Effectiveness of Promotional offers at Big Bazaar, Belgaum.

Questionnaire
Dear 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 Daily Once in a month As and when required Once in a week

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 8) What did you opt for? No

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Effectiveness of Promotional offers at Big Bazaar, Belgaum.

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 Price Quality Product range Promotional Offers Ambience 11) Do offers make you feel like visiting Big Bazaar again? Yes No THANK YOU At other Retail shops

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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.

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Retail is one of booming sectors in India. Retail contributes around 10% of Indias 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 Countrys leading business groups present in retail, asset management, consumer finance, insurance, retail media, retail spaces and logistics. The groups flagship Company, Pantaloon Retail (India) Limited .Pantaloon Retail (India) BABASAB PATIL PROJECT REPORT OF MARKETING Page 4

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Limited, is Indias 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 companys 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

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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

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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 Research Instrument Sample plan Sample unit Sampling method Sample Size : : : : : : Survey method Questionnaire Personal Interview Customers of Big Bazaar Convenience sampling 250 customers

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INDUSTRY PROFILE

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Retail Sector in India Retail is booming sector in India. Retail, one of Indias 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 countrys 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.

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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. Indias 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 BABASAB PATIL PROJECT REPORT OF MARKETING Page 10

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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.

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COMPANY PROFILE

Future Group

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Future Group is one of the countrys leading business groups present in retail, asset management, consumer finance, insurance, retail media, retail spaces and logistics. The groups 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 groups 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 Talwalkars, Blue Foods and Liberty Shoes. Future Groups 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

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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

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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 BABASAB PATIL PROJECT REPORT OF MARKETING Page 15

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Major Milestones 1987 1991 1992 1994 Company incorporated as Manz Wear Private Limited. Launch of Pantaloons trouser, Indias first formal trouser brand. Launch of BARE, the Indian jeans brand. Initial public offer (IPO) was made in the month of May. 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. John Miller Formal shirt brand launched. Pantaloons Indias family store launched in Kolkata. Big Bazaar, Is se sasta aur accha kahi nahin - Indias first hypermarket chain launched. Food Bazaar, the supermarket chain is launched. Central Shop, Eat, Celebrate In The Heart Of Our City - Indias first seamless mall is launched in Bangalore. 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 companys 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.

1995 1997 2001 2002 2004 2005

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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 BABASAB PATIL PROJECT REPORT OF MARKETING Page 17

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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 childrens 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".

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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 ones college name and get ones college name products custom-made.

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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

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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 whats 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.

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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.

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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 April02, 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 BABASAB PATIL PROJECT REPORT OF MARKETING Page 23

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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, dcor, 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 - thats 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.

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INTRODUCTION OF TOPIC

Title of Project: Effectiveness of Promotional offers at Big Bazaar, Belgaum Meaning BABASAB PATIL PROJECT REPORT OF MARKETING Page 25

Effectiveness of Promotional offers at Big Bazaar, Belgaum.

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 brands quality is inferior to competition; 2. A brands advertising is not as persuasive as competitive copy; or BABASAB PATIL PROJECT REPORT OF MARKETING Page 26

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3. A new brand is being introduced

Promotions role in the life cycle of a brand At each stage in a brands 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 BABASAB PATIL PROJECT REPORT OF MARKETING Page 27

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period by spending heavily in the advertising media and on the promotional devices that are most effective in reaching the brands 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. BABASAB PATIL PROJECT REPORT OF MARKETING Page 28

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A declining brand may need much heavier promotion support as it becomes old and outdated by new or improved competitive brands. Efforts to improve the brands 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 BABASAB PATIL PROJECT REPORT OF MARKETING Page 29

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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.

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RESEARCH METHODOLOGY

TITLE OF THE PROJECT Effectiveness of Promotional offers at Big Bazaar, Belgaum.

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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 Research Instrument Sample plan Sample unit Sampling method Sample Size DURATION OF PROJECT Duration of the Project 10th Dec 2007 to 27th April 2008. : : : : : : Survey method. Questionnaire Personal Interview Customers of Big Bazaar Convenience sampling 250 customers

LIMATATION OF STUDY Customers did not respond, so I had to find many customers for survey HYPOTHESIS TESTS

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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

GRAPHS AND FINDINGS BABASAB PATIL PROJECT REPORT OF MARKETING Page 33

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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 Frequency 210 40 250 Percent 84.0 16.0 100.0 Valid Percent 84.0 16.0 100.0 Cumulative Percent 84.0 100.0

Valid

Yes No Total

Graph No: 1

Are you aware of promotional offers at Big Bazaar

Yes No

16.00%

84.00%

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

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Effectiveness of Promotional offers at Big Bazaar, Belgaum.

