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Chapter I - Introduction: 1.1 Meaning of Marketing
Chapter I - Introduction: 1.1 Meaning of Marketing
Chapter I - Introduction: 1.1 Meaning of Marketing
Levitt) "Selling concerns itself with the tricks and techniques of getting people to
exchange their cash for your product. It is not concerned with the values that the
exchange is all about. And it does not, as marketing invariably does, view the entire
business process as consisting of a tightly integrated effort to discover, create, arouse,
and satisfy customer needs."
There is even more confusion about what constitutes "marketing." Marketing entails
several functions that include:
I have clients that have their marketing communications planning and implementation
down to a science. A meeting in the Fall determines the focus for the following year's
Marcomm initiatives. Budgets are allocated; tactics agreed upon; responsibilities
delegated; and contracts negotiated. The result is continued momentum in building
brand awareness and credibility, and a rather flawless execution. This process is one
that can be documented and taught like a system. In any manufacturing or industrial
service company, documented processes lend to the overall impression of the
business' stability and value. If a potential buyer can see how they too could operate
the systems within your company, even after you are long gone, you'll be creating a
more marketable asset. If you need to, hire an expert: but start creating and
documenting a marketing communications system that you can teach others to run and
remove yourself from the lead generation game.
5. Repeat revenue streams ensure a profit now and later
This really falls more into the other marketing functions than that of communications,
but a smart marketing strategy not only focuses on a company's core market and value
proposition, it also finds ways to build multiple channels for recurring revenue. Smart
marketers (and business owners) look for ways to diversify their offerings and
especially in areas where repeat sales require little to no effort on the part of the sales
team. With the Internet, this is more possible than ever before; particularly if you sell
a product that is not custom engineered, or a service that can be easily classified
without a lot of customization. Recurring revenue, generated from an effective
marketing strategy, and teamed with a stellar customer service approach is a
combination that is very attractive to a potential new owner.
6. Nothing lasts forever: marketing has to be a long-term investment
Here in Houston, where I live, getting into the "good ole' boy network" was the way
an industrial business succeeded in the last half of the 20'th century. Today's upper
management is not concerned with who you know and what clubs you belong to.
They want to know how you're going to help them meet their objectives and solve
their problems. Relationships developed over time will get you so far; but what about
the increase in career moves and job-hopping? What happens when the person you
developed a relationship with moves to another company and isn't in a position to
specify what you sell? What happens when the person you developed a relationship
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with retires and is replaced with someone much younger? What happens when YOU
are ready to retire? Will there be someone there who can step into your shoes and
carry your company through that transition without losing customers?
The way to prevent a negative outcome in any of these scenarios is a consistent
marketing communications program. If you're keeping your company's name out there
and building brand identity and recognition, you have less of an educational process
to deal with every time a new person is introduced to your business. This also comes
into play with young people just entering the work force.
The senior engineer at your top customer may love your product; the new hot shot
engineer fresh out of college doesn't know anything about it - UNLESS they've
already been exposed to it through Professors, the Internet, trade publications, trade
shows, etc. Consistent and persistent messaging, going to an integrated mix of contact
points with your customers and prospects, is an investment in your company's longterm stability and value.
7. Employees who are "brand ambassadors" sell your company - to customers
AND potential buyers
Today, marketing is not just something you do "outside" of your company. If you truly
want to create a powerful image and value proposition for your business, the first
groups of people you have to convince are your own employees. Internal brand
integration is just as important as your external marketing strategies. Every employee
in your company should understand how their position contributes to the promise your
company makes to its customers and be motivated to carry it out. Understanding their
unique role in your company's brand promise is just the beginning; if you want brand
ambassadors, you need happy employees. An employee that feels appreciated and
fairly compensated (and that doesn't always equate to their salary) is much more
likely to sing the praises of your company. I think it goes without saying, this is good
for business today as well as making an impression on a future investor.
Who wants to buy a company full of overworked, disgruntled employees?
