A STUDY ON

“Loyalty Program with respect to Big Bazaar customers”

Submitted by:

M.V.Phaneendra
 Executive summary

Indian retail sector is witnessing one of the fastest Marketing activities of all time. The
companies are fighting to win the hearts of customers who are “God” said by business
tycoons. There is always a first-mover advantage in an upcoming sector. It has bought about
many changes in the buying habits of people. It has created formats, which provide all items
under one roof at low rates from food to fashion.

The project was carried out an understanding customer loyalty program and customers are
aware of different loyalty cards at Big Bazaar. This research helped me in finding out the
customer's view regarding the products & services, loyalty cards offered and awareness by
promotion at Big Bazaar. The big Bazaar tag line is “ISSE SASTA AUR ACHA KAHIN
NAHI” which means you will not get better and cheaper anywhere else. The research shows
that the customer's loyalty program at Big Bazaar is very good and most of the customers are
aware of loyalty cards provided by Big Bazaar. On the other hand, we also have existing
customers who are aware of these loyalty cards but want increment of points, easy
transactions of money through these cards and continuous updates on new offers & products
of Big Bazaar.

To meet the objectives primary research and secondary research were undertaken. The data
collection approach adopted was survey research. The instrument used for the data collection
was observation and questionnaire. The target respondents were the customers of Big Bazaar,
with a sample size of 50 for the study of customer loyalty programs of the company.
 CONTENTS

S.No. Name of the chapter Page number

1 PMCI Analysis 1-9

2 BCG Matrix 10

3 About my Project 11-12

4 Project area deliverables 13-14

5 Project outcomes 14-26

6 Learnings from this project 27

7 Bibliography 28

8 Annexure 29
 PMCI ANALYSIS

Product:

Big Bazaar is an Indian retail chain of hypermarkets, discount department stores, and grocery
stores. It is one of the oldest and largest hypermarket chains in India, housing about 250+
stores in over 120 cities and towns across the country. Big Bazaar understands the needs of
the customers. It creates a traditional bazaar ambiance. It is one-stop shopping at discounted
prices. It provides the best products at the best prices. It targets the price-conscious majority
segment of customers. Cater to every possible retail need of a customer. Targets Middle-class
and Upper-class customers. It is a large and growing young working population. They have a
different section for an appraisal at “Fashion Big Bazaar” which mainly focuses on the new,
stylish and fashionable clothes of all age group customers. Big Bazaar has a wide range of
products from Food to Fashion.

The categorization of Products:

1. Home lien items:

Like bedsheets, pillow covers, carpets to kitchen utility items like steel utensils and crockery
and other minor utility items required in a house.

2. Electronic items:

Like a refrigerator, T.V, vacuum cleaner, music system, vacuum cleaner, washing machine.
Etc.

3. Mobile Zone:

A wide range of mobile phones and accessories is available at the lowest possible price.

4. Furniture:

All kind of furniture is available that one may require decorating the house.

5. Star Sitara:

In this section, all kinds of cosmetic items are made available.

1
 6. Opticians:

In this section all brands and types of fashion glasses are available.

7. Men Ladies and kids wear:

This section includes fashion and casual wear for men ladies and kids both branded and
unbranded.

8. Footwear:

In this section footwear for men women and kids is made available.

9. Toys:

All kinds of toys for children are available.

10. Stationary:

All kind of office stationery and stationery for school going kids is available.

Market:
Market Structure:

The market structure of the Retail Industry is Perfect Competition because there are larger
numbers of sellers and large numbers of buyers.

Market share:

The market share of Retail Industry is 5%.

Market size:

The market size of the Retail Industry is expected to increase the US $1.1 trillion by 2020.

