A REPORT ON CUSTOMER BEHAVIOUR AND PERCEPTIONS TOWARDS BIG BAZAAR HYDERABAD. Submitted to Prof Mrs. Vasumathy Hariharan Faculty: Business Research and Management IBS, Hyderabad. On 05/01/10 Submitted by S.Sai kumar Enrol No: 09BS HYD 1077 Section: ‘M’ 1
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A REPORT ONCUSTOMER BEHAVIOUR AND PERCEPTIONS TOWARDS BIG
BAZAARHYDERABAD.
Submitted toProf Mrs. Vasumathy HariharanFaculty: Business Research and ManagementIBS, Hyderabad.
On 05/01/10
Submitted byS.Sai kumarEnrol No: 09BS HYD 1077Section: ‘M’
1
Acknowledgement
I would like to acknowledge and extend my heartfelt gratitude to Prof Mrs. Vasumathy Hariharan who gave me the opportunity to take up the project and made the completion of report possible.
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SL.No.
CONTENTS PAGE NO.
1 • Retailing in the Indian Sector 7
Rise of Indian Retailing Sector 9
2 Research Design 11
• Statement of the problem 11
• Objectives of the study 11
• Need for study 11
- • Scope of the study 11
• Research methodology 12
• Limitations of study 13
• Chapter Scheme 14
3 Company Profile 15
• Corporate Mission 15
• Values 16
• Pantaloons Evolution 14
• Group Companies 16
• Big Bazaar 17
• Retailing Principles 18
4 Data Analysis And Interpretation 19-47
5 Summary Of Findings 49-51
6 Suggestions 50-53
• Conclusion 52-53
Bibliography
Annexure
3
LIST OF TABLES
SL. NO. TABLE NO. TITLE PAGE
NO.
1 4.1. Frequency Of Visit 17
2 4.2 Preference Of Shopping Days 18
3 4.3 Preference Of Shopping Time 20
4 4.4 Accompanied By 21
5 4.5 Source Of Knowledge 23
6 4.6 Customer Perception Towards Big Bazaar 24
7 4.7 Customer Expectation 26
8 4.7.1 Customer Expectation (Age) 28
9 4.7.2 Customer Expectation (Gender) 29
10 4.8 Product Satisfaction 30
11 4.9 Product Location 31
12 4.10 Helpful Signage 32
13 4.11 Customer Perception Towards Price 33
14 4.11.1 Customer Perception Towards Price (Age) 34
15 4.11.2 Customer Perception Towards Price
(Gender)
36
16 4.12 Awareness Of Promotional Offers 37
17 4.13 Advantage Of Promotional Offers 38
18 4.14 Customer Perception 39
19 4.14.1 Customer Perception (Age) 40
20 4.14.2 Customer Perception (Gender) 41
21 4.15 Age 43
22 4.16 Gender 44
4
23 4.7 Marital Status 44
24 4.18 Monthly Family Income 45
25 5.1 Customer Expectation And Customer
Satisfaction
46
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LIST OF CHARTS
SL.
NO.
CHART
NO.
TITLE PAGE
NO.1 1 Frequency Of Visit 18
2 2 Preference Of Shopping Days 19
3 3 Preference Of Shopping Time 21
4 4 Accompanied By 22
5 5 Source Of Knowledge 24
6 6 Customer Perception Towards Big Bazaar 25
7 7 Customer Expectation 27
8 7.1 Customer Expectation (Age) 28
9 7.2 Customer Expectation (Gender) 29
10 8 Product Satisfaction 31
11 9 Product Location 32
12 10 Helpful Signage 33
13 11 Customer Perception Towards Price 34
14 11.1 Customer Perception Towards Price (Age) 36
15 11.2 Customer Perception Towards Price (Gender) 37
16 12 Awareness Of Promotional Offers 38
19 14 Customer Perception 40
20 14.1 Customer Perception (Age) 42
21 14.2 Customer Perception (Gender) 43
22 15 Age 44
23 17 Marital Status 46
24 18 Monthly Family Income 47
25 19 Customer Expectation And Customer
Satisfaction
48
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RETAILING IN THE INDIAN SCENARIO
Defining a new consumer culture, retailing beats everything else hollow.
Though still at a nascent stage, the rate at which retail outlets are
mushrooming could give an amoeba a complex.
From supermarkets and hypermarkets to department stores and
convenience stores and one-stop shops, a retailing wave is currently on in
the country. And from food to music and apparel to tea and coffee bars,
companies of all hues are indulging in retail speak.
