DIFFERENT LOYALTY PROGRAMS IN BIG BAZAAR AND ITS VALUE TO THE CUSTOMER.

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CERTIFICATE OF APPROVAL

I hereby approve this project report entitled

DIFFERENT LOYALTY PROGRAMS IN BIG BAZAAR

AND ITS VALUE TO THE CUSTOMER.

Is submitted by

NITESH RANJAN

Roll No-

Registration No-

In partial fulfillment of the requirement for the award of

BACHELOR OF BUSINESS ADMINISTRATION

BY

KOLHAN UNIVERSITY

XITE, GAMHARIA

Department of Marketing Management

Internal Examiner External Examiner

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CERTIFICATE

This is to certify that the project entitled DIFFERENT LOYALTY

PROGRAMS IN BIG BAZAAR submitted to XAVIER INSTITUTE FOR

TRIBAL EDUCATION in partial fulfillment of the requirements for the

award of the Degree Of Bachelor Of Business Administration is an

original work done under my guidance by NITESH RANJAN bearing Roll

No- at the department of marketing for the academic session

2012-2015.

This project work is original and submitted earlier for the

award of any degree/ diploma or associate ship of any university/

Institution.

Signature

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DECLARATION

I NITESH RANJAN student of XITE, Gamharia do hereby

declare that the present internship project entitled

DIFFERENT LOYALTY PROGRAMS IN BIG BAZAAR at

MARKETING DEPARTMENT of BIG BAZAAR, JAMSHEDPUR

from 9th January to 20th February 2015 is an original piece of

work done by me in partial fulfillment of the requirement

for the award of BBA under the guidance of faculty (XITE),

Miss. Rani Sushma, and industry guide Miss BANDANA

SINGH (HR) based on the materials collected by myself.

I hereby declare that the materials or the contents

of this study has not been published by me or anyone else

anywhere.

Place :- Jamshedpur

Date :- March 7, 2015

NITESH RANJAN

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ACKNOWLEDGEMENT

I extend my special gratitude to the director Fr. E.A Augustine

S.J., our Dean Mr. A.G. Castelton, Our Principal Fr. Joseph j.

Surin S.J. and my Co-Ordinator Prof. Rani sushma for inspiring

me to take up this project.

I wish to acknowledge my sincere gratitude and indebtedness

to my project guide Miss Bandana singh, HR from Big Bazaar

for his valuable guidance and constructive suggestions in the

preparation of project report.

I extend my gratitude to BIG BAZAAR, Jamshedpur and the H.R.

Miss BANDANA SINGH and my friends Teresa Sailivi Ekka and

Vinod Kumar Singh for their encouragement, support, guidance

and assistance for undergoing internship for preparing this

project report.

NITESH RANJAN

Roll No- 13C-V205371803

Reg. No- KU1224789

XITE, GAMHARIA

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ABSTRACT

The fiercely competitive Indian retail environment has forced the retail businesses to focus extensively on customer retention of their existing customers. As a result, leading Indian retailers launched their loyalty programs offering a range of attractive tangible and intangible rewards to their customers, with an aim to retain them and enhance the retail performance. These programs not only engaged increasing number of members over the years, but also generated huge proportion of sales and profits from these members. When consumers join a loyalty program, to accumulate rewards more quickly, they are likely to concentrate their purchases on one firm, such as buying all the things from one store only. Furthermore, because loyalty program members tend to overlook negative experiences with the firm and are less likely to compare the firm with competitors, they are more likely to buy exclusively from the firm.

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CONTENTS

s.no. Topics Page no.

1. About loyalty __________________ 7-8

2. Retailing ________________________ 9-14

Organized Retailing 10

Unorganized Retailing 11-12

Retail industry India 13-14

Decision and Investment 15-17

3. loyalty programs in retail industry 18

4. About the Industry 19-25

5. Loyalty programs at Big Bazaar 26-36

Wednesday Bazaar 26

Payback card 27-29

Mahabachat offer 30-31

The Great Exchange Offer 32-33

T24 34

Profit club card 35-36

6. Research methodology 37-39

7. Objectives 40

8. Survey report 41-50

9. Daily findings 51

10. Suggestions of customer 52

11. Conclusion & References 53

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What is loyalty?

“Loyalty in day-to-day life, implies an unselfish belief

in institutions or unswerving fidelity in marriage, or emotional

commitment to friends. Loyalty also suggests monogamy: one

choice above all others.”

“Loyalty is faithfulness or devotion to a person, country, group,

or cause. (Philosophers disagree regarding what can

be objects of a person's loyalty. Some, argue that one can be

loyal to a broad range of things, while others argue that it is

only possible for loyalty to be to another person and that it is

strictly interpersonal.)” [1]

Another definition is: “A deeply held commitment to rebuy or re- patronize a

preferred product/service consistently in the future, thereby causing repetitive behavior reflecting purchase of the brand despite situational influences and marketing efforts having the potential to cause a switching behavior.“ Loyalty is, in simpler terms, helps build relationships. It

requires that companies view customers as people first and

consumers second. Trust, commitment, ethical practices,

fulfillment of promises, mutual exchange, emotional bonding,

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personalization and customer orientation have been reported

to be the key elements in the relationship building process. [2].

