A PROJECT REPORT ON “CUSTOMER PERCEPTION – A STUDY AT BIG BAZAAR MYSORE ROAD BANGALORE ” In partial fulfilment for the award of the degree of Master of Business Administration By SHIVANAND REG.NO: 09JRCMA040 GUIDE Dr.H.S.MAHABALESHWAR BHATTA PRINCIPAL, RRMBA RAJARAJESHWARI COLLEGE OF MANAGEMENT STUDIES & COMPUTER APPLICATIONS No.14, Ramohalli cross, Mysore Road, Banglore-74 RR COLLEGE OF MANAGEMENT STUDIES AND COMPUTER APPLICATIONS Page 1
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A PROJECT REPORT ON
“CUSTOMER PERCEPTION – A STUDY AT BIG BAZAAR MYSORE ROAD BANGALORE ”
In partial fulfilment for the award of the degree of Master of Business Administration
By
SHIVANAND
REG.NO: 09JRCMA040
GUIDE
Dr.H.S.MAHABALESHWAR BHATTA
PRINCIPAL, RRMBA
RAJARAJESHWARI COLLEGE OF MANAGEMENT STUDIES & COMPUTER APPLICATIONS
No.14, Ramohalli cross, Mysore Road, Banglore-74
(2009-2011)
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CHAPTER-I
INTRODUCTION
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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 Weather 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 retail investment. This followed from the saturation in eastern retail
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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
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consumer 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,
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RPG group are trying to strengthen thier market. Where as the new entrants like the Reliance
group 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.
Vishal Mega Mart is a conglomerate encompassing 100 showroom in 67 cities / 20 states.
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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.
Use of Effective Campaign Management Techniques.
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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.
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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.
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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-
brand 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.
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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
Most 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
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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.
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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
stores 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.
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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
Femina 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
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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
In 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.
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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
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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. These 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
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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
remain 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.
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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
new 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
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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
‘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
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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
people 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
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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
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.
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CHAPTER-4
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DATA ANALYSIS
AND
INTERPRETATION
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Analysis and interpretation
Table No.1.1:-Showing classification of respondents based on which source they
Come to know about Big Bazaar.
Particulars 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.
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Chart-1.1:-Respondents based on which sources they come to know about Big
Bazaar:-
Interpretation
The following is the percentage of respondents, through which they have come to know
about the Big Bazaar
49% of respondents through News papers, 10% of respondents through Magazines,
25% of respondents through Word of mouth, 3% of respondents through Internet. The
remaining 13% of respondents through other source like TV, Radio and by direct
observation
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Table No 1.2:- Showing frequency of customer visiting stores
Particulars No of respondent % Of Respondent
Twice in a week 13 13
Once 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.
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Chart-1.2:-Frequency of customer visit Big Bazaar:-
Interpretation
The following is the percentage of frequency of customer visiting to store.
6% of customers are first time visitors, 24% of customers visit only at special
occasions, 17% of the customers visit once in a month, 22% of the customers visit once in
a fortnight, 18% of the customers visit once in a week, 13% of the customers visit twice in
a week.
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Table No1.3:- Showing classification of customers with whom they would like to shop.
Particulars 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.
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Chart-1.3: showing the customers with whom they would like shop:-
Interpretation
Following is the percentage of customers with whom they would like to shop.
6% of customers would like to shop with Spouse, 12% of customers would like to
shop Alone, 38% of customers would like to shop with Friends, and 44% of customers
would like to shop with Family.
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Table 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.
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Chart-1.4:-The respondents based on distance from Big Bazaar to their residence:-
Interpretation
The following is the percentage of customers, how far they are located from Big Bazaar.
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9%of customers are located above 5km, 10% of customers are located within one
kilometre, 38% of customers are located between one to three kilometres, 43% of
customers are located between three to five kilometres.
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.
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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.
Interpretation
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46% of customers have perceived that Big Bazaar prices are high, 39% of
customers have perceived that Big Bazaar prices are Affordable, 15% of customers have
perceived that Big Bazaar prices are low.
Table No1.6:-Showing no of respondent’s rate the product quality of big bazaar
when compared to other retail stores
Particulars No of respondent % of respondent
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.
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Chart-1.6:-No of respondent’s rate the product quality of big bazaar when compared
to other retail stores:
Interpretation
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6% of customers have perceived that product quality is Very low, 8% of customers
have perceived that product quality is Very good, 10% of customers have perceived that
product quality is below average, 25% of customers have perceived that product quality is
above average, 51% of customers have perceived that product quality is Average.
Table No1.7:-Showing comparison of brand big bazaar with other retail stores
Particulars No of respondent % of respondent
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.
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Chart-1.7:-Comparison of brand big bazaar with other retail stores:-
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Interpretation
1%0f customers have perceived that the brand Big Bazaar is affordable compared
to other retailers, 12%of customers have perceived that the brand Big Bazaar has quality
products compared to other retailers, 14%of customers have perceived good shopping
experience in Big Bazaar compared to other retailers, 26%of customers would like to
compare brand Big Bazaar as value for money than other retailers, 37%of customers have
perceived that the brand Big Bazaar has got wide range of product compared to other
retailers.
Table No 1.8:-Showing opinion about discount offered by the Big Bazaar when
compared to other retailers.