Organized retailing has grown three-fold from Rs 5,000 crore in 2000 to Rs
1,44,253 crore today, with a potential to expand to Rs 235,000 crore by
2015.
The Indian consumer initially accepted everything that was offered to
them but from the nineties the trend changed and the market became
more consumers driven. Consumers became more specific about what
they wanted and did not pick up anything and everything that was given
to them. In shot they became very choosy and needed alternatives to
choose from. These in turn made the Indian consumers more
knowledgeable about the products and facilities and they have now
become tough critics, savvy, purchasers, value driven spenders and
practical thinkers when it comes to shopping. The demand for their time
at work and home has made the consumers extremely selective about
how they would spend their limited time on shopping.
The rate of growth in India has gradually picked up in the last two
decades. Growth prospects apart, India's very size acts as the fourth
largest economy in the world. It is also the second most populous nation
in the world. This clearly indicates that within the broad picture of a
developing nation, there are segments to represent big enough to
represent large markets for organized retail.
Due to the increasing demand of consumers for variety and convenience
under one single roof and the concept of shopping malls started taking
shape in India. Though the concept of shopping malls came from the west,
when it was introduced in India is was according to Indian taste and
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preferences.
Shopper's stop was the first Shopping mall to start in India. It was
promoted by Mr.K.Raheja , a prominent Mumbai-based builder, opened
the first outlet in Andheri, Mumbai in 1991, initially it underwent a fair
share of growing pains but slowly it caught on and has now been very well
excepted by the masses.
In India there are a number of large towns and the population in these
towns is also very high. This acts as a very important factor to attract the
large retailers in venturing into these towns. In the ascending traffic
congestion levels, the net result is over crowded towns and parking
hassles, One-stop shops have become the places of choice in such a
scenario.
There has been an explosion of branded goods as a corollary to the
receptive conditions created by The new trend; For example: In the
eighties there was only one brand of salt available in the Indian market
but today there are many brands that are available. Garments, cosmetics,
shoes, etc are no way different as a number of brands have entered into
the market.
Indian Retailing - On to Generation Mall:
The changing structure of the industry is in response to global forces.
There is a perspective of the existing opportunities and the future
potential areas across various segments of the retail industry. While this
sector hasn't yet been thrown open to foreign investments, the potential
for the same in the future is huge. Technology is playing an increasingly
crucial role for the success of a retail venture. Retailers are scrambling to
tap the vast consumer information at their disposal using technological
advancements. The section on such initiatives in the Indian retail scenario
is a must for any potential entrant and for majors in the software industry
wanting to tap the potential in this industry.
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RISE OF INDIAN RETAIL SECTOR
Traditional retailing continues to be the major form of retail system contributing to over 97% of total retail revenues. Indian retail market is in a transition phase with a fast paced shift towards organized retail which is predicted to capture 15-20% market share by 2010. Initially organized retail stores made their entry through metro cities. But with the increased spending capacities of consumers in tier-2 cities, the new retail stores are entering smaller upcoming cities. There are only a handful of companies with a retail background. Most new entrants to the Indian retail scene are real estate groups who see their access to and knowledge of land, location and construction as prime factors for entering the market. Quite interestingly, the share of retail market in urban and rural India is not very skewed. The organized retail is expected to grow at a rate of 35% in large cities because of shortage of space, while in small towns it would grow at a rate of 50-60 per cent, where ample land is available (NSSO and KPMG analysis).
India, currently, is the hottest retail destination. The Indian retail sector is highly fragmented with 95% of its business being run by the unorganized retailers like the traditional family run stores and corner stores. The organized retail is at a very nascent stage though attempts are being made to increase its proportion to 15-20% by the year 2010 bringing in a huge
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opportunity for prospective new players. “Retail Revolution” is just beginning in India. This presents a unique opportunity in time to “organized” retailers in the western world to leverage and scale-up in India utilizing their well defined and proven processes, procedures and controls. The supply chain, procurement systems and understanding of global trends & fashion will enable them to succeed.
According to the research conducted by Sumitra group, from the setting up of India’s first mall in 1999, there has been a steady proliferation of malls, a trend specially pronounced in the urban cities. Total number of malls was estimated at 200 in 2005-06 and projected to increase to
715 by 2015.
The mall mania has bought in a whole new breed of modern retail formats across the country catering to every need of the value-seeking Indian consumer. An average Indian would see a mall as a perfect weekend getaway with family offering them entertainment, leisure, food, shopping all less
than one roof. FDI up to 51 per cent is allowed, with prior Government approval for retail trade in ‘Single Brand’ products with the objective of attracting investment, technology and global best practices and catering to the demand for such branded goods in India (KPMG Research Group).