In the language of Marketing :

Businesses seek to become the objects of loyalty, in order to have their customers return. Brand Loyalty is a consumer's preference for a particular brand and a commitment to repeatedly purchase that brand in the face of other choices. Other businesses establish loyalty programs, which offer rewards to repeat customers, and often allow the business to keep track of their preferences and buying habits. [3]

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Q. What is Retailing?

The word retail is derived from the French word ‘retailer’

meaning ‘to cut a piece off’ or ‘to break bulk’. In simple terms,

it implies a first-hand transaction with the customer.

Retailing involves a direct interface with the customer and the

coordination of business activities from end to end – right from

the concept or design stage of a product or offering, to its

delivery and post- delivery service to the customer. The

industry has contributed to the economic growth of many

countries and is undoubtedly one of the fastest changing and

dynamic industries in the world today.

Retailing means selling products in small volumes directly to

individuals and it is emerging as a sunrise industry in India. It is

presently the largest employer after agriculture and it

generates more than 10% of GDP in India. The customer

satisfaction and brand loyalty are pre-eminent. The success of

the retail stores depends on customer’s reaction to the retailing

mix to earn more profits, to increase the volume of turnover,

market’s share, image, status and lastly its survival [4]

The Retail market is divided into two major categories :

1. Organized Retailing

2. Unorganized Retailing

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ORGANISED RETAILING

Organized retailing, in India, refers to trading activities

undertake by licensed retailers, that is, those who are

registered for sales tax, income tax, etc. These includes are

publicly traded supermarkets, corporate – backed

hypermarkets and retail chains, and also the privately owned

large retail business.

Organized retailing was absent in most rural and small towns of

India in 2010. Supermarkets and similar organized retail

accounted for just 4% of the market.

One report estimates the 2011 Indian retail market as

generating sales of about $470 billion a year, of which a

minuscule $27 billion comes from organized retail such as

supermarkets, chain stores with centralized operations and

shops in malls. The opening of retail industry to free market

competition, some claim will enable rapid growth in retail

sector of Indian economy. Others believe the growth of Indian

retail industry will take time, with organized retail possibly

needing a decade to grow to a 25% share.

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UNORGANIZED RETAILING

Unorganized retailing, on the other hand, refers to the traditional

formats of low – cost retailing, for example, the local corner shops,

owner manned general stores, paan/beedi shops, convenience

stores, hand cart and pavement vendors, etc.

Most Indian shopping happens in open market or numerous small

grocery and retail shops, Shoppers typically wait outside the shop,

ask for what they want, and can not pick or examine a product

from shelf. Access to the shelf or product storage area is limited.

Once the shopper requests the food staple or household product

they are looking for, the shopkeeper goes to the container or shelf

or to the back of the store, brings it out and offers it for sale to the

shopper. Often the shopkeeper may substitute the product,

claiming that it is similar or equivalent to the product the consumer

is asking for. The product typically has no price label in these small

retail shops; all packaged products must display the maximum

retail price above which the product cannot be sold. It is a criminal

offence to do so. The shopkeeper can price the food staple and

household products arbitrarily, and two consumers may pay

different prices for the same product on the same day but never

will those price be above the maximum retail price. Price is rarely

negotiated between the shopper and the shopkeeper usually do

not have a choice to make an informed decision between

competitive products.

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0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Percentage of Organised and Unorganized Retailing Globally

Organised Retailing

Unorganized Retailing

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Retail industry in India.

The retail scenario in India is unique. Much of it is in the

unorganized sector, with over 12 million retail outlets of

various sizes and formats. Almost 96% of these retail outlets

are less than 500 sq.ft. In size, the per capita retail space in

India being 2 sq.ft. compared to the US figure of 16sq.ft. India’s

per capita retailing space is thus the lowest in the world. Most

of them are independent and contribute as much as 94% to

total retail sales.

The growth and development of organized retailing in India is

driven by two main factors – lower prices and benefits the

consumer can’t resist.

Also because of the increasing no. of nuclear families, growing

size of the working women segment, greater work pressure and

increased communicating time, convenience has become a

priority for Indian consumers. They want everything under one

roof for easy access and multiplicity of choice.

PROSPECTS OF INDIAN RETAILING

Indian Grocers were perhaps among the first in the world to

acquire professional retailing skills. There is the old story of

good retail grocer and the bad grocer in India.

Once upon a time there were two grocers. One was perceived

to be good and the other was considered bad. The good one

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always used to weigh his cereals, pulses, grams, etc. in such a

way that if he had to weigh a kilogram he would initially place

in the weighing balance produce less than a kilogram and keep

adding to it until it reached the required weight. The bad

retailer, on other hand, always rather unconsciously placed

much more and then kept removing stuff from the scales until

it weighed a kilogram. The good retailer had actually acquired

such skills to create a positive image in the mind of the

customers!

Long ago, the father of the Nation, Mahatma Gandhi

realized the importance of the customer for the retailer; he is in

fact the first to emphasize on the importance of the customer

Relationship Management practices in India. What he said

about the Importance of the customer is famous in the world.

