CUSTOMER RELATIONSHIP MANAGEMENT

IN RETAIL SECTOR

A Summer Internship Project for

Master of Business Administration

By

KRITIKA KUMARI

Under the guidance of

MR. PRASHANT KUMAR MRS. NEHA ZAIDI

AREA HEAD ASSISTANTPROFESSOR

BIG BAZAAR, PATNA SOB, G.U., GBN

July 2016
 CUSTOMER RELATIONSHIP MANAGEMENT
IN RETAIL SECTOR

Master of Business Administration

By

KRITIKA KUMARI

July 2016

2
 CUSTOMER RELATIONSHIP MANAGEMENT
IN RETAIL SECTOR

By

KRITIKA KUMARI

Under the guidance of

MR. PRASHANT KUMAR MRS. NEHA ZAIDI

AREA HEAD ASSISTANTPROFESSOR

BIG BAZAAR, PATNA SOB, G.U., GBN

18 JULY 2016

3
 Certificate of Approval

The following Summer Internship Project Report “TO STUDY CUSTOMER

RELATIONSHIP MANAGEMENT IN RETAIL SECTOR." is hereby approved as a
certified study in management carried out and presented in a manner satisfactory to
warrant its acceptance as a prerequisite for the award of Master of Business
Administrationfor which it has been submitted. It is understood that by this approval the
undersigned do not necessarily endorse or approve any statement made, opinion
expressed or conclusion drawn therein but approve the Summer Internship Project
Report only for the purpose it is submitted to the Summer Internship Project Report
Examination Committee for evaluation of Summer Internship Project Report

Name Signature

1. Faculty Mentor _Neha Zaidi_________________ ___________________

2. Industry Mentor _Mr. Prashant Kumar__________ ___________________

4
 Certificate from Summer Internship Project Guides

This is to certify that Ms.KRITIKA KUMARI student of the Master of Business

Administration has worked under our guidance and supervision. This Summer
Internship Project Report has the requisite standard and to the best of our knowledge no
part of it has been reproduced from any other summer Internship project, monograph,
report or book.

Prof. Neha Zaidi Mr. Prashant Kumar

Asst Professor Area Head
Galgotias University (SOB), BIG BAZAAR
Gautam Budh Nagar Patna (Bihar)

5
 Certificate from Summer Internship Project Guides

This is to certify that Ms KRITIKA KUMARI a student of the Master of Business

Administration has worked under our guidance and supervision. This Summer
Internship Project Report has the requisite standard and to the best of our knowledge no
part of it has been reproduced from any other summer Internship project, monograph,
report or book.

Neha Zaidi Mr. Prashant Kumar

ASSISTANT PROFESSOR Area Head
Golgotia’s University (SOB) BIG BAZAAR
Patna (Bihar)

18 JULY 2016

6
 Declaration
I Kritika Kumari. Enroll. No. 1504201087, Student of MBA (DUAL), Galgotias
University, Greater Noida, hear by declare that summer report training report on “A study
of customer relationship Management in retail sector by BIG BAZAR is an original
authenticated work done by me.

I further declare that it has not been submitted elsewhere by any other person in any of
the Institute for the award of any degree or diploma.

Enroll. No. 1504201087 KRITIKA KUMARI

MBA (2015-2017)

7
 Executive summary

My work was to DO the brand awareness of various products in current scenario. BIG
BAZZAR is major player in Retail Market and now they are emerging as the biggest
departmental stores also. It has scope to improve in sales & increase market share. For
this what customers feel, think, & expect from the brand should be exactly known. To
find out this information, was my project in Patna, Bihar was targeted. Various areas in
city were selected. Survey was conducted using questionnaire. The information about
various attributes &factors was collected. All the data collected, primary data was filtered
&analysed, represented in the form of graphs & charts. Secondary data was also used in
report such as company profile, product profile etc. on the basis of analysis of data,
conclusions were drawn. The survey gave knowledge about customer s satisfaction,
retailers and distributors network and problems of them. Also it gave an insight about
loyalty & their feel about the brand. The survey gave an insight into organized market of
Retail products &competitors’products. On the basis of findings & conclusions,
suggestions were given. There many limitations of this project like, biased reply,
customers busy, time constraint as the project has time limit of 1 months, area limitation
etc.
After the market research we also did some of the sales promotional activity. Sales
activity had been done in the crowded areas.

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 ACKNOWLEDGMENT
I hereby wish to express my gratitude to my corporate guide ofBIG BAZAAR,
Mr.Prashant Kumarfor providing me with immense knowledge in Acquiring
Customers for Education in Media and Entertainment Industry.
I am thankful to Galgotias University for giving me the opportunity to do my internship
in Big Bazaar. I wish to thank Business Head of company Mr. Gaurav Singhwho has
been the source for inspiration and help us to improve our practical knowledge.
I am also grateful to my mentor Prof Neha Zaidifor the immense support guidance and
encouragement throughout the internship studies.

I would like to express my thanks to various people who helped me directly and
indirectly to carry out my project in a positive manner.

I want to express my deep gratitude to Dr. Sadanand Prusty, the Dean of School of
Business, Galgotias University for giving me the opportunity to undertake this project
and enhance my knowledge.

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 TABLE OF CONTENTS
SUBJECTS COVERED
Chapter No. PAGE NO.
1. INTRODUCTION
1.1COMPANY PROF1ILE 11
1.2 COMPANY LOGO
12
1.3 MISSION AND VISION
13
1.4 HISTORY OF COMPANY 13-20
1.5 BRIEF DESCRIPTION 21-34
1.6 DIFFERENT LOCATION OPERATIONS 35
1.7 RANGE OF COMPANY PRODUCTS 35-39
1.8 MARKET POSITION & COMPITITION 40-43
1.9 SWOT ANALYSIS 44-46
1.10 CAPITAL STRUCTURE & BALANCE SHEET 46-50

2. INTERNSHIP PROFIL
2.1 DESCRIPTION OF THE TASK 51
2.2 DETAILS OF INDUSTRY MENTOR 51
2.3 WEEKLY REPORT 52

3. KEY OBSERVATION
3.1 WORK DESCRIPTION 53
3.2 RESPONSIBILITIES 53
3.3 PRACTISES FOLLOWED BY THE COMPANY 53-54
3.4 KEY CHALLENGES FACED 54

4. LEARNING & VALUE ADDITION

4.1 MAJOR LEARNING DURING SIB 55
4.2 WHY PRACTICAL KNOWLEDGE IS MORE IMPORTANT 55-57
THAN THEORETICAL KNOWLEDGE
4.3 USEFULNESS OF INTERNSHIP WITH FUTURE PERSPECTIVE 57-58

5. FINDING, CONCLUSION & RECOMMENDATION 59-62

6. BIBLIOGRAPHY
6.1 WEBSITE AND SERACH ENGINE 63
6.2 REFERENCES 63
6.3 BOOKS 63

7. ANNEXURES 64-66

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 CHAPTER-1

INTRODUCTION
1.1COMPANY PROFILE

Big Bazaar

Type Hypermarket-Supermarket

Industry Retailing

Founded 2001

Headquarters Mumbai, Maharashtra, India

Hypermarket
Products
₹110 billion (US$1.6 billion) (2012)
Revenue
~ 36000 people[1]
Number of employees
Future Group
Parent
~ 215
Divisions
Making India Beautiful
Slogan
http://www.bigbazaar.com
Website

1.2COMPANY LOGO

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1.3MISSION & VISION

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 be efficient, cost-conscious and committed to quality in whatever we

12
do. We shall ensure that our positive attitude, sincerity, humility and united
Determination shall be the driving force to make us success

VISION:

Future group shall deliver everything, everywhere, every time for every Indian consumer
in the most profitable manner.

1.4 HISTORY OF BIG BAZAAR

Big Bazaar, the flagship retail chain of the Future Group, is on the verge of achieving a
unique milestone in the History of World Retail by being the first hypermarket format in
the globe to rollout fastest 101 stores in a short span of seven years. Currently, Big
Bazaar has 98 stores in the country, including the recently opened store in Mysore on
September 26th 2008. Further to this, Big Bazaar will be opening three more stores in a
single day i.e. 30th September 2008, which will take the eventual count to 101 stores in
the country. These three stores opening shortly in Pune (Kalyani Nagar), Cuttack (Darga
Bazaar) and Delhi (Rajouri Garden).

