MCNP - 021 ADVERTISING AND SALES PROMOTION TECHNIQUES USED BY RETAIL BUSINESSES WITH SPECIAL REFERENCE TO BIG BAZAAR By
Raju Enrolment No: 112165967 Under Guidance Of Taruna Rawal
1
Submitted to the Everonn Global School of Business, Chennai in partial fulfillment of the requirements for the award of the degree
Master of Business Administration Administration (MBA) 2011-2013
Indira Gandhi National Open University Maidan Garhi New Delhi – 110068.
CERTIFICATE
This is to certify that the project “ADVERTISING “ADVERTISING AND SALES PROMOTION TECHNIQUES USED BY RETAIL BUSINESSES WITH SPECIAL REFERENCE TO BIG BAZAAR” is an original work of the Student and is being submitted in partial fulfillment for the award of the Master’s Degree in Business Administration Administration of Indira Gandhi National Open University. This report has not been submitted earlier either to this University or to any other
2
University/Institution University/Institution for the fulfillment of the requirement of a course of study.
SIGNATURE OF SUPER SUPE RVISOR VISO R OF STUDENT
SIGNA SIGN ATURE
Place :
Place :
Date ate: Date ate
3
:
DECLARATION
I the undersigned solemnly declare that the report of the project work entitled “ADVERTISING AND SALES PROMOTION TECHNIQUES USED BY RETAIL BUSINESSES WITH SPECIAL REFERENCE TO BIG BAZAAR” is based on my own work carried out during the course of my study under the Guidance of Mrs. Taruna Taruna Rawal I assert that the statements made and conclusions drawn are an outcome of the project work. I further declare that to the best of my knowledge and belief that the project project report does does not contain any part of any work work which has been submitted for the award of any other degree/diploma/certificate in this University or any other University.
_______________ _______________
(RAJU) Enrollment No.112165967
ACKNOWLEDGEMENT
It is my pleasure to be indebted to various people, who directly or indirectly contributed in the development of this work and who influenced my thinking, behavior and acts during the course of study. study. First of all I am thankful to BIG BAZAAR . Where I got the opportunity to undertaken the project. I am also thankful thankful to Mrs. TARUNA RAWAL for her support, cooperation and motivation provided provided to me during during the training, for constant inspiration, presence and blessings. Lastly, I would like to thank the almighty and my parents for their moral support and my friends with whom I shared my day-to-day experience and received lots of suggestions that improved my quality of work.
EXECUTIVE SUMMARY
The study of any subject is made by examining it in an organized fashion. There are three classes of variables involved in understanding consumer behavior; STIMULUS, RESP RESPO ONSE NSE
and and
INTER NTERVE VENI NING NG
var variable abless.
Stim Stimul ulus us
var variabl iables es,,
such such
as
advertisements, products exist in both the individuals’ external environment.
These generate a sensory input to consumers. Response variables are the resulting mental / or physical reactions of individuals who are influenced by stimulus variables. For e.g.:- purchasing a product or forming attitudes about it could be viewed as response variables. Many of the variables affecting consumers (such as personality, learning and perceptions are external situations, motives, and so forth) cannot be directly observed.
A ques questi tion onnai naire re was was prepa prepare red d by us in order order to cond conduct uct mark market et surv survey ey.. Th Thee questionnaire was based on different parameters to judge and understand the consumer behaviors and determine the best possible strategies which could be used to attract customers.
The research carried out in this project was descriptive in nature. The study was aimed at knowing the various eating habits hab its of a consumer.
This project helped in understanding what exactly a customer looks in an eating joint before entering it. It gave an idea about the essential factors that are required now a day for an eating joint to attract customers cu stomers in this competitive world.
We were also given a task to understand the customer eating habits, what a customer wants while eating in a restaurant what all a consumer look for and what are their expectations, how can a mall owner satisfy the needs & wants of a consumer so that the consumer may come back & the retailer can retain its consumer.
This project helps us to figure out the different consumer eating behavior & to understand the overall consumer perception of eating in a restaurant as well as their demand for mall.
The trend today has been to combine shopping with various offering. For e.g. apart from shopping there are food courts, cinema theaters & even in some an amusement centre for children.
Shopping Shopping has made people spend not just on their requirement requirement of goods to be bought but to look on the totally of experience have a quick bite at McDonalds in the mall or lets the kids play fun game while one is busy shopping or even taking the family out
for movie & having a dinner all under one roof. The benefits of this totally offering are that many vendors get to have peoples patronize their offerings, while the
Shopping experience i.e. being enhanced, more business got by the stores at the venue. Shopping is no longer a one time agenda for people. peop le. Various Various options are opening up.
CONTENT CHAPTER
PAGE NO.
Executive Summary
3
CHAPTER-1
8
S. NO.
1. 1.1
INTRODUCTION
1.2
COMPANY PROFILE
10
1.3
INDUSTRY PROFILE
21
2. 2.1 3.
9
CHAPTER-2
25
LITERATURE REVIEW CHAPTER-3
26 30
3.1 3.2
NEED OF THE STUDY OBJECTIVES OF THE STUDY CHAPTER-4
31 32 33
4.1
RESEARCH METHODOLOGY
34
4
5
CHAPTER-5
37
5.1
DATA ANALYSIS AND INTERPRETATION
38
5.2
LIMITATION OF THE STUDY
53
6
CHAPTER-6
54
6.1 6.2
CONCLUSION SUGGESTION
55 56
6. 3
REFERENCES
57
6. 4
QUESTIONNAIRE
58
CHAPTER-1
INTRODUCTION
In saying, saying, marketing marketing involves the conception, conception, pricing, promotion and distribut distribution ion of ideas, goods and services. The fundamental objective of marketing is to exchanges of goods and services (Frances Brassington and Stephen Pettitt, 2005) By designing products setting sensible, acceptable and justifiable prices, creating awareness and preferences, and ensuring availability and service, the marketer can influence the volume of exchange therefore marketing can be considered as a demand management activity on the part of the selling company.