It goes like this :

“ The customer is the most important person on our premises.

He is not dependent on us, we are dependent on him.

He is not an interruption of our work, he is the purpose of it.

We are not doing him a favor by serving him;

He is doing us a favor by giving us the opportunity to do so.”

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DECISIONS and INVESTMENTS [5]

Until 2011, Indian central govt. denied foreign direct

investment (FDI) in multi – brand retail, forbidding foreign

groups from any ownership in supermarkets, convenience

stores or any retail outlets. Even single – brand retail was

limited to 51% ownership and a bureaucratic process.

In November 2011, India’s central govt. announced retail

reforms for both multi – brand stores and single – brand stores.

These market reforms paved the way for retail innovation and

competition with multi – brand retailers such as Walmart,

Carefour and Tesco, as well single – brand majors such as IKEA,

Nike and Apple. This announcement sparkled intense activism,

both in opposition and support of the reforms. In December

2011, under pressure from the opposition, Indian govt. placed

the retail reforms on hold till it reaches a consensus.

On 14 September 2012 , the govt. of India announced the

opening the FDI in multi – brand retail, subject to approvals by

individual states. This decision was welcomed by economists

and the markets, but caused protests and an upheaval in India’s

central government’s political coalition structure. On 20

September 2012, the govt. of India formally notified the FDI

reforms for single and multi – brand retail, thereby making it

effective under Indian law.

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On 7 December 2012, The Federal Government of India allowed

51% FDI in multi – brand retail in India. The govt. managed to

get the approval of multi – brand retail in the parliament

despite heavy uproar from the opposition (the NDA and leftist

parties.) Some states will allow foreign supermarkets like

Walmart, Tesco and Carefour to open while other states will

not.

On May 2012, Future Group announced 50.1% stake sale of its fashion chain Pantaloons to Aditya Birla Group in order to reduce its debt of around INR 8000 crores. To do so, Pantaloons fashion segment was demerged from Pantaloons Retail India Ltd; the latter was then merged to another subsidiary—Future Value Retail Ltd—and rechristened Future Retail Ltd.

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A 2012 PWC report states that modern retailing has a 5%

market share in India with about $27billion in sales, and is

growing at 15 to 20% per year. There are many modern retail

format and mall companies in India. The Report says that in

2013 Future Group was having the market share of 916 crore

(US$140 million) in India per month by sales.

In 2014 Amazon and Future Group has jointly signed a deal to

sell goods online. Both firms will also develop a new line of

products across categories to be exclusively sold at Amazon and

Future Group’s retail stores. Future Group will sell more than

45 own labels of apparel initially, followed by in-house brands

in the home, electronics and food categories, while Amazon will

handle order fulfillment and customer service for the

merchandise on its portal.

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Q. Why loyalty programs used by retail Industry?

For decades, business managers focused on strategies and programs to acquire as many customers as possible without any focus on retaining them. But, businesses have now realized that their success lies in customer retention and building customer loyalty. Research findings have also supported this realization that it costs up to five times more to acquire a new customer than to retain an existing customer and a 5% reduction in the customer defection rate can increase profits by 25% to 85% depending on the industry. All these factors have forced retail managers to think of some program to develop log term value-laden relationship with their existing customers and retain them with an ultimate aim of achieving organizational goals. The result was the launch of ‘loyalty programs’ which is defined as “structured marketing efforts that reward, and therefore encourage, loyal buying behavior — behavior which is potentially of benefit to the firm.” Members of these programs get loyalty card that identifies the card holder as a member in a loyalty program. These members receive a combination of attractive tangible rewards (gifts, discounts, reward points etc.) and intangible rewards (invitation to special events like fashion shows, exclusive preview of new items etc.) to invoke customer loyalty.

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ABOUT THE INDUSTRY [6]

Future Group is an Indian private conglomerate headquartered in Mumbai. The company is known for having a significant prominence in Indian retail and fashion sectors, with popular supermarket chains like BIG BAZAAR and Food Bazaar, lifestyle stores like Brand Factory, Central etc. and also for having notable presence in integrated foods and FMCG manufacturing sectors. Future Retail (initially Pantaloons Retail India Ltd (PRIL)) and Future Lifestyle Fashions, two operating companies of Future Group, are among the top retail companies listed in BSE with respect to assets, and in NSE with respect to market.

Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one of India's leading business houses with multiple businesses spanning across the consumption space. While retail forms the core business activity of Future Group, group subsidiaries are present in consumer finance, capital, insurance, leisure and entertainment, brand development, retail real estate development, retail media and logistics.

Led by its flagship enterprise, Pantaloons Retail, the group operates over 16 million square feet of retail space in 73 cities and towns and 65 rural locations across India. Headquartered in Mumbai (Bombay), Pantaloons Retail employs around 30,000

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people and is listed on the Indian stock exchanges. The company follows a multi-format retail strategy that captures almost the entire consumption basket of Indian customers. In the lifestyle segment, the group operates Pantaloons, a fashion retail chain and Central, a chain of seamless malls. In the value segment, its marquee brand, Big Bazaar is a hypermarket format that combines the look, touch and feel of Indian bazaars with the choice and convenience of modern retail.