Big Bazaars journey began in October 2001, when the young, first generation
entrepreneur Kishore Biyani opened the country’s first hypermarket retail outlet in
Kolkata (then Calcutta). In the same month, two more stores were added one each in
Hyderabad and Mumbai, thus starting on a successful sojourn which began the chapter of
organized retailing in India. Speaking on this momentous occasion and remembering the
days of conceptualising the hypermarket idea Mr. Kishore Biyani said, we initially
decided to name the format as Bazaar because we had designed the store keeping the
Indian mandi style in mind. Since the size of the hypermarket was big than an average
mandis, the thought came to name it as Big Bazaar. However, we had freezed on the
punch line Isse Se Sasta Aur Achha Kahi Nahi much before we met the creative agency
to design the final logo of Big Bazaar. Though, Big Bazaar was started purely as a
fashion format including apparel, cosmetics, accessory and general merchandise, the first
Food Bazaar format was added as Shop-In-Shop within Big Bazaar in the year 2002.

Today, Big Bazaar, with its wide range of products and service offering, reflects the
aspirations of millions of Indians. The journey of Big Bazaar can be divided into two
phases
One pre and the other post January 26th, 2005, when the company rewrote the retail
chapter in India, with the introduction of a never-before sales campaign Sasbe Sasta Din.
In just one day, almost the whole of India descended at various Big Bazaar stores in the
country to shop at their favourite shopping destination. Further, what followed was the
time and again rewriting of the Indian Retail experience, wherein understanding of the
Indian consumers reflected in the products and services offered, creating innovative
deals, expanding in the tier II and tier III towns, tying up with branded merchandise to

13
offer exclusive products and services to its customers. Big Bazaar is present today in 59
cities and occupying over 5 million sq. ft. retail space and driving over 110 million
footfalls into its stores.

The format is expecting the number of footfall in the stores to increase by over 140
million by this financial year. Over the years, Mr. Biyani for his vision and leadership,
and Big Bazaar for its unique proposition to its customers, have received every
prestigious consumer awards both nationally and internationally. Says Rajan Malhotra,
President, Strategy & Convergence, Big Bazaar, What is important in our journey is not
the number of stores, but the customer’s faith in us. It’s the India and the Indians, which
have helped us, reach this feat in such a short time span and today our country is creating
a history in the World organized Retail. Rajan Malhotra, who is also the first employee of
Big Bazaar, joining the organization in early 2001 adds, Since beginning, we have kept
Big Bazaar as a soft brand, which reflects the India and the Indianess. We believed in
growing with the society, participating and celebrating all regional and local community
festivals, giving customers preferences above everything else.

Every Big Bazaar is a small family by its own and the head of the family Karta is the
store manager. Kishore Biyani, the CEO of the Future Group, has a vast understanding of
the consumers insight, has inculcated the habit of observing, understanding customers
behaviour, in every employee of the group. Future Group is confident of the Indian Retail
Story. The Group has not slowed down its expansion plans despite the fiscal woes in the
economy present today.

YEAR EVENTS:

1987
- The company was incorporated on the 12 th October, under the name of Manzwear
private limited.

1991
- The company was converted into a public limited company under the name of Manz
wear limited on 20th September.

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- The Company name was changed to Pantaloons Fashions (India) Limited vide
certificate of incorporation dated the 25th September.

- The Company is engaged in the manufacture and marketing of quality Ready-made

Garments for men, including Trousers, Shirts, Denims, Blazers and Sleep Suits, at its
units located at Andheri in Bombay.

- The Company's Products are being marketed under the brand name "PANTALOON"
and "BARE NECESSITIES" through a network of over 300 dealers spanning the Metro
and Class l cities in the country.

- The Company is promoted by Shri Kishore Biyani, friends and associates.

1992
- The Company has successfully launched the "Pantaloon" Trousers, Shirts, Denims,
Sleep Suits and other ready-made garments.

1993
- The Company recently made a Public Issue of 25, 55, and 000 equity shares of Rs.10 /-
each for cash at par in May. The Company has allotted 36, 57,100 Equity Shares on 28th
July in consultation with the Stock Exchange Bombay.

1994
- The Company is launching a new brand of shirts called `John Miller' at affordable
prices.

1995
-Pantaloon Fashions (India) Limited has launched "John Miller" shirts

1996
-Pantaloons Fashions (India) Ltd. has launched the Yorker to concede with the world cup

1997
- The Company has launched women's wear, children's wear and household products in
the last few months.

- The Company has issued 10, 00,000 Non-Cumulative Preference Shares Rs. 10/- each
aggregating Rs. 1, 00, 00,000/- on Private Placement basis.

1998
- The Company has introduced "Shrishti" range of Salwaar Kameez. The Company has
also added Knitted T-shirts to its range of products.

1999

15
 - The Company opened a state-of-art family store at prestigious "Crossroads", Haji Ali,
and Mumbai, spread over an area of 4,500 sq. ft.

- The name of the Company was changed with the approval of the Members to Pantaloon
Retail (India) Ltd.

- The company has recently set up a state-of-the-art trouser manufacturing plant in

Mumbai with a capacity of 1,200 pieces per day.

- Entrepreneurial Jadeja is setting up a joint venture sportswear company with the

promoters of Pantaloon Retail (India) Ltd.

2000
- The company share transfer committee, have allotted 10, 00,000 No. of equity shares of
Rs. 10/- each at a premium of Rs. 33/- per share on private placement basis to ICICI Ltd.
A/c. Structured Products Fund.

- The total paid up capital of the company is 1, 25, 19,413 No. of equity shares of Rs. 10/-
each, ICICI Ltd. A/c Structured Products Fund will be holding 7.99% of the enhanced
share capital.

- Pantaloon Retail (India) Ltd. has launched stainfree with Scotchgard, a new range of
formal shirts and trousers.

2001
-Retail major Pantaloons has forged an alliance with Arvind Mills for the supply of fabric
and apparel for its in-house brands.

-Finalised a leasing deal to occupy 50,000 sq.ft. of space for Rs 25 lakh

-Issue of 4 million equity shares of Rs.10/- each to the Promoters of the company on a
preferential basis at a price as per SEBI Guidelines.

-Tied up with Andhra Pradesh Handloom Weavers’ Co-operative Society and National
Institute of Fashion Technology

2002
-Pantaloon Retail India Ltd has informed that the Board of Directors of the company has
allotted 40 lac equity shares to the promoters and their associates on preferential basis at
a price of Rs.31.50 per share.

-Promoters sell 584098 shares

-Pantaloon has launched a range of the movie-specific merchandise such as notebooks,

folders, pens, mouse pads etc.

16
-Incidence of fire occurred at one of ATM centre in Maheshwari Plaza Mall/Big Bazaar
at Abids, Hyderabad.

- Preferential Issue of 8, 65,000 Equity shares of Rs.10 each at a premium of Rs.40 per
share to Promoters & Associates.

2003
-Allotment of 8,65,000 equity shares to the promoters and their associates on preferential
basis at a price of Rs.50/- per shares as approved by the members of the company at their
meeting held on December 20, 2002

-Change of Registered Office from 'Pantaloon House', G-11, MIDC, Cross Road A,
Andheri (East), Mumbai - 400 093 to 'Knowledge House', Off. Jogeshwari-Vikhroli Link
Road, Shyam Nagar, Jogeshwari (E), Mumbai - 400 060 w.e.f. January 31, 2003.

-Acquires the trademark and exclusive licensing rights for apparel brand Norules in India,
from US-based Norules Inc

-Forged an alliance with ICICI Lombard to offer one year free insurance cover to
customers acquiring gold from Gold Bazaar.

-Teams up with Italian apparel behemoth Moda & Musica to market its casual sportswear
brand UMM in the domestic market

-Received a letter from ICICI Venture Funds Management Company Limited, in which
they have stated that they have sold 2,71,083 shares aggregating to 2.04 % of the total
paid-up capital of the Company as on September 12, 2003.

-ICICI Venture Funds Management Company Ltd. sells 279900 equity shares of the
company, bring down the stake in the company to 3.37 % (449017 shares)

-Board approves a proposal to allot 9.5 lakh shares (of Rs 10 each) to promoters and
associates at premium of Rs 102 per share.

-Promoters sell 4.6% stake of the company

-Pantaloon Industries Ltd. acquires 3, 00,000 shares aggregating to 1.57% of the paid up
equity share capital of the company

-American Funds Insurance Series Global Small Capitalization Fund have acquired
2, 09,500 shares of Pantaloon Retail India Ltd. representing 1.152% of the total paid up
capital of the Company

2004
-Pantaloon Retail (I) Ltd. enters into Strategic alliance with Arvind Brands Ltd.