Marketing IS a long-term investment. You will not create a recognizable brand (name,
image, reputation, etc.) without it. You will not develop a stable, growing business
without it. You will not beat the "lead generation" game without it. You will not create
"brand ambassadors" among your employees without it. You will not create a
company that has obvious value to a potential buyer without it. Marketing is essential
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to the health and continuing prosperity of any business - including manufacturing and
industrial businesses. So what are you waiting for?
1.3. Retail Industry in India
The Retail bazaar in India is booming beyond everyones expectation. The Indian
Retail sector has caught the worlds imagination in the last few years. Indias retail
growth was largely driven by increasing disposable incomes, favorable demographics,
changing lifestyles, growth of the middle class segment and a high potential for
penetration into urban and rural markets. The organized retail sector accounts for 5 %
which is expected to grow to 10 % by the end of 2011. A number of large corporate
houses like Aditya Birla, Bharti, Reliance,Pantaloons, Vishal ,Tata Retail, RPG,
Raheja's and Piramals's have diversified to add retail to their sector portfolio. This
study revolves around the opportunities and challenges faced by organized retail
players in India. It was found that organized retailers see competition from the
unorganized sector as their biggest challenge, followed by competition between
organized retailers and the inefficiency of distribution channels, internal logistical
problem and retail shrinkage.
India is one of the largest emerging markets, with a population of over one billion. It
is one of the largest economies in the world in terms of purchasing power. Retailing in
India is at a nascent stage of its evolution, but within a small period of time certain
trends are clearly emerging which are in line with the global experiences. Organized
retailing has become more popular in big cities in India and most of the metropolitan
cities and modern organized retail stores flood other big cities. Many semirural areas
have also witnessed entry of such organized retail outlets. India's retail sector is
estimated to touch US$ 833 billion by 2013 and US$ 1.3 trillion by 2018, with a
compound annual growth rate (CAGR) of 10%, which is quite lucrative. Retailing as
a whole contributes almost 10% of Indias GDP, and employs almost 8% of Indias
employable population. The organized sector accounts for a mere 5 per cent indicating
a huge potential market opportunity that is lying in the waiting for the consumersavvy organized retailer. Purchasing power of Indian urban consumer is growing and
branded merchandise in categories like Apparels, Cosmetics, Shoes, Watches,
Beverages, Food and even Jewellery are slowly becoming lifestyle products that are
beginning of the concept of everything under one roof. As time passes, joint family
changes into nuclear family. There too both members started earning which resulted
into a new way of lifestyle. From then instead of mom-and-pop type of stores
organized retail stores came into existence. Based on the
ICICI Research, the Indian Retail Market evolution can be traced in the following
way:
CHAPTER 2: Analysis
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Company profile
Big Bazaar is a chain of hypermarket in India. As of June 2, 2012 there are 214 stores
across 90 cities and towns in India covering around 16 million sq.ft. Of retail space.
Big Bazaar is designed as an agglomeration of bazaars or Indian markets with clusters
offering a wide range of merchandise including fashion and apparels, food products,
general merchandise, furniture, electronics, books, fast food and leisure and
entertainment sections.
Big Bazaar is part of Future Group, which also owns the Central Hypermarket, Brand
Factory, Pantaloons, eZONE, HomeTown, futurebazaar.com, KB's Fair Price to name
a few and is owned through a wholly owned subsidiary of Pantaloons Retail India
Limited, that is listed on Indian stock exchanges.
History
Big Bazaar was launched in September 2001 with the opening of its first four stores in
Calcutta, Indore, Bangalore and Hyderabad in 22 days. Within a span of ten years,
there are now 161
Big Bazaar stores in 90 cities and towns across India.
Big Bazaar was started by Kishore Biyani, the Group CEO and Managing Director of
Pantaloon Retail
India. Though Big Bazaar was launched purely as a fashion format including apparel,
cosmetics, accessory and general merchandise, over the years Big Bazaar has
included a wide range of products and service offerings under their retail chain. The
current formats includes Big Bazaar, Food Bazaar,
Electronic Bazaar and Furniture Bazaar. The inspiration behind this entire retail
format was from Saravana Stores, a local store in T. Nagar, Chennai
The stores are customized to provide the feel of mandis and melas while offering the
modern retail features like Quality, Choice and Convenience. As the modern Indian
family's favorite retail store, Big Bazaar is popularly known as the "Indian Wal-Mart".
