Analysis on Customer Service at Big Bazaar

SUMMER TRAINING REPORT ON ANALYSIS ON CUSTOMER SERVICE AT BIG BAZAAR (CASE STUDY AT WAZIRPUR, NEW DELHI) A division of Pantaloon Retail (India) Ltd.

SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF THE DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION 2009-2012

SUBMITTED TO: Dr. URVASHI FACULTY, MAIMS

SUBMITTED BY: NISHANT RAJ BBA 5th SEM 02761101709

MAHARAJA AGRASEN INSTITUTE OF MANAGEMENT STUDIES Affiliated to Guru Gobind Singh Indraprastha University, Delhi PSP Area, Plot No. 1, Sector 22, Rohini Delhi 110085

STUDENT UNDERTAKING

This is to certify that I have completed the Summer Project titled Analysis on Customer Service at BIG BAZAAR under the guidance of Dr.Urvashi in partial fulfillment of the requirement for the award of Degree of Bachelor of Business Administration at Maharaja Agrasen Institute of Management Studies, Delhi. This is an original piece of work & I have not submitted it earlier elsewhere.

Date: Place:

Signature: Name: University Enrollment No.:

1

CERTIFICATE

This is to certify that the summer project titled Analysis on Customer Service at BIG BAZAARis an academic work done by Nishant Raj submitted in the partial fulfillment of the requirement for the award of the degree of Bachelor of Business Administration at Maharaja Agrasen Institute of Management Studies, Delhi, under my guidance & direction. To the best of my knowledge and belief the data & information presented by him/her in the project has not been submitted earlier.

Signature : Name of the Faculty: Designation:

2

ACKNOWLEDGEMENT

Acknowledgement is an art, one can write glib stanzas without meaning a word, and on the other hand one can make simple expression of gratitude.

Though the language is a poor substitute for sentiments, yet there is no way out to recover to it for expressing my profound gratitude, indebtedness and sincere regards to Dr. Urvashi, Faculty, MAIMS for being my project guide. It was under his constant guidance that I have been able to complete my project and make it a great learning experience.

I would also like to thank the whole team of Big-Bazaar, Wazirpur for heir coordination and cooperation, their direct or indirect contribution through their valuable suggestion, and presence during completion of this project.

Last but not the least are my Parents and friends who stood by me during my busy schedule of completing the project and left no stone unturned to provide me an environment of love and affection.

Nishant Raj

3

EXECUTIVE SUMMARY

Big Bazaar is a future group company. In India first it was started in Mumbai in the year of 1987 and the main branch of Big Bazaar is in Mumbai. Exceptional customer service results in greater customer retention, which in turn results in higher profitability. Customer loyalty is a major contributor to sustainable profit growth. To achieve success, you must make superior service second nature of your organization. A seamless integration of all components in the service-profit chain employee satisfaction, value creation, customer satisfaction, customer loyalty, and profit and growth links all the critical dynamics of top customer service Sadly, mature companies often forget or forsake the thing that made them successful in the first place: a customer-centric business model. They lose focus on the customer and start focusing on the bottom line and quarterly results. They look for ways to cut costs or increase revenues, often at the expense of the customer. They forget that satisfying customer needs and continuous value innovation is the only path to sustainable growth. This creates opportunities for new, smaller companies to emulate and improve upon what made their bigger competitors successful in the first place and steal their customers. This project focuses on analysis on customer service at Big bazaar, Future group, Pantaloon Retail (India) Ltd..

4

Chapters Chapter 1

CONTENTS COMPANY PROFILE 1.1 Vision, Mission & Core Values 1.2 Company History 1.3 About Pantaloon 1.4 About Future Group 1.5 Affiliated Companies 1.6 Lines of Business

Page No.

