Big Bazar Project Report

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SUMMER INTERNSHIP REPORT

ON

SALES PROMOTION, CUSTOMER RELATIONSHIP MANAGEMENT

IN BIG BAZAR GANGTOK, EAST SIKKIM

Submitted for the partial fulfillment of the requirement for awarding the Degree

of Master of Business Administration (MBA)

By

Rahul Basumatary

Enrolment no-EIILMU/10/FO51

Under the esteemed guidance of

Miss. Malati Subba Mr. Bipen Sharma

(Internal Guide) (ExternalGuide)

Lecturer of Management Deptt Department Manager

EIILM University BIGBAZAR,GANGTOK

Jorethang, South Sikkim East Sikkim


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STUDENT DECLARATION

I HERE BY DECLARE THAT THE PROJECT REPORTENTITLE

STUDY ON

SALES PROMOTION AND CUSTOMER RELATIONSHIP MANAGEMENT

AT

BIG BAZAR GANGTOK,EAST SIKKIM

Has been submitted by myself for the partial fulfillment of the

requirement for the

Degree of MASTER OF BUSINESS ADMINISTRATON

From

EASTERN INSTITUTE OF INTREGRATED LEARNING IN MANAGEMENT

Date: 1/08/2011

PLACE: JORETHANG

RAHUL BASUMATARY(MBA 3rd sem).

Reg. No. EIILMU/IO/FO51


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PREFACE

In this changing scenario of the dynamic and competitive world, it has

become pertinent to excel and grow gaining competitive stage edge.

There is a fierce competition among the corporate to gain competitive

advantage from others. Analyzing and studying the function of Sale, as a

support service to the revenue of an organization, as it become more

necessity as organizations get an edge only with help of its sales

promotion and marketing strategy. The sale alone makes or mark the

revenue of the company. Choosing the topic of study i.e. salespromotion and marketing strategy, it is a prime activities of any

organization. In the current scenario, sales promotion and marketing

strategy is an important function of the Marketing department of all

companies. And it is no surprise that marketing is a major challenge

for the companies. The sales promotion activity plays an important role

in organization, if the company success to choose the right marketing

strategy at a right time they may flourish the company, if not it may lead

the company into trouble. This study is intended to find out the marketing

and sales promo tion process and customer relationship management at

Big Bazar Gangtok,East Sikkim

Chapter 1 Introduction of the project work, attempts to clarify the objectives

of the study, the scope of study, its limitations, and the methodology used

in analyzing the problem.

Chapter 2 is deal with introduction of the company.

Chapter 3 is deals with the survey conducted, the feedback received from

the customer, the findings and the analysis of the study.

Chapter 4 and chapter 5 deal with the recommendations and conclusion

respectively

I hope the investigation made during the study will surely help the

organization.


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EXECUTIVE SUMMARY

SUBMITTED TO:

DEPARTMENT OF MANAGEMENT, EIILM UNIVERSITY JORETHANG,

SOUTH SIKKIM.

SUBMITTED BY:

RAHUL BASUMATARY MBA 3rd SEMISTER, EIILM UNIVERSITY

TOPIC OF THE STUDY:

A report on the SALES PROMOTION,MARKETING STRATEGY

,EFFECTIVENESS OF RETAILING MIX FOR CUSTOMER

SATISFACTION AND CUSTOMER RELATIONSHIP MANAGEMENT on

BIGBAZAR Gangtok

OBJECTIVES:

To find the sales promotion,marketing strategy,effetictiveness of

retailing mix for customer satisfaction and customer relationship

management at BigBazar Gangtok

PLACE OF STUDY: BIGBAZAR GANGTOK,East Sikkim.

PERIOD OF STUDY:

9th June to 3rd August

2011.


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CONTENTS

Student declaration

Preface

Acknowledgement

Executive SummaryIntroduction

Company profile

Retail mix

Marketing Strategy

Research Methodology

Limitation of study

Data collection and analysis

Observation and Finding

Conclusion and Recommendation

Reference and Bibliography


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INTRODUCTION

Every business conducted for the purpose of selling oroffering for sale any goods, wares, or merchandise, otherthan as a part of a "wholesale business" to the finalconsumer can be defined as retail business

Retail is the second-largest industry in the United Statesboth in number of establishments and number ofemployees. The U.S. retail industry generates $3.8 trillionin retail sales annually ($4.2 trillion if food service salesare included), approximately $11,993 per capita. The retailsector is also one of the largest worldwide.

Wal-Mart is the world's largest retailer and the world'slargest company with more than$312 billion (USD) in sales annually. Wal-Mart employs1.3 million associates in the United States and more than400,000 internationally. The second largest retailer in theworld is France's Carrefour.

WHAT IS RETAILING?Retailing is all the activities involved in selling goods andservices directly to final consumers for their personal,non-businessuse.


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The word retail is derived from the French word retailer,

meaning to cut a piece off or to break bulk. A retailer buysgoods or products in large quantities from manufacturersor importers, either directly or through a wholesaler, andthen sells individual items or small quantities to thegeneral public or end user customers, usually in a shop,also called store. Retailers are at the end of the supplychain. Marketers see retailing as part of their overall

distribution strategy. Retailing is the most active andattractive sector of last decade. While the retailing industryitself has been present since ages in our country, it is onlythe recent past that it has witnessed so much dynamism.Indian retailing today is at an interesting crossroads. Theretail sales are at the highest point in history and newtechnologies are improving retail productivity there aremany opportunities to start a new retail business. Thereare just over a 6 million retail outlets operating across theIndian cities from north to south and from east to west.This large number of outlets, many of which are trying toserve and satisfy the same market segments, results infierce competition and better value to shoppers.


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INDIAN RETAIL INDUSTRY

Retailing in India is one of the significant contributors tothe Indian economy and accounts for 35% of the GDP.However, this sector is in a fragmented state with over 12million outlets operating in the country and only 4% ofthem being larger than 500 sq ft in size. This is in

comparison to 0.9 million outlets in USA, catering to morethan 13 times of the total retail market size. Thus, Indiahas the highest number of outlets per capita in the worldwith a widely spread retail network but with the lowest percapita retail space (@ 2 sq ft per person as compared to16 sq ft per person for USA). The Indian retailing industryis currently estimated at $205 b (Rs.930, 000 Crores) andis expected to grow at 5% p.a. The current size of theorganized retailing market is $6 billion (Rs.28,000 Crores),thereby, a mere 3% of the total retailing market with aprojected growth rate of 25 30% p.a. and is estimated tobecome $8 b (Rs.35,000 Crores) by 2005 and $24 b(Rs.100,000 Crores) by 2010, with its contribution to totalretailing sales likely to rise to 9% by decade end.


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CompanyProfile

Big Bazaar is both big and a bazaar. It is unlike, say, aWalmart or even a Food world. Big Bazaar is almost anair-conditioned version of any Indian bazaar. Big bazaar isthe companys foray into the world of hypermarket

discount stores, the first of its kind in India. Price and thewide array of products are the USPs in Big Bazaar. Closeto two lakh products are available under one roof at priceslower by 2 to 60 per cent over the corresponding marketprices. The high quality of service, good ambience, implicitguarantees and continuous discount programmes havehelped in changing the face of the Indian retailing industry.A leading foreign broking house compared the rush at BigBazaar to that of a local suburban train. Food Bazaarscore concept is to create a blend of a typical Indian Bazaarand International supermarket atmosphere with theobjective of giving the customer all the advantages ofQuality, Range and Price associated with large formatstores and also the comfort to See, Touch and Feel theproducts. The company has recently launched an

aggressive private label programme with its own brands oftea, salt, spices, pulses, jams, ketchups etc. Withunbeatable prices and vast variety (there are 42 varietiesof rice on sale), Food Bazaar has proved to be a hit withcustomers all over the country.


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Outlet 146 outlet,located in India

Parent group Future group

Owner Kishore Biyani (CEO)

Founded 2001

Head quarter Jogeswari,Mumbai


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Industry Retail

Website www.bigbazar.com

Tag line Is se sasta aur achha kahinahi.

Figure : About Big Bazaar

Big Bazaar is a chain of shopping malls in India, owned by

the Pantaloon Group and which work on Wal-Mart type

economies of scale. They have had considerable success

in many Indian cities and small towns. Big Bazaar

provides quality items but at an affordable price. It is a

very innovative idea and this hypermarket has almost

anything under one roof Apparel,

Footwear,Toys,Household Appliances and more. The

ambience and customer care adds on to the shopping

experience.

Is Se Sasta Aur Accha Kahin Nahin !

Big Bazaar, Indias largest hypermarket chain, a part of

the Future Group, launched their first store in Gangtok.

The new Big Bazaar, a two-level 22,000 sq.ft. Store
http://www.bigbazar.com/http://www.bigbazar.com/http://www.bigbazar.com/


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introduces the people of Gangtok to a unique, modern and

convenient shopping experience for the entire family. Withthe opening of this store, the total count of Big Bazaar

stores reached 146 nationally.

Situated at Namnang Commercial Complex, Namnang

Road, the store caters to a huge array of products from

food, apparels, mobile phones, home crockery, utensils,

plastics, personal care, home care and much more.

After having opened several stores in the north-east

including Guwahati and Siliguri now venturing into Sikkim

with a first store in Gangtok. This store will give customersan opportunity to shop for all their requirements right from

food, essential items, apparels and others while offering

the benefit of saving and enjoying the experience with

their entire family.

What's in store for you at Big Bazaar?

1,70,000 products at 6- 60 % discount. At Big Bazaar, youwill get: A wide range of products at 6 60 % lower than


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the corresponding market price, coupled with an

international shopping experience.

Products available in Big bazaar

Apparel and Accessories for Men, Women and Children.Baby Accessories Cosmetics

Crockery Dress Materials Suiting & ShirtingElectrical Accessories ElectronicsFootwear ToysHome Textiles Home NeedsHousehold AppliancesHousehold Plastics HardwareHome Dcor LuggageLinens SareesStationery Utensils & Utilities

Food Bazaars core concept is to create a blend of atypical Indian Bazaar and International supermarketatmosphere with the objective of giving the customer allthe advantages of quality, Range and Price associatedwith large format stores and also the comfort to See,Touch, and Feel the products. 'FOOD BAZAAR' a divisionof Pantaloon Retail India Ltd is a chain of largesupermarkets with a difference. It was flagged off in


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April'02. With store sizes ranging from 8,000 sq ft to

15,000 sq. ft. in Mumbai (two stores), Kolkata, Bangalore& Hyderabad, it is opening more stores at Gurgaon(Delhi), New Bombay & Nagpur. It currently caters to over1.2 million customers every day across 4 outlets in Indiaand is soon set to expand and double this figure across 12outlets all over the country by June 2009. Food Bazaaroffers the Indian consumer the best of Western and Indian

values.The western values of convenience, cleanliness andhygiene are offered through pre packed commodities andthe Indian values of "See- Touch- Feel" are offeredthrough the Mandi atmosphere created by displayingstaples out in the open, all at very economical andaffordable prices without any compromise on quality. Thissatisfies the Indian consumer and comforts her beforemaking her final buying decision. At other super markets,the consumer is deprived of this factor. Truly the Indianconsumer now agrees with Food Bazaar: "Ab GharChalaana kitnaAasaan.

This positioning platform of Food Bazaar is evidentfrom the higher discounts and the wholesale price-pointswhich are below MRP. Food Bazaar represents the

companys entry into food retail and is targeted across allclasses of population, tea, sugar, pulses, spices, ricewheat etc, besides fruits and vegetables. All products aresold below MRP and discounts range between 2% to 20%.Fruits and vegetables are sold at prices comparable to


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GROUP VISION AND MISSION:

Group Vision

Future Group shall deliver Everything, Everywhere, Everytime for Every Indian Consumer in the most profitablemanner.

Group Mission

We share the vision and belief that our customers andstakeholders shall be served only by creating andexecuting future scenarios in the consumption spaceleading to economic development.

We will be the trendsetters in evolving deliveryformats, creating retail realty, making consumptionaffordable for all customer segments for classesand for masses.

We shall infuse Indian brands with confidence andrenewed ambition.

We shall be efficient, cost- conscious and committedto quality in whatever we do.

We shall ensure that our positive attitude, sincerity,humility and united determination shall be the drivingforce to make us successful.


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Core Values

Indianness: confidence in ourselves. Leadership: tobe a leader, both in thought and business.

Respect & Humility: to respect every individual andbe humble in our conduct.

Introspection: leading to purposeful thinking.Openness: to be open and receptive to new ideas,

knowledge and information.Valuing and Nurturing Relationships: to build longterm relationships.

Simplicity & Positivity: Simplicity and positivity in ourthought, business and action.

Adaptability: to be flexible and adaptable, to meetchallenges.

Flow: to respect and understand the universal laws ofnature.


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SWOT ANALYSIS:

Strengths:-

EDLP [ Every Day Low Pricing]Experienced marketing team & executive staff.Strong culture, ethics and values are followedEmphasis on providing total customer satisfaction

Point of purchase promotion to increase the purchaseVariety of stuff under single roofIncrease sales with the help of healthy competitionbetween different departmentMaintains good employer-employee relationCost control initiatives that is critical in a retail operationsbusiness

Periodical reviews of the various operations have beendone on regular basis to identify the any possible threatand address the same within time

Weakness:-

Unable to meet store opening targets.Unavailability of popular brand items with regard toclothing.


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Opportunities:-

Population of the country is growing where the scope ofmarket is kept on increasing for the retail sector.Organized Retail less penetrated in India so it acts as agreat opportunity to the organization for its growth.Evolving consumer preferences.Economy is developing as the employment opportunities

are increasing and the income of the people is alsoincreasing which increases life standards of people.Company has more scope of expansion in two and threetier cities.

Threats:-

Competitors StrategiesAdvancement of technology day by day.Government policies.Unorganized Retail sectorForeign direct investment cause more problems in futurebecause of that many mergers and acquisition arehappening in Indian retail sector


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A layout chart of Big bazaar located at GANGTOK

1. HELP DESK2. KIDS ACCESSORIES3. BABA SUITS4. JACKETS5. LADIES TOPS6. TRIAL ROOM

7. PILLARS USED FOR DISPLAYING INFORMATION(SIZE CHART, SECTION DESCRIPTION)8. WOOLEN CLOTHS FOR KIDS9. KIDS CASUAL WEAR10. KIDS JEANS AND SHORTS11. LADIES ETHINIC12. LADIES ACCESSORIES LINGERIES13. LADIES WESTERN14. MEN FORMAL SHIRTS15. MEN TROUSERS16. MEN SUITS AND BLAZERS17. MEN FABRICS18. MEN ETHINICS19. SOFT TOYS20. MEN ACCESSORIES SUNGLASSES, WRIST

WATCHES ETC21. HOME DECORATIVE ITEMS22. HOME FURNISHING (CURTAIN CLOTHS,CARPETS)23. MUSIC COUNTER24. LUGGAGE


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25. FOOTWEAR

26. SPORTS27. SCHEME BASED PROMOTIONAL ITEMS28. FURNITURE BAZAR29. FOOD BAZAAR30. CASH COUNTER

TARGET AUDIENCE:

Big Bazaar targets higher and upper middle classcustomers

The large and growing young working population is apreferred customer segment

Targets specifically working women and homemakers who are the primary decision makers

BIG BAZAAR-USP:

Availability of Liquid Cash \Disposable Incomeamong Young GenerationAffordable man power Craze, Passion among Mr.

Customer (Consumer) More products .Under ONE roofAffordable priceSentiments -To infuse confidence in Indian brandsSchemes-Buy 01 gets one free, 20% dis...etc


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STRATEGIES:

To minimize Retailing cost:Operating: Fewer staff on the floor-one person for

every 500 sq ftMinimize the Furniture cost Sourcing: Cut Down 25-30 %Channel-Cut Down 15-20%

Saving Shelf SpaceWay to deal unsold stock off Plans to have In-Store promotions as well slow-

moving products off To ensure enough pull to snatch away customers

from the neighborhoodTodays Price:Everyday a chosen product is being

sold at lower than usual price

Big Bazaars New Marketing Strategy:

Big Bazaar has launched new marketing strategywhich is based on Guerrilla Marketing. Guerrillamarketing warfare strategies are a type of marketingwarfare strategy designed to wear-down the enemy

by a long series of minor attacks, using principles ofsurprise and hit-and-run tactics. Attack, retreat, hide,then do it again, and again, until the competitormoves on to other markets. Herein guerrilla force isdivided into small groups that selectively attack the


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target at its weak points. Corporate like Coke, Pepsi,

etc have been using the same for quite some timenow and the latest entrant is Future Group- BigBazaar, Pantaloons, Future Bazaar, eZone are allpart of this group and they are taking on the biggieslike Shoppers Stop, Lifestyle, and Tatas Westside.

In order to do the same, Future Group have come up

with 3 catchy/cocky and cheeky ad campaigns whichsurely do catch our eyes and surely one cant resistappreciating the same.Keep West-aSide. Make a smart choice!Shoppers! Stop. Make a smart choice!Change Your Lifestyle. Make a smart choice!

EXTERNAL ENVIRONMENTAL FACTORS:4Ps OF MARKETING

"Marketing" is the promotion of products, especiallyadvertising and branding. Marketing practice tends to beseen as a creative industry, which includes advertising,

distribution and selling. Marketing mix is a deciding factorin formulating marketing techniques for the success of aparticular brand, commodity or company. The componentsof marketing mix are:


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ProductPricePromotionPlace

PRODUCT:

Big Bazaar offers the maximum variety for each category

of product. The product is the same in every store in thecity but the brand options are more in Big Bazaar. Also,the quantity for each product is not limited to large packsonly. The commodities sold by the retail chain alsoincludes its own products (Private Labels) which get aready distribution network. The own products of BigBazaar include My World fashion magazine which is not

available anywhere else. So costs are low for suchproducts.

PRICE:

Price is the critical point in a competitive industry. BigBazaar works on a low cost model. It considers itsdiscounted price as its USP. There is an average discount

of 7-8% on all items in respect to their MRP. Prices ofproducts are low because it is able to secure stock directlyfrom the manufacturer. There are huge synergies in termsof bulk purchasing, central warehousing and


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transportation. These all factors help this retailer to keep

low prices.Low margin, High sales volumes

Low Interest Financing

Centralized sourcing

Discount pricing

Value pricing

Promotional pricing-Psychological discounting-Special event pricing (Republic day)

Differentiated pricing-Time pricing

Bundling

PLACE:

Place means the location of the business. Big Bazaar hasalways worked on low-cost locations. It targets semi-urbanpopulation with its placement. Its strategy is to find a

cheap location and it never goes for hot spots in the city. Itrelied on promotional activities to make up for unattractivelocations. Another strategy used by Big Bazaar toovercome location disadvantage is use of internet. It haslaunched a merchandise retailing website


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www.futurebazaar.com which targets high-end customers

ready to use credit cards. The promotion of this website isdone through advertisement on Google. The website is putas sponsored link. Initially identifies future/potentialdevelopment areas Acquires such areas at an early phasebefore the real estate value booms designed to lookcrowded

PROMOTION:

Big Bazaar has huge promotion budgets. The biggest ideabehind all advertisements is to make people do bulkshopping. There are 2 types of promotional strategies ofbig bazaar. One is the holistic advertisement whichpromotes the brand and creates awareness amongpeople. It is not targeted at promoting each store but onlycreates an image of Big Bazaar as low-cost shoppingoption. The store has advertised through TV, road showsand also started reality show-typed promotional campaignThe Big Bazaar Challenge. Promotions like SabseSasta Din are a very successful strategy to get footfall. Inthese products across categories such as apparels,furniture, electronics, utensils and food products at the

lowest possible prices, coupled with attractive promotionalschemes. Some of the most attractive offers being a 20-litre branded microwave oven with grill for Rs 2,499, jeansand trousers for Rs 199 and HCL laptops for Rs 22,990.


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Other type of promotion is the particular store oriented

promotion which includes speaking on the loudspeaker innearby blocks. Leaflets are given in local newspaper.There are promotional efforts even inside the store. Buy 2Get 1 Free types of promotions are very common. Originalprices are cut down and new prices are shown, of whichcustomer takes quick notice. There are loyalty schemeswhich reward regular clients. Promotion is also done

through co-branded credit cards with ICICI bank. MonthlyBachat Offers (Offer available at Big Bazaar stores in allover India):Big Bazaar is offering monthly bachat offers and some ofthem are:- Hello Royal Basmati Rice + Fortune Sunflower Oil + 5kgs of refined sugar, each worth Rs. 1080 - forRs. 659 only- Tilda Khush Long Grain Rice (5 kgs) worth Rs. 440 - forRs. 159 only- Fortune Sunflower Oil (5 litres) worth Rs. 450 - for Rs.262 only- Cow Ghee worth Rs. 200 - For Rs. 189 only- Britannia Marie Gold (370 grams) Rs. 25 - Buy 1 get Rs.3 off or Buy 2 get Rs. 8 off

- Buy a Bournvita pouch pack (500 grams) worth Rs. 124and get a free Britannia Good Day packetworth Rs. 12- Buy Super Cup Tea (1 kg) worth Rs. 240 and get 500 kgworth Rs. 105 free


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- Buy Bambino Vermicelli (1 kg) worth Rs. 40 for Rs. 35;

and get Bambino Macaroni (180 grams) worth Rs. 12 free- Buy onions (1 kg) worth Rs. 17 - for Rs. 14.90 only- Buy potatoes (1 kg) worth Rs. 9.50 - for Rs. 7.90 only- Buy Surf Excel (2 kg) worth Rs. 280 and get free Vim bar- Buy Head & Shoulders Shampoo (400 ml) worth Rs. 215and get a free Head & Shoulders 90 ml men's shampooworth Rs. 69

Future card (3% Discount)Baby registry and marriage registry-targeted towardsmarried couple, waiting for marriageShakti cardAdvertising (Print ads, TV ads, radio)Tying up with IPL targeting sports loversCelebrity endorsements-Brand endorsement by M.S.DhoniExchange offersWeekend discountsPoint of Purchase promotionsJunk swap offer-Exchange anything old for somethingnew

OPPURTUNITIES:

Early Entry in Indian Retail

Organized retail

Evolving consumer preferences


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Targeting area more prone to developments

Global Expansion

In-Store Experience improvements

THREATS:

Government policies like complex sales and excisepolicies.

Unorganized retail.

Large Foreign Competitors like Wal-Mart, Metro and

Domestic player like Reliance.

Burgeoning real estate prices which leads to high

rentals.Economic Conditions

Lowering Margins


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SALES PROMOTION OFFERS:

MONTHLY BACHAT BAZAAR

WEDNESDAY BAZAR(every Wednesday)

PRICE CHALLENGE

GREAT EXCHANGE OFFERS

THE GREAT INDIAN KITCHEN FESTIVAL BIG DAY

AMAR CHITRA CONTEST

THE GREAT INDIAN SHOPPING FESTIVAL

FESTIVAL OFFERS.

ACTIVITY DETAILS:

Hoarding at deorali and opposite Vajra Ciinema

Cinema Slide in Vajra and Denzong hall.

Cable Scroll in local channel Nayuma and Flash in

Nayuma news.

Newspaper insertion.

Maruti Van announcement in catchments

Mahabachat stamp in bills for 5th August.


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Rally in ImmediateCatchments.

Free home delivery for Mahabachat 6 days.

Poster in local format.

Human banner at Deorali Nam nang road divertion and

MGMarg.

CHALLENGES:

Waiting time in terms of Billing at Big Bazaar outlets is

a concern and more so during the weekends. Andduring our personal observation while observing theoperations(Though it was for 3-4 hours which is ashort period of time),it was noted that few customerswho had little to purchase, left their trolleys due tolong queue at the counter. The store has too many things at the same place.

The floor plan has to be structurally laid out so that

merchandising can be efficiently handled anddisplayed.

Availability of most exclusive brands under allcategories

Product Uniqueness- Offer merchandise of highest quality


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Key element

Composition of Retail Mix

1) Place (store location)

Target marketChannel structureChannel managementRetailer image Retail logistics

Retail distribution

2) Product (merchandise)Product developmentProduct managementProduct features and benefitsBranding

Packaging

3) Price

CostsProfitability

Value for moneyCompetitivenessIncentivesQualityStatusAfter-sales services

4) Promotion

Developing promotional mixesAdvertising management

Sales promotionSales managementPublic relationsDirect marketing


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5) People element

Staff capabilityEfficiencyAvailabilityEffectivenessCustomer interactionInternal marketing

6) Process element

Order processingDatabase managementService deliveryQueuing systemStandardization

Retail mix planning

Retail mix plan consists of:Setting objectivesSystematic way of identifying a range of options. Formulation of plans for achieving goals Logical sequence of retailing activities.

Importance of Retail mix planningHostile and complex retail environmentExternal and internal retail organization factors

interact forMaximising revenueMaximising profitMaximising return on investmentMinimising costs


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Each element has conflicting needs

All these variables interactAll these variables result in optimum compromise.

RetailingRetailing is the sale of goods and services to ultimate

consumers for personal, non-business use. Any institutionmay engage in retailing, but a firm engage primarily inretailing is called a retailer. Retailers serve as purchasingagents for consumer and as sales specialists forproducers and wholesaling middleman. They performmany specific activities such as anticipating consumerswants, developing product assortments and financing.Retailers may be classified by form of ownership and keymarketing strategies. Also, types of retailers distinguishedaccording to product assortment, price and customerservice levels. Mature institutions such as departmentstores, discount houses and super markets face strongchallenges from new competitors, particularly chain storesor multiple shops in various product categories. Five majorforms of non store retailing are Direct selling,

Telemarketing, Automatic vending, On line retailing andDirect marketing .Each type has advantages as well asdrawbacks.

Retail Marketing Mix


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Whatever is from of ownership, a retailer must developmarketing mix strategies to succeed in its chosen targetmarkets. In retailing, the marketing mix emphasizesproduct assortment, price, location, promotion andcustomer services designed to aid in the sale of a product.They include credit, delivery, gift wrapping, productinstallation, merchandise returns, store hours, parking and

very important personal service. Stores of different sizesface distinct challenges and opportunities. Buying,Promotion, Staffing and expense control are influencedsignificantly by whether store's sales volume is large orsmall. Size of a retail business creates certain merits anddemerits. Considering these factors, large stores ordinarilybut not always have a competitive advantage over smallstores.

Marketing Strategy

Many authors have attempted to explain the concept ofstrategy. At the retail level, a marketing strategy can bethought of three major components: target selection of

customers, core strategy (i.e. positioning and differentialadvantage), and implementation (i.e. supporting marketingmix). The first major component is the description of themarket segment(s) to which competing brands are beingmarketed. Market segments can be described in various


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ways. Since few brands are truly mass marketed, the key

is to determine which group each competitor has targeted.The second strategy component is what is called the corestrategy. This is the basis on which the rival is competing,that is its key claimed differential advantage(s).Differentialadvantage is a critical component of strategy because itusually forms the basic selling proposition around whichthe brand's communications are formed. It is also called

the brand's positioning. The final strategy component ofcompetitors must be assessed in the supporting marketingmix. The mix provides insight into the basic strategy of thecompetitor and specific tactical decisions. These decisionsare what customers actually see in the market place. Infact, customers are exposed to price, advertising,promotion and other marketing mix elements.

Research title:

The title of the research project is:Effectiveness of Retailing Mix for Customer

Satisfaction,Sales promotion,Marketing Mix andCustomer Relationship at Big Bazar Gangtok.

Research Problem:


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What is effectiveness of Retailing Mix at Big Bazaar

leading to Customer Satisfaction?Research Objective:

Primary objectives: To identify performance of store operations. To analyze how the merchandising mix influence the

customer satisfaction level.Secondary objectives:

To understand the quality of service maintained in thestore. To determine the performance of sales persons in the

store. To find out reasons of dis-satisfaction. To find out which means of communication plays a

vital role to persuade customer.Scope of study

The study makes an effort to ascertain the satisfactionlevel of customers from the store environment and analyzethe impact of retailing mix on the customer satisfactionlevel, and to improve the store environment to increasethe sales and to attract the customers.The company can come up to the expectation only byfinding out the problem that customers are facing during

their purchase from the store. The subject has been takenfor the research as it plays key role in success of retailsector. As long as the company is able to satisfy itscustomer, customer will remain in the bracket of loyalcustomer. This study helps to improve the environment of


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the store to reach the customer satisfaction level and

improve the merchandising in Big Bazaar.