17
-Pantaloon Retail calls off strategic alliance with Arcus Ltd

-Appoints Mr. Ved Prakash Arya as Chief Operating Officer. Mr. Arya will take charge
of the retail operations of the company.

-Ties up Arvind Brands Ltd for Ruf & Tuf brand at its Big Bazaar outlets across the
country

-Pantaloon Retail (India) Ltd has signed a memorandum of understanding (MOU) with
K.J. Somaiya Institute of Management & Research Studies to offer a specialised course
in retail management

-Pantaloon join hands with Unitech for home stores chain

2005
-The Pantaloon Retail has made an offer under Regulation 10 of the SEBI (SAST)
Regulations to the Public shareholders of Galaxy Entertainment Corporation Ltd ("Target
Company") to acquire upto 2,542,400 fully paid equity shares of Rs 10/- each,
representing in the aggregate 20% of the Post issue voting capital at a price of Rs 51/-
(Rupees Fifty One only) per share ("the Offer price") payable in cash subject to the terms
& conditions mentioned.

-Pantaloon sets up restaurant at Bangalore Central Hall

2006
-Pantaloon Retail enters into an agreement with CapitaLand Singapore

-Pantaloon Retail join hands with management schools across the country

-Pantaloon Retail India Ltd has launched its newest retail venture `Depot'

-Pantaloon Retail - Strategic alliance agreement with Ruchi Soya Industries

-Pantaloon Retail signed MOU with Blue Foods on July 31, 2006

-Pantaloon Retail signs MOU with Manipal Health Systems on August 05, 2006.

- Company has splits its Face value of Shares from Rs 10 to Rs 2

2007
-Pantaloon Retail India Ltd has entered into a 50:50 joint venture (JV) with Axiom
Telecom LLC, UAE, to do sourcing and wholesale distribution of mobile handsets,
accessories and setting up service centres and Authorised after Sales Service Centres for
mobile handsets in India.

2008

18
-Pantaloon Retail (India) Ltd. has appointment Mr. Deepak Tanna as Deputy Company
Secretary and he shall be Compliance Officer with immediate effect.

- Pantaloon Retail has inked a 50-50 joint venture pact with French apparel firm Celio to
add to its garment retailing in India.

-The Company has issued Bonus Shares in the Ratio of 1:10.

-Pantaloon Retail joins hand with French firm

2009
- Pantaloon receives shareholders’ approval for restructuring biz and name change.

- Mr. Vijay Biyani has been co-opted on the Board and then also appointed as Whole
time Director.

- Pantaloon Retail - Authorisation to open QIP Placement.

- Pantaloon Retail celebrates its first Shopping Festival across all retail formats in key
Indian cities.

2010
- Mr.Kailash Bhatia has been co-opted on the Board and also appointed as Wholetime
Director.

- 'Bring anything old and get anything new' at Big Bazaar's 'The Great Exchange Offer'.

- Tata Teleservices in Strategic Partnership with Future Group.

- Company Heads walk the ramp for the Pantaloons Style Inc Awards Unveil Pantaloons
Spring Summer Collection 2010.

- Pantaloons Femina Miss India 2010 Finalists Unveil the 'Pantaloons Femina Miss India
2010 Collection'.

2011
- Bengaluru Welcomes 'Next Gen' Pantaloons Store.

- Pantaloons launches its revamped Green Card Loyalty Programme in Bengaluru.

- Pantaloons continues its 'Next Gen' journey in Pune.

- Big Bazaar Completes 10 Years.

2012
- Kishore Biyani’s Pantaloon Retail to be re-named as ‘Future Retail India Ltd’ post

19
demerger.

- Pantaloon Retail gains over 2% after govt gets Maya boost in RS.

- Future Group Demerges Pantaloons Retail Format from Flagship Company Aditya Birla
NUVO to Invest in Pantaloons Format.

- Future Group forays into elite gourmet retailing in Bengaluru with the launch of the first
Foodhall in the city.

- Pantaloon Retail & Future Ventures Demerge Lifestyle Fashion Businesses to Create
India's Leading Integrated Fashion Company.

2013
- The Company Name has changed from Pantaloon Retail (India) Limited to Future
Retail Limited.

- Future Retail - L&T, Generali and Future Group sign Non-Binding term sheet for
merger of general insurance businesses.

- Pantaloon Retail (India) Limited has, entered into Share Purchase Agreement (SPA)
with Industrial Investment Trust Limited to sell its part holding in Future General India
Life insurance Company Limited.

2014
- The world's largest online store Amazon and India's largest listed retailer Future Group
have signed a deal to jointly sell goods over the Internet amid growing friction between
online and offline retailers over heavy discounting.

1.5BRIEF DESCRIPTION

The Indian retail industry is now beginning to evolve in the line with the transformation
that has swept other large economies. The liberalization of the consumer goods industry
initiated in the mid-80 and accelerated through the 90’s has begun to impact the structure
and conduct of the retail industry.

The concept retail which includes the shopkeeper to customer interaction, has taken many
forms and dimensions, from the traditional retail outlet and street local market shops to
upscale multi brand outlets, especially stores or departmental stores.

20
The objective being to assess the various parameters that influences a buyer to visit or
shop at departmental store thereby contributing to its turnover (in terms of sales and
profits) hence leading to its overall success.

The extensive research brought me to conclude that departmental stores are soon
emerging on the top priority lists, amongst the shopping spree in Delhi and NCR, as they
seem to derive immense pleasure of convenience and exposure to variety under one roof,
in their extremely busy lives, when they don’t have time for things.

Though some of the customers perceive departmental stores to be expensive and only
high income category’s cup of tea, the stores make constant efforts to induce them to at
least visit the store at once during the sale period, or discount offers

The Retail Marketing Revolution - An Introduction

“Any business that directs its marketing efforts towards satisfying the final
consumer based upon the organization of selling goods and services as a means of
distribution”

By2010, the list of India's top 10 retailers will have at least 5 Indian corporate. Retail
Marketing will go through a tremendous change in India this millennium.

It will change India's cities, its people, and its households. The Indian consumer is
reportedly the largest spender in Singapore and London. It is, therefore, strange that there
have, so far, been few efforts to present the product in the right kind of environment in
India.
Indeed, the right shopping experience does induce Indian consumers to spend more. This
is evident from the experiences of retail-outlets like Music.

21
World, Big Bazaar, Spencer’s, Crosswords, The Home Store, Ebony, Bigjo’s, Saboos,
Standard, Nanz, Vijay Store and Janaki Das & Sons, Westside etc.

Factors affecting Retail marketing

The development of organized retail is dependent on the efforts of several agencies and
institutions. A glimpse of the last 2 decades of the previous century proves illuminating.
Large-format retailing started with outlets like Vivek's and Nalli's in Chennai and
Kidskemp in Bangalore, and, at another level, with manufacturer-retail brands like Bata,
Bombay Dyeing, and Titan.

 Government:
The first among these is the government. In a country as big as India and with as many
states as ours, it is imperative that the Central government and all state governments
bring in Value Added Taxation or a unified taxation system to ensure that the tax-regimes
are the same across the country.
The laws governing retail real estate should also be looked into, so that it is possible to
develop retail-estate beyond the city-limits. Apart from providing entertainment and retail
opportunities, this will also decongest the city center and facilitate the development of
suburbs. The relevant rules should also be amended to allow retail-stores to operate 7
days a week, 12 hours a day.

 Nuclear Families:
Given the hours most urban consumers keep at work, and keeping in mind the increase in
the number of nuclear families, this may, indeed, make sense. This will also help people
enjoy their evenings, out at malls.

 Developers:
The second group, whose participation is essential in making retail a boom-sector in this
millennium, comprises developers. Most properties are developed without considering
the end user; thus, we sometimes find high-

22
Ceilinged offices and low-ceilinged retail stores. Often, the shopper's convenience is not
taken into consideration while the property is constructed.

 Manufacturers:
There's a lot at stake here: even so early in the 21st Century, India is too large a market to
be ignored by transnational retail giants. From the manufacturing company's perspective,
the focus should be on producing good products, and forging relationships with organised
retail. Manufacturers need to draw a plan of producing quality products and tie in with
retailers. Indeed, the birth of organised retail will also engender the creation of private
labels and store-brands. Thus, if a manufacturing company lacks the resources to build a
brand, it can supply to a retail-chain that has the resources to create a brand of its own.