On successful completion of ten years in Indian retail industry, in 2011, Big Bazaar
has come up a new logo with a new tag line: Naye India Ka Bazaar, replacing the
earlier one: 'Isse Sasta Aur Accha Kahin Nahin'.
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Operations
Most Big Bazaar stores are multi-level and are located in stand-alone buildings in city
centers as well as within shopping malls. These stores offer over 200,000 SKUs in a
wide range of categories led primarily by fashion and food products.
Food Bazaar, a supermarket format was incorporated within Big Bazaar in 2002 and
is now present within every Big Bazaar as well as in independent locations. A typical
Big Bazaar is spread across around 50,000 square feet (4,600 m 2) of retail space.
While the larger metropolises have Big Bazaar
Family centers measuring between 75,000 square feet (7,000 m2) and 160,000 square
feet (15,000 m2),
Big Bazaar Express stores in smaller towns measure around 30,000 square feet (2,800
m2).
Big Bazaar has the facility to purchase products online through its official web page,
and offers free shipping on some of their products
Three Big Bazaar stores launched within a span of 22 days in Kolkata, Bangalore
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and Hyderabad.
2002
Big
Food Bazaar becomes part of Big Bazaar with the launch of the first store in
Bazaar enters Tier II cities with the launch of the store in Nagpur
Big
2004
Big Bazaar wins its first award and national recognition. Big Bazaar and Food
Bazaar awarded the countrys most admired retailer award in value retailing and food
retailing segment at the India Retail Forum
A day before Diwali, the store at Lower Parel becomes the first to touch Rs 10
Initiates the implementation of SAP and pilots a RFID project at its central
warehouse in Tarapur
launches a unique shopping program: the Big Bazaar Exchange Offer, inviting
Big Bazaar and ICICI Bank launched ICICI Bank-Big Bazaar Gold credit card
2006
Mohan Jadhav sets a national record at Big Bazaar Sangli with a Rs 1,37,367
shopping bill. The Sangli farmer becomes Big Bazaars largest ever customer.
Big Bazaar launches Shakti, Indias first credit card program tailored for
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housewives
Navaras
2007
The
shopping portal
Big Bazaar initiates the "Power of One" campaign to help raise funds for the Save
Pantaloon Retail wins the International Retailer of the Year at US-based National
Retail Federation convention in New York and Emerging Retailer of the Year award at
the World Retail Congress held in Barcelona.
2008
Big Bazaar becomes the fastest growing hypermarket format in the world with the
Bazaar dons a new look with a fresh new section, Fashion @ Big Bazaar
Big
Bazaar joins the league of Indias Business Super brands. It is voted among the
top ten service brands in the country in the latest Pitch-IMRB international survey
Big Bazaar initiated the Mega Saving "Monthly Bachat Bazaar" campaign, to
provide exceptional deals on groceries and food items during the first week of every
month.
2009
Big
Big Bazaar initiates Maha Annasantarpane program at its stores in South India a
unique initiative to offer meals to visitors and support local social organizations
Big Bazaar captures almost one-third share in food and grocery products sold
Mahendra Singh Dhoni and Asin, youth icons of India, were chosen as the brand
Formed a joint venture with Hidesign to launch Holii, a new brand of handbags,
2010
groups value retail business through Big Bazaar, Food Bazaar and other formats.
Big Bazaar wins CNBC Awaaz Consumer Awards for the third consecutive year.
Adjudged the Most Preferred Multi Brand Food & Beverage Chain, Most Preferred
Multi Brand Retail Outlet and Most Preferred Multi Brand One Stop Shop
Big Bazaar connects over 30,000 small and medium Indian manufacturers and
Big Bazaar opens its fourth store in Kanpur at Jajmau, which is the largest leather
Vidya Balan was chosen as the brand ambassador of Big Bazaar's Price Challenge
exercise
Ranked
2011
Big Bazaar forays into the rural wholesale and distribution business through
Bazaar has come up a new logo with a new tag line: Naye India Ka Bazaar.
