Professional Documents
Culture Documents
RESEARCH REPORT
ON
To study the Customer Relationship
Management
In Retail Sector (Big Bazaar)
SUBMITTED
TOWARDS PARTIAL FULFILLMENT FOR THE AWARD OF THE
DEGREE OF
MASTER OF BUSINESS ADMINISTRATION (M.B.A.)
SESSION 2009-2011
GHAZIABAD (U.P.)
CERTIFICATE
This is to certify that the project titled “To study the Customer Relationship
Management In Retail Sector (Big Bazaar)I” Submitted by Sagar Srivastava Roll No.
Business Adminis (M.B.A.), is a bonafied record of work carried out by the above
mentioned student in this Institute. It is further certified that this project has been submitted
to U.P. Technical University , Lucknow for the partial fulfillment of the requirement of the
course of study.
I ‘Sagar Srivastava’ hereby declares that this project report titled ‘To study the
work done by me. Information presented here is correct to the best of my knowledge.
Also the report presented has not been submitted anywhere else.
Sagar Srivastava
reputed professional courses in the field of management. This course includes both
theory and its applications as per contents of its curriculum. Research report is an
Institute of Engg. & Technology. It give exposure to our practical knowledge and also
to get interact with the various aspects of present market conditions. Each student is
examination.
The Resaserch project programmers are designed to give the managers the future
of the corporate happenings and work culture. The real life situation is really different
from the stimulated exercise enacted in an artificial environment inside. The Resaserch
project programmers are designed, so that the managers or tomorrow do not feel when
The report presented here is a result of my hard work. This project helps me to
research guide Ms. Shashi Gupta, whose active association, constant encouragement,
untiring support and generous efforts enabled me to layout the work of this research
report. This research would never have taken this final shape without her watchful help.
I would like to thanks my parents for their valuable & moral support.
All other faculty members, who all courteously responded to my queries and guided me
(SAGAR SRIVASTAVA)
1. Executive Summery 12
2. Objective 14
3. Introduction 16
• CRM
• Advantage of CRM
• Process of CRM
• Consumer Behaviour
4. Research Methodology 39
6. Findings 58
7. Swot Analysis 60
8. Limitation 63
9. Conclusion 65
9. Recommendations 68
10 Questionnaire 76
11. Bibliography 83
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’s and accelerated through the 90’s has begun to
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
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
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.
Hence this document entails me through these aspects in great detail, helping me to
• What are the strong point where the retail market are doing well.
“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”
By 2010, the list of India's top 10 retailers will have at least 5 Indian corporates.
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 World, Big Bazaar,
Spencer’s, Crosswords, The Home Store, Ebony, Bigjo’s, Saboos, Standard, Nanz, Vijay
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
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 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
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.
without considering the end user; thus, we sometimes find high-ceilinged offices and
low-ceilinged retail stores. Often, the shopper's convenience is not taken into
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
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
Indian Consumers: And even as these developments were taking place, 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
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
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
retailing.
Retail organizations exhibit great variety and new forms keep emerging. There are
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
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.
At this point, I can summarize the main development retailers and manufacturers
In India the trends are mainly in three sectors. These sectors are:
New retail forms and combinations continually emerge. Bank branches and ATM
counters have opened in supermarkets. Gas stations include food stores that make more
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.
outlets. Discount stores, catalog showrooms, and department stores all compete for the
same consumers. The competition between chain superstores and smaller independently
owned stores has become particularly heated. Because of their bulk buying power, chains
get more favorable terms than independents, and the chains’ large square footage allows
Today’s retailers are moving toward one of two poles, operating either as mass
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
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
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
handling systems.
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-good companies.
There are a number of reasons behind this fragmented retail market. Some of the
• High taxes.
• No exposure to media.
• 1. Customer Acquisition.
• 2. Customer Retention.
• 3. Customer Extension.
• 4. Marketing Orientation.
• 5. Value Creation.
• 6. Innovative IT.
1. Customer Acquisition - This is the process of attracting our customer for the first
increase the number of customers that purchase from us for the first time.
2. Customer Retention - Our customer returns to us and buys for a second time. We
keep them as a customer. This is most likely to be the purchase of a similar product or
3. Customer Extension - Our customers are regularly returning to purchase from us.
We introduce products and services to our loyal customers that may not wholly relate to
our loyal customers have purchased them, our goal is to retain them as customers for the
and services.
4. Marketing Orientation - means that the wholes organisation is focused upon the
needs of customers. Customer needs are addressed by the Three Levels of a Product
whereby the organisations not only supplies the actual, tangible product, but also the
core product and its benefit, and also the augmented product such as a warranty and
customer service. Marketing orientation will focus upon the needs of consumers for all
three levels of a product. (N.B. 'market' orientation and 'marketing' orientation are not
the same).