 Indian Consumers:
And even as these developments were taking place, the Indian consumer became more
mature. Customer-expectations zoomed. Thus, at the beginning of the New Millennium,
retailers have to deal with a customer who is extremely demanding. Not just in terms of
the product-quality, but also in terms of service, and the entire shopping experience.

Today, the typical customer who shops in a retail outlet compares the time spent at the
check-out counter with that at an efficient petrol station, and the smile of the counter-
person to that decorating the face of a Jet Airways' crew member. To cope with the new
customer, manufacturers have to focus on product quality and brand building. And
retailers, in turn, have to focus on the quality of the shopping experience.

In this millennium, like in the last, customers will want to spend time with their family
and friends. They may like to visit an outlet on weekends where everything will be
available under one roof. India will benefit from these developments

because of increased consumption through retailing and the corresponding increase in

employment created by retailing.

23
Retail organizations exhibit great variety and new forms keep emerging. There are store
retailers, non-store retailers, and retail organizations.

Consumers today can shop for goods and services in a wide variety of stores. The best-
known type of retailer is the department store. Japanese department stores such as
Takashimaya and Mitsukoshi attract millions of shoppers each year. These stores feature
art galleries, cooking classes, and children’s playgrounds.

The success of the retail stores, therefore, depends on customers’ reaction to the retailing
mix which influences the profits of the store, its volume of turnover, its share of the
market, its image and status and finally its survival.

Trends In Retail Marketing

At this point, I can summarize the main development retailers and manufacturers need to
take into account as they plan their competitive strategies.
In India the trends are mainly in three sectors. These sectors are:

Trends in retail marketing

Urban Suburban Rural

24
New retail forms and combinations continually emerge. Bank branches and ATM
counters have opened in supermarkets. Gas stations include food stores that make more
profit than the gas operation. Bookstores feature coffee shops.

The electronic age has significantly increased the growth of non-store retailing
consumers receive sales offers in the mail and over television, computers, and telephones,
to which they can immediately respond by calling a toll-free number or via computer.

Competition today is increasingly intertype, or between different types of store outlets.

Discount stores, catalog showrooms, and department stores all compete for the same
consumers. The competition between chain superstores and

Smaller independently owned stores have become particularly heated. Because of their
bulk buying power, chains get more favourable terms than independents, and the chains’
large square footage allows them to put in cafes and bathrooms.

Today’s retailers are moving toward one of two poles, operating either as mass
merchandisers or as specialty retailers. Superpower retailers are emerging. Through their
superior information systems and buying power, these giant retailers are able to offer
strong price savings. These retailers are using sophisticated marketing information and
logistical systems to deliver good service and immense volumes of product at appealing
prices to masses of consumers.

Many retailers are even telling the most powerful manufacturers what to make; how to
price and promote; when and how to ship; and even how to reorganize and improve
production and management. Manufacturers have little choice: They stand to lose 10 to
30 percent of the market if they refuse.

25
Technology is becoming critical as a competitive tool. Retailers are using computers to
produce better forecasts, control inventory costs, order electronically from suppliers, send
e-mail between stores, and even sell to
Customers within stores. They are adopting checkout scanning systems, electronic funds
transfer, and improved merchandise-handling systems.

Retail Marketing In India

There are various ways of making goods available to consumers like:
 Company to distributor to wholesaler to retailer to consumer
 Company to salesperson to consumer
 Company to consumers (online/ phone/ catalog ordering)

These three are among the most common ways of making the goods available to
consumers. But in India the three layered system of distributor, wholesaler and retailer,
forms the backbone of the front-end logistics of most of the consumer-goods companies.
There are a number of reasons behind this fragmented retail market. Some of the major
reasons being:

 Poverty and lower literacy levels.

 Low per capita income.
 Savings focused and less indulgence mind-set.
 Poor infrastructure facilities like roads etc.
 Restrictions on intra-state good movement.
 High taxes.
 No exposure to media.
 High import duties on imported goods.
 FDI in retailing is not allowed.

CRM In Retail Marketing (Big Bazaar)

26
Customer relationship activities have the most impact on customer retention. Every
customer service encounter has the potential to gain repeat business or have the opposite
effect. The expectation of personalized, relevant offers and service is becoming a primary
driver of customer satisfaction and retention in financial services.

What Exactly Is CRM?

The first thing you find when looking into the world of Customer Relationship
Management is the number of different definitions in use today.

Here is the one I have chosen for this Project:

 "CRM is the business strategy that aims to understand, anticipate, manage and
personalize the needs of an organization's current and potential customers" --
PWC Consulting.
 CRM is a business strategy, one that puts the customer at the heart of the
business. 
 “That’s nothing new” I hear you say, and you would be right. Good business
people have always understood the relationship between happy customers that
come back again and again and creating long term, sustainable profitability.  Big
Bazaar has realized this and applied this to effect.

One just needs to think of the local shop owner who knew every one of his customer’s
names, birthdays and particular ailments to prove that point. What is new is that there
now exists the technology to enable this customer-centricity on a much larger scale.

(“Come To Big Bazaar- Isse Sasta Aur Achha Kahin Nahin”) 

It is said that a successful CRM implementation will allow your Customer Service, Sales
and Marketing people (and anyone else in your organization) to have a holistic view of
each and every one of your customers. In theory this will enable them to make quick,

27
informed decisions, create cross selling and up selling opportunities, measure marketing
effectiveness and deliver personalized Customer Care. Sound’s great doesn’t it! 

The History of CRM

Following on from Enterprise Resource Planning or ERP (the business strategy that
promised to automate the “back-office”), the term CRM was first coined in the mid-
1990s. CRM in those days referred to the software used to help businesses manage their
customer relationships. From sales force automation software (SFA) that focused on
customer contact management to integrated knowledge management solutions, these
were the early foundations of CRM. 

The last couple of years have seen the term broaden to encompass a more strategic
approach and the investment of billions of dollars worldwide into CRM solutions and
services has followed. 

First Things First 

Successful CRM always starts with a business strategy, which drives change in the
organization and work processes, enabled by technology. The reverse rarely works.  The
key here is to create a truly Customer-Centric philosophy that touches every point and
more importantly every person in the company. From CSR to CEO everyone must live
and breathe customer focus for all of this to work.

The Right Technology

It is estimated that the global market for CRM services and solutions is currently worth
$148 billion. That means a lot of choice when selecting your technology - from web-
based solutions aimed at small businesses with less than 10 employees to solutions
suitable for multi-national enterprises with millions of customers. 

The Future

28
CRM has already made a big impact in the world of Customer Service and will continue
to do so. As more and more companies become customer-centric those that fail to do so
will lose competitive advantage. As technology increases to develop at a startling rate
the key emphasis will be how we can fully utilize it within our business.

However let's not lose sight of the fact that Customer Relationship Management is about
people first and technology second. That’s where the real value of CRM lies, harnessing
the potential of people to create a greater customer experience, using the technology of
CRM as the enabler.

Advantages Of CRM for Big Bazaar

Using CRM, at the management of Big Bazaar can:

 Provide better customer service

 Increase customer revenues
 Discover new customers
 Cross sell/Up Sell products more effectively
 Help sales staff close deals faster
 Make call canters more efficient
 Simplify marketing and sales processes

By applying this methodology Big Bazaar learned more about customers' needs and
behaviours in order to develop stronger relationships with them. They implemented
CRM as a process that brought together lots of pieces of information about customers,
sales, marketing effectiveness, responsiveness and market trends.

CRMhelps businesses use technology and human resources to gain insight into the
behavior of customers and the value of those customers.

29
Challenges for Big Bazaar in CRM implementation:

 .Difficulty in acquiring new customers can be a result of any one, or

combination, of the following problems.
 .Inaccurate and Slow Quoting Organizations may be unable to accurately
estimate and quickly deliver successful proposals, often leading to missed
opportunities, bad profit margins and upset prospects.
 Lack of Product Knowledge Within their Sales Force
 Problems can arise when products were sold that didn’t fit company's
profitability strategy such as selling a customer one product when another would
be better for the customer and more profitable for you.
 Difficulty and Delay in Updating Pricing and Product Information
 When the sales force is relies on incomplete product, pricing and customer
information, then they're probably not selling the most profitable products you
offer.
 Customers prefer a combination of differing channels in which to deal with your
company. Self-service on the web can even be done for complex products. Plus,
self-service on the web offers retail banks the opportunity to shift cost out to the
customer.