Prom Promot otio ion n is an impor importa tant nt comp compon onent ent of mark market etin ing g mix mix whic which h has has got a very very sign signif ific ican antt impa impact ct on the the dema demand nd manag managin ing g acti activi vity ty of mark market etin ing. g. Th Thee key components of promotion includes personal selling, direct marketing, advertising, sales sales promot promotion ion,, and pub public lic relati relations ons.. Sales Sales promot promotion ion is a range range of market marketing ing techniques techniques designed designed with in a strategic strategic marketing marketing frame work to add extra value to a particular product or services, developing a promotion strategy involve deciding on the objectives of marketing communication. Promotion objectives are so vital that these objectives are the key in determining the role of each components of the promotion mix in the marketing objectives of the organisation. The role of promotion mix mix compon component entss depe depends nds on the the type type of organ organiz izat atio ion, n, natu nature re of prod product ucts, s, etc. etc. Promotion is a part of integrated marketing communication which recognizes the advantages of having a complete plan to find better ways of understanding and connecting with consumers.
COMPANY PROFILE
BIG BAZAAR
Big Bazaar is a chain of hypermarkets in India, with more than 100 stores in
operation. It is a subsidiary of Future Group Venture Ltd's, and follows the business model of United States-based Wal-Mart. Facilities offered by Big Bazaar online
shopping: Big Bazaar has an official o fficial website, FutureBazaar.com, FutureBazaar.com, which is one of the most favorite sites among people of India for online shopping. Future Bazaar is an online business venture of Future Group, which sells an assortment of products such as fashion, which includes merchandise for men and women, mobile accessories, mobile handsets and electronics like home theatres, video cameras, digital camera, LCD TVs, kitchen appliances and many more. Discounts: “Hfte ka sabse sasta din was introduced by the Big Bazaar, wherein extra and special discounts were offered on Wednesday Wednesday every week, to attract the potential buyers into their store. Security check: At each exit of Big Bazaar, they use alarm systems or Electronic Article Surveillance system, which detects the products that has attached tags or not.
1. Big Bazaar is a chain of hypermarket in India, which caters to every family’s needs and requirements. 2. Big Bazaar has released the doors for the fashion world, general merchandise like sports goods, cutlery, crockery, crockery, utensils, and home furnishings etc. at best economical prices. 3. Big Bazaar group offers more than 100 stores all over the country with an amalgamation of Indian bazaars’ feel and touch with a convenience and choice of the modern retail facilities 4. The worldwide country chain, Big Bazaar, is formed by CEO o f Future Group, Mr. Kishore Biyani. Their basic attraction associated with reasonable prices is their Unique Selling Price.
5. Big Bazaar has become a massive hit with lower middle-class and middle class people as a major client base.
6. Reflect the look and feel of Indian bazaars at their modern outlets.
GROUP VISION
“To “To deliver Everything, Everywhere, Everytime to Every Eve ry Indian Consumer in the most profitable manner.”
GROUP MISSION
1 We We share the vision and belief that our customers and stakeholders shall be served only by creating and executing future scenarios in the consumption space leading to economic development. 2 We We will be the trendsetters in evolving delivery formats, creating retail realty, making consumption affordable for all customer segments – for classes and for masses. 3 We We shall infuse Indian brands with confused and renewed ambition 4 We We shall be efficient and cost-conscious and committed to quality qu ality in whatever we do
Board of directors
1. Managing director Mr kishore Biyani
2. Wholetime Director Mr Gopikishan Biyani Mr Rakesh Biyani
3. Director
Mr Shailesh Haribhakti Mr S.Doreswamy Mr Darlie Koshy Mr Anil Harish
BIG BAZAAR SUPER CENTER Big Bazaar
Hyper mart chain in India
Outlet
140 Outlets
Parent Group
Future Group
Owner
Kishore biyani
Founded
2001
Head Quarter
Jogeshwari, Mumbai
Industry
Retail
Tagline
Is se sasta aur accha kahin nahi
Major Milestones 1 9 8 7
Company incorporated as Manz Wear Private Limited. Launch of Pantaloons trouser, India’s first formal trouser brand.
1 9 9 1
Launch of BARE, the Indian jeans brand.
1 9 9 2
Initial public offer (IPO) was made in the month of May.
1 9 9 4
The Pantaloon Pantaloon Shoppe Shoppe – exclusive exclusive menswear store in franchisee franchisee format format launched across the nation. The company starts the distribution of branded garments through multi-brand retail outlets across the nation.
1 9 9 5
John Miller – Formal Formal shirt shirt brand launched. launched.
1 9 9 7
Pantaloons – India’s family store launched in Kolkata.
2 0 0
Big Bazaar, ‘Is se sasta aur accha kahi nahin’ - India’s first hypermarket chain launched.
1 2 0 0 2
Food Bazaar, the supermarket chain is launched.
2 0 0 4
Central – ‘Shop, Eat, Celebrate In The Heart Of Our City’ - India’s first seamless mall is launched in Bangalore.
2 0 0 5
Fashion Station - the popular fashion chain is launched
2 0 0 6
aLL – ‘a little larger’ - exclusive stores for plus-size individuals is launched Future Capital Holdings, the company’s financial arm launches real estate funds Kshitij and Horizon and private equity fund Indivision. Indivision. Plans forays into insurance and consumer credit. Multiple retail formats including Collection i, Furniture Bazaar, Shoe Factory, EZone, Depot and futurebazaar.com are launched across the nation. Group enters into joint venture agreements with ETAM Group and Generali.
7P Analysis of Big Bazaar
7P Marketing Mix is more useful for services industries and knowledge intensive industries. Successful marketing depends on number of key issues. The seven keys issues are explained as: Product
Big Bazaar offers a wide range of products which range from apparels, food, farm products, furniture, child care, toys, etc. . Products of all the major brands are available at Big Bazaar .Also, there are many in house brands promoted by Big Bazaar. Big Bazaar sold over 300,000 pairs of jeans, 50,000 DVD-players and 25,000
microwave-o microwave-ovens. vens. In all, the fashion, fashion, electronics electronics and travel segments segments made up about 70% of sales. Last year, these categories made up only about 60%. Price
The tag-line is "Is se sasta aur accha aur kahin nahi" . They work on the model of economics economics of scale. There pricing pricing objective objective is to get "Maximum "Maximum Market Share". The various techniques used at Big Bazaar are: promises consumers consumers Value Pricing (EDLP - Every Day Low Pricing): Big Bazaar promises the lowest available price without coupon clipping, waiting for discount promotions, or comparison shopping. Promotional Pricing: Big Bazaar offers financing at low interest rate. The concept of
psychological discounting (Rs. 99, Rs. 49, etc.) is used as promotional tool. Big Bazaar also caters on Special Event Pricing (Close to Diwali, Gudi Padva, and Durga Pooja). Differentiated Pricing: Time pricing, i.e., difference in rate based on peak and non-
peak hours or days of shopping is also a pricing technique used in Indian retail, which is aggressively used by Big Bazaar. Bundling: Selling combo-packs and offering discount to customers. The combo-packs
add value to customer. customer.
