A project report on effectiveness of promotional offers at big bazaar

“Effectiveness of Promotional offers at Big Bazaar, Belgaum”.

QuestionnaireDear Respondents,

I B S PATIL student of MBA IV semester ,BEC DOMS BAGALKOT have undertaken a project titled “Effectiveness of Promotional offers” at Big Bazaar, belgaum. Hence I request your kind co-operation by sparing your precious time in answering the following questions and providing information.

(Please mark)

1) Are you aware of promotional offers at Big Bazaar? (If No, please go to question No. 3)

Yes No

2) If yes, what was the mode of communication?

TV News Paper Hoardings

3) Did you notice/ hear about the promotional offers today?

Yes No

4) How frequently you visit Big Bazaar

Occasionally Once in a month Once in a week

Daily As and when required

5) The Promotional offers at Big Bazaar are attractive and induce me to make a purchase?

Strongly Agree Agree Neither Agree/ Nor Dis-agree Dis-agree Strongly Dis-agree

6) For which range of products/brands you expect promotional offers? (Please Rank from scale 1being high to 4 being lowest)

Clothing Groceries Electronic items Furniture

7) Have you availed any offers during your recent visits? (If No, please go to question No. 9)

Yes No

8) What did you opt for?

BABASAB PATIL PROJECT REPORT OF MARKETING Page 1


Discount offer Free offer

9) Do you communicate offers at Big Bazaar to your friends/relatives?

Yes No

10) Where do you find the following better (please mark)

At Big Bazaar At other Retail shopsPriceQualityProduct rangePromotional OffersAmbience

11) Do offers make you feel like visiting Big Bazaar again?

Yes No

THANK YOU



EXECUTIVE SUMMARY

Retailing in India is witnessing a huge revamping. India is rated the fifth most attractive

emerging retail market, estimated to be US$ 200 billions, of which organized retailing

(i.e. modern trade) makes up 3 percent or US$ 6.4 billions.



Retail is one of booming sectors in India. Retail contributes around 10% of India’s GDP

and 8% of employment. Revolution has taken palace in India with introduction of

sprawling shopping centers, multiplex- malls and huge complexes offer shopping,

entertainment and food all under one roof. Retail players have already tapped Tier-I cities

and are entering into Tier-II cities in India. The growth of retail sector in India is due to

following reasons:

o Low share of organized retailing

o Falling real estate prices

o Increase in disposable income and customer aspiration

o Increase in expenditure for luxury items

o Increase in young working population

o High pay packets, nuclear families

Future Group is one of the Country’s leading business groups present in retail, asset

management, consumer finance, insurance, retail media, retail spaces and logistics. The

group’s flagship Company, Pantaloon Retail (India) Limited .Pantaloon Retail (India)



Limited, is India’s leading retailer that operates multiple retail formats in both the value

and lifestyle segment of the Indian consumer market. The Company operates over 7

million square feet of retail space, has over 1000 stores across 51 cities in India and

employs over 24,000 people. The company’s leading formats include Pantaloons, a chain

of fashion outlets, Big Bazaar, a uniquely Indian hypermarket chain, Food Bazaar, a

supermarket chain, Some of its other formats include, Depot, Shoe Factory, Brand

Factory, Blue Sky, Fashion Station, aLL, Top 10, mBazaar and Star and Sitara. The

Company also operates an online portal, futurebazaar.com. Pantaloon Retail was recently

awarded the International Retailer of the Year 2007 by the US-based National Retail

Federation (NRF).

PROMOTIONAL OFFERS



Meaning

Promotion is an important marketing force that provides extra incentives to achieve sales.

Promotion is an important marketing tool as compared to advertisements and sales force.

Promotion is both short term and long term activities carried.

ROLE OF PROMOTION

Promotions are an extremely valuable tool for the marketing of brands.

Like all other tools, promotions can make a valuable contribution to marketing

when they are properly used.

Promotions are offered to the customers to get the sales and to increase their

market share

The short term promotions are towards increasing the sales and the long term

sales are towards increasing the customer base.

WHEN TO USE PROMOTION

A brands quality is inferior to competition

A brands advertising is not as persuasive as competitive

A new brand is being introduced



The Belgaum population is experiencing the new trend of shopping. Big Bazaar is known

for its promotions .This survey was conducted to study the “Effectiveness of

Promotional offers at Big Bazaar, Belgaum”.

The main objectives to carry out these topics at Big Bazaar are as follows:

To test the effectiveness of the communication of the offers to the consumers

To test the awareness level among public with respect to offers of Big Bazaar

To assess the attractiveness of the offers to customers at Big Bazaar

To find out the competitive differences of Big Bazaar with other Retail

competitors.

SAMPLING

Data Source : Primary Data

(From questionnaire and personal

interaction)

Secondary data –Website,

Research approach : Survey method

Research Instrument : Questionnaire

Sample plan : Personal Interview

Sample unit : Customers of Big Bazaar

Sampling method : Convenience sampling

Sample Size : 250 customers



INDUSTRY PROFILE



Retail Sector in India

Retail is booming sector in India. Retail, one of India’s largest industries, has presently

emerged as one of the most dynamic and fast paced industries with several players

entering the market. Retail Accounts for over 10 per cent of the country’s GDP and

around eight per cent of the employment in India.