200th
Future Group has launched its latest venture, Foodhall a premium food
For the convenience of the online customers, Big Bazaar has started free shipping
2012
Big Bazaar entered into a five year multi-million dollar deal with Cognizant
with Disney to launch "Kidz Cookies", exclusively for kids across India.
Big Bazaar is planning to add further value to its retail services by offering Value
DJ & C
Tasty Treat
Clean Mate
Sensei
Care Mate
Koryo and 44 other brands.
Pricing:
The pricing objective at Big Bazaar is to get Maximum Market Share. Pricing at
Big Bazaar is based on the following techniques:
Value Pricing (EDLP Every Day Low pricing): Big Bazaar promises consumers
the lowest available price without coupon clipping, waiting for discount promotions,
or comparison shopping.
Promotional Pricing: Big Bazaar offers financing at low interest rate. The concept
of psychological discounting (Rs. 99, Rs. 49, etc.) is also used to attract customers.
Big Bazaar also caters on Special Event Pricing (Close to Diwali, Gudi Padva, and
Durga Pooja).
Differentiated Pricing: Differentiated pricing i.e. difference in rate based on peak
and non-peak hours or days of shopping is also a pricing technique used in Indian
retail, which is aggressively used by Big Bazaar.
e.g. Wednesday Bazaar.
Bundling: It refers to selling combo-packs and offering discount to customers. The
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combo-packs add value to customer and lead to increased sales. Big Bazaar lays a lot
of importance on bundling.
e.g. 3 Good Day family packs at Rs 60(Price of 1 pack = Rs 22) 5kg oil + 5kg rice +
5kg sugar for Rs 599.
Place:
The Big Bazaar stores are operational across three formats hypermarkets spread
over 40,000-45,000 sq ft, the Express format over 15,000-20,000 sq ft and the Super
Centers set up over 1 lakh sq ft.
Currently Big Bazaar operates in over 34 cities and towns across India with 116
stores. Apart from the Metros these stores are also doing well in the tier II cities.
These stores are normally located in high traffic areas. Big Bazaar aims at starting
stores in developing areas to take an early advantage before the real estate value
booms. Mr. Biyani is planning to invest around Rs 350 crore over the next one year
expansion of Big Bazaar. In order to gain a competitive advantage Big Bazaar has
also launched a website www.futurebazaar.com, which helps customers to orders
products online which will be delivered to their doorstep. This helps in saving a lot of
time of its customers.
Promotion:
The various promotion schemes used at Big Bazaar include:
Saal ke sabse saste 3 din
Hafte ka sabse sasta din Wednesday bazaar
Exchange Offers Junk swap offer
Future card(3% discount)
Shakti card
Advertisement (print ad, TV ad, radio)
Brand endorsement by M.S Dhoni and Asin
Big Bazaar has come up with 3 catchy lines written on hoardings taking on biggies
like Westside,
Shoppers stop and Lifestyle. They are:
Keep West- aSide. Make a smart choice!
Shoppers! Stop. Make a smart choice!
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People:
Well trained staff at stores to help people with their purchases
Employ close to 10,000 people and employ around 500 more per month.
Well-dressed staff improves the overall appearance of store.
Use scenario planning as a tool for quick decision making multiple counters for
payment, staff at store to keep baggage and security guards at every gate, makes for a
customer-friendly atmosphere.
Process:
Big Bazaar places a lot of importance on the process right from the purchase to the
delivery of goods. When customers enter the stores they can add the products they
which to purchase in their trolley from the racks. There are multiple counters where
bill can be generated for purchases made. Big Bazaar also provides delivery of
products over purchases of Rs. 1000.