Place Big Bazaar stores are located in 50 cities with 75 outlets.Big Bazaar has presence in
almost all the major Indian cities. They are aggressive on their e xpansion plans.
Promotion
Big Bazaar started many new and innovative cross-sell and up-sell strategies in Indian retail retail market. market. The various promotion techniques techniques used at Big Bazaar include include "saal ke sabse saste teen din" , Future Card (the card offers 3% discount), Shakti Card,
Brand Endorsement by M. S. Dhoni, Exchange Offer - ‘Junk Swap Offer', Point-ofPurchase Promotions. Adve Advert rtis isin ing g has has play played ed a cruc crucia iall role role in buil buildi ding ng of the the bran brand. d. Big Big Baza Bazaar ar advertisements are seen in print media, TV, TV, Radio (FM) and an d road-side bill-boards.
People
They are one of the key assets for any organization. The salient features of staff of Big Bazaar are: Well-trained staff, the staff employed by Big-Bazaar are well-suited for modern retail. Well-dressed staff improves the overall appearance of store. Employees are motivated to think out-of-the-box. Retail sector is in growth stage, so
staff is empowered to take innovative steps. Employs close to 10,000 people and recruits nearly 500 people every month. Use of technology like scenario planning for decision making. Multiple counters for payment, staff at store to keep baggage and security guards at
every gate, makes for a customer-friendly atmosphere.
Process
The goods' dispatch and purchasing area has certain salient features which include: Multiple counters with trolleys to carry the items purchased.
SOAP, etc.). Proper display / posters of the place like (DAL, SOAP, Home delivery counters also started at many places.
Advertising: The Essential of Brand Building Process
Advertising is an essential component of brand building. The advertisement and brand building is done through various ways, the techniques used are: Tag-line: Big Bazaar tag-lines are the key components of advertising. These tag-lines
are modified according to demographic profile of customers. These catch-phrases appeared on hoardings and newspapers in every city where Big Bazaar was launched. Everybody Everybody understood and connected connected easily easily with these simple one-liners. one-liners. The catchliners include "Hindi - Chane ke bhaw kaaju", "Bengali - Rui er dame illish", "Hindi Stall ke bhaw balcony", etc. Print Ads: Big Bazaar newspaper advertisements are present just before launch of any
new scheme. This creates aura about the Big Bazaar brand in the minds of o f customers. TV Ads: Kishore Biyani spends a lot of money in brand building exercise. Big Bazaar
commercials are shown on various channels in India. Presently, Fashion@Big Bazaar commercial is aired. bill-boardss are displayed on prime locations locations Road-side Advertisements: Big Bazaar bill-board in various cities as a brand building building exercise. exercise. They display the catch-phrase catch-phrasess now-adays. Radio Ads: This technique is used in cities like Sangli (Tier 1 / Tier 2 cities). Now-a-
days, it is replaced by advertisements on FM channels. This informs customers about all new happenings at Big Bazaar. Fashion Shows: "FASHION @ BIG BAZAAR - Desh Badla, Bhesh Badlo" is the
latest invention of the Indian iconic brand. In an effort to take the Fashion to the masses, masses, Big Bazaar, Bazaar, the flagship hypermarket hypermarket brand of retail chain of Future Group, organized a three-day Fashion Show on the streets of Bandra, Mumbai. Brand Endorsement by Celebrity: Big Bazaar is always associated with celebrities
for advertising and marketing of its brand name. The current campaign is starred by
Brand Ambassador and Indian Cricket ODI Captain Mahendra Singh Dhoni. Earlier Himesh Reshammiya and Sanath Jaisuriya were associated with Big Baza ar. ar.
INDUSTRY PROFILE
Retail Sector in India
Retail Retail is boo boomin ming g sector sector in India. India. Retail Retail,, one of India’ India’ss larges largestt indust industrie ries, s, has presently emerged as one of the most dynamic d ynamic and fast paced pac ed industries with several players entering the market. Retail Accounts for over 10 per cent of the country’s GDP and around eight per cent of the employment in India. As the contemporary retail sector in India is reflected in sprawling shopping centers, multiplex- malls and huge complexes offer shopping, entertainment and food all under one roof, the concept of shopping has altered in terms of format and consumer buying behavior, ushering in a revolution in shopping in India. This has also contributed to large scale investments in the real estate sector with sector with major national and global players investing in developing the infrastructure and construction of the retailing business. The trends that are driving the growth of o f the retail sector in India are Low share of organized retailing Falling real estate prices Increase in disposable income and customer aspiration
Increase in expenditure for luxury items
Another credible factor in the prospects of the retail sector in India is the increase in the young working population. In India, high pay-packets, nuclear families in urban areas, along with increasing working-women working-women population population and emerging emerging opportunitie opportunitiess in the services sector. These key factors have been the growth drivers of the organized retail sector in India. India.
Thee reta Th retail ilin ing g confi configu gura rati tion on in Indi Indiaa is fast fast devel developi oping ng as shopp shoppin ing g mall mallss are are increasingly becoming familiar in large cities. When it comes to development of retail space specially the malls, the Tier II cities are no longer behind in the race.
