ABHAY KUMARABHAY KUMAR

A study on evaluation of Customer Relationship Management of Retail Industry- Supermarket- with Reference to “Big bazaar

PRESENTATIONON

Management thesis

OBJECTIVES OF THE STUDY

Broad Objective: The main objective of the study is to make a planned and detailed analysis of the CRM practices at supermarkets in Hyderabad, in general and on “Big bazaar” in particular. The above broad objective can be studied as the following specific objectives:

• To understand the economic worth of a customer if he/she becomes loyal to a particular store.

• To Examine CRM strategies adopted in retail sector in India with special reference to Big Bazaar.

• To Perform a cost-benefit analysis of CRM implementation

• To suggest a system for imparting an intensive training program to the employees involved in CRM process.

C – Company U – UtilityS – Satisfaction T – TechnologyO – Options M – Monetary aspectsE – EvaluationR – Response (By Buying/Not Buying )

The abbreviation of “Customer”.

Customer relationship management (CRM) consists of the processes a company uses to track and organize its contacts with its current and prospective customers . A business strategy is designed to optimize profitability, revenue and customer satisfaction.

INTRODUCTIONINTRODUCTION

6 R’S TO CUSTOMER SERVICE6 R’S TO CUSTOMER SERVICE

1. Realize what matter most to customer.

2. Relieve customers anxiety and emotional baggage { Establish emotional connectivity}

3. Reach and touch customers hearts through proactive actions and initiatives.

4. Recommend solutions, steps and time meaningfully by proper and interesting

presentation techniques.

5. Recover

Remove

6. Restore customers’ confidence and loyalty.

Undesirable bad image

RETAIL FORMAT FOUND IN INDIARETAIL FORMAT FOUND IN INDIA Mom-and-pop storesMom-and-pop stores Department storesDepartment stores MallsMalls Specialty StoresSpecialty Stores Discount storesDiscount stores Hypermarkets/ SupermarketsHypermarkets/ Supermarkets Convenience storesConvenience stores E-tailersE-tailers

• Retailing in its initial period was witnessed at the weekly haat or gathering in a Retailing in its initial period was witnessed at the weekly haat or gathering in a market place where vendors put on display their produce (goods). Then the market market place where vendors put on display their produce (goods). Then the market saw the emergence of the local baniya & his neighborhood ‘kirana shop’ saw the emergence of the local baniya & his neighborhood ‘kirana shop’

• It is expected that by 2016 modern retail industry in India will be worth It is expected that by 2016 modern retail industry in India will be worth US$ 175- 200 billion US$ 175- 200 billion

• India retail industry is one of the fastest growing industries with revenue expected 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. 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 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 growth in consumerism in urban areas, rising incomes, and a steep rise in rural consumption consumption

• It has further been predicted that the retailing industry in India will amount to 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$ 10.5 billion. US$ 21.5 billion by 2010 from the current size of US$ 10.5 billion.

•In the Indian retailing industry, food is the most dominating sector and is In the Indian retailing industry, food is the most dominating sector and is growing at a rate of 9% annually growing at a rate of 9% annually

COMPANY PROFILE

Pantaloon Retail (India) Limited is India’s leading retailer with gross sales ofRs. 2,019 crores for the financial year ending June 2006. The company operates across multiple segments including –Food, Books & Music, Fashion, Telecom & IT, Home & Electronics, General Merchandise, Leisure & Entertainment, Wellness, Health & Beauty and E-tailing and that helps the company cater to every Indian customer.Some of the leading formats include, Pantaloons (department store), Central (seamless malls), Blue Sky (fashion accessories) and all (fashion apparel for plus-size individuals), Big Bazaar (hypermarket), Food Bazaar (supermarket), Fashion Station (popular fashion), Collection i (home furnishings), E-Zone (consumer electronics), Depot (books and music) and Shoe Factory (footwear).