Physical Evidence:
Products in Big Bazaar are properly stacked in appropriate racks. There are different
departments in the store, which display similar kind of products. Throughout the store
there are boards/written displays put up which help in identifying the location of a
product. Moreover boards are put up above the products which give information about
the products, its price and offers. Big Bazaar stores are normally U shaped and well
planned & designed.
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Wednesday Bazaar:
Big Bazaar introduced the Wednesday Bazaar concept and promoted it as Hafte Ka
Sabse Sasta Din. It was mainly to draw customers to the stores on Wednesdays,
when least number of customers are observed. According to the chain, the aim of the
concept is "to give homemakers the power to save the most and even the stores in the
city don a fresh look to make customers feel that it is their day".
Maha Bachat:
Maha Bachat was started off in 2006 as a single day campaign with attractive
promotional offers across all Big Bazaar stores. Over the years it has grown into a 6
days biannual campaign. It has attractive offers in all its value formats such as Big
Bazaar, Food Bazaar, Electronic Bazaar and Furniture Bazaar - catering to the entire
needs of a consumer.
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customers. We encourage repeat customer visits through our unique offers and special
sale days. Future Group has taken the whole concept of customer loyalty to the next
level by joining hands with PAYBACK. PAYBACK is Indias largest and one of
Europes most successful multi-partner loyalty programs. With PAYBACK, customers
can shop, save and get rewarded. This program enables consumers to collect millions
of points across online and offline partners with just a single card.
Customers can accumulate points across Future Group formats , thereby making
shopping rewarding.
Our formats Big Bazaar, Food Bazaar, Pantaloons, Central, Home Town, eZone,
Brand Factory and Future Bazaar are a part of the PAYBACK Loyalty program.
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d. PAYBACK points earned by a member across the various partners in the network
get accumulated under the same membership account thus ensuring the member
accumulates points at a faster pace
e. Accumulated points can be redeemed against an extensive reward catalogue with a
variety of rewards to choose from. The points can also be used as a payment option at
many PAYBACK partners.
T24 Program
T24 will provide customers with a dual advantage all 24 hours of the dayShop
More, Talk More and Talk More, Shop More.
Shopping and talking on our mobile phones are among the two favorite activities for
all of us in India.
With T24, we have been able to develop a unique customer value proposition that
combines these interests of the aspirational Indian. Customers will get shopping
benefits for talking and talk-time benefits each time they shop.
We believe that with our partners, Tata Teleservices Limited, we have been able to
develop a differentiated offering in the crowded telecom space and also increase the
loyalty we enjoy among the millions of customers who patronize our stores.
T24 (Talk 24) tariff plans reflect the competitive per-second rates being offered for
pre-paid customers on Tata Teleservices Limiteds GSM network. In addition,
customers will be rewarded with free talk time for every purchase at Future Group
Stores starting at Rs.10 to a maximum of Rs.350. Plans will keep evolving to offer
ever-more attractive options to the customer.
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1. India one: Consuming class, which includes upper middle and lower middle class
(14% of India's population).
2. India two: Serving class, which includes people like drivers, household helps,
office peons, liftmen, washer men, etc. (55% of India's population) and
3. India three: Struggling class (remaining 31% of India's population).
While Big Bazaar is targeted at the population across India one and India two
segments, Aadhaar Wholesale is aimed at reaching the population in India three
segment. With this, Group emerged as a retail destination for consumers across all
classes in the Indian society.
TARGET AUDIENCE
* Big Bazaar targets higher and upper middle class & middle class customers.
* The large and growing young working population is a preferred customer segment.
* Targets specifically workingwomen and homemakers who are the primary decision
makers.
BIG BAZAAR-USP
* Low price as compared to other places.
* Schemes like Buy 1 gets 1 free, 20% discount etc.
* 1 Billion Population.
* Availability of Liquid Cash/Disposable Income among Young Generation.
* Affordable man power.
* Craze, Passion among Mr. Customer (Consumer).
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Print Ads:
Big Bazaar news paper advertisements are present just before launch of any new
scheme. This creates aura about the Big Bazaar brand in the minds of customer.