India is being seen as a potential goldmine for retail investors from over the world and India has the top destination for retailers for an attractive emerging retail market. India’s vast middle class and its almost untapped retail industry are key attractions for global retail giants wanting to enter newer markets. Even though India has well over 5 million retail outlets, the country sorely lacks anything that can resemble a retailing indust industry ry in the mod modern ern sense sense of the term. term. This This presen presents ts intern internati ational onal retail retailing ing specialists with a great opportunity. The organized retail sector is expected to grow stronger than GDP growth in the next five years driven by changing lifestyles, burgeoning income and favorable demographic outline.
FDI in Retail Sector
Retailing is the largest private sector industry in the world economy with the global industry size exceeding $6.6 trillion and India is the top destination for retail investors. And the further upsurge is anticipated in the retail sector as the Government of opened up 51% FDI in single brand retail outlets. And as the government is in a process to initiate a second phase of reforms, it is cautiously exploring the avenues for multi brand segment. The Government is seeking for these options keeping in view the existing social framework of India and the will ensure that the entry of global retail giants do not displace the existing employment in the retail business. Industry experts are sensitive to the point that local markets have an edge over the retail investors in India as they have unique advantages such as an understanding of local needs and extended service like home delivery. As the FDI influence on the Indian retail sector sets in, the total size of the retail trade is expected to grow extensively in the coming years and the consumer segments patronizing the big malls will create frenzy for organized retailing predicting a growth of 25-30 per cent per annum over the next decade. Moreover, Indian retail chains would get integrated with global global sup supply ply chains chains since since FDI will will bring bring in technol technology ogy,, quality quality standar standards ds and
marke marketi ting ng ther thereb eby y, leadi leading ng to new new econo economi micc opp oppor ortu tuni niti ties es and and crea creati ting ng mo more re employment generation. Industry trends for retail sector indicate that organized retailing has major impact in controlling inflation because large organized retailers are able to buy directly from producers at most competitive prices. World Bank attributes the opening of the retail sector to FDI to be beneficial for India in terms of price and availability of products as it would give a boost to food products, textiles and garments, leather products, etc., to benefit from large-scale procurement by international chains; in turn, creating jobs opportunities at various levels.
PROMOTIONAL OFFERS
Meaning Promotion is an important marketing force that provides extra incentives to achieve sales. Promotion is an important marketing tool as compared to advertisements and sales force. Promotion is both short term and long term activities carried.
ROLE OF PROMOTION
Promotions are an extremely valuable tool for the marketing of brands.
Like all other tools, promotions can make a valuable contribution to marketing when they are properly used.
Promotions are offered to the customers to get the sales and to increase their market share
The short term promotions are towards increasing the sales and the long term sales are towards increasing the customer base.
WHEN TO USE PROMOTION
A brands quality is inferior to competition
A brands advertising is not as persuasive as competitive
A new brand is being introduced
BELOW
THE
LINE
SALES
PROMOTION
Below the line sales promotions are short-term incentives, largely aimed at consumers. Methods
of
below
1.
the
line
sales
promotion
Price
promotions
Price promotions are also commonly known as" price discounting". These can be
(1)
(2)
done
A
discount
More
in
to
t he
of
t he
normal
two
selling
product
price
at
of
the
ways:
a
product,
normal
or
price.
Price promotions however can also have a negative effect by spoiling the brand reputation or just a temporary sales boost (during the discounts) followed by a lull
when
t he
discount
would
be
called
2.
off.
Coupons
Coupons are another, another, very versatile, versatile, way of offering offering a discount. discount. Consider the following
examples
-
a
On
pack
of
to
the
use
encourage
of
repeat
coupons:
purchase
- In coupon books sent out in newspapers allowing customers to redeem the
coupon -
at
A
-
cut-out On
a
coupon the
as
retailer
part
back
of
of
an
advert
till
receipts
The key objective with a coupon promotion is to maximize the redemption rate – this is the proportion of customers actually using the coupon.
It must be ensured ensured when a company uses coupons that the retailers retailers must hold sufficient
stock
to
avoid
customer
disappointment.
Usee of coupo Us coupon n prom promot otio ions ns is ofte often n best best for for new new produ product ctss or perha perhaps ps to encourage
3.
sales
of
existing
products
Gift
that
are
slowing
with
down.
purchase
The "gift with purchase" is a very common promotional technique. In this scheme scheme,, the custom customer er gets gets som someth ething ing extra extra along along with with the normal normal goo good d purchased.
-
4.
It
Subscription-based Consumer
works
products luxuries
Competitions
best
(e.g. (e.g.
and
for
magazines) perfumes)
prizes
This This is an import important ant tool to increa increase se brand brand awaren awareness ess amongst amongst the target target consumer. It can be used to boost up sales for temporary period and ensure usage
amongst
first
time
users.
5.
Money
refunds
Here, a customer receives a money refund after submitting a proof of purchase to
the
manufacturer.
Customers often view these schemes with some suspicion – particularly if the method of obtaining a refund looks unusual or onerous.
6.
Frequent
user
/
loyalty
incentives
Repeat purchases may be stimulated by frequent user incentives. Perhaps the best examples of this are the many frequent flyer or user schemes used by airlines,
train
companies,
7.
car
hire
companies
Point-of-sale
etc.
displays
shoppi sho pping ng habits habits are changi changing ng for the people people living living in metrop metropoli olitan tan cities cities.. People prefer big retail outlets like Big Bazaar to local kirana stores. Most of the decisions of buying are taken by the virtue of point-of-sale displays in these BTL
retail PROMOTION activities
outlets. of
Big
Bazaar:
BTL promotions are gaining popularity among all big companies nowadays considering their effectiveness because of the "individual customer promotion" at a pric price, e, whic which h is mu much ch less lesser er than than the the norm normal al medi mediaa prom promot otio ions ns.. • •
Low
prices
on
Wednesday
Concept
•
Low
prices
of
Big
Promotional School
Happy
Wednesday D ay offers
Jao Khushi
on
Khushi Ki Father’s
Khushi Barsaat D ay
CHAPTER-2
LITERATURE LITERATURE REVIEW REVI EW
WHAT IS RETAILING
Retailing is all the activities involved in selling goods and services directly to final consumers for their personal, non-business use. The word retail is derived from the French word retailer, meaning to cut a piece off or to break bulk. A retailer buys goods or products in large quantities from manufacturers or importers, either directly or through a wholesaler, and then sells individual items or small quantities to the general public or end user customers, usually in a shop, also called store. Retailers are at the end of the supply chain. Marketers see retailing as part of their overall distribution strategy.