Market Growth Rate:

The market growth of the Retail Industry had increased from 3.8% to 4.4%.
Swot analysis:

Strengths:

1. Wide presence in India covering almost all major cities and towns.

2. Efficient and cost-conscious committed quality service.

3. High brand equity in evolving markets.

4. Everyday low prices, which attract customers, and have a Huge investment capacity.

5. It offers a family shopping experience, where the entire family can visit together.

6. Available facilities such as online booking and delivery of the goods.

Weakness:

1. Dependent heavily on India and is susceptible to foreign players.

2. Stiff competition from global players means market share growth is limited.

3. Extremely popular means heavily crowded during festive/discount seasons.

Opportunities:

1. Evolving customer preference in recent years.

2. Organized retail is a minute in India.

3. Global expansion and tie-ups with international brands.

Threats:

1. Global players trying to enter the Indian market.

2. A low-priced product could be perceived as a low-quality product.

3. Low priced brands perceived to be of low quality in Indian consumer minds.

Company:

Future Group:

Future Group is India’s largest retailer and one of the leading business houses. Its founder and
group CEO are Kishore Biyani. The company had incorporated as Manz Wear Pvt Ltd. The
future group is an Indian private conglomerate company. The company is known for having a
significant prominence in India retail and fashion sectors, with popular supermarket chains
like Big Bazar and Food Bazar lifestyle stores like Brand Factory, Central, etc.

Future Group Subsidiaries:

1. Big Bazar

2. Central

3. E zone

4. Brand Factory

5. Food Bazar

6. Nilgiris

7. Easy day club

8. Food World

Big Bazar:

Big Bazaar is an Indian retail chain of hypermarkets, discount department stores, and grocery
stores. The retail chain was founded by Kishore Biyani under his parent organization Future
Group, which is known for having significant prominence in Indian retail and fashion sectors.
Big Bazaar was founded in 2001 by Kishore, the founder and chief executive officer (CEO)
of the parent company, the Future Group. There are 256 stores nationwide. The headquarters
of Big Bazaar is in Mumbai and Maharashtra. Big Bazar offers everyday lowest prices to
attract customers.
Vision:

Future Group shall deliver Everything, Everywhere, Every time for Indian Consumer in the
most profitable manner.

Mission:

i. Future 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 developers.

ii. They will be the trendsetters in evolving delivery formats, creating retail realty,
making consumption affordable for all customer segments – for classes and for
masses.

iii. They shall infuse Indian brands with confidence and renewed ambition.

iv. They shall be effective, cost-conscious and committed to quality in whatever they do.

v. They shall ensure that their positive attitude, sincerity, humility and united
determined shall be the driving force to make them successful.

Core Values:

1. Indianness

2. Leadership

3. Respect and Humility

4. Introspection

5. Openness

6. Valuing and Nurturing Relationships

7. Simplicity and Positivity

 8. Adaptability

9. Flow

Departments in Big Bazaar:

1. Footwear

2. Fashion:

i. Men’s wear

ii. Ladieswear

iii. Kidswear

3. Toys and Stationary section

4. Home wear

5. Home fashion

6. Home needs

7. Bags & Luggage’s

8. Electronic zone (e-zone)

9. Processing food and Non-processing food

10. Fruits & Vegetables

11. Staples

12. FMCG products

13. T24
Competitors:

Industry:

Retailing is the transaction between the seller and consumer for personal consumption. It
does not include transactions between the manufacturer, corporate purchase, government
purchase, and other wholesale purchases. A retailer stocks the goods from the manufacturer
and then sells the same to the end-user for a marginal profit. Retailing involves all activities
incidental to selling to ultimate consumers for their personnel family and household use. It
does this by organizing their availability on are relatively large scale and supplying them to a
customer on a relatively small scale. The retailer is any person/organization instrumental in
reaching the goods or merchandise or services to the end-users. The retailer is a must and
cannot be eliminated. India’s retail market is expected to grow tremendously in the next few
years. The Indian retailing industry is becoming intensely competitive, as more and more
players are Vying for the same set of customers. The major retail players are Pantaloon
Retail, Shoppers Stop, Reliance, etc. Most modern retailers typically make a variety of
strategic level decisions including the type of store, the market to be served, the optimal
product assortment, customer service, supporting services, and the store's overall market
positioning. Once the strategic retail plan is in place, retailers devise the retail mix which
includes product, price, place, promotion,
personnel, and presentation. The retail sector in India is merging as one of the largest sectors
in the economy. In 2015 the total market was approximately $600 billion and CAGR was
7.45 since 2000. The retail industry is expected to grow to $1.3 trillion by 2020, thereby
registering a CAGR of 9.7% in 2020. India's retail market is expected to grow tremendously
in the next few years. India shows US$330 billion retail markets that are expected to grow
10% a year, with modern retailing just beginning. India ranks first in2005. In fact, in 2005
and 2006, India is the most compelling opportunity for retailers, because now India is in the
peaking stage.

