big bazaar customer perception

Customer perception a study at Big Bazaar

INTRODUCTION

Introduction to retail market:

Today’s retail market is facing their toughest competition, that Big Bazaar can outperform

the competition. If they can move from a product and sales philosophy to a marketing

philosophy. The Big Bazaar can go about winning customers and outperforming competitors

by performing a better job of meeting and perceiving customers needs.

The ultimate success of any marketing programme depends upon how the customer

behaves and weathers his/her behaviour is indicated of the acceptance of the product or

service offering from the firms.

Today even Big Bazaar is pouring in a lot of money for undertaking researches to

have a better understanding of their customer perception.

Marketing process begins with customers and ends with customers. It means

marketing process aims at delivering maximum perception to customer. In doing so, it takes

care about purchase perception with the loyalty of the customer.

Marketing is responsible for driving the rest of the Big Bazaar to be customers

oriented and market drives customers care without them, the Big Bazaar ceases to exist.

Plans must be laid to acquire and keep customer and because of many malls affect customer

perception. Many of which lie outside the scope of marketing department such as delivery,

reliability, sales process after sales service. Big Bazaar must work hard to ensure that it

delivers as per customer expectations the service required by them. Customer’s expectations

are increasing day by day in case of products life. Products, which are used for daily

purpose, involves complex decision making. After sales, service is important in winning the

confidence of the customer. Every customer wants to enjoy full benefits of a purchase over

the excepted life of the product. To ensure this, Big Bazaar effort towards customer

perception is very important.

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INDUSTRY PROFILE

In India, the retail sector is the second largest employer after agriculture. The retailing

sector in India is highly fragmented and consists of predominantly of small, independent, and

owner-managed shops. The organised retail sector in India is only 2%. The Proportion of

sales through organised retailing is estimated to increase to around 6% by 2010. There are

some 12 million retail outlets in India; the retail business in India is expected to reach

Rs.19069.3 billion by 2010.

Over 50 of the Fortune 500 and 25 of the Asian top 200 companies are retailers.Retail

is India’s largest industry; it contributes for over 10 per cent of the country’s GDP and

around eight per cent of the employment. Retail industry in India is at the crossroads. It has

emerged as one of the most dynamic and fast paced` industries with several players entering

the market. But because of the heavy initial investments required, break even is difficult to

achieve and many of these players have not tasted success so far. However, the future is

promising; the market is growing, government policies are becoming more favorable and

emerging technologies are facilitating opertaions.Retailing in India is gradually inching its

way toward becoming the next boom industry. The whole concept of shopping has altered in

terms of format and consumer buying behavior, ushering in a revolution in shopping in India.

Modern retail has entered India as seen in sprawling shopping centers, multi-storied malls

and huge complexes offer shopping, entertainment and food all under one roof. The Indian

retailing sector is at an inflection point where the growth of organized retailing and growth in

the consumption by the Indian population is going to take a higher growth trajectory. The

Indian population is witnessing a significant change in its demographics. A large young

working population with median age of 24 years, nuclear families in urban areas, along with

increasing working women population an emerging opportunities in the services sector are

going to be the key growth drivers of the organized retail sector in India. According to this

year’s Global Retail Development Index, India is positioned as the leading destination for


Customer perception a study at Big Bazaarretail investment. This followed from the saturation in eastern retail markets and we find big

western retilers like Wal-mart and Tesco entering into Indian market. India’s retail industry

accounts for 10 percent of its GDP and 8 percent of the Employment to reach $17 billion by

2010. There are about 300 new malls, 1.500 supermarkets and 325 departmental

stores being in the cities very soon. A shopping revolution is ushering in India where, a large

population between 20-34 age groups in the urban regions is boosting demand by 11.1

percent in recent years to an Rs 23,308 purchasing power. This has resaulted in huge

international retail investment and a more liberal FDI.

India represents an economic opportunity on a massive scale, both as a global base

and as a domestic market. Indian Retail sector consists of small family-owned stores, located

in residential areas, with a shop floor of less than 500 square feet. At present the organized

sector accounts for only 2 to 4% of the total market although this is expected to rise by 20%

to 25% year on year basis.

Retail growth in the coming five years is expected to be stronger than GDP growth,

driven by changing lifestyles and by strong income growth, which in turn will be supported

by favorable demographic patterns and the extent to which organized retailers succeed in

reaching lower down scale to reach potential consumers towards the bottom of the consumer

pyramid. Growing consumer credit will also help in boosting consumer demand.

The structure of retailing will also develop rapidly. Shopping malls are becoming

increasingly common in large cities, and announced development plans project at least 150

new shopping malls by 2012. The number of department stores is growing much faster than

overall retail, at an annual 24%. Supermarkets have been taking an increasing share of

general food and grocery trade over the last two decades.

However, Distribution continues to imporve, but it still remains a major inefficiency. Poor

quality of infrastructure, coupled with poor quality of the distrubtion sector, results in

logistics costs that are very high as a proportion of GDP, and inventories, which have to be

maintained at an unusually high level. Distribution and marketing is a huge cost in Indian


Customer perception a study at Big Bazaarconsumer markets. It’s a lot easier to cut manufacturing costs than it is to cut distribution

and marketing costs. Also, government has relaxed regulatory controls on foreign direct

investment (FDI) considerably in recent years, while retailing currently remains closed top

FDI. However, the Indian government has indicated in 2005 that liberalization of direct

investment retailing is under active consideration. It has allowed 51% FDI in “Single Brand”

Retail. The next cycle of change in Indian consumer markets will be the arrival of foreign

players in consumer retailing. Although FDI remains highly restricted in retailing, most

companies believe that will not be for long. Indian companies know Indian markets better,

but foreign players will come in and challenge the locals by sheer cash power, the power to

drive down prices. India’s vast middle class and its untapped market are the key attractions

for the foreign players by changing lifestyle and strong income growth.