As the contemporary retail sector in India is reflected in sprawling shopping centers,

multiplex- malls and huge complexes offer shopping, entertainment and food all under

one roof, the concept of shopping has altered in terms of format and consumer buying

behavior, ushering in a revolution in shopping in India. This has also contributed to large

scale investments in the real estate sector with major national and global players

investing in developing the infrastructure and construction of the retailing business. The

trends that are driving the growth of the retail sector in India are

Low share of organized retailing

Falling real estate prices

Increase in disposable income and customer aspiration

Increase in expenditure for luxury items

Another credible factor in the prospects of the retail sector in India is the increase in the

young working population. In India, high pay-packets, nuclear families in urban areas,

along with increasing working-women population and emerging opportunities in the

services sector. These key factors have been the growth drivers of the organized retail

sector in India.


http://www.indianground.com/real_estate_india.aspx

http://www.indianground.com/articles/Miscellaneous-articles/organised-retail-in-india.aspx

http://www.indianground.com/articles/Miscellaneous-articles/organised-retail-in-india.aspx


The retailing configuration in India is fast developing as shopping malls are increasingly

becoming familiar in large cities. When it comes to development of retail space specially

the malls, the Tier II cities are no longer behind in the race.

India is being seen as a potential goldmine for retail investors from over the world and

India has the top destination for retailers for an attractive emerging retail market. India’s

vast middle class and its almost untapped retail industry are key attractions for global

retail giants wanting to enter newer markets. Even though India has well over 5 million

retail outlets, the country sorely lacks anything that can resemble a retailing industry in

the modern sense of the term. This presents international retailing specialists with a great

opportunity. The organized retail sector is expected to grow stronger than GDP growth in

the next five years driven by changing lifestyles, burgeoning income and favorable

demographic outline.

FDI in Retail Sector



Retailing is the largest private sector industry in the world economy with the global

industry size exceeding $6.6 trillion and India is the top destination for retail investors.

And the further upsurge is anticipated in the retail sector as the Government of opened up

51% FDI in single brand retail outlets. And as the government is in a process to initiate a

second phase of reforms, it is cautiously exploring the avenues for multi-brand segment.

The Government is seeking for these options keeping in view the existing social

framework of India and the will ensure that the entry of global retail giants do not

displace the existing employment in the retail business.

Industry experts are sensitive to the point that local markets have an edge over the retail

investors in India as they have unique advantages such as an understanding of local needs

and extended service like home delivery. As the FDI influence on the Indian retail sector

sets in, the total size of the retail trade is expected to grow extensively in the coming

years and the consumer segments patronizing the big malls will create frenzy for

organized retailing predicting a growth of 25-30 per cent per annum over the next decade.

Moreover, Indian retail chains would get integrated with global supply chains since FDI

will bring in technology, quality standards and marketing thereby, leading to new

economic opportunities and creating more employment generation.

Industry trends for retail sector indicate that organized retailing has major impact in

controlling inflation because large organized retailers are able to buy directly from

producers at most competitive prices. World Bank attributes the opening of the retail

sector to FDI to be beneficial for India in terms of price and availability of products as it

would give a boost to food products, textiles and garments, leather products, etc., to

benefit from large-scale procurement by international chains; in turn, creating jobs

opportunities at various levels.


http://www.indianground.com/retail/retail-sector-in-india.aspx

http://www.indianground.com/investments/major_investors_realestate.aspx

http://www.indianground.com/investments/major_investors_realestate.aspx


COMPANY PROFILE

Future Group



Future Group is one of the country’s leading business groups present in retail, asset

management, consumer finance, insurance, retail media, retail spaces and logistics. The

group’s flagship company, Pantaloon Retail (India) Limited operates over 7 million

square feet of retail space, has over 1000 stores across 53 cities in India and employs

over 25,000 people. Some of its leading retail formats include, Pantaloons, Big Bazaar,

Central, Food Bazaar, Home Town, eZone, Depot, Future Money and online retail

format, futurebazaar.com.

Future Group companies includes, Future Capital Holdings, Future Generali India Indus

League Clothing and Galaxy Entertainment that manages Sports Bar, Brew Bar and

Bowling Co.

The group’s joint venture partners include Italian insurance major, Generali, French

retailer ETAM group, US-based stationary products retailer, Staples Inc and UK-based

Lee Cooper and India-based Talwalkar’s, Blue Foods and Liberty Shoes.

Future Group’s vision is to, “deliver Everything, Everywhere, Everytime to Every Indian

Consumer in the most profitable manner.” The group considers ‘Indian-ness’ as a core

value and its corporate credo is - Rewrite rules, Retain values.