Concept: To study mode of communicating promotional offers to the customers Table No: 2
What was the mode of Communication Frequency 35 136 39 210 40 250 Percent 14.0 54.4 15.6 84.0 16.0 100.0 Valid Percent 16.7 64.8 18.6 100.0 Cumulative Percent 16.7 81.4 100.0

Valid

Missing Total

TV News Paper Hordings Total System

Graph No: 2

What was the m ode of Com unication m

70 60 50 40 30 20 65

Percent

17 10 0 TV N ews P aper

19

H ordings

What was the mode of Communication

Interpretation: News paper was the most effective mode for communication, followed by hoardings and TV advertisements. BABASAB PATIL PROJECT REPORT OF MARKETING Page 35

Effectiveness of Promotional offers at Big Bazaar, Belgaum.

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

Table No: 3
Did you notice/he ar about the Promotional offe rs Today Frequency 232 18 250 Percent 92.8 7.2 100.0 Valid Percent 92.8 7.2 100.0 Cumulative Percent 92.8 100.0

Valid

Yes No Total

Graph No: 3

Did you notice/hear about the Promotional offers Today

Yes No
7.20%

92.80%

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Effectiveness of Promotional offers at Big Bazaar, Belgaum.

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
How frequently you visit Big Bazaar Cumulative Percent 3.6 20.4 85.6 87.2 100.0

Valid

Occasionally Once in a month Once in a week Daily As and when required Total

Frequency 9 42 163 4 32 250

Percent 3.6 16.8 65.2 1.6 12.8 100.0

Valid Percent 3.6 16.8 65.2 1.6 12.8 100.0

Graph No: 4
How frequently you visit Big Bazaar

60

Percent

40
65.20%

20

16.80% 12.80%

3.60%

1.60%

Occasionaly

Once in a month

Once in a week

Daily

As and when required

How frequently you visit Big Bazaar

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Effectiveness of Promotional offers at Big Bazaar, Belgaum.

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 attractiv e and induce me to make a purchase Frequency 65 100 56 29 250 Percent 26.0 40.0 22.4 11.6 100.0 Valid Percent 26.0 40.0 22.4 11.6 100.0 Cumulative Percent 26.0 66.0 88.4 100.0

Valid

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

Graph No: 5

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Effectiveness of Promotional offers at Big Bazaar, Belgaum.

Prom otional offers at Big Bazaar are attractive and induce m to m e ake a
50

40

40

30 26 20 22

Percent

10

12

0 Strongly Agree Agree N either Agree/N D or i D is-agree

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

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 e xpe ct promotional offe rs Frequency 125 80 32 13 250 Percent 50.0 32.0 12.8 5.2 100.0 Valid Percent 50.0 32.0 12.8 5.2 100.0 Cumulative Percent 50.0 82.0 94.8 100.0

Valid

Clothing Groceries Electronic items Furnitures Total

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Effectiveness of Promotional offers at Big Bazaar, Belgaum.

Graph No: 6

Rank the products that you expect promotional offers

50

40

Percent

30
50.00%

20
32.00%

10
12.80% 5.20%

0 Clothing Groceries Electronic items Furnitures

Rank the products that you expect promotional offers

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

Concept: To study whether customers availed benefit of promotional offers Table No: 7
Hav e you availed any offe rs during your recent v isit Frequency 214 36 250 Percent 85.6 14.4 100.0 Valid Percent 85.6 14.4 100.0 Cumulative Percent 85.6 100.0

Valid

Yes No Total

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Effectiveness of Promotional offers at Big Bazaar, Belgaum.

Graph No: 7

Have you availed any offers during your recent visit

Yes No

14.40%

85.60%

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

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Effectiveness of Promotional offers at Big Bazaar, Belgaum.

What did you opt for Frequency Discount offer 91 Free offer 123 Total 214 System 36 250 Percent 36.4 49.2 85.6 14.4 100.0 Valid Percent 42.5 57.5 100.0 Cumulative Percent 42.5 100.0

Valid

Missing Total

Graph No: 8

What did you opt for

Missing

Discount offer

Free offer

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

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Effectiveness of Promotional offers at Big Bazaar, Belgaum.

Do you communicate offers at Big Bazaar to your friends Frequency 218 32 250 Percent 87.2 12.8 100.0 Valid Percent 87.2 12.8 100.0 Cumulative Percent 87.2 100.0

Valid

Yes No Total

Do you communicate offers at Big Bazaar to your friends

Yes No

12.80%

87.20%

Graph No: 9

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

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Effectiveness of Promotional offers at Big Bazaar, Belgaum.