Retailing is one area of the broader term, e-commerce. Retailing is buying and selling both goods and consumer services. With more number of educated and literate consumers entering the economy and market, the need for reading the pulse of the consumers has become very essential.
Retail marketing is undergoing radical restructuring. This is because of increase in gross domestic product, increase in per capita income, increase in purchasing power and also the ever changing tastes and preferences of the people. The entry of plastic money, ATMs, credit cards and debit cards and all other consumer finances, the taste for the branded goods also added for the evolution of retail marketing.
Reta Retail il mark market etin ing g is not not just just buyi buying ng and and sell sellin ing g but but also also rend render erin ing g all all othe other r personalized consumer services. With the RM picking p icking up it has given a new look for various fast moving capital goods (FMCG) goods. This not only increased the demand for various goods in the market but also made retail marketing the second largest employment area, the first being agriculture.
TYPES OF RETAILING
Retailing can be classified under two heads: 1 Store Retailing 2 Non-store Retailing. Retailing . “Retailing is a distinct, diverse and dynamic sector” . “It is an activity of enormous economic significance to most developed nations”. It generates revenue and wealth for nation, encourages investments and brings technological advancements. Stated that “it brings employment and creates wealth of the economy”. “It is a vibrant part of our changing society and a major source of employment” Retailing performs activities at larger level so it requires massive manpower to handle and manage its operations. Retailing also helps society in general by providing goods and services in reasonable price and increasing their standards of living. “Retailing activity can be viewed as a significant
contributor
to
the
economy
in
general”.
Retailing is the set of activities that markets products or services to final consumers for their own personal or household use. It does this by organizing their availability on a relatively large scale and supplying them to consumers on a relatively small scale.”
Retailing makes products and services available in large quantities. Retailers produce or order the products/services in bulk so they can take advantage of economy of scale and thus they can formulate competitive pricing strategies. Products and services are generally sold through the store or on the internet. Store Retailing Reta Retail il stor stores es come come in a vari variet ety y of shap shapes es and and size sizes, s, and and new reta retail il types types keep keep emerging. They can be classified by one on e or more of several characteristics: 1Amount of service 2Product line 3Relative prices 4Control of outlets 5Type 5T ype of store cluster
1) AMOUNT OF SERVICE
Differ Different ent produc products ts requir requiree differ different ent amount amountss of servic service, e, and custom customer er servic servicee preferences vary: Self-service retailers
Customers are willing to perform their own "locate-compare-select" process to save money. Today, self-service is the basis of all discount operations, and typically is used by sellers of convenience goods (such as supermarkets) and nationally branded, fast moving shopping goods (such as catalog showrooms). Limited service retailers
Retailers such as Sears and J. C. Penney, provide more sales assistance because they carry more shopping goods about which consumers need information. Their increased operating costs resulting higher prices. Full service retailers Like specialty stores and first-class department stores, have salespeople to assist customers in every phase of the shopping process. Full service stores usually carry more specialty goods for which customers like to be waited on. They provide more liberal liberal return return policies, policies, various various credit credit plans, plans, free delivery delivery,, home servicing, servicing, and extras extras such as lounges and restaurants. 2) PRODUCT LINE:
Retailers can also be classified by the depth and breadth of their product assortments. The depth of a product product assortment assortment refers refers to the number of different different versions of each product that are offered for sale. The breadth of the assortment refers to the number of different products that the store carries.
. General Merchandisers – These retailers carry a wide range of product categories (i.e., broad width) though the number of different items within a particular product line is generally limited (i.e., shallow depth). .
Multiple Lines Specialty Merchandisers - Retailers classified in this category
stock a limited number of product lines (i.e., narrow width) but within the categories they handle they often offer a greater selection (i.e., extended depth) than are offered by general merchandisers. For example, a consumer electronics retailer would fall into this category. Single Line Specialty Merchandisers – Some retailers limit their offerings to just
one product line (i.e., very narrow width), and sometimes only one product (i.e., very
shallow depth). This can be seen online where a relatively small website may sell a single product such as computer gaming software. Another example may be a small jewelry store that only handles watches. 3) RELATIVE PRICES
Retailers can also be classified by the prices they charge. Most retailers charge regular prices and offer normal quality goods and customer service. Some offer higher quality qua lity goods and service at higher prices Discount Pricing – Discount retailers are best known for selling low priced
products that have a low profit margin (i.e., price minus cost). To make profits these retailers look to sell in high volume. Typically discount retailers operate with low overhead costs by vigorously controlling operational spending on such such thin things gs as real real esta estate te,, desi design gn issu issues es (e.g (e.g., ., stor storee layo layout ut,, webs websit itee presentation), and by offering fewer services to their customers. Competitive Competitive Pricing – The objective of some retailers is not to compete on
price but alternatively not to be seen as charging the highest price. These retailers, who often operate in specialty markets, aggressively monitor the market to insure their pricing pricing is competitive competitive but they do not desire to get into price wars with discount retailers. Thus, other elements of the marketing mix (e.g., higher quality products, nicer store setting) are used to create higher value for which the customer will pay more. Full Price Pricing – Retailers targeting exclusive markets find such markets
are far less price sensitive than mass or specialty markets. In these cases the additional value added through increased operational spending (e.g., expensive locations, more attractive design, more services) justify higher retail prices.
CHAPTER-3
NEED OF THE STUDY
In this competitive world, there exists huge competition between organizations of retail sector. The company which adopts best sales promotion activities will have better profits. So, it is necessary to know company’s sales promotion activities which results in sales growth and turn profits to the organization.
OBJECTIVE OF THE STUDY
Following are the objectives of the study: To find out the influence of Advertising and Sales promotion on the sales of the
Big Bazaar To find the most effective tool of Sales promotion technique to entice customers
used by Retail businesses. To study various advertising and sales promotion techniques used by Big Bazaar. To find out the influence of Advertising and Sales promotion p romotion on the sales of Big
Bazaar. To find the effectiveness of the Brand recall and Recognition of o f Big Bazaar.