2 4 6 7 8 9

Chapter 2

INTRODUCTION TO BIG BAZAAR 2.1 About Big Bazaar 2.2 Timeline 2.3 Innovations 2.4 Store Operations 2.5 SWOT Analysis RESEARCH METHODOLOGY 3.1 Project Objective 3.2 Research Methodology 3.3 Sampling Plan 3.4 Research Limitations

12 13 15 16 18

Chapter 3

21 21 22 22

Chapter 4

RESEARCH ANALYSIS & INTERPRETATION 4.1 Analysis 4.2 Findings

24 47

Chapter 5

CUSTOMER SERVICE DESK 5.1 Introduction 5.2 Functions of CSD CONCLUSIONS & RECOMMENDATIONS BIBLIOGRAPHY

49 49 64 67

Chapter 6 Chapter 7

Chapter 8

QUESTIONNAIRE

69

5

CHAPTER 1 COMPANY PROFILE

6

1.1 VISION, MISSION & CORE VALUES

1.1.1 GROUP VISION Pantaloon (Future Group) shall deliver Everything, Everywhere, Every time for every Indian consumer in the most profitable manner. 1.1.2 GROUP MISSION Pantaloon share the vision and belief that their 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.

7

1.1.3 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. 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. Corporate Credo: - Rewrite rules, Retain values.

8

1.2 COMPANY HISTORYThe Company was incorporated on the 12th of October 1987, under the name of Manz Wear Private Limited. The Company was converted into a Public Limited Company under the name of Manz Wear Limited on 20th September 1991. The Company name was changed to Pantaloon Fashions (India) Limited vide certificate of incorporation dated the 25th September, 1991. The Company has successfully launched the `Pantaloon` Trousers, Shirts, Denims, Sleep Suits and other ready-made garments in 1992. The first Pantaloon was opened in Gariahat in 1997. The Company opened a state-of-art family store at prestigious `Crossroads`, Hajji Ali, Mumbai, spread over an area of 4,500 sq. ft in 1999 The name of the Company was changed with the approval of the Members to Pantaloon Retail (India) Ltd in 1999. Tied up with Andhra Pradesh Handloom Weavers` Co-operative Society and National Institute of Fashion Technology in 2001. Pantaloon Retail (I) Ltd. enters into Strategic alliance with Arvind Brands Ltd in 2004 Ties up Arvind Brands Ltd for Ruff & Tuff brand at its Big Bazaar outlets across the country in 2004.

9

1.2.1 COMPANY TIMELINE

1987-

Company incorporated as Manz Wear Private Limited. Launch of Pantaloons trouser, Indias first formal trouser brand. Launch of BARE, the Indian jeans brand. Initial public offer (IPO) was made in the month of May. The Pantaloon Shoppe exclusive menswear store in Franchisee format launched across the nation. The Company starts the distribution of branded garments through multi-brand retail outlets across the nation. John Miller Formal shirt brand launched. Pantaloons Indias family store launched in Kolkata. Big Bazaar, Is se sasta aur accha kahi nahin Indias first hypermarket chain launched. Food Bazaar, the supermarket chain is launched. Central Shop, Eat, Celebrate In the Heart of Our City Indias first seamless mall is launched in Bangalore. Fashion Station - the popular fashion chain is launched. aLL a little larger - exclusive stores for plus-size individuals is launched.

199119921994-

199519972001-

20022003-

2005-

2006-

Future Capital Holdings, the companys financial arm launches real estate funds Kshitij and Horizon and private equity fund Indivision. Plans forays into insurance and consumer credit. Multiple retail formats including collection i, Furniture Bazaar, Shoe Factory, EZone, Depot and futurebazaar.com are launched across the nation. Group enters into joint venture agreements with ETAM group and Generali.

10

1.3 ABOUT PANTALOONPantaloon Retail (India) Limited, is Indias leading retailer that operates multiple retail formats in both the value and lifestyle segment of the Indian consumer marker. Headquartered in Mumbai (Bombay), the company operates over 5 million square feet of retail space, has over 350 stores across 40 cities in India and employs over 18,000 people. The companys 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, mBazaar 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 EZone 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.