Customer Satisfaction Is Big Bazaar

“The degree of customer satisfaction you deliver determines the level of long-term
success you will achieve in business.” - --- Training Mantra for Sales Force

o Customer Satisfaction their Top Priority

Don't just make sales. Create customers - satisfied customers. In addition to the

30
 immediate profit they provide on the first sale, satisfied customers help you build
your business in 2 other important ways:
1. They become a reservoir of repeat buyers. For some businesses that means
repeat buyers for more of the same product or service. For every business, it
means buyers for additional products and services.
2. They automatically refer more business to you from their friends and business
contacts. This is highly profitable business for you because it doesn't cost you any
time or money to get it.

o Whatever they Promise More, they Deliver

Never make any promises you can't (or won't) keep. Nothing alienates
customers faster than getting something less than they expect from a
business transaction. They won't do business with you again. And they
will tell everybody they know about their unhappy experience - causing
you to lose future customers.

o Always Give Customers More Than They Expect

"Over deliver" on quality and service. Always exceed your customers'
expectations. You will win their long term loyalty. It also makes it
difficult for competitors to steal customers from you - even if they have
lower prices. Customers will not risk an uncertain experience with a
competitor when they know they will get more than they expect from you.
o Customers know how much they value them:
Let your customers know you are always thinking about them. Communicate with
them regularly. For example, create some special deals just for your existing
customers. And announce new products or services to them before you announce
them to the general market.

PROCESS OF CRM

Customer Relationship Management (CRM) is the process of bringing the customer and
the company closer together. There are many different areas in which Customer

31
Relationship Management can be implemented. The goal of CRM is to help a company
maintain current customers, as well as gain new customers.

Targeted Marketing: Targeted marketing is accomplished through collecting

information about the customer. This information can be buying habits or simply
demographics. The idea behind this is that a business analyses what a customer
buys and then markets specific products to that customer based on his or her
buying habits. Businesses track buying habits using discount cards, and special
store credit cards. Targeted marketing can also be implemented on the Internet.
Amazon.com has product recommendations based on buying habits, and product
ratings. Customers can also be sent e-mails that market targeted products.
Marketing the right products to the right customers can significantly increase a
business' sales with minimal associated costs.

CONSUMER BEHAVIOR

Options: Consumers are more likely to choose an alternative after a

relatively inferior option is added as a choice. For example, Simonson
says, participants in one study were given a choice

 Between $6 and an elegant Cross pen. A second group chose among

$6, the

32
 Same Cross pen, and a second pen that was clearly less attractive
than the Cross pen. As was predicted, the addition of the unattractive
pen increased the share of the Cross pen at the expense of the $6.
Alternatives: Consumers prefer alternatives that are compromise
choices. Given a choice between two alternatives, one priced lower than
the other, the addition of a third choice, priced higher than both, will
increase the market share of the more expensive of the original two. This
finding suggests that companies can increase their overall sales and shift
purchases to higher-margin items by carefully designing the sets of
alternatives that their customers consider.
FloorDisplays: Buyers are averse to choosing the lowest-quality
alternative in sets of three or more choices. One of the implications of
this finding is that marketers of well-known, high-priced brands should
encourage retailers to organize floor displays by model type, whereas
marketers of lesser-known, lower-priced brands should prefer
organization by brand.
Brands: Consumers who think about the possibility that their purchase
decisions will be wrong are more likely to choose better known brands. In
a test case, Simonson showed that consumers debating between a better
known, more expensive brand and a lesser-known, less expensive brand
expect to feel greater regret if they err by choosing the cheaper option.
Indeed, after thinking about the possibility of regret, consumers were
more likely to select the better-known brand. Kodak film has capitalized
on this finding with an advertising campaign that asks consumers to
consider how they would feel if they bought cheap film and their pictures
didn't turn out.

Preferences: Consumers tend to select variety when buying multiple

products for consumption at a later time. In each of three weeks, Simonson

33
 asked a group of respondents to select one of six familiar snacks for
immediate consumption. A second group was asked to pick three snacks --
one for immediate consumption and one for each of the next two weeks.
Both groups were told that they could pick the same snack as many times
as they wished. Those in the first group tended to select the same snack all
three times, whereas most in the second group selected three different
snacks.

Product Modifications: Modifying a product with a feature or

premium that is of little or no value to the consumer, even without
raising the price, may actually decrease sales. When consumers are
uncertain about their preferences, a product that offers an unneeded
add-on (such as an offer to purchase a Pillsbury Doughboy collector's
plate) provides them with a reason for rejecting it.

While marketing professionals can use these findings to influence consumer

decision making, consumers, too, can benefit by understanding their own
behavior. "One of the points of our research is to inform consumers about some of
the factors that influence their decisions," Simonson says. "With such knowledge,
they may be able to make better, more thoughtful decisions."

1.6 DIFFERENT LOCATIONS OF OPERATIONS

1. New Delhi:
Big Bazaar, Pasvanath Metro Mall, DMRC Station, Inderlok, New Delhi.

2. Mumbai:
Big Bazaar, Growel Plaza, Akurli Road, Western Express Highway, Kandivali (E),
Mumbai -400101.

34
3. Indore:
Big Bazaar, Treasure Island 11 Tukoganj Main Road, Indore-452001.

4. Gurgaon:
Big Bazaar, Sahara Mall, Main Mehrauli, Gurgaon Road, Gurgaon-122002.

5. Delhi:
Big Bazaar, EDM, Plot No.1, Kaushambi, Ghaziabad, Delhi.

6. Chennai:
Big Bazaar, 45-47, Arcod Road, Saligramam, Near Bharani Hospital, Chennai-93.

7. Bangalore:
Big Bazaar, Double Road, BMTC Bus Stand, Near, Lalbagh Main Gate, Bangalore.

8. Lucknow:
Big Bazaar, Saharganj, Shahnajaf Road, Hazratganj, Lucknow

1.7 RANGE OF COMPANY PRODUCTS

PRODUCTS AVAILABLE IN BIG BAZAAR:

Appareal and Accessories for men, women’s and children , sarees, linens,
Baby Accessories,
Cosmetics,
Crockery,
Dress Materials Suiting & Shirting,
Electrical Accessories , Electronics,
Footwear,
Toys,
Home Textiles, home needs , home décor,
Household appliances, household plastics, utilities.

35
Schemes and innovations:

Wednesday Bazaar
The concept of Wednesday Bazaar was promoted as 'Hafte Ka Sabse Sasta Din'
(Cheapest Day of the Week). 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'.]

Maha Bachat
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 bi-annual campaign. During the campaign, offers
1are given in all the value formats including Big Bazraar, Food Bazaar, Electronic
Bazaar, and Furniture Bazaar.

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.
All three scheme are active till date 2015 [
The Great Exchange Offer are active till date 2016 valid from 20 Feb 2016 to 3rd Apr
2016.

Advertising campaigns and marketing initiatives

New logo
On the occasion of completion of ten (10) years in the Indian retail industry (in 2011) Big
Bazaar came up with a new logo for the company with a tag line that says: 'Naye India
Ka Bazaar' (Market for New India). This replaces the earlier tag line: 'Isse Sasta Aur
accha Kahin Nahin' (Nowhere will you get cheaper and better than this).

36
Advertising initiatives
Big Bazaar has launched a promotion drive covering the three prime media, television,
print and social media, to mark the launch of the new logo. The media campaign was
developed by Mudra Communications.

BIG BAZAAR TIMELINE

2001

 Three stores launched within a span of 22 days in Kolkata, Bangalore and Hyderabad

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

 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.

37
2006

 Mohan Jadhav set a national record at Big Bazaar Sangli with an 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.
 Pantaloons 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'

38
 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.

2011

 Enters the rural wholesale and distribution business through 'Aadhaar Wholesale'
store at Kalol, Gujurat.
 Big Bazaar has come up a new logo with a new tag line: 'Naye India Ka Bazaar'
 200th store opened in India

1.8 MARKET POSITION & COMPETITORS 

 
COMPETITORS OF BIG BAZAAR:
 
1. RELIANCE FRESH

Reliance Freshis the convenience store format which forms part of the retail business of o Reliance
Industries of India which is headed byMukesh Ambani. Reliance plans to invest in excess of Rs 25000
crores inthe next 4 years in their retail division. The company already has in excessof 560 reliance fresh

39
outlets across the country. These stores sell fresh fruits and vegetables, staples, groceries, fresh juice bars
and dairyproducts.A typical Reliance Fresh store is approximately 3000-4000 square. Fresh, Reliance
Mart, Reliance Digital, Reliance Trends,Reliance Footprint, Reliance Wellness, Reliance Jewels,
Reliance Timeout and Reliance Super are various formats Reliance has rolled out.