In 2008, Big Bazaar opened its 100th store, marking the fastest ever organic expansion of a hypermarket. The first set of Big Bazaar stores opened in 2001 in Kolkata, Hyderabad and Bangalore.

The group's specialty retail formats include supermarket chain – Food Bazaar, sportswear retailer - Planet Sports, electronics retailer - eZone, home improvement chain - HomeTown and rural retail chain, Aadhaar, among others. It also operates popular shopping portal -www.futurebazaar.com

Big Bazaar is the chain of retail stores of the big banner Pantaloon Retail (India) Ltd., Mr. Kishore Biyani as its group CEO and MD, headquartered in Mumbai. Big Bazaar was launched in 2001 with four stores established in Calcutta, Indore, Bangalore, and Hyderabad and has been developing rapidly by spreading its wings all over India. A great deal of stores numbering 250 reliable stores have been established in 100 cities in India till Feb 2015. The Big Bazaar has been opening innovative sections, such as electronic bazaar, food bazaar, and

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furniture bazaar. Moreover, the customer friendly ambience and the organized retailing of products also make Big Bazaar one of the successful retail companies in India. It offers all time discounts and promotional avenues to its customers.

BUSINESSES

Future Group is a corporate group and nearly all of its

businesses are managed through its various operating

companies based on the target sectors. For e.g., retail

supermarket/hypermarket chains Big Bazaar, FBB, Food Bazaar,

Food Hall, Hometown etc. are operated through its retail hand,

Future Retail Ltd, while its fashion outlets Brand Factory,

Central, Planet Sports etc. are operated via another of its

subsidiaries, Future Lifestyle Fashions. With these many fashion

outlets and supermarket, the group also promotes respectively,

its fashion brands like Indigo Nation, Spalding, Lombard, Bare

etc., and FMCGs like Tasty Treat, Fresh & Pure, Clean Mate,

Ektaa, Premium Harvest, Sach etc. It also has operating

companies to cater specifically to internal financial matters and

consulting within its group of companies

JOINT VENTURE PARTNERSHIPS

GENERALI GROUP

Generali is an Italian insurance company, having business in India through a joint venture with Future Group under the

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brand name Future Generali Insurance. Future Generali operates in India having through two primary legal entities namely Generali India Life Insurance Co. Ltd.(Life Insurance) and Generali India Insurance Co. Ltd.(Non-Life Insurance). Since 2013, Future Generali held talks of a possible merger with Larsen & Toubro Ltd to form a general insurance company but a year later, on April 22, Future Group backed out of merger leading to premature closure of the talks

STAPLES INC.

Staples Inc. ,a United States based office supply retailer, has a presence of over nine cities in India under the joint venture with Future Group. As of April 2013, Future Group has 60% stake in the partnership.

CELIO

French fashion Celio entered Indian markets in 2008 through a 50:50 joint venture with Future Group's then Retail hand, Pantaloons Retails India Ltd (now Future Retail Ltd). On November 2013, Celio hiked its stake in the joint venture to 65%.

CLARK

C&J Clark International Ltd. is a UK-based footwear and accessories retailer. The Future Group has entered into a 50:50 joint-venture (JV) to form 'Clarks Future Footwear Ltd'. The JV launched its first (1,600 sq ft.) stand-alone store in Connaught Place, Delhi on 19 April 2011. The brand seeks to gain a share of the premium segment in this category.

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Recent Developments

Big Bazaar, a part of the Future Group, is currently driving a number of initiatives.

Future Money, a credit facility is in an experimental stage in several outlets.

Cleartrip for travel and tours and Talwalkar’s for gym and health club services

have also been launched in many stores recently. With a view to bringing value to

more people, Big Bazaar is taking its brand to Tier II and Tier III towns as well. Big

Bazaar is also using the huge footfalls to its stores to test new concepts and ideas.

The customer response this generates helps in refining a launch before a full-

fledged roll out.

Big Bazaar timeline [7] 2001

Three stores launched within a span of 22 days in Kolkata, Bangalore and Hyderabad[8]

2002

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

Enters Tier II cities with the launch of the store in Nagpur

Welcomes its 10 millionth customer at its new store in Gurgaon

2004

Wins its first award and national recognition. Big Bazaar and Food Bazaar awarded the country’s 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 turnover on a single day

2005

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Implementation of SAP and pilots a RFID project at its central warehouse in Tarapur

Launch of a shopping program: the Big Bazaar Exchange Offer, inviting customers to exchange household junk at Big Bazaar

Electronic Bazaar and Furniture Bazaar are launched

Big Bazaar and ICICI Bank launched ICICI Bank-Big Bazaar Gold credit card program to reward its loyal customers.

2006

Mohan Jadhav set a national record at Big Bazaar Sangli with a Rs 137,367 shopping bill. The Sangli farmer becomes Big Bazaar’s largest ever customer.