Retail reform

The government regulations allow 100 percent FDI in cash and carry through automatic route

and 51 percent in single brand. Besides, the franchise route is available for big operators.

Now, the Government also proposes further liberalization in the retail sector allowing 51

percent FDI in consumer electronics and sports goods.

The retail road ahead

The Indian retail market is estimated at US$ 350 billion. But organized retail is

estimated at only US$ 8 billion. However, the opportunity is huge—by 2010, organized

retail is expected to grow to US$ 22 billion. With the growth of organized retiling estimated

at 40 percent (CAGR) over the next few years, Indian retiling is clearly at a tipping point.

India is currently the ninth largest retail market in the world. And it is names of small towns

like Dehardun, Vijayawada, Lucknow and Nasik that will power India up the ranking soon.

The main competition for the organized retail industry which at this point of time is

2%-4% comes from the unorganized sector. But this scenario is going to change in the

future. The existing players in the market such as LandMark, TATA group, Pantaloon group,

RPG group are trying to strengthen thier market. Where as the new entrants like the Reliance


Customer perception a study at Big Bazaargroup which is trying to enter the market in the most aggressive manner and the some others

include the Bharti group with the tie up with the Wal-Mart.

As the markets open up for the multi brand retiling then the competition from the

unorganized sector will reduce gradually and the competition among the organized sector

will become intense. So in the coming years the retailing is going to drive the economy by

Providing employment in a huge magnitude and thus becoming the major contributor to the

GDP of the country. As the western markets are saturated the big global players in retailing

are eyeing India, for the other reasons such as growing middle class population and

increasing awareness and other changes in the life styles and shopping patterns. At present

all the formats are not yet being practicewd in full fledge, once the formats are defined and

retailer’s rollover in full fledges then the patterns will evolve and will be practiced in a

proper manner. So in the next five to seven years the industry is going to be intense as big

players are entering and eyeing the huge untapped market.

Major Competitors:

1) RPG Group—Spencer’s

2) Reliance Retail

3) Vishal Group

4) Tata Group

5) Aditya Birla group

Reliance Fresh is the retiul chain division of Relaince Industries of India which is headed by

Mukesh Ambani. Reliance plans to invest Rs 25000 Crores in the next 4 years in their retail

division and plans to begin retail stores in 784 cities across the country.

The Reliance Fresh supermarket chain is RIL’s Rs 2500 crore venture and it plans to add

more stores across different, and eventually have a pan- India footprint by year 2011.


Customer perception a study at Big BazaarVishal Mega Mart is a conglomerate encompassing 100 showroom in 67 cities / 20 states.

RPG Group is planning to double its total retailing space from the existing level of 10 lakh

sq.ft. Within the next 18 months.

Retailing encompasses the business activities involved in selling goods and services to

consumers for their personal, family, or household use. It includes every sale to the final

consumer.

Characteristics of retailing:

Retailing can be distinguished in various ways from other businesses such as manufacturing.

Retailing differs from manufacturing in the following ways:

There is direct end-user interaction in retailing.

It is the only point in the value chain to provide a platform for promotions.

Sales at the retail level are generally in smaller unit sizes.

Location is a critical factor in retail business.

In most retail businesses services are as important as core products.

There are a larger numbers of retail units compared to other members of the value

chain. This occurs primarily to meet the requirements of geographical coverage and

population density.

For Effective Retail Marketing Strategy we need to focus on……

Maintaining consistent branding across different channels.

Optimizing the media mix.

A Partner to support Marketing Strategies & promotions.


Customer perception a study at Big Bazaar Use of Effective Campaign Management Techniques.

Managing the relationship with the customers.

Increasing the brands share of usage within a household

Classification of Retail Operations:

Ownership:-

Independent Retailers

Chain Stores

Franchises

Level of Service:-

Types of Stores and Their Characteristics:-

Hypermarket:-

A hypermarket is a superstore which combines a supermarket and a department store. The

result is a gigantic retail facility which carries an enormous range of products under one roof,

including full lines of groceries and general merchandise. When they are planned,

constructed, and executed correctly, a consumer can ideally satisfy all of his or her routine

weekly shopping needs in one trip to the hypermarket. Hypermarkets, like other big-box

stores, typically have business models focusing on high-volume, low-margin sales. Due to

their large footprints — a typical Wal-Mart Supercenter covers 150,000 square feet, a typical

Carrefour 210,000 square feet — and the need for many shoppers to carry large quantities of

goods, many hypermarkets choose suburban or out-of-town locations that are easily

accessible by automobile.


http://en.wikipedia.org/wiki/Carrefour

http://en.wikipedia.org/wiki/Wal-Mart

http://en.wikipedia.org/wiki/Big-box_store

http://en.wikipedia.org/wiki/Big-box_store

http://en.wikipedia.org/wiki/General_merchandise

http://en.wikipedia.org/wiki/Groceries

http://en.wikipedia.org/wiki/Department_store

http://en.wikipedia.org/wiki/Supermarket

http://en.wikipedia.org/wiki/Superstore


Statement of the problem:

‘A Study on customer perception towards Big Bazaar’

It is important for any company to know how customer perceives their products, service or

the organization as a whole. The understanding of customer’s perception is a very difficult

and vital task for the organization. If the organization makes an attempt to find the customer

perception, it is easy to offer the service according to customers.

OBJECTIVES OF STUDY

1. To know the frequency of the customer visiting the stores

2. To understand the customer profile of Big Bazaar.

3. To know the factor influencing the customer purchase decision

4. To know the customer perception towards Big Bazaar


Customer perception a study at Big Bazaar5. To know overall satisfaction of customer.

SCOPE OF STUDY

The scope of the study is limited only to the customers of Big Bazaar (Mysore road)

This study helps to know the perception of customers towards Big Bazaar. The study helps to

know the customer satisfaction level.

