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INDUSTRY PROFILE 1.1 India Retail Industry India retail industry is the largest industry in India, with an employment of around 8% and contributing to over 10% of the country's GDP. Retail industry in India is expected to rise 25% yearly being driven by strong income growth, changing lifestyles, and favorable demographic patterns. It is expected that by 2016 modern retail industry in India will be worth US$ 175- 200 billion. India retail industry is one of the fastest growing industries with revenue expected in 2007 to amount US$ 320 billion and is increasing at a rate of 5% yearly. A further increase of 7-8% is expected in the industry of retail in India by growth in consumerism in urban areas, rising incomes, and a steep rise in rural consumption. It has further been predicted that the retailing industry in India will amount to US$ 21.5 billion by 2010 from the current size of US$ 7.5 billion. Shopping in India has witnessed a revolution with the change in the consumer buying behavior and the whole format of shopping also altering. Industry of retail in India which has become modern can be seen from the fact that there are multi- stored malls, huge shopping centers, and sprawling complexes which offer food, shopping, and entertainment all under the same roof. India retail industry is expanding itself most aggressively; as a result a great demand for real estate is being created. Indian retailers preferred means of expansion is to expand to other regions and to increase the number of their outlets in a city. It is expected that by 2010, India may 1

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have 600 new shopping centers. In the Indian retailing industry, food is the most dominating sector and is growing at a rate of 9% annually. The branded food industry is trying to enter the India retail industry and convert Indian consumers to branded food. Since at present 60% of the Indian grocery basket consists of nonbranded items. India retail industry is progressing well and for this to continue retailers as well as the Indian government will have to make a combined effort. India Shopping Malls •

Scope of the Indian Retail Market

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Indian Organized Retail Market

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Growth Factors in Indian Organized Retail sector

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Opportunities in Indian Organized Retail sector

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Challenges facing the Indian Organized Retail sector

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Role of Supply Chain in Indian Organized Retail

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Employment Generation by Indian Organized Retail Sector

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Indian Organized Retail Sector's Impact on Lifestyles

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Emerging Trends in Indian Organized Retail Sector

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Growth of Retail Companies in India

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Evolution of Indian Retail

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FDI in Indian Organized Retail Sector

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Formats in Indian Organized Retail Sector

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1.2 Retail: A strong pillar of Indian economy Retailing is the last mile infrastructure to access and deliver good to consumers. Retail forms the backbone of the nation’s delivery system and its importance can be exemplified by the network of 15,000 KVIC outlets, which support 4 lake plus small & medium handicraft manufacturers across the country. It also serves as the last mile infrastructure to the manufacturers as well the government for tax collection. For instance, the success of the VAT proposal depends on its being able to implement at the retailer level, but nobody has consulted with them as a body yet on this issue. Furthermore, retailing is also an important and large contributor to the GDP and a major employment generator. In India, for the last four years its contribution to the GDP was around 13%. The sector gainfully employs 6-7% of the total workforce in India. 1.3 Changing Retail landscape Indian retail is fragmented with over 12 million outlets operating in the country and only 4% of them being larger than 500 square feet in size. This is in comparison to 0.9 million in USA, catering to more than 13 times of the total retail market size as compared to India. Thus India has the highest number of outlets per capita in the world with a widely spread retail network but with the lowest per capita retail space (@ 2 sq. ft. per person). Recently, majority of store formats have hit India. Yet traditional format stores namely the kirana shop, pan/bidi shop, hardware shop, weekly 3

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haats and bazzars from the bulk. Formats like department stores, malls, specialty stores as well as discounters are shaping the burgeoning organized sector in India. Though still in its infancy with less than 2% share of retail sector, organized retail has definitely struk its roots in India. What we are looking now are more corporate backed organized retail operations. Till seven years back organized retail was largely restricted to the southern India, barring the Bata chain. Organized retail has now shifted gears and is moving ahead with accelerated speed throughout the country, without any direct incentives provided by the government. Organized retail is growing at a rate of about 40% per annum over the last three years. With size of Rs. 15,000 cr. (USD 3 billion), organized retail is very much on track according to KSA Tchnopak’s projections made in 1999 based on in house research. The projection claimed that organized retail would grow to be the Rs. 35,000 cr. (USD 7.1billion) by 2005. 1.4 Winning retail formats of tomorrow With an evaluation of organized retail in India, it is important that Indian retailers re-invent themselves. So far Indian retailers have differentiated themselves on product and service. However, these alone will not be sufficient for the differentiating the store. While product differentiation would play a significant role, the gap will diminish due to ease in global sourcing for all competitors. Experience in term of the ‘Look & Feel’ of the store would be important, but again, the gap will diminish over time. Superior price value offering would continue to be a major differentiator.

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Additionally, convenience of “proximity” would emerge soon as a differentiator and initiate opening of small footprint stores (as chain) as well as catalog / Internet shall make a major impact even in India. Hence, it is important for the retailers to: •

Clearly think through value proposition

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Take clear focus on “consumer segments”, and specific “unmet

consumer needs” •

Develop “India” specific “formats” keeping in view the

infrastructure, logistics, and purchasing power constraints in focus •

Expand carefully, but confidently and ambitiously

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Invest substantially more in process and system development,

logistics, and supply chain management and customer relationship: the usual management jargon but unfortunately – not always understood and practiced in our country. 1.5 Consumer Perception Towards Departmental Stores Retailing Retailing includes all the activities involved in selling or services directly to final consumers for personal, non business use. A retailer or retail store is any business enterprise whose sales volume comes primarily from retailing. Any organization selling to final consumer – whether it is a manufacturer, wholesaler, or retailer is doing retailing. It dos not matter how the goods or services are sold, (by person, mail, telephone, vending machine, or

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internet) or where they are sold (in a store, on the street, or in the consumer’s home) 1.6 Type of the Retailers Consumers today can shop for goods and services in a wide variety of retail organizations. There are store retailers, non store retailers, and retail organizations. Perhaps the best known type of retail is the department store. Japanese department store such as Takashimaya and Mitsukoshi attract millions of shoppers each year. These store features art galleries, cooking classes, and children’s play ground. Retail store types pass through stages and decline that can be described as the retail life cycle. A type emerges, enjoys a period of accelerated growth, reaches maturity, and then declines. Older retail forms took many years to reach maturity; newer retail forms reach maturity much more quickly. Department stores took 80 years 0 reach maturity, whereas retail outlets reached maturity in 10 years. -Specialty Stores Narrow product line with deep assortment. A clothing store would be a single line store; a men’s clothing stores would be a limited line store; and a men’s custom shirt store would be a super specially store. -Department store Several products typically clothing, home furnishing, and household, goods with each line operated as a separate department manage by specialist buyers or merchandisers. Example: Dhiraj sons, Sahaj Super store etc. 6

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-Super market Relatively large, low-cost, low margin, high volume, self service operation designed to serve total needs for foods, laundry, and household products. Examples: Cross Roads Mumbai, food Emporium, jewel. -Convenience store Relatively small store located near residential area, open long hours, seven days a week, and carrying a limited line of high-turnover convenience product at slightly higher prices, plus takeout sandwiches, coffee, soft drink. -Discount store Standard merchandise

sold at lower prices with lower margins and

higher volume. Discount retailing has moved into specialty merchandise store, such as discounts sporting goods stores, electronics stores, and bookstores. Such types of stores are mostly in the U.S. like Wall-Mart. -Off- Price Retailer Merchandise bought at less than regular wholesale prices and sold at less than retail: often leftover goods, overruns, and irregulars. Factory outlets are owned and operated by manufactures and normally carry the manufacture’s surplus, discontinued, or irregular goods. Example: Raymond’s (suiting and shirting), Ralph Lauren (upscale apparel). Independent of price retailers are owned and run by entrepreneurs or by division of larger retail corporation.

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Warehouses clubs (or wholesale clubs) sell limited selection of brand name grocery items, appliance, clothing and a hodgepodge of other goods at deep discounts to members who pay annual membership fees. Wholesale clubs operate in hug, low overhead, warehouses like facilities and offer rock bottom prices typically 20% to 40% blow super market and discount- prices. -Super store About 35000 square feet of selling space traditionally aim at meting consumer’s total need for routinely purchase food and non food items, plus services such as laundry, dry cleaning, shoe repair, check cashing and bill paying. A new group called category killers carries a deep assortment in a particular category and a knowledgeable staff. -Hypermarkets Range between 80,000 and 220,000 square feet and combined supermarket, discount, and warehouse retailing. Product assortment includes furniture, large and small appliances, clothing, and many other items. They feature bulk display and minimum handling by store personnel, wit discounts for customers who are willing to carry heavy appliance and furniture out of the store. Hypermarket originated in France. -Catalog showroom Broad selection of high- markup, fast moving, brand name goods at discount prices. Customers order goods from a catalog, and then pick

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these goods up at merchandise pickup area in the store Example: Service Merchandise. Although the overwhelming bulk (97%) of goods and services are sold through stores, non-store retaining has been growing much faster than store retailing. Non store retailing falls into four major categories: direct selling, direct marketing (which includes telemarketing and internet selling), automatic vending and buying services. -Corporate retailing Although many retail stores are independently owned, an increasing number are apart of some form of corporate retailing. Corporate retail organizations achieve economies of scale, greater purchasing power, wider brand recognition, and better trained employees. The major types of corporate retailing- corporate chain store, voluntary chains, retailer cooperatives, franchises and merchandising conglomerates. 1.7

Major Types of Retail Organization

-Corporate chain store Two or more outlets commonly owned and controlled, employing central organizations buying and merchandising, and selling similar lines of merchandise. Their size allows buying in large quantities at lower prices, and they can afford to hire corporate specialist to deal with pricing, promotion, merchandising, inventory control, and sales forecasting. -Voluntary chain A wholesaler sponsored group of independent retailer engaged in bulk buying and common merchandising. 9

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-Retailer co-operative In depend retailers who set up a central buying organization and conduct joint promotion efforts. Consumer co-operative: A retail firm owned by its customers. In consumer co-operatives residents contribute money to open their own store, vote on its policies, elect a group to manage it, and received patronage dividends. -Franchise organization Contractual association between a franchiser (manufacture, wholesaler, service organization) and franchisees (independent business people who buy the right to own and operate one or more units in the franchise system). Franchising has been prominent in dozens of product and services areas. Example: McDonald’s, subway, pizza hut. -Merchandising conglomerate A free form corporation that combines several diversified retailing lines and forms under central ownership, along with some integration of distribution and management.