Launches Shakti, India’s first credit card program tailored for housewives

Navaras – the jewellery store launched within Big Bazaar stores

2007

The 50th Big Bazaar store is launched in Kanpur

Partners with Futurebazaar.com to launch India's most popular shopping portal

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

New section, Fashion@Big Bazaar, starts

Voted among the top ten service brands in the country in the latest Pitch-IMRB international survey

Initiates the Mega Saving "Monthly Bachat Bazaar" campaign, to provide deals on groceries and food items during the first week of every month.

2009

Opens its second store in Assam at Tinsukia

Initiates Maha Annasantarpane program at its stores in South India – an initiative to offer meals to visitors and support local social organizations

Mahendra Singh Dhoni and Asin, youth icons of India, were chosen as the brand ambassadors of Big Bazaar

Announced the launch of 'The Great Exchange Offer'

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Formed a joint venture with Hidesign to launch Holii, a new brand of handbags, laptop bags and other accessories.

2010

Future Value Retail Limited is formed as a subsidiary to spearhead the group’s value retail business through Big Bazaar, Food Bazaar and other formats.

Wins CNBC Awaaz Consumer Awards for the third consecutive year. Adjudged the Most Preferred Multi Brand Food & Beverage Chain, Most Preferred Multi Brand Retail Outlet and Most Preferred Multi Brand One Stop Shop

Opens its third store in Kanpur at Z Square Mall

Vidya Balan was chosen as the brand ambassador of Big Bazaar's Price Challenge exercise

Ranked six among the Top 50 Service Brands in India.[9]

2011

Enters the rural wholesale and distribution business through 'Aadhaar Wholesale' store at Kalol, Gujarat.

Big Bazaar has come up a new logo with a new tag line: 'Naye India Ka Bazaar'.[10]

200th store opened in India[11]

Future Group launched Foodhall – a premium food destination across 10 metros in India[12]

Entered into an agreement with Hindustan Unilever to co-develop and co-brand bakery products, which would be sold exclusively at Big Bazaar stores.[13]

2012

Entered into a five-year multi-million dollar deal with Cognizant Technology Solutions for IT infrastructure services that support Future Group's network of stores, warehouses, offices, and data centers.[14]

Sakshi Tanwar & Ram Kapoor chosen brand ambassadors to promote more turnover.

Partnered with Disney to launch "Kidz Cookies" for kids across India.[15]

2013

Started Bigbazaar Direct a franchisee program.

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Loyalty schemes at Big Bazaar

WEDNESDAY BAZAAR

'Hafte Ka Sabse Sasta Din' (Cheapest Day of the Week) That was the concept of Wednesday Bazaar when it was promoted. This was Initiated in January 2007, the idea behind this scheme was to draw customers to stores on Wednesdays, the day when consumer presence is usually less. According to the chain, the aim of the concept was 'to give homemakers the power to save the most'. The Bazaar gives lots of offers and Discounts on different sections Like FoodBazaar, FashionBazaar, ElectronicBazaar, Apparels etc.

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PAYBACK CARD PAYBACK, India's largest multi-brand loyalty program. PAYBACK

offers its members a multitude of benefits with more than 50

partner brands participating in the PAYBACK Network across

categories in-store as well as online. The PAYBACK Network

includes Big Bazaar, HPCL, ICICI Bank, MakeMyTrip.com,

Vodafone, Pantaloons, Central, Ezone, Easy Cabs, Home Town,

Brand Factory, UniverCell, bookmyshow.com and many more.

With such a varied portfolio of partner brands, PAYBACK

Members can earn points during everyday shopping and

redeem their points for attractive rewards at select partner

brands in-store and online.

DISCOVER YOUR PAYBACK ADVANTAGES!

Start earning points with your PAYBACK Card / Linked Mobile

number at leading partner brands across categories in-store as

well as online

Benefit from exclusive offers and Bonus Coupon Offers from

leading PAYBACK Partner Brands

Attractive possibilities to redeem your points across a wide

range of rewards, view the PAYBACK Reward Catalogue.

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ACCESS PAYBACK ANYTIME, ANYWHERE!

Now connect with PAYBACK whenever, wherever you want to!

Download PAYBACK Mobile App (Android and ios) or visit our

mobile website @m.payback.in to check your point balance,

activate your personalized bonus coupons and locate PAYBACK

Partner Brands nearest to you, on your mobile.

PARTNER BRANDS:-

Upto 7 °P per Rs.100 2°Points per Rs. 200 4 °Points per Rs. 100

2°Points per Rs. 200 20°Points per Rs.100 8 °Points per Rs. 100

2°Points per Rs. 100 1°Point per Rs. 25 3°Points per Rs. 200

4 °Points per Rs. 100 4 °Points per Rs. 100 2°Points per Rs. 200

3°Points per Rs. 100 4 °Points per Rs. 100 4°Points per Rs. 200

1 °Point per Rs. 100 Upto 6 °Points Upto °10 Points

°P on Net Banking trxn 8°Points per Rs.100 10 °Points per Rs. 100

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Upto 3 °Points 4°Points per Rs. 100 1°Point per Rs. 100

8°Points per Rs.100 Upto 6000 °Points 8 °Points per Rs. 100

Transfer Points 3 °P per every Rs.200 Redeem your °Points

Now use both you ICICI Bank payment card and your PAYBACK card at a PAYBACK partner and earn points on both of them for the same spend.