CORPORATE STATEMENT



Future Group Manifesto

“Future” – the word which signifies optimism, growth, achievement, strength, beauty,

rewards and perfection. Future encourages 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 learn, unlearn and re-learn, our ability to

evolve.

Future Group will not wait for the Future to unfold itself but create future scenarios in

the consumer space and facilitate consumption because consumption is development.

Thereby, will effect socio-economic development for our customers, employees,

shareholders, associates and partners.

Group Vision



Future Group shall deliver Everything, Everywhere, Every time for Every Indian

Consumer in the most profitable manner.

Group Mission

The group shares the vision and belief that their customers and stakeholders shall be

served only by creating and executing future scenarios in the consumption space leading

to economic development.

The group will be the trendsetters in evolving delivery formats, creating retail realty,

making consumption affordable for all customer segments – for classes and for masses.

The group shall infuse Indian brands with confidence and renewed ambition.

The group shall be efficient, cost-conscious and committed to quality in whatever been

done.

The group shall ensure that positive attitude, sincerity, humility and united determination

shall be the driving force to be successful.

Core Values

← Indianness: Confidence in ourselves.

← Leadership: To be a leader, both in thought and business. ← Respect & Humility: To respect every individual and be humble in our conduct. ← Introspection: Leading to purposeful thinking. ← Openness: To be open and receptive to new ideas, knowledge and information. ← Valuing and Nurturing Relationships: To build long term relationships. ← Simplicity & Positivity: Simplicity and positivity in our thought, business. ← Adaptability: To be flexible and adaptable, to meet challenges.

COMPANY TIMELINE

Major Milestones



1987 Company incorporated as Manz Wear Private Limited. Launch of Pantaloons trouser, India’s first formal trouser brand.

1991 Launch of BARE, the Indian jeans brand.

1992 Initial public offer (IPO) was made in the month of May.

1994 The Pantaloon Shoppe – exclusive menswear store in franchisee format launched across the nation. The company starts the distribution of branded garments through multi-brand retail outlets across the nation.

1995 John Miller – Formal shirt brand launched.

1997 Pantaloons – India’s family store launched in Kolkata.

2001 Big Bazaar, ‘Is se sasta aur accha kahi nahin’ - India’s first hypermarket chain launched.

2002 Food Bazaar, the supermarket chain is launched.

2004 Central – ‘Shop, Eat, Celebrate In The Heart Of Our City’ - India’s first seamless mall is launched in Bangalore.

2005 Fashion Station - the popular fashion chain is launched

aLL – ‘a little larger’ - exclusive stores for plus-size individuals is launched

2006 Future Capital Holdings, the company’s financial arm launches real estate funds Kshitij and Horizon and private equity fund Indivision. Plans forays into insurance and consumer credit.

Multiple retail formats including Collection i, Furniture Bazaar, Shoe Factory, EZone, Depot and futurebazaar.com are launched across the nation.

Group enters into joint venture agreements with ETAM Group and Generali.

BOARD OF DIRECTORS

Mr. Kishore Biyani, Managing Director



Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the

Group Chief Executive Officer of Future Group.

Mr. Gopikishan Biyani, Wholetime Director

Gopikishan Biyani, is a commerce graduate and has more than twenty years of

experience in the textile business.

Mr. Rakesh Biyani, Wholetime Director

Rakesh Biyani, is a commerce graduate and has been actively involved in category

management; retail stores operations, IT and exports. He has been instrumental in the

implementation of the various new retail formats.

Mr. Ved Prakash Arya, Director

Ved Prakash Arya, is an engineer by training and is a graduate of the Indian Institute of

Management, Ahmedabad. Prior to joining Pantaloon Retail, he was the CEO of Globus.

Mr. Shailesh Haribhakti, Independent Director

Shri Shailesh Haribhakti, is a Chartered Accountant, Cost Accountant, and a Certified

Internal Auditor. He is the Deputy Managing Partner of Haribhakti & Co., Chartered

Accountants and past president of Indian merchant Chambers. He is on the Board of

several Public Limited Companies, including Indian Petrochemicals Corporation Ltd.,

Ambuja Cement Eastern Ltd. etc. He is on the Board of Company since June 1, 1999.

Mr. S Doreswamy, Independent Director

S. Doreswamy, is a former Chairman and Managing Director of Central Bank of India

and serves on the board of DSP Merrill Lynch Trustee Co and Ceat Limited among

PANTALOONS FORE RAY



1. Depot

Books, Music & Gifts

Depot is one of the youngest brands from the Pantaloon stable and is a tribute to our

freedom of thought, speech and expression shared in a novel fashion with customers

as books, multimedia, toys, stationary and gifts.

At Depot, book lovers are offered a range of books that meet the needs and preference

of every age group. From fiction to general reference, management and children’s

material, you will find it all at Depot. Music buffs are invited to select from a wide

category of music CDs and cassettes.

2. Futurebazaar.com

Futurebazaar.com offers the widest range of products at ‘lowest prices – everyday!’