2. SPENCER:

Spencer's Retailis one of India’s fastest growing retail stores. It has multiple
formats for retailing food, apparel, fashion, electronics, lifestyle products, musicand books. It is owned by
the RPG Group, a major business house. Established in 1996, Spencer’s is one of the popular
destination for shoppers inIndia with supermarkets, hypermarkets and dailies spread all over India.

40
3. SUBHIKSHA:
 
Subhiksha is an Indian retail chain with more than 1400 outlets selling groceries, fruits,
vegetables, medicines and mobile phones. It was started and is managed by R
Subramanian, an IIM Ahmedabad alumni. Subhiksha plans to open 1000 outlets by
December 2008. He also plans to invest Rs.500 croreto increase the number of outlets to
2000 across the country by 2009.The name Subhiksha means prosperity in Sanskrit. It
opened its first store inThiruvanmiyur in Chennai in March, 1997 with an investment of
about Rs. 5lakhs. The retail chain has seen a considerable growth by offering goods at
cheaper rates and thereby increasing its customer base.

41
4. Trent (Westside):

Trent is the retail arm of the Tata group. Started in 1998, Trent operates Westside, one of
the many growing retail chains in India. The foresight of theTata group, which invested
in retail relatively early is paying high dividends asretail is one of the booming sectors in
India. The company has a turnover of Rs. 357.6 crores (FY 2005-2006) and currently
operates 22 stores in the major metros and mini metros of India. An international
shopping experience, a perception of values, and offering the latest styles, has created a
loyal following for Westside's own brand of merchandise.

Westside operates stores in Mumbai, Ahmedabad, Bangalore, Delhi, Chennai, Kolkata,

Hyderabad, Pune, Surat, Vadodara, Indore, Noida, Gurgaon, Ghaziabad, Mysore, Jaipur,
Lucknow, and Nagpur.

4. Bharti Walmart:

Private Limited is a joint venture betweenBhartiEnterprises,one of India's leading business groups

with interests intelecom, agri-business, insurance and retail, andWalmartthe world’sleading retailer,
renowned for its efficiency and expertise in logistics, supply chain management and sourcing. The
jointventure is

42
 
Establishing wholesale cash-and-carry stores and back-end supply chain management operations in line
with Government of India guidelines. Under the agreement, Bharti and Walmart hold 50:50 stakes in
BhartiWalmart Private Limited. The first Wholesale Cash-and-carry facility named "Best Price Modern
Wholesale" Opened in Amritsar in May 2009and subsequently in Zirakpur (Near Chandigarh),
Jalandhar, KotaBhopal, Ludhiana, Raipur, Indore, Vijayawada, Meerut, Agra, Lucknow, Jammu,
Guntur, Aurangabad ,Bathinda, Amravati ,Hyderabad and Rajahmundry.

43
1.9 SWOT ANALYSIS OF BIG BAZAAR

Strength
Prime location
 Large floor space allowing for better visual merchandising

 Large area also allows to stock a large variety of products under one roof

 Experienced and competent management

 Highly trained and motivated sales force

 Brand equity

 Large scale operations in various cities throughout the country allows them to
reap the benefits of “economies of scale”

Weakness

 Large scale of operations sometimes acts as a barrier to personalized customer

relations

 Large scale operations lead to reduced flexibility by increasing the amount of

overheads and a huge commitment in terms of fixed costs

 A large organization structure leads to delayed decisions. This can prove fatal
for a business in the dynamic fashion industry. Mumbai, this fact sometimes
results in delayed decisions in adapting to changing market trends

44
Opportunities

 Apart from the metros, cities like Ahmadabad, Pune, Lucknow, Indore and
Coimbatore have shown substantial retail presence. Most sport modern retail
formats like supermarkets, department stores and specialty chains. These
markets are expected to show exponential growth in the next few years. Thus
Food Bazaar has the opportunity to explore new markets
 According to the Consumer Outlook study, consumers are generally satisfied
with the service that organized retailers extend to them. More importantly,
they are increasingly regarding these organized retailers as providing `value-
for-money’. These findings indicate that large retailers will capture most of
the higher consumer spending

 Increasing penetration of the internet into Indian homes has provided Food
Bazaar Mall to break the geographical barriers and to increase their customer
base. The entry into online retailing, would, in fact, expand the product
categories available to the consumer

Threats:

 The time when retailers had to worry about competition only from their peers
down the street has come to an end. Food Bazaar is now facing increased
competition in the form of international retail chains that are making a beeline
towards the highly potential Indian markets. Moreover many big Indian
business houses are also vying a space in the Indian retail scene.

 According to the Consumer Outlook study, consumers are generally satisfied

with the service that organized retailers extend to them. More importantly,
they are increasingly regarding these organized retailers as providing `value-

45
 for-money’. These findings indicate that large retailers will capture most of
the higher consumer spending.

 Increasing penetration of the internet into Indian homes has provided Food
Bazaar Mall to break the geographical barriers and to increase their customer
base. The entry into online retailing, would, in fact, expand the product
categories available to the consumer.

1.10Capital structure& Balance Sheet of BIG BAZAAR

The Capital Structure page of Big Bazaar presents the Authorized Capital, Issued Capital,
and Paid-Up Equity Capital of the company over the period.

Capital Structure -

46
 Authorized Issued
Period Instrument -PAIDUP-
Capital Capital
Face Capital (Rs.
From To (Rs. cr) (Rs. cr) Shares (nos)
Value Cr)
2015 2016 Equity Share 250.0 8.7 43478261 2.0 8.7
2014 2015 Equity Share 100.0 82.9 414197702 z2.0 82.8
2013 2014 Equity Share 100.0 46.3 231582591 2.0 46.3
2011 2012 Equity Share 100.0 46.3 231582591 2.0 46.3
2010 2011 Equity Share 60.0 43.4 217071691 2.0 43.4
2009 2010 Equity Share 60.0 41.2 206142873 2.0 41.2
2008 2009 Equity Share 60.0 38.1 190320673 2.0 38.1
2007 2008 Equity Share 35.0 31.9 159291521 2.0 31.9
2006 2007 Equity Share 35.0 29.4 146751365 2.0 29.4
2005 2006 Equity Share 35.0 26.9 26884621 10.0 26.9
2004 2005 Equity Share 25.0 22.0 21997736 10.0 22.0
2003 2004 Equity Share 25.0 19.1 19137413 10.0 19.1
2002 2003 Equity Share 25.0 18.2 18184413 10.0 18.2
2001 2002 Equity Share 18.0 17.3 17319413 10.0 17.3
2000 2001 Equity Share 14.0 13.3 13319413 10.0 13.3
1999 2000 Equity Share 14.0 12.5 12519413 10.0 12.5
1998 1999 Equity Share 10.0 9.3 9264413 10.0 9.3
1997 1998 Equity Share 10.0 7.1 7090500 10.0 7.1
1996 1997 Equity Share 7.0 4.7 4727000 10.0 4.7
1992 1996 Equity Share 8.0 4.7 4727000 10.0 4.7
1991 1992 Equity Share 5.0 1.1 1069900 10.0 1.1
1990 1991 Equity Share .1 .1 7000 100.0 .1

Balance Sheet–

47
 Particulars Mar'16 Mar'15 Mar'14 Dec'12 Jun'11

12 Months 12 Months 15 Months 18 Months 12 Months

Liabilities
Share Capital 94.27 106.02 46.32 46.32 206.90
Reserves & Surplus 1779.92 5091.90 3205.33 3276.23 2671.23
Net Worth 1874.19 5197.92 3251.65 3322.55 2878.13
Secured Loan 1072.40 4187.13 5421.05 3159.35 1578.75
Unsecured Loan 50.00 13.80 82.75 46.25 352.23
TOTAL LIABILITIES 2996.59 9398.85 8755.45 6528.15 4809.11
Assets