Particulars No of respondent % of respondent
Very good 5 5
Good 34 34
Fair 55 55
Satisfied 6 6
Bad 00 00
Total 100 100
Analysis:
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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:-
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Interpretation
5%of customers have perceived that the discounts offered by the Big Bazaar are very
good, 34%of customers have perceived that the discounts offered by the Big Bazaar are
good, 55%of customers have perceived that the discounts offered by the Big Bazaar are Fair,
6% of customers have perceived that the discounts offered by the Big Bazaar are satisfied.
Table No 1.9:- Showing no of respondent purchasing product in Big Bazaar.
Particulars No of respondent % of respondent
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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.
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Chart-1.9:-No of respondent purchasing product in Big Bazaar:-
Interpretation
6% of the customers purchase All of the Above, 8% of the customers purchase
Home durables, 10% of the customers purchase personal care and cosmetics, 21% of the
customers purchase Apparels, 24% of the customers purchase all Electronic goods, 31%
of the customers purchase Food and Beverage.
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Table No 2:-Showing no of respondent are satisfied with the billing system of big
bazaar.
Particulars No of respondent % of respondent
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.
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Chart-2:- No of respondent are satisfied with the billing system of big bazaar:-
Interpretation
14% of customers are not satisfied with the billing system, 30% of customers think
that, the billing system needs to be improved, 56% of customers are satisfied with the
present billing system
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Table No 2.1:-Showing composition of factors in which they will shop in big bazaar
Particulars No of respondent % of respondent
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
they are giving more importance for products rather than location, price and parking
facility.
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Chart-2.1:-Composition of factors in which they will shop in big bazaar:-
Interpretation
Following is the percentage of respondent’s reason to shop in Big Bazaar.
3% of customer purchase because of parking facility, 14% of customer purchase
because of convenience of location, 18% of customer purchase because shopping
experience, 25% of customer purchase because of reasonable price, 40% of customer
purchase due to availability of product.
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Table No 2.2:- Showing composition of factors influencing the respondent purchasing
decision.
Particulars No of respondent % of respondent
Price 23 23
Quality 30 30
Brand 22 22
Usage 25 25
Any other 00 00
Total 100 100
Analysis: -
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.
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Chart-2.3:-Composition of factors influencing the respondent purchasing decision:-
Interpretation
Following is the percentage of factors influencing the purchase decision.
22% of customers are influenced by Price, 23% of customers are influenced by
Family, 25% of customers are influenced by Quality, 30% of customers are influenced by
friends.
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Table No 2.3:- Showing no of respondent satisfied with service of a big bazaar.
Particulars No of respondent % of respondent
5 3 3
4 29 29
3 42 42
2 16 16
1 10 10
Total 100 100
Analysis:-
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.
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Chart-2.3:-No of respondent satisfied with service of a big bazaar:-
Interpretation
Following is the percentage of satisfaction with the service provided by the Big Bazaar.
3% of customers are highly dissatisfied, 29% of customers are dissatisfied, 42% of
customers are highly satisfied, 16% of customers are neutral, 10% of customers are
satisfied.
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Table No 2.4:- Showing classification of respondent no the basis of age group.
Particulars No of respondent % of respondent
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:
From 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.
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Chart-2.4:-Classification of respondent on the basis of age group:-
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Interpretation
Following is the percentage of respondents’ age group visiting the Big Bazaar
3%of customers are belonged to less than 20 years, 10%of customers are belonged
to above 40 years, 28%of customers are between 30 to 40 years, 59% of customers are
between 20 to 30 years.
Table No 2.5:- Showing composition of respondent gender.
Particulars No of respondent % of respondent
Male 60 60
Female 40 40
Total 100 100
Analysis:-
From 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.
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Chart-2.5:-Composition of respondent gender:-
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Interpretation
40% of respondents are Female, 60% of the respondents are Male
Table No 2.6:-Showing composition of marital status of the respondent.
Particulars No of respondent % of respondent
Single 58 58
Married 42 42
Total 100 100
Analysis:-
From 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.
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Chart-2.6:- Composition of marital status of the respondent:-
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Interpretation
42% of respondents are married, 58% of respondents are Single.
Table No 2.7:-showing composition of respondent occupation
Particulars No of respondent % of respondent
Student 33 33
Professional 28 28
Business man 21 21
Home maker 7 7
Govt employee 7 7
Other 4 4
Total 100 100
Analysis:-
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.
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Chart 2.7:-Composition of respondent occupation:-
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Interpretation
4% of respondents are belonged to other group, 7% of respondents are govt
employees, 7% of respondents are home makers, 21% of respondents are Businessmen,
33% of respondents are students, 28% of respondents are professionals.
Table No 2.8:- Showing composition on annual income of respondent
Particulars No of respondent % 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
None 30 30
Total 100 100
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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:-
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Interpretation
3% of respondents have more than 5lakh income, 14% of respondents have income
between 3-5lakh, 23% of respondents have less than 150000 income, 30% of respondents
have income between 1.5-3lakh, 30% of respondent don’t have any income.
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.
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
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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
class 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.
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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:
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
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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.
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
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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.
BIBLIOGAPHY
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Marketing Management:
1) Leon G. Schiffman, Consumer Behaviour, Eight Edition, Prentice-Hal India, 2003
in New Delhi.
2) T. Srinivasa Rao, Changing Lifestyle & Consumer Behaviour, second Edition,
Deep & Deep Publication, 2009 in New Delhi.
3) Suja R. Nair, Consumer Behaviour in Indian Perspective, first Edition, Himalaya
Publishing House, 2006 in New Delhi.
4) Hawkins, Consumer Behaviour, ninth Edition, Tata McGraw-Hall, 2003 in New