Period of study:

The study was undertaken during the period of 2011 from 28 thJanuary 2011 to 28

Feb. 2011, a total of 4 weeks.

RESEARCH METHODOLOGY

The word ‘method’ indicates the mode or the way of accomplishing an objective. The study

was description type of research as it describes the current market situation.

Sampling:-

Sampling is simple process of learning about the population on the basis of a sample

drawn from it. Thus, in sampling technique instead of every unit of universe only a part of

universe is studied and the conclusions are drawn on the basis for the entire universe.

Sample design

In this study simple random sampling method is used to select the respondents.


Customer perception a study at Big BazaarSimple random sampling refers to sampling technique in which each an every unit of

the population has an equal opportunity of being related in the sample.

Sample size

The total sample size for the study was 100 respondents.

SOURCES OF DATA

There are two types of data collection methods that are being used in this research:

a) Primary data

b) Secondary data

Collection of primary data:

Primary data is that type of data which includes the first hand information which is being

collected from the respondents through observation or through direct communication with

respondents in one form or another or through personal interviews. In this research personal

interviews were conducted to get primary data.

Collection of secondary data

The secondary data includes data from various external and internal sources of

the organisation.


Customer perception a study at Big BazaarPLAN OF ACTION

Planning the study

Devising the question and making the questionnaire

Selecting the type of sample

Using the questionnaire to obtain the information

Organizing the data

Making the finished tables and charts

Analyzing the findings

Tools for data collection

The tool used for collecting the data is a structured questionnaire.

Tools used for Analysis:

Percentage analysis

Bar charts/pie chart

Limitation of the study:

The limitations of this research are:

1. The opinion of the respondent visiting the store may not represent the whole

population.

2. Due to the limitation of time, it was unable to cover larger base of respondent

where in sample was limited.

3. The customer opinion might have been biased and may not represent the whole

population opinion.


Customer perception a study at Big Bazaar4. Most of the customer was busy in shopping they were reluctant to fill the

questionnaire.

5. Analysis and interpretation of date obtained from the questionnaire was done on the

assumption that the data given by the customer was correct and honest.

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


Customer perception a study at Big BazaarBazaar, 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, bazaar 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. Pantaloon Retail is the flagship company of

Future Group, a business group catering to the entire Indian consumption space. Pantaloon is

not just an organization - it is an institution, a centre of learning & development. We believe

that knowledge is the only weapon at our disposal and our quest for it is focused, systematic

and unwavering. At Pantaloon, we take pride in challenging conventions and thinking out of

the box, in travelling on the road less travelled. Our corporate doctrine ‘Rewrite Rules,

Retain Values’ is derived from this spirit. Over the years, the company has accelerated

growth through its ability to lead change. A number of its pioneering concepts have now

emerged as industry standards. For instance, the company integrated backwards into

garment manufacturing even as it expanded its retail presence at the front end, well before

any other Indian retail company attempted this. It was the first to introduce the concept of

the retail departmental store for the entire family through Pantaloons in 1997. The company

was the first to launch a hypermarket in India with Big Bazaar, a large discount store that it

commissioned in Kolkata in October 2001. And the company introduced the country to the

Food Bazaar, a unique 'bazaar' within a hypermarket, which was launched in July 2002 in

Mumbai. Embracing our leadership value, the company launched all in July 2005 in

Mumbai, making us the first retailer in India to open a fashion store for plus size men and

women. Today we are the fastest growing retail company in India. The number of stores is

going to increase many folds year on year along with the new formats coming up. The way


Customer perception a study at Big Bazaarwe work is distinctly "Pantaloon". Our courage to dream and to turn our dreams into reality

– that change people’s lives, is our biggest advantage. Pantaloon is an invitation to join a

place where there are no boundaries to what you can achieve. It means never having to stop

asking questions; it means never having to stop raising the bar. It is an opportunity to take

risks, and it is this passion that makes our dreams a reality. Come enter a world where we

promise you good days and bad days, but never a dull moment!

Future Group 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 General 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,

Generally, 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.

Future Group’s vision is to, “deliver Everything, Everywhere, Every time to Every Indian

Consumer in the most profitable manner.” The group considers ‘Indian-ness’ as a core value

and its corporate credo is- Rewrite rules, Retain values.



Mr. Kishore Biyani

Managing Director (FUTURE GROUP)

Major Milestones/ Achievements

1987 Company incorporated as Men’s Wear Private Limited. Launch of Pantaloons trouser,

India’s first formal trouser brand.

1991 Launch of BARE, the Indian jeans brand.

1992 Initial public offer (IPO) was made in the month of May.

1994 The Pantaloon Shoppe – exclusive menswear store in franchisee format launched

across the nation. The company starts the distribution of branded garments through multi-


Customer perception a study at Big Bazaarbrand retail outlets across the nation.

1995 John Miller – Formal shirt brand launched.

1997 Pantaloons – India’s family store launched in Kolkata.

2001 Big Bazaar, ‘Is se sasta aur accha kahi nahin’ - India’s first hypermarket chain launched.

2002 Food Bazaar, the supermarket chain is launched.

2004 Central – ‘Shop, Eat, Celebrate in the Heart of Our City’ - India’s first seamless mall is launched in Bangalore.

2005 Fashion Station - the popular fashion chain is launched a LL– ‘a little larger’ - exclusive stores for plus-size individuals is launched

2006 Future Capital Holdings, the company’s financial arm launches real estate funds Kshitij and Horizon and private equity fund in division. Plans forays into insurance and consumer credit.

Multiple retail formats including Collections, Furniture Bazaar, and Shoe Factory, E-Zone, Depot and futurebazaar.com are launched across the nation. Group enters into joint venture agreements with ETAM Group.