11

1.4 FUTURE GROUPFuture Group is Indias leading business group that caters to the entire Indian consumption space. Led by Mr. Kishore Biyani, the Future Group operates through six verticals: operates through six verticals: Retail, Capital, Brands, Space, Media and Logistics. Apart from Pantaloon Retail, the groups presence in the retail space is complemented by group companies, Indus League Clothing, which owns leading apparel brands like Indigo Nation, Scullers and Urban Yoga, and Galaxy Entertainment Limited that operates Bowling Co, Sports Bar, F123 and Brew Bar. The groups joint venture partners include French retailer ETAM group, US-based stationary products retailer, Staples and UK-based Lee Cooper. Group Company, Planet Retail, owns and operates the franchisee of international brands like Marks & Spencer, Next, Debenhams and Guess in India. The groups Indian joint venture partners include, Manipal Healthcare, Talwalkars, Blue Foods and Liberty Shoes. Future Capital Holdings, the groups 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 has launched a consumer credit and financial supermarket format, Future Money and soon plans to offer insurance products through a joint venture with Italian insurance major, Generali. Future Groups 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.

12

1.5 AFFLAITED COMPANIES1.5.1 PARTNER COMPANIES 1.5.1.1 Home Solutions Retail (India) Ltd. Home Solutions Retail (India) Ltd. (HSRIL) leads the groups foray in the home improvement and consumer electronics retailing segment. It caters to home management requirements and products, including furnishings and textiles, furniture, consumer electronics, home electronics and home services. It operates retail formats like Home Town, Furniture Bazaar, Collection I, E-Zone, Electronics Bazaar and Got It. 1.5.1.2 Future Capital Holdings Future Capital is the financial arm of the group and is involved in asset management (both private equity and real estate funds) with plans to get into other financial services including insurance, credit and other consumer related financial services. Its associate companies are Kshitij Investment Advisory Co. Ltd., Indivision Investment Advisers Ltd., and Ambit Investment Advisory Co. Ltd. 1.5.1.3 Indus League Clothing Ltd. The group owns a majority stake in Indus League Clothing Ltd., one of the leading apparel manufacturers and marketers in India. Some of its leading brands include Indigo Nation, Scullers, Urbana, Urban Yoga and Jealous. 1.5.1.4 Galaxy Entertainment Corporate Ltd.

The group owns a stake in Galaxy Entertainment Corporate Ltd. that operates chains like Bowling Company, Sports Bar and Brew Bar.

1.5.2 JOINT VENTURE COMPANIES 1.5.2.1 Planet Retail Holdings Ltd. The group is a joint venture partner in Planet Retail Holdings Ltd., which operates sports, lifestyle and leisure retail chain. It also owns the franchisee and distribution rights of brands like Marks & Spencer, Guess, Debenhams and Puma in India.

13

1.5.2.2 Footmart Retail Footmart Retail is a joint venture with Liberty Shoes and is engaged in the retailing of footwear products in India. 1.5.2.3 CapitaLand Retail India The group is a joint venture partner in CapitaLand Retail India, along with Singaporebased CapitaLand Limited. The company provides retail management services to retail properties owned or managed by various group companies and investment funds.

1.6 LINES OF BUSINESS

Pantaloons Fresh Fashion

aLL, the Fashion Apparel store for plus-size individuals

Big Bazaar, a hypermarket chain

A chain of destination malls

Food Bazaar, a food and grocery store14

The Fashion Chain

For Fashion Accessories

For Salon and Beauty products

Depot for Books, music, Stationery etc.

Futurebazaar.com for e-tailing

15

CHAPTER 2 INTRODUCTION TO BIG-BAZAAR

16

2.1 ABOUT BIG BAZAARBig bazaar is a hypermarket chain owned by the Pantaloon Retail India Limited, with currently more than 50 outlets in metros, medium, and small cities. Big Bazaar combines the look and feel of Indian bazaars with aspect of modern retail like choice, convenience, and hygiene. It works on the same economy model like Wal Mart, and has had considerable success in many Indian cities and small towns. The idea was pioneered by entrepreneur Kishore Biyani, the head of Pantaloon Retail India Limited. Big Bazaar is not just another hypermarket. It caters to every need of your family. Where Big Bazaar scores over other stores is its value for money proposition for the Indian customers. At Big Bazaar, you will definitely get the best products at the best prices - thats what they guarantee. With the ever increasing array of private labels, it has opened the doors into the world of fashion and general merchandise including home furnishings, utensils, crockery, cutlery, sports goods and much more at prices that will surprise you. And this is just the beginning. Big Bazaar plans to add much more to complete your shopping experience. Living up to its motto of Isse sasta aur accha kahin nahi, all products in Big Bazaar will be available at prices lower than the MRP, often up to 60% discount. In addition to this, various offers, discounts and promotions will be regularly held at the store. The consumer will experience a new level of standard in price, convenience and comfort, quality, quantity, and store service levels. BIG BAZAAR in its true hypermarket model will offer all of the above for both leading brands as also for its private labels.

17

2.2 TIMELINE2001

Three Big Bazaar stores launched within a span of 22 days in Kolkata, Bangalore and Hyderabad.

2002

Big Bazaar - ICICI Bank Card is launched. Food Bazaar becomes part of Big Bazaar with the launch of the first store in Mumbai at High Street Phoenix.

2003

Big Bazaar enters Tier II cities with the launch of the store in Nagpur. Big Bazaar welcomes its 10 million-th customer at its new store in Gurgaon.

2004

Big Bazaar wins its first award and national recognition. Big Bazaar and Food Bazaar awarded the countrys most admired retailer award in value retailing and food retailing segment at the India Retail Forum. A day before Diwali, the store at Lower Parel becomes the first to touch Rs 10 million turnovers on a single day.

2005

Initiates the implementation of SAP and pilots a RFID project at its central warehouse in Tarapur. Launches a unique shopping program: the Big Bazaar Exchange Offer, inviting customers to exchange household junk at Big Bazaar. Electronic Bazaar and Furniture Bazaar are launched.

2006

Mohan Jadhav sets a national record at Big Bazaar Sangli with a Rs 1,37,367 shopping bill. The Sangli farmer becomes Big Bazaars largest ever customer. Big Bazaar launches Shakti, Indias first credit card program tailored for housewives. Navaras the jewellery store launched within Big Bazaar stores.

18

2007

The 50th Big Bazaar store is launched in Kanpur. Big Bazaar partners with Futurebazaar.com to launch India's most popular shopping portal. Big Bazaar initiates the Power of One campaign to help raise funds for the Save the Children India Fund. 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

Big Bazaar becomes the fastest growing hypermarket format in the world with the launch of its 101st store within 7 years of launch. Big Bazaar dons a new look with a fresh new section, Fashion@Big Bazaar. Big Bazaar joins the league of Indias Business Super brands. It is voted among the top ten service brands in the country in the latest Pitch-IMRB international survey.

2009

Big Bazaar opens its second store in Assam at Tinsukia. Big Bazaar initiates Maha Annasantarpane program at its stores in South India a unique initiative to offer meals to visitors and support local social organizations. Big Bazaar captures almost one-third share in food and grocery products sold through modern retail in India.

2010

Future Value Retail Limited is formed as a specialized subsidiary to spearhead the groups value retail business through Big Bazaar, Food Bazaar and other formats. Big Bazaar wins CNBC Awaaz Consumer Awards for the third consecutive year. Adjudged the most preferred Most Preferred Multi Brand Food & Beverage Chain, Most Preferred Multi Brand Retail Outlet and Most Preferred Multi Brand One Stop Shop. Big Bazaar connects over 30,000 small and medium Indian manufacturers and entrepreneurs with around 200 million customers visiting its stores.

19

2.3 INNOVATIONS

2.3.1 Wednesday Bazaar Big Bazaar introduced the Wednesday Bazaar concept and promoted it as Hafte Ka Sabse Kimti Din. It was mainly to draw customers to the stores on Wednesdays, when least number of customers is observed. According to the chain, the aim of the concept is "to give homemakers the power to save the most and even the stores in the city don a fresh look to make customers feel that it is their day".

2.3.2 Maha Bachat Maha Bachat was started off in 2006 as a single day campaign with attractive promotional offers across all Big Bazaar stores. Over the years it has grown into a 6 days biannual campaign. It has attractive offers in all its value formats such as Big Bazaar, Food Bazaar, Electronic Bazaar and Furniture Bazaar - catering to the entire needs of a consumer.

2.3.2.1 Big Bazaar, Wazirpur Big bazaar Wazirpur is the first discount hypermarket that has opened at a station. Big bazaar, wazirpur started operating around two years back on 22 of July 2005. Big Bazaar is proud to be the first to offer a never-before shopping experience to the metro commuters. Big Bazaar, Wazirpur is the 4th Big Bazaar in National Capital Regions and around 20th in the country. Big Bazaar, Wazirpur also has Food Bazaar within the store. The total area of Big Bazaar, Wazirpur is 48,641 Sq. Feet in which 60% is the selling area, 25% is for the back areas and 15% is for the circulation.

