Marketing II

B.B.A.-LLB (Hons.)/ Second Semester

Term End Examination (TEE) Project: Marketing II

Title -

To Study the Loyalty Program of Big Bazaar

Submitted By –
Ashish Singh

Division- E

Roll No.: E059

SAP ID: 81022019298

Submitted To :-
Prof. Bikas Banerjee

School of Law, NMIMS

(Deemed to be University)

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Contents
ABSTRACT ........................................................................................................................................... 3

INTRODUCTION................................................................................................................................. 4

RESEARCH OBJECTIVES ................................................................................................................ 4

RESEARCH METHODOLOGY ........................................................................................................ 5

RESEARCH HYPOTHESIS ............................................................................................................... 6

SIGNIFICANCE OF THE STUDY..................................................................................................... 6

REVIEW OF LITERATURE .............................................................................................................. 6

RESEARCH GAP ............................................................................................................................... 7

DATA ANALYSIS AND INTERPRETATION ................................................................................. 8

Primary Research of Big Bazaar loyalty program......................................................................... 8

Secondary Research of Big Bazaar loyalty program – ................................................................ 15

RESEARCH FINDINGS .................................................................................................................... 16

LIMITATIONS ................................................................................................................................... 17

RECOMMENDATIONS.................................................................................................................... 17

CONCLUSION ................................................................................................................................... 18

BIBLIOGRAPHY ............................................................................................................................... 19

APPENDICES ..................................................................................................................................... 20

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ABSTRACT

The global revolution of the retail business has given rise to a new face of retailing. The
industry's degree of rivalry has been spurred by the systematic transition from disorganised to
organised commerce. Many Indian retail businesses have entered organised retailing, but fierce
competition from international brands makes cultivating desirable business output challenging.
Today, retailers compete for customers. Organized retail stores are truly following the 80-20
marketing approach. Customers' loyalty is the most difficult problem for retail companies, so
organised retail outlets use a variety of customer loyalty programmes to build concrete loyalty.
The current research focuses on Big Bazar's loyalty programmes, which aim to build and
maintain client loyalty. The study assesses the influence of several loyalty programmes in Big
Bazar's outlet on customer loyalty. The study finds Big Bazar's 8 reward programmes and
examined their impact on customer repeat purchases. The research is empirical, with primary
data acquired from big bazaar's customers using google forms. Customers' perceptions of
various loyalty programmes, as well as their preference patterns for these programmes, were
investigated. The findings show that loyalty schemes have a positive relationship with
consumer loyalty, and that certain of Big Bazar's reward schemes deliver on their promises of
impulse buying and customer retention.

Key words - Big Bazaar, loyalty program, satisfaction, customer, loyalty schemes.

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INTRODUCTION

The group's outlook Big Bazar is a famous multi-brand retail shop in India that serves
practically every type of client. Big Bazaar is a hypermarket company with over a hundred
outlets in India. It is an unit of Future Group Venture Ltd, and follows the same business
strategy in the United States as Wal-Mart. Big Bazaar offers a variety of services. Shopping
online: The official website of Big Bazaar, FutureBazaar.com is one of the most famous online
shopping places in India.

The marketing methods of Big Bazar serve as an example to other companies (Sirajuddin&
Kumar, 2017). Retailing is a retailer that focuses on consumers' needs and expectations to get
a competitive advantage in the market (Berman & Evans, 2001). The award programmes of
Big Bazar have changed the competitive environment of the Indian retail business.

In terms of loyalty system the company has always had a "first competitive edge." Big Bazar
controls their marketing expenses to attract new customers (including loyalty systems).
Customers who migrate a considerable quantity of money from one store to another and spend
additional money to hunt for and buy a new one (Ukessay, 2018).

Big Bazaar offers different type of loyalty programs. In this paper we will discuss the each and
every loyalty program in detail, company’s motive behind each program and their impact on
customers. This study focuses on Big Bazaar consumer shopping behaviour and, as a result,
Big Bazaar customer satisfaction levels. This research will evaluate Big Bazaar's present state
and confirm its market position.

RESEARCH OBJECTIVES

 To determine the loyalty program of Big Bazaar.

 To identify the potential schemes offered by the Big Bazaar’s loyalty program.
 To investigate the impact of a loyalty programme on consumer loyalty.

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RESEARCH METHODOLOGY

Research Design

The researcher followed the blue print research design, which outlines the statistical
instruments and techniques that will be used in the study. It assists the researcher in rationally
incorporating the different components of the research process.

Type of Research Design used in the study

Research design defines the procedures for solving the research issue, keeping the
objectives of the study in mind. The researcher used both the Exploratory Research Design
and Descriptive Research Design to study the loyalty program of Big Bazaar.

Sources of data collection

Both primary and secondary data were collected to write this paper.

i) Primary data

Primary research was done through questionnaire, observations, telephonic interview and
google form link to collect the primary data. Author created a google link and shared it among
his relatives and friends to get their views regarding our topic.

ii) Secondary data

Secondary research was done through articles, journals, books, website reports, newspapers,
online articles, books, magazine, seminar and conference papers etc. to collect secondary data.

Period of Data Collection – Author has used all the data, survey seminar conducted
between 2018 to till now.

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RESEARCH HYPOTHESIS

Null Hypothesis(H1ₒ) - There is no significant impact of loyalty program on customer’s

loyalty.

Alternative Hypothesis(H1ᴀ) - There is a significant impact of loyalty program on

customer’s loyalty.

SIGNIFICANCE OF THE STUDY

 Customers may visit a retail outlet for a variety of reasons, but retail managers were
particularly interested in learning what draws customers into the business.
 For this reason, concentrate on uncovering those secret aspects that will benefit the store
manager.

REVIEW OF LITERATURE

Dr. Mamilla Rajasekar (2016), conducted a study titled Customer loyalty towards corporate
retail stores. A case study of a large bazaar retail store in Bangalore. Brand loyalty refers to a
consumer's emotionally charged decision to repeatedly purchase a specific brand. Recent
research have focused on the concept of loyalty in both the products and service sectors. Except
for the store environment and design, all of the characteristics had a positive link with brand
loyalty.

Deval B. Patel (2014), in his work titled A case study on customer relationship management
at Big Bazaar in Surat. States that CRM allows for the establishment of long-term relationships
with clients on an enterprise-wide scale. Big bazaar's goal is to deliver "sab sesasta," or at the
lowest possible price. A large bazaar that provides good value for money to its customers.

Ramya, K. (2013) did a study on Customer preferences and satisfaction with regard to a large
bazaar in Coimbatore, India. The major purpose of this study is to understand why customers

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prefer organised retail shops over unstructured retail shops for purchases, as well as their levels
of satisfaction. The collected data is analysed and interpreted using a suitable statistical tool,
and findings and recommendations are made as a result, which is considered an important
component of the project.

Dr. Jaideo Lanjewar (2013) conducted a study named Study of Customer Perceptions of Big
Bazaar. The main goal is to figure out who this new Indian customer is, how they shop, and
what factors influence their shopping behaviour at Big Bazaar. They observed that their most
loyal clients are young individuals who chose Big Bazaar over other venues to shop for clothes
and food.

Dr. Muzzafar Ahmad Bhat's (2013) article "Customer perception and its consequences in
the modern retail sector: a case study of Big Bazaar". This study aims to provide light on
customers' cognitive thinking, which Big Bazaar has pursued with zeal. Perception is one of
the most essential elements that today's retailers must address. The goal of this research is to
find out how clients feel about a large bazaar.

Dr.MU. Subramanian S. Chandrasekaran and Ms. Loganayagi (2016) in their paper titled
A study on consumer behaviour towards major bazaar, Chennai, Tamilnadu, India. The study's
goal is to determine consumer behaviour toward the product as well as the numerous aspects
that influence consumer satisfaction. They discovered that the enormous bazaar met the
requirements and desires of customers, and that the diversity of products satisfied them.

RESEARCH GAP
Big Bazaar needs to come up with new marketing strategies to keep and gain customers.
Without a detailed understanding of the consumer, market penetration for Big Bazaar services
is difficult. In such a case, this study could help to address the awareness gap between
perceptions of marketing mix and its influence on brand loyalty by placing the consumer at the
core of the company's operations.

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DATA ANALYSIS AND INTERPRETATION

Primary Research of Big Bazaar loyalty program

Author has done the primary survey through google link. He has created google link and send
it among our relatives and friends via whatsapp, e-mail and Instagram. We have come up with
a following observation. We have asked 14 questions in our survey and receive a 32 response.
Now we will discuss each of the survey question through tables and graphs.

1) Age

Interpretation - Referring to the above graph we can conclude that out of 32 respondents
majority of the respondents are in between 15-25 years of age.

2) Gender

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Interpretation - From the above pie-chart we can conclude that out of the 32 respondents
majority of them are female.

3) Education

Interpretation - From the above pie-chart we can conclude that out of the 32 respondents
majority of them are graduate.

4) Occupation

Interpretation – From the above pie-chart, