A

PROJECT REPORT ON

“Comparative study of service quality of BIG BAZAR and NATIONAL HANDLOOM

Submitted to the

UNIVERSITY OF RAJASTHAN, JAIPUR

Submitted to: Submitted by:

DR. DILEEP SINGH YASH AGARWAL

(Faculty of business administration) B.B.A. PART-II

Enroll.no.

Roll. No.

2015-16

UNIVERSITY COMMERCE COLLEGE, JAIPUR

Certificate

This is to be certify that YASH AGARWAL has submitted his project titled “Comparative study of service

quality of BIG BAZAR and NATIONAL HANDLOOM” on the given due date. During his work; he was

found to be a competent and hard working student. I wished him all the best for the future endeavors.

DR. DILEEP SINGH

(…………….)

STUDENT DECLARATION

I hereby declare that the present report entitled “Comparative study of service quality of BIG BAZAR

and NATIONAL HANDLOOM” is based on my original work and I have not copied it from anywhere or

earlier such report prepared by seniors. I further declare that I have not submitted this report anywhere else.

YASH AGARWAL

BBA IV SEM

PREFACE

This project report has been prepared as per the requirement of the syllabus of BBA course structure under

which the students are the required to undertake industrial internship. I undertook my training at National

Handlooms at its service unit at Retail sector in India.

My job during the project was to get an overview of the Retail services in Jaipur.

It was a firsthand experience for me as it was the first time that I was exposed to the professional set-up and

was learning the services in retailing, which was really a great experience.

In addition, technological changes were witnessing power shift from old hectic and weird ways of doing

business. These technological developments have brought revolutionary changes in the market and also in the

mindset of the people which might be positive and encouraging for a section of society and adverse for the

others.

ACKNOWLEDGEMENT

I express my sincere thanks to the staff of National handloom and my college project guide DR. DILEEP

SINGH for guiding me right till the successful completion of the project. I sincerely acknowledge them all

for extending their valuable guidance, support for literature, critical reviews of project and the report and

above all the moral support with they provided to me with all stages of this project.

I would also like to thank the support given by the staff of National handloom, for their help and cooperation

throughout my project.

YASH AGARWAL

TABLE OF CONTENTS

Chapters Descriptions

1. Introduction to the industry

2. Introduction to the Organization

3. Research Methodology

4. Facts and Findings

. Data Analysis and Interpretation

. SWOT Analysis

5. Conclusion

..Recommendation and Suggestion

6. Appendix

. BIBLIOGRAPHY

Executive Summary

The topic is Comparative Study Service Quality of Big Bazaar and National handloom. We know that there

are several retail shops but Big Bazaar and National Handloom is extensively used by people in Jaipur.

National handloom is a traditional store and big bazaar is new trend retail store.

We know that people are attracted towards the good services. It is sometimes said that success is the result of

a good plan well executed. For a retailer, plans are mostly formulated at corporate headquarter and executed

in their stores. Corporate planning functions include choosing the assortment of products to carry in each

store at each point in time, setting store inventory levels and product prices, setting staffing levels,

determining how many stores to have and where they are located and creating the physical design of stores

and plan grams that specify the location of all products within each store. Services provided by the retail

store shows what type of retail store it is. Services quality helps the customer to analyze the store.

INTRODUCTION TO THE

INDUSTRY

INTRODUCTION

A service quality is a critical element of customer perception. Services

researcher have suggested that consumers judge of quality of services is based

on their perception of the technical outcome.

Service may be defined as intangible activities performed by persons or

machine or both for the purpose of creating values perceptions amongst

customers. And quality is considered to be one of the management’s top most

competitive priorities and prerequisite for sustenance and growth of firm.

Customer perceives the quality of the services in two dimensions what they

get and how they get it. Service quality help in fulfillment of customer

expectations.

This paper helps to investigates how closely customer expectations are

matched. Customers do not perceive the quality on one-dimension way but

rather judge quality on the multiple factors relevant to the context. The five

dimension of the service quality are- reliability, responsiveness, assurance, and

empathy, tangible. These dimensions represent how the consumers organize

information about service quality in their minds. These dimensions are

referring to the retail and business.

Brief history of National handloom: -

National handloom is providing quality services to customers since 1979. Its

branches are in Jodhpur, Jaipur, Barmer, & Ahmedabad. It provides the

facility of home delivery and online shopping.

Traditionally the retail business is run by having Shop in the front & house at

the back. More than 99% retailers function in less than 500Sq.Ft of area. All

the merchandise was purchased as per the test & vim and fancies of the

proprietor also the pricing was done on ad hock basis or by seeing at the face

of customer. Generally, the accounts of trading & home are not maintained

separately. Profits were accumulated in slow moving & non-moving stocks

which were to become redundant or consumed in-house. Thus profits were

vanished without their knowledge.

The Manufactures were to distribute goods through C&F (Carry and Forward)

agents to Distributors & Wholesalers. Retailers happen to source the

merchandise from Wholesalers & reach to end-users.  The merchandise price

used to get inflated to a great extent till it reaches from Manufacturer to End-

user. Selling prices were largely not controlled by Manufacturers. Branding

was not an issue for majority of customers. More than 99% customers are

price sensitive & not quality or Brand Sensitive at the same time they are

Brand conscious also.

Brief history of Big Bazaar: -

Big Bazaar has already plotted its own identity in the world retail. Big Bazaar

is retail chain of hypermarket in India that reaches to the customers with every

need at reasonable prices. This retail store is the subsidiary of the Future

group. There are 121 stores of Big Bazaar in India. This shopping store mainly

attracts middle class and lower-middle class with the discounted pricing and

lucrative offers at different products. In the year 2002, Big Bazaar introduces

Food Bazaar as a Shop-In-Shop pattern.

In this project we have to compare the service quality of the Big Bazaar and

National handloom. Both are the retail store but they have different marketing

strategy. They adopt different services for the customer to attract their retail

store.

The word "Retail" originates from a French-Italian word. Retailer is someone

who cuts off or sheds a small piece from something. 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 customers on a relatively small

scale. Retailer is a Person or Agent or Agency or Company or Organization

who is instrumental in reaching the Goods or Merchandise or Services to the

End User or Ultimate Consumer.

Indian retail industry is the largest industry in India, contributing to over 13%

of the country's GDP. Organized retail industry in India is expected to rise

35% yearly being driven by strong income growth, changing lifestyles, and

favorable demographic patterns. It is expected that by 2011-12 modern retail

industry in India will be worth US$ 590 billion. It has further been predicted

that the retailing industry in India will amount to US$ 833 billion by 2013 and

US$ 1.3 trillion by 2018. Shopping in India has witnessed a revolution with

the change in the consumer buying behavior and the whole format of shopping

also altering. Industry of retail in India which has become modern can be seen

from the fact that there are huge shopping centers, malls and sprawling

complexes which offer food, shopping, and entertainment all under the same

roof. Indian 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.

Introduction to retail industry

Define retailing

Explain the role of retailing in sorting

Describe the Impact of retailing on the economy

Explain the four major principles of the retailing concept

Describe the key drivers of retailing in India

Describe the changes happening in the Indian retailing scenario

Definition of Retailing:

Retailing may be defined as the collection of business activities involved in

selling tangible /intangible (i.e. services like telecom, travel, railway etc)

physical goods for personal, family or household/office/organizational use.

The range of the goods sold varies from cars to theater tickets. Retailing also

involves the sale of services directly to the consumers. A service may be the

shopper’s primary purchase (such as a haircut) or it may be part of the

shopper’s purchase of a product (such as a delivery). Retailing does not

necessarily involve a store. It may comprise new forms of shopping such as

tele-shopping, online shopping, shopping by mail order, direct selling to

consumers in their homes and offices, vending machines sales etc. retailing is

the last stage in the distribution process. Retailers play a key role and act as a

point of contact between manufacturers, wholesalers, other suppliers and the

final customer.

Role of Retailing in Sorting Process:

Usually, manufactures wish to make one basic type of item and sell the entire

inventory to as few buyers as possible. Customers, on the other side, usually

like to choose from a variety of goods and services and purchase a limited

quantity. Retailers collect an assortment from various sources, buy in large

quantity, and sell in small amounts. This is known as the “sorting process”.

The retailer helps in this sorting process, thus providing, a wide range of

choice to the customer. The term sorting refers to the retailer’s action of

collecting an assortment of goods from various sources, and selling them in

small amounts to the customers.

Impact of retailing on the economy: Organized retailing in India is currently estimated at Rs 30,000 crores (from

rs. 5,000 crores in 1999) and is growing at a steady rate of about 12 percent,

making it among the fastest-growing industries in the country

Retail accounts from about 13.5 percent of the country’s GDP.

It generates employment opportunities in the country.

Marketing Concept in Retailing:

There are four major principles of the marketing concept that all retailers

should understand and apply. These are:

Customer orientation

Coordination efforts

Value driven

Goal orientation

Customer Orientation:

The attributes and needs of the customers are determined by the retailer, who

then tries to satisfy these needs to the fullest. For example, on determining that

a certain customer is particularly fond of checkered shirts, the retailer may

contact him when a new exclusive line of such arrives at his store.

Coordinated Effort:

All plans and activities in the store are combined by the retailer so as to

maximize efficiency.

Value driven:

The customers are offered retailer good value by the retailer.

This means fixing the prices which are pitched at the appropriate level of

products and services.

Goal Orientation:

The Retailer sets goals and then uses the right strategy to attain these goals.

Unfortunately, many retailers cannot grasp this concept. As a result, they are

indifferent to customers needs; plan haphazardly; have prices that do not

reflect the value offered; have unclear goals; are not receptive to change;

blindly follow strategies enacted by competitors; do not get feedback from

customers; rely on supplier reports or their own past sale trends.

Implementation of the retailing concept is very easy. It simply implies

communicating with the customers and viewing their desires as critical to the

organization’s success; having a consistent strategy (such as offering store);

offering prices perceived s ‘fair’ (a good value for the money) by customers,

and working to achieve meaningful, specific, and reachable goals. However, it

should be borne in mind that the retailing concept is only a strategic-guide and

it does not deal with a firm’s internal capabilities or competitive advantages,

but offers a broad planning framework that could be used as a road map

Key Retail Drivers Consumer pull:

Today, one can note a significant change in the retail market in comparison to

that of the eighties. The consumer now calls the shots and determines the

goods and services that a manufacturer should provide. Liberalization of the

consumer goods is one of the main reasons for this change. The two broad

segments into which consumerism can be divide are: high-income segment

and middle and lower income group. While the involvement level of high-

income segment in shopping is very low, the middle and lower income group

is very actively involved and very highly value-conscious and looks for

bargains. Hence, this segment of consumers is the retailing target. Rising

incomes:

The last decade has seen a major rise in the income of the Indian consumer.

This rising income has generated the demand for higher quality consumer

goods/higher priced products.

Change in consumer behavior:

Today’s consumers are always hard pressed for time and so they hunt for a

variety of things under a single roof. They also look for better customer

service, product quality and hygiene.

Entry of the corporate sector:

Lately, the investment made by large business houses like reliance, Tata and

ITC in retailing has sparked the growth of the retail sector in a big way.

Building Different Retail Formats:

Different retail formats like supermarkets, mails departments stores etc. have

now emerged to suit the convenience and needs of the consumer.

Better supply chain:

A significant change has been noted in the way goods are organized and

delivered to the retailer, which includes better warehousing and packaging

facilities.

Impact of technologies:

Various operations in a retail store such as inventory management, bill

payment and database management have now been computerized. Also,

electronic surveillance systems are being used to prevent theft of items. All

these technological inventions have revolutionized retailing. Role of

government in retailing:

the government regulates the working of retail stores through legislation and

implementation of taxation laws like ‘value-added tax(VAT)’.

The last decade has seen a major rise in the income of the Indian consumer.

This rising income has generated the demand for higher quality consumer

goods/higher priced products.

Change in consumer behavior:

Today’s consumers are always hard pressed for time and so they hunt for a

variety of things under a single roof. They also look for better customer

service, product quality and hygiene.

Entry of the corporate sector:

Lately, the investment made by large business houses like reliance, Tata and

ITC in retailing has sparked the growth of the retail sector in a big way.

Building Different Retail Formats:

Different retail formats like supermarkets, mails departments stores etc. have

now emerged to suit the convenience and needs of the consumer.

Better supply chain:

A significant change has been noted in the way goods are organized and

delivered to the retailer, which includes better warehousing and packaging

facilities.

Impact of technologies:

Various operations in a retail store such as inventory management, bill

payment and database management have now been computerized. Also,

electronic surveillance systems are being used to prevent theft of items. All

these technological inventions have revolutionized retailing.

Role of government in retailing:

the government regulates the working of retail stores through legislation and

implementation of taxation laws like ‘value-added tax(VAT)’.

Transformation in the Indian retailing scenario: Change in the retailing

scenario can be noticed due to the following reasons:

Demand for better products and retail experience from the customers.

New products, formats and competition

Better quality outlets

Change in scale/range of retail

Larger players in retail

Use of technology and improved processes

Rise of quality retail space

Investment and development of malls

The focus shifting from kirana to supermarkets

Large retailers having web sites

Shopping centers which are beginning to have large specialties retailers.

An overview on Retail Revolution in India

Retail in India is on a cusp of transformation. Organized retailing as a

professional service-oriented set-up, is a recent phenomenon in India but is

growing at a tremendous pace with a potential of creating over 2 million new

(direct) jobs within the next six years, assuming an 8 to 10 per cent share of

organized retailing in the total retail business.

The fast changing retail environment demands that professionals learn new

skills, improve their efficiency, learn to compete and think out of the box. As

retailers work directly with customers and there is need for good managerial

talent to interpret and satisfy the needs and desires of customers. All this

requires an education that is intensive, comprehensive and closely linked to

the retail business world. The need is to have a program which has all the

inherent features of a business management program and includes experiential

learning throughout the program.

Market Trends, Challenges & Opportunities

Across BRIC countries, the food and grocery (F&G) segment is clearly

driving retail growth. For e.g., retail food sales dominate the total retail market

in Brazil, accounting for almost 54 percent of the total retail sales, while

Russia is the fastest growing retail food sales market in the world, with the

potential to again double in size by 2008.

The prevalence of English as a language of communication to a very great

extent facilitates material sourcing and business communication. While India

and Russia pose no problems in this regard, Brazil and China present

communication problems for foreign companies.

The importance of governments that are quick on decision-making and passing

liberal trade laws cannot be emphasized enough. In China, for instance, being

a non-democratic country makes it easier for foreign investors to do business

sans bureaucratic red-tapism (in comparison to a democratic country like

India), the obvious reason being that the political establishment is not directly

accountable to the people.

Growing urbanization and metropolitan saturation is leading to the expansion

of retail formats and investment opportunities towards tier-II cities and rural

hubs across all four countries.

Continued economic reforms together with the growth of organized retail

(especially in the F&G segment) have led to growing rural incomes, triggering

off far-reaching, social impacts. The upcoming ‘Golden Quadrilateral' plan for

roadways in India, which is to connect the four cities of Delhi, Kolkata,

Mumbai and Chennai, will have massive economic and social repercussions

on rural and semi-rural clusters along the vast network. In China too, the

government plans to create a rural retail network covering 70 percent of all

villages by 2008.

Process Credit Applications:

Credit cards are an important part of the retail industry. Whatever the case

may be, credit cards assist and encourage people to spend money on a wide

variety of purchases. Store credit cards are no different. Virtually every retail

chain store in existence offers their own store credit card. This encourages

customers to spend money in a specific retail store, especially when the store

offers special privileges and discounts to cardholders. Store credit cards aren't

just beneficial to the customer; they are also beneficial to the store. When

holding a credit card for a specific retail store, customers are much more likely

to shop at that store for what they are looking for what they want before going

into any other store. This increases the potential for sales in said store. When

given coupons, discounts, and other promotions and privileges, consumers are

even more likely to go to the store where they are a cardholder. More

customers mean more volume. More volume means more profit. So, we have

glossed over the benefits for the customers and the stores involved. What

about the most important people involved? That is the sales associate, of

course. The sales associate is the liaison between the credit card company and

the customer.

The sales associate offers the customer membership and provides details on all

of the privileges that cardholders receive. It is the sales associate's job to

entice the customer to open a credit card account, as well as to use it. The sales

associate is not forgotten in this process. The stores and banks involved often

offer incentives to sales associates that open new credit card accounts for

customers. For example, a sales associate receives $2 for every credit card

application processed. If an associate works an 8-hour day and processes 2

credit card applications, that averages out to an extra 50 cents per hour. So,

instead of earning $7.50 per hour, it averages out to $8 per hour. Plus, the

amount of credit card applications that a sales associate can process is

unlimited. Furthermore, there are sometimes extra incentives to associates

who process a certain number of credit card applications. A sales associate is

given a goal for the week (or day or month). Once the goal is reached, the

associate receives that incentive. For example, if you process 2 credit cards in

one week, your name gets entered into a drawing for $500 cash. Wouldn't that

be a nice addition to your monthly paycheck?

# Retail store operations:

Describe how to store staff should be managed

Explain the importance of store maintenance

List the steps used by retailers to effectively manage energy resources

State the steps to be adopted by retailers for store security

Describe the use of technology in retail operations

Personnel Utilization:

Many Retailers concentrate on the following aspects:

Implementing a good screening and hiring process to get the right staff.

Ensuring discipline of staff, attendance of customers, and proper level of

skills through employee training.

Having a good system of forecasting workloads, and ensuring that the right

numbers of store personnel are available. If a store is understaffed or faces

shortage of staff, this may mean that customers are not being properly served.

Overstaffing may mean an unnecessary expenditure in terms of staff salary

costs.

Training staff to ensure proper product knowledge, customer service,

familiarized with store processes, and cross-training to enable staff to learn

more than one job. This leads to an increase in the flexibility of operations.

Retailers often fix employee performance standards in the form of a sales

target (for salesperson), transaction speed and accuracy (for cashier). The staff

tends to be more productive when working towards achieving these specific

goals.

Store Maintenance/Energy Management:

Store maintenance includes the interiors and exteriors of a retail store.

Exteriors: - Building, parking lot, outside signs, outside displays etc.

Interiors: - walls, flooring, lighting, interior displays and signs, fixtures,

ceiling, painting, replacing lights, cleaning all surfaces, etc.

Carefully adjust interior temperatures during non selling hours.

Use computerized systems to monitor and adjust temperature levels to the

fraction of a degree. Saving electricity may be more when a store area is large.

Use high efficiency bulbs instead of traditional lighting.

Store Security:

Store Security comprises two types of security issues:

Personal security

Merchandise security

Personal Security:

Customers should feel safe while shopping in the store. Hence, retailers may

practice the following:

Appointment uniformed security guards inside the store

Engage vigilance staff (undercover) in plain clothes who are required to

stop criminal attempts

Improve lighting in store and in parking areas.

Install TV cameras, alarms, and monitoring systems

Ensure that bank deposits (of cash received) are made more frequently

Prevent fire accidents and use detection systems.

Merchandise Security:

Most retailers incur losses due to “inventory Shrinkage”

Shrinkage is caused by employee theft, customer shoplifting, fraud and

administrative errors by vendors and store personnel.

Shrinkage may be one to two percent of sales turnover (volume). Therefore,

care must be taken to control shrinkage.

Some activities that reduce merchandise losses areas as follows:

Product tags

Security guards

Video cameras

Employee surveillance

Burglar alarms

Electronic article surveillance – specially designed tags or labels attached to

products that can be tracked by electronic devices placed at store exits. If store

personnel do not remove the tags, an alarm goes off and shop lifters are

caught.

Backgrounds checks for each employee

Conducting training programs for employees to create an awareness about

ethical behavior

Seeking employees or prosecuting shop lifters involved in theft.

Mystery shoppers and in-store detectives to watch out for shop lifting.

Technology in retail operations:

Many large retailers choose high technology computers based applications to

operate there store effectively. Listed below are the technologies used in retail

In-store telecommunications pocket phones are used to enable staffs to

communicate with each other

Computerized inventory control to analyze inventory levels quickly, place

replenishment requests

Computerized check out, where cashiers ring up sales or pass items over

optical scanners to register the sale. Some electronic point of sale system also

provides the reports inventory data etc.

# Maintain Records:

Store opening and closing processes

Daily book keeping

Stock control processes

Inventory management

Store opening and closing processes:

The retailer must define a documented process for opening and closing the

store. For e.g. While closing the store a process should be specified for putting

off all equipments/computers/lights/AC/generator, safely storing valuable

merchandise, safely keeping keys/activating security alarm systems, etc. and

for shutting the exit and entry points.

Daily Book Keeping:

Tallying and counting end-of-day cash (all types of tenders separately)

Entering cashier till counts and compare with the till status reports to find

out excess or shortages of cash

Preparing reports on voids, refunds, charges, etc.

Ensuring cash is safely deposited in bank/safe

Closing the cash till and store systems

Stock control Procedures:

A retailer may have the following stock control procedures at a store level:

Taking stock/inventory count

Reviewing a purchase order

Ordering goods/replenishments

Receiving an invoice

Receiving goods and making an entry into inventory

Analyzing inventory reports

Inventory Management:

The following operational factors in inventory management at a store level

are important to a retailer:

Coordination and handling the merchandise received from different

suppliers

Comparing ideal level of inventory on the selling floor with

warehouse/store area

Number of times the inventory should be moved from the non-selling to

selling areas of the store (replenishments) and from the ware house to the

store.

Process by which the merchandise stock can be organized efficiently and

accurately on regular/annual basis without inconveniencing customers

Inventory functions such as annual or continual stock take i.e. counting of

stock during non-selling times Organizing customer delivery with care or

proper timings

# Core Skills (listening and speaking) required in a retail sector worker:

Importance of active listening

How can be an active listener

Speaking skills

Listening is one of the most important skills you can have. How well you

listen has a major impact on your job effectiveness, and on the quality of your

relationships with others.

Listen to obtain information.

Listen to understand.

Listen for enjoyment.

Listen to learn.

Given all this listening we do; you would think we'd be good at it! Clearly,

listening is a skill that we can all benefit from improving. By becoming a

better listener, you will improve your productivity, as well as your ability to

influence, persuade and negotiate. What's more, you'll avoid conflict and

misunderstandings. All of these are necessary for workplace success!

About Active Listening:

The way to become a better listener is to practice "active listening." This is

where you make a conscious effort to hear not only the words that another

person is saying but, more importantly, try to understand the complete

message being sent. There are five key elements of active listening. They all

help you ensure that you hear the other person, and that the other person

knows you are hearing what they say.

1. Pay Attention

Give the speaker your undivided attention, and acknowledge the message.

Recognize that non-verbal communication also "speaks" loudly.

Look at the speaker directly.

Put aside distracting thoughts.

Don't mentally prepare a rebuttal!

Avoid being distracted by environmental factors. For example, side

conversations.

"Listen" to the speaker's body language.

2. Show That You're Listening

Use your own body language and gestures to convey your attention.

Nod occasionally.

Smile and use other facial expressions.

Note your posture and make sure it is open and inviting.

Encourage the speaker to continue with small verbal comments like yes,

and uh huh.

3. Provide Feedback

Our personal filters, assumptions, judgments, and beliefs can distort what we

hear. As a listener, your role is to understand what is being said. This may

require you to reflect what is being said and ask questions.

Reflect what has been said by paraphrasing. "What I'm hearing is," and

"Sounds like you are saying," are great ways to reflect back.

Ask questions to clarify certain points. "What do you mean when you say."

"Is this what you mean?"

Summarize the speaker's comments periodically.

Allow the speaker to finish each point before asking questions.

Don't interrupt with counter arguments.

4. Respond Appropriately

Active listening is a model for respect and understanding. You are gaining

information and perspective. You add nothing by attacking the speaker or

otherwise putting him or her down.

Be candid, open, and honest in your response.

Assert your opinions respectfully.

Treat the other person in a way that you think he or she would want to be

treated.

It takes a lot of concentration and determination to be an active listener. Old

habits are hard to break, and if your listening habits are as bad as many

people's are, then there's a lot of habit-breaking to do!

Speaking Skills:

The activities involved while communicating with customer

Approaching and greeting

Recommending products

Describing merchandise

Responding customer queries

Handling customer objections

Handling queries while closing sale

# Professional Skills:

What are professional skills?

What is the importance of professional skills?

Decision making regarding the responsibilities of the job role

Plan and organize

Customers centricity

Problem solving

Professional Skills at every organization are the foundation for success. They

are the skills that graduates need so as to succeed in professional practice and

range from the highly specific ones that are related to the graduate’s field.

Professional skills are needed for growth in once profession. By this skills one

can, get a good position in organization.

Decision making On the job individuals needs to be able to make appropriate

decision regarding the responsibilities of the job role. One should understand

the needs of job and make right decision to get a good position in

organization.

Plan and Organize Customers sales associates should be able to plan and

schedule routines. He should know how he can manage his responsibilities in

store. Individuals need to be regular and punctual about his daily work at

workplace.

Customer’s centricity Customer centricity is a term frequently used in

marketing is a measure of how products and services supplied by a company

meet or surpass customer expectation. Customer satisfaction is defined as ‘the

number of customer, or percentage of total customers, whose reported

experience with a form, its products, or its services (ratings) exceeds specified

satisfaction goals.

Solving Customers Problems, A Customer complaint offers the best chance

to convert an unhappy customer into a loyal customer. Complaints are a

golden chance to strengthen a business. Solving customer’s problem is a key

to success. The three important steps involved in solving customer’s problems

are:

Focusing on the problem, prioritizing the problems and solving the most

urgent and critical one’s first

Developing a plan of action for solving the problem

Using the required resources to solve it.

# Crisis Management:

Deal with accidents and emergencies

Help to reduce risks to health and safety

Despite having the best strategies, retailers may sometimes face crisis

situations that need to be managed smoothly. Retailers often have detailed

plans and their staff to handle emergency situations such as:

Fire

Car accidents in parking lot

Store robbery or hold up

Extremely bad weather or natural disasters like earthquake, floods.

Sudden server illness of employee or customer

How to minimize effects of crisis by anticipation:

Contingency plans for all kinds of crisis: store policies should specify how

to handle the crisis and train the employees (e.g. in case of fire, employees

must know how to put out fire, evacuate customers if necessary, retrieve

goods, call fire fighting authorities, etc.)

Insurance

Backup generators in anticipation of power failures

A system to communicate essential information during a crisis

Cooperation during a crisis

Chain of command for decision to be made clear and specifying who has

the authority during a crisis.

# Customer Service

Define service and characteristics of service

Describe the service quality dimensions

Identify the types of services provided to the customer and their needs

Describe how to deliver excellent customer service

Define Service We have heard the popular adage, “Customer is the King”.

Every business needs to follow this fundamental principle to ensure quality

customer services. In our service economy the goal of each organization

should not be to give the customers greater satisfaction by responding to

customer needs and providing services to meet their expectations.

Definition- Customer Service Customer service is an organization’s ability to

constantly and consistently give the customers what they want and need. This

involves understanding customer requirements and giving a proper solution

accordingly. Thus, customer service is:

Putting people behind products and services

Treating customers with respect, individuality and personal attention to

understand why people are put behind products and services let us take an

example of a shopping mall, where the garments are displayed, without any

price tags and assistance is provided.

Respect The best way of showing respect is by making the customers feel

special. From the moment they enter the store to the time they leave, they

should be treated warmly, generously and hospitably, irrespective of whether

the make a purchase or not.

The customer should be made to feel important, this could be achieved

through a combination of basic gestures and personal greetings like, ‘good

morning’, ‘how may I help you?’ with genuine smile when they enter and

‘thank you’ in acknowledgement of them, ‘stopping by’ when they leave.

Individuality A couple arrived at a hospital. The wife was in labor. The

husband, a heart patient, had an attack due to over-excitement. Since the

husband wanted to be with his wife during the delivery, the cardiologist

personally pushed the husband’s bed from the coronary care department to the

wife’s room. However, the bed was too large to go through the doorway. The

cardiologist, then, sat in the hallway with the husband till 3.00 a.m.., so that he

could talk to his wife, be with her, provide support, courage and emotional

assistance till she was taken to the delivery room. Thus, we see that the doctor

respected the husband’s individuality and adjusted according to the situation.

Personal Attention the Ritz Carlton Group of Hotels complies customer

information through observations made by the hotel staff in the course of their

normal duties. Every staff member carries a guest preference pad to record

notes. This enhances customer service. For example, when a housekeeper

enters a room and notices a tennis racket, shoes and magazines, he/she makes

a note of the guest’s likings as, ‘Mr. Samuel in Room 220 seems to enjoy

tennis’. This information is given to the appropriate staff members to contact

the guest with available timings of the tennis court and other related services.

# Retail Selling Process:

Start of Sale

Describe the aspects to be taken care of before starting a sale

Introduction: The Activity of selling is known as sale, and it forms an

essential part of any business. A salesperson needs to undertake the following

activities while selling goods and services to a customer:

Contact the possible customers

Present and demonstrate the products

Take orders from customers

Deliver the products

Collect the payments

Preparations for a sale The activity of putting or setting things in order in

advance of some act or purpose is known as preparation. With reference to

sale, preparation specifically refers to a salesperson. Before starting sale every

salesperson should:

Check his/her appearance

Know the store

Know the inventory

Know the products

Know the schemes

Know the competitor

Know the trends

Know the customer

Give personal attention towards his/her section

A salesperson should follow the following guidelines so as to look

presentable:

Wear a dress that is clean, well ironed and unfolded.

This would make him/her look smart.

Should not wear torn clothes or a dress with threads hanging

Smile and look bright, cheerful and enthusiastic

Wear moderate and fashionable jewelry and accessories such as belts

Wear well polished and unbroken shoes

Should have well-cut hair that is neatly combed and tied up (in case of long

hair)

Wear light make-up (for women)

Should be well shaven or trim his beard (for men)

Should have personal hygiene and use a light deodorant/perfume

Know the Store

The Salesperson should give such impression that their customers walk away

with the idea that ‘Looks are deceptive.’ So, along with having a good

appearance, it is important for the salesperson to possess a thorough

knowledge of the store. The salesperson should have knowledge of the

following:

Store’s mission, vision, values and all the categories of the product.

Levels/floors and the stock in each level

Store policies, regulations and services provided to the customers

Store layout

Product locations

Range of products kept in the store

Supervisor and the section in-charge

Know the Inventory

Keeping track of the detailed list of items in the stock is important to ensure

that all the items which are out of stock and are in demand are properly

indented. The salesperson needs to keep track of the following:

Current inventory stocked in the store

Present day’s position of sale

Inventory stocked in the distribution centre

Inventory in the back stock

Arrival of new stock

Order to delivery cycle (when to inform customer to visit for out-of-stock

items)

New merchandise that is anticipated

Know the product

The salesperson should possess complete knowledge about any product which

includes the following:

What the product is, what it does and how it fulfils the customer’s needs

and expectations

The range, colors’, sizes, and prices of the stocked products

The brand of each product

The schemes of both the store and the brand

Related products and accessories so that add-ons can be suggested

# Customer Buying Behavior:

Describe various factors that influence customers during shopping

Explain the various steps involved in the consumer decision making process

Describe the various types of decision making processes

Explain how the retailer can induce the customer to make impulse

purchases

Explain the importance of customer loyalty

State the changes in the shopping behavior of consumers in the past decade

Factors Influencing Customers

How consumers purchase products provides terrific direction for a retailer. It

helps the retailer to decide as to which categories of products to stock, how to

place, price and promote those categories. The components of buying behavior

provide a simple yet extremely powerful formula for driving sales successes

down to the category, brand and item level. Knowing your customer also

means you can choose the right level of service, ambience and facilities to suit

the customer.

# Job description of a sales person:

List the principal accountability of a retail salesperson

Describe the functions of a retail salesperson

Functions of a Salesperson

1. Make a consultative sale

2. Ability to up sell

3. Understand customer’s behavior

4. Independent stock-taking

5. Store décor

6. Anticipate security risks and reduce theft

7. Product knowledge

8. Knowledge of store procedures and policies

9. Register order information

10. Service orientation

11. Develop and retain loyal customers

12. Relationship with colleagues

13. Neat work area

14. Grooming and personality

15. Cooperativeness towards discipline/commitment

16. Handle customers and payments

Make a Consultative Sale

The activities involved while making a consultative sale include:

Approaching and greeting

Recommending products

Describing merchandise

Responding customer queries

Handling customer objections

Handling queries while closing sale

Packaging Purchased products

# Importance of Retail image:

Explain the importance of retail image

List and explain the components of retail image

Retail image can be described as the overall look of a store and the series of

mental pictures and feelings that it evokes in the minds of the customers.

Retail image is the foundation of all retailing efforts. For the customer,

developing a powerful image provides the opportunity to embody a single

message, stand out from the competition and be remembered. The retail image

refers to how a retailer is perceived by the customers and others. To attract

maximum customers, the retailer must have a strategy or plan to project the

image which is based on two aspects:

1) Category to which it belongs and

2) Its competitors

Hence, they must have a clear and consistent image.

Factors contributing to retail images:

Following are the factors contributing to the retail Images conveyed to the

customers by observations:

The retailer’s name and store sign

Advertising and news articles

Treatment by salesperson

Signage

Store façade

Cash memos and catalogues

Store displays and visual merchandising

The shopping environment and other shoppers

The store layout, presentation, signage, displays and events can change to

reflect originality and excitement. Let us now see how customer service helps

in building a retail image.

The tangible and intangible activities undertaken by the retailer in conjunction

with its merchandise and services that it sells is the service. A few factors that

make up service are:

Store Working hours

Parking Access

Credit acceptance

Caliber of salespeople

Store facilities

Delivery policies

Time spent on checkout

An overview on Retail Revolution in India

Retail in India is on a cusp of transformation. Organized retailing as a

professional service-oriented set-up, is a recent phenomenon in India but is

growing at a tremendous pace with a potential of creating over 2 million new

(direct) jobs within the next six years, assuming an 8 to 10 per cent share of

organized retailing in the total retail business.

The fast changing retail environment demands that professionals learn new

skills, improve their efficiency, learn to compete and think out of the box. As

retailers work directly with customers and there is need for good managerial

talent to interpret and satisfy the needs and desires of customers. All this

requires an education that is intensive, comprehensive and closely linked to

the retail business world. The need is to have a program which has all the

inherent features of a business management program and includes experiential

learning throughout the program.

  Market Trends, Challenges & Opportunities

1. Across BRIC countries, the food and grocery (F&G) segment is clearly

driving retail growth. For e.g., retail food sales dominate the total retail

market in Brazil, accounting for almost 54 percent of the total retail

sales, while Russia is the fastest growing retail food sales market in the

world, with the potential to again double in size by 2008.

2. The prevalence of English as a language of communication to a very

great extent facilitates material sourcing and business communication.

While India and Russia pose no problems in this regard, Brazil and

China present communication problems for foreign companies.

3. The importance of governments that are quick on decision-making and

passing liberal trade laws cannot be emphasized enough. In China, for

instance, being a non-democratic country makes it easier for foreign

investors to do business sans bureaucratic red-tapism (in comparison to

a democratic country like India), the obvious reason being that the

political establishment is not directly accountable to the people.

4. Growing urbanization and metropolitan saturation is leading to the

expansion of retail formats and investment opportunities towards tier-II

cities and rural hubs across all four countries.

5. Continued economic reforms together with the growth of organized

retail (especially in the F&G segment) have led to growing rural

incomes, triggering off far-reaching, social impacts. The upcoming

‘Golden Quadrilateral' plan for roadways in India, which is to connect

the four cities of Delhi, Kolkata, Mumbai and Chennai, will have

massive economic and social repercussions on rural and semi-rural

clusters along the vast network. In China too, the government plans to

create a rural retail network covering 70 percent of all villages by

2008.

Store Location and Geographic Coverage:

A good location may let a retailer succeed even if the strategy used is

mediocre. The choice of a location requires extensive decision making skill

due to the number of criteria considered. The criteria can be listed as follows:

Population size and traits

The competition

Transport access

Parking availability

The nature of nearby stores

Nearness of thee suppliers

India has kept the retail sector largely closed to outsiders to safeguard the

livelihood of nearly 15 million small storeowners and only allows 51 per cent

foreign investment in single brand retail with prior Government permission.

FDI is also allowed in the wholesale business. Single-brand retailers such as

Louis Vuitton, Fendi, LLadro, Nike and Toyota can operate now on their own.

Metro is already operating through the cash-and-carry wholesale mode.

The policy makers continue to explore areas where FDI can be invited without

hurting the interest of local retail community. Government is considering

opening up of the retail trading for select sectors such as electronic goods,

stationery, sports goods, and building equipment. Foreign direct investment

(FDI) in retail space, specialized goods retailing like sports goods, electronics

and stationery is also being contemplated. The Government has to walk a

tightrope to ensure a `level playing field' for everyone.

The policy of permitting 51 per cent FDI in single-brand product retailing has

led to the entry of only a few global brands such as Nike (footwear), Louis

Vuitton (shoes, travel accessories, watches, ties, textiles ready-to wear),

Lladro (porcelain goods), Fendi (luxury products), Damro (knock-down

furniture), Argenterie Greggio (silverware, cutlery, traditional home

accessories and gift items) and Toyota (retail trading of cars), into retail

trading. A 12-billion-euro French luxury industry is also eyeing the domestic

luxury segment to make a presence through retailing directly.

Food and grocery retail

The food business in India is largely unorganized adding up to barely Rs.400

billion, with other large players adding another 50 per cent to that. The All

India food consumption is close to Rs. 9,000 billion, with the total urban

consumption being around Rs. 3,300 billion.

This means that aggregate revenues of large food players are currently only 5

per cent of the total Indian market, and around 15-20 per cent of total urban

food consumption. Most food is sold in the local ‘wet’ market, vendors,

roadside push cart sellers or tiny kirana stores. According to McKinsey report,

the share of an Indian household's spending on food is one of the highest in the

world, with 48 per cent of income being spent on food and beverages.

Apparel retail:

The ready-mades and western outfits are growing at 40-45 per cent annually,

as the market teams up with international brands and new entrants entering

this segment creating an Rs.5 billion market for the premium grooming

segment. The past few years has seen the sector aligning itself with global

trends with retailing companies like Shoppers’ stop and Crossroads entering

the fray to entice the middle class. However, it is estimated that this segment

would grow to Rs. 3 billion in the next three years.

Gems and Jewelry retail:

The gems and jewelry market is the key emerging area, accounting for a high

proportion of retail spends. India is the largest consumer of gold in the world

with an estimated annual consumption of 1000 tones, considering actual

imports and recycled gold. The market for jewelry is estimated as upwards of

Rs. 650 billion.

Music Retail

The size of the Indian music industry, as per this Images-KSA Study, is

estimated at Rs.11 billion of which about 36 percent is consumed by the

pirated market and organized music retailing constitutes about 14 percent,

equivalent to Rs.1.5 billion.

Book retail:

The book industry is estimated at over Rs. 30 billion out of which organized

retail accounts for only 7 per cent (at Rs.2.10 billion). This segment is seen to

be emerging with text and curriculum books accounting to about 50 per cent

of the total sales. The gifting habit in India is catching on fast with books

enjoying a significant share, thus expecting this sector to grow by 15 per cent

annually.

Consumer durables retail:

The consumer durables market can be stratified into consumer electronics

comprising of TV sets, audio systems, VCD players and others; and

appliances like washing machines, microwave ovens, air conditioners (A/Cs).

The existing size of this sector stands at an estimated US$ 4.5 Billion with

organized retailing being at 5 per cent.

Retailing Formats:

Modern retailing has entered India in form of sprawling malls and huge

complexes offering shopping, entertainment, leisure to the consumer as the

retailers experiment with a variety of formats, from discount stores to

supermarkets to hypermarkets to specialty chains.

Corporate Catalyst India A report on Indian Retail Industry However, kiranas

still continue to score over modern formats primarily due to the convenience

factor. The organized segment typically comprises of a large number of

retailers, greater enforcement of taxation mechanisms and better labor law

monitoring system. It's no longer about just stocking and selling but about

efficient supply chain management, developing vendor relationship quality

customer service, efficient merchandising and timely promotional campaigns.

The modern retail formats are encouraging development of well-established

and efficient supply chains in each segment ensuring efficient movement of

goods from farms to kitchens, which will result in huge savings for the farmers

as well as for the nation.

The Government also stands to gain through more efficient collection of tax

revenues. Along with the modern retail formats, the non-store retailing

channels are also witnessing action with HLL initiating Sangam Direct, a

direct to home service. Network marketing has been growing quite fast and

has a few large players today. Gas stations are seeing action in the form of

convenience stores, ATMs, food courts and pharmacies appearing in many

outlets.

Functions of retailing:

Retailers play a significant role as a conduit between manufacturers,

wholesalers, suppliers, and consumers. In this context, they perform various

functions like storing, breaking bulk, holding stock, as a channel of

communication, storage, advertising, and certain additional services.

Storing:

Manufacturers usually make one or a variety of products and would like

to sell their inventory to a few buyers to reduce costs. Final consumers, in

contrast, prefer a large variety of goods and services to choose from and

usually buy them in small quantities. Retailers are able to balance the demands

of both sides, by collecting an assortment of goods from different sources,

buying them in sufficiently large quantities, and selling them to consumers in

small units.

The above process is referred to as the storing process. Through this

process, retailers undertake activities and perform functions that add to the

value of the products and services sold to the consumer. Supermarkets in the

US offer, on an average, 15,000 different items from 500 companies.

Customers are able to choose from a wide range of designs, sizes, and brands

from one location. If each manufacturer had a separate store for its own

products, customers would have to visit several stores to complete their

shopping. While all the retailers offer an assortment, they specialize in types

of assortment offered and the market to which the offering is made. Westside

provides clothing and accessories, while a chain like nil irises specializes in

food and bakery items. Shoppers stop targets the elite urban class, while

pantaloons are targeted at the middle class.

Breaking bulk:

Breaking bulk is another function performed by retailing. The word

retailing is derived from the French word retailer, meaning to cut a piece of.

To reduce transportation costs, manufacturers and wholesalers typically ship

range cartons of the products, which are then tailored by the retailers into

smaller quantities to meet individual’s consumptions needs.

Holding stock:

Retailers also offer the service of holding stock for the manufacturers.

Retailers maintain an inventory that allows for instant availability of the

products to the consumers. It helps to keep prices stable and enables the

manufacturer to regulate production. Consumers can keep a small stock of

products at home as they know that this can be replenished by their retailer

and can save on inventory carrying costs.

Additional Services:

Retailers ease the change in ownership of merchandise by providing

services that make it convenient to buy and use products. Providing products

guarantees, after-sales services and dealing with consumer complaints are

some of the services that add value to the actual product at the retailer’s end.

Retailers also offer credit and hire- purchase facilities to the customers to

enable them to buy a product now and pay for it later. Retailers fill orders,

promptly process, deliver and install products. Salespeople are also employed

by retailers to answer queries and provide additional information about the

displayed products.

Retailing Formats:

Modern retailing has entered India in form of sprawling malls and huge

complexes offering shopping, entertainment, leisure to the consumer as the

retailers experiment with a variety of formats, from discount stores to

supermarkets to hypermarkets to specialty chains.

Corporate Catalyst India A report on Indian Retail Industry However, kiranas

still continue to score over modern formats primarily due to the convenience

factor. The organized segment typically comprises of a large number of

retailers, greater enforcement of taxation mechanisms and better labor law

monitoring system. It's no longer about just stocking and selling but about

efficient supply chain management, developing vendor relationship quality

customer service, efficient merchandising and timely promotional campaigns.

The modern retail formats are encouraging development of well-established

and efficient supply chains in each segment ensuring efficient movement of

goods from farms to kitchens, which will result in huge savings for the farmers

as well as for the nation.

The Government also stands to gain through more efficient collection of tax

revenues. Along with the modern retail formats, the non-store retailing

channels are also witnessing action with HLL initiating Sangam Direct, a

direct to home service. Network marketing has been growing quite fast and

has a few large players today. Gas stations are seeing action in the form of

convenience stores, ATMs, food courts and pharmacies appearing in many

outlets.

In the coming years it can be said that the hypermarket route will emerge as

the most preferred format for international retailers stepping into the country.

At present, there are 50 hypermarkets operated by four to five large retailers

spread across 67 cities catering to a population of half-a-million or more.

Estimates indicate that this sector will have the potential to absorb many more

hypermarkets in the next four to five years. Corporate Catalyst India A report

on Indian Retail Industry List of retailers that have come with new formats

Retailer Current Format New Formats, Experimenting with Shopper’s Stop

Department Store Quasi-mall Ebony Department Store Quasi-mall, smaller

outlets, adding food retail Crossword Large bookstore Corner shops Pyramids

Department Store Quasi-mall, food retail Pantaloon Own brand store

Hypermarket Subhiksha Supermarket Considering moving to self-service

Vitan Supermarket Suburban discount store Food world Food supermarket

Hypermarket, Food world express Globus Department Store Small fashion

stores Bombay Bazaar Aggregation of Kiranas food mart Aggregation of

KiranasMetro Cash and Carry S Kumar’s Discount Store Traditionally, the

small store (kirana) retailing has been one of the easiest ways to generate self-

employment, as it requires minimum investments in terms of land, labor and

capital.

These stores are not affected by the modern retailing as it is still considered

very convenient to shop. In order to keep pace with the modern formats,

kiranas have now started providing more value-added services like stocking

ready to cook vegetables and other fresh produce. They also provide services

like credit, phone service, home delivery etc.

The organized retailing has helped in promoting several niche categories such

as packaged fruit juices, hair creams, fabric bleaches, shower gels, depilatory

products and convenience and health foods, which are generally not found in

the local kirana stores. Looking at the vast opportunity in this sector, big

players like Reliance and K Rahejas has announced its plans to become the

country's largest modern retainers by establishing a chain of stores across all

major cities.

EASY DAY

Product Range in Easy Day stores:

Dairy Products

Grains & Pulses

Bakery products

Food and Beverages

Home & Personal Care

Meat and Poultry Items

Frozen - Vegetarian, Non-Vegetarian [Meat] and Chilled Non-Vegetarian

All the three stores are single floor stores with cash counter and bakery section

at the entrance. Each category of the product was marked separately. Products

were effectively displayed with price tags.

In Easy Day stores we found that Home & Personal Care [Toothpaste, Soap,

etc] and Food & Beverages [Pepsi, Fruit Juice and Cereals] are sold at a

discount between 1-5% only.

Great Value Private Label Brand:

The company has introduced its own private label under the brand name Great

Value. Most items are in the grains and pulses categories. With increasing

number of retailers, discount is what most consumers look for.

Each store has 12-15 employees including a store manager without any gender

of age bias. The company has also established "Bharti Academy of Retail" in

association with Global Retail School of Chandigarh for imparting training for

the retail business.

The stores, known as 'Easy Day', would be a one-stop shop to cater to every

family's day-to-day needs, company officials said, adding that "it will bring

together a relevant and wide product range, good quality products and great-

in-experience and service-all under one roof".

Bharti Retail Ltd.

’’’Bharti Retail Ltd.’’’ is a wholly owned subsidiary of Bharti Enterprises.

Bharti Retail operates a chain of multiple format stores. The company’s

neighborhood format stores operate under the "Easy day" brand and the

compact hypermarket format under the “Easy day market” brand. Recently the

company has become more involved in the food economic sectors, with a joint

partnership in the agricultural company Field Fresh.

Bharti Retail Pvt, Ltd. operates retail stores. It offers food and grocery

categories, fresh fruits and vegetables, meat and poultry, dairy products,

staples, FMCG and processed foods, electronics and appliances, clothing and

footwear, furniture and furnishing, and other household articles. The company

was incorporated in 2007 and is based in India. It has stores in Punjab,

Rajasthan, Haryana, and Uttar Pradesh, as well as in Delhi. Bharti Retail Pvt,

Ltd. operates as a subsidiary of Bharti Enterprises Limited.

Bharti Retail Pvt Ltd. announced that the company will soon enter western

India with its first hypermarket in Mumbai. The company has signed a 60,000

soft store in the Neptune Magnet mall of the city's Bhandup area and this is

expected to open in the first quarter of 2011.

After Mumbai, the company plans to open 20 more stores in cities such as

Mumbai, Pune and Nanded. The company is also planning to set up a mother

distribution center on the Mumbai-Pune highway.

The company also planned to open stores in the south and signed half a dozen

stores in the region.

Bharti Enterprises tied-up with Wal-Mart for opening a chain of retail stores

all over India. Though the retail chain store venture is yet to see the light, the

two companies, in August 2007, made a surprise statement that they have

signed a wholesale cash-and-carry deal. The companies would open 10 - 15

cash-and-carry facilities over 7 years and would employ 5,000 people. Each

store would occupy 50,000-100,000 square feet.

The other retail companies of Bharti group are Bharti Retail (Holdings)

Private Limited, Bharti Retail Resources Private Limited and Cedar Support

Services Ltd.

The format has been branded `Easy Day’ as first reported. The stores range

between 2,500 to 4,500 square feet. With the Easy Day stores, Bharti now

joins the ranks of other Indian conglomerates like Reliance Retail and Aditya

Birla Group, which have launched chains of their retail stores across the

country.

Wal-Mart Inc has tied up with Bharti Enterprises for entering the Indian

market. Wal-Mart has entered into a technical agreement with Bharti for its

retail stores, where it provides assistance and technical know-how to Bharti on

how to operate and manage retail stores. Mike Duke, vice-chairman, Wal-Mart

Inc, had already... hinted that the retail store would not sport the Wal-Mart tag.

He said that nearly three fourths of Wal-Mart international’s retail operations

are under 52 different local brands, since the company wants to be seen as a

local retailer in any area operates rather than a retail behemoth.

Wal-Mart Stores, Inc. (branded as Wal-Mart) is an American public

corporation that runs a chain of large, discount department stores. It is the

world's largest public corporation by revenue, according to the 2008 Fortune

Global 500. 

The company was founded by, Sam Walton, who opened the first Wal-Mart

discount store in Rogers Arkansas back in 1962, and 47 years later, Wal-Mart

operates 8,159 units in 15 countries.

Incorporated on October 31, 1969, and listed on the New York Stock

Exchange in 1972, Wal-Mart is the largest private employer which employs

over 2.1 million people worldwide.

Wal-Mart operates in Mexico as Walmex, in the United Kingdom as Asda, in

Japan as Seiyu, and in India as Best Price.

Wal-Mart is currently the world’s largest retailer with a total annual sale of

405,607 million (2009). Even in the midst of a recession it’s estimated that

Wal-Mart stores’ retail market share has risen markedly and they were seeing

sales gains for 2009.

As Wal Mart emerged as the world’s largest retailer in a short span of time,

critics are worried about its impact on local communities, particularly on

“mom and pop shops” for their survival. There have been several studies on

the economic impact of Wal-Mart on small towns and local businesses, jobs,

and taxpayers.

Products of wal mart:

Discount stores:

Sam Walton opened his first Wal-Mart discount store in 1962. Today, there

are 810 stores offering a pleasant and convenient shopping experience across

the United States. The size of an average store is 107,000 square feet. Each

store employs about 225 associates.

Stores feature wide, clean, brightly-lit aisles and shelves stocked with a variety

of quality, value-priced general merchandise, including family apparel,

Automotive products, Health and beauty aids, Home furnishings, Electronics,

Hardware, Toys, Sporting goods, Lawn and garden items, Pet supplies,

Jewelry, House wares.

Supercenters:

Supercenters were developed in 1988 to meet the growing demand for

convenient, one-stop family shopping featuring our famous Every Day Low

Prices. It saves time and money by combining a full grocery and our general

merchandise under one roof. There are 2,737 Supercenters nationwide, and

most are open 24 hours in US. Supercenters average 187,000 square feet and

employ about 350 or more associates.

Supercenter groceries features include bakery goods, daily foods, meat and

dairy products, frozen foods, fresh produced, Canned and packaged goods, dry

goods and staples, condiments and spices beverages, household supplies etc.

Neighborhood markets:

Neighborhood Markets offer a quick and convenient shopping experience for

customers who need groceries, pharmaceuticals, and general merchandise all

at our famous Every Day Low Prices. First opened in 1998, there are now 151

Neighborhood Markets, each employing about 95associates. A typical store is

about 42,000 square feet. Neighborhood Markets feature a wide variety of

products like health and beauty aids, pet supplies, stationery and paper goods,

household supplies etc.

Supermercado de Wal-Mart:

Wal-Mart opened "Supermercado de Wal-Mart" locations to appeal to

Hispanic communities in the United States.

Sam's Club:

Sam's Club is a chain of warehouse clubs which sell grocery and general

merchandise in large quantities. Sam's Club stores are "membership" stores

and most customers buy annual memberships. However, non-members can

make purchases either by buying a one-day membership or paying a surcharge

based on the price of the purchase. Some locations also sell gasoline. The first

Sam's Club opened in 1983 in Midwest City, Oklahoma under the name

"Sam's Wholesale Club".

Business models for entry in Indian markets

Due to the FDI restrictions the international players are looking for alternative

avenues to enter the Indian markets. However, FDI restrictions in retailing

have not deterred prominent international players from setting up shops in

India.

In recent developments, the Australian retail giant Woolworth Ltd made in

innovative entry in India’s retail space, with India’s Tata group.

The Tata group has floated Infiniti Retail Ltd, in venture with which will sell

consumer goods and electronics across the country. Infiniti Retail will be a

100 per cent subsidiary of Tata Sons and will receive an initial equity infusion

of Rs 4 billion. This Tata retail venture joined hands with Australian retail

giant Woolworths Ltd, which currently operates more than 2,000 stores in 12

different formats. While Infiniti will own and run retail operations in India,

Woolworths, which has attained notable success in selling electronics and

consumer goods through its Dick Smith Electronics chain, will provide

technical support and strategic sourcing facilities from its global network.

At present entry into India’s retail sector can be done through three different

routes. The chart below shows the current formats permitted by the

Government of India for the International players. Current entry options for

foreign players Franchise agreements

•Most widely used entry route by multinational retailers

Fast food retailer Domino’s entered India through master franchise

root while Pizza Hut entered through regional franchisee Cash and

Carry wholesale trading

100% FDI is allowed in wholesale trading which involves building of a

large distribution infrastructure to assist local manufacturers

The wholesaler deals only with smaller retailers and not consumers

Metro AG of Germany was the first significant global player to enter

India through this route Strategic licensing agreements

Foreign company enters into a licensing agreement with a domestic

retailer

Mango, the Spanish apparel brand has entered India through this route

with an agreement with Pyramids, Mumbai

SPAR entered into a similar agreement with g Food Lands Pvt. Ltd

Corporate Catalyst India A report on Indian Retail Industry

INTRODUCTION TO THE

ORGANIZATIONS

PROFILE OF THE COMPANY

NATIONAL HANDLOOM

National handloom is providing quality services to customers since 1979. Its

branches are in Jodhpur, Jaipur, Barmer, & Ahmedabad. It provides the

facility of home delivery and online shopping. It is a traditional store.

Traditionally the retail business is run by having Shop in the front & house at

the back. More than 99% retailers function in less than 500Sq.Ft of area. All

the merchandise was purchased as per the test & vim and fancies of the

proprietor also the pricing was done on ad hock basis or by seeing at the face

of customer. Generally, the accounts of trading & home are not maintained

separately.

Profits were accumulated in slow moving & non-moving stocks which were to

become redundant or consumed in-house. Thus profits were vanished without

their knowledge. The Manufactures were to distribute goods through C&F

(Carry and Forward) agents to Distributors & Wholesalers. Retailers happen to

source the merchandise from Wholesalers & reach to end-users.  The

merchandise price used to get inflated to a great extent till it reaches from

Manufacturer to End-user. Selling prices were largely not controlled by

Manufacturers. Branding was not an issue for majority of customers. More

than 99% customers are price sensitive & not quality or Brand Sensitive at the

same time they are Brand conscious also.

Products Offered by National Handloom

HOME FURNISHING:

Drawing Room Bedroom

Door Mat Bed Sheet

Carpet Pillows

Curtains Pillow Cover

Kitchen Bathroom

Apron Bath Mats

Kitchen Napkin Towel Gift Sets

FOOD MART:

FOOD &

BEVERAGES

SPORTS & FITNESS:

INDOOR

GAMES OUTDOOR GAMES

Basket Ball Cricket Bat

T.T. Bat Football

Boxing Kit Lawn Tennis

Swimming

Costumes Tennis Racket

Water Ball Tennis Ball

Fitness Equip.

FOOTWEAR:

BOYS GIRLS

Shoes Slippers

Sandals Sandals

LADIES MENS

Shoes Shoes

Slippers Slippers

TELEMART:

Communication Mobile Accessories

Mobile Mobile Batteries

Mobile Charger

Mobile Dori

LADIES ACCESSORIES:

Upper Lower

Kurta Pants Jeans

Skirt Top Capri

Ethnic Winter Wear

Nighty Jackets

g Gs

Sharara Blazer

Salwar Suit Track Suit

MENS:

Upper Lower

Shirt Casual Jeans(MP)

Shirt Formal Cotton Trouser(MPC)

Ethnic & Sports Winter Wear

Night Suits Suit(WMC)

T-Shirts Blazer(WMB)

Dupatta Windcheater(WMW)

Sherwani Jacket

Big Bazaar

“Isse sasta aur accha kahin nahi”

Shop till you drop! Big Bazaar has democratized shopping in India and is so

much more than a hypermarket. Here, you will find over 170,000 products

under one roof that cater to every need of a family, making Big Bazaar India’s

favorite shopping destination.

Big Bazaar stepped into North Karnataka in Hubli on July 2007 with floor

space of 50,000 sq. ft. at Gokul Road, Hubli. A place well connected with Air,

Road and Rail transportation. Big Bazzar is the first retail outlet to the people

of Hubli. This is the ninth outlet in the state. This takes Big Bazaar to the next

level. At Big Bazaar, you will get the best products at the best prices this is our

guarantee. From apparel to general merchandise like plastics, home

furnishings, utensils, crockery, cutlery, sports goods, car accessories, books

and music, computer accessories and many, many more. Big Bazaar is the

destination where you get products available at prices lower than the MRP,

setting a new level of standard in price, convenience and quality.

Because of its First mover advantage, it could able to grab good market with

good customer base. If you are a fashion conscious buyer who wants great

clothes at great prices, Big Bazaar is the place to be. Leveraging on the

company’s inherent strength of fashion, Big Bazaar has created a strong value-

for-money proposition for its customers. This highlights the uniqueness of Big

Bazaar as compared to traditional hypermarkets, which principally revolve

around food, groceries and general merchandise.

Boasting of an impressive array of private labels, Big Bazaar is continually

striving to provide customers with a ‘complete’ look. So be it men’s wear,

women’s wear, kids wear, sportswear or party wear, Big Bazaar fashions has it

all!

Big Bazaar has clearly emerged as the favorite shopping destination for

millions of its consumers, across the country, it’s success is a true testament to

the emotional bonding it has established with the Indian consumer, on account

of its value offerings, aspirational appeal and service levels. We believe Big

Bazaar is a true Pan-Indian model that can enter into most towns in India and

democratize shopping everywhere.

The project is all about to determine the satisfaction level of the customers

from the store environment and analyze the impact of retailing mix on the

customer satisfaction level, and to improve the store environment to increase

the sales and to attract the customers, this study helps to improve the

environment of the store to reach the customer satisfaction level and improve

the merchandising in Big Bazaar.

Big Bazaar was launched in September, 2001 with the opening of three stores

in Calcutta, Bangalore and Hyderabad in 22 days. Within a span of ten

years, there are now 148 Big Bazaar stores in 80 cities and towns across India.

Big Bazaar is not just another hypermarket. It caters to every need of your

family. Where Big Bazaar scores over other stores is its value for money

proposition for the Indian customers.

At Big Bazaar, customers can definitely get the best products at the best prices

- that's what they guarantee. With the ever increasing array of private labels, it

has opened the doors into the world of fashion and general merchandise

including home furnishings, utensils, crockery, cutlery, sports goods and much

more at prices that will surprise you. And this is just the beginning. Big Bazaar

plans to add much more to complete customers shopping experience.

Big Bazaar is designed as an agglomeration of bazaars or Indian markets with

clusters offering a wide range of merchandise including fashion and apparels,

food products, general merchandise, furniture, electronics, books, fast food

and leisure and entertainment sections.

A typical Big Bazaar is spread across around 50,000 square feet of retail

space. While the larger metropolises have Big Bazaar Family centers

measuring between 75,000 square feet and 1,60,000 square feet, Big Bazaar

Express stores in smaller towns measure around 30,000 square feet. Most of

the Big Bazaar stores are multi-level and are located in stand-alone buildings

in city centers as well as within shopping malls. These stores offer over

200,000 SKUs in a wide range of categories led primarily by fashion and food

products. Big Bazaar has initiated the process of Auto Replenishments

Systems, thus improving operational efficiencies and productivity. The

company has also rationalized nearly 250 vendors through better vendor

management in terms of potential to expand, and for inclusion and upgradation

to the online B2B platform. In FY 2008, the company opened the 100th Big

Bazaar store which marked the fastest ever expansion by a hypermarket

format.

In 2006-2007, more Indians discovered the value of shopping in Big Bazaar.

And with the launch of each store, we discovered more value in terms of

operational efficiency. Big Bazaar launched 27 new stores in 22 cities,

covering over 1.40 million square feet. As of June 2007, there were 56 Big

Bazaar stores across 43 cities. While Big Bazaar continued to expand in the

large cities, it also tapped consumption potential in smaller cities like Agra,

Allahabad, Coimbatore, Surat, Panipat, Palakkad, Kanpur and Kolhapur.

The year under review also witnessed realigning of business teams with shared

experience in category management, sourcing, front-end operations and

business planning. In addition, separate teams have been formed to look into

all aspects of new store launches and to manage mature stores. This provides

more flexibility and focus in expansion plans. The increase in SKUs in

existing categories and the introduction of new categories encouraged the

opening of larger stores or Super centers, measuring 100,000 square feet or

more. There are now 5 Big Bazaar Super Centers. Considering this scale of

expansion, technology plays a significant facilitating role. The introduction of

SAP in 2005-06 and its roll out during the year positively impacted the

business.

Food Bazaar, a supermarket format was incorporated within Big Bazaar in

2002 and is now present within every Big Bazaar as well as in independent

locations. There are now 169 Food Bazaar outlets, including those located

within Big Bazaar. Based on the company’s in-house consumer data and

research, and in cognizance with observations on customer movements and the

shopping convenience factor, Food Bazaar has initiated certain refurbishments

and layout design across all stores. The intention is to continuously change

with the times and demands of the evolving Indian consumer.

Food Bazaar also witnessed healthy expansion during the year 2006-07,

making its presence felt in nearly 26 cities and adding 40 stores during the

year under review. The total count of Food Bazaars as on 30th June 2007

stood at 86 stores. The year under review witnessed the company’s private

label program gaining significant attraction. The brands have been very

competitive vis-à-vis the established brands in quality and price terms, and

have in fact scored better than national or international players in certain

categories. The share of private labels as a percentage of total Food Bazaar

revenues has increased significantly and comprises nearly 50 merchandise

categories.

While Fresh & Pure brand entered categories like cheese slices, frozen peas,

honey, packaged drinking water and packaged tea, the Tasty Treat brand

received a very favorable response in new categories like bhujiya and wafers.

In the home care category, Care mate launched aluminum foil and baby

diapers while Clean mate launched detergent bars and scrubbers.

A new format ‘BB Wholesale Club’ was launched and 4 such stores have been

opened so far. To be managed by Food Bazaar from the ensuing financial

year, this format sells only multi-packs and bulk packs of a select range of fast

moving categories and caters to price sensitive customers and smaller retailers.

The company has also forged tie-ups with established companies like ITC,

Adanis, DCM Group, USAID and other farm groups in Maharashtra and

Madhya Pradesh to source directly from them. These alliances are expected to

drive efficiencies as well as bring better products to consumers. By the end of

FY 07-08, the total number of Food Bazaar stores was expected to be 200.

A typical Big Bazaar is spread across around 50,000 square feet of retail

space. While the larger metropolises have Big Bazaar Family centers

measuring between 75,000 square feet and 1,60,000 square feet, Big Bazaar

Express stores in smaller towns measure around 30,000 square feet. Most of

the Big Bazaar stores are multi-level and are located in stand-alone buildings

in city centers as well as within shopping malls. These stores offer over

200,000 SKUs in a wide range of categories led primarily by fashion and food

products. Big Bazaar has initiated the process of Auto Replenishments

Systems, thus improving operational efficiencies and productivity. The

company has also rationalized nearly 250 vendors through better vendor

management in terms of potential to expand, and for inclusion and upgradation

to the online B2B platform. In FY 2008, the company opened the 100th Big

Bazaar store which marked the fastest ever expansion by a hypermarket

format.

Big Bazaar is part of Future Group and is owned through a wholly owned

subsidiary of India Limited that is listed on Indian stock exchanges.

Research Methodology

1. TITLE OF THE STUDY

“Comparative study of service quality of BIG BAZAR and NATIONAL

HANDLOOM”

2. DURATION OF THE STUDY

The duration of the project completion is 15 days.

3. OBJECTIVE OF THE STUDY

The main objective of the study is to analyze the service quality of retail sector

in India with special reference to National Handloom and Big Bazaar.

1 To have an insight into the factors contributing to service sector.

2 To study service related factors amongst the Retail Sector in India.

3 To study service related factors between National Handloom and Big

Bazaar.

4. TYPE OF RESEARCH USED: Exploratory and Descriptive

TYPE OF DATA: Primary and Secondary

SOURCE OF PRIMARY DATA:

THE QUESTIONNAIRE

The data has been collected with the help of well structured closed

questionnaire. Apart from personal information the question from different

aspect related to the employee and satisfaction are included in the

questionnaire.

The primary data are those, which are collected afresh and for first time and

thus happen to be original in character.

SOURCE OF SECONDARY DATA

The secondary are those which have been collected by someone else and

which have already been passed through statistical process.

SAMPLING

Simple random sampling

SAMPLE SIZE: 100(50+50)

SAMPLING UNIT: Customers at Retail Service sector at NATIONAL

HANDLOOM and BIG BAZAR, JAIPUR.

Scope of the Study: -The scope of the study will be specifically measure the

services provided by the National Handloom and Big Bazaar. The study cover

how the services quality should be given to the customer by the retail stores.

The study will study in distinguishing the services provided by them. The

study also helps in analyzing and comparing the two retail stores- Big Bazaar

and National Handloom.

Big Bazaar is being selected because of following reasons: -

* Big Bazaar store mainly attracts middle class and lower-middle class with

the discounted pricing and lucrative offers at different products.

*Big Bazaar introduces a new sales-campaign - "Sabse Sasta Din" - means

"The Cheapest Day".

*Big Bazaar comes much closer to their customers and the new ones with

exclusive products and innovative service.

* In big bazaar customers needs a product at a reasonable price.

National handloom is selected because of following reasons: -

*National handloom focuses on the traditional products.

*This retail store is oldest retail in the Jaipur till now.

*In national handloom wide variety of products is there.

Limitations of the study:

1. Time Constraint: Analysis pertaining to project title and

the field survey has to be done in a span of two months.

This may limit the scope of the survey.

2. Biasness: The respondents may give a biased view.

3. Some respondents refuse to co-operate.

4. Some respondents replied half heartedly.

5. Some respondents gave incomplete information.

Facts and finding

Store is performing well in attracting the customers

.

Most of the people who visit to the stores are of age group between 25-

45 yrs.

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

weekends

They have different variety of product in food bazaar and house hold

utensils

The main dissatisfaction for the customer is in the billing section and at

parking space.

Discounts and offers are doing well in the store.

Inside the store, employee’s interaction is very less with customers.

Location of retail shop is outstanding.

Cleanliness and hygiene maintained in the store is not up to mark.

Retail shop provides value added service like home delivery,

alteration, helpline etc. but very few customers go for it.

Electronic and print media has high reach in consumer and plays a

major role in communication about promotional scheme and offers

where as word of mouth make significant impact in decision making

than any other means of communication.

Customers don’t find brands they expect in Big Bazaar especially in

apparels section.

DATA ANALYSIS AND INTERPRETATIONS

Ages of respondents.

25-30

30-45

45-50

Above 50

AGE NO OF

RESPONDANTS

PERCENTAGE

25-30 15 15%

30-45 35 35%

45-50 35 35%

Above 50 15 15%

TOTAL 100 100%

ANALYSIS:

From the survey it was found that amongst 100 respondents.

a) 15% of the respondents are under 30 years old.

b) 35% of the respondents are between 30 and 35 years of age.

c) 35% of the respondents are between 40 and 50 years of age.

d) 15% of the respondents are more than 55 years of age.

Occupation of the Respondents

Service

Business

Student

Self Employed

OCCUPATION NO OF

RESPONDANTS

PERCENTAGE

Service 40 40%

Business 25 25%

Student 20 20%

Self Employed 15 15%

TOTAL 100 100%

ANALYSIS:

From the survey it was found that amongst 100 respondents.

a) 40% of the respondents are servicemen.

b) 25% of the respondents are businessmen.

c) 20% of the respondents are students.

d) 15% of the respondents are self-employed.

Income level of Respondents

1.5 lacs

1.5 – 3 lacs

3 – 4.5 lacs

above 4.5 lacs

Income

Level

NO OF

RESPONDANTS

PERCENTAGE

1.5 Lacs 6 6%

1.5 – 3 lacs 25 25%

3 – 4.5lacs 65 65%

above 4.5

lacs

4 4%

TOTAL 100 100%

ANALYSIS:

From the survey it was found that amongst 100 respondents:

a) 6% of the respondents have an average annual income upto1.5 lac.

b) 25% of the respondents have an average annual income from 1.5 lacs to 3

lacs

c) 65% of the respondents have an average annual income from 3 lacs to 4.5

lacs

d) 4% of the respondents have an average annual income above 5 lac.

Q.1. Have you visited both National Handloom and Big Bazar?

Response No. of Respondents

YES 70

NO 30

TOTAL 100

INTERPRETATION:

70 out of 100 respondents (70%) have visited both the big bazaar and national

handloom retail stores. So it can be interpreted that most of them were able to

compare the same aspects in both the retail stores.

Q.2. which retail stores do you prefer for shopping?

Retail Store No. of Respondents

Big Bazaar 56

National Handloom 16

Others 28

Total 100

INTERPRETATION:

56 out of 100 (56%) respondents prefer big bazaar for their shopping needs

while only 16 out of 100 (16%) were agreed to go for national handloom. Rest

28 (28%) prefer to go for other retailers like reliance, shoppers stop, more etc.

Q.3.Is the store conveniently located?

Store Convenience BIG BAZAAR NATIONAL

HANDLOOM

YES 60 20

NO 24 64

DOESN’T MATTER 16 16

TOTAL 100 100

National Handloom

Big Bazar

INTERPRETATION:

60% respondents like the location of National Handloom in Jaipur city and

24% felt it in-convenient. While Big Bazar store location was disliked by 64%

respondents yet 20% liked its location.

Q.4 which outlet is good in terms of degree of service?

Big Bazaar- National Handloom-

A. very good 40% 20%

B. good 50% 50%

C. bad 10% 30%

Degree of Service BIG BAZAAR NATIONAL

HANDLOOM

VERY GOOD 40 20

GOOD 50 50

BAD 10 30

TOTAL 100 100

BIG BAZAAR

National Handloom

INTERPRETATION:

In terms of service quality, equal percentage of respondents (50%) were agree

for both the retailers to pursue good services but 30% respondents declared

that the services of national handloom are not good.

Q.5. is it easy to enter and exit from the parking lot?

Big Bazaar- A. yes - 38% B. no- 62%

National Handloom- A. yes- 64% B. no- 36%

Parking Space YES NO

BIG BAZAAR 38 62

NATIONAL

HANDLOOM

64 36

TOTAL 100 100

BIG BAZAAR

NATIONAL HANDLOOM

INTERPRETATION:

Due to more number of arrivals, it does not seem comfortable for 62%

respondents to enter and exit the parking lot at Big Bazaar, while easy day

proven more comfortable at its parking facility.

Q.6 which retail outlet provide the bigger line and variety of the products?

Product Range No. of Respondents

BIG BAZAAR 40

NATIONAL HANDLOOM 30

NONE OF THEM 30

TOTAL 100

INTERPRETATION:

40% respondent found that maximum product varieties are available at big

bazaar while 30% respondents National Handloom as the more product line

holder.

Q.7. How do the employees behave and respond in outlet?

Employee’s

Behaviors

Very

good

Good No response Bad TOTAL

BIG BAZAAR 16 48 26 10 100

NATIONAL

HANDLOOM

24 50 14 12 100

BIG BAZAAR

NATIONAL HANDLLOM

INTERPRETATION:

Employees, normally sales personnel are found to behave on a decent manner

at both the retail stores (48% and 50% resp.), but still some customers face

problem at retail stores due to avoidance by the employees.

Q.8. What about the ambiance and store environment?

Ambiance Very

Good

Good Average Bad Total

BIG

BAZAAR

20 40 20 20 100

NATIONAL

HANDLOOM

28 46 16 10 100

BIG BAZAAR

National Handloom

INTERPRETATION:

The ambiance of easy day is more influential (46%) than the big bazaar (40%).

National Handloom day maintained the ambiance to attract more and more

customers and come in the front line among competitors.

Q.9. Please rate Big Bazaar and National Handloom from 1 to 5 rating scale?

Big Bazaar National

Handloom

After sale service 4 4

Quality of product 3 4

Reliability of prices 4 2

Attractive promotions 5 2

Easy Availability of goods 4 3

Ambience 3 3

INTERPRETATION:

Big bazaar got the advantage of customer loyalty and expertise in the field,

that’s why it’s ranking for all the aspects except quality of service is higher

than national handloom.

Q.10. overall, which retail store do you think providing the best service

quality?

Overall Service No. of Respondents

BIG BAZAAR 54

NATIONAL HANDLOOM 18

OTHER 28

TOTAL 100

INTERPRETATION:

After looking the entire factor like quality of products and services,

ambiances, customer reach, product range etc., 54% respondents declare

National Handloom as the best service quality provider.

SWOT

ANALYSIS

SWOT OF NATIONAL HANDLOOM:

Strengths

Experienced marketing team & executive staff.

Strong culture, ethics and values are followed

Emphasis on providing total customer satisfaction

Variety of stuff under single roof

Increase sales with the help of healthy competition between different

department

Maintains good employer-employee relation

Cost control initiatives that is critical in a retail operations business

Weakness: -

old style of product.

Unavailability of popular brand items with regard to clothing.

Opportunities: -

Organized Retail less penetrated in India so it acts as a great

opportunity to the organization for its growth.

Economy is developing as the employment opportunities are increasing

and the income of the people is also increasing which increases life

standards of people.

Company has more scope of expansion in two and three tier cities.

Threats: -

Competitors Strategies

Government policies.

Unorganized Retail sector

Foreign direct investment causes more problems in future because of

that many mergers and acquisition are happening in Indian retail sector

SWOT OF BIG BAZAAR:

Strengths

EDLP [ Every Day Low Pricing]

Experienced marketing team & executive staff.

Strong culture, ethics and values are followed

Emphasis on providing total customer satisfaction

Point of purchase promotion to increase the purchase

Variety of stuff under single roof

Increase sales with the help of healthy competition between different

department

Maintains good employer-employee relation

Cost control initiatives that is critical in a retail operations business

Periodical reviews of the various operations have been done on regular

basis to identify the any possible threat and address the same within

time.

Weakness: -

Unable to meet store opening targets.

Unavailability of popular brand items with regard to clothing.

Opportunities: -

Population of the country is growing where the scope of market is kept

on increasing for the retail sector.

Organized Retail less penetrated in India so it acts as a great

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 also increasing which increases life

standards of people.

Company has more scope of expansion in two and three tier cities.

Threats: -

Competitors Strategies

Advancement of technology day by day.

Government policies.

Unorganized Retail sector

Foreign direct investment causes more problems in future because of

that many mergers and acquisition are happening in Indian retail sector

Conclusion

Big Bazaar and National Handloom are both mix retail store. But after the

research done we conclude that Big Bazaar is best than National Handloom in

providing services to the customer.

Both offers a wide variety of products of different prices and different

qualities satisfying most of its customers.

Prices and offers in Big Bazaar is more reasonable than the National

handloom have been one of the main attractions and reasons for its

popularity. The price ranges and the products offered are very

satisfying to the customers.

Considering the fact that there are huge middle class families in India,

Big bazaar has had a huge impact on the middle class section of India,

the prices, variety and sales strategy has helped in getting the middle

income groups getting attracted towards Big Bazaar.

The store layout and the assortment of goods is not the best at Big

Bazaar, Customers find it hard to find what 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 the billing queues take a long time to

move, this irritates customers which makes them visit the store more

seldom.

The customer gets all kind of products in the Big Bazaar, i.e. they are

following good merchandising mix, but in some section like apparels

they have to keep different brands in order to attract more customer.

Word of mouth publicity played major role in making Big Bazaar so

popular where as media is used to communicate new offers at the store.

Customers are not aware and hence don’t avail value added services

provided by the store. Customers are more satisfied with the

merchandising present in the food bazaar and household utensils

section.

Recommendations and

Suggestions

Customers are becoming price conscious, they are having many

options in the market. Considering the consumer buying behavior the

store should take certain definite steps like retaining customers by

giving more quality service to the customers to match their

expectations.

The trend today has been to combine shopping with various offerings

for ex… apart from shopping a customer enjoys food courts, games

and many others services which competitors provide.

Shopping has made people spend not just on their requirements of

goods to be bought but to look on the totality of the experience have an

experience of quality service, enjoy the fun zone, have a nice time

listening to music, air temperature etc and finally everything should be

in such a way that “ALL UNDER ONE ROOF”

The benefits of this totality offering are that many vendors get to have

people patronized their offerings while the shopping experience i.e.’

being enhanced more business is got by the stores at the venue.

Shopping is no longer a onetime agenda for people. Various options

are opening up.

During the analysis it was found that customers become loyal to few shops or

department stores and visit them often as compared to other. Although it was

found all of them keep approximately same kinds of brands and products and

the same pleasing environment. All this in mind we need to differentiate our

store from others in the city to build up our own set of customers.

It was found that the major problem faced by the customers is the crowed at

the cash counter. The life of today’s generation has become very fast. They

don’t want to wait in a queue for a longer period. Thus retailers must provide

better service by speeding up the billing in the cash counters.

One advantage is that there is only one store in the city where as others are the

department stores. So enhance it and make it better to make it different i.e. by

having special attraction like body spa, Gym in the store. There should be a

provision for ATMs in the store too.

The following suggestion can be given to Big Bazaar and National Handloom

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 of parking specifically during rush hour.

The billing time should be reduced by increasing no. of cash counter

keeping in view customer traffic intensity.

During rush hour, can make provision of less paying counter so

customer who want to purchase single product need not to give up

because of long queue.

Store layout needs to be improved.

Proper signage should be there so that customer can locate the products

easily.

Value added services have to be improved so that most of customers

will avail those services.

Appendix

Questionnaires

Dear Sir/Mam

I am the student of UNIVERSITY OF COMMERCE COLLEGE, JAIPUR

doing my live project on the Comparative study of service quality of BIG

BAZAR and NATIONAL HANDLOOM. Please give your precious time for

filling these details.

GENDER

o MALE

o FEMALE

AGE

o ABOVE 25 AND BELOW

o BETWEEN 26 AND 35

o BETWEEN 36 AND 45

o ABOVE 45

MARITAL STATUS

o MARRIED

o UNMARRIED

OCCUPATION

o SELF EMPLOMENT

o WAGE EMPLOYMENT

o PROFESSIONAL

o STUDENT

MONTHY INCOME

o BELOW 10,000

o BETWEEN 10,000 TO 15,000

o BETWEEN 15,000 TO 20,000

o ABOVE 20,000

1. Have you visited both National Handloom and Big Bazar?

o Yes

o No

2. Which retail stores do you prefer for shopping?

o Big Bazaar

o National Handloom

o Others

3. Is the store conveniently located?

o Yes

o No

4. Which outlet is good in terms of degree of service?

o Big Bazaar

o National Handloom

o Others

5. Is it easy to enter and exit from the parking lot?

o Yes

o No

6. Which retail outlet provides the bigger line and variety of the products?

o Big Bazaar

o National Handloom

o Others

7. How do the employees behave and respond in outlet?

o Good

o Average

o Bad

8. What about the ambiance and store environment?

o Good

o Average

o Bad

9. Please rate Big Bazaar and National Handloom from 1 to 5 rating scale?

o Quality of product

o After sell services

o Reliability of prices

o Attractive promotion

o Easy availability of goods

10. Overall, which retail store do you think providing the best service quality?

o Big Bazaar

o National Handloom

o Others

Bibliography

Bibliography

Books

1. GUPTA SHASHI K., Human Resource Management, (Himalaya

Publishers)

2. Philip kotler. Marketing management (Himalaya publishers)

3. Leonard L Berry. Marketing services through Quality (Vimal

publisher)

Magazines and Newspaper

1. Business world

2. Business standards

3. Times of India

4. Hindustan times of India

5. The Business world

6. DNA

Websites

1. www.wikipedia.com

2. www.google.com