5. Value Creation - centres on the generation of shareholder value based upon the
satisfaction of customer needs (as with marketing orientation) and the delivery of a
be efficient, speedy and focus upon the needs of customers. Whilst IT and/or software
are not the entire story for CRM, it is vital to its success. CRM software collects data on
consumers and their transactions. Huge databases store data on individuals and groups of
individuals. In some ways, CRM means that an organisation is dealing with a segment of
Organisations will track individuals, and try to market products and services to them
based upon similar buyer behaviour seen in other individuals (e.g. When Amazon tells
you that customers that viewed/bought the same product as you, also bought another
product).
Customer relationship activities have the most impact on customer retention. Every
customer service encounter has the potential to gain repeat business or have the
services.
The first thing you find when looking into the world of Customer
• "CRM is the business strategy that aims to understand, anticipate, manage and
PWC Consulting
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
One just needs to think of the local shop owner who knew everyone 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 .
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 everyone of your customers. In theory this will enable them to make quick,
informed decisions, create cross selling and up selling opportunities, measure marketing
effectiveness and deliver personalized Customer Care. Sound’s great doesn’t it !!!
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
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
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
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
The Future
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 utilise 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
By applying this methodology Big Bazaar learned more about customers' needs and
behaviors 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,
CRM helps businesses use technology and human resources to gain insight into the
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
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.
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.
“The degree of customer satisfaction you deliver determines the level of long-term
success you will achieve in business.” - --- Training Mantra for Sales Force
Don't just make sales. Create customers - satisfied customers. In addition to the
immediate profit they provide on the first sale, satisfied customers help you build
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
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
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
"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.
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.
customer and the company closer together. There are many different areas in
customers.
information about the customer. This information can be buying habits or simply
demographics. The idea behind this is that a business analyzes 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.
ratings. Customers can also be sent e-mails that market targeted products.
Marketing the right products to the right customers can significantly increase a
participants in one study were given a choice between $6 and an elegant Cross
pen. A second group chose among $6, the 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
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
sets of three or more choices. One of the implications of this finding is that
decisions will be wrong are more likely to choose better-known brands. In a test
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
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
for consumption at a later time. In each of three weeks, Simonson asked a group
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
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
Doughboy collector's plate) provides them with a reason for rejecting it.
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,
Methodology has many dimension and research methods constitute a part of the research
methodology. Thus research methodology does not only talk of research methods but also
considered the logic behind the methods used in the context of research study and explain
why we are using particular technique or method and why we are not using other so that
research results are capable of being evaluated either by the researcher himself or by
research methodology.
This section includes the over all research design, the data collection method and
analysis procedure.
(2) Data Collection Process: It is one of the most complicated and tough jobs for
my research work though I thoroughly enjoyed it. For data collection it is scheduled
before survey work, like which to get feedback thus primary and secondary sources of
Primary sources:
Secondary sources:
Sample size refers to the number of item to be selected from the universe to constitute
Sample size is n (n<N). I have collected data from 100 customer of big bazaar. So my
After completing the survey as a first step towards analyzing the data, I prepared a
master chart,
After properly tabulating the data I analyzed each question of the questionnaire using
(BIG BAZAAR)
80
70
60
50
40 Series1
30
20
10
0
yes No can't say
Result:
From the above table it is clear that customers are satisfied with the services of Big
Bazaar because out of 100% customers 75% has given the positive answer in favor
of Big Bazaar.
75 15 10
HELPING NOT HELPING RUDE
80
70
60
50
40 Series1
30
20
10
0
helping not helping rude
From the above table it is clear that customer are satisfied with the attitude of the
five?
40 25 20 10 5
5 4 3 2 1
45
40
35
30
25 rank
20 customers
15
10
5
0
1 2 3 4 5
Result:
to shopper .
60 30 10
YES NO CAN’T SAY
70
60
50
40
Series1
30
20
10
0
yes no can't say
Result:
Out of 100% customer 60, have told that they like the layout of Big Bazaar while 30
DELIVERY SERVICES 6
60
50
40
30
20
10
0
customer services credit fecility delivery fecility
Result:
Out of 100% Customer ,4% customers like delivery services of Big Bazaar while
42% customers like the credit facility&54% customers like customer service. So it is
Delightness)
50
45
40
35
30
25 S eries 1
20
15
10
5
0
A lway s S om etim es Never
Result:
Out of 100% Customer, 45% customers said that Big Bazaar always provide better
55 33 12
YES NO CAN’T SAY
60
50
40
Series1
30
20
10
0
Yes No can't say
Result:
Out of 30 customer,25 customers have told that BigBazaar following the ethical
marketing practices.
16
PRICE 74 QUALITY
can'tsay
10%
Quality
16%
Price
Quality
can'tsay
Price
74%
Result:
Customer said that when they think about Big Bazaar they think about price. out of
100% customer 74% customer have told this while 16% customer said that they
comparison to other?