Having pioneered the retailing business in India, Futurebazaar.com has now decided

to revolutionize the consumer e-commerce business in India. It intends to provide

customers with a streamlined, efficient and world class personalized shopping

experience, which will be supported with the best technology platform.

Future Bazaar has been named as the Best Indian Website 2007 in the Shopping

category by PC World.

Future Bazaar won the top spot after beating other established players like Rediff,

Indiatimes, Sify, ebay, Indiaplaza, Chennai Bazaar and India Mall. The award was

presented to Future Bazaar for its "decent, no-nonsense approach, while providing a

good shopping experience".



3. Navaras

Navaras, a fine 22 carat pure gold and diamond jewellery brand, is retailed from Big

Bazaar stores.Future Group has revolutionized the Indian jewellery market with the

launch of Navaras, which offers branded, pure and design differentiated jewellery at

competitive prices in a hypermarket set-up in line with the evolving buying behaviour of

consumers. The rationale behind this is that with higher disposable incomes, for

consumers today gold and other jewellery purchases too have become impulsive buying

activities. Hence, Navaras within Big Bazaar. Navaras offers a complete fine jewellery

shopping experience, despite being within the confines of a hyper market.

4. TOP 10

Top 10, the cool offering from Future Group, offers the latest in fashion and style. This

format is based on the concept of the ever popular countdown shows, where the trendiest

styles get ranked from 1 to 10; the highest selling item gets the highest ranking!

Keeping pace with fast changing fashion needs, Top 10 stores empowers the youth to

make a distinctive fashion statement through easily affordable apparel collections and

accessories.

Top 10 stores stock a wide range of Message Tees , Fashion Tees ,Cool Tees (for guys

and gals), casuals, cargoes, sports wear & skirts. A unique offering of this format are

T-shirts with college names printed on them, wherein one can vote for one’s college

name and get one’s college name products custom-made.



5. Tulsi

The medical bazaar

Tulsi the Medicine Bazaar is a pharmacy housed within Big Bazaars and Food Bazaars at

over 35 locations all over India .

Aiming to offer outstanding professional service from a caring and friendly environment.

We are prepared to go the extra mile or provide that little extra guidance and to care for

your needs through our Healthcare enquiry system.

6. Mr. RIGHT

Future Services brings Mr. Right - a reliable resource who is always ready to perform any

task or attend to any requirement. For the very first time in India Be it fixing plumbing to

providing serious financial advice, no job is too big or small.

Mr. Right is envisaged to be a one stop solution for all the service needs and will offer

various innovative services. Mr. Right will operate in the following service categories -

Utility services, Home Improvement, Travel, Event & Wedding Planning, Beauty &

Wellness and Advisory Services. Currently offering services like Home Cleaning, Pest

Control, Travel & Helpmate. Soon to launch Astrology, Shoe laundry, Help@home



7. Pantaloons Fresh fashion

Pantaloons Fresh Fashion stands out as a fashion trendsetter, on the lines of how fashion

is followed internationally. The ‘look’ and ‘what’s in’ today for the season is sacrosanct.

Pantaloons takes its promise of 'fresh fashion' very seriously making available to its

customers the latest in fashion every week!

All Pantaloons stores reflect the new ideology -- Fresh Feeling, Fresh Attitude, Fresh

Fashion. The stores offer fresh collections and are visually stimulating thanks to

appealing interiors and attractive product display!

The first Pantaloons was opened in Gariahat in 1997. Over the years, it has undergone

several transitions. When it was first launched, this store mostly sold external brands.

Gradually, it started retailing a mix of external brands while at the same time introduced

its own private brands. Initially positioned as a family store, it finally veered towards

becoming a fashion store with an emphasis on 'youth' and clear focus on ‘fresh fashion’.

8. aLL

aLL houses a wide range of ready-to-wear fashionable clothes and accessories that are

otherwise not easily available for plus size customers. aLL brings forth a wide collection

of stylish clothing to select from, be it Western wear, Indo-western or Ethnic wear in both

Formal and Casual categories. aLL also offers matching accessories like belts, ties, and

handbags in a perfect size and fit. The stores are aesthetically and sensitively designed to

cater to this niche set of customers who love the open wide spaces, clean cut lines, pastel

colours that make up the inviting store layout and the even more remarkable customer

friendly staff that are present to assist them in every way.



9. Central

Launched in May'04 at Bangalore, Central is a showcase, seamless mall and the first of

its kind in India. The thought behind this pioneering concept was to give customers an

unobstructed and a pure shopping experience and to ensure the best brands in the Indian

market are made available to the discerning Indian customer.

Central offers everything for the urban aspirational shopper to shop, eat and celebrate.

Located in the heart of the city, Central believes its customers should not have to travel

long distances to reach us; instead we must be present where customers frequently visit.

Central houses over 300 brands across categories, such as apparel, footwear and

accessories for women, men, children and infants, apart from a whole range of Music,

Books, Coffee Shops, Food Courts, Super Markets (Food Bazaar), Fine Dining

Restaurants, Pubs and Discotheques. The mall also has a separate section for services

such as Travel, Finance, Investment, Insurance, Concert/Cinema Ticket Booking, Bill

Payments and other miscellaneous services. In addition, Central houses Central Square,

a dedicated space for product launches, impromptu events, daring displays, exciting

shows, and art exhibitions.