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COMPANY PROFILE 2.1 Big Bazaar – India’s Real Retail Story 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 Bazaar’s journey began in October 2001, when the young, first generation entrepreneur Kishore Biyani opened the country’s first 11

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hypermarket retail outlet in Kolkatta (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 conceptualizing 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 favorite shopping destination.

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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 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 customers’ 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.”

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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 consumer’s insight, has inculcated the habit of ‘observing, understanding customers’ behavior’, 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. Future Group plans to have 300 stores and is expecting revenues of Rs 13,000 crore by year 2011. 2.2 Largest Hypermarket Big Bazaar, India's largest hypermarket chain, a part of the Future Group, today announced its biggest shopping event 'Sabse Saste 3 Din', to be held across its 106 Big Bazaar stores from January 24 to 26. Continuing its efforts to provide the best shopping deals and savings to the consumers, Big Bazaar is all set to make this years' Republic Day weekend shopping truly memorable with rock bottom prices, best possible discounts and mega offers. Speaking about the mega shopping event, Big Bazaar Business Manager, Tamil Nadu, Noor Alam said from daily household needs of food and grocery to apparels, footwear, toys, luggage, kitchenware, bed and bath ware, home dcor, furniture, electronics and fine gold jewellery ''Sasbe Saste 3 Din'' would have an exciting array of attractive offers, deals and discounts, ensuring something for everyone in the family to shop for and a maximum value for money for all customers. Apart from the flagship Big Bazaar and

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Food Bazaar stores, other Future Group retail formats like Furniture Bazaar, Electronic Bazaar, Depot, and Home Bazaar stores will also be part of this mega campaign. This year over six million consumer footfalls were expected at over 150 stores (Big Bazaar, Food Bazaar, Furniture Bazaar, Electronics Bazaar, Depot and Home Bazaar stand alone stores) across the country, including 106 Big Bazaar stores in 55 cities, Mr. Alam added. BIG BAZAAR the country’s leading discount hypermarket now gives its shoppers one more reason to celebrate on 26th Jan, 2006. 26th Jan, 2006 will go down in the history of shopping as the ‘Maha Savings Day’. It will actually be the ‘sabse sasta din’ for shoppers across all Big Bazaar and Food Bazaar outlets which shall be open from 8:00am onwards up to midnight, on that day ONLY. The ‘Maha Savings Day’ will see shoppers get deals they have never seen or heard before. The offers are spread across categories from electronics to utensils to apparel to furniture to food. Thus, there will be a reason for everyone to celebrate on 26th Jan, 2006; be it a house wife who will be able to get a pressure cooker for Rs. 299 or fashion conscious who will get a pair of 2 Ruf n Tuf Jeans for just Rs. 499; the teenager wanting a trendy mobile can get a Motorola C115 for Rs. 1399; or the status conscious can get a designer sofa for Rs. 15,999 or a 21’’ Flat TV for Rs. 5890 and many more such offers.

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That’s not all, a customer will get sugar for 1 year Free on shopping above Rs. 4000/- and on shopping above Rs. 8000/-, he will get 1 year sugar as will as Charminar basmati rice Free. Commenting on this initiative, Mr. Sanjeev Agrawal, President Marketing, said, “At Big Bazaar adding value to our consumer and making his/ her shopping experience memorable has always been a priority. The Big Bazaar has always supported the consumer’s unvarying effort of saving the maximum while getting the best. It is a pleasure for us to introduce such offers so as to continuously add value to our consumers’ shopping experience and gain their trust and loyalty which in turn tremendously increases our credibility. We are sure that the consumers shall take full advantage of the ‘sabse sata din’ in the history of shopping’ It’s true that ‘Shopping ka ye din phir nahi aayega’ – since all these offers are available only on the 26th of Jan, 2006 across all the Big Bazaar and Food Bazaar outlets. 2.3 Big Bazaar 'Maha Bachat' offers Continuing with its efforts to provide the best bargain to Indian consumers, Big Bazaar, the popular hypermarket concept of Pantaloon Retail (India) Limited and part of the Future Group, today announced the most anxiously awaited bi-annual ‘5-Day Maha Bachat’ offer across the country, starting 11 August and continuing till the 15 August.

Never before in the history of India, a consumer campaign of such large magnitude has been witnessed. Over 100 stores of different ‘Value’ 16

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formats including Big Bazaar, Food Bazaar, Electronic Bazaar and Furniture Bazaar - catering to the entire needs of a consumer, will be part of the Mega ‘5-Day Maha Bachat’ offer. From daily household needs of food and grocery to apparels, footwear, toys, luggage, kitchenware, bed and bath wear, home décor, furniture, electronics and fine gold jewellery - the ‘5-Day Maha Bachat’ offer will have an exciting array of attractive deals and discounts, ensuring something for everyone in the family to shop for and maximum ‘Value for Money’ for each of its customer. For the first time, Pantaloon Retail’s 22-carat fine jewellery store format Navaras will join the club with some novel offers. Navaras, the hallmark jewellery store has 31 stores across 25 cities as Shop in Shop within Big Bazaar. Additionally for these 5 days, Future Money, part of theFuture Capital Ltd., will offer attractive finance scheme on electronic and furniture goods with easy EMI options and other benefits. For the net savvy citizens, Big Bazaar will extend the ‘Maha Bachat’ offers on the e-retailing site www.futurebazaar.com. While for those who are not very net savvy and those who don’t like to wait in long queues, Future Bazaar will set up exclusive kiosks outside Big Bazaar stores in cities like Mumbai, Delhi, Chennai, Lucknow and Trivandrum, for the consumers to select their shopping needs, pay and get it all delivered at home. 2.4 Some of the ‘Maha Bachat’ offers 17

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Mens, Ladies & Kids apparel (select range) - Buy 1 Get 1 Free

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31pc Opalware dinner set Rs.1,650 – Just for Rs. 799/-

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Purchase Gold and get equal quantity of Silver Free

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Koryo 21 Pure Flat CTV – For Rs 4990

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Staples combo (10 Kg Atta + 5 Kg Sugar + 5 Kg Rice) – Just for

Rs 444 –

40% off on Skybags Knight range of trolleys

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Ladies & Gents Fashion Watches Rs 249

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Branded sports shoes Rs. 800/- + Get 50% Off

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Sanyo Semi Automatic Washing Machine - Rs 4999/-

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Branded Direct Cool Refrigerator 180 ltr

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Bedroom Set (Queen bed with storage + Mattress with 2 pillows +

for Rs 6499/-

3 Door Wardrobe with built in dresser+ stool+ night stand) worth Rs. 45,000/- for ROCK BOTTOM Rs. 23,999/–

Buy a mobile upto Rs. 6000/- and get a pre-paid connection Free

with 6 months validity –

Buy VLCC products for Rs 750 and get a weighing machine worth

Rs 750 free –

Books (select titles) - Buy 2 Get 1 Free

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12" Bicycle Rs.1,114/- for just Rs. 899/-

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Big Bazaar Big Bazaar s New Campaign Big Bazar Online

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Big Bazaar, hypermarket chain and a part of the Future Group, is

conducting its biggest shopping event, ‘Sabse saste 3 din’ (lowest price for three days). 18

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The offer would be available across 106 Big Bazaar stores from January 24 to 26. Apart from the flagship Big Bazaar and Food Bazaar stores, other future group retail formats such as Furniture Bazaar, Electronic Bazaar, Depot and Home Bazaar would also be part of the campaign, according to Noor Alam Ansari, Area Manager, Operations, Pantaloon Retail (India) Ltd. For the net savvy consumers, the company would extend the campaign on to its e-retailing website www.futurebazaar.com For those who are not net savvy and also did not want to wait in queues, Futurebazaar.com would set up exclusive kiosks outside Bigbazaar stores in important cities such as Chennai, Delhi, Lucknow, Mumbai and Thiruvananthapuram, where consumers can select what they want from the catalogue, pay there and get it all delivered at home. 2.5 Introduction of the company Pantaloon Retail forayed into modern retail in 1997 with the launching of fashion retail chain, Pantaloons in Kolkata. In 2001, it launch Big bazaar, a hypermarket chain that combines the look and feel of Indian Bazaars, with aspect of modern retail, like choice, convenience and hygiene. This was followed by food Bazaar, food and grocery chain and launch central, a first of its kind seamless mall located in the heart major Indian cities. Some of it’s other format include, collection I (home improvement products), E-Zone (consumer electronics), depot (books, music, gift, and stationary), all (fashion apparel for plus size individuals), shoe factory 19