35 32 28
Good Average Poor can’t say 5
40
35
30
25
20 Series1
15
10
0
Good Average Poor Can'tsay
Result:
Out of 100% customers, 35% customers said that Food Bazaar theme is good while
32% customer said that it is average &28% customer said that it is poor.
12
Pleasing Personality 5
Good Communication 25
Team Work
58
Commitment Toward Customer needs
60
50
40
Series1
30
Series2
20
10
0
Personality Communication Team work customer need
Out of 100% retailers, 58% has given importance to the store manager who have
the quality of identifying customer need, while 12% given importance to team work
Only to FMCG
5
90
80
70
60
Series1
50
Series2
40
Series3
30
20
10
0
Applicable to all product Applicable to some product Only on FMCG
Result:
Out of 100% retailer, 77% have told that they show the entire product to customer,
15 15 65 5
Brand Price Customer preference Product visibility
70
60
50
40
Series1
30 Series2
20
10
0
Price Brand Customer prefrence Product visibility
Out of 100% Retailer, 65% has said they use The customer preference for point of
purchase counter while 15% said that they use brand & price, 5% product
visibility.
awareness?
48 25 14 13
Newspaper Radio jingle Advertising Banner
Result :
Out of 100% retailer, 48% has told that they use Newspaper as their main tool for
promotional.
database
70
60
50
40
Series1
30 Series2
20
10
0
Repeat purchase Loyality Other benefits
Result:
100% Out of Retailer, 65% retailer said that they get the customer satisfaction by
repeat purchase,
67 15 18
Feedback No. of repeat purchase interaction of manager
with customer
80
70
60
50
Series1
40
Series2
30
20
10
0
Feedback Repeat purchase interaction to employees
Result :
Out of 100%retailer, 67% have told that analyzing the customer satisfaction
1. Most of the stores are targeting almost all the segments of the society with their USP
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 are provided constant training for various pecularities of customer behaviour.
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
Strengths
Prime location
Large area also allows to stock a large variety of products under one roof
Brand equity
Large scale operations in various cities throughout the country allows them to
Weaknesses
relations
A large organization structure leads to delayed decisions. This can prove fatal
for a business in the dynamic fashion industry. Mumbai, this fact sometimes
Apart from the metros, cities like Ahmedabad, Pune, Lucknow, Indore and
Coimbatore have shown substantial retail presence. Most sport modern retail
markets are expected to show exponential growth in the next few years. Thus
with the service that organized retailers extend to them. More importantly,
for-money’. These findings indicate that large retailers will capture most of
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
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
• The topic was very vast topic yet very important also.
• Due to time restraints it was not possible to study in depth to get knowledge what
• Nevertheless, many facts and data are such that they are not to be disclosed
• Hence because of that I cannot express any opinions upon various issues which it
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
following areas.
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
communicating with clients at every stage of the engagement, from the sales process
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?
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
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
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
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
4) The management of Big Bazaar can improve their understanding of the role and
understanding should in turn results in a more effective and more efficient advertising
campaign.
to visit the store again and again. So it is necessary to delight the shoppers with the
shopping experience. It has been observed in international shopping malls that there
are in-store promotions like lucky draws for entrants surprise winners and so on at
random
They seem to follow this to the core for effective Customer reach and encourage
customer loyalty.
Address:
Parvati Vihar, 52/6 V.I.P.Road, Baguihati, Kolkata
Phone no. (033) 25703651 / 3655
Store Opening Date 11 Oct 2001
Space : 25,000 - 30,000 sq.ft.
Mumbai-400 013.
Phone no. (022) 56626703 - 4
Store Opening Date 13 July 2002
Space 40,000 sq.ft.
Phone no.
Store Opening Date October 5, 2005
Space 47,000 sq ft
Phone no.
Store Opening Date Apr 7, 2006
Space 42,000 sq ft
YES
NO
CAN’T SAY
HELPING
NOT HELPING
RUDE
3.How would you rate the Shopper Assistant’s behavior on the scale of five?
YES
NO
CAN’T SAY
CREDIT FACILITY
TRANSPORTATION FACILITY
DELIVERY SERVICES
ALWAYS
SOMETIMES
NEVER
PRICE
QUALITY
GOOD
Average
Poor
Can’t say
Manager?
Pleasing Personality
Good Communication
Team Work
11.Do you display all the entire stock on the rack or some amount is kept for
contingence?
Only to FMCG
Brand
Price
Customer preference
Product visibility
13. What is the preference order for promotional activity to create customer awareness?
Newspaper
Radio jingle
Advertising
Banner
localities benefit
customer database
Feedback
• Marketing Management
- Philip Kotlar
• Research Methodology
- C. R. Kothari
• Retail Marketing
- J.A.Lamba
• www.indiainfoline.com
• www.google.com
• www.businessline.com