10. Fashion Station

Fashion Station is the company's offering from their value retail platform. A thematic

store, Fashion Station is an attempt to offer fashion forward products to the mass market.

Called a first of its kind fashion destination, Fashion Station houses a wide selection of

trendy apparels. The USP of the store is 'Fashion that fits your budget', which translates

to great deals on apparel & accessories for Men, Women and Children.



11. Food Bazaar

Food Bazaar invites you for a shopping experience, unique by its ambience. At Food

Bazaar you will find a hitherto unseen blend of a typical Indian Bazaar and

International supermarket atmosphere.

Flagged off in April’02, Food Bazaar is a chain of large supermarkets with a

difference, where the best of Western and Indian values have been put together to

ensure your satisfaction and comfort while shopping.

The western values of convenience, cleanliness and hygiene are offered through pre

packed commodities and the Indian values of "See-Touch-Feel" are offered through

the “bazaar-like” atmosphere created by displaying staples out in the open, all at very

economical and affordable prices without any compromise on quality.

12. Blue Sky

Blue Sky is a national chain of stores offering a wide selection of branded and private

label sunglasses and watches. Blue Sky has been designed to address an exciting and

growing market for accessories. Customers get a wide and interesting collection of

fashion brands from across the world.

13. Star & Sitara



Star & Sitara, a unique beauty salon for men and women, introduces many new features

and products for the first time in India. At Star & Sitara we aim to democratise salon

services for easy access to all and deliver quality service at very affordable prices. Star

& Sitara evokes a theme of Bollywood and promises to make you a Star (Sitara in

Hindi) The space, décor, lighting is reminiscent of movies and will transport you from

the ordinary world to that of the ‘reel’ world.

Star & Sitara provides all skin and hair related beauty service. The salon is spacious and

the atmosphere relaxed. Men, women and children can easily find a service to cater to

their need. But the focal and niche element of our salon is the affordable and attractive

pricing.

14. Big Bazaar

Big Bazaar is not just another hypermarket. It caters to every need of your family.

Where Big Bazaar scores over other stores is its value for money proposition for the

Indian customers.

At Big Bazaar, you will definitely get the best products at the best prices - that’s what

we guarantee. With the ever increasing array of private labels, it has opened the doors

into the world of fashion and general merchandise including home furnishings,

utensils, crockery, cutlery, sports goods and much more at prices that will surprise

you. And this is just the beginning. Big Bazaar plans to add much more to complete

your shopping expereince.



INTRODUCTION OF TOPIC

Title of Project: “Effectiveness of Promotional offers at Big Bazaar, Belgaum”



Meaning

Promotion is an important marketing force that provides extra incentives for short term

sales. Promotion plays an important role with advertisements and selling efforts.

The role and mechanics of promotion

Promotions are an extremely valuable tool for the marketing of goods. Like all other

tools, promotions can make a valuable contribution to marketing.

Promotion function: The function of promotion is to accelerate action stated by other

marketing activities. Promotion acts as a catalyst to accelerate action, primarily on the

part of the consumer. It supplements, but is not a substitute for, advertising and selling

efforts.

Promotion accelerates action by changing the price – value relationship of the brand

Every product has an established value in the minds of the consumer. This is what the

consumer is normally willing to expend (in money) for what he gets, or thinks be gets,

when he buys the product.

Promotion changes this price-value relationship to the point where the individual is

stimulated to take a desired action. It does this in most cases either by lowering the price

or by increasing the value of the product or both

When to use promotion:

The need for promotion varies because



1. A brand’s quality is inferior to competition;

2. A brand’s advertising is not as persuasive as competitive copy; or

3. A new brand is being introduced

Promotion’s role in the life cycle of a brand

At each stage in a brand’s life cycle a different degree of promotional

emphasis is required.

New Product: A new product can usually profit from substantial promotion support – if

the product, the advertising, distribution and price are right.

The promotion can truly perform its function of accelerating trial and purchase of a brand

whose value has not yet been fully established in the minds of all consumers. Although

good advertising on a new brand will persuade many consumers to try the brand, it is not

likely to persuade every logical prospect to take immediate action. Though the

advertising does not quickly move to action require an extra incentive, such as a free

sample or coupon or some other device that increases the value of the brand, or lowers its

price, to the point where the prospect decides to buy it. If the product is of good quality,

promotion thus helps to establish its value quickly in the minds of more people.

Growing Brand: There are indications, incidentally, that many new brands (but not all)

reach their share-of-market peak within six months to a year after the completion of their



introduction. This leads to the conclusion that a brand of proven product and advertising

copy superiority would be well advised to meet maximum trial during the introductory

period by spending heavily in the advertising media and on the promotional devices that

are most effective in reaching the brand’s best longterm prospective consumers.