Retailing support services may also include the provision of credit, delivery services,
advisory services, stylist services and a range of other supporting services.

The Company is part of the Future Group, which is a pioneer in the organized retail &
consumption industry. It stands as the only truly Pan India retail chain. As of March 31, 2018,
the Company is present through large format stores and small stores prominently across most
consumption centers. Its presence across 321 cities, including the metro cities, prominent tier
two cities, fast-growing cities, and new consumption centers, ensures that the Company is
present in all consumption areas across length and breadth of India to serve the maximum
consumers. The Company has attracted the best talents from the industry as well as
successful in retaining its core team, which has rich experience of the last 20 years leading
the Company’s core retail business. According to various research reports on the Retail
industry, it is believed that retail industry in India is on a strong growth trajectory since per
capita GDP in India is close to $2,000, post which the consumption across Food, Fashion &
Home is expected to grow 2-3x in the next decade. Future Retail has an established network
of stores under various formats, spread across a pan India basis, and is poised to get the
maximum benefit of the surge in the consumption drive.
Porter’s Five Forces:

Rivalry in the industry:

1. Tough competition among existing players.

2. The number of players in the market.
3. Increases conflicts between the players.
4. It will be difficult for players to become market leaders.

The threat of substitutes goods:

1. Deal with various products.

2. The switching cost is high.
3. Substitute product offers the same or even superior quality and performance as
offered by other players.
4. Less differentiation of products.
5. A cheaper substitute product/service can available from another player.

The threat of new entrants:

1. Independent retailers decrease.

2. Consumers can easily switch brands due to weak/no brand loyalty.
3. Increases offers and loyalty programs compared to existing players.
 4. Scarcity of important resources. E.g. Employees.
5. Attract customers with more discounts & offers.

Power of buyers:

1. High bargain power.

2. Availability of more choice.
3. Consumers are price sensitive.
4. Customers have the power to get high-quality products at an affordable price.
5. Strong bargaining power makes the industry more competitive.

Power of suppliers:

1. Exploit the relationship.

2. It can increase or decrease competition and profitability in the industry.
3. It varies depending on the target segment.
4. Demand for more money.
 ABOUT MY PROJECT

1. Fixed Deposit(FD):

Starting with my project I explained the Fixed Deposits to customers in Big Bazaar. Where I
must explain the interest rates of FD to customers in Big Bazaar and how it is different from
banks. Banks give FD interest rates around 6% to 7%. While coming to Big Bazaar it gives
around 9.33% to 11.2% interest rate in FD. Customers can deposit for 1 year, 2 years or 3
years. It depends on the interest of customers in Big Bazaar. I observed that most of the
customers are interested to deposit money in Big Bazaar because of high-interest rates. The
time period for Fixed Deposits in Big Bazaar is 3 years. While coming to banks there is no
time period for FD. But in Big Bazaar there is a time limit for FD. Big Bazaar does not allow
to keep money in FD when the time period is expired. I must explain about the interest rates
and time limit for Fixed Deposits to customers in Big Bazaar. The interest rates are more for
loyalty customers and senior citizens in Big Bazaar. I must explain the process to deposit
money in Big Bazaar to customers. I was supposed to take signatures and Aadhar card & Pan
card xerox from customers.

2. Future Pay app:

I must create awareness of the Future Pay app to customers in Big Bazaar. I was supposed to
download and install the Future Pay app for customers in Big Bazaar. I must explain the app
and cashback that comes when customers make payments through this app. I explained the
disadvantages and advantages of the app to customers. I created awareness to approximately
500 customers in Big Bazaar about the Future Pay app. After the installation of the app, I was
supposed to clear doubts of customers because of payment through this app in Big Bazaar.
After installation of the app, a lot of doubts came to customers like how the app works, when
cashback comes to Future Pay wallet, whether messages would come to the app or not. I used
to clear all the doubts of customers in Big Bazaar. When the app does not work customers
used to come to me and ask doubts about the app.
 3. Sales Promotion:

In Big Bazaar my role was to sell casseroles to customers. I was supposed to tell the offer
applicable to casseroles and make the customers buy it. The offer will be applicable when
customers make payments through the Future Pay app. If customers do this, they get
cashback which is of Rs300 in Future Pay wallet. But there is a time limit for cashback in the
Future Pay wallet. The time limit for cashback in the Future Pay wallet was one month.
Customers must use that cash back in a month. Otherwise, customers were not able to use
that cashback after a month. I must explain everything about the offer applicable to casseroles
and make aware to customers how that offer could be available on casseroles.