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(footwear) and Blue sky (fashion accessories). It has recently launched it retailing venture, futurebazaar.com. The group’s subsidiary companies include, Home Solution retail India Ltd, Pantaloons Industries Ltd, Galaxy entertainment and Induce league clothing. The group also has joint venture companies with a number of partners including French retailer Etam group, Lee cooper, Manipal Healthcare, Talwarkar’s, Gini & jony and Liberty shoes. Planet retail, a group company owns the franchisee of international brands like marks & Spencer, Debenhams, Next and Guess in India. 2.6 History of the company Pantaloon retail (India) limited, is India’s leading retail company with presence across multiple lines of business. The company owns and massages multiple retail formats that cater to a wide cross-section of the Indian society and is able to capture almost the entire consumption basket of the Indian consumer. Headquarter in Mumbai, the company operates through 4 million square feet of retail space, has over 140 stores across 32 cities in India and employs over 41,000 people. The company registered a turn over of Rs.2019 cr. for FY 2005-06. “Future” – the word which signifies optimism, growth, achievement, strength, beauty, rewards, and perfection. Future encourages us to explore areas yet unexplored, write rules yet unwritten, create new opportunities and new successes. To strive for a glorious future brings to us our strength, our ability to earn, unlearn and re-learn our ability to evolve.

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We, in future group, will not wait for the future to unfold itself but create future scenarios in the customer space and facilitate consumption because consumption is development. Thereby, we will effect socio- economic development for our customers, employees, shareholders, associates and partners. Our customer will not just get what they need, but also get them where, hoe and when they need. –

We will not just post satisfactory results, we will write success

stories. –

We will not just operate efficiently in the Indian economy, we will

evolve it. –

We will not just spot trends we will set trends by marrying our

understanding of the Indian consumer to their need of the tomorrow. This understanding that helped us succeeds. And it is this that will help us succeed in the future. We shall keep relearning. And in this process, do just one thing 2.7 Scope of the Indian Retail Market The scope of the Indian retail market is immense for this sector is poised for the highest growth in the next 5 years. The India retail industry contributes 10% of the countries GDP and its current growth rate is 8.5%. In the Indian retail market the scope for growth can be seen from the fact that it is expected to rise to US$ 608.9 billion in 2009 from US$ 394 billion in 2005.

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The organized retailing sector in India is only 3% and is expected to rise to 25- 30% by the year 2010. There are under construction at present around 325 departmental stores, 300 new malls, and 1500 supermarkets. This proves that there is a tremendous scope for growth in the Indian retail market. The growth of scope in the Indian retail market is mainly due to the change in the consumers’ behavior. For the new generation have preference towards luxury commodities which have been due to the strong increase in income, changing lifestyle, and demographic patterns which are favorable. The scope of the Indian retail market have been seen by many retail giants and thats the reason that many new players are entering the India retail industry. The major Indian retailers are: –

Pantaloons Retail India Ltd

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Shoppers Stop

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Bata India Ltd

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Music World Entertainment Ltd

Judging the scope for growth in the India retail industry many global retail giants are also entering the Indian retail market. They are : –

Tesco

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Metro AG

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Wal- Mart

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The scope for growth in the Indian retail market is seen mainly in the following cities: –

Mumbai

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Delhi

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Pune

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Ahmedabad

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Bangalore

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Hyderabad

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Kolkata

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Chennai

The scope of the Indian retail market is very vast. And for it to reach its full potential the government and the Indian retailers will have to make a determined effort. 2.8 Indian Organized Retail Market Indian organized retail market is growing at a fast pace due to the boom in the India retail industry. In 2005, the retail industry in India amounted to Rs 10,000 billion accounting for about 10% to the country's GDP. The organized retail market in India out of this total market accounted for Rs 350 billion which is about 3.5% of the total revenues. Retail market in the Indian organized sector is expected to cross Rs 1000 billion by 2010. Traditionally the retail industry in India was largely unorganized, comprising of drug stores, medium, and small grocery stores. Most of the organized retailing in India have started recently and

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is concentrating mainly in metropolitan cities. The growth in the Indian organized retail market is mainly due to the change in the consumers behavior. This change has come in the consumer due to increased income, changing lifestyles, and patterns of demography which are favorable. Now the consumer wants to shop at a place where he can get food, entertainment, and shopping all under one roof. This has given Indian organized retail market a major boost. Retail market in the organized sector in India is growing can be seen from the fact that 1500 supermarkets, 325 departmental stores, and 300 new malls are being built. Many Indian companies are entering the Indian retail market which is giving Indian organized retail market a boost. One such company is the Reliance Industries Limited. It plans to invest US$ 6 billion in the Indian retail market by opening 1000 hypermarkets and 1500 supermarkets. Pantaloons is another Indian company which plans to increase its retail space to 30 million square feet with an investment of US$ 1 billion. Bharti Telecoms an Indian company is in talks with Tesco a global giant for a £ 750 million joint venture. A number of global retail giants such as Walmart, Carrefour, and Metro AG are also planning to set up shop in India. Indian organized retail market will definitely grow as a result of all this investments.

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Indian organized retail market is increasing and for this growth to continue the Indian retailers as well as government must make a combined effort. 2.9 Growth Factors in Indian Organized Retail sector The growth factors in Indian organized sector are various but it is mainly due to the fact that India's economy is booming. Also, the rise in the working population which is young, pay- packets which are hefty, more nuclear families in urban areas, rise in the number of women working, more disposable income and customer aspiration, western influences and growth in expenditure for luxury items. All these are the factors for the growth in Indian organized retail sector. In fact, India retail industry is the fastest growing industry in India and it accounts for 10% of the country's GDP. In 2006, the retail industry in India amounted to US$ 200 billion and out of this; the organized retail sector in India amounted to US$ 6.4 billion. By 2010, the Indian organized retail sector is expected to rise to US$ 23 billion. In 2003, the Indian organized retailing sector accounted for more than 4.5 million sq. ft of space absorption by malls. Many Indian companies have entered the retail industry in India and this is also a factor in the growth of Indian organized retail sector. Reliance Industries Limited is planning to invest US$ 6 billion in the organized retail sector in India by opening 1500 supermarkets and 1000 25

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hypermarkets. Bharti Telecoms is planning a joint venture worth £ 750 million with Tesco a global retail giant. Pantaloons is planning to invest US$ 1 billion in order to increase its retail space to 30 million square feet. Such huge investments is also a factor in the growth of the organized retail sector in India. Global retail giants are also entering the retail industry in India and this is also one of the factors in the growth of the organized retail sector in India. The global retail giants who are entering the organized retail sector in India are: –

Wal- Mart

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Tesco

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Carrefour SA

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Metro AG

The factors for growth in Indian organized retail sector are many and thats the reason behind its massive growth. But for this to continue both the Indian retailers and the government will have to work together. 2.10 Opportunities in Indian Organized Retail sector The opportunities in Indian organized retail sector are many for this sector is witnessing a boom. The retail industry in India amounted to US$ 200 billion in 2006, and out of this amount the Indian organized retail sector amounted to US$ 6.4 billion. The opportunities in India organized retail sector can be judged

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from the fact that by 2010 it is expected to rise to US$ 23 billion. The various opportunities in the organized retail sector in India are mainly there for the Indian consumers behavior pattern has changed. Now the Indian consumer gets more hefty pay- packages, is younger, a large number of women are working, western influences, and more disposable income have opened a lot of opportunities in Indian organized retail sector. The Indian consumer wants to shop, eat and get entertainment in one place and is have also given Indian organized retail sector an opportunity to grow. The Indian government in 2005 allowed foreign direct investment (FDI) in single brand retail to 51%. This have opened up a lot of opportunities in India organized retail sector. In fact 325 departmental stores, 300 new malls, and 1500 supermarkets are being built which shows the tremendous opportunities in the organized retail sector in India. Many Indian companies seeing the various opportunities in organized retail sector in India have entered it. Pantaloons have decided to increase its retail space to 30 million square feet with an investment of US$ 1 billion. Reliance Industries Limited is targeting for annual sales of US$ 25 billion by 2011. It is planning to invest US$ 6 billion in order to open 1,500 supermarkets and 1000 hypermarkets. Bharti Telecoms is planning a joint venture with Telco a global retail giant worth £ 750 million.

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The opportunities in the organized retail sector in India have also increased with the desire of many global retail giants to set up shop here. The global retail giants who are entering the Indian organized retail sector are: –

Tesco

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Wal- Mart

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Metro AG

–

Carrefour SA

The opportunities in Indian organized retail sector are varied and it must be fully exploited by the Indian retailers. The challenges facing the Indian organized retail sector are various and these are stopping the Indian retail industry from reaching its full potential. The behavior pattern of the Indian consumer have undergone a major change. This have happened for the Indian consumer is earning more now, western influences, women working force is increasing, desire for luxury items and better quality. He now wants to eat, shop, and get entertained under the same roof. All these have lead the Indian organized retail sector to give more in order to satisfy the Indian customer. The biggest challenge facing the Indian organized retail sector is the lack of retail space. With real estate prices escalating due to increase in demand from the Indian organized retail sector, it is posing a challenge to its growth. With Indian retailers having to shell out more for retail space it is effecting there overall profitability in retail.