Investment at the highest practicable level in effective advertising and promotion during

the introductory stage, therefore – by quickly achieving a high franchise level – can

establish a business that is less vulnerable to competition and that returns higher level of

profit in the following years.

Stable Brand: An established, growing brand generally requires minimal promotion

support, usually of a selective nature. The product and its advertising are still equal to or

better than competition. A high proportion of potential customers have tried the brand

And many have become more or less regular users.

In such a healthy situation, the job that promotion has to do usually is much narrower and

more specialized. It can be used for such specific purposes as improving distribution on

large sizes, attracting new users from fringe groups or areas where usage levels are below

potential, or increasing the consumption among present users. Total promotion

expenditures, however, can be cut back to levels that generate optimum profits – so long

as the brand continues to represent superior value for the price.



Declining Brand: A mature, stable brand may need increased promotional support as

competition begins to match it in product quality and in the persuasiveness of its

advertising copy, or as the brand reaches its natural franchise level. When this happens,

Growth ceases, sales and share level off.

A declining brand may need much heavier promotion support as it becomes old and out-

dated by new or improved competitive brands. Efforts to improve the brand’s quality and

its advertising copy to equal competition may have been unsuccessful. Increasing the

advertising appropriation may not help – and may, in fact, merely reduce profits.



MAJOR TYPES OF CUSTOMER PROMOTIONS

1.Sampling: Distribution of free special or regular size package to consumers

2.Couponing: Distribution of certificates with a stated monetary or merchandize value

which the consumer redeems through a retailer towards the purchase of the

specified item.

3. Demonstrations: An illustration or demonstration of how a product is prepared

and/or used, frequently involving consumer tasting of food products and usually

involving the presence of a home economist or other trained representative.

4. Price packs: Offers to consumers of savings off the regular price of a product,

flagged on the label. Ex: A reduced price packs.

5. Free trials: Inviting customers for free trials of products without cost.



RESEARCH METHODOLOGY



TITLE OF THE PROJECT


OBJECTIVES

To test the effectiveness of the communication of the offers to the consumers

To test the awareness level among public with respect to offers of Big Bazaar

To assess the attractiveness of the offers to customers at Big Bazaar

To find out the competitive differences of Big Bazaar with other Retail

competitors.

RESEARCH METHODOLOGY

Data Source : Primary Data

(From questionnaire and personal

interaction)

Secondary data –Website,

Research approach : Survey method.

Research Instrument : Questionnaire

Sample plan : Personal Interview

Sample unit : Customers of Big Bazaar

Sampling method : Convenience sampling

Sample Size : 250 customers

DURATION OF PROJECT

Duration of the Project 10th Dec 2007 to 27th April 2008.

LIMATATION OF STUDY



Customers did not respond, so I had to find many customers for survey

HYPOTHESIS TESTS

1) Hypothesis testing for attractiveness of customers to offers and inducement for

purchase

HO: More than 65% of the customers are attracted to promotional offers & are induced to

make purchases

H1: More than 65% of the customers are not attracted to promotional offers & are not induced to make purchases

2) Hypothesis testing for price better compared to other retail shops

HO: More than 85% of the customers find price better than other retail stores

H1: More than 85% of the customers do not find price better than other retail stores

The hypothesis test was carried out and the results are put into Annexure


16.00%

84.00%

NoYes

Are you aware of promotional offers at Big Bazaar


GRAPHS AND FINDINGS

Concept: To survey whether the customers visiting at Big Bazaar are aware of the Promotional offers

Table No: 1

Are you aware of promotional offers at Big Bazaar

210 84.0 84.0 84.0

40 16.0 16.0 100.0

250 100.0 100.0

Yes

No

Total

ValidFrequency Percent Valid Percent

CumulativePercent

Graph No: 1



Interpretation: Majority (84%) of the customers surveyed were aware of the Promotional offers at Big Bazaar

Concept: To study mode of communicating promotional offers to the customers

Table No: 2

What was the mode of Communication

35 14.0 16.7 16.7

136 54.4 64.8 81.4

39 15.6 18.6 100.0

210 84.0 100.0

40 16.0

250 100.0

TV

News Paper

Hordings

Total

Valid

SystemMissing

Total

Frequency Percent Valid PercentCumulative

Percent

Graph No: 2


7.20%

92.80%

NoYes

Did you notice/hear about the Promotional offers Today




HordingsNews PaperTV

Pe

rce

nt

70

60

50

40

30

20

10

0

19

65

17

Interpretation: News paper was the most effective mode for communication, followed by hoardings and TV advertisements.