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STATEMENT OF THE PROBLEM
Understanding shopping behaviour is in shopping malls is one of the
greatest problems of the marketer. He has to fine tune his marketing mix
strategies according to the market needs. For this an in depth Analysis is
necessary to understand the shopping behaviour.
Big Bazaar one of the well-known shopping malls in the city of Hyderabad
has a different kind of marketing strategy as compared to others. In this
background an attempt is made to understand the marketing mix
strategies of Big Bazaar from customers' point of view.
OBJECTIVES OF THE STUDY
The study is conducted with the main intention of understanding:
1. The shopping behaviour of the customers.
2. Customers' perception about the marketing mix strategies of Big
Bazaar.
3. Customers' preference for Big Bazaar.
4. Customers' expectation and satisfaction levels.
5. To offer suggestions based on findings.
NEED FOR STUDY
Retail market has come of age and is witnessing a global trend.
Hyderabad is one of the cities witnessing this trend hence it attracts the
attention of any researcher to understand the shoppers behaviour and
strategies of the retailer in this regard.
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SCOPE OF THE STUDY
The study confines itself in understanding the customers' view point of the
marketing mix strategies of Big Bazaar in Hyderabad.
RESEARCH METHODOLOGY
DATA SOURCES:
1. Primary Data
Primary data is the information collected for research purpose at hand.
Primary data was collected through an interview with the help of a
structured questionnaire, which contained quires that were relevant to the
purpose of the study as well as pertinent; industry related questions. The
present study questionnaire makes use of both open ended and close
ended questions.
2. Secondary Data
Secondary data is the information which already exists. Secondary data is
collected from journals, magazines, books, dissertations etc. The
secondary data for this research was obtained from company profile,
corporate magazines, corporate broachers, websites, journals etc. Various
books and other published matter were also referred to for sorting,
tabulating and analysing the raw data collected. Very little research
specific data was available; hence much emphasis was given to primary
data.
RESEARCH APPROACH
Survey method was adopted in order to collect the primary data
required for the study.
RESEARCH INSTRUMENT
Questionnaire was designed with open-end and close-end questions. The
Questionnaire was designed in such a manner so as to cater to all the
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areas and aspects of the study.
SAMPLING PLAN
1. SAMPLING UNIT: A customer visiting Big Bazaar is identified as the
sampling unit.
2. SAMPLING SIZE: The sampling size was 100.
3. SAMPLING PROCEDURE: Random Sampling
DATA ANALYSIS
Simple statistical tools such as averages, ranking, means etc. are used.
Graphs and charts are also used to have a better pictorial understanding.
PLAN OF ANALYSIS
The collected data has been classified, tabulated, analysed and
interpreted in an organised manner. Inferences have been drawn carefully
and methodically with supportive guidance to avoid discrepancies in the
survey. Conclusions have been drawn and suggestions have been made to
the best of knowledge.
All the work is done under the assumption that the data collected from the
respondents was accurate.
Throughout the survey and throughout the time the report was prepared,
errors and mistakes have been made minimal despite the knowledge o
the fact that with a sample size of 100, various hindrances are bound to
occur.
Utmost care has been taken while preparing this report to see that it can
be clearly understood by the reader as well as beneficial to the company.
LIMITATIONS OF STUDY
Some of the limitations of this study are:
Due to geographic constraint the study was limited to Hyderabad
City.
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It is assumed that the respondents understood the questions in the
questionnaires as they were supposed to. The chances of
misunderstanding were remote but it cannot be ruled out.
It is assumed that the information given by the respondents is true
as per their knowledge and hence the chances of biased information
is remote but definitely cannot be ruled out.
Due to the limited number of respondents, the finding may not be
the same for the whole population.
CHAPTER SCHEME
CHAPTER 1: Introduction
CHAPTER 2: Research Design
Statement of the problem
Objectives of the study
Need for study
Scope of the study
Research methodology
Limitations of study
CHAPTER 3: Profile Of BIG BAZAAR
CHAPTER 4: Analysis and Interpretation Of The Data
CHAPTER 5: Summary of Findings
CHAPTER 6: Suggestions
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Bibliography
Annexure
Incorporated in October 1987, Pantaloons ranks amongst the top
five retailers in India.