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Maha Bachat Offer

The concept of 'Maha Bachat' (Mega Saving) was introduced in the year 2006 as a single day campaign with promotional offers across the company outlets. Over the years, the concept has grown to become a six-day biannual campaign. During the campaign, offers are given in all the value formats including Big Bazaar, Food Bazaar, Electronic Bazaar, Furniture Bazaar, Fashion bazaar. While our Internship we face to this MAHA BACHAT offer for 3 Days (24th JAN ‘15 to 26th JAN ‘15). For this Company do a lots of investment through Ads. And Promotions. The Customer are benefited in different forms. The concept behind this is To Connect to the various new or regular customers through the offers.

The news report of moneycontrol on this Maha Bachat Offer of Big Bazaar:-

Big Bazaar 'Maha Bachat' offer. Big Bazaar Maha Bachat offer now gets bigger than before. Online & Offline shopping facility by www.futurebazaar.com 10Google +10 Continuing with its efforts to provide the best bargain to Indian consumers, Big Bazaar , the popular hypermarket concept of Pantaloons Retail (India) Limited and part of the Future Group, today announced the most anxiously awaited bi-annual 5-Day Maha Bachat offer across the country, starting 11 August and continuing till the 15 August. Never before in the history of India, a consumer campaign of such

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large magnitude has been witnessed. Over 100 stores of different Value formats including Big Bazaar, Food Bazaar, Electronic Bazaar and Furniture Bazaar - catering to the entire needs of a consumer, will be part of the Mega 5-Day Maha Bachat offer. From daily household needs of food and grocery to apparels, footwear, toys, luggage, kitchenware, bed and bath wear, home decor, furniture, electronics and fine gold jewelry - the 5-Day Maha Bachat offer will have an exciting array of attractive deals and discounts, ensuring something for everyone in the family to shop for and maximum Value for Money for each of its customer. For the first time, Pantaloon Retails 22-carat fine jewelry store format Navaras will join the club with some novel offers. Navaras, the hallmark jewelry store has 31 stores across 25 cities as Shop in Shop within Big Bazaar. Additionally for these 5 days, Future Money, part of the Future Capital Ltd ., will offer attractive finance scheme on electronic and furniture goods with easy EMI options and other benefits. For the net savvy citizens, Big Bazaar will extend the Maha Bachat offers on the e-retailing site www.futurebazaar.com . While for those who are not very net savvy and those who don’t like to wait in long queues, Future Bazaar will set up exclusive kiosks outside Big Bazaar stores in cities like Mumbai, Delhi, Chennai, Lucknow and Trivandrum, for the consumers to select their shopping needs, pay and get it all delivered at home. Read more at: http://www.moneycontrol.com/news/business/big-bazaar-maha-bachat-offer_297498.html?utm_source=ref_article

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The Great Exchange Offer

Introduced on 12 February 2009, 'The Great Exchange Offer'

allows customers to exchange their old goods for Big Bazaar

coupons. The coupons can be redeemed later for buying brand

new goods from Big Bazaar outlets across the nation

The News report of moneycontrol on Big Bazaar The Great

Exchange offer:-

Big Bazaar presents The Great Exchange Offer Big Bazaar presents The

Great Exchange Offer. Bring anything OLD and take anything NEW!

00Google +00 Big Bazaar presents a unique exchange offer Bring

anything old and take anything new! offer. The offer will start on 15th

February and will be on till 11th March at all the stores, across the

country. Under this exchange offer old garments, utensils, furniture,

plastic ware, newspapers or just about anything that is unwanted can

be exchanged. These goods will be weighed and valued and the

customers will be given exchange coupons. One can avail great

shopping value by exchanging any old item in any condition, and shop

at Big Bazaar in return. Commenting on this occasion, Mr. Sanjeev

Agrawal, President Marketing, Pantaloon Retail (India) Ltd., said This

exchange offer is a unique way of creating Best out of Waste. Offers like

this give a chance to the housewives to get rid of old and unwanted

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clutter and refurbish their houses. The products are weighed and valued

against attractive prices as below Clothes

Rs.50 per kg Newspaper

Rs.25 per kg Plastics/utensils/leather goods

Rs.75 per kg Footwear/ luggage

Rs.100 per kg Pet/ beer bottles

Rs.15 per kg Tyres

Rs.50 per kg Furniture

Rs.75/- per kg Others

Rs.20 per kg Big Bazaar will weigh the junk brought by the customer;

value it as per the rates mentioned above and issue exchange coupons

for that value. The customer will have to shop for 4 times the value of

the coupon. The coupon can be redeemed against apparel, plastics,

utensils, linen, luggage, footwear, toys, furniture and much more. Big

Bazaar also offers direct exchange on mobile and electronic goods

through out the offer period. Customers can buy brand new mobiles and

electronic goods in exchange of their old ones, and avail of attractive

discounts on their new purchases. Living up to its motto of Is se sasta

aur accha kahin nahin", this is yet another way to reach out to its

customers and give them value for their money

Read more at: http://www.moneycontrol.com/news/business/big-

bazaar-presents-%91the-great-exchange-offer%92-

_267371.html?utm_source=ref_article

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T24 Sim card Talk24 this is a full form of T24.