To find out the ranking of Big Bazaar with its relative competitors as per the
customers. To find certain new techniques that Big Bazaar can adopt to improve its services
CHAPTER-4
RESEARCH METHODOLOGY
Methodology adopted for study Observ Observati ation on Method Method (Obser (Observin ving g the workin working g of variou variouss departm department entss like like
finance, marketing, purchasing, production.) Questi Questionn onnair airee method method (Enqui (Enquirin ring g about about the Sales Sales promot promotion ion techni technique quess
adopt adopted ed by Big Big Bazar Bazar from from its its Mana Manager gerss and and empl employ oyee ees, s, also also from from the the cusomers visiting the store)
Visiting & surfing websites of company. Visiting
Meaning
Research Methodology is a set of various methods to be followed to find out various Information’s regarding market strata of different products. Research Methodology is required in every industry for acquiring knowledge of their products.
Area of study
The study is exclusively exclusively done in the area of marketing. marketing. It is a process requiring requiring care, sophistication, experience, business judgment, and imagination for which there can be no mechanical substitutes.
Sources of Data Primary Source - The primary data was collected by means of a survey.
Questionnaires were prepared and customers of the big bazaar at two branches were approached to fill up the questionnaires. The questionnaire contains 20 questions which reflect on the type and quality of services provided by the Big bazaar to the customers. The response of the customer is recorded on a grade scale of strongly disagree, disagree, uncertain, agree and strongly agree for each question. The filled up information was later analyzed to obtain the required interpretation and the findings. Secondary Source - In order to have a proper understanding of the customer
service of Big Bazaar a depth study was done from the various sources such as books, a lot of data is also collected from the official websites of the Big bazaar and the articles from various search engines like Google, yahoo search and answers.com.
RESEARCH DESIGN
The research design is exploratory till identification of customer services parameters. Later it becomes descriptive when it comes to evaluating the promotion techniques of the big bazaar.
also know known n as statistical descri ribe bess data data and and Descriptive Descriptive research research , also statistical research research, desc charac character terist istics ics about about the sales sales promot promotion ion techniq techniques ues
being being studied studied.. Descri Descripti ptive ve
research answers the questions who, what, where, when and how. Although the data description is factual, accurate and systematic, the research cannot describe what caused a situation. Thus, descriptive research cannot be used to create a causal relationship, where one variable affects another. The description is used for frequencies, averages and other statistical calculations. Often the best approach, approach, prior to writing writing descriptive descriptive research, is to conduct a survey survey investigation. Qualitative research often has the aim of description and researchers may may foll follow ow-u -up p with with exam examin inat atio ions ns of why why the the obse observ rvat atio ions ns exis existt and and what what the the implications of the findings are.
RESEARCH SAMPLE
SAMPLING PLAN: Since it is not possible to study whole universe, it becomes necessary to take sample from the universe to know about its characteristics. Sampling Units: Customers Customers and Empolyees Empolyees of Big bazaar. bazaar. Sample Technique: Random Sampling. Research Instrument: Structured Questionnaire. Contact Method: Personal Intervie/Filling the Questionnairs.
SAMPLE SIZE:
Thee work Th work is a case case of Big Big baza bazaar ar one one of the the Reta Retail il Sect Sector or indu indust stry ry toge togeth ther er representing great per cent of the market share of Indian retail sector. The survey was conducted in the city of Chandigarh with two branches of big bazaar, with 100 customers as respondent.
DATA DATA COLLECTION COLLECTI ON TOOL
Data is collected from various customers through personal interaction. Some other information is collected through secondary data also. Data was collected through a structured questionnaire, Likert Scale is used for for analysis. Likert scale is simply a statement which the respondent is asked to evaluate according to any kind of subjective or objective criteria, generally the level of agreement and disagreement is measured Likert scaling is a bipolar scaling method, measuring either positive or negative response to a statement.
CHAPTER-5
DATA
INTREPRETATION
AND
ANALYSIS GRAPHS AND FINDINGS Concept: To survey whether the customers visiting at Big Bazaar are aware of the
Promotional offers Table No: 1 Are Are you aware of promotional offers at Big Bazaar
Valid
Yes No Total
Frequ Frequen ency cy 2 10
Perce ercent nt 84 . 0
Val Valid Perce ercent nt 8 4.0
Cumulative Percent 8 4.0
40
16 . 0
1 6.0
1 0 0 .0
2 50
1 00 .0
1 0 0 .0
Graph No: 1
Are you aware of promotional offers at Big Bazaar Yes No