Concept: Where do you find the following better? 1. Price 2. Quality 3. Product range 4. Promotional offers 5. Ambience

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Effectiveness of Promotional offers at Big Bazaar, Belgaum.

Concept: Price Table No: 10

Price Frequency Big Bazaar 215 Other retail stores 35 Total 250 Percent 86.0 14.0 100.0 Valid Percent 86.0 14.0 100.0 Cumulative Percent 86.0 100.0

Valid

Graph No: 10

Price

100

80

Percent

60

40

86.00%

20

14.00%

0 Big Bazaar Other retail stores

Price

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Effectiveness of Promotional offers at Big Bazaar, Belgaum.

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

Concept: Quality Table No: 11

Quality Frequency Big Bazaar 190 Other retail stores 60 Total 250 Percent 76.0 24.0 100.0 Valid Percent 76.0 24.0 100.0 Cumulative Percent 76.0 100.0

Valid

Graph No: 11

Quality

80

60

Percent

40

76.00%

20
24.00%

0 Big Bazaar Other retail stores

Quality

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Effectiveness of Promotional offers at Big Bazaar, Belgaum.

Interpretation: Quality at Big Bazaar is good as compared to other retail stores Concept: Product Range Table No: 12

Range Frequency Big Bazaar 240 Other retail stores 10 Total 250 Percent 96.0 4.0 100.0 Valid Percent 96.0 4.0 100.0 Cumulative Percent 96.0 100.0

Valid

Range

100

80

Percent

60

96.00%

40

20

0 Big Bazaar

4.00%

Other retail stores

Range

Graph No: 12 Interpretation: (96)% of Customers feel product range good at Big Bazaar BABASAB PATIL PROJECT REPORT OF MARKETING Page 47

Effectiveness of Promotional offers at Big Bazaar, Belgaum.

Concept: Promotional offers Table No: 13

Offers Frequency Big Bazaar 218 Other retail stores 32 Total 250 Percent 87.2 12.8 100.0 Valid Percent 87.2 12.8 100.0 Cumulative Percent 87.2 100.0

Valid

Graph No: 13

Offers

100

80

Percent

60

87.20%

40

20

12.80%

0 Big Bazaar Other retail stores

Offers

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Effectiveness of Promotional offers at Big Bazaar, Belgaum.

Interpretation: Promotional offers are good compared to other retail stores

Concept: Ambience Table No: 14

Ambience Frequency Big Bazaar 242 Other retail stores 8 Total 250 Percent 96.8 3.2 100.0 Valid Percent 96.8 3.2 100.0 Cumulative Percent 96.8 100.0

Valid

Ambience

100

80

Percent

60

96.80%

40

20

0 Big Bazaar

3.20%

Other retail stores

Ambience

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Effectiveness of Promotional offers at Big Bazaar, Belgaum.

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 fe el like visiting Big Bazaar Frequency 226 24 250 Percent 90.4 9.6 100.0 Valid Percent 90.4 9.6 100.0 Cumulative Percent 90.4 100.0

Valid

Yes No Total

Graph No: 15

Do offers make you feel like visiting Big Bazaar

Yes No
9.60%

90.40%

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Effectiveness of Promotional offers at Big Bazaar, Belgaum.

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

FINDINGS

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Effectiveness of Promotional offers at Big Bazaar, Belgaum.

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 Page 52

BABASAB PATIL PROJECT REPORT OF MARKETING

Effectiveness of Promotional offers at Big Bazaar, Belgaum.

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

SUGGESTIONS

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Effectiveness of Promotional offers at Big Bazaar, Belgaum.

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. BABASAB PATIL PROJECT REPORT OF MARKETING Page 54

Effectiveness of Promotional offers at Big Bazaar, Belgaum.

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

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Effectiveness of Promotional offers at Big Bazaar, Belgaum.

ANNEXURES

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Effectiveness of Promotional offers at Big Bazaar, Belgaum.

BIBLIOGRAPHY Books Business Statistics G.C. Berry Advertisement and Promotion Belch & Belch Marketing Management Philip Kotler

Websites www.pantaloon.com www.indiainbusiness.nic.in

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Effectiveness of Promotional offers at Big Bazaar, Belgaum.

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 N=250 P = X/N = = 165 250 Sigma P = Favoring N =0.66 P(1-P)/N-1 (1-P)=0.35 N-1=249

0.65x 0.35/249

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Effectiveness of Promotional offers at Big Bazaar, Belgaum.

= = 0.302

0.00091365

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 N=250 P = X/N = Favoring price as a factor N = 215 250 Sigma P = =0.44 (1-P)=0.15 N-1=249

P(1-P)/N-1

0.85x 0.15/249

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Effectiveness of Promotional offers at Big Bazaar, Belgaum.

= =

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

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