The sim card is made for Big Bazaar under a loyalty program in

which the customer get free recharges on every purchase of

Rs.400 and above. The customer can avail this facility while

shopping and grab the free Talk time recharge of Rs.10 to

Rs.101. The sim card use the network of Tata Docomo and that

is the reason that the sim can be used in India as well as out of

the country. The sim also helps the customer by sending

updates about Big Bazaar offers and Discounts to selected

customers through text messages for free of cost.

The Big Bazaar deal with Tata Telecommunication for

launching the sim T24 in ____

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PROFIT CLUB CARD At Big Bazaar we have always tried understanding our customer’s better keeping in mind their love for better bargains and getting maximum value out of each rupee they spend. This has always pushed us to think innovatively and striving to continuously giving our customers additional reasons to shop.

Times are tough and we understand that this is the time when we need to stand by our customers. Hence, to share the burden of running our customer’s household the idea of Big Bazaar PROFIT CLUB was born.

Big Bazaar PROFIT CLUB is the most innovative product that the Indian Retail Market has ever witnessed. It offers an unmatched value proposition to its customers. A unique membership program where one can pay Rs. 10,000 and can shop for Rs. 1000 per month for the next 12 months i.e Rs. 12,000 over a period of 12 months. After the huge success of ‘Profit Club Rs 10000’, Big Bazaar launches its new program “Profit Club Rs 5000 card”. On paying Rs 5000, customers will get a membership card topped up with Rs 6000, with which they can shop for Rs 400 every month for 15 months This card can be used across 240 + Big Bazaars, Food Bazaars and fbb- Fashion at Big Bazaar stores across the country.

In case you miss shopping in a particular month, the amount can be carried forward to the next month.

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Members of the Big Bazaar PROFIT CLUB will also receive the benefit of existing offers on their Payback cards and T24 mobile services.

The Big Bazaar PROFIT CLUB Card can be used as a Gift Card for your friends and family, like children living away from home or parents residing in other cities etc.

The Big Bazaar PROFIT CLUB Card can also serves as an excellent Employee Incentive program for your employees . It can also be extended to your business partners as a gift.

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RESEARCH METHODOLOGY

The basic concept of Research Methodology refers to the way in which companies conduct their research and how they collect the data they need. Whenever a company or Organization needs to investigate a particular area of their business dealings, they need to adapt the most suitable research methodology for the job.

MARKETING RESEARCH

Market research provides information and reduces risk by helping executives make rational choices under conditions of less-than-perfect knowledge. Marketing research includes fact-finding and management counseling.

According to PHILIP KOTLER,

“Marketing Research is a systematic problem analysis, model

building and fact finding for the purpose of improved decision

making and control in the marketing of goods and services.”

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Marketing Research is often partitioned into two sets of categorical pairs, either by target market or alternatively, by methodological approach:

Qualitative Marketing Research, and

Quantitative Marketing Research

RESEARCH METHODS

The goal of the Research Process is to produce new knowledge and data findings about the selected area or the given fields related to the completion of goals and targets.

Types of DATA Collection-

Primary Data

Primary data is information gathered from original sources for a specific purpose or objective. Some techniques for gathering primary data include:

Surveys

Observation

Field Experiments

Secondary Data

Secondary data, is data collected by someone other than the user. Common sources of secondary data for Social Science include Censuses, Organizational records and Data

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collected through qualitative methodologies or qualitative research.

Survey Method: In order to investigate the loyalty towards Big

Bazaar, Jamshedpur city is taken up through the judgment survey method, and 100 surveys are considered to pool up the opinions by convenience survey through a well-structured questionnaire.

Sampling unit: The Big-bazaar customers in Jamshedpur city

Sampling size: 100 Big-bazaar customers are taken up for the

study from Big Bazaar, Jamshedpur city.

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OBJECTIVES:

1. To measure the opinions of customer towards the shopping at Big Bazaar on the basis of product quality, price, purchase decision, perceived quality, store environment and product design.

2. To assess the customer satisfaction on Big Bazaar.

3. To measure customer’s brand loyalty towards Big Bazaar.

4. To suggest specific steps to improve brand loyalty of Big Bazaar. Scope of the study The study is done on Big-bazaar customers

in Jamshedpur city.

Data sources Primary data: Primary data is collected from the

Big-bazaar customers in Jamshedpur city through a well-

designed questionnaire.

Secondary data Secondary data is collected from books,

magazines, company reports and some websites.