Concept: To check the alertness of customers towards the announcements made at Big Bazaar during shopping

Table No: 3

Graph No: 3


How frequently you visit Big Bazaar

As and when required

DailyOnce in a weekOnce in a monthOccasionaly

Pe

rce

nt

60

40

20

0

12.80%

1.60%

65.20%

16.80%

3.60%



Interpretation: Promotional offers are noticed and heard by the customers during their shopping

Concept: To study frequency the sample customers visited Big Bazaar

Table No: 4



PercentValid Occasionally 9 3.6 3.6 3.6

Once in a month 42 16.8 16.8 20.4

Once in a week 163 65.2 65.2 85.6

Daily 4 1.6 1.6 87.2

As and when required 32 12.8 12.8 100.0

Total 250 100.0 100.0

Graph No: 4



Interpretation: 65% of the customers visit Big Bazaar once in a week, either on Wednesday or week ends, followed by customers visiting once in a month and as and when required.

Concept: Effectiveness of promotional offers inducing the customers to make purchases

Table No: 5

Promotional offers at Big Bazaar are attractive and induce me to make a purchase

65 26.0 26.0 26.0

100 40.0 40.0 66.0

56 22.4 22.4 88.4

29 11.6 11.6 100.0

250 100.0 100.0

Strongly Agree

Agree

Neither Agree/NorDis-agree

Dis-agree

Total


CumulativePercent

Graph No: 5



Promotional offers at Big Bazaar are attractive and induce me to make a

Promotional offers at Big Bazaar are attractive and induce me to make a

Dis-agreeNeither Agree/Nor DiAgreeStrongly Agree

Pe

rce

nt

50

40

30

20

10

0

12

22

40

26

Interpretation: 26% strongly agree, 40% agree, 22% neither agree nor dis-agree and remaining customers dis-agree

Concept: To study customers preferences of the commodities

Table No: 6

Rank the products that you expect promotional offers

125 50.0 50.0 50.0

80 32.0 32.0 82.0

32 12.8 12.8 94.8

13 5.2 5.2 100.0

250 100.0 100.0

Clothing

Groceries

Electronic items

Furnitures

Total


CumulativePercent


Rank the products that you expect promotional offersFurnituresElectronic itemsGroceriesClothing

Pe

rcen

t

50

40

30

20

10

0

5.20%

12.80%

32.00%

50.00%

Rank the products that you expect promotional offers


Graph No: 6

Interpretation: Customers preferred clothing followed by groceries, electronic items and furnitures

Concept: To study whether customers availed benefit of promotional offers

Table No: 7

Have you availed any offers during your recent visit

214 85.6 85.6 85.6

36 14.4 14.4 100.0

250 100.0 100.0

Yes

No

Total


CumulativePercent


14.40%

85.60%

NoYes

Have you availed any offers during your recent visit


Graph No: 7

Interpretation: Majority (85%) of customers availed benefit of promotional offers

Concept: What did you opt for?

The customers may go in for Free offers or discount offers. To study the customers preference of offers this question was asked.

Table No: 8


What did you opt for

Missing

Free offer

Discount offer


What did you opt for

91 36.4 42.5 42.5

123 49.2 57.5 100.0

214 85.6 100.0

36 14.4

250 100.0

Discount offer

Free offer

Total

Valid

SystemMissing

Total


Percent

Graph No: 8

Interpretation: 49% of the customers availed Free offers 36% availed Discount offers.

Concept: Did customers communicate benefit of promotional offers to their friends and relatives

Table No: 9


12.80%

87.20%

NoYes

Do you communicate offers at Big Bazaar to your friends


Do you communicate offers at Big Bazaar to your friends

218 87.2 87.2 87.2

32 12.8 12.8 100.0

250 100.0 100.0

Yes

No

Total


CumulativePercent

Graph No: 9

Interpretation: Majority (87%) of customers did communicate benefits of promotional offers to their friends and relatives.



Concept: Where do you find the following better?

1. Price

2. Quality

3. Product range

4. Promotional offers

5. Ambience


PriceOther retail storesBig Bazaar

Pe

rcen

t

100

80

60

40

20

0

14.00%

86.00%

Price


Concept: PriceTable No: 10

Price

215 86.0 86.0 86.0

35 14.0 14.0 100.0

250 100.0 100.0

Big Bazaar

Other retail stores

Total


CumulativePercent

Graph No: 10


QualityOther retail storesBig Bazaar

Per

cen

t

80

60

40

20

0

24.00%

76.00%

Quality


Interpretation: 86% of customers find price better compared to other retail stores