20

2.4 STORE OPERATIONS Administrative Process Stock Transactions Sales Process Cashiering & Check out Process

HR & Welfare Facilities Management Visual Merchandising & Display Marketing & In Store Promotions IT & Systems Customer Service

21

Organization Structure of Big Bazaar, Wazirpur

Store Manager

Assistant store Manager

Department Managers

Assistant Department Managers

Team Leaders

Team Members

22

2.5 SWOT ANALYSISSTRENGTHS:o o o o o o o o o o

EDLP [ Every Day Low Pricing] Experienced marketing team & executive staff. Strong culture, ethics and values are followed Emphasis on providing total customer satisfaction Point of purchase promotion to increase the purchase Variety of stuff under single roof Increase sales with the help of healthy competition between different department Maintains good employer-employee relation Cost control initiatives that is critical in a retail operations business Periodical reviews of the various operations have been done on regular basis to identify the any possible threat and address the same within time

WEAKNESSES:o o

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

OPPORTUNITIES:o

Population of the country is growing where the scope of market is kept on increasing for the retail sector. Organized Retail less penetrated in India so it acts as a great opportunity to the organization for its growth. Evolving consumer preferences. Economy is developing as the employment opportunities are increasing and the income of the people is also increasing which increases life standards of people. Company has more scope of expansion in two and three tier cities.

o

o o

o

23

THREATS:o o o o o

Competitors Strategies Advancement of technology day by day. Government policies. Unorganized Retail sector Foreign direct investment cause more problems in future because of that many mergers and acquisition are happening in Indian retail sector

24

CHAPTER 3 RESEARCH METHODOLOGY

25

3.1 PROJECT OBJECTIVETo study all the processes and the Customer interface at CSD and to devise strategies to make it more efficient. In simple words, the objective is to improve customer service and satisfaction so as to retain customers.

3.2 RESEARCH METHODOLOGYResearch methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. In it we study the various steps that are generally adopted by a researcher in studying his research problem along with the logic behind them. It is necessary for the researcher to know not only the research methods or techniques but also the methodology. The work is divided into two parts: 1. CASE STUDY PROCESSES: In this part we need to study all the functions that are undertaken and all the records that are maintained by the CSD staff. A detailed study of What, Why, How, and When these process are undertaken. CUSTOMER INTERFACE: Customer interface is to be done by the observations. In this We need to observe following things: 1. What the customers know about CSD? 2. How is the current scenario of CSD? 3. What is customer satisfaction level regarding CSD? 2. RESEARCH In this part, we need to conduct a survey on the existing Customers of the store analysis of the data to convert it into meaningful information and then using that information to devise strategies to minimize the existing limitations and improve efficiency of CSD. The research will include the study and analysis of both the processes and the Customer Interface.

26

Data type: Research Approach: Survey Type: Research Instruments: Type of Questions:

Primary Data Survey Research Non-Disguised Structured Questionnaire Closed-Ended

3.3 SAMPLING PLANSampling Unit: Only those Customers Who Have visited CSD. 150 Respondents Direct Contact

Sampling Size: Contact Methods:

3.4 LIMITATIONS OF RESEARCH1. Small Sample Size: A sample size of 250 respondents will not yield the more accurate results. 2. Lack of availability of secondary data. 3. Less reliability of primary data.

27

CHAPTER 4 RESEARCH ANALYSIS & INTERPRETATION

28

4.1 ANALYSIS

Gender:

37%Male Female

63%FIG. 1

This research was mainly focused towards house-wives as they are the major target segment of Big Bazaar. That is why the number of females is more than males. This research also targeted only those customers who are aware of the CSD (Customer Service Desk). First time visitors were not included.

29

Age Group:

60% 50% 40% 30% 20% 10% 0% 50

Most of the Customers fall in the age group of 35-50 and 25-30.Customers in the age group of less than 20 and above 50 hardly comes to the CSD.

30

Annual Income:

40%

35%30% 25% 20% 15% 10% 5% 0%