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Trained manpower shortage is a challenge facing the organized retail sector in India. The Indian retailers have difficultly in finding trained person and also have to pay more in order to retain them. This again brings down the Indian retailers profit levels. The Indian government have allowed 51% foreign direct investment (FDI) in the India retail sector to one brand shops only. This have made the entry of global retail giants to organized retail sector in India difficult. This is a challenge being faced by the Indian organized retail sector. But the global retail giants like Tesco, Wal-Mart, and Metro AG are entering the organized retail sector in India indirectly through franchisee agreement and cash and carry wholesale trading. Many Indian companies are also entering the Indian organized retail sector like Reliance Industries Limited, Pantaloons, and Bharti Telecoms. But they are facing stiff competition from these global retail giants. As a result discounting is becoming an accepted practice. This too brings down the profit of the Indian retailers. All these are posing as challenges facing the Indian organized retail sector. The challenges facing the Indian organized retail sector are there but it will have to be dealt with and only then this sector can prosper. 2.11 Role of Supply Chain in Indian Organized Retail The role of supply chain in Indian organized retail is very significant for on it depends the growth of this sector. The Indian Supply Chain Council have been formed to explore the challenges that a retailer faces and to 29

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find possible solutions for India. The role of supply chain in the organized retail sector in India should be a shelf- centric partnership between the retailer and the manufacture for this will create supply chains that are loss free. This will also give rise to top and bottom line growth. In the organized retail sector in India the presence of fresh produce (vegetables and fruits) is very small. This is so for the nature of supply chain is very fragmented. This shows the important role of supply chain in the organized retail sector in India. In the organized retail market in India the role of supply chain is very important for the Indian customer demands at affordable prices a variety of product mix. It is the supply chain that ensures to the customer in all the various offerings that a company decide for its customers, be it cost, service, or the quickness in responding to ever changing tastes of the customer. The infrastructure in India in terms of road, rail, and air links are not sufficient. And so warehousing plays a major role as an aspect of supply chain operations. To overcome these problems, the Indian retailer is trying to reduce trans portion costs and is investing in logistics through partnership or directly. The Indian organized retail sector is growing so the role of supply chain becomes all the more important. It should become all the more responsive and adaptive to customers demand. There is also need for the supply chain to be more cost efficient and 30

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collaborative to win the immense competition in this sector. The role of supply chain in Indian organized retail has expanded over the years with the boom in this industry. The growth of the Indian retail industry to a large extent depends on supply chain, so efforts must be made by the Indian retailers to maintain it properly. 2.12 Employment Generation by Indian Organized Retail Sector Lots of employment generation by Indian Organized Retail Sector in the near future. India is going through a radical economic change. Though it is very infant stage, people can feel the climate is changing. The unorganized retailers takes the lion's share in the Indian retail sector, but the organized retailers are growing at a good pace, and promises an increase of proportion of 9 - 10% by 2010. This is to be the largest sector after the agricultural sector. The increase in the number of consumers twinned with the introduction of organized sector has brought numerous corporate investments in retail sector. The entry of super markets, enormous departmental stores, and shopping malls have encouraged the retailers to look at new business plans of expansion. An economic growth on a monumental scale is offered by the Indian retail sector, equally in the national and international market which in 31

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turn will generate a huge source of employment and a variety of options for the consumers. The Ernst & Young's report 'The Great Indian Retail Story', anticipates that the Indian retail sector would come up with 2 million employment opportunities within the year 2010.

2.13 Benefits to the economic growth:Better quality products and services would lead to better competition More exports bring more foreign direct investments Organized Indian retail sector would encourage tourism Along with the employment boom there would be a vast development in the expertise of the human resource There would remain future scope for improvements in agriculture, small, and medium scaled with the help of the Indian retail sector The present employment in the retail business is nearly 4 crores and around 20 crores depends on this sector. There is a scope of better exposure to the international standards with the entry of transnational companies, which in turn is encouraging more & more retail management programs to open up and help bridging the gap of supply & demand of talented professionals for management. 2.14Indian Organized Retail Sector's Impact On Lifestyles The Indian organized retail sector's impact changed the lifestyle of the Indian consumers drastically. The evident increase in consumerist activity is colossal which has already chipped out a money making recess for the 32

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Indian organized retail sector. With the onset of a globalized economy in India, the Indian consumer's psyche has been changed. People have become aware of the value of money. Nowadays the Indian consumers are well versed with the concepts about quality of products & services. These demands are the visible impacts of the Indian organized retail sector. Since the liberalization policy of 1990, the Indian economy, and its consumers are getting whiff of the latest national & international products, the with help of print & electronic media. The social changes with the rapid economic growth due to trained personnels, fast modernization, and enhanced availableness of retail space are the positive effects of liberalization. The growth factors of organized retail in India are:–

Increase in per capita income which in turn increases the household

consumption –

Demographical changes and improvements in the standard of

living Change in patterns of consumption and availability of low-cost consumer credit –

Improvements in infrastructure and enhanced availability of retail

space –

Entry to various sources of financing

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The non-food sector, segments comprising apparel, accessories, fashion, lifestyle felt the significant change with the emergence of new stores formats like convenience stores, mini marts, mini supermarkets, large supermarkets, and hyper marts. Even food retailing has became an important retail business in the national arena, with large format retail stores, establishing stores all over India. With the entry of packaged foods like MTR, ITC Ashirbad, fast foods chains like McDonald's, KFC, beverage parlors like Nescafe, Tata Tea, Café Coffee and Barista, the Indian food habits has been altered. This stores have earned the reputation of being 'super saver locations'. India will be an unique business arena in whole of the global economy, for the social and economic parameters would overrule the big bang of the vivid competition. Previously mastered by the unorganized retail sector, India opened up late as an economy in 1990 until then the idea of retail formats were spread by the government. 2.15 Emerging trends in Indian organized retail sector The emerging trends in the Indian organized retail sector would help the economic growth in India. There is a fantastic rise in the Indian organized retail sector in a very short period of time between 2001 and 2006. Eventually, out of the shadows of the unorganized retail sector, India has a chance of tremendous economic growth, both in India and abroad.

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The emerging trends in the Indian organized retail sector are also adding up to the development of the Indian organized retail sector. The relaxation by the government on regulatory controls on foreign direct investments has added to the process of the growth of the Indian organized retail sector. The infrastructure of the retail sector will evolve radically in the recent future. The emergence of shopping malls are increasing at a steady pace in the metros and there are further plans of expansion which would lead to 150 new ones coming up in India by 2008. As the count of super markets is going up much faster than rate of growth in retail sector, it is taking the lions share in food trade. The growth of the Indian organized retail sector is anticipated to be heavier than the growth of the gross domestic product. Alterations in people's lifestyle, growth in income levels, and encouraging conventions of demography are proving favorable for the new emerging trends in the Indian organized retail sector. The success of this retail sector would also lie in the degree of penetration into the lower income strata to tap the possible customers in the lowest levels of society. The demands of the buyers would also be enhanced by more access to credit facilities. With the arrival of the Transnational Companies (TNC), the Indian retail 35

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sector will undergo a transformation. At present the Foreign Direct Investments(FDI) is not encouraged in the Indian organized retail sector but once the TNC'S get in they inevitably try to oust their Indian counterparts. This would be challenging to the retail sector in India. The trends to follow in the future: –

The Indian Organized retail sector will grow up to 10% of total

retailing by 2010. –

No one single format can be assumed as there is a huge difference

in cultures regionally. –

The most encouraging format now would be the hypermarts.

–

The hyper mart format would be further encouraged with the entry

of the TNCs. 2.16 Growth of Retail Companies in India Growth of Retail Companies in India exhibits the boom in the retail industry in India over the years. The increase in the purchasing power of the Indian middle classes and the influx of the foreign investments have been encouraging in the Growth of Retail Companies in India. -Growth of Retail Companies in India : Overview Growth of Retail Companies in India is still not yet in a matured stage with great potentials within this sector still to be explored. Apart from the retail company like Nilgiri's of Bangalore, most of the retail companies are sections of other industries that have stepped in the retail sector for a better business. The Growth of Retail Companies in India is most 36

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pronounced in the metro cities of India, however the smaller towns are also not lagging behind in this. The retail companies are not only targeting the four metros in India but also is considering the second graded

upcoming

cities

like Ahmedabad,

Baroda,

Chandigarh,

Coimbatore, Cochin, Ludhiana, Pune, Trivandrum, Simla, Gurgaon, and others. The South Indian zone have adopted the process of shopping in the supermarkets for their daily requirements and this has also been influencing other cities as well where many hypermarkets are coming up day to day. -Reasons for the fast Growth of Retail Companies in India: The retail companies are found to be rising in India at a remarkable speed with the years and this have brought a revolutionary change in the shopping attitude of the Indian customers. The Growth of Retail Companies in India is facilitated by certain factors like -

–

existing Indian middle classes with an increased purchasing power

–

rise of upcoming business sectors like the IT and engineering firms

–

change in the taste and attitude of the Indians

–

effect of globalization

–

heavy influx of FDI in the retail sectors in India

2.17Retails Industry News -Aditya Birla Retails plans expansion in India Aditya Birla Group, the business conglomerate is set to increase the number of its retail outlets in India. The company is on an expansion 37

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mode and has announced to increase the number to 500 such retail stores across India. The group entered into the Indian retail business a year ago and has 400 retail outlets called 'More'. It has strong presence in the cities of

Delhi,

Mumbai,

Chennai,

Vadodara,

Bangalore,

Hyderabad,

Mangalore, Pune, Mysore, Visage and Vijayawada. During the launch of its Vadodara outlet of 'More', Mr. Kumar Mangalam Birla, Chairman of the group, said by the end of March 2008 the numbers of 'More' retail outlets to be increased to 500 from 430. Mr. Birla points out that his company's first retail store was launched in Pune, in May 2007 and now has presence in almost all major and minor cities of India. Industry sources believe that at this rate of growth the company may also end up the financial year 2008-2009 with 500 new stores of "More". Dedicated Electronic Supermarkets are also in the pipeline of the company and is expected to roll out a few outlets very soon. He further said that the estimated size of the Indian retail market is around US $ 300 billion and the cumulative market share of supermarkets and hyper markets in India is less than 4%. Although the Indian retail sector is registering decent growth but huge potential is still untapped and the multi-chain retail stores are yet to reach their desired level of growth in India. He added that the Indian consumer was long due for world class shopping experience and with increased per capita income the target seems achievable. Mr. Birla also said that his company has aggressive expansion plans across India. At present the company has two megastores in the country and it wishes to increase its number substantially 38

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soon. Mega-store is a shopper's paradise it offers more than 60,000 products catering to each and every need of a household. The company has already identified few development sites and is on the look out for more viable options for infrastructure development. With the launch of India's first hypermarket - the 'More Mega Store', the company took a giant step in making its mark in the organized retail market of India. This colossal hypermarket is about 70,000 square feet and the average size of each mega store would be of around 80,000 square feet. Further, these giant retail stores house around 60,000 SKUs of different types and brands of merchandise. Mr. Birla said that 10 more hypermarkets are on offer. He points out bottle necks like high real estate prices in the Tier I cities, which is a stagnating factor and most of the second rounds of hypermarkets can be expected in Tier II cities. Moreover, glitches like protest from traders and middleman towards growth of organized retail in India may eat away the growth opportunity it offers. -Growth Phase of Indian Retail Sector to Continue The phase of high growth of Indian retail sector is expected to Continue due to huge amounts of investments and breaking up of traditional concepts in this sector. These are leading to various changes and are providing further boost to the growth of the Indian Retail Sector. The Indian Retail Sector that includes the traditional retail and the modern 39

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retail is estimated to grow at a very fast pace from US$ 336 billion, in 2006 to US$ 590 billion, by 2011. The traditional retail sector is expected to increase from US$ 324 billion, in 2006 to US$ 493 billion, by 2011. The share of the modern retail in the Indian Retail Sector is also estimated to increase from 4% in 2008, to 16% in the next five years. This exceptional growth is expected to take place in the retail sector due to large amounts of investment which is estimated to be about US$ 35 billion in the next five years. The "cashand- carry" activities are expected to receive the majority of investments. The maximum amount of growth in the Indian Retail Sector will be registered in the topmost 50 to 60 markets that are located in the urban areas. These markets would be mostly supermarkets and hypermarkets. However, these supermarkets and hypermarkets will also witness fast erosions in their margins. Further, it is estimated that in the longer run, the convenient stores that are located in the local neighborhood will continue to survive. A major focus area in the Indian retail sector is the supply chain management. In the western countries, the retail sector has a highly developed system of supply chain. However developments in supply chain in Indian retail sector has been quite slow. Other areas that need attention for the growth of the Indian retail sector to 40

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continue includes duty and tax structures, infrastructure, rising land prices and effective trend forecasting. Trend forecasting needs to be done in the country especially in the segments of cosmetics, apparel and footwear for this will help the retail companies to curtail their expenses substantially. Also another area that requires attention is manpower for it is estimated that the Sector of Indian Retail will suffer from shortage of manpower by about a million people, by 2012. The chains in the Indian retail sector need to frequently change their stocks and also adopt concepts like home delivery. If all these areas are given immediate attention then the growth phase of Indian retail sector would continue at a very fast pace. The Indian retail sector would then witness the setting up of retail parks that are flourishing in Europe. Further, the growth of the Indian retail sector would help in making the country ready for big retailers by 2015- 2016. 2.18 Company Profile Pantaloon Retail is the flagship enterprise of the future group, which is positioned to cater to the entire Indian consumption space. The future group operates through six verticals: Future Retail (encompassing all retail business), Future Capital (financial products and service), and Future brand (management of all brands owned or managed by group companies), Future space (management of retail real estate), Future logistics (management of supply chain and distribution) and Future media (development and management of retail media).

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Future capital Holdings, the group’s financial arm, focused on asset management and consumer finance. It manages two real estate investment funds (Horizon and Kshitij) and consumer related private equity fund, In division. It also plans to get into insurance, consumer credit and other consumer related financial products service in the near future. Future Group’s vision is to, “Deliver everything, Everywhere, Every time to Every Indian consumer in the most profitable manner”. One of the core values at future group is, ‘Indians’ and its corporate credo is – Rewrite rules, Retail values. Achievements/Objectives National Retail Federation International retail of the year – Pantaloon Retail (India) Ltd. The national retail federation is the largest retail trade association with over 1.4 million member organization in the US and across the world. Some of the past recipients of this award include Metro AG, Carrefour, Ito – Yokado, Zara and Boticario. Retail Asia, Retail Asia Specific Top 500Awards. –

International retail of the year – Pantaloon Retail (India) Ltd. The

national retail federation is the largest retail trade association with over 1.4 million member organization in the US and across the world. Some of the past recipients of this award include Metro AG, Carrefour, Ito – Yokado, Zara and Boticario. 2006Image of Retail awards 2006 42

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–

Mr. Kishor Biyani – Retail Face of the year

–

Big-Bazaar – Best value Retail store

–

Big-Bazaar – Best Retail Destination

–

Food Bazaar – Best Food and grocery store

–

Readers Digest Platinum Trusted Brand Award

–

Big-Bazaar- Earning trusted Place in the everyday lives of

consumers –

CNBC Awaaz Consumer Awards

–

Big-Bazaar: Most preferred store

Retail Asia Publishing PRIL – Numero Uno Retail organization of India 2005 Readers Digest and Awaaz Consumer Award –

Big Bazaar – Most preferred, large, Food and grocery store

–

Readers Digest Platinum Trusted Brand Award

–

Big Bazaar – Earning a trusted place in the everyday lives of

consumers Images Retail Awards 2005 –

PRIL – Most admire Retailer of the year

–

Food Bazaar – Retailer of the year (food and grocery)

–

Big Bazaar – retailer of the year (Value Retailing)

–

Central – retail launch of the year

Business today selected PRIL among: –

Top 20 companies in India to watch in 2005 43

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–

India’s most investor- friendly companies in the top 75

India’s biggest wealth creator in the top 100, - 2004. Images Retail Awards 2004 –

PRIL – Most admire Retailer of the year

–

Food Bazaar – Retailer of the year (food and grocery)

–

Big Bazaar – retailer of the year (Value Retailing)

–

Central – retail launch of the year

Reid & Taylor and DLF Awards –

PIRL – Retailer of the year

2003 –

Indian express Award

–

PRIL- Marketing excellence and excellence in brand building

2.19 Collaborate/joint venture –

Pantaloon Industries LTD.

Pantaloon Industries Limited was incorporated in 1987 and its shares are listed on the Bombay Stock Exchange. The main activities of PIL are to set up textile units and manufacturing and marketing of fabrics and readymade garments. –

Home Solution Retail (India) Ltd.

Home Solution Retail India Ltd. (HSIRL) leads the groups foray in the home improvement and consumer electronics retailing segment. It caters to home management requirement products, including furnishings and textiles, furniture, consumer electronics, home electronics and home 44

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services; it operates retail formats like Home town, Furniture Bazaar, Collection I, E-zone, Electronic Bazaar and Got It. –

Future Capital Holdings

Future capital is the financial arm of the group and is involved in asset management (both private equity and real estate Fund) with plans to get into other financial service including insurance, credit and other consumer related financial services. Its associates companies are Kshitij Investment Advisory Co. Ltd., In division Investment Advisers Ltd., and Ambit Investment Advisory co. Ltd., –

CovergeM Retail (India) Ltd.

CovergeM Retail (India) Ltd., leads the groups foray into the communication It product segment. It operates formats like M- Port, M Bazaar and Gen M. –

Induce League Clothing Ltd.

The group owns the majority stake in Induce League Clothing Ltd., one of the leading apparel manufacturers and marketers in India. Some of Its leading brands include Indigo Nation, Scullery, Urbana, Urban yoga and jealous. –

Galaxy Entertainment Corporate Ltd.

The groups own a stake in Galaxy Entertainment Corporate Ltd. Bowling Company, Sports Bar and brew Bar. –

Planet Retail Holdings Ltd.