Company Name: Pantaloon Retail (India) Limited Key People: - Kishore Biyani, MD & Group CEOListed on: Bombay Stock Exchange Stock Code: BOM: 523574 Fiscal Year Ending: June Major Industry: Retailing and Dept. Store Chains Employees: 35,000 (June, 2008) 2008 Sales: 36,686,000,000

Partner companies

Pantaloon Industries Ltd. Home Solutions Retail (India) Ltd.Future Capital HoldingsConverge M Retail (India) Ltd. Indus League Clothing Ltd. Galaxy Entertainment Corporate Ltd.

Joint Ventures Companies

Planet Retail Holdings Ltd. Foot mart RetailGJ Future FashionsCapitaLand Retail India ETAM Future Fashions India Pvt. Ltd

Major MilestonesMajor 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 2006 Future Capital Holdings, the company’s financial arm launches real estate funds Kshitij and Horizon and private equity fund In division. 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

Lines of Business

The company is present across several lines of business which have various formats (stores) operational under it. These include:Food - Food Bazaar, Chamosa, Spoon, Brew Bar, Sports Bar & Sports Bar Express, Cafe Bollywood, Fashion - Pantaloons, Central, aLL, Brand Factory, Blue Sky, Top 10, Fashion Station, Big Bazaar, Lee Cooper (JV), General Merchandise - Big Bazaar, Shoe Factory, Navras, Electronics Bazaar, Furniture Bazaar, KB'S FAIR PRICE Electronics - eZone, Home Improvement - Home Town Furniture - Collection i, Furniture Bazaar, Home Bazaar E-tailing (Online Shopping) - www.futurebazaar.com Books & Music - Depot Leisure & Entertainment - Bowling Co., F123 Wellness - Star & Sitara, Tulsi Telecom & IT - Gen M, M Bazaar, M-Port, ConvergeM

RESEARCH DESIGNRESEARCH DESIGN

Determined the Information Sources: The researcher gathered data through secondary sources.

Primary data is collected through two questionnaires. One administered to the 100 customers of Big bazaar supermarket consisting of 24 questions and another administered to the marketing manager of Big bazaar stores consisting of 12 questions.

Secondary data is collected from Books, Newspapers, Internet (web site) constitute secondary source.

DATA COLLECTION: The researcher collected information through the official websites, magazines and journals.

DEVELOPED THE RESEARCH FRAME: This included deciding upon various aspects for the project on which the entire research is

based. The research frame included. NATURE OF STUDY The project on which the research worked is descriptive and inferential in nature.

DATA SOURCE:

In this research i took the help of both primary as well as

secondary sources. Secondary sources I have taken from various

journals ,internet ,past research etc. INSTRUMENT USED

I would use Questionnaire for my research. The Questionnaire

was prepared with taking care various point relating to topic. SAMPLE SIZE

Sample size for the research is fixed. It counts to 100 DATA ANALYSIS & GRAPHICAL DATA INTERPRETATIOIN

All the data collected from primary and secondary sources would be analyzed

through following methods:-

Factor analysis

Discriminate Analysis

Correlation Data representation would be in following ways:-

Pie chart

Bar chart

Graphs

Table

LIMITATIONS OF THE STUDY:

Small sample and inability to generalize the findings.

Sample is collected only from Hyderabad respondents only & from one store only.

Findings cannot be applied to other supermarkets as the perceptions are collected only

from “Big bazaar” supermarket.

Sampling errors might have occurred

The responses of the customers may not be genuine.

There might be a difficulty in getting responses from the customers as they might be

hurry.

EMPIRICAL ANALYSIS

1. Age group

 

Age Group

No. of

Respondents &

percentages

15-24 60

25-34 24

35-44 12

45 and above 04

Total 100

2. Gender

 

Gender

No. of

Respondents &

percentages

Male 32

Female 68

Total 100

3. Qualification

 

Qualification

No. of

Respondents &

Percentages

Ssc 10

Intermediate 13

Graduate 26

Post Graduate

38

Professional 13

Total 100

Qualification

Qualification0%

Ssc10% Intermediate

13%

Graduate26%

Post Graduate38%

Professional13% 0%

4. Awareness

 

