and

Sundays so that more number of customers will get benefit of the offers and

thus sales increase.

The employees of Big Bazaar should be discouraged to take the benefit of

offers which are meant for customers

CONCLUSION

Promotional offers play an important role to increase the sales in short terms

Chandigarh population is experiencing a new pattern of shopping


66/69

The customer buying pattern has changed with the introduction of Big Bazaar

in Belgaum

The foot fall has increased at Big Bazaar

Customers are exposed to new brands and they are becoming brand savvy

Questionnaire

1) Are you aware of promotional offers at Big Bazaar? (If No, please go to question

No. 3)


67/69

Yes No

2) If yes, what was the mode of communication?

TV News Paper Hoardings

3) Did you notice/ hear about the promotional offers today?

Yes No

4) How frequently you visit Big Bazaar

Occasionally Once in a month Once in a week

Daily As and when required

5) The Promotional offers at Big Bazaar areattractive and induce me to make a

purchase?

Strongly Agree Agree Neither Agree/ Nor Dis-agree Dis-agree Strongly

Dis-agree

6) For which range of products/brands you expect promotional offers? (Please Rankfrom scale 1being high to 4 being lowest)

Clothing Groceries Electronic items Furniture


68/69

7) Have you availed any offers during your recent visits? (If No, please go to question

No. 9)

Yes No

8) What did you opt for?

Discount offer Free offer Others

9) Do you communicate offers at Big Bazaar to your friends/relatives?

Yes No

10) Where do you find the following better (please mark)

At Big Bazaar At other Retail

shops

Price

Quality

Product range

Promotional Offers

Ambience

11) Do offers make you feel like visiting Big Bazaar again?


69/69

big bazzar project report

Documents