The group is a joint venture partner in Planet Retail Holdings Ltd., which operates sports, lifestyle and leisure retail chain. It also owns the

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franchisee and distribution rights of brands like Marks and Spencer, Guess, Dagenham and Puma in India. –

Foot mart Retail

Foot mart retail is a joint venture with liberty shoes and is engaged in the retailing of Footwear product in India. –

GJ Future Fashions

GJ Future fashion is a joint venture wit kids apparel manufacturer - Gini & Jony. –

Capital And Retail India

The group is the joint venture partner in Capital and Retail India, along with Singapore- based Capital and limited. The company provides retail management services to retail properties owned or managed by various group companies and Investment funds.

INTRODUCTION TO PROJECT 3.1 Objective of the study It is obvious that no report is ever prepaid without any objective. There is at least on (primary) objective behind working at this particular report. The primary and secondary objectives behind working at this report are as follow: Primary Objectives: –

To study the “Customer Relationship Management” of the Big-

Bazaar. –

To study the awareness of the “Big-Bazaar”. 46

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–

To study the customer satisfaction about the “Big-Bazaar”.

–

To study the scheme awareness which provide by the “Big-

Bazaar”. –

To study the staff behavior towards customers.

–

To study for solve the customer problem by “Big-Bazaar”.

–

To study for what customer become to understand by “Big-

Bazaar”. –

To study about any special event for customers, provided by “Big-

Bazaar”. Secondary Objective: –

To solicit various suggestion from the respondents for Big bazaar

improve performance. –

To get the opinion from regular customer about the pricing stock

level, range of all products, schemes provided by them, and all about the given facility like location, ambience, parking etc.

3.2 Benefit of the study: 1.

By this study the retail shop will be able to understand the major

factors influencing to buyer’s purchase decision, their quality preference and their awareness about the brand and the most important thing the decision maker regarding purchase. 2.

By considering all above information the retail store can set an

effective marketing strategy by which it can increase its market share. 47

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THEORETICAL CONCEPT 4.1 The History of CRM Customer relationship management is a concept that became very popular during the 1990s. It offered long term changes and benefits to businesses that chose to use it. The reason for this is because it allowed companies to interact with their customers on a whole new level. While CRM is excellent in the long term, those who are looking for short term results may not see much progress. 48

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One of the reasons for this is because it was difficult to effectively track customers and their purchases. It is also important to realize that large companies were responsible for processing tremendous amounts of data. This data needed to be updated on a consistent basis. In the last few years, a number of changes have been made to Customer relationship management that has allowed it to advance. These capabilities have allowed CRM to become the system that was once envisioned by those who created it. However, the biggest problem with these newer systems is the price. A number of personalized Internet tools have been introduced to the market, and this have driven down the cost of competition. While this may be a bane for vendors who are selling expensive systems, it is a bonanza for small companies that would otherwise not be able to afford CRM programs. The foundation for CRM was laid during the 1980s. During this time, it was referred to as being database marketing. The term "database marketing" was used to refer to the procedure of creating customer focus groups that could be used to speak to some of the customers of the company. The clients who were extremely valued were pivotal in communicating with the firm, but the process became quite repetitive, and the information that was collected via surveys did not give the company a great of information. Even though the company could collect data through surveys, they did not have efficient methods of processing and analyzing the information. As time went on, companies 49

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begin to realize that all they really needed was basic information. They needed to know what their customer purchased, how much they spent, and what did with the products they purchased. The 1990s saw the introduction of a number of advances in this system. It was during this time that term Customer relationship management was introduced. Unlike previous customer relationship systems, CRM was a dual system. Instead of merely gathering information for the purpose of using for their own benefit, companies started giving back to the customers they served. Many companies would begin giving their customers gifts in the form of discounts, perks, or even money. The companies believed that doing this would allow them to build a sense of loyalty in those who brought their products. Customer relationship management is the system that is responsible for introducing things such as frequent flyer gifts and credit card points. Before CRM, this was rarely done. Customers would simply by from the company, and little was done to maintain their relationship. Before the introduction of CRM, many companies, especially those that were in the Fortune 500 category, didn't feel the need to cater to the company. In the minds of the executives, they have tremendous resources and could replaces customers whenever it became necessary. While this may have worked prior to the 1980s, the introduction of the Information Age allowed people to make better decisions about which companies they

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would buy from, and global competition made it easier for them to switch if they were not happy with the service they were getting. 4.2 CRM Introduction CRM, or Customer relationship management, is a number of strategies and technologies that are used to build stronger relationships between companies and their customers. A company will store information that is related to their customers, and they will spend time analyzing it so that it can be used for this purpose. Some of the methods connected with CRM are automated, and the purpose of this is to create marketing strategies which are targeted towards specific customers. The strategies used will be dependent on the information that is contained within the system. Customer relationship management is commonly used by corporations, and they will focus on maintaining a strong relationship with their clients. There are a number of reasons why CRM has become so important in the last 10 years. The competition in the global market has become highly competitive, and it has become easier for customers to switch companies if they are not happy with the service they receive. One of the primary goals of CRM is to maintain clients. When it is used effectively, a company will be able to build a relationship with their customers that can last a lifetime. Customer relationship management tools will generally come in the form of software. Each software program may vary in the way it approaches CRM. It is important to realize that CRM is more than just a technology. 51

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Customer relationship management could be better defined as being a methodology, an approach that a company will use to achieve their goals. It should be directly connected to the philosophy of the company. It must guide all of its policies, and it must be an important part of customer service and marketing. If this is not done, the CRM system will become a failure. There are a number of things the ideal CRM system should have. It should allow the company to find the factors that interest their customers the most. A company must realize that it is impossible for them to succeed if they do not cater to the desires and needs of their customers. Customer relationship management is a powerful system that will allow them to do this. It is also important for the CRM system to foster a philosophy that is oriented towards the customers. While this may sound like common sense, there are a sizeable number of companies that have failed to do it, and their businesses suffered as a result. With CRM, the customer is always right, and they are the most important factor in the success of the company. It is also important for the company to use measures that are dependent on their customers. This will greatly tip the odds of success in their favor. While CRM should not be viewed as a technology, it is important to realize that there are end to end processes that must be created so that customers can be properly served. In many cases, these processes will use computers and software.

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Customer support is directly connected to CRM. If a company fails to provide quality customer support, they have also failed with their CRM system. When a customer makes complaints, they must be handled quickly and efficiently. The company should also seek to make sure those mistakes are not repeated. When sales are made, they should be tracked so that the company can analyze them from various aspects. It is also important to understand the architecture of Customer relationship management. The architecture of CRM can be broken down into three categories, and these are collaborative, operational, and analytical. The collaborative aspect of CRM deals with communication between companies and their clients. The operational aspect of the architecture deals with the concept of making certain processes automated. The analytical aspect of CRM architecture deals with analyzing customer information and using if for business intelligence purposes. Each one of these elements are critical for the success of a CRM system. A company must learn how to use all three properly, and when they do this proficiently, they will be able to build strong customer relationships and ensure their profits for a long period of time. As more businesses continue to compete on a global level, it will become more important for them to use successful Customer relationship management techniques. focal point of success.

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4.3

CRM's Evolution - what you need to know

-Barter Beginnings What is the history of CRM? Customer Relationship Management originated years before the start of the first millennium in Mesopotamia. Farmers who were eager to sell their surplus produce became the first initiators of the customer oriented processes we are now familiar with. With the passage of time and the first millennium an accurate record of transactions was kept by the merchants accounting for what was sold and whom it was sold to. This list of customers provided the first comprehensive customer oriented data and proved to be the beginning of customer oriented strategies. The advent of the 1990's however saw a more refined customer oriented implementation taking place, laying the ground for the CRM strategy as we now know it. How did this come about? -Tesco's Achievements Tesco was instrumental in bringing this about. Dunham’s collaboration with it due to the influence of Edwina Dunn and Clive proved to be the foundation for CRM. Since these two individuals had realized the importance of knowing and understanding their customers, they understood the supreme need for adopting the right customer approach. Tesco the second largest grocer in the UK collaborated with Dunham and implemented a customer loyalty program used in 12 of their stores.

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Known as the Tesco Club Card Program it focused entirely on the customer and implemented the necessary business activity changes with the customer in view. While doing this it assisted in the collation of the information about customer preferences and the net result was amazing. Profits soared, competitors complained and Tesco reigned supreme. Its additional focus on customers proved to be the focal point of success. Watching competitors realized that this was but the right approach to adopt and that it generated huge funds. They realized that customer retention and customer loyalty were but a natural by-product. -CRM's Launch Realization that this approach was the right one and its subsequent implementation by Tesco was CRM's launch in the world wide market. From then on it was smooth sailing for CRM. Hailed as the customer strategy of the decade CRM was the new option for organizations. The history of CRM states that initially CRM focused less on big industries and far more on small and medium industries. Since the revenue from large corporate was higher it was felt that these industries should be the focal point. With the passing of time this notion changed and the importance of focusing on medium and small industries was noted. Today CRM solutions have turned CRM into a necessary commodity for 55

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medium to small businesses and are being implemented in a wide range of industries. Various vendor solutions have been improvised catering to a vast area. -CRM in Vogue Proving absolutely rewarding the new trend of CRM -'on hire basis' has proven to be the new advantage. Initially, owning CRM was regarded as absolutely advantageous but with the passage of time it became imminently clear that CRM ownership is not as helpful to an organization as it could be. Owning a CRM solution was less beneficial than acquiring it on a hire basis. Clearly it is more practical from the cost covering aspect. With a hired model, phased implementation also becomes easier. The history of CRM has yet another page added to it as CRM in the new millennium becomes a necessary tool for almost all industries aspiring to make their customers their 4.4 Customer Relationship Process “It costs five times more to acquire a new customer than to retain one” Customer relationship management (CRM) consists of the processes a company uses to track and organize its contacts with its current and prospective customers. Customer Relationship Management continues to be the most vibrant, critical and evolving technology category in today's market. Typical CRM goals are to improve services provided to customers, and to use customer contact information for targeted marketing.