Concept: Quality

Table No: 11

Quality

190 76.0 76.0 76.0

60 24.0 24.0 100.0

250 100.0 100.0

Big Bazaar

Other retail stores

Total


CumulativePercent

Graph No: 11


RangeOther retail storesBig Bazaar

Per

cen

t

100

80

60

40

20

04.00%

96.00%

Range


Interpretation: Quality at Big Bazaar is good as compared to other retail stores

Concept: Product Range

Table No: 12

Range

240 96.0 96.0 96.0

10 4.0 4.0 100.0

250 100.0 100.0

Big Bazaar

Other retail stores

Total


CumulativePercent

Graph No: 12

Interpretation: (96)% of Customers feel product range good at Big Bazaar


OffersOther retail storesBig Bazaar

Per

cen

t

100

80

60

40

20

0

12.80%

87.20%

Offers


Concept: Promotional offers

Table No: 13

Offers

218 87.2 87.2 87.2

32 12.8 12.8 100.0

250 100.0 100.0

Big Bazaar

Other retail stores

Total


CumulativePercent

Graph No: 13


AmbienceOther retail storesBig Bazaar

Per

cen

t

100

80

60

40

20

03.20%

96.80%

Ambience


Interpretation: Promotional offers are good compared to other retail stores

Concept: AmbienceTable No: 14

Ambience

242 96.8 96.8 96.8

8 3.2 3.2 100.0

250 100.0 100.0

Big Bazaar

Other retail stores

Total


CumulativePercent


9.60%

90.40%

NoYes

Do offers make you feel like visiting Big Bazaar


Graph No: 14

Interpretation: Majority (97%) of the customers find Ambience very good

Concept: To study whether Customers feel like coming to Big Bazaar to avail the benefits of the offers

Table No: 15

Do offers make you feel like visiting Big Bazaar

226 90.4 90.4 90.4

24 9.6 9.6 100.0

250 100.0 100.0

Yes

No

Total


CumulativePercent

Graph No: 15



Interpretation: Majority (90%) of customers are attracted to offers and hence they will shop frequently at Big Bazaar

FINDINGS



Majority (84%) of the customers surveyed were aware of the Promotional offers at Big Bazaar

Newspaper was the most effective mode for communication, followed by hoardings and TV advertisements.

Promotional offers are noticed and heard by the customers during their shopping

65% of the customers visit Big Bazaar once in a week, either on Wednesdays or week ends, followed by customers visiting once in a month and as-and-when required.

26% strongly agree, 40% agree, 22% neither agree nor disagree and remaining customers disagree

Customers preferred clothing followed by groceries, electronic items and furnitures

Majority (85%) of customers availed benefit of promotional offers

49% of the customers availed Free offers 36% availed Discount offers.

Majority (87%) of customers did communicate benefits of promotional offers to their friends and relatives.

86% of customers find price better compared to other retail stores

Customers found Quality at Big Bazaar good as compared to other retail stores



Customers feel product range good at Big Bazaar

Promotional offers are good compared to other retail stores as per the customers

SUGGESTIONS



16% of the surveyed customers were not aware of promotional offers, so the

Company should ensure that maximum customers know about promotional offers

visiting Big Bazaar and there should make aware of offers to general public.

34% of the customers are not attracted to promotional offers because of short

range of electronic items and some doubt the quality of the products on which

promotional offers are declared. The Company should take note of this.

Some customers are disappointed because of short period of promotional offers as

they visit Big Bazaar after the offer period is over. Such customers should be

convinced that similar offers would be declared soon.

The duration of the discount offers must be increased, so that more number of

customers can avail the benefit.

Most of the customers prefer clothing (50%) and groceries (32%) , the Company

has to attract the customers towards and electronic items and furnitures

The promotional offers on Wednesdays can also be extended to Tuesdays and

Sundays so that more number of customers will get benefit of the offers and thus

sales increase.



The employees of Big Bazaar should be discouraged to take the benefit of offers

which are meant for customers

CONCLUSION

Promotional offers play an important role to increase the sales in short terms

Belgaum population is experiencing a new pattern of shopping

The customer buying pattern has changed with the introduction of Big Bazaar in

Belgaum

The foot fall has increased at Big Bazaar

Customers are exposed to new brands and they are becoming brand savvy



ANNEXURES



BIBLIOGRAPHY

Books

Business Statistics – G.C. Berry

Advertisement and Promotion – Belch & Belch

Marketing Management – Philip Kotler

Websites

www.pantaloon.com

www.indiainbusiness.nic.in


http://www.pantaloon.com/


HYPOTHESIS TESTING

Hypothesis testing for attractiveness of customers to offers and inducement for purchase

HO: More than 65% of the customers are attracted to promotional offers & are induced to

make purchases

H1: More than 65% of the customers are not attracted to promotional offers & are not induced to make purchases

Z= P - P

sigma P

P=0.65 (1-P)=0.35N=250 N-1=249

P = X/N

= Favoring N

= 165 =0.66 250

Sigma P = P(1-P)/N-1

= 0.65x 0.35/249

= 0.00091365

= 0.302

Z= 0.66-0.65

0.302

= 0.03

Critical value K(=+1.64) and observed value is 0.03, which is less than critical value. Therefore Accept Ho



Hypothesis testing for price better compared to other retail shops

HO: More than 85% of the customers find price better than other retail stores

H1: More than 85% of the customers do not find price better than other retail stores

Z=P - P

Sigma P

P=0.85 (1-P)=0.15N=250 N-1=249

P = X/N

= Favoring price as a factor N

= 215 =0.44 250

Sigma P = P(1-P)/N-1

= 0.85x 0.15/249

= 0.00051205

= 0.0226

Z= 0.86-0.85

0.0226

= 0.44

Critical value K(+1.64) and observed value is 0.44, which is less than critical value. Therefore Accept Ho