4. Visual Merchandising(VM):

In visual merchandising, I used to give ideas to the head of VM. I used to give a lot of ideas
for visual merchandising in order to attract customers. I was supposed to bring cardboards
and tent cards print from shops. VM means attracting the customers to pick a product by just
seeing the tent cards in Big Bazaar. I used to take window measurements for Window
Displaying.
 PROJECT WORK AREA DELIVERABLES

Significance of the study-

The study is taken up to gain an insight into retail marketing. It is to study how loyalty
programs attract customers and the effects of loyalty programs on customers. This research is
based on the secondary and primary data collected from employees working in the
organization and through the survey. By observing the conditions and by interviewing
through the questionnaire method the data is collected. Based on the perception levels of the
customers at Big Bazaar have given their opinion regarding the questions asked.

Objectives:

1. To study the various marketing activities at Big Bazaar, Vizag.

2. To create awareness of Future Pay app to customers in Big Bazaar.
3. To study the problems being faced by customers while shopping.
4. To understand customer's interest in Fixed deposits in Big Bazaar.
5. To know the customer's perception of the loyalty cards in Big Bazaar.

Scope of the study:

The scope of study aims at Big Bazaar, Vizag understanding the company’s establishment,

organization structure, departments, techniques, marketing strategies, and advantages it has

over competitors.

Research Methodology

Sample size:

The sample size of the study is 50. The sampling method which is used for this is Simple

Random sampling.
Customers who visit Big Bazaar are youth between the age (18- 28), families between the age

(29- 58) and elders between the age (60 and above).

Sources of Data:

a) Primary data:
The data collected for the first time through observation and survey method. The data is
collected by interviewing directly with customers who visit Big Bazaar.

b) Secondary data:
Secondary data consists of information that already exists. The data is collected by the help off
staff members.

Limitations:
 Time limit is major constraint.
 As per the company rules much information is not disclosed.
 As customers are busy in their shopping it is impossible to spend time in interaction
and discussion with them.
 To convince the people for a proper interviewing process is very difficult.

PROJECT OUTCOMES

The survey was done during the last 20 days of internship, the results of this survey helped
the company to improve the areas which are lacking efficiency and gave birth to a new set of
tasks, change in protocols and processes.
The findings of the survey are as follows:

1. How frequently do you shop in the big bazaar?

a. Once in 2 weeks

b. Once in a month

c. More than once in a month.

d. More than once in 2 weeks.

Shopping Responses Percentage

Once in 2 weeks 20 40%
Once in a month 13 26%
More than once in a month 11 22%
More than once in 2 weeks 6 12%
Total 50 100%

Frequently of Shopping
25
20
Responses

15
10

20
13 11
5
6
0
Once in 2 weeks Once in a month More than once More than once
in 2 weeksin a month
Shopping

Interpretation:
From the above data, it is clear that the percentage of customers who shop once in 2 weeks
and once in a month is more when compared to the percentage of customers who shop more
than once in 2 months and more than once in a month.
 2. Are you aware of loyalty cards in the big bazaar?

a. Yes

b. No

Loyalty Cards Responses Percentage

Yes 37 74%

No 13 26%

Total 50 100%

Aware of Loyalty Cards

40
35
30
Responses

25
20
15
10
5
0
37

13

Yes No
Loyalty Cards

Interpretation:

From the above data, it is clear that 74% of the customers are aware of the loyalty cards and
26% of the customers are not aware of Loyalty cards in Big Bazaar.
 3. If the answer is “YES” for the above question which type of loyalty card do you use?
a. Payback card

b. Future Pay

c. Profit club card (PC)

d. All

Loyalty Card Responses Percentage

Payback Card 23 46%
Future Pay 13 26%
Profit Club Card (PC) 8 16%
All 6 12%
Total 50 100%