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4.5 Types of CRM 1) Operational CRM Operational CRM provides support to "front office" business processes, e.g. to sales, marketing and service staff. Interactions with customers are generally stored in customers' contact histories, and staff can retrieve customer information as necessary. 2) Sales Force Automation (SFA) Sales Force Automation automates sales force-related activities such as: 57

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•

Activity Management: Scheduling sales calls or mailings

•

Tracking responses

3) Analytical CRM Analytical CRM analyzes customer data for a variety of purposes: •

Designing and executing targeted marketing campaigns

•

Designing and executing campaigns, e.g. customer acquisition,

cross-selling, up-selling •

Analyzing customer behavior in order to make decisions relating to

products and services (e.g. pricing, product development) •

Management information system (e.g. financial forecasting and

customer profitability analysis 4) Collaborative CRM Collaborative CRM covers aspects of a company's dealings with customers that are handled by various departments within a company, such as sales, technical support and marketing. 5) Consumer Relationship CRM Consumer Relationship System (CRS) covers aspects of a company's dealing with customers handled by the Consumer Affairs and Customer Relations contact centers within a company 6) Geographic CRM

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Geographic CRM (GCRM) combines geographic information system and traditional CRM. Geographic data can be analyzed to provide a snapshot of potential customers in a region or to plan routes for customer visits. 4.6 Benefit of CRM •

Provide better customer service

•

Increase Customer Revenue

•

Increase Customer Life-Cycle Value

•

Discover New Customers

•

Help Sales Staff to close deal fast

•

Simplifying Marketing and Sales Process

•

Make Call Centre more effective

4.7 Implementation of CRM

Many CRM project "failures" are also related to data quality and availability. Data cleaning is a major issue. If a company's CRM strategy is to track life-cycle revenues, costs, margins, and interactions between individual customers, this must be reflected in all business processes. Data

must

be

extracted

from

multiple

sources

(e.g.,

departmental/divisional databases such as sales, manufacturing, supply chain, logistics, finance, service etc.), which requires an integrated, comprehensive system in place with well-defined structures and high data

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quality. Data from other systems can be transferred to CRM systems using appropriate interfaces. Because of the company-wide size and scope of many CRM implementations, significant pre-planning is essential for smooth roll-out. This pre-planning involves a technical evaluation of the data available and the technology employed in existing systems. This evaluation is critical to determine the level of effort needed to integrate this data. Equally critical is the human aspect of the implementation. A successful implementation requires an understanding of the expectations and needs of the stakeholders involved. An executive sponsor should also be obtained to provide high-level management representation of the CRM project. An effective tool for identifying technical and human factors before beginning a CRM project is a pre-implementation checklist. A checklist can help ensure any potential problems are identified early in the process. 4.8 Privacy and data security

One of the primary functions of CRM software is to collect information about customers. When gathering data as part of a CRM solution, a company must consider the desire for customer privacy and data security, as well as the legislative and cultural norms. Some customers prefer assurances that their data will not be shared with third parties without their prior consent and that safeguards are in place to prevent illegal access by third parties. 60

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4.9 Why CRM and Conventional Corporate Culture are at Odds CRM does not mesh well with conventional corporate culture (with the exception, again, of business-to-business key account management). Its most significant and dramatic successes are likely to be found in nonpublic companies, many of whom are not eager to trumpet their successes in the business press or at trade shows. There are three prevalent corporate inhibitors to making CRM work: 1) Cultural Most companies, alarming as this might sound, don't really care about their customers. If they did, customers wouldn't be frustrated, abused, stifled, stymied, and mistreated the way they are. Based on my experiences as a customer in the U.S. in 2002, I can safely say that things have never been worse. Airlines, banks, telecoms, Internet providers are universal customer abusers, where rude service people and ignorant technical help are the order of the day. The University of Michigan each year does a study of customer satisfaction in the U.S., and it's steadily declined since 1994! Customer satisfaction, in fact, is now at just about an all time low in numerous categories. One of America's biggest banks just came in at 60%, which is way, way below sea level. Customers will normally award you 75% customer satisfaction just for showing up! 2) Economic CRM requires investment spending, which means that increased profits will not be visible until some time in the future. For publicly traded 61

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companies, anything beyond next quarter is too far out even to contemplate. When you layer on top of this the current worldwide recession, the appetite for infrastructure investment spending disappears entirely. The corollary of this is that any company wise and rich enough to make the investment now might in the future have a great and sustainable advantage over its competitors. 3) Linguistic Customer Relationship Management is fraught with so much jargon and so many acronyms - beginning with the tiresome "CRM" itself - that senior management's eyes glaze over. I personally have watched several Chief Executive Officers quietly pray for death as yet another series of impenetrable terms were flung their way by managers and vendors unwilling or unable to speak plain English. OLAP, Data Warehousing, ERP, P-CRM, drilling down, WAP, ADRI, on and on until the head droops and the mind craves anything, anything at all, that sounds like normal people talking to normal people. 4.9 A look at the Industries that can adopt CRM Who uses CRM? CRM costs approximately $500 - $750 per year for small/medium businesses. With prices as low as this the earlier notion that CRM is but only an option for large corporate does not hold good. CRM's application includes a wide range of industries ranging from retail to

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education to the health sector and areas as offbeat as relationship marketing and knowledge management. List of industries that can opt for CRM: Pharmaceuticals & Life Science The Pharmaceuticals & Life Science sector is unlike any other. It requires large amounts of data and information processing. CRM provides for this demand with its ability to store volumes of customer data. Financial Services The financial services marketplace is rapidly expanding. Investment banking, private equity and other financial institutions are trying to manage client relationships while developing overall sales. CRM achieves this with its ability to cut costs, increase efficiency and manage customers while retaining relationships with them. Health care Customer Relationship Management helps hundreds of health care clients achieve their marketing goals. CRM predicts future medical needs in the industry. It helps greater return on investment for hospitals, employers, physicians etc. Manufacturing Normally we tend to think of large machinery, factories etc when we think of manufacturing but this industry as well needs CRM to maximize profits. CRM enables them to sell to customers both directly and indirectly.

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Real Estate Agents and property professionals face major problems with clients. With increasing competition the real estate industry is more challenging than ever before. CRM helps marketing, sales and service operations and helps the organization understand and manage its clients effectively. Retail The Retail industry is symbolic of and closer to the customer than any other industry. CRM's knowledge of the customer, its comprehensive study of customer preferences helps boost profits, sales and customer retention. Travel CRM enables airlines and travels minimize time and cost as it contains a comprehensive amount of data on customers that can be used in daily dealings with them. Implementing CRM software helps to build, manage and serve your client base. Banking CRM enables the banking industry to maintain a customer profile. This creates a holistic view of customers. It makes sure that the right services are offered to the right people at the right time. Automotive CRM Automotive meets the sales, marketing and service requirements of car companies, distributors, dealers etc. Implementing CRM enables them to use available customer information to manage leads, to develop marketing campaigns and increase sales directly or through dealers. 64

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Insurance CRM is essential to enable organizations offer their customers the chance to review policy coverage information, check policy/claim status etc. It also helps in solving customer problems. CRM's New Areas of Expertise •

Enterprise CRM

•

Relationship Marketing

•

Vertical CRM Solutions

•

Business Intelligence

•

e-Business

•

Content Management

•

Customer Analytics

•

Data Mining

•

Email Marketing

•

Employee Relationship Management

•

Enterprise Resource Planning

•

Knowledge Management

•

Partner Relationship Management

•

Sales Automation

•

Enterprise Resource Planning 65

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Large corporate, medium industries and small business units as well can all opt to benefit from this application. CRM's application being diverse in nature has made it one of the fastest growing customer centric strategies of the decade. Its diverse applicability has increased its appeal.