Gross Block 260.93 5652.34 4846.25 2790.89 1775.16

(-) Acc. Depreciation .00 820.68 506.00 507.58 308.14
Net Block 260.93 4831.66 4340.25 2283.31 1467.02
Capital Work in Progress .00 274.92 363.82 209.73 100.13
Investments .00 1295.16 1349.52 2280.23 2250.52
Inventories 3297.24 3522.68 3113.29 2140.24 1762.20
Sundry Debtors 127.48 397.97 313.98 165.01 178.11
Cash and Bank 91.36 104.49 102.48 55.53 85.91
Loans and Advances 1808.66 2189.61 1766.25 1468.87 490.95
Total Current Assets 5324.74 6214.75 5296.00 3829.65 2517.17
Current Liabilities 2550.46 3164.27 2558.27 2035.92 1495.80
Provisions 38.62 53.37 35.87 38.85 29.93
Total Current Liabilities 2589.08 3217.64 2594.14 2074.77 1525.73
NET CURRENT ASSETS 2735.66 2997.11 2701.86 1754.88 991.44
Misc. Expenses .00 .00 .00 .00 .00
TOTAL ASSETS(A+B+C+D+E) 2996.59 9398.85 8755.45 6528.15 4809.11

Shareholding Pattern –

48
 Holder's Name No of Shares % Share Holding

Promoters 201705865 46.7%

Others 114086608 26.41%
Foreign Institutions 84985843 19.67%
General Public 18871671 4.37%
Financial Institutions 7631571 1.77%
NBanksMutualFunds 4682320 1.08%

HISTORICAL PRICES-

The Prices page of BIG BAZAAR Pvt.Ltd.. Captures the information on Price and
Volume for a user defined time interval. It also contains the Live Stock Price and
Volume, 52 Week High Low, Bid and Offer Price and Volume, Intraday and Historical
Price Chart.

49
 Chapter 2

Internship profile

2.1 DESCRIPTION OF THE TASK

We were given two major tasks to be completed within the span of 30 days:

1. The first task that was given to us was to do research of different products present
in BIG BAZAAR and to know the needs of those products by conducting survey
from various customers in form of questionnaires. For this purpose we visited
various BIG BAZAAR stores present in different malls viz. P&M Mall,
Vasundhara Metro Mall, The Mall, City Centre Patna

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 2. The second major task assigned to us was to conduct sales promotion activities
and selling activities.

Responsibility:

The objective being to assess the various parameters that influences a buyer to visit or

shop at departmental store thereby contributing to its turnover (in terms of sales and

profits) hence leading to its overall success

2.2 DETAILS OF INDUSTRY MENTOR:

Name: Prashant Kumar

DesignationArea Head

Department: SALES AND MARKETING

Contact no.: 9718314780

Location of internship: Mall P&M Mall Kashyap Business Park,

Khajepura, Bailey Road,Patna (Bihar)

2.3 WEEKLY REPORT

Name:KRITIKA KUMARI
Enrollment No:1504201087
Programme:MBA (DUAL)
Summer Internship Subject Area:CUSTOMER RELATIONSHIP MANAGEMENT

Week Weekly Summary

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20/06/2016 - For first 2 Weekswe were given general guidelines and instructions
30/06/2016 regarding the background of company and how it operates. We learnt
various pitches of call calling and direct sale, and pitches that we used
while we visited various institutes.

01/06/2016 - In next one week we were given a task to visit various Departmental
09/06/2016 Stores in various malls to do the survey of different retail products and
the comparision to prices

11/06/2016 - In last one week of our summer internship we were supposed to

18/07/2016 conduct customer survey by asking customers to fill questionnaires so
that to know the needs and wants of various retail products used by
them.

Chapter 3
KEY OBSERVATIONS
3.1 WORK DESCRIPTIONS

We were given two major tasks to be completed within the span of 30 days:

1. The first task that was given to us was to do research of different products present
in BIG BAZAAR and to know the needs of those products by conducting survey

52
 from various customers in form of questionnaires. For this purpose we visited
various BIG BAZAAR stores present in different malls viz. P&M Mall,
Vasundhara Metro Mall, The Mall, City Centre Patna

2. The second major task assigned to us was to conduct sales promotion activities
and selling activities.

3.2 RESPONSIBILITIES

The objective being to assess the various parameters that influences a buyer to visit or
shop at departmental store thereby contributing to its turnover (in terms of sales and
profits) hence leading to its overall success.

3.3PRACTICES FOLLOWED BY THE COMPANY

1. Board and senior management are responsible for risk management.

2. Senior management understands all firm activities and the basis of the risk
management system.

3. Authority and responsibility are clearly defined, and risk measurement and
management are independent from risk-taking functions.

4. The firm has staff with sufficient expertise to perform the risk management
functions and offer adequate systems support.

5. Risk capital is allocated to business units and products and is used for capital
budgeting purposes.

6. Stress testing is part of the risk management process.

7. New products and ventures trigger consideration of potential new risks and new
risk management procedures.

8. Financial reporting allows management to view the risk-adjusted returns of

business units, products, and activities.

9. Product pricing and rate setting decision makes reflect risk.

10. The firm has a process for quickly resolving identifiedrisk management
weaknesses.

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3.4 KEY CHALLENGES FACED

The basic challenge faced was to travel distant areas in the humid sunny weather for
conducting marketing surveys. Another major challenged faced was to ask customers to
fill up the questionnaires as we have to convince them to fill this for us for knowing
customer relationship. Apart from this while they were busy shopping rarely anyone
found it useful and interesting to give up their feedback.

CHAPTER 4
LEARNING AND VALUE ADDITION

4.1 MAJOR LEARNING DURING SIP

 Got the understanding of Indian Retail Sector

54
  How to conduct Market Research for different retail products and Services

 In depth knowledge about different Retail Products

 Knowledge about different and top leading Retail Companies

 How to do Direct Sales

 How to do Market Survey of different products

 How to do Process Handling of the customers

 How to conduct Selling and Sales Promotion Activities

4.2 WHY PRACTICAL KNOWLEDGE IS MORE IMPORTANT

THAN THEORETICAL KNOWLEDGE

o Interactive Education creates a Deeper Impact

Rather than theory. Practical education is way more interactive than
theoretical. It does not involve just teaching and lecturing irrespective of
whether the student is able to understand the concepts or not. Theory
education usually employs teachers who teach in a plain manner or books
which may or may not include interactive exercises. Whereas in practical
works, inputs from students are not just invited but are also necessary.
Interactive sessions, experiments, interactive exercises, are important
features of practical education which ensure the involvement of students,
making them learn and understand more. And learning is the fundamental
purpose of education, so in order to improve the leaning level, more
importance should be given to practical education

o Can motivate team work

While imparting practical knowledge to students, most of the activities
involve team projects or programs where students are required to work in
a group or as a team. On one hand it improves a student’s ability to
interact with his/her fellow students and encourage them all for team
work. On the other hand it also makes the learning process more fun as
students are able to grasp more while learning it in a group. They tend to
have fun in each other’s company and the whole teaching process
becomes less boring and more fun. And you learn more while having fun.

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o Interesting => Easy
This is pretty obvious. When you find something interesting and have got
your heart in it does seem easy. And especially when learning through
practical sources instead of conventional theoretical ones, the leaning
process does become comparatively easier. So why not put more stress on
practical means? Also while you are doing something practically, it
reaches your brain more effectively making it easier to understand, apply
and remember.

o It is more interesting
Field trips, projects, experiments, live studios, don’t they interest you
more than books, assignments and lectures? Am sure they do because they
are so much more interesting and engrossing than reading your regular
bookish material. I manage to survive through a one hour long chemistry
class but give me an experiment and I can stay busy in it for hours. Ask
geography students to learn the climatic conditions of a hill station or
organize a trip for them actually taking them to that hill station. What will
excite them more?

o Involves application and deals with real life situations

Learning about facts and theories are not really of any use unless you are
aware of their application in real life situation. I spent whole of my middle
school wondering that what purpose it solves by knowing Sine theta
square plus cosine theta square equals one. But when introduced to its
applications I realized what importance trigonometry holds in architecture
and its related fields. So unless you are applying your theoretical
knowledge to real life situations through practical experiments theory
doesn’t hold much good and you will keep wondering that why you are
studying that particular topic.

o Improves skills
Training and exercise are meant to improve your skills which cannot be
obtained by just theoretical knowledge. Theory can provide one with
oodles of expertise and proficiency but it can never deliver those kinds of
results and improved skills that you can get from practical education.
Again, reading a chapter of engineering won’t help, doing experiments
will surely do and will improve your engineering skills.

o Includes practice
Reading a lesson over and over again can be of little help. But performing
activities or experiments based on it involves practice and you have heard
it right, “Practice makes a man perfect”. Go on reading a guide book for a
new language without speaking that language at all and you will see no
progress. But start using that language and try conversing with other
people and you’ll see the change. You will see improvement. So just
sitting in a corner with a book or listening to a lecture has no practice

56
 involved unless the theoretical teaching is converted into practical
activities.

o Develops a better Understanding

Could you have ever understood the reflection of light had you not seen a
mirror? Just by reading about a phenomenon or a lesson, it cannot get
straight to your mind even though it may be explained in the best manner.
You actually got to see it happening in front of your eyes and not by
hearing it in somebody else’s words. Practical knowledge can help a lot
over here because it is all there. Be it understanding the phenomenon of
physics or dwelling in literature. According to author the song of a
nightingale is magnificent but how would you know that unless you listen
to it with your own ears?

o Knowledge retains in our mind

When we are cramming a lesson for a test, our brain tends to remember it
for a short while which can be shorter than the duration of your test thus
not serving that purpose also because our brain forgets it easily. You try
too hard to learn a theorem or an explanation word to word by heart but
always forget upon something. While doing it practically, it can be in form
of experiments, real life projects or educational trips, the knowledge and
the whole learning experience stays in our mind for long.