Objectives of Research:The purpose of research is to discover answers toquestions through the application of scientific procedures.The main aim of research is to find out the truth which ishidden and which has not been discovered as yet. Though

each research study has its own specific purpose, we maythink of research objectives as falling into a number offollowing broad groupings: To gain familiarity with a phenomenon or to achieve

new insights into it (studies with this object in view aretermed as exploratory or formulative researchstudies);

To portray accurately the characteristics of aparticular individual, situation or a group (studies withthis object in view are known as descriptive researchstudies

About the Survey:Survey Title : Effectiveness of Retailing Mix for CustomerSatisfaction at Big Bazaar,Sales promotion, marketing Mix

and customer relationship.Sample Universe: Big Bazaar StoreSampling Method: Non-probability sampling was used.Non-probability sampling is that sampling procedurewhich does not afford any basis for estimating probability


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that each item in population has being included in the

sample. Under non-probability sampling organizers ofenquiry purposely select particular unit of universe forconstituting a sample on the basis of the small mass thatthey so select out of huge one will be typical orrepresentative of the whole. Adequate consideration wastaken to bring a heterogeneous group in terms of age,income, occupation etc. to make the results credible.

Sample Size : 100 Respondents.Analysis Techniques:

Time: The survey of 100 respondents was finished in onemonth.

Response Format :The questions are a mix of open-ended, close-endedquestions, binary, ranking and multiple choicequestions. They have been so inserted into thequestionnaire, to get the appropriate response for a


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particular situation.

Limitations of the study: Time Constraint : Analysis pertaining to project title

and the field survey has to be done in a span of twomonths. This may limit the scope of the survey.

Biasness: The respondents may give a biased view.Some respondents refuse to co-operate.

Some respondents replied half heartedly.


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Some respondents gave incomplete information.

Observations & Finding

Store is performing well in attracting the customers.Most of the people who visit to the stores are of age

group between 22-45 yrs.

People usually visit the store once in a week i.e. inweekends

They have different variety of product in food bazaarand house hold utensils

The main dissatisfaction for the customer is in thebilling section and at parking space.

Discounts and offers are doing well in the store.

Most of the customers who visit stores are havingannual income between Rs.1.5-3 lac.Inside the store, employees interaction is very less

with customers. Location of Big Bazaar is outstanding.Cleanliness and hygiene maintained in the store is

not up to mark.Big Bazaar provides value added service like home

delivery, alteration, helpline etc. but very fewcustomers go for it.

Electronic and print media has high reach inconsumer and plays a major role in communicationabout promotional scheme and offers where as word


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of mouth make significant impact in decision making

than any other means of communication.Customers dont find brands they expect in Big

Bazaar especially in apparels section.

Conclusions

Big Bazaar offers a wide variety of products of

different prices and different qualities satisfying mostof its customers.Prices and offers in Big Bazaar have been one of the

main attractions and reasons for its popularity. Theprice ranges and the products offered are verysatisfying to the customers.

Considering the fact that there are huge middle classfamilies in India, Big bazaar has had a huge impacton the middle class section of India, the prices,variety and sales strategy has helped in getting themiddle income groups getting attracted towards BigBazaar.

The store layout and the assortment of goods is notthe best at Big Bazaar, Customers find it hard to findwhat they require; this leads to dissatisfaction of

customers.Big Bazaar is not acclaimed for high class service.

The staffs recruited is not very well trained and thebilling queues take a long time to move, this irritates


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customers which makes them visit the store more

seldom. The customer get all kind of products in the Big

Bazaar, i.e. they are following good merchandisingmix, but in some section like apparels they have tokeep different brands in order to attract morecustomer.

Word of mouth publicity played major role in making

Big Bazaar so popular where as media is used tocommunicate new offers at the store.Customers are not aware and hence dont avail value

added services provided by the store.Customers are more satisfied with the merchandising

present in the food bazaar and household utensilssection.

Recommendations

The following suggestion can be given to Big Bazaar Keep brands like Koutons, Cotton County which is

well known for offers.Cleanliness and hygiene should be maintained regularly. External environment like parking area should be

increase as most of customers face problem ofparking specifically during rush hour.

The billing time should be reduced by increasing no.of cash counter keeping in view customer trafficintensity.


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Documents

Big Bazar Project Report