2007 Pantaloon Retail wins the International Retailer of the Year at US-based National Retail Federation convention in New York and Emerging Retailer of the Year award at the World Retail Congress held in Barcelona.

2008 Future Capital Holdings becomes the second group company to make a successful Initial Public Offering in the Indian capital markets.

Big Bazaar crosses the 100-store mark, marking one of the fastest ever expansion of a hypermarket format anywhere in the world. Total operational retail space crosses 10 million square feet mark.

2009 CNBC Awaaz Consumer Awards 2009 Most Preferred Multi Product Chain - Big Bazaar Most Preferred Multi Brand Food & Beverage Chain - Big Bazaar

Images Fashion Forum 2009 Most Admired Fashion Group of the Year - Future Group


Customer perception a study at Big BazaarMost Admired Private Label - Pantaloons, the lifestyle format Critics Choice for Pioneering

Effort in Retail Concept Creation - Central

Coca-Cola Golden Spoon Awards 2009

Most Admired Food & Grocery Retailer of the Year

Most Admired Food Court, Most Admired Food Professional



Our culture At Pantaloon, Empowerment is what you acquire and Freedom at Work is what you get. We

believe our most valuable assets are our People. Young in spirit, adventurous in action,

within average age of 27 years, our skilled & qualified professionals work in an environment

where change is the only constant. Powered by the desire to create path-breaking practices

and held together by values, work in this people intensive industry is driven by softer issues.

In our world, making a difference to Customers’ lives is a Passion and performance is the

key that makes it possible. Out of the Box thinking has become a way of life at Pantaloon

and living with the change, a habit. Leadership is a value that is followed by one and all at

Pantaloon. Leadership is the quality that motivates us to never stop learning, stretching to

reach the next challenge, knowing that we will be rewarded along the way. In the quest of

creating an Indian model of retailing, Pantaloon has taken initiatives to launch many retail

formats that have come headed for serve as a benchmark in the industry. Believing in

leadership has given us the optimism to change and be successful at it. We do not predict the

future, but create it. At Pantaloon you will get an opportunity to handle multiple

responsibilities, and therein, the grooming to play a larger role in the future. Work is a unique

mix of preserving our core Indian values and yet providing customers with a service, on par

with international standards. At Pantaloon you will work with some of the brightest people

from different spheres of industry. We believe it’s a place where you can live your dreams

and pursue a career that reflects your skills and passions.



New discoveries in retail

In the financial year 2006-07, the company’s retail businesses discovered new categories

across formats, new sets of consumers and fresher and contemporary merchandise. We have

been able to offer more in the established businesses and gain favourable acceptance with

new concepts. In addition, concerted expansion plans saw retail space increase to over 5.2

million square feet at the end of 2006-07. This expansion mode was characterized by a two

pronged approach. By dominating the cities the company was already present in and by

bringing the benefits of modern retail to towns and cities like Mangalore, Palakkad, Surat,

Indore, Kanpur, Haldia, Agra, Coimbatore, Jaipur and Panipat. The company has also

undertaken significant private label initiatives in food, in general merchandise and in the

consumer durables and electronics Categories. Strategic alliances have also been forged with

established domestic and international brands. However, the most significant development

was the internal realignment the company undertook within each of its retail businesses. To

embark on a more detailed approach towards value creation and increasing efficiency, the

company reviewed its business operations and adopted a more focused approach by creating

an integrated support unit or Line of Business.Augmenting the retail front-end team, Line of

Business (Lob) units have been created in the three most critical businesses – food, fashion

and general merchandise. Formed during the second half of 2006-07 these business units

focus on introducing optimum operational efficiencies. Thus, these units ensure that back -

end measures are appropriately taken care of and the right kind of merchandise reaches the


Customer perception a study at Big Bazaarstores in the best possible time, at the right price. These teams focus on product consolidation

and suitability, margin improvement, and vendor rationalization, thereby ensuring that the

sourcing benefits are made available to the front - end team. The company’s efforts over the

next couple of years would entail a combination of expansion and process up gradation and

implementation.The emphasis will be on the next discoveries to be made in the retail space

that will lead to expansion. At the same time, there will be an increased focus on micro

detailing aspects including process, product and operational efficiencies thereby contributing

positively to the company’s bottom-line.



Discovering fresh fashion

It was the first Pantaloons store in Kolkata that set off a chain of discoveries that have led us

to where we are today. Ten years later, we have launched our largest Pantaloons store in

Kankurgachi in Kolkata. Spread across 85,000 square feet, the store is the first among a

series of large format stores that will be launched across the nation. After consolidating its

Fresh Fashion positioning, Pantaloons embarked on a major expansion during the year 2006-

07. In 8 cities, 11 Pantaloons stores were opened with 7 of them opening in the single month

of March 2007. The total count of Pantaloons stores as on 30th June 2007 stood at 31 with

the total area under retail close to 1 million square feet. In order to maintain the top of the

mind association with fashion in India, Pantaloons continued to be the title sponsor for the


Customer perception a study at Big BazaarFemina Miss India 2007 pageant. In addition, Bipasha Basu and Zayed Khan were roped in

as brand ambassadors in the month of August 2006. The success of this initiative was evident

in the increased sales for the ‘Haldi Gulal’ range as well as the ‘Svayam Utsav’ summer

collection that were endorsed by Bipasha and Zayed. The private label apparel share during

the year was in excess of 70 percent. The year also witnessed categories like Winter-wear

and Ethnic Ladies-wear strengthening their presence in the stores. The increasing success of

the store brand is evident from the fact that the store’s loyalty programme, Green Card,

added 200,000 new members.Pantaloons will see a significant expansion during the coming

year with an increase of nearly 0.50 million square feet of retail space and an addition of

about 15 stores. Pantaloons will look at dominating cities where it has a first entrant

advantage and will scale up sizeably with larger stores, additional categories and retail

formats. The year 2007-08 will witness considerable focus in the North and East regions.