TV Ads:
Kishore Biyani spends a lot amount of money in brand building exercise. Big Bazaar
commercials are shown on various channels in India. Presently, Fashion @Big Bazaar
commercial is aired.
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Roadside advertisements:
Big Bazaar billboards are displayed on prime location in various cities as a brand
building exercise. They display the catchphrases and now days.
Radio Ads:
This technique is used at cities like Sangli (tier 1 / tier 2 cities).Now a days it is
replaced by advertisements on FM channels. This informs customers about the all
new happenings at Big Bazaar.
Fashion shows:
FASHION @ BIG BAZAAR - Desh Badla, Bhesh Badlo is the latest invention of
the Indian iconic brand. In an effort to take the Fashion to the masses, Big Bazaar, the
flagship hypermarket brand of retail chain of Future Group,organized a three-day
Fashion Show on the streets of Bandra, Mumbai.Brand Endorsement by celebrity: Big
Bazaar is always associated with celebrities for advertising and marketing of its
Brand-name. Brand Ambassador and Indian cricket ODI Captain Mahendra Singh
Dhoni star the current campaign. Earlier Himesh Reshammiya and Sanath Jaisuriya
were associated with BigBazaar.
CUSTOMER SATISFACTION
Satisfaction is an overall psychological state that reflects the evaluation of a
relationship between the customer/consumer and a company-environment-productservice. Satisfaction involves one of the following three psychological elements:
cognitive (thinking/evaluation), affective (emotional/feeling), and behavioral.
"Satisfaction" itself can refer to a number of different facts of the relationship with a
customer. For example, it can refer to any or all of the following:
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measurement won't be exact and will require sampling and statistical analysis.
Customer satisfaction measurement must be undertaken with an understanding
of the gap between customer expectations and attribute performance
perceptions.
There should be some connection between customer satisfaction measurement
and bottom-line results.
CHAPTER 4 Conclusion
4.1. Disadvantages
1. Store layout: The store layout and the assortment of goods is not the best at Big
Bazaar, as the quantity of goods sold is more the arrangement and assortment of
goods in the store is the greatest. Hence at times customers find it hard to find what
they require, this leads to dissatisfaction of customers.
2. Lower quality of goods: As Big bazaar aims more toward the middle income group,
the quality of goods is not of the highest quality, and this is sometimes a disadvantage
as some would prefer better quality to the price, making customers to search for
different places.
3. Does not appeal to the elite: As mentioned above, the main customers are middle
income and a few high income groups, The elite do not like to shop at Big Bazaar as
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the quality of goods is lower and they would prefer a higher price and get a better
brand, this decreases sales from the elite class
4. Not acclaimed for very good service: Big Bazaar is not known for high class
service. The staff recruited is not very well trained and the billing queues take a long
time to move, this irritates customers which makes them visit the store more seldom
5. Lower quality of goods: As the store is trying to concentrate on the middle income
group the type of products used is not of the most superior quality and most of the
times nor branded, this may dissatisfy certain customers
6. Consumer satisfaction: Long queues and lower quality leads to dissatisfaction of
customers. Due to factors mentioned above Big Bazaar shoppers are not always
satisfied, this is not a positive for the store.
the problematic characters for leading & large size retails stores.
The retail stores should provide various kinds of loyalty rights in order to
provide more customers.
Retail Stores should focus more on Store Ambience, Store Space & Selling
Areas.
All the Retails Formats should have an effective Loyalty Program.
More focus on Direct Marketing should be given in order to attract more &
more customers.
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Better after sales service & customer service should be provided in order to
customers.
The Retail store should replenish the goods on time (before the stock ends).
A proper proportion of Private & National Brands should be kept in Retail
stores.
BIBLIOGRAPGHY
www.slideshare.net
www.managementparadise.com
www.roehampton.ac.uk
www.AllAnalytics.com
www.futuregroup.in
http://en.wikipedia.org
www.cci.in/pdf/surveys_reports/indias_retail_sector.pdf
articles.economictimes.indiatimes.com
www.rai.net.in/
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