Sources

No. of

Respondents &

percentages

Yes 100

No --

Total 100

0

20

40

60

80

100

YES NO

Extent Awareness about supermarkets. (Big bazaar)

No. of Respondents

5. Users and Various Retail outlets

 

Supermarkets

No. of

Respondents

Big bazaar 35

Subhiksha 10

Reliance Fresh 15

Food World 03

Trinethra 11

Spencers 13

All the above 08

Any other 05

Total 100

Customers Preference

Big bazaar35%

Subhiksha 10%

Reliance Fresh15%

Food World 3%

Spencers13%

All the above8%

Any other5%

Trinethra 11%

Big bazaar

Subhiksha

Reliance Fresh

Food World

Trinethra

Spencers

All the above

Any other

6. Sources of information about supermarkets

 

Sources

No. of Respondents

Pamphlets 11

News papers 21

Television 27

Internet 12

All the above 29

Total 100

Sources of information about supermarkets

Pamphlets11%

News papers21%

Television27%

Internet12%

All the above29% Pamphlets

News papers

Television

Internet

All the above

7. Frequency of visit to Big bazaar supermarket

 

Duration

No. of

Respondents

Once a week 29

Once in a fortnight

11

Once a month 40

Visited just once

20

Total 100

Frequency of visit

Once a week29%

Once in a fortnight 11%Once a month

40%

Visited just once20% Once a week

Once in a fortnight

Once a month

Visited just once

8. Items Purchased and Not Purchased

Particulars Purchased Not Purchased

Food & Grocery 90  Clothing , 46  Furniture & Fixtures

22  

Pharmacy    Durables 12  Jewelers    Electrically and Electronics

40  

Others (please specify)

   

Items Purchased and Not Purchased

90

46

2212

40

0102030405060708090

100

Food

&G

roce

ry

Furn

iture

&Fi

xtur

es

Dur

able

s

Ele

ctric

ally

an

dE

lect

roni

cs

Purchased

Not Purchased

9. Criteria for choosing specific day for shopping

Days No. of Respondents

Week ends 56

Week days 44

Total 100

. Criteria for choosing specific day for shopping

Week ends56%

Week days44%

10. Preferences

Preferences No. of

Respondents

Availability of requirements

Under one roof.

25

Certainty of getting goods 14

Availability of quality goods 20

Home delivery 13

All the above 28

Total 100

Preference

0%

Availability of requirements

25%

Availability of quality goods

20%

Home delivery13%

All the above28%

Certainty of getting goods

14%

11. Quality Products

Quality No. of

Respondents

Yes 96

No 04

Total 100

Quaqlity Product

0%

Yes96%

No4%

12. Satisfaction on related to general perception about ambience

Level No. of Respondents

Highly satisfaction

26

Satisfaction 61

Un satisfaction

13

Total 100

16. Satisfaction on related to general perception about ambience

Highly satisfaction26%

Satisfaction61%

Un satisfaction13%

13. Problems

 

Problems faced

No. of

Respondents &

percentages

Yes 88

No 12

Total 100

Problem Faced

Yes88%

No12%

FINDINGS

I find out the strategies used by the company. As well as customer satisfaction level. I met

many customers of Pantaloon Company and ask the some questions and find out the customer

perception as well as satisfaction level.

In my serve I am find out the more than 50% customers satisfied to the pantaloon services. In

customers perception companies marketing strategy is very good and helpful to the company

and the customers.

The company’s goods & services, quality product, price, after sale services, assortment of the

product, etc. all part is suitable for the customers that’s why customers are buying the goods.

Location of the store is convenient of the customers. They are thinking for the customers it

means what are the needs of the customers, what they want, etc. As per customers wants they

are providing goods and services to the customers.

CONCLUSION 

I conclude that the Pantaloon Company is the big company. And its marketing

strategy is very effective. They know very well how to attract the customers.

As per they are using the strategy many customers give preference to the

Pantaloon Company. And they also have a good brand name their promotion

strategy is good they know how to retain a customer and how to make a loyal

customer and they believe to make a loyal customer because they know one

loyal customer can make many customer.