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CONSUMER BEHAVIOUR A report submitted to Delhi Business School, New Delhi as a part fulfillment of Full time industry integrated MBA + Post Graduate Program in Entrepreneurship & Business.
Submitted to: Dr. Devendra Pathak
Submitted By: Name of Student: Sonam Srivastava
Director Academics, Delhi Business School, New Delhi.
Roll No. : 86 Batch:Spring batch(0709) University: Delhi Business School(PTU)
Delhi Business School B-II/58, M.C.I.E., Mathura Road, New Delhi Website : www.dbs.edu.in
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ACKNOWLEDGEMENT I would like to acknowledge and extend my heartfelt gratitude to the following persons who have made the completion of this possible project: Our Dean,DR.Devendra Pathak,for his encouragement and support. Dr.Ravi Prakash, my project mentor , for understanding and assistance, assisting in collection of the topics for the project.
his the
Ms.Sweta Seth,(MIS faculty), for the constant reminders and much needed motivation and for the help and inspiration she extended. All the faculty of MBA (Delhi business school) was very supportive and helped me in anyway. The staff at BigBazaar turned to be very helpful in providing me the informations about the company and it operations. And to God , who made all things possible.
Sonam Srivastava
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DECLARATION BY STUDENT I hereby declare that the mentioned information in the project is correct up to my knowledge and I bear the responsibility for the correctness of the mentioned particulars.
SONAM SRIVASTAVA
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TABLE OF CONTENTS
Contents
Pages
1. Introduction ………………………………
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2. Objective of Research Study ……………10 2.1. Market analysis ……………………….10 3. Research Methodology ……………………11 3.1. Source of data …………………………11 3.1. a. Survey method ………………11 3.1. b. Cross sectional survey…….11 3.2. Sample size …………………………….11 3.3. Time taken ……………………………..11 3.4. Tools and Techniques of analysis.12 4. Literature Studies ………………………....15 4.1. Company profile ………………………15 4.2. Diagram ………………………………….17 4.3. About us …………………………………18 4.3. a. Group vision ………………….18 4.3. b. Group mission ……………….18 4.3. c. Core values ……………………19 4.4. Introduction to big bazaar...........20 4.5. Big bazaar promises …………………21 4.6. Portfolio management ………………24
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4.7. Product line …………………………….26 4.8. Marketing strategy ………………….27 4.8. 4.8. 4.8. 4.8. 4.8. 4.8.
a. Segmentation ……………….27 b. Targeting ……………………..28 c. Positioning …………………...29 d. Marketing mix ……………….31 e. Retail mix ……………………..35 f. Promotion mix ………………36
4.9. Distribution of revenue earner ….44 4.10. Competitors ………………………….46 4.11. Major problems ……………………..59 4.12. Future prospects ……………………51 5. Work assigned by the company ……….54 5.1. Business objective ……………………54 5.2. Operating the scheme ………………54 5.3. Working ………………………………….55 5.3. 1. To know consumer Behavior………………………..55 5.3. 2. To get the right positioning Done……………………………..58 5.3. 3. To maintain stock on floor..59 5.3. 4. Update the prices …………. .59 5.3. 5. Discount criterion …………. .59 5.3. 6. Inventory control ………… 59 5.3. 7. Work on barcode tender …..61 6. Survey……………………………………………62 6.1. Survey analysis…………………………62 6.2. Trend analysis…………………………..68
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6.3. Conjoint analysis……………………….69 7. General survey and consumer behavior analysis for pack of two ………………………79 8. Conclusion ……………………………………..92 9. Bibliography …………………………………..93 10. Annexure ……………………………………. 94
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1. INTRODUCTION .
RETAIL INDUSTRY In the Indian retailing industry, food is the most dominating sector and is growing at a rate of 9% annually. India retail industry is progressing well and for this to continue retailers as well as the Indian government will have to make a combined effort. The branded food industry is trying to enter the India retail industry and convert Indian consumers to branded food. Since at present 60% of the Indian grocery basket consists of non- branded items. India retail industry is expanding itself most aggressively; as a result a great demand for real estate is being created. Indian retailers preferred means of expansion is to expand to other regions and to increase the number of their outlets in a city. It is expected that by 2010, India may have 600 new shopping centers. The Indian retail market, which is the fifth largest retail destination globally, according to industry estimates is estimated to grow from the US$ 330 billion in 2007 to US$ 427 billion by 2010 and US$ 637 billion by 2015. Simultaneously, modern retail is likely to increase its share in the total retail market to 22 per cent by 2010. Continuing the robust growth of the organized retail in India, according to the Credit Rating and Information Services of India, the industry raked in US$ 25.44 billion turnover in 2007-08 as against US$ 16.99 billion in 200607, a whopping growth rate of 49.73 per cent.
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India retail industry is the largest industry in India, with an employment of around 8% and contributing to over 10% of the country's GDP. Retail industry in India is expected to rise 25% yearly being driven by strong income growth, changing lifestyles, and favorable demographic patterns.
"The story is not about us, but this story is about the people who visit our stores. This is a proud moment for India." One of the biggest retail here in India we know is Kishore Biyani’s big bazaar. The company ended 2007-08 with Rs5048crore in revenue. Biyani's and Big Bazaar's, march comes at a time when several new retailers are slowing expansion, reducing the number of outlets, effecting layoffs, even exiting the business. By 2011, he claims, there will be 300 Big Bazaars, and Pantaloon Retail (India) Ltd, his flagship, will have revenue of Rs13000crore. Thus here we will know about the company profile, operations and also about the consumer behavior towards the schemes, discount, etc which are offered by the store to facilitate customers.
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2. OBJECTIVE OF RESEARCH STUDY 2.1. MARKET ANALYSIS
The research objectives of this project are:a. Marketing activities and operational activities are always driven with an aim of getting sale increased with innovate ideas. Offers are designed in such a manner that customers are made to go and experience the shopping. Marketing also gives some offer to increase the bill size, taking in consideration the on going fashion in vogue. b. Marketing Strategies targeting the customer: Advertising Strategy –Understanding the media consumption habits of the customer.
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3. RESEARCH METHODOLOGY 3.1. SOURCE OF DATA a. SURVEY METHOD Data are usually collected through the use of questionnaires. The data is collected by mean of simple survey done in the retail store of the customers. b. CROSS-SECTIONAL SURVEYS Cross-sectional surveys are used to gather information on a population at a single point in time. The customers were surveyed to find out their consumption behavior for the products in various schemes. A different cross-sectional survey questionnaire might try to determine the relationship between two factors, like religiousness of parents and views on Internet filtering. 3.2. SAMPLE SIZE A sample size of 90 was considered in this project. That is, a total number of respondents were 90 for survey.
3.3. TIME TAKEN The time of research was 1 month and surveys of some people were done daily. The research was based on the change in consumption of customers for the products in scheme.
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3.4. TOOLS AND TECHNIQUES OF ANALYSIS a. PERSONAL INTERVIEW Personal interviews are highly susceptible to inadvertent “signaling” to the respondent. The cumulative effect of several facial expressions is likely to be felt. By the use of this method the facial expressions tell about how a customer feels about the product, and his knowledge about the product in the scheme. This will let us know following:1.
2. 3.
The reason could be known that why a product is not liked and what are shortcomings in the product? The preference for the product of the customer? Who are the frequent customers?
b. PROJECTIVE TECHNIQUES Projective techniques are used when a consumer may feel embarrassed to admit to certain opinions, feelings, or preferences. It has been found that in such cases, people will tend to respond more openly about “someone else.” Thus, we may ask them to explain reasons why others not buying the product, or why other customers are not willing to take advantage of the scheme, or what changes they want should be there for their convenience. c. OBSERVATION OF CONSUMER Observation of customers is often a powerful tool. Looking at how consumers select products may yield insights into
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how they make decisions and what they look for. Observing consumers, tells about:1. What is he looking in the product? 2. Is he brand loyal? 3. Is he more or less price sensitive? 4. Is he more interested in packaging, manufacturing, etc. 5. Whether his taste has shifted? Observation may help us determine how much time consumers spend comparing prices, or whether nutritional labels are being consulted. d. SCANNER DATA Many consumers are members of supermarket “clubs.” They are provided with customer card which they have to present this when they make purchases; consumers are often eligible for considerable discounts on selected products. Nearly all retailers in the area usually cooperate. It is now possible to track what the consumer bought in all stores and to have a historical record. The consumer’s shopping record is usually combined with:1. Demographic information (e.g., income, educational level of adults in the household, occupations of adults, ages of children, and whether the family owns and rents).