16.00%
84.00%
Interpretation: Majority (84%) of the customers surveyed were aware of the
Promotional offers at Big Bazaar. Concept: To study mode of communicating promotional offers to the customers
Table No: 2 What was the mode o f Communication
Valid
TV News Paper Hordings Total
Missing Total
System
Frequ Frequen ency cy 35
Perc Percen entt 1 4 .0
Vali Valid d Perc Percen entt 1 6 .7
Cumulative Percent 1 6.7
13 6
5 4 .4
6 4 .8
8 1.4
39
1 5 .6
1 8 .6
1 0 0 .0
21 0
8 4 .0
1 0 0 .0
40
1 6 .0
25 0
1 00 .0
Graph No: 2
What was the mode of Communication 70 65
60
50
40
30
20
t n e 10 c r e P 0
19
17
TV
News Paper
Hordings
What was the mode of Communication
Interpretation: News paper was the most effective mode for communication,
followed by hoardings and TV advertisements. Concept: To check the alertness of customers towards the announcements made at
Big Bazaar during shopping Table No: 3 Did you not ice/hear ice/hear about th e Promotional Promotional offers Today
Valid
Yes No Total
Perce Percent nt 9 2 .8
Vali Valid d Perce Percent nt 9 2. 8
Cumulative Percent 92 . 8
18
7 .2
7.2
1 00 . 0
250
10 0 .0
10 0.0
Freque Frequency ncy 232
Graph No: 3
Did you notice/hear about the Promotional offers Today Yes No 7.20%
92.80%
Interpretation: Promotional offers are noticed and heard by the customers during
their shopping Concept: To study frequency the sample customers visited Big Bazaar Table No: 4 How frequently you visit Big Bazaar Fre que ncy
Per cen t
Valid Perc ent
Cum ulativ e Perc
ent V a li d
Occasion ally
9
3.6
3.6
3.6
Once in a month
42
16. 8
16.8
20.4
Once in a week
163
65. 2
65.2
85.6
4
1.6
1.6
87.2
32
12. 8
12.8
100. 0
250
100 .0
100. 0
Daily As and when required Total
Graph No: 4
How frequently you visit Big Bazaar
60
t n e40 c r e P
65.20%
20
16.80% 12.80% 3.60%
1.60%
0 Occasionaly
Once in a month
Once in a week
Daily
How frequently you visit Big Bazaar
As and when required
Interpretation: 65 % of the customers visit Big Bazaar once in a week, either on
Wednesday or week ends, followed by customers visiting once in a month and as and when required. Concept: Effectiveness of promotional offers inducing the customers to make
purchases
Table No: 5 Promotional Promotional off ers at Big Bazaar are attractive and indu ce me to make a pu rchase
Valid
Frequ Frequenc ency y 65
Perce Percent nt 26. 0
Valid alid Percen ercentt 26.0
Cumulative Percent 2 6. 0
1 00
40. 0
40.0
6 6. 0
Neither Agree/Nor Dis-agree
56
22. 4
22.4
8 8. 4
Dis-agree
29
11. 6
11.6
1 00 .0
2 50
1 00. 0
100.0
Strongly Agree Agree
Total
Graph No: 5
Promotional offers at Big Bazaar are attractive 50
40
40
30 26 22
20
t 10 n e c r e P 0
12
Strongly Agree
Agree Agree
Neither Agree/Nor Di
Dis-agree
Promotional offers at Big Bazaar are attractive and induce me to m
Interpretation: 26% strongly agree, 40% agree, 22% neither agree nor dis-agree and
remaining customers dis-agree
customer ’s preferences of the commodities Concept: To study customer’s Table No: 6 Rank the products that you expect promotional offers
Valid
Freque Frequenc ncy y 12 5
Perce Percent nt 50.0
Vali Valid d Perce Percent nt 50.0
Cumulative Percent 50.0
Groceries
80
32.0
32.0
82.0
Electronic items
32
12.8
12.8
94.8
Furnitures
13
5.2
5.2
100.0
25 0
100.0
100.0
Clothing
Total
Rank the products that you expect promotional offers
50
40
t 30 n e c r e P
50.00%
20 32.00%
10 12.80% 5.20%
0 Clothing
Groceries
Electronic items
Furnitures
Rank the products that you expect promotional offers
Graph No: 6
Interpretation: Customers preferred clothing followed by groceries, electronic items
and furniture’s. furniture’s.
Concept: To study whether customers availed benefit of promotional offers
Table No: 7
Have you availed any offers during your recent visit
Valid
Yes
Perce Percent nt 8 5 .6
Vali Valid d Perce Percent nt 8 5. 6
Cumulative Percent 85 . 6
36
1 4 .4
1 4. 4
1 00 . 0
250
10 0 .0
10 0.0
Freque Frequency ncy 214
No Total
Graph No: 7
Have you availed any offers during your recent visit Yes No
14.40%
85.60%
Interpretation: Majority (85%) of customers availed benefit of promotional offers
Concept: What did you opt for?
The customers may go in for Free offers or discount offers. To To study the customers preference of offers this question question was asked.
Table No: 8 What did you opt for
Valid
Total Missing
Perce Percent nt 36.4
Vali Valid d Percent ercent 42.5
Cumulative Percent 42 . 5
49.2
57.5
1 00 . 0
214
85.6
100.0
36
1 4 .4
250
1 00 . 0
Frequen Frequency cy Discount offer 91 Free offer 123 System
Total
Graph No: 8
What did you opt for
Missing
Discount offer
Free offer
Interpretation: 49% of the customers availed Free offers 36% availed Discount
offers.
Concept: Did customers communicate benefit of promotional offers to their friends
and relatives
Table No: 9 Do you communicate offers at Big Bazaar to your friends
Valid
Yes
Perce Percent nt 8 7 .2
Vali Valid d Perce Percent nt 8 7. 2
Cumulative Percent 87 . 2
32
1 2 .8
1 2. 8
1 00 . 0
250
10 0 .0
10 0.0
Freque Frequency ncy 218
No Total
Graph No: 9
Do you communicate offers at Big Bazaar to your friends Yes No
12.80%
87.20%
Interpretation: Majority (87%) of customers did communicate benefits of
promotional offers to their friends friends and relatives.
Concept: Where do you find the following better?
1. Price 2. Quality 3. Prod Produc uctt range ange 4. Prom Promoti otion onal al offe offers rs 5. Ambience Concept: Price Table No: 10 Price
Valid
Big Bazaar Other retail stores Total
F requen cy 2 15
Per ce nt 86 .0
Valid Pe r cen t 86. 0
Cumulative Percent 86 .0 1 00 .0
35
14 .0
14. 0
2 50
10 0. 0
10 0.0
Graph No: 10
Price
100
80
t n e c r e P
60
86.00%
40
20
14.00%
0 Big Bazaar
Other retail stores
Price
Interpretation: 86% of customers find price better compared to other retail stores
Concept: Quality
Table No: 11 Quality
Valid
Big Bazaar Other retail stores Total
Frequ Frequenc ency y 1 90
Percen ercentt 76.0
Valid alid Percent ercent 76.0
Cumulative Percent 76.0
60
24.0
24.0
1 00 .0
2 50
10 0. 0
100 .0
Graph No: 11
Quality
80
60
t n e c r40 e P
76.00%
20 24.00%
0 Big Bazaar
Other retail stores
Quality
Interpretation: Quality at Big Bazaar is good as compared to other retail stores
Concept: Product Range
Table No: 12
Range
Valid
Big Bazaar
Freque Frequenc ncy y 2 40
Percent ercent 9 6. 0
Valid alid Percen ercentt 96.0
Cumulative Percent 96 .0
10
4.0
4. 0
100 .0
2 50
100.0
10 0.0
Other retail stores Total
Graph No: 12
Range
100
80
t 60 n e c r e P
96.00%
40
20
4.00%
0 Big Bazaar
Other retail stores
Range
Interpretation: (96)% of Customers feel product range good at Big Bazaar
Concept: Promotional offers
Table No: 13
Offers
Valid
Big Bazaar
Freque Frequenc ncy y 2 18
Percent ercent 8 7. 2
Valid alid Percen ercentt 87.2
Cumulative Percent 87 .2
32
1 2. 8
12.8
100 .0
2 50
100.0
10 0.0
Other retail stores Total
Graph No: 13
Offers
100
80
t 60 n e c r e P
87.20%
40
20
12.80%
0 Big Bazaar
Other retail stores
Offers
Interpretation: Promotional offers are good compared to other retail stores
Concept: Ambience
Table No: 14
Ambience
100
80
t 60 n e c r e P
96.80%
40
20
3.20%
0 Big Bazaar
Other retail stores
Ambience
Ambience
Valid
Big Bazaar Other retail stores Total
Freque Frequenc ncy y 2 42
Percen ercentt 96. 8
Valid alid Percen ercentt 96.8
Cumulative Percent 96.8
8
3. 2
3.2
10 0.0
2 50
10 0.0
100 .0
Graph No: 14
Interpretation: Majority (97%) of the customers find Ambience very good
Concept: To study whether Customers feel like coming to Big Bazaar to avail the
benefits of the offers Table No: 15 Do offers make you feel like visiting Big Bazaar
Valid
Yes
Perce Percent nt 9 0 .4
Vali Valid d Perce Percent nt 9 0. 4
Cumulative Percent 90 . 4
24
9 .6
9.6
1 00 . 0
250
10 0 .0
10 0.0
Freque Frequency ncy 226
No Total
Graph No: 15
Do offers make you feel like visiting Big Bazaar Yes No
9.60%
90.40%
Interpretation: Majority (90%) of customers are attracted to offers and hence they
will shop frequently at Big Bazaar
LIMITATIONS OF STUDY
Data collection cannot be asserted to be free from errors, as the sample
size is small The project is done for the partial fulfillment of the MBA program Time is the major limiting factor as the available time for survey was
only three months. The accuracy of the findings is trusted by the accuracy of the statistical
tools used for analysis. Few respond respondent entss were were reluct reluctant ant while while answer answering ing the questio questions ns due to their their bus busy y schedule
CHAPTER-6
FINDINGS Majority (84%) of the customers surveyed were aware of the Promotional
offers at Big Bazaar Newspaper was the most effective mode for communication, followed by
hoardings and TV advertisements. Promot Promotion ional al offer offerss are notice noticed d and heard heard by the custom customers ers during during their their
shopping 65% of the customers visit Big Bazaar once in a week, either on Wednesdays
or week ends, followed by customers visiting once in a month and as-andwhen required. 26% strongly agree, 40% agree, 22% neither agree nor disagree and remaining
customers disagree Custom Customers ers prefer preferred red clothi clothing ng follow followed ed by grocer groceries ies,, electr electroni onicc items items and
furnitures Majority (85%) of customers availed benefit of promotional offers 49% of the customers availed Free offers 36% availed Discount o ffers. Majority (87%) of customers did communicate benefits of promotional offers
to their friends and relatives.
86% of customers find price better compared to other retail stores Customers found Quality at Big Bazaar good as compared to other retail stores Customers feel product range good at Big Bazaar Prom Promoti otion onal al offe offers rs are are goo good d comp compar ared ed to other other reta retail il stor stores es as per per the the
customers
SUGGESTIONS 16% of the surveyed customers were not aware of promotional offers, so the
Company should ensure that maximum customers know about promotional offers visiting Big Bazaar and there should make aware of offers to general public.
34% of the customers are not attracted to promotional offers because of short
range of electronic items and some doubt the quality of the products on which promotional offers are declared. The Company should take note of this.
Some custom customers ers are disappo disappoint inted ed because because of sho short rt period period of promot promotion ional al Some offers as they visit Big Bazaar after the offer period is over. Such customers should be convinced that similar offers would be declared soon.
The duration of the discount offers must be increased, so that more number of
customers can avail the benefit.
Mo Most st of the the cust custom omer erss pref prefer er clot clothi hing ng (50% (50%)) and and groc grocer erie iess (32% (32%)) , the the
Compan Company y has to attrac attractt the custom customers ers toward towardss and electr electroni onicc items items and furnitures
The promotional offers on Wednesdays can also be extended to Tuesdays and
Sundays so that more number of customers will get benefit of the offers and thus sales increase.
The employees of Big Bazaar should be discouraged to take the benefit of
offers which are meant for customers
CONCLUSION Promotional offers play an important role to increase the sales in short terms
Chandigarh population is experiencing a new pattern of shopping
The customer buying pattern has changed with the introduction of Big Bazaar
in Belgaum
The foot fall has increased at Big Bazaar
Customers are exposed to new brands and they are becoming brand savvy
Questionnaire
1) Are you aware of promotional offers at Big Bazaar? (If No, please go to question No. 3)
Yes
No
2) If yes, what was the mode of communication? TV
News Paper
Hoardings
3) Did you notice/ hear about abou t the promotional offers today ? Yes
No
4) How frequently you visit Big Bazaar Occasionally
Once in a month
Daily
As and when required
Once in a week
5) The Promotional offers at Big Bazaar are attractive and induce me to make a purchase? Strongly Agree
Agree
Neither Agree/ Nor Dis-agree
Dis-agree
Strongly
Dis-agree
6) For which range of products/brands you expect promotional offers? (Please Rank from scale 1being high to 4 being lowest) Clothing
Groceries
Electronic items
Furniture
7) Have you availed any a ny offers during your recent visits? (If No, please go to question qu estion No. 9) Yes
No
8) What did you opt for? Discount offer
Free offer
Others
9) Do you communicate offers at Big Bazaar to your friends/relatives? Yes
No
10) Where do you find the following better (please mark) At Big Bazaar shops
Price Quality Product range Promotional Offers Ambience
11) Do offers make you feel like visiting Big Bazaar again?
At other Retail
Yes
No