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SURVEY REPORT: DONE AT BIG BAZAAR STORE,

JAMSHEDPUR on 100 customers. (Jan – Feb 2015)

16%

10%

40%

17%

17%

customer visiting BIG BAZAAR

WEEK

MONTH

WEDNESDAYS

During Big Offers

Never

36%

44%

12% 8%

Customers being part of Big Bazaar Loyalty scheme

T24 SIM

PAYBACK CARD

PROFIT CLUB CARD

None

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28%

40%

12%

16% 4%

Reason for Shopping at BIG BAZAAR

Single Window Shopping

Different Brands at one place

Loyalty schemes

Discounts and Offers

None

60%

0%

12%

24%

4%

Needs of Consumer while Shopping

Quality & Quantity

After Sales & Service

Discounts & Offers

Convenience

Hardly Matters

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20%

64%

12% 4%

Areas of Loyalty scheme

Frequently use in every storewhich is associated

Uses only at Big Bazaar

Was using but now I don't

I don't have Cards

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USAGE OF LOYALTY CARDS

80%

20%

Having Loyalty cards but not using

Using

Not Using

76%

24%

Was using but now don't

Using

Not Using

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56%

44%

Savings at Big Bazaar through Loyalty vouchers & cards

Yes

No

72%

28%

Buying of product if extra point offered

Yes

No

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60%

40%

Spending less money at store in absence of Loyalty cards

Yes

No

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FEEDBACK FOR LOYALTY SCHEMES

44%

48%

8%

No change for the sake of Loyalty Scheme

Agree

May be

Disagree

24%

24%

52%

Unknown about the Loyalty schemes of Big Bazaar

Agree

May be

Disagree

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52%

20%

28%

Substantial savings on bills due to the Discount vouchers offered by Big Bazaar

under Loyalty Scheme

Agree

May be

Disagree

60% 24%

16%

Shopping at any stores wherever better discounts offered

Agree

May be

Disagree

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FEEDBACK FOR T24 SIM

36%

24%

40%

Doing Recharge if I offered free TalkTime on Shopping Bills

Agree

May be

Disagree

44%

16%

40%

Satisfied with T24 Mobile Service & Network

Agree

May be

Disagree

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36%

20%

44%

Keeps me udpate for offers and discounts at Big Bazaar and help me to remain loyal

through Free text message alert

Agree

May be

Disagree

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DAILY FINDINGS The customers are not much aware of the loyalty schemes of big

bazaar or some other stores. They shop for 10,000/- or above but

they don’t want to make their profit club cards, some of the

excuses we got form them are as follows:-

1. We are not a regular customer.

2. This is a temporary shopping for me; I don’t belong to this

city.

3. Sorry dear I am already late while shopping, so doesn’t have

that much of timing to make these things.

4. Sorry dear this time I have done the shopping. So, definitely

next time I will make the card for my own benefits.

5. I don’t want to invest my money for 12months.

6. This is just a scheme to attract the customer, not worth of it.

7. Dear I don’t need of these loyalty schemes I doesn’t come for

shopping.

8. Sorry I have lot many other loyalty cards if these are valid here

then it’s okay otherwise leave it don’t want to store many

shopping cards.

9. These are the things to fool the customers; I am earning lots

of money so I don’t need it.

10. Dear I don’t have that much money so I can’t be able to

purchase these cards. If this can be redeemed in this shopping

I may think of these cards otherwise I can’t hold it for 12

months.

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SUGGESTIONS OF CUSTOMERS

WHILE DOING SURVEY

1. Stocks are out which they want at store, so the stock

should be well maintained.

2. The categories in Apparels are limited, wants something

new according to the new fashion.

3. Exchange offers which Big Bazaar offers to the customer is

not worth of it.

4. The points are not valuable according to the shopping

amount in the payback card scheme.

5. Not satisfied with the offers because they are getting the

same product at same or less price outside on traditional

retailing center.

6. Jamshedpur citizens complain about the inconvenience

they face due to the distance of store from the city.

7. The quality and taste of food is not good, it needs

improvement.

8. Fully satisfied with the T24 network outside India too they

are having the service but needs some improvement in

Jamshedpur area.

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CONCLUSION

The retail industry in India is likely to grow 15-20% every year but then

also the India fallen down 6 rank downwards in the world ranking

(Source by GRDI) just not only because of the different govt. policies

which needs some amendments but also because the Retailers are not

able to understand their customer and failed to make a strong bond

between them. The big bazaar is the top most retail industry in India

with 251 stores in 101 cities Including Rourkela Odisha recently opened

in December 2014. The customers are interested to do shopping at one

place where they get all the products from pin to fin under one roof so

they rush to the Big Bazaar. In this manner they once come in the store

then they must come again and become our regular customer, for this

the loyalty programs are offered to them. Some customers are not

aware of these loyalty programs but then also they visit the store

frequently and do their shopping which is strange to hear. Its time to

understand the customers want and to increase the sales and retention

of consumer.

References :

1. www.wikipedia.com/bigbazaar

2. Levitt,1986; Gronroos, 1994; Morgan,1994; Gummesson,1994;

Bejou et al,1998

3. 4. Retail management book, Gibson G. Vedamani

5. www.financialservice.com , www.moneycontrol.com

6. www.scholargoogle.com ,

7. www.bigbazaar.com

8. www.wikipedia.com/bigbazaar