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2. The consumption quantity could be know about the product which is used in good quantity? e. PHYSIOLOGICAL MEASURES Physiological measures are occasionally used to examine consumer response. It helps to know:Advertisers may want to measure a consumer’s level of arousal during various parts of an advertisement? In retail stores paging is done at a interval of time of schemes and discounts so that people are made aware and they can be provoked to buy.
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4. LITERATURE STUDIES 4.1. COMPANY PROFILE Pantaloon Retail (India) Limited, is India’s leading retailer that operates multiple retail formats in both the value and lifestyle segment of the Indian consumer market. Headquartered in Mumbai (Bombay), the company operates over 10 million square feet of retail space, has over 1000 stores across 61 cities in India and employs over 30,000 people. The company’s leading formats include Pantaloons, a chain of fashion outlets, Big Bazaar, a uniquely Indian hypermarket chain, Food Bazaar, a supermarket chain, blends the look, touch and feel of Indian bazaars with aspects of modern retail like choice, convenience and quality and Central, a chain of seamless destination malls. Some of its other formats include, Depot, Shoe Factory, Brand Factory, Blue Sky, Fashion Station, all, Top 10, m bazaars and Star and Sitara. The company also operates an online portal, futurebazaar.com. A subsidiary company, Home Solutions Retail (India) Limited, operates Home Town, a large-format home solutions store, Collection i, selling home furniture products and E-Zone focused on catering to the consumer electronics segment. Pantaloon Retail was recently awarded the International Retailer of the Year 2007 by the US-based National Retail Federation (NRF) and the Emerging Market Retailer of the Year 2007 at the World Retail Congress held in Barcelona.
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Pantaloon Retail is the flagship company of Future Group, a business group catering to the entire Indian consumption space.
Future Group is one of the country’s leading business groups present in retail, asset management, consumer finance, insurance, retail media, retail spaces and logistics. The group’s flagship company, Pantaloon Retail (India) Limited operates over 10 million square feet of retail space, has over 1,000 stores and employs over 30,000 people. Future Group is present in 61 cities and 65 rural locations in India. Some of its leading retail formats include, Pantaloons, Big Bazaar, Central, Food Bazaar, Home Town, eZone, Depot, Future Money and online retail format, futurebazaar.com. Future Group companies includes, Future Capital Holdings, Future Generally India Indus League Clothing and Galaxy Entertainment that manages Sports Bar, Brew Bar and Bowling Co. Future Capital Holdings, the group’s financial arm, focuses on asset management and consumer credit. It manages assets worth over $1 billion that are being invested in developing retail real estate and consumer-related brands and hotels. The group’s joint venture partners include Italian insurance major, Generali, French retailer ETAM group, US-based stationary products retailer, Staples Inc and UK-based Lee Cooper and India-based Talwalkar’s, Blue Foods and Liberty Shoes.
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4.2. PANTALOON RETAIL INDIA LTD.
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FOOD BAZAA R
CENTRA L
PANTAL OON
FASHION STATION
BIG BAZAAR
E-ZONE
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4.3. ABOUT US
4.3. a. GROUP VISION: Future Group shall deliver Everything, Everywhere, Every time for Every Indian Consumer in the most profitable manner. 4.3. b. GROUP MISSION: 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. We will be the trendsetters in evolving delivery formats, creating retail realty, making consumption affordable for all customer segments – for classes and for masses. We shall infuse Indian brands with confidence and renewed ambition. We shall be efficient, cost- conscious and committed to quality in whatever we do. We shall ensure that our positive attitude, sincerity, humility and united determination shall be the driving force to make us successful. 4.3. c. CORE VALUES: Indianness: confidence in ourselves. Leadership: to be a leader, both in thought and business. Respect & Humility: to respect every individual and be humble in our conduct.
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Introspection: leading to purposeful thinking. Openness: to be open and receptive to new ideas, knowledge and information. Valuing and Nurturing Relationships: to build long term relationships. Simplicity & Positivity: Simplicity and positivity in our thought, business and action. Adaptability: to be flexible and adaptable, to meet challenges. Flow: to respect and understand the universal laws of nature.
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4.4. INTRODUCTION TO BIG BAZAAR a. It is a chain of shopping malls in India currently with 31 outlet owned by Kishore Biyani’s Pantaloon Group. b. Big bazaar is not just another hypermarket, but also provides the best products at the best price. c. It Reflect the look and feel of Indian bazaars at their modern outlets. All over India, Big Bazaar attracts a few thousand customers on any regular day. d. Big Bazaar is a chain of department stores in India, currently with 92 stores. It is owned by the Pantaloon Retail India Ltd, Future Group. It has considerable success in many Indian cities and small towns. e. A department store is a retail establishment which specializes in selling a wide range of products without a single predominant merchandise line. Department stores usually sells products including apparel, furniture, appliances, electronics, and additionally select other lines of products such as paint, hardware, toiletries, cosmetics, photographic equipment, jewelery, toys, and sporting goods. The idea was pioneered by entrepreneur Kishore Biyani, the CEO of Future Group. Currently Big Bazaar stores are located only in India. It is the biggest and the fastest growing chain of department store and aims to have 150 outlets by June 2009 and 350 stores by the end of year 2010.
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4.5.
The Big Bazaar promise
a. MANUFACTURER’S WARRANTIES ON ALL PRODUCTS: Big Bazaar promises to sell only the original products from the authorized dealers; so that all applicable products carry the original manufacturer’s warranty. To service any product purchased at Big Bazaar, customer can visit the authorized service centre of the manufacturer. The invoice accompanying the product is the warranty document. b. GUARANTEED DELIVERY: Big Bazaar guarantees to deliver the exact product that has selected, without defects. In case of receiving a different product, or if the product is damaged in transit, the customer should contact it within the stipulated time period and Big Bazaar will ensure that it is replaced or refunded. c. SECURE PAYMENT: It commits to ensure that no payment misuse happens, so we work with banks and payment gateways to ensure that your information is protected. Payments are protected both by it and by the policies of customer’s bank, and the chances of fraud in these channels are actually very low. Big Bazaar openly publishes its office addresses and is part of India’s largest retail company with a presence all over India – so you know how to contact us in person, if required.
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d. OUR SIMPLE 15-DAY RETURN POLICY: If customer has purchased something at Future Bazaar and the product did not meet its expectations or does not fit to his needs, then it can return the product to us; no questions asked, as long as it is in its original packaging and accompanied by its invoice. We will even make the return process simple for you – just contact our customer support and we’ll arrange to pick up the product from your home. Alternately, you can drop it off at the nearest Big Bazaar.
e. PROMPT CUSTOMER SUPPORT: Our customer support is manned by dedicated call centre personnel, who can take decisions and resolve your problems. They are eager to solve your problems and are aware of the processes and means to handle them. In case they cannot solve the problem at their end, they will trigger the required action on your behalf or advise you the best possible method to a successful fulfillment of all your queries/issues. Be assured that when you call us, your call is being taken seriously.
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BIG BAZAAR PROMISES-------
GUARANT E-ED DILIVERY
PROMPT CUSTOMER SUPPORT
15 DAYS RETURN POLICY
BIG BAZAAR
SECURE PAYMENT
MANUFAC T-URER’S WARRANT Y
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4.6. PORTFOLIO MANAGEMENT The Future Group has built a strong portfolio of some of the fastest growing consumer brands in India. This activity is led through Future Brands India Limited, a specialized subsidiary company that was set up to create and build powerful brands that address the aspirations of the new Indian consumer. Some of the key brands in this portfolio include, John Miller, Lombard, Bare, DJ&C, Buffalo and RIG in the fashion and apparel space. Dream line, present in the home segment, offers a wide range of products in kitchenware, bed & bath linen, and Home Décor categories. In the food and home care segment brands include Tasty Treat, Premium Harvest, Fresh & Pure, Care Mate and Clean Mate. In consumer durables and electronics space, the group’s brands include Koryo and Sensei.
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S. M
ADDITIONAL STORE MANAGER
DEPARTMENT MANAGER
SUB- DEPARTMENT MANAGER
TEAM LEADER
TEAM MEMBER
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4.7. PRODUCT LINE Here, one finds over 170,000 products under one roof that cater to every need of a family, making Big Bazaar India’s favorite shopping destination. Where Big Bazaar scores over other stores is its value for money proposition for the Indian customers. Big Bazaar, one finds a huge variety of products to select from with a good price and quality. 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 surprisingly low prices. In recent years, Big Bazaar has adopted value pricing in which they win loyal customers by charging a fairly low price for a high – quality offering. However, consistent low price for the products is not only the universally desired characteristic.
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4.8. MARKETING STRATEGY PROCESS FOLLOWED Segmentation, targeting, and positioning comprise a three stage process. We
together
a. Determine which kinds of customers exist, b. Select which ones we are best off trying to serve, c.
Implement our segmentation by optimizing our products/services for that segment and communicating that we have made the choice to distinguish ourselves that way.
4.8. a. SEGMENTATION: Segmentation involves finding out what kinds of consumers with different needs exist. In the auto market, for example, some consumers demand speed and performance, while others are much more concerned about roominess and safety. In general, it holds true that “You can’t be all things to all people,” and experience has demonstrated that firms that specialize in meeting the needs of one group of consumers over another tend to be more profitable. Several different segmentation:-
kinds
of
variables
can
be
used
for
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1. Demographic variables essentially refer to personal statistics such as income, gender, education, location (rural vs. urban, East vs. West), ethnicity, and family size. Campbell’s soup, for instance, has found that Western U.S. consumers on the average prefer spicier soups—thus, you get a different product in the same cans at the East and West coasts. Facing flat sales of guns in the traditional male dominated market, a manufacturer came out with the Lady Remmington, a more compact, handier gun more attractive to women. Taking this a step farther, it is also possible to segment on lifestyle and values.” 2. Some consumers want to be seen as similar to others, while a different segment wants to stand apart from the crowd. 3. Another basis for segmentation is behavior. Some consumers are “brand loyal”—i.e. they tend to stick with their preferred brands even when a competing one is on sale. Some consumers are “heavy” users while others are “light” users. For example, research conducted by the wine industry shows that some 80% of the product is consumed by 20% of the consumers—presumably a rather intoxicated group. 4. One can also segment on benefits sought, essentially bypassing demographic explanatory variables. Some consumers, for example, like scented soap (a segment likely to be attracted to brands such as Irish Spring), while others prefer the “clean” feeling of unscented soap (the “Ivory” segment). Some consumers use toothpaste primarily to promote oral health, while another segment is more interested in breathe freshening. 4.8. b. TARGETING: 1. In the next step, we decide to target one or more segments. Our choice should generally depend on several factors: First
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How well are existing segments served by other manufacturers? It will be more difficult to appeal to a segment that is already well served than to one whose needs are not currently being served well. Secondly How large is the segment, and how can we expect it to grow? Thirdly Do we have strengths as a company that will help us appeal particularly to one group of consumers?
2. Big Bazaar targets higher and upper middle class customers. 3. The large and growing young working population is a preferred customer segment. 4. Big Bazaar specifically targets working women and home makers who are the primary decision makers. It is part of Big Bazaar’s new Guerrilla Marketing Strategy. 5. Guerrilla force is divided into small groups that selectively attack the target at its weak points. Guerilla marketing is just one of the strategies and surely one can learn a lot from the ongoing battle, especially people interested in marketing/marketing techniques. 4.8.c. POSITIONING:
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Positioning involves implementing our targeting. For example, Apple Computer has chosen to position itself as a maker of user-friendly computers.
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4.8. d. MARKETING MIX Main Aspects of Marketing MiX The easiest way to understand the main aspects of marketing is through its more famous synonym of "4Ps of Marketing". The classification of four Ps of marketing includes marketing strategies of product, price, placement and promotion. The following diagram is helpful in determining the main ingredients of the four Ps in a marketing mix.
PRODUCT: In simpler terms, product includes all features and combination of goods and related services that a company offers to its customers. Product is the most important aspect of marketing mix for two main reasons. First, for manufacturers, products are the market expression of the company's productive capabilities and determine its ability to link with
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consumers. So product policy and strategy are of prime importance to an enterprise, and product decisions dictate the scope and direction of company activity. Moreover, the market indicators such as profits, sales, image, market share, reputation and stature are also dependent on them. Secondly, it is imperative to realize that the product of any organization is both a component and a determinant of the marketing mix as it has a great influence on the other elements of the mix: advertising, personal selling, channels of distribution, physical distribution and pricing. So without proper product policy, a company can not pursue for further elements of marketing mix. PRICING: Pricing is basically setting a specific price for a product or service offered. In a simplistic to the concept of price as the amount of money that customers have to pay to obtain the product. Setting a price is not something simple. Normally it has been taken as a general law that a low price will attract more customers. It is not a valid argument as customers do not respond to price alone; they respond to value so a lower price does not necessarily mean expanded sales if the product is not fulfilling the expectation of the customers Generally pricing strategy under marketing mix analysis is divided into two parts: price determination and price administration (ibid). Price determination is referred to as the processes and activities employed to arrive at a price for a product including consideration of relative prices of products within the same line, and differences in price for similar products of differing grades and qualities.
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Price administration is referred to as the activities involved in fitting basic prices to particular sales situations such as geographic locale, functions performed by customers, position of distribution channel members, or special sales situations.
PLACEMENT: Placement under marketing mix involves all company activities that make the product available to the targeted customer while planning placement strategy under marketing mix analysis, companies consider six different channel decisions including choosing between direct access to customers or involving middlemen, choosing single or multiple channels of distributions, the length of the distribution channel, the types of intermediaries, the numbers of distributors, and which intermediary to use based on the quality and reputation . PROMOTION:
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Promotional strategies include all means through which a company communicates the benefits and values of its products and persuades targeted customers to buy them . The best way to understand promotion is through the concept of the marketing communication process. Promotion is the company strategy to cater for the marketing communication process that requires interaction between two or more people or groups, encompassing senders, messages, media and receivers Limitation of Marketing Mix Analysis (4Ps of Marketing) Despite the fact that marketing mix analysis is used as a synonym for the 4Ps of Marketing, it is criticised on the point that it caters seller's view of market analysis not customers view. To tackle this criticism, attempted to match 4 Ps of marketing with 4 Cs of marketing to address consumer views: Product – Customer Solution Price – Customer Cost Placement – Convenience Promotion – Communication
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4.8. e. RETAIL MIX: Merchandise assortment The company was looking for a solution that would bring all of its businesses and processes together. After a comprehensive evaluation of different options and software companies, the management at Pantaloon decided to go in for SAP. Some of the qualities of SAP retail solutions are that it supports product development, which includes ideation, trend analysis, and collaboration with partners in the supply chain; sourcing and procurement, which involves working with manufacturers to fulfil orders according to strategic merchandising plans and optimise cost, quality, and speed–variables that must be weighted differently as business needs, buying plans, and market demand patterns change; managing the supply chain, which involves handling the logistics of moving finished goods from the source into stores and overseeing global trade and procurement requirements; selling goods across a variety of channels to customers, which requires marketing and brand management; managing mark-downs and capturing customer reactions, analysing data, and using it to optimise the next phase of the design process. 2. Place In the channels of distribution, the physical facilities point of location. 3. Price 4. Visual merchandising
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Visual merchandising supports:a. sales b. retail strategies c. communicates with customers d. communicates image e. supports retailing trends. Visual merchandising includes:1. Interior merchandising Sufficient visual merchandizing within the store that included danglers, signage, standees, distribution of pamphlets, which gave details of the offer. Display, point of purchase, fixture, equipment and furnishings store layout. Product packaging and labels. 2. Exterior merchandising TVC on popular entertainment channels like Star Plus, Sony, Set Max, and Star One. Road shows carried out by the Big Bazaar staff with announcements about the offer to make people aware. Newspaper ads in almost all the local dailies like Sakal, The Times of India, on different days during the period of the offer.
Store atmosphere.
4.8. f. RETAIL PROMOTION MIX
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1. ADVERTISING: Advertising is recognized as an indispensable tool of promotion. It has acquired a lot of significance in the national and international markets. With the advent of globalization and liberalization its imperativeness in the Indian retail sector has increased as a result of competitions, latest technologies, and the rapidly changing consumer lifestyles. a. Objectives of Advertising: The fundamental objective of advertising is to sell something –a product, service, or an idea. The Major Objectives of advertising are: 1. To promote a new product. 2. To warn the public against imitation of the retailer’s product. 3. To manage competition in the market. b. Benefits of
Advertisements:
1. Advertisement helps in creating awareness among the customer about the existence, price, and availability of product. 2. Increases the utility of existing products. 3. It educates customer about new product and their diverse uses. c. Types of advertising: 1. Informative Advertising: Purchases of durable products are generally erratic and
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often too expensive to buy, so the retailer spends a huge amount on informative advertising.
2. Corporate Advertising: Its main motive is to build a corporate image. Corporate Advertising builds up retailer image. It increases goodwill towards the retail organization. 3. Financial Advertising: It refers to advertisements by various financial institutions. Big Bazaar has also tied up with ICICI bank, which provide information about the investment opportunities and the risks and benefits. 4. Classified Advertising: It refers to messages, which are placed under specific headings and columns in various magazines and newspapers. 2. PROMOTION: Promotion can be loosely classified as "above the line" and "below the line" promotion. The promotional activities carried out through mass media like television, radio, newspaper etc. is above the line promotion. The terms 'below-the-line' promotion or communications refers to forms of non-media communication, even non-media advertising. Below-the-line promotions are becoming increasingly important within the communications mix of many companies, not only those involved in fmcg products, but also for industrial goods.
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1. BELOW THE LINE SALES PROMOTION Some of the examples of BTL (below the line) promotions are by exhibitions, sponsorship activities, public relations and sales promotions like giving freebies with goods, trade discounts given to dealers and customers, reduced price offers on products, giving coupons which can be redeemed later etc. Below the line sales promotions are short-term incentives, largely aimed at consumers. With the increasing pressure on the marketing team to achieve communication objectives more efficiently in a limited budget, there has been a need to find out more effective and cost efficient ways to communicate with the target markets. This has led to a shift from the regular media based advertising. Methods of below the line sales promotion:a. Price promotions
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Price promotions are also commonly known as" price discounting". These can be done in two ways:1. A discount to the normal selling price of a product, or more of the product at the normal price. 2. Price promotions however can also have a negative effect by spoiling the brand reputation or just a temporary salesboost (during the discounts). b. Coupons Coupons are very versatile, way of offering a discount. Following are the examples of the use of coupons:-On a pack to encourage repeat purchase -In coupon books sent out in newspapers allowing customers to redeem the coupon at a retailer. -A cut-out coupon as part of an advert. -On the back of till receipts.
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The key objective with a coupon promotion is to maximize the redemption rate – this is the proportion of customers actually using the coupon. It must be ensured when a company uses coupons that the retailers must hold sufficient stock to avoid customer disappointment. Use of coupon promotions is often best for new products or perhaps to encourage sales of existing products that are slowing down. c. Gift with purchase The "gift with purchase" is a very common promotional technique. In this the customer gets something extra along with the normal good purchased. d. Competitions and prizes This is an important tool to increase brand awareness amongst the target consumer. It can be used to boost up sales for temporary period and ensure usage amongst first time users. e. 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. f. Frequent user / loyalty incentives Repeat purchases may be stimulated by frequent user incentives.
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g. Point-of-sale displays A data collection system that electronically receives and stores bar code information derived from a sales transaction. This could the zip codes for library users, facilitating the library in determining geographic market are that users reside in. Most of the big brands are following the suit of BTL promotion because of rising prices of media based promotion, advertising clutter and increased impulse purchasing. BTL promotions are gaining popularity among all big companies nowadays considering their effectiveness because of the "individual customer promotion" at a price, which is much lesser than the normal media promotions. • Low prices on Wednesday Low prices on Wednesday • Concept of Big Day Concept of Big Day • Promotional offers 1. School Jao Khushi Khushi 2. Khushi Ki Barsaat 3. Happy Father’s Day E.g. Big Bazaar's `junk' swap offer Big Bazaar is launching a promotional offer from Saturday, with the slogan, "Bring anything old and take something new". The prices fixed by Big Bazaar are: clothes (Rs 200 per kg), newspaper (Rs 25 per kg), plastics/utensils/leather goods (Rs. 75 per kg), footwear/luggage (Rs. 100 per kg), Pet/beer bottles (Rs 15 per kg), tyres (Rs 50 per kg), furniture (Rs 75 per kg) and others (Rs 20 per kg). "This offer will help the housewife clean out the junk
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while
getting
a
good
value
for
it.
3. PERSONAL SELLING: Persuasive communication between a representative of the company and one or more prospective customers, designed to influence the person's or group's purchase decision. 4. PUBLICITY OF PRODUCT: Publicity non-personal communication in news story form about an organization, its products or both, that is transmitted through a mass medium at no charge. 5. PUBLIC RELATION: Public relations the planned and sustained effort to establish and maintain goodwill and mutual understanding between an organization and its target publics. 6. INTERNAL ATTRIBUTES: a. Envelope Something that envelops; a wrapping. A products wrapping affects a lot on its sale. More customers are attracted if envelope is very attractive. b. Internal layout Methods of display •Visual merchandising
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7. LOGISTICS: Logistics is the art and science of managing and controlling the flow of goods , energy, information and other resources like products, services and people from the source of production to the marketplace. It’s Important to have professional logistical support logistical. The operating responsibility of logistics is the geographical repositioning of raw materials, work in process and finished inventories where required at the lowest cost possible. 8. SUPPLY CHAIN: Supply chain, is a coordinated system of organizations, people, activities, information and resources involved in moving a product or service in physical or virtual manner from supplier to customer. Supply chain activities transform raw materials and components into a finished product that is delivered to the end customer.
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4.9. DISTRIBUTION OF REVENUE EARNER a. Big Bazaar is working to make fashion its largest revenue earner. b. Big Bazaar, the value retailing chain of the Rs 4,500crore Pantaloon Retail, is strategieng to focus specially on ‘fashion retailing’ or its apparel business to boost overall revenues. c. It has created ‘Fashion @ Big Bazaar’, a sub-brand, to position the format as much more than food or general merchandise. d. Big Bazaar is looking at making apparel business its largest revenue generator, as much as 40 per cent in two years and 50 per cent of its overall business, in five years. e. Currently sales of apparel make up almost 30 per cent of Big Bazaar’s revenues, which is next only to its food retailing business that makes up almost 40 per cent. f. However, we will focus on apparel as the margin here is as high as 35 per cent compared to food retailing business where margins are probably 12 per cent. So a slight increase in apparel sales boosts the overall business. Going forward, Big Bazaar plans to rearrange its apparel and fashion merchandise section in stores in terms of design, layout and elbow space. This is expected to ensure better product display in stores keeping with consumer buying habits and convenience. g. Future Group recently clocked over Rs 350crore of sales in five ‘Mahabachat’ days, with sales exceeding Rs 105crore on the last day.
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h. During this time, the largest selling category was apparel. As many as 1lakh jeans were sold and onelakh sarees as well as some 2 lakh t-shirts. i. Some of Big Bazaar’s private labels, like DJ&C and Knighthood, are already big revenue generators, with DJ&C projecting Rs 1,000crore in the next three years, from 600crore right now.
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4.10. COMPETITORS Big bazaar operates in a competitive environment. For each line of business, they face competition from established national and regional companies. In the fashion segment, they probably face competition from Shoppers Stop, Trent and Lifestyle. The hypermarket business is relatively new, being just about three to four years old in the country. Big bazaar faces competition from the likes of RPG (Spencer’s), Trent (Star India Bazaar) and with Shoppers Stop too indicating their entry into the hypermarket segment. In the Food business, Big Bazaar faces competition from Subhiksha, Food World to name a few.
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a. RPG GROUP:
Spencer & CompanyLimited is another large retail group in the country withsupermarkets,music stores, and the beauty and health chain—Health & Glow. Food world, operated by Food World Supermarkets Limited, while Health &Glow by the RPG Group. It is also Planning IPO, will have 450plus Music World, 50-plus Spencer's Hyper covering 4 mn sq.ft by 2010.
b.KRAHEJA’S DEPARTMENTSTORE CHAIN:
K Raheja’s Shoppers Stop, is the second largest retailer in the country and became in retailing operation an Indian success story. It also acquired the Crossword chain of bookstores. It Operates Shoppers Stop, Crossword, In orbit Mall, and 'Home Stop' formats. Will operate 55 hyper city hypermarkets with US$100 million sales across India by 2015.
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c.SUBHIKSHA SUPERMARKET:
Subhiksha was immensely popular in the South, particularly in Chennai, where it sold groceries and pharmaceutical products below the MRP. It expected to earn a total turnover of Rs 1,200 crore in 200809 as it planned to expand outside Tamil Nadu and Pondicherry. It planned for 550 stores in the next five years.
d. RELIANCE RETAIL:
Investing Rs.30000 crore ($6.67 billion) in setting up multiple retail formats with expected sales of Rs.90,000 crore-plus ($20 billion) by 2009-10.
e. LIFESTYLE:
Investing Rs.400 crore-plus ($90 mn) in next five years on Max Hypermarkets & value retail stores, home and lifestyle centers.
f. PIRAMYD RETAIL:
Aiming to occupy 1.75 million sq.ft retail space through 150 stores in next five years.
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g. TATA GROUP:
Tata Group has two retailing companies; Trent Limited, headed by Noel Tata, which owns Westside, Star Bazaar and Landmark retail brands and Tata Infiniti, headed by Krishna Kumar, which owns Croma brand. Trent Ltd, he retail arm of the Tata Group, has drawn up a Rs 2,000 crore investment plan for setting up 50 hypermarkets — Star Bazaar — over the next five years. Tata Ceramics Limited, which manufactures a wide range of ceramic products like flatware ceramics (Dinner plate, Dessert plate, Saucer) and hollowware ceramics (Vegetable Dish, Oatmeal, Sugar Pot, Creamer, Coffee/Tea Cups and Pots, Salad Bowl etc.) in plain as well as fluted shapes, under the brand name of CERA, launched its first exclusive branded store in Pune . Tata Ceramics, which achieved sales of Rs 35crore last year, is looking at adding another Rs 12 crore from domestic sales in
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4.11. MAJOR PROBLEMS
a. Retailing is in a rapid state of change due to speedy technological developments, changing competitive positions, varying consumer behaviors as well as their expectations and liberalized regulatory environment. In such a scenario, information is crucial to plan and control profitable retail businesses and it can be an important source of competitive advantage so long as it is affordable and readily available.
b. In west, retail businesses have been the early adopters of Information Technology (IT). As there is a need to capture accurate information and make it available not only within the store but send it to warehouse, distributors and manufacturers in real time to manage the short shelf life of some goods in grocery sector and costs of inventory, varied DSS tools have been adopted by organized retailers. VMIs- vendor managed inventory systems, Scanner at the counters- point of sales systems, RFID- radio frequency identification, OLAP (online analytical processing), supply chain management systems, forecasting systems, CRMcustomer relationship management systems, ERPenterprise resource performance system etc. are the tools used by organized retailers in developed nations.
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c. Most retailers collect and have access to huge amount of data, collected from day to day operations e.g. customer loyalty data, retail store sales and merchandise data, demographic projection data etc. Currently retailers are data rich but information poor. There is a great potential to develop systems that enable analysts and decision makers to manage, explore, analyze, synthesize and present data in a meaningful manner for decisions.
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4.12. FUTURE PROSPECTS
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a. Big bazaars have two AMC’s. One that specializes in Property and the other is a ‘Consumer India Fund’. The property fund aims at sourcing high quality property at the lowest possible rates, while the consumer fund will look at providing our retail pipeline and expertise to national and regional brands, thereby enabling them with a wider coverage. b. Though they have secured 30% of modern retail space coming up in the next three years, our endeavour is to keep evolving with the young Indian consumer. As regards mind share, we want all our store formats to capture the imagination of the target customer. c. The future will also see the pantaloon of several new concepts targeted at the Indian consumer. Further, retail development will not just occur in Tier 1 cities, but will have far more significance in Tier 2 & 3 cities as well. The consumption drive would be fueled in smaller towns and cities. d. There would be definite customer responsiveness towards Value Added products and services in the next few years. Since value retailing touches the mass of the population, and with organized retailing at about US $ 300 billion at present, value retailing has the scope to almost double. e. Retail chain Big Bazaar (Mumbai) plans to open 15 more stores by November end, some of them in new markets, at an investment of Rs 1,500-1,600 crore.
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f. Big Bazaar is targeting a network of 145 stores by June 2009.They have zeroed in on several new and existing markets for the 15 stores that they plan to open by endNovember. The investment will be in the range of Rs 1,500-1,600 crore. g. The stores would be set up in places such as Mysore, Pune, Cuttack, Kolkata, Chandigarh, Agra, Faridabad, Surat, Nashik, Mumbai, Delhi and Solapur, adding that in some locations two stores would be opened. h. The retail chain would be extending its footprint into new markets such as Mysore, Cuttack, Chandigarh, Faridabad and Solapur. i. Big bazaar will focus onShoppertainment: It will be a convergence of shopping, entertainment and eating. Shopping and entertainment together called Shoppertainment is targeted at the family. It’s more than just shopping. • E-tailing: Is the selling of retail goods on the Internet. Short for “electronic retailing”. The term seems to be almost inevitable addition to e-mail, e-business, and ecommerce. It is synonymous with business-toconsumer (B2C) transaction.
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j. News related big bazaar, which is expected to generate revenue of $1 billion in the fiscal 2007-08. Big Bazaar is a hypermarket format of the Pantaloon Retail (India) Ltd. The Group expects to increase its revenues to $7-8 billion by 2011, of which Big Bazaar is expected to contribute a large chunk of around $4 billion. It has emerged as the largest retail format of Future Group's retail division. “Currently they have more than 80 Big Bazaars and we are planning to scale it up to 160 by the year that the company was going to go very aggressive in rolling out the Big Bazaar formats, the total floor area by 2011 would scale up to 30 million square feet from the present figure of 10 million square feet. k. “The consumer electronics segment is doing extremely well,” he said, elaborating that the group was expecting the segment to generate revenue of Rs 2,000 crore by next year. l. Future Group plans to have 300 stores and has projected revenues of Rs 13,000 crore by 2011. m. Total income has increased to Rs 1,381.44 crore for the quarter ended June 2008 from Rs 1,037.42 crore for the quarter ended June 2007, posting a 33.16 jump.
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n. The company said in a statement that it has posted a net profit of Rs 125.97 crore for the year ended June 2008 against Rs 119.99 crore for the year ended June 2007. o. Its total income has increased to Rs 5,052.67 crore for the year ended June 2008 from Rs 3,328.77 crore during the last fiscal. The Group posted a consolidated net profit of Rs 21.93 crore for the year ended June 2008 as compared to Rs 35.54 crore for the year ended June 2007. p. However, its total income has increased from Rs 3,565.48 crore for the year ended June 2007 to Rs 5,866.50 crore for the year ended June 2008.
5. WORK ASSIGNED BY THE COMPANY 5.1 BUSINESS OBJECTIVE: To increase footfalls and enhance sales by: a. Attracting customers by giving them various offers. b. Inculcating in their minds the value for money through these offers. c. Increasing the average consumption of existing customers.
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5.2 OPERATING THE SCHEME: a. All Category provided offers well in advance. b. I.T uploaded the offers one day in advance and rechecked them. c. V.M also did splendid job by putting the required offer signage’s and also decorated the store as per the SS3D theme. d. HR managed the shift time of employee; Snaks were arranged for the staff. e. SM, ASM, DM, ADM-Planned and managed micro analysis of targets and staff was done by taking department wise meeting.
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5.3 WORKING…….. 5.3.1. TO KNOW CONSUMER BEHAVIOR TOWARDS SCHEME:
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Ready to eat
Housewives,families, individuals.
Chef zone
Housewives, families
Chill station
Housewives, individuals
Staples
Families, housewives
Vegetables
Families, housewives
67
Non food items
Families, housewives
68
On the basis of demographic factors
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AGE
INCOME
PREFERENCES/HABBITS
Adolescent
Do not earn
Fond of spending on eating out, etc
Youth
Mostly
Brand conscious, product conscious.
Age (35-45)
Good income Good spenders, they like rate upgrading their households gadgets.
Age (45-60)
People at the Spend less peek of their careers
(New age teens)
70
Above 60
Steady income
Spend only on households.
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BUYING PROCESS a. NEED RECOGNITION: The customer first points out the things which he need. His good part of income is spend on things of his daily requirement. b. INFORMATION SEARCH: Before purchasing of a product, customer research internally and externally. Internally-retrieving information about similar purchase made earlier, decision about choice criteria, brand included, or advertisement related to the product. Externallysource such as family, friends, commercial sources, etc. c. EVALUATION OF ALTERNATIVES: Before, purchasing customer looks for the alternatives of that product. Customer goes for good quality in cheapest rate. d. PURCHASES: Purchaser many times faces cognitive dissonance which arises due to uncertainty of making right decision. This is because choice of one product often means rejection of attractive features of the alternatives.
e. AFTER PURCHASE EVALUATION:
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Customer by using the product comes to know about the real value of product.
CONCLUSION: It should be considered that big bazaar targets every class. Thus we know that different people have different thinking style. Most of their buying decisions or his behavior depends on his:a. PERCEPTION: Perception is the process by which a customer makes sense of information that he receives. Therefore, it is to be tried that customer receives the right information about every product and about its scheme, because a single error in communication to customer can create confusion to him and he may not buy the product. b. LEARNING: It is the change in the content or organization of long time memory and is a result of information processing. Thus company should try to hit the customer’s memory. I.e. Company should have good impression on the memory of the customer. As this memory acts as a internal information source in the decision making process. c. MOTIVATION: Motivation helps a lot to maintain loyal customers. A customer is loyal only when he sees any extra benefits. Thus discounts, free gifts, free coupons, etc such schemes motivate them a lot. Many times, good quality of the product, reasonable prices, packaging, etc also works as motivational tool.
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d. PERSONALITY: Personality can be of many types as introvert-extrovert, sociable-loner, and competitive-cooperative. Brand personality is the characterization of brands as perceived by customers. Brand may be as ‘for young’ like branded jeans of Levi’s, Lee, Woodland, etc. Big bazaar also target same concept. e. CUSTOMER LOYALITY AND PROFITABILITY: Relationship between loyalty and profitability should be decided on the basis of loyal customers that are really profitable for company. The loyal customers are believed to be cost less to serve, they are willing to pay more than other customers and act as a word- of- mouth promoters for the company. It is believed that one sure way to earn greater profits is to win loyalty of customers. 5.3.2. TO GET THE RIGHT POSITIONING DONE OF THE PRODUCT UNDER SCHEME: It is the customer’s beliefs about the company’s product being of, say, high quality, or low price, or durable, etc. Thus it is very necessary that product should be according to the customers need. It should not be damaged, in store product should be given open facing. For pack of two the products were given alternate 4 facing. I.e., one row of single and other row of double.
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5.3.3. TO MAINTAIN STOCK ON THE FLOOR: In retail stores less stock is maintained. This stock on other hand is sufficient enough to fulfill the demand of that vary product in store. To know the exact amount to be maintained on floor it is very necessary to know:a. Product facing b. Capability to maintain stock in warehouse c. Demand of the product. d. Profit margin on the product. 5.3.4. TO UPDATE THE PRICES: Pack of two was the new scheme, so its prices to be get changed on rem for those products whose prices have changed by the producing company. The work was to report DM or team leader about the increase in prices and get it updated on rem so that discount could be given accordingly. 5.3.5. DISCOUNT CRITERION: a. The discount was given on the scheme of pack of two. b. The discount was 1/4th on the profit of the retail company. c. I. e if the company is getting profit of rs10 on a product, whose mrp is 100. d. Then after discount it is sold at rs97.5 in the store. 5.3.6. INVENTORY CONTROL: Since inventory represents cost, managers seek stock minimization. To always have in stock every conceivable
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item that a customer might order would normally be prohibitively expensive for companies marketing many items. One solution is to separate items into those that are in high demand and those that are is slow moving. Two related inventory decisions are knowing when and how much to order so that stocks are replenished. This is because there is a lead time between ordering and receiving inventory, and there should not be stock out as the company is waiting for the order items to arrive. The more variable the lead time and higher will be the safety or buffer stock that the company will be required to keep to prevent a stock out. At the store (Lucknow) I saw this problem many times with many of the products. The stock order placed should be more in the starting of the month as at that time customer’s purchasing power is more. But I usually saw that order placed was somewhat same throughout the month due to which there was stock out in some of the items in food.
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HOW TO WORK ON BARCODE TENDER: Barcodes are the labels which shows price of product after giving the discount on that product. Bar tender is the software by which we use to take out the bar codes. Process:a. To select items according to their EAN numbers Include for export exit enter. b. No. of quantity
done.
c. now go to next program of print
select the items; ok
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6. SURVEY
6.1 SURVEY ANALYSIS 1. Total people surveyed-90 2. Total people who responded well-72 a. Surveyed :1. Men: 22 2. Women: 30 3. Youngsters: 18 4. Children: 8 5. Old aged: 12
Men Women Youngs Childern Old age
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b. Marital status:1. Married: 74
2. Unmarried: 16
Married Unmarried
c. Occupation:1. Student: 20 2. Business: 38 3. Service: 27
40 35 30 25 No. of 20 Person 15 10 5 0
Student Bussiness Service Any other
Student
Bussiness
Service
Anyother
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d. Income group: 1. 0-10000: 20 2. 10000-20000: 24 3. 20000-30000: 28 4. More than 30000: 18
30 25 20 No.of Person 15
10 5 0
e. Is your home: 1. A single family house: 55 2. Two family house: 25 3. Single: 10
0-10000 10000-20000 20000-30000 more than 30000
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Single family house Two family house single
f.
Indicate activities/interests which you and/or household members enjoy on a regular basis:
1. Bicycling/running: 1 2. Dieting: 25 3. Crafts: 5 4. Foreign travel: 15 5. Gourmet/fine food: 45 6. Fashion clothing: 40 7. Bible/devotional reading: 12 8. Physical fitness/exercise: 69 9. Stereo/records and tapes: 14 10. Art/antiques: 8 11. Outdoor gardening: 35 12. Wildlife/environment issues: 40 13. Health foods/vitamins: 70 14. Money making opportunities: 50
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15. Book reading: 24 16. Self improvement: 45 17. Watching sports on TV: 40 18. Charities/volunteer work: 16 19. Other: 12
82 bicycling
dieting
craft
foreign travel
fine food
fashion clothing
devotional reading
physical fitness
tapes/records
art
outdoor gardening
w ildlife
health foods
m oney making
book reading
self im provem ent
w atching sports
charities
others
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CONCLUSION FROM SURVEY ANALYSIS a. Men and women both are responsive this shows that they have interest in the products either they buy or not. They have good knowledge about the product they buy. b. Women are very careful about what they buy but sometimes men tend to ignore some of the features of product. c. Women are more attracted and keen to know about the schemes, discounts, gifts, etc on product. d. People have multiple life style and people have interest in music, fitness, health, dieting, health food, vitamin rich products, and fashion clothing. e. Women, children, youngsters, aged people frequently make visit to stores. f. People of single family and apartment family are frequent customers. g. People of middle class and upper middle class are frequent customers and they spend good amount of their income.
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6.2 TREND ANALYSIS a. how often you used this product before the scheme? 1. Everyday: 49 2. More than once a week: 21 3. Once a week: 20
everyday m ore than once a w eek once a w eek
b. How often do you use products from this [SERVICE CATEGORY] 1. Every day: 55 2. More than once a week: 29 3. Once a week: 6
Every day
Once a w eek
More than once a w eek
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CONCLUSION FROM TREND ANALYSIS Trend analysis shows that consumption rate of the products was good, as the products were mainly daily used products. Earlier the rate of using of product was less in comparision, after the scheme. 6.3 CONJOINT ANALYSIS a. Stores are conveniently located:1. Very Strongly Agree: 20 2. Strongly Agree: 28 3. Agree: 27 4. Disagree: 15 30
very strongly agree
25 strongly agree
20 15
agree 10 5
disagree
0 very strongly agree
strongly agree
agree
disagree
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b.
Store atmosphere appealing:-
and
decor
are
1. Strongly Agree: 29 2. Agree: 40 3. Disagree: 21
strongly agree agree disagree
c. A good selection of products was present. 1. Strongly Agree: 24 2. Agree: 55 3. Disagree: 11
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strongly agree agree disagree
d. (Store) has the lowest prices in the area:1. Strongly Agree: 30 2. Agree: 45 3. Disagree: 15
No of Person
45 40 35 30 25 20 15 10 5 0
Strongly agree
Agree
Disagree
Strongly agree
Agree
Disagree
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e. Merchandise sold is of the highest quality:1. Strongly Agree: 26 2. Agree: 52 3. Disagree: 12
Strongly agree
Agree
disagree
f. Merchandise displays are attractive:1. Strongly Agree: 9 2. Agree: 69 3. Disagree: 12
Strongly agree
80 60
Agree
No.of person 40
20 0
Disagree Strongly agree
Agree
Disagree
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g. Advertised merchandise was in stock:1. Strongly Agree: 14 2. Agree: 67 3. Disagree: 9
Strongly agree
Agree
Disagree
h. Overall, I am very satisfied with the store:1. Strongly Agree: 55 2. Agree: 30 3. Disagree: 5
90
Strongly agree
60 50
agree
40 No.of 30 Person 20
disagree
10 0
Stronglyagree
agree
disagree
i. I am very satisfied with the price I paid for what I bought:1. Strongly Agree: 34 2. Agree: 53 3. Disagree: 3
strongly agree agree disagree
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j. I am very satisfied with the merchandise I bought:1. Strongly Agree: 12 2. Agree: 70 3. Disagree: 8
strongly agree agree disagree Slice 4
Select the rating that best describes how you feel about [PACK OF TWO SCHEMES]. k. Quality:1. Strongly Agree: 30 2. Agree: 28 3. Disagree: 15 4. Disagree Strongly: 15 5. Very Strongly Disagree: 2
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Strongly agree
30 Agree
25 20 No.of Person
Disagree
15 Disagree strongly
10 5 0
Very strongly disagree Strongly Agree Disagree Disagree Very agree strongly strongly disagree
l. Price and Discount:1. Strongly Agree: 18 2. Agree: 60 3. Disagree: 12
Strongly agree Agree Disagree
m. How interested would you be in using the product in this scheme:1. Not at all interested: 0 2. Not very interested: 3 3. Neutral: 2
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4. Somewhat interested: 25 5. Extremely interested: 50 6. Not sure: 10
No.of Person
50 45 40 35 30 25 20 15 10 5 0
Not at all Not very interested Netural Somew hat interested Extrem ely intrested Not sure
Notatall
Notvery interested
Netural
Somewhat Extremely interested intrested
Notsure
n. Overall, how interested are you in buying this service:1. Not at all interested: 0 2. Not very interested: 5 3. Neither interested nor uninterested: 22 4. somewhat interested: 18 5. Extremely interested: 45
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Not at all int. 45 40 35 30
Not very interested Neither int.nor unint
25
No.of Person
20 15 10
Somewhat interested Extremely intrested
5 0
CONCLUSION FROM CONJOINT ANALYSIS People are satisfied with the store locations. There is good rating in favour of atmosphere, décor and quality of product offered to customer in exchange of the reasonable prices. People have shown their keen interest towards the products in scheme. They say that for them any discount is good if the product is of their utility. Customers are interested to buy the products again and again of the scheme.
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7.
GENERAL SURVEY AND BEHAVIOR ANALYSIS FOR SCHEME OF PACK OF TWO
CONSUMER THE NEW
a.
Do you find the choices according to your preference:-
in
biscuits
1. Very Strongly Agree: 20 2. Strongly Agree: 32 3. Agree: 23 4. Disagree: 15
very strongly agree strongly agree agree disagree
b. Biscuits most preferredBritannia:1. Britannia gday butter: 32 2. Britannia gday pista: 16 3. Britannia gday cashew: 20 4. Britannia jim jam: 55 5.Britannia crm treat bourbon 32
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60 50 gday butter
40
gday pista gday cashew jim jam bourbon
30 20 10 0 gday butter
gday pista
gday cashew
jim jam bourbon
c. Parle:1. Parle hide n seek choco chips (200g): 24 2. Parle hide n seek choco (100g): 61 3. Parle bourbon cream (200g): 45 4. Parle digestive (176g): 34 5. Parle krack-jack (240g): 21 6. Parle glucose (220g): 50
hide&seek(200g) 2nd Qtr bourbon(200g) digestive(176g) krack-jack(240g) glucose(200g)
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d. Maggi preffered most:1. Maggi noodle masala (380g): 35 2. Maggi noodle masala (570gm): 30 3. Maggi noodle masala (760g): 32 4. Maggi noodle vegetable atta (360g): 24 5.Maggi noodle rice chilli chow (332g): 8 maggi noodle msla(380g) 570g 760g veg atta noodle(360g) rice chilli chow
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e. Mtr products:1. MTR dessertmix badam drink (220g): 11 2. MTR dessertmix gulab jamun mix (200g):10 3. MTR payasam kheer (220g): 60 4. MTR readymeal suji upma: 16 5. MTR snackmix dosa mix (500g): 12 6. MTR snackmix rava dosa (500g): 19 7. MTR snackmix rava idli (500g): 6 8. MTR snackmix uttappam (500g): 15 mtr badam drink(220g) mtr gulab jamun mtr payasam kheer mtr suji upma mtr dosa mix mtr rava dosa mtr rava idli mtr uttappam
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CONCLUSION Maggi showed a good response day by day but those like Chili Chow, Lemon masala, Rice shahi pulao was not up to satisfactory demand. Mtr Badam drink, Gulab jamun, Rava idli, Dosa mix were less in demand may be due to season. Mtr Payasam kheer showed outstanding demand. Parle hide n seek (100g), Digestive, Bourbon, krack jack were in good demand in families. These were like combination of chocolate, lite, salty biscuits. Digestive was preferred by health conscious customers mainly. Britannia Jim jam and Bourbon were preferred by children, and pista, butter; cashew also provided a great choice in ready to eat section. Nestle chocolates Kit Kat of 34g, 99g were in good demand. Red label tea nature care ct 2*250g, Tata tea gold and premium 2*500gm should continue because their demand was increasing slowly. Bikano Alu Bhujia and Bikaneri bhujia should be continued as affordable prices for all customers. It is competing Haldiram and many local made, so it will take some time for it to raise a remarkable demand.
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Some of the products which can be considered for sale set. Britannia nutri digestive (small pack)-focuses all health conscious and old age which are in good percentage. So it can be considered or scheme. Mohan’s corn flakes (liked by all class people and in budget). No offer on Sunfeast products which targets children in their advertisements. Private label products were very reasonable and very affordable and were in good demand but there was good number of damage also from the brand in tasty treat instant noodles masala (400g). There is private label honey also, of very reasonable rate, for its promotion can we have it in any scheme?
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SUGGESTIONS MARKETING OBJECTIVE Target is placement of all merchandising units across the market in a months time Create Identity in a Short Span Offering a wide range Reach every nook & corner Distinct Approach ( Innovative & Differentiated products) Constant connection through technology High level of transparancy Pricepressure from webshops Changed orientation and purchase behaviour
Shift your loyalty! From Push tool to Pull platform Producer Retail Consumer EXPERIENCE SOCIAL RETAILING ORGANISED SERVICE INFORMED PRODUCT CONNECTED MATERIAL CONSUMER
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Providing social tools and platforms around products and services to create better informed and better organised buying behaviour. Giving away design Giving away assortment Give away marketing Augmented Reality ORGANIZED RETAILING (i)
(ii) (iii) (iv)
promote quality employment; improve business process practices; spur investments in support industries; and enable the modernization of the fragmented traditional retail industry.
Modern retail business focuses on maximizing customer footfalls and capturing rising volume and share of the customer wallet. While the competition strategy is largely price focused, the model works by:
(i) (ii)
(iii) (iv)
improving sourcing efficiencies; expanding product assortment; differentiating service; and enhancing the store ambience. Thus, there are four drivers of modern retail’s “one-stop shopping model”:price, product, service, and ambience
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The main objective of these studies is to understand how these firms are:
(i) (ii)
(iii) (v)
penetrating markets; introducing formats and product categories; operating the end-to-end value chain; (iv) pricing different products; and capturing customer footfalls.
It helps to: (i) (ii) (iii)
attain critical mass; economies of scope in sourcing by accruing costs across stores; and reach out to consumers in the local neighbourhood locations
BENEFITS OF ORGANIZED RETAILING PRODUCT MARGIN Modern retail penetration and consumer adoption in the apparel and clothing category is the highest. An organized retailer gets an average of 30 per cent gross margin or above on MRP across women’s wear, gents’ wear, and kids’ wear on branded labels. In the case of private labels of store brands, clothing margins are higher than 60 per cent typically. In the food and grocery section across hypermarket, supermarket, and discount store formats, grocery covers
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around 45 per cent of store space in FMCG and staple food products. As regards fresh fruit and vegetables, however the store level penetration is low compared to other categories for various reasons: (i) high wastage; (ii) lack of temperaturecontrolled isles; and (iii) low profit margins in bulk produce (potatoes, tomatoes, and onions). In addition, the customer adoption rate is also low in fresh fruit and vegetables because of its daily need-based requirement and the distance factor. Nevertheless, fruit and seasonal vegetables are higher profit-margin produce: fruit sell at 40 per cent margin on the cost price, and seasonal and exotic vegetables around 30 per cent above the cost price. Across the fruit and vegetable section, the net profit gain is between 8 per cent and 10 per cent on an average. As a result, organized retail firms are strategizing convenience format stores up to 2,000 sq. ft. area in order to penetrate the local neighborhood markets. MARKET PENETRATION STRATEGY:Large retailers are heading for a pyramidal approach by launching several small-sized neighborhood convenience stores in tandem with a few large hypermarket or department store formats. This strategy is beneficial to large retail firms because they can absorb supply-chain costs across formats. Further, bulk purchases enable them to squeeze profit margin from suppliers. However, the local traditional retailers in the nearby locations feel more intense competition. The product mix in the hypermarket format is typically 60 per cent food and 40 per cent non-food. The format incorporates a larger share of apparel, grocery products in staples, and FMCG goods, of which the share of apparel
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merchandize is 30 per cent. Fruit and vegetables, mobile phones, alcohol-based beverages and pharmaceutical electronics and household durable product categories encompass a much smaller share. Another dominant format used by modern retailers includes the department and speciality stores focusing primarily in clothing, cosmetics, artificial jewelry and watches, and household durables. The discount and convenience formats largely concentrate on fruit and vegetables and grocery products. Gradually, the organized retail value chain would prefer to lean towards the direct procurement approach in order to reduce the cost of the middleman. The direct procurement model benefits modern retailers for the following reasons: (i) maximizing its gains on large volume transactions; (ii) implementing store brand promotional schemes; and (iii) minimizing the operational cost. In the case of FMCG and staple products, the firms procure primarily from large suppliers for branded products and small suppliers for store brand private labels. As regards apparel, a mix of large and small suppliers supply directly for private labels. Currently, the modern retailers work on a commissionbased margin with branded suppliers as opposed to the slotting-fee position where a manufacturer or supplier gets shelf space by paying a certain fee structure. By having commission-based direct contract terms with branded suppliers, retailers are able to arrange various promotional schemes in order to attract customer footfalls to their stores and secure discounted price on bulk purchase. This business tactic is particularly disadvantageous to the
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traditional retailers because their volume demand is very small and is primarily on credit payments. EMPLOYMENT GENERATION: Finally, but most importantly, the employment generated by organized retail is building a quality labour class that is gaining vocational training in skilled and unskilled jobs at the graduate and tenth class level Foreseeing the demand for trained staff, leading organized retailers are creating their captive human resources pool through internal training and programmes and tie-ups with retail management schools.
COMPETITORS STRATEGY:
Subhiksha Value Low-price high-volume strategy: by keeping no fancy frills front-end and by becoming an intermediary at the back end, Subhiksha leverages on discounted prices on bulk purchases and cash payments. Trent Limited Lifestyle & Value Single- brand strategy: leverages on high margins in private labels, and targets consumers in socio-economic class B and C. ITC Choupal Sagar & Choupal Fresh Value
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Backward integration through IT-based business model: leverages by building direct relationship with the supply source, the farmers, to sell as well as purchase products and services. Spencer’s Retail Value The “duck and the duckling” model: by having two- or three- value segment stores, backed by a cluster of smallsized Fresh, Daily, and Express stores, to leverage on economies of scale at back-end value chain. NDDB: Mother Dairy Value Operates on a co-operative model with the objective of increasing farmers’ welfare. Has a strong presence in Delhi’s NCR region. Strategically located in residential areas and follows a lowprice strategy for fruit and vegetables.
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8. CONCLUSION If this project proves to be of any usefulness to the reader then I will be very proud of it, that all the hard work done by my faculty and me has been fruitfull. Above all, I hope to have shown my reader that the answer of their questions on the working of the company and its maketing stategies which made it a retail giant and capture the big part of the market. how ever it is difficult to know about a company but training provided to me helped me a lot to know the retail store and consumers behavior to a great extent. i came to know how a consumer reacts to
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every action made by retail to pursue them with their promotional and marketing strategies. This project helped me to clear my else doubts and step over the boundaries of confusion and querries with reference to retail store and helped to be more focused and helped me a lot to understand the concepts in my studies.
9. BIBLOGRAPHY BOOKS: KOTLER PHILLIP,KELLER KELVIN Marketing Management, Pataparganj, Delhi, Dorling Kindersley(India)Pvt.Ltd , 2007, “74 to 80”, “164 to 170”, “200 to 203”, “205 to 208”,”231 to 236”, “245 to 264”. KUMAR ARUN AND MEENAKSHI N
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Marketing Management, Naraina, New Delhi, Excel Books Pvt. Ltd.,2008, “11 to 14”,”29 to 31”, “70 to 75”, “82 to 98”, “103 to 104”,”112 to 115”, “126 to 128”, “218 to 229”, “232 to 233”. INTERNET: www.yorku.ca/rkenedy/critical_skills/student/nick_ashby_p pt_prestns/how_to_write_an_introduction.ppt+how+to+writ e+introduction&hl www.livemint.com/Big-Bazaar-plans-to-open-15-st. www.financialexpress.com/news/Future-Group-to-hive-offBig-Bazaar/ www.fibre2fashion.com/face2face/pantaloon/kishorebiyani. asp www.thehindubusinessline.com/iw/2005/12/25/stories/
http://www.domainb.com/companies/companies_f/future_group/20080930_fu ture_group
10. ANNEXTURE Annexure SURVEY QUESTIONNAIRES 1. Tick the option you fall in:a.
women
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b. c. d. e.
children youngsters men old age
2. Does the big bazaar match consumer expectation or are they just making empty promises? a. b.
yes no
3. Marital status:a. b.
married unmarried
4. Occupation:a. b. c. d.
students business service others
5. Income group:a. b. c. d.
0-10,000 10,000-15,000 15,000-20,000 more than 20,000
6. Your family is:-
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a. b. c. d.
single family joint family bachelor others
7. You use the products in offer:a. b. c.
every day more than once in a week once a week
8. Is the store conveniently located? a. b. c.
strongly agree agree disagree
9. What about store environment? a. b. c.
very good good average
10. Do you find variety in products? a. b. c.
strongly agree agree disagree
11. What do you think about quality of the products?
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a. b. c.
very good good average
12. Do you like the way products are displayed? a. b. c.
very attractive attractive average
13. How do you come to know about the schemes? a. b. c. d. e.
reference group newspapers sales promotions pamphlets distributed paging in store
14. Are you satisfied with the products in store? a. b. c.
yes no no comments
15. Are you happy with the schemes and discounts? a. b. c.
strongly agree agree disagree
16. How much interested are you in using products? a.
not at all interested
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b. c. d. e.
not very interested neutral somewhat interested not sure
17. Which of the following product you like to take? a. b. c. d. e.
Britannia g-day butter Britannia g-day cashew Britannia g-day pista Britannia jim- jam Britannia cream treat bourbon
18. PARLE PRODUCTS:1. 2. 3. 4. 5. 6.
Parle hide n seek choco chips(200g) Parle hide n seek choco (100g) Parle bourbon cream(200g) Parle digestive (176g) Parle krack-jack (240g) Parle glucose (1kg)
19. MAGGI NOODLES:1. 2. 3. 4. 5.
Maggi noodle masala(380g) Maggi noodle masala(570gm) Maggi noodle masala(760g) Maggi noodle vegetable atta(360g) Maggi noodle rice chilli chow(332g)
20. MTR products 1.
MTR dessertmix badam drink(220g)
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2. 3. 4. 5. 6. 7. 8.
MTR dessertmix gulab jamun mix(200g) MTR payasam kheer(220g) MTR readymeal suji upma MTR snackmix dosa mix(500g) MTR snackmix rava dosa (500g) MTR snackmix rava idli(500g) MTR snackmix uttappam(500g)
21. ACT II 1. 2. 3. 4. 5. 6.
Mix butr (99g) Mix butr lover(99g) Mix Butr pepper(60g) Mix chilli surprise(70g) Mix classic salted(70g) Mix golden sizzle(70g)
22. AMUL PRODUCTS:1. 2. 3. 4. 5. 6. 7.
Amul butr(500g) Butr lite(500g) Cheese chiplet(200g) Cheese lite(500g) Cheese slice(200g) Cheese tn(400g) Lite spread tub(200g)
23.BAMBINO 1. 2. 3.
Macroni (900g) Macroni elbow (450g) Pasta penne (500g)
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4. 5. 6. 7. 8.
Pasta spiral (500g) Vermicelli macr elstx (950g) Vermicelli roasted (950g) Vermicelli sc (1kg) Vermicelli sc ( 450g)
24. NESTLE PRODUCTS:1. 2. 3. 4. 5. 6. 7.
Coffee classic box (200g) Coffee classic jar (50g) Coffee classic pp (50g) Coffee jar (100g) Kit Kat (99g) Kit Kat (34g) Chocolate munch (102g)
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Thank you