Delhi and the NCR area along with Punjab, Chandigarh and Ludhiana will see the next stage

of expansion. Cities like Ranchi, Guwahati and Siliguri in the East will also discover Fresh

Fashion.

Discovering more value


Customer perception a study at Big BazaarIn 2006-2007, more Indians discovered the value of shopping in Big Bazaar. And with the

launch of each store, we discovered more value in terms of operational efficiency. Big

Bazaar launched 27 new stores in 22 cities, covering over 1.40 million square feet. As of

June 2007, there were 56 Big Bazaar stores across 43 cities. While Big Bazaar continued to

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

Allahabad, Coimbatore, Surat, Panipat, Palakkad, Kanpur and Kolhapur.The year under

review also witnessed realigning of business teams with shared Experience in category

management, sourcing, front-end operations and business planning. In addition, separate

teams have been formed to look into all aspects of new store launches and to manage mature

stores. This provides more flexibility and focus in expansion plans.

The increase in SKUs in existing categories and the introduction of new categories

encouraged the opening of larger stores or Super Centres, measuring 100,000 square feet or

more. There are now 5 Big Bazaar Super Centres. Considering this scale of expansion,

technology plays a significant facilitating role. The introduction of SAP in 2005-06 and its

roll out during the year positively impacted the business. Big Bazaar has initiated the process

of Auto Replenishments Systems, thus improving operational efficiencies and productivity.

The company has also rationalized nearly 250 vendors through better vendor management in

terms of potential to expand, and for inclusion and up gradation to the online B2B platform.

The company plans to open over 60 stores across India in FY 2008, and the opening of the

100th Big Bazaar store will mark the fastest ever expansion by a hypermarket format.

Discovering the new consumer



Based on the company’s in-house consumer data and research, and in cognizance with

observations on customer movements and the shopping convenience factor, Food Bazaar has

initiated certain refurbishments and layout design across all stores. The intention is to

continuously change with the times and demands of the evolving Indian consumer. Food

Bazaar also witnessed healthy expansion during the year 2006-07, making its presence felt in

nearly 26 cities and adding 40 stores during the year under review. The total count of Food

Bazaars as on 30th June 2007 stood at 86 stores. The year under review witnessed the

company’s private label programme gaining significant traction. The brands have been very

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

scored better than national or international players in certain categories. The shares of private

labels as a percentage of total Food Bazaar revenues has increased significantly and comprise

nearly 50 merchandise categories.While Fresh & Pure brand entered categories like cheese

slices, frozen peas, honey, packaged drinking water and packaged tea, the Tasty Treat brand

received a very favourable response in new categories like namkeens and wafers. In the

home care category, Caremate launched aluminium foil and baby diapers while clean mate

launched detergent bars and scrubbers. A new format ‘BB Wholesale Club’ was launched

and 4 such stores have been opened so far. To be managed by Food Bazaar from the ensuing

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

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

has also forged tie-ups with established companies like ITC, Adanis, DCM Group, USAID

and other farm groups in Maharashtra and Madhya Pradesh to source directly from them.


Customer perception a study at Big BazaarThese alliances are expected to drive efficiencies as well as bring better products to

consumers. By the end of FY 07-08, the total number of Food Bazaar stores is expected to be

200.

Future ideas

Discovering new opportunities

Future Ideas is the Innovation, Design & Incubation cell within Pantaloon Retail that stems

from the core proposition - ‘Protecting and preserving the soul of a small business or

enterprise within a large organisation.’ Future Ideas deals with the whole aspect of idea

creation, scenario planning activities, alternate approaches to an issue, providing varied

outcomes and solutions to a problem and handholding the activity till its success parameters

are satisfied. A unique initiative in corporate India, Future Ideas rests on a tripod that can be

classified as Innovation driven, Design Management approach and an Incubation chamber,

each with its own uniqueness, yet with common objectives. The Design Management team

looks at each observation made by the Innovation team, and brainstorms by using a

collaborative and holistic approach. The resultant ideas are then nurtured within the

Incubation cell. The Incubation team comprises of business teams, mentored by the

Innovation and Design teams. They are people who are released from their original

businesses or concepts and made part of the entire ideation process at Future Ideas. They


Customer perception a study at Big Bazaarremain at Future Ideas till project completion stage when the success parameters for running

the business are met.Future Ideas draws inspiration for most of its activities and projects,

keeping in mind the new genre of inspirational Indians. At any point of time Future Ideas

would work on about 20 varied projects within the Future Group. Some of the formats that

are now being incubated by this team include Top10, Depot, Star & Sitara and Talwalkars’

Fit & Active. The team is also working on ideas around small format no-frills stores, rural

retailing, and fashion for the masses and on projects involving women and self-help groups.

Discovering new segments

Depot, in many cities, is the first modern retailer in books and music and the Response has

been overwhelming. The core differentiators of Depot are its young, colourful and vibrant

stores, strong regional range, affordability and a private label publishing program - Depot

Exclusives. In its first year of operation, Depot has launched 6 stand-alone stores and 50 cut-

ins. Along with its expansion in major cities, Depot debuted in smaller towns like Rajkot,

Vadodara, Haldia, Thrissur, Palakkad and Tiruvanantharam. The Depot Exclusives (released

solely in Depot) catalogue expanded rapidly with over 100 titles across genres like children’s

books, cookery, regional literature etc. Reputed authors/ imprints like Nita Mehta and

Sanjeev Kapoor in cookery, Disney in children’s books etc., have been associated with the

company. Depot has also tied-up with the UK based publisher of Children’s books, Small

World, to co-publish a series of toddlers’ interactive books. In FY 2007-08, the total Depot

footprint should cross over 100 stores. The Health, Beauty & Wellness business opened 35


Customer perception a study at Big Bazaarnew outlets in the beauty products, services and holistic health care formats Multiple formats

operate in this segment, including Tulsi, the pharmacy chain and Star & Sitara, the beauty

products cut-ins and Star & Sitara Salons. The largest format, Beauty Free offers unique

combination of products, services and holistic health offerings.To capture the increasing

consumption spend on wellness and preventive health care, the joint venture between

Pantaloon Retail (I) Limited and Talwalkar Better Value Fitness opened its first ‘Talwalkars

Fit & Active’ health centre at Orchid City Centre, Mumbai in April 2007. Spread over 5,200

square feet, it is the country’s first health centre to offer health, fitness and gym services

within a modern retail and consumption environment.The venture is also looking at

innovative value added offerings in the fitness space as well as developing a Spa model for

the Fit & Active brand across the country, by increasing its presence to nearly 50 such

centres in the near future.

Human Resources

Discovering talent diversity

The company strongly believes that its sustainable competitive advantage lies in the values

that it cherishes the culture that it imbibes and spirit of enterprise that resides within the

organization. Talent management therefore continues to be the core focus for the company.

Considering the Multiple businesses and rapid expansion expected across the business, the

company saw merit in taking a fresh guard to the way in which business would run in order

to meet the next leg of expansions. During the year 2006-07, the company conducted an

extensive review of in-house talent management, which involved mapping every managerial

position in the organization for their skill sets, competence and attitudinal aspects as well as

taking an inventory check of the existing talent base and addressing their development needs.

Development Centres were created with in-house assessors, which further aided in

identifying potential resources and helped chalk out post assessment development plans.

Continuing with its policy of strategic alliances, the company is collaborating on joint degree

programs with 15 management schools, design institutes and institutes of higher learning in

areas like food business, supply chain management, design experience management etc. This


Customer perception a study at Big Bazaar‘Seekho’ programme for external and internal candidates has ensured a steady stream of mid

level, well trained retail professionals every year.The company’s ‘Gurukool’ programme

provides the front-end employees an opportunity to imbibe the company’s values and a sense

of ownership to the company. The company has also created an Employee Growth Trust

Fund that was launched during the last financial year for the senior management.

Equal Opportunity

The company believes that in order to build a sustainable business environment, the

composition of its talent base needs to reflect the diversity that exists in our country and

among its customers. Therefore the company ensures that the proportional representation of

different communities in the Indian population is mirrored in its employee profile. The

majority of employees in the company come from socially and economically marginalized

sections of the society. Close to 46% of the employees in the organization are women and the

average age within the organization is 27 years.The effectiveness of its talent management

initiatives is reflected in the fact that the annual rate of attrition is 8.12%, much below

industry levels. The company plans to strengthen its employee platform to about 30,000

people by FY 08, from nearly 18,000 people as on FY 07.

Human Resource Initiatives

Pantaloon Retail believes that one of its sustainable competitive advantages will continue to

be the people who are part of the organization. Being in service industry, the Company

Places a lot of focus is placed on attracting, and training, incentivising and retaining talent.

The vision is "To provide an environment that creates happy people who have a meaningful

life and add value to business and society." With over 18000 employees at an average age of

27 years, the Company prides itself on being a young and energetic organization, driven

through the 'The Pantaloon People Management System'. This is Built on 5 pillars of


Customer perception a study at Big Bazaarpeople based growth, namely - Culture Building, Performance Management through

Balanced Scorecard, People Processes, Management Processes and Leadership Brilliance.

Training A competent Learning & Development Team is responsible for training employees

at all the levels across the country, focusing on primary and secondary research into various

aspects of retail and assessment of training needs across Knowledge, Skills & Attitude areas.

The emphasis is on creating product and process knowledge through well defined programs

like Praarambh and Parikrama. For the critical front line staff, the Company's unique

outbound residential training program Gurukool focuses on integrating the mind, body and

soul and brings about measurable attitudinal and behavioural changes.The program has

covered nearly 4,500 employees. The SMILE initiative for training of new Store Manager's

has been created and disseminated to over 100 store managers by this team

Group Vision

Future Group shall deliver Everything, Everywhere, Every time for Every Indian

Consumer in the most profitable manner.

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.

Core Values

Indian ness: Confidence in ourselves.

Leadership: To be a leader, both in thought and business.


Customer perception a study at Big BazaarRespect & Humility: To respect every individual and be humble in our conduct.

Introspection: Leading to purposeful thinking.

Openness: To be open and receptive to new ideas, knowledge and information.

Valuing and Nurturing Relationships: To build 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.

ANALYSIS OF DATA

Table No.1.1:-Showing classification of respondents based on which source they

Come to know about Big Bazaar.


Customer perception a study at Big BazaarParticulars No of respondent % Of Respondent

News papers. 49 49

Magazines. 10 10

Friends/word of mouth 25 25

Internet 3 3

Other 13 13

Total 100 100

Analysis:-

From the above table it is clear that majority of the respondents came to know

about Big Bazaar with the help of News Papers. This shows that Big Bazaar is giving

importance for advertisement to attract customers.

Chart-1.1:-Respondents based on which sources they come to know about Big

Bazaar:-

Table No 1.2:- Showing frequency of customer visiting stores

Particulars No of respondent % Of Respondent

Twice in a week 13 13


Customer perception a study at Big BazaarOnce in a week 18 18

Once in a fortnight 22 22

Once in a month 17 17

Special occasion 24 24

First time 06 06

Total 100 100

Analysis:-

From the above table maximum no. of respondents visited the stores in special

occasion. This shows that Big Bazaar is giving discounts or offers during festivals and

public holidays.

Chart-1.2:-Frequency of customer visit Big Bazaar:-

Table No1.3:- Showing classification of customers with whom they would like to shop.


Customer perception a study at Big BazaarParticulars No of respondent % Of Respondent

Alone 12 12

with friends 38 38

With family 44 44

With spouse 06 06

Any others 00 00

Analysis:-

From the above table it is found that majority of respondents like to do shopping in

Big Bazaar with family rather than visiting with friends. This shows that they are

maintaining good environment.

Chart-1.3: showing the customers with whom they would like shop:-


Customer perception a study at Big BazaarTable No 1.4:- showing classification of respondents based on distance from

Big Bazaar to their residence.

Particulars No of respondent % Of Respondent

Less than 1km 10 10

1-3 Km 38 38

3-5 Km 43 43

More Than 5 Km 09 09

Total 100 100

Analysis:-

From the above table it shows that majority of respondents have their residence

near to Big Bazaar. So they are visiting frequently and get all the products in one place.

Chart-1.4:-The respondents based on distance from Big Bazaar to their residence:-



Table No 1.5:- Showing opinion of respondent about prices of products in big bazaar

when compared to other retail stores.

Particulars No of respondent % of respondent

High 46 46

Affordable 39 39

Low 15 15

Total 100 100

Analysis:-

From the above table it is clear that maximum no.of respondents said that the price

of products in Big Bazaar is high when compared to other retail stores.

Chart-1.5:-The opinion of respondent about prices of products in big bazaar

when compared to other retail stores.

Hence majority of customers have the favourable opinion towards Big Bazaar prices.



Table No1.6:-Showing no of respondent’s rate the product quality of big bazaar

when compared to other retail stores


5 8 8

4 25 25

3 51 51

2 10 10

1 6 6

Total 100 100

Analysis:-

From the above table it is said that more no. of respondents experienced that

quality of products in Big Bazaar is average when compared to other retail stores.

Chart-1.6:-No of respondent’s rate the product quality of big bazaar when compared

to other retail stores:



Table No1.7:-Showing comparison of brand big bazaar with other retail stores


Value for money 26 26

Quality of products 12 12

Wide variety of product 37 37

Good shopping experience 14 14

Any other 1 1

Total 100 100

Analysis:-

From the above table it is clear that majority of respondents said that wide

variety of products are more when compared to other retail stores. This shows that Big

Bazaar is giving importance to more number of brands when compared to other retail

stores.

Chart-1.7:-Comparison of brand big bazaar with other retail stores:



Table No 1.8:-Showing opinion about discount offered by the Big Bazaar when

compared to other retailers.


Very good 5 5

Good 34 34

Fair 55 55

Satisfied 6 6

Bad 00 00

Total 100 100

Analysis:

From the above table it shows that maximum number of respondents said the

discount offered by Big Bazaar was fair when compared to other retailers. This shows

that Big Bazaar is giving importance to price to attract customers.

Chart-1.8:-Opinion about discount offered by the Big Bazaar when compared to

other retailers:-



Table No 1.9:- Showing no of respondent purchasing product in Big Bazaar.


Apparels &Accessories 21 21

Food & Beverages 31 31

Home durables 8 8

Electronic goods 24 24

Personal care &Cosmetics 10 10

All of the above 6 6

Total 100 100

Analysis:-

From the above table it is clear that majority of respondents said food and

beverages were purchased more when compared to other item. This shows that Big

Bazaar is giving importance to food and beverages when compared to other items.

Chart-1.9:-No of respondent purchasing product in Big Bazaar:



Table No 2:-Showing no of respondent are satisfied with the billing system of big

bazaar.


Yes 56 56

No 14 14

Need to be improved 30 30

Total 100 100

Analysis:

From the above table it shows that maximum number of respondents said that the

billing system of Big Bazaar is satisfied but it needs to be improvement. Billing counter

should be increased.


Customer perception a study at Big BazaarChart-2:- No of respondent are satisfied with the billing system of big

bazaar:-

Table No 2.1:-Showing composition of factors in which they will shop in big bazaar


Availability of products 40 40

Convenience of location 14 14

Shopping experience 18 18

Reasonable price 25 25

Parking facility 3 3

Other 00 00

Total 100 100

Analysis:-

From the above table it shows that majority of respondents said that the

availability of products is more when compared to other composition. This shows that


Customer perception a study at Big Bazaarthey are giving more importance for products rather than location, price and parking

facility.

Chart-2.1:-Composition of factors in which they will shop in big bazaar:-

Table No 2.2:- Showing composition of factors influencing the respondent purchasing

decision.


Price 23 23

Quality 30 30

Brand 22 22

Usage 25 25

Any other 00 00

Total 100 100

Analysis: -


Customer perception a study at Big Bazaar From the above table it is clear that maximum number of respondents said that the

quality of products is good when it comes to the matter of purchasing decision. This

shows that product quality is tested and other factors are not justified.

Chart-2.3:-Composition of factors influencing the respondent purchasing decision:-

Table No 2.3:- Showing no of respondent satisfied with service of a big bazaar.


5 3 3

4 29 29

3 42 42

2 16 16

1 10 10

Total 100 100

Analysis:-


Customer perception a study at Big Bazaar From the above table it is clear that majority of the respondents are highly

satisfied with the service provided by Big Bazaar. This shows that Big Bazaar is providing

good service.

Chart-2.3:-No of respondent satisfied with service of a big bazaar:-

Table No 2.4:- Showing classification of respondent no the basis of age group.


Less than 20 years 3 3

20 to 30 years 59 59

30 to 40 years 28 28

Above 40 years 10 10

Total 100 100

Analysis:


Customer perception a study at Big BazaarFrom the above table it is said that the maximum number of respondents come to

visit Big Bazaar are all at the of 20-30. This shows that average aged peoples are aware of

Big Bazaar products and discounts when compared to others.