Type of Loyalty Card

25
Responses

20

15

23
10

13
5
8
6
0
Payback Card Future Pay Profit Club Card (PC) All
Loyalty Card

Interpretation:

From the above data, 46% of the customers use Payback card, 26% of the customers use the
Future pay app, 16% of the customers use the Profit club card. But there are 12% of the
customers who use all the Loyalty cards in Big Bazaar.
 4. Did you benefit from these loyalty cards?

a. Yes

b. No

Benefit Responses Percentage

Yes 35 70%

No 15 30%

Total 50 100%

Benefit of Loyalty Cards

40

35
Responses

30

25
35
20

15 15

10
Yes No
5
Benfits
0

Interpretation:

From the above data, it is clear that 70% of the customers agreed that they are benefited by
these loyalty cards and 35% of customers disagreed for this in Big Bazaar.
 5. By using these loyalty cards, do you get discounts on products?

a. Yes

b. No

Discounts Responses Percentage

Yes 39 78%

No 11 22%

Total 50 100%

Discounts on any products

45
40
35
30
Responses

25
20
15
10
5 39
0

11

Yes No
Discounts

Interpretation:

From the above data, it is clear that 78% of the customers told they are discounts on products
by using these loyalty cards and 22% of customers told they are no discounts on products by
using these loyalty cards in Big Bazaar.
 6. Do you get message alerts whenever there are discounts or offers and new products
launched to your future pay app?

a. Every time

b. Sometimes

c. Never

d. Don’t know

Messages Responses Percentage

Every time 25 50%
Sometimes 12 24%
Never 8 16%
Don’t know 5 10%
Total 50 100%

Message Alerts
30
Responses

25

20

15
25
10

12
5 8
5
0
Every time Sometimes Never Don’t know
Messages

Interpretation:

From the above data, 50% of the customers get message alerts every time. While 24% of the
customers get message alerts sometimes, and 16% of customers never get message alerts at
all. But there are 10% of customers who don’t know about the message alerts when it comes
from Big Bazaar.
 7. Does Future Pay app add value to your shopping?

a. Yes

b. No

Value Responses Percentage

Yes 35 70%

No 15 30%

Total 50 100%

Future pay add value to shopping

40
35
30
25
Responses

20
15
10
5
35
0

15

Yes No
Value

Interpretation:
From the above data, it is clear that 70% of the customers agreed that the Future pay app adds
value to the shopping. But there are 30% of customers who disagreed for this in Big Bazaar.
 8. Do cash backs come to the Future Pay wallet whenever you buy a product which is of
“Future Pay Price”?

a. Sometimes

b. Every time

c. Never

Cash backs Responses Percentage

Sometimes 27 54%

Every time 18 36%

Never 5 10%

Total 50 100%

Cash backs to the wallet

30

25
Responses

20

15

10 27

5 18

5
0
Sometimes Every time Never
Cash backs

Interpretation:
From the above data, it is clear that 54% of the customers get cash backs sometimes. While
36% of the customers get cash backs every time. But there are 10% of the customers who
never gets cash backs to future pay wallet from Big Bazaar.
 9. Does “Future Pay Price” will be there every time when you visit big bazaar?

a. Agree

b. Disagree

c. Don’t know

Price Responses Percentage

Agree 33 66%

Disagree 10 20%

Don’t know 7 14%

Total 50 100%

Future pay price

35

30
Responses

25

20

33
15

10
10
7
5
Agree Disagree Don’t know
0 Price

Interpretation:
From the above data, it is clear that 66% of the customers agreed that Future pay price will be
there every time whenever they visit Big Bazaar. While 20% of the customers disagreed with
this and 14% of the customers don’t know about Future pay prices in Big Bazaar.
 10.What is your overall rating on loyalty cards?
a. Excellent
b. Good
c. Average
d. Poor

Rating Responses Percentage

Excellent 26 52%
Good 14 28%
Average 6 12%
Poor 4 8%

Total 50 100%

Overall rating on Loyalty cards

30

25
Responses

20

15

26
10
14
5
6
4
0
Excellent Good Average Poor
Rating

Interpretation:
From the above data, it is clear that 52% of the customers gave an Excellent rating for the
Loyalty cards. While 28% of the customers gave a Good rating. But only 16% of the
customers gave Average and Poor ratings for loyalty cards in Big Bazaar.
 Findings

1. Big Bazaar brands are tasty treats, Koryo, Oxford, Buffalo, Heritage, Denim Jeans and
Casuals (DJ & C).

2. Customers who visit Big Bazaar are mostly families between the age (35-58).

3. In the month of May and June usage of Future pay app by the customers of Big
Bazaar had increased from 15 % to 25%.

4. Most of the customers are not aware of loyalty cards and future pay price in Big
Bazaar.

5. Most of the customers are interested in Fixed deposits because of high-interest rates
which are from (9.3% - 11.2%) at Big Bazaar.

6. Most of the customers use Payback card and Future pay as it is free of cost and no
time limit for these cards. While customers who use the Profit club card are less in
number because it is a paid loyalty card and there is a time limit for this.

7. Every Wednesday Big Bazaar sales increase from 70lakhs to 90lakhs approximately
because of low prices on products like vegetables and fruits. So, on that day Big
Bazaar named Wednesday bazaar for customers which means every Wednesday, they
give products like vegetables and fruits at a very low price.

8. In Big Bazaar there is a wide range of products but there is less range of brands in
products. E.g.- while coming to bottles or boxes there are a lot of products but there is
only one brand in that i.e. Tupperware.

9. Most of the customers are attracted to the offer in Big Bazaar is “SHOP FOR RS2500
AND GET 1000’.

10. Most of the products that are sold in Big Bazaar are fruits & vegetables because of the
low price on Wednesday and then food products.
 SUGGESTIONS

1. More advertisements for loyalty programs must be carried out in Big Bazaar, Vizag.

2. Awareness of the Future pay app had to be increased in Big Bazaar.

3. Big Bazaar must extend the validity period for cash backs in Future pay wallet.

4. A wide range of brands must be available in Big Bazaar.

5. Big Bazaar, Vizag must improve signages to enable customer’s identity and locate
merchandise with ease.
 LEARNINGS
1. A salesperson should have product and company knowledge when he sells any
product to the customer. Otherwise, a salesperson could not be able to explain any
doubts when a customer asks him.

2. As a salesperson, I learned which customers will do shopping to buy a product

and which customers will do window shopping by their actions in Big Bazaar.

3. In Big Bazaar they follow First in Fist out method in the stock arrangement.

4. Big bazaar has positioned in customer minds that whenever it is Wednesday

customers go to Big Bazaar and buy products because of low prices on that day. By
positioning this mindset to customers, they get adapted to their store and also buy the
products even it is more price because of the mindset they created to them.

5. In my observation few of them are brand considers most of them are price considers.

6. I learned that without proper knowledge of store loyalty programs we must not
communicate to customers. Otherwise, customers will get confused because of
miscommunication.

7. The products should be placed in an order so that customers could shop easily and
freely. If the products are not arranged properly customers feel bad and will have
a bad experience in shopping at Big Bazaar.
 BIBLIOGRAPHY

 https://www.futuregroup.in/
 https://www.bigbazaar.com/
 https://www.futureretail.in/pdf/Annual_Report_2017_18.pdf
 https://www.futureretail.in/investors/annual-reports.html
 ANNEXURE
1. How frequently do you shop in the big bazaar?

a. Once in 2 weeks b. Once in a month c. More than once in 2 weeks d. More than
once in a month.

2.Are you aware of loyalty cards in the big bazaar?

a. Yes b. No

3.If the answer is “YES” for the above question which type of loyalty card do you use?

a. Payback card b. Future Pay c. Profit club card (PC) d. All

4.Did you benefit from these loyalty cards?

a. Yes b. No

5.By using these loyalty cards, did you get discounts on any products?

a. Yes b. No

6. Do you get message alerts whenever there are discounts or offers and new products
launched to your future pay app?

a. Every time b. Sometimes c. Never d. Don’t know

7. Does Future Pay app add value to your shopping?

a. Yes b. No

8. Do cash backs come to the Future Pay wallet whenever you buy a product which is of
“Future Pay Price”?

a. Never b. Sometimes c. Every time

9.Does “Future Pay Price” will be there every time when you visit big bazaar?

a. Agree b. Disagree c. Don’t know

10. What is your overall rating on loyalty cards?

a. Excellent b. Good c. Average d. Poor