Pantaloon Retail (India) Limited (PRIL) was incorporated on October 12,
1987 as Man's Wear Private Limited under the stewardship of Mr. Kishore
Biyani. The Company was converted into a public limited company on
September 20, 1991 and on September 25, 1992 the name was changed
to Pantaloon Fashions (India) Limited and the same time it went public
and today it has approximately 14,000 shareholders. It later changed its
name to Pantaloon Retail (India) Limited on 7th July 1999.
From a humble beginning in 1987, Pantaloon as today evolved as a
leading manufacturer-retailer in the country with 12 Pantaloon stores and
6 hypermarkets operational across the country. It has been a remarkable
journey for PRIL as its evolved from a manufacturing to a completely
integrated player controlling the entire value chain.
CORPORATE MISSION
"We share the vision and belief that by improving our
performance through innovative spirit and dedication, we shall
serve our customers and stakeholders satisfactorily."
PRIL believes that unconventional and innovative thinking will be the key
ingredients to attain leadership in the emerging retail sector where the
rules of the game are still evolving. Whereas serving the customers
satisfactorily is the core focus, the company also believes in adequately
rewarding its shareholders though concerted efforts on reducing cost and
improving profitability. To implement the corporate mission, PRIL has
penned a well thought of corporate strategy and policy which will ensure
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rapid growth in the coming years. This strategy can be best described in
the following words 'Rewrite Rules Retain Values'.
Blending Strategies
To targeting a higher share in customer shopping basket the company has
adopted blending strategies. By entering into multiple formats -
departmental stores and hypermarkets - PRIL has effectively blended the
multiple strategies and they have been successful in addressing a high
share of the customer's basket.
'Family focus' rather than 'individual focus'
PRIL strategy is to target family as its customer rather than individual.
With audience having social ethics and culture deeply rooted in them,
adopting the pull strategy has brought in more customers into the stores.
Moreover, it ensures repeat purchase and this is always in focus and is
reflected in all its communications and product offerings.
Paradigm shift in "rapid roll-out'
The company has aggressive growth plan to achieve scale of economy
and attain leadership position in this evolving industry. PRIL's ability to
evolve from mid-format into large format retail stores is well proven. With
aggressive growth plan the company has identified many locations across
the country to roll out future stores. The company plans to increase the
retail space under control to more than 1 million square feet over the next
3 years to emerge 'Godzilla' of the Indian retail industry.
VALUES
Though unconventional in redefining the ways of doing business, PRIL has
not sacrificed on its core values. It believes in retain its core values while
redefining business rules.
Indian-Ness
The core value of company is INDIAN-NESS. We believe in ourselves. The
company is developing the Indian model of retailing since the customers
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here have unique culture and value systems and hence it targets the
family as customer rather than Individual and offers products of Indian
taste, and a combination of own category and shop-in-shop category and
hence was born “the retailer partnering with small time shop keeper”
concept.
Some of the major milestone achieved by the company in its life span of
14 years is enumerated below:
MAJOR MILESTONES
COMPANY INCORPORATED 1987-88
THE PANTALOON TROUSER - India's first formal
trouser brand launched
1987-88
BARE - Indian Jean brand launched 1989-90
JOHN MILLER- Shirt inspired by America - Formal
shirt in popular segment launched
1993-94
Distribution of branded garments through multi-
brand retail outlets across nation and exports of
garments
1993-94
THE PANTALOON SHOPPEE - Exclusive menswear
store in franchisee format launched across nation
1993-94
PANTALOONS- India's Family Store launched 1997-98
BIG BAZAAR - Isse se sasta aur acha kahi nahi! -
Indian Hypermarket launched
2001-02
FOOD BAZAAR - Ab Ghar Chalaana Kitna Aasaan -
chain of large supermarkets with a difference.
2001-02
GOLD BAZAAR - Sone pe suhaga. Shudh bhi, sasta
bhi2003
BIG BAZAR
Big bazaar is the hypermarket discount store imitative of the company
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commissioned to address the discount and bargain hunting tendencies of
the Indian shopper. Big Bazaar chain houses everything that one may
need in house, under one roof, at the lowest prices. It sells all items either
branded or unbranded. This includes clothing, apparel, home textiles &
furnishing, white goods, provisions; etc. The merchandise will either be a
part of Big Bazaar goods or will be a part of the shop-in-shop. Big Bazaar,
Pantaloon promises 'more for less', addressing a wider range of product
lines which are of interest to the mass market. The high service levels,
good ambience and implicit guarantees make shopping at Big Bazaar a
worry-free experience. Essentially this hypermarket concept is well on its
way to changing the very face of the Indian retailing industry.
Products available a Big Bazaar:
Apparel and Accessories for Men, Women and Children, Sarees, Linens,