4.3 USEFULNESS OF INTERNSHIP WITH FUTURE

PERSPECTIVE

 Exposure to real-world problems and issues that perhaps are not found in
textbooks
 Cultivate adaptability and creativity in a dynamic world.
 Increase marketability to employers. On average, only 30% of graduating seniors
have job offers before graduation; however, after completing an internship, that
figure rises to 58%.
 Evaluate specific companies or specific careers prior to committing to full-time
employment—a "try before you buy" type experience.
 Ease transition from being a student to entering the workforce.
 Increase opportunities within a company for faster advancement and growth.
 Increase self-confidence in the workplace while developing an expanded network
of associates and professionals.
 Facilitate a higher starting salary than non-interns. In a recent study interns
received, on average, $2,240 more than non-interns for starting salary.
 Have résumé-building experiences while applying academic concepts and
principles.
 Spread the gospel in many areas through example and lifestyles.

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 CHAPTER 5

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

FINDINGS:

58
In this survey the findings are given below:

1. Most of the stores are targeting almost all the segments of the society with their USP
being “Price benefit”

2. All the stores are in Prime Location.

3. Every Big Bazaar outlet have motivated and trained sales force.
4. Large variety of products are available ranging from clothes, food items, electronic
goods etc.
5. Staff is provided constant training for various peculiarities of customer behavior.
6. Some of them offer discount sales and also send greetings to its loyal customers.
7. Not much difference in the Layout of the floor designs in the various branches. They
try to maintain a similarity to maintain comfort levels of customers.
8. These stores maintain Word of Mouth.
9. Customers are satisfied with the provided services.
10. International shopping experiences can be achieved from these stores.

RECOMMENDATION:

1) Convert your customers into publicity agents. Develop an incentive for them to tell
associates and friends about the value of your products or services. An endorsement
from them is more effective than any amount of advertising - and it is much cheaper.

2) Surprise your customers with unexpected value. If you sell products, include an
"unadvertised bonus" with every order. If you sell services, get into the habit of doing
something extra for every customer or client without charging for it.

3) Reward them each time they refer someone who becomes a customer. Your reward
can be as simple as a credit toward their next order from you.

4) The management of BigBazaar can improve their understanding of the role and
capabilities of advertising to improve customer relation and enhance loyalty. This

59
 understanding should in turn results in a more effective and more efficient advertising
campaign.

5)Visual Merchandising: It is often seen that the people come to the store to browse
rather than buy.

6) Schemes: In store Promotions: The people visiting the store should be encouraged
to visit the store again and again. So it is necessary to delight the shoppers with the
shopping experience.

CONCLUSION:

“Customer Service is a critical factor for keeping your clients coming back and ensuring
they’ll refer you to others”.

1: Growing your business will be a difficult task at best if you don’t perform, meet
and exceed your client’s expectations, and provide service that creates customers for
life.

2: Customer service is all about the customer’s perception. You have to do more
than just get the job done. You must deliver on all the things (big and small) that
affect the relationship with your client. Consider opportunities for improvement in the
following areas.

3: Setting/Reviewing Expectations:Do you work with your client to set clear,

appropriate, realistic expectations that you can always meet or exceed? Are you clear
about the responsibilities (both yours’ and the client’s), timelines, and expectations of
results? Are you then willing to go back and review these expectations with the client
at key points along the way?

4: Communication: Do you have mechanisms in place to ensure you’re

communicating with clients at every stage of the engagement, from the sales process

60
 through to completion of the project? Being clear about where you’re at, what’s been
completed, what’s coming up next, who’s responsible, what results you can expect,
etc.? Has the client ever had to ask you for these things?

5:Organization: Are you organized? Punctual? Reliable? When you show up to

work with your clients, have you done the work and are you prepared to make them
feel comfortable and taken care of? Even though you’ve done it hundreds, maybe
thousands of times before, do you take the time to organize and prepare to make it the
best client experience?

6: Committing to the Little Things:Don’t ever dismiss the power of all the little
things. Together they can make all the difference and really separate you from the
competition. Returning calls and emails in a timely manner. Providing useful
information to folks on a regular basis. Showing appreciation for your clients through
things like thank you notes, exclusive client-only briefings, and open house, etc.

Clearly these are not the only relevant areas for creating great customer service, I
assure you. But these were some of the Factors which might
Provide a boost to the sales figures, though I am sure the organization would have
already implemented most of these measures already.

Big Bazaar-Marketing Mix

Product Branding Price

Packaging Cost of goods

Product Design Business Expenses

Assortment Gross Margin

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Services Profit

Promotion Distribution

Advertising Logistics

Personal Selling Store Location

Sales Promotion Site Evaluation

Public Relations Transportation

Visual Merchandising Storage of goods

They seem to follow this to the core for effective Customer reach and encourage
customer loyalty.

CHAPTER–6
BIBLIOGRAPHY

6.1 WEBSITES & SEARCH ENGINES

 www.indiainfoline.com

 www.google.com

 www.businessline.com

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6.2 REFERENCES

 Internet and Company Brochures

6.3 BOOKS
 Marketing Management
- Philip Kotler
 Research Methodology
- C. R. Kothari
 Retail Marketing
-J.A.Lamba

 Customer Relationship Management

- Jagdish and Seth

CHAPTER-7
ANNEXURES

QUESTIONAIRE ON CUSTOMER-RELATIONSHIP
MANAGEMENT IN RETAIL-SECTOR (BIG BAZAAR)
CUSTOMER BASED SURVEY

1.Are you satisfied with the services provided by Big-Bazaar?

YES NO CAN’T SAY

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2. How do you find the Shopper Assistant’s behaviour?

HELPING NOT HELPING RUDE

3. How would you rate the Shopper Assistant’s behaviour on the scale of five?

5 4 3 2 1

4. Do you find the Layout of Big-Bazaar helpful in Shopping Experience?

YES NO CAN’T SAY

5. What do you like most about Big-Bazaar?

CREDIT FACILITY TRANSPORTATION FACILITY

DELIVERY SERVICES

6. How often do Food-Bazaar services exceed your expectations?

ALWAYS SOMETIMES NEVER

7. Do you think that Food-Bazaar follow the ethical Mktg. Practices like right pricing,
right quality and right quantity?

YES NO CAN’T SAY

8. What comes first when you think about Food–Bazaar?

PRICE QUALITY

9. How would you rate theme–setting display of Food-Bazaar in comparison to other?

EXCELLENT GOOD SO-SO BAD WORST

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NAME…………………………. ADDRESS………

QUESTIONAIRE ON CUSTOMER-RELATIONSHIP
MANAGEMENT IN RETAIL-SECTOR (Big BAZAAR)
RETAILOR BASED SURVEY

1. What is the most important criteria of selection for their Store Assistant and Store
Manager?

Pleasing Personality Good Communication Team Work

Commitment toward Customer needs

2. Do you display all the entire stock on the rack or some amount is kept for contingence?

Applicable to all product Applicable to some product Only to FMCG

3. Rate the following options as per your priorities while deciding the layout for store?

Security m Computerization Parking Air-conditions

4. How do you decide of point of purchase counter?

Brand Price Customer preference Product visibility

5. What is the preference order for promotional activity to create customer awareness?

Newspaper Radio jingle Advertising Banner

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6. How would you analyse customer localities factor?

Number of repeat customer localities benefit customer database

7. What is your method of analysing customer satisfaction?

Feedback No. of repeat purchase interaction of manager with customer

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