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RESEARCH METHODOLOGY For the study perspective, the Researcher has done a survey to know the CRM tools in Retail Industry. 5.1 Problem Identification: The first step in marketing research project is to define the problem. It includes purpose of the study, the relevant background information, the information needed and how it will be used in decision making. It involves discussion with the decision makers, interviews with industry experts, analysis of secondary data and some qualitative research. There are some of the problems which identifies in the following. – A number of Customers feel that Big Bazaar is not maintaining customer relationship. – A number of people are not satisfied with service of Big Bazaar. – A number of people are not aware about schemes launched by Big Bazaar. – Sales Staff of Big Bazaar is not up to mark to solve complains. 5.2 Research Design The researcher will use Descriptive Research. Study the objective frame, the research design prepared is descriptive research. The descriptive frequency with which something occurs or how the variables vary together. The advantage of descriptive design is that it is not based on judgment or intuition as in the case study but it is based on the actual data collected and it’s therefore more accurate in general. On the fundamental drawback 67

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of descriptive design is that it does not find cause and effect relationship among variables. Initially the information has been collected from related secondary sources, i.e. textual references, journals, magazine’s, publications etc. related to the topic. After exploration of information, descriptive research was initiated by formulating structure questionnaire. Since, this study is mainly a descriptive research, conclusions have been drawn from each question in the questionnaire process its own objective in itself. Questionnaire being designed by keeping each and every variable in mind. 5.3 Data Collection and Sampling:Primary data are used for the core purpose of the project. And this primary data has been gathered by survey method. Data collection Tools Questionnaire, personal interview, observation method 5.4 Sampling Unit: I) who is to be surveyed? In the project youngsters, business people, educated housewives were selected to conduct survey and to check their attitude II) Sampling types: For the purpose of the study simple random sampling was used. III) Sample Size: Survey of 100 respondents is carried. 68

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IV) Sampling Area: The area for doing the survey was outside Big Bazaar shopping mall of Surat. 5.5 Data Analyze and Interpretation Graphs, Tables, Pie-Chart

LIMITATION OF THE PROJECT Each task has its own advantage or disadvantages and barrier in the cause of action, but this does not mean that the task should get stop whenever 69

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certain limitation arise. Each aspect has its own limitation. I try my best to overcome these obstacles. There are some limitations of this project: -Some customers are not willing to give proper response. Some customers have not purchase product from all section of Big-Bazaar, but they give their view for all section. -Due to difference in language, sometimes I have to fill up the questionnaires according to they answer. -Being student, money and time were my major limitation. -Some of the respondents were not co-operative they didn’t provide some of the details. -The population under the study is subject to limitations of particular region and respondents the information regarding Surat district only.

ANALYSIS AND INTERPRETATION 1. Which Retail shop you usually go to purchase?

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Decisions

Big

Dhiraj Iscone

Others

Bazaa

Sons

Mall

Respondent

r 63

7

5

25

s Res. (%)

63%

7%

5%

25%

Interpretation:The most of the peoples are using the difference type of the retail shop, there are 63% of respondents are going purchase in the Retail shop of Big-Bazaar, 7% of respondent choose to Dhiraj Sons, 5% of respondents are choose to Iscone Mall, 25% of respondents are choose to other Retail shop for purchasing the goods and other services.

2. How many Retail shop are you visits? Decisions

Respondenc

Res.

Only one Retail store

e 31

(%) 31%

More than 1 but less 27

27%

than 5

71

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Any Retailer

72

72%

Interpretation There are different time of retail shop visited by the respondents as like, 31% of the respondents are going to only one retail store for purchasing, 27% of respondents are choose to the more than 1 but less than 5 retail store, 42% of the respondents are choose to any retail shop for the visiting.

3. Which at the reason for selecting retail store? Decisions

Respondence Res.

Near he home

21

(%) 21%

Have loyalty card

9

9%

Good

quality

of 70

70%

product

Interpretation;-

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There are different types of the reasons for choosing/selecting the retail stores like, 21% of respondents are like to choose for the near the home, 9% of peoples are choose for have loyalty card, 70% of the respondents are like to choose for the good quality of the product.

4. Are you aware about Big-Bazaar? Decisions

Yes

No

Respondence

97

3

Res.(%)

97%

3%

Interpretation:The brand awareness about the Big-Bazaar as like, 97% of respondents are aware about the Big-Bazaar, and 3% of the respondents are not aware about the Big-Bazaar.

5. Since, when you aware about the Big-Bazaar? 73

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Decisions a. Less than 1 month b. 1 to 5 months c. 5 to 10 months d. More than Year

Respondence

Res.

4 9 22 62

(%) 4% 9% 23% 64%

Interpretation: The period of awareness about the Big-Bazaar as like, 4% of the respondents are aware in the period of less than 1 month, 9% of respondents are aware in the period of between 1to 5 months, 23% of respondents are aware in the period of between 5 to 10 months, 64% of respondents are aware in the period of more than the year. 6. Are you satisfied with the services that are provided to you by BigBazaar? Decisions

Yes

No

Respondence

75

22

Res.(%)

77%

23%

Interpretation

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The satisfaction about the service of the Big-Bazaar, as like, 77% of the respondents are satisfied from the Big-Bazaar, 23% of the respondents are not satisfied about the service of Big-Bazaar.

7. Are you aware about schemes, provided by Big-Bazaar? Decisions

Yes

No

Respondence

59

38

Res.(%)

61%

39%

Interpretation: The awareness about the schemes of the Big-Bazaar as like, 61% of the respondents are aware about the schemes, and 39% of respondents are not aware about the schemes of the Big-Bazaar.

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8. Tick marks on suitable sentence you aware about the schemes? Decisions

Respondence

Res.(%

Before launching in 11

) 19%

store On the day at launch

13

22%

After the launch

35

59%

Interpretation: The awareness about the schemes, there are different ways of the to aware about the schemes, there are different response for it as like, 19% of respondents aware before launching in the store, 22% of respondents aware on the day at launch, and 59% of the respondents aware after the launch of the schemes of the Big-Bazaar.

9. By which medium you come to know about the scheme? Decisions

SMS

Call

Paper

Respondence

5

3

51

Res.(%)

9%

5%

86%

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Interpretation: There are different medium for come to know about the schemes, and different response for the different medium as like, 9% of the respondents are SMS, 5% of respondents are Call, and 86% of the respondents are Paper come to know about the schemes.

10. How is the Behavior at sales staff towards you? Decisions

Very

Good

Averag

Poor

good Respondenc 41

44

e 10

2

e Res. (%)

46%

10%

2%

42%

Interpretation: There are different responses for the staff behaviors of the Big-Bazaar, as like, 42% of respondents’ very Good behavour at the sales staff, 46% of respondents says to good, 10% of respondents says to average, and 2% of respondents says to poor behavour about the sales staff of the Big-Bazaar.

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11. If you have any complain related to product than staff will, Decisions

Respondenc

Res.

Immediate try to solve

e 29

(%) 30%

Delays the process but 36

37%

solve it Ignore the problem

33%

32

Interpretation: The problems about the Big-Bazaar is become to different response for it as like, 30% of respondents of become to says immediate try to solve, 37% of respondents are become to says delays process but solve it, and 33% of respondents are become to says ignore the problems of the consumers. 12. Has Big-Bazaar ever provided a feedback form? Decisions

Yes

No

Respondence

26

71

Res. (%)

27%

73%

78

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Interpretation: The response about the feedback form about the Big Bazaar there are different response for this, as like, 27% of respondents are says to become yes for it, and 73% of the respondents are become to says no for the feedback form about the Big-Bazaar.

13. Tick mark on the appropriate answer in Big-Bazaar, customers are treated as, Decisions

God

Friend

Customers

Respondence

6

26

65

Res. (%)

6%

27%

67%

Interpretation: To study the customer relationship management there are different ways to become understand customer is different ways as like, 6% of respondents are become to says the customers are treated as the God, 27% of the respondents to says to customers are treated as the friend, and 67% of respondents are become to says to the customers are treated as customers.

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14. Have you ever received a gift or any car from Big-Bazaar? Decisions

Yes

No

Respondence

15

82

Res.(%)

15%

85%

Interpretation: There are different response for the received the gift from the Big-Bazaar, as like, 15% of respondents are received the gift from the Big-Bazaar, and 85% of respondents are says to become no for the gift received from the Big-Bazaar.

15. Is there any special event where Big-Bazaar had invited you? Decisions

Yes

No

Respondence

6

91

Res. (%)

6%

94%

80

---

Interpretation: The Big-Bazaar keeping the special event for the consumers but there are different response for this, as like, 6% of respondents are says yes for the keeping of the event and 94% of respondents are says to no keep the any special event for the customers.

FINDINGS The survey was quite successful to obtain information from respondent regarding different aspects of CRM. The findings and conclusions of report are as follows: •

Young generation people are aware about CRM.

•

39% of people are not aware about the schemes provided by Big

bazaar. •

59% of people responded that they come to know about schemes

long time after a launch. •

86% of people come to know about the schemes via News Paper

and 14% of them from local channel. •

58% of people believe that the behavior of staff is below avg. to

poor.

81

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30% of people responded that Big Bazaar is helping immediately

to solve the complains of customers. •

73% respondents said that Big Bazaar has no system to take

feedback of customers. •

85% respondents said that they have never received a gift from Big

Bazaar •

Due to the lack of Relationship customer also hesitant to do big

transaction from Internet.

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CONCLUSION •

From the analysis of questionnaire we can conclude that Big

Bazaar has only one channel to make customer aware about schemes, that is News paper. If the customer failed to read news paper, then they could not aware about scheme •

Big Bazaar has not developed a system that can solve the problem

of customers immediately. •

Big Bazaar has not developed a system that can take the feedback

of customers to consider their views. •

Big Bazaar is not organizing any event to build strong customer

relationship.

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RECOMMENDATION

•

It is recommended that Big Bazaar must develop effective CRM

tool to survive in the market and to attract more and more customer. •

Big Bazaar must have performed demonstration to make customer

aware and create trust among them. •

Big Bazaar must develop a membership card to build a long term

relationship with customers. •

Big Bazaar must have develop a feedback forum ,in which regular

feedback of customer must be there and also views of customers must be considerable •

Delivery charge must be as low possible as can, and delivery must

be as fast as possible to build strong Relationship.. •

Big bazaar must organize events and call customers regularly to

take part which result into along term strong relationship.

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