Chart-2.4:-Classification of respondent on the basis of age group:-

Table No 2.5:- Showing composition of respondent gender.


Male 60 60

Female 40 40

Total 100 100

Analysis:-


Customer perception a study at Big BazaarFrom the above table it is clear that majority of them are males visiting Big Bazaar

when compared to ladies. This shows that males are interested to do shopping in this retail

store may be due to price discounts.

Chart-2.5:-Composition of respondent gender:-

Table No 2.6:-Showing composition of marital status of the respondent.


Single 58 58

Married 42 42

Total 100 100

Analysis:-


Customer perception a study at Big BazaarFrom the above table it shows that maximum number of respondents visiting Big

Bazaar is unmarried. This shows that unmarried persons are willing to do shopping may

be due to the availability of variety of brands in all products.

Chart-2.6:- Composition of marital status of the respondent:-

Table No 2.7:-showing composition of respondent occupation


Student 33 33

Professional 28 28

Business man 21 21

Home maker 7 7

Govt employee 7 7

Other 4 4

Total 100 100


Customer perception a study at Big BazaarAnalysis:-

From the above table it shows that majority of respondents visiting big bazaar are

students when compared to professionals, and others. This shows that students are aware

about this retail store when compared to others.

Chart 2.7:-Composition of respondent occupation:-

Table No 2.8:- Showing composition on annual income of respondent


Less than 15000 23 23

1.5 lakh-3 lakh 30 30

3lakh-5 lakh 14 14

More than 5 lakh 3 3


Customer perception a study at Big BazaarNone 30 30

Total 100 100

Analysis:-

From the above table it is clear that majority of respondents annual income is 1.5-

3 lakh.This shows that middle income group people are willing to do shopping in Big

Bazaar.

Chart 2.8:-Composition on annual income of respondent:-

FINDINGS FROM THE STUDY

Majority of the respondents felt that the billing system needs to be improved, as

during weekends and in other occasions it takes a very long time for the customers

to complete the billing procedures.


Customer perception a study at Big Bazaar Majority of respondents felt that the parking facility was not enough during the

weekends and during other festive seasons.

Some of the respondents also raised thier concern regarding the arrangement of the

products within the product category, some respondents found it difficult to find

the products which they require immediately, it took a lot of time for them to

search for the products which they required.

Some respondents did not find much space to shop during the weekends and in

other festive seasons because the store will be crowded during these periods. So

respondents found it uncomfortable to shop during the weekends and festive

seasons.

Some of the respondents also raised their concern regarding the seating

arrangement; drinking water facility priority should be given towards these issues.

Majority of the respondent are asking about the branded products, the store does

not have so much of branded products.

CONCLUSION

The overall perception of the BIG BAZAAR store is good except in some areas like

billing system during the festival time, proper arrangements of the products, parking

facility and seating arrangement. The target customer for the BIG BAZAAR is the middle


Customer perception a study at Big Bazaarclass segment is growing due to high disposal income. Customers found the prices are

affordable with a good variety of the products available less than one roof.

Customer’s responded positively to the promotions offered at the store, with the sales

during the weekends and festive seasons picking up nicely. The quality of the products

offered at the store was also very well accepted by the customers.

Reasonable price of the products at the store is the driving factor for the customers to shop

in the store. Most of the customers found it convenient to visit the store once in a week.

So we can conclude that the overall perception of the customers towards the store is

positive and are satisfied with the way the store is well managed.

SUGGESTIONS


Customer perception a study at Big Bazaar The problem of the billing system comes into picture during the weekends and

during the festive seasons, where in it takes a lot of time for the customers to

complete the billing processors. So the store should take certain steps where the

customers without any difficulty pays the bill and comes out of the queue as soon

as possible. For this the store can give priority for the customers whose purchases

are bulky and allow that customer to come out of the queue as soon as possible

because of the balk purchases made by those customers. In this way by

introducing certain flexibility the problems can be reduced.

Some customers in the store finds it difficult to get the products within the product

category, this consumes the time of the customers. So the store should properly

arrange the products, so that the customer finds it easy to pick up the product. So

the store should involve itself in proper arrangement and trimming up of the

products.

During the festive seasons and weekends the store will be too crowded and

customers do not find it comfortable to shop. So it is important that there will be

smooth flow of the customers within the store and the customer finds it easy to

shop during this period. For this reason the store can convey the benefits of

visiting the store during the off season to the customer. The same strategy can be

used by the store to reduce the problem of parking during the weekends and

festivals.

The sales personnel in the store also play a very vital role in influencing the

customer perception towards the store. As sales people in the store are the one

who face the customers and interact with them on a consistent basis they should

possess good knowledge about the products in which they are involved in selling

and make sure that they behave in a right way with the customers.


Customer perception a study at Big Bazaar The store should not focus only on one or two areas to imporve the customer

perception towards the store instead the organization should involve itself in

improving the overall customer perception of the store.

The tidiness of the store also helps in enhancing the image of the store. The

employees should make sure that the floors of the store are clean and no dust

should be found on the products. These small things should be taken care of

regularly and should not be ignored thinking that these are small things.

The ambience within the store also plays a very important role in influencing the

customer perception towards the store. The ambience, such as the lighting in the

store, the music that is being played etc., should be taken care of. Good ambience

for shopping improves the customer perception.

The store does not have facility such as star sitar, food court, etc., and

entertainment for children’s. These facilities are very important to attract all ages

of customer.

One bad instance in the store can disappoint the customers. So the employees in

the store should make sure that, no bad instance is faced by the customers while

shopping. Practicing this enhances the customer perception towards the store.

Last and not the least all the employees should work as a team to provide a better

shopping experience to the customers. At the end of the day what counts is , what

is that the customers have taken away from the store. So all the employees should

work as a team and provide a good service to the customers so that the customers

visit the store frequently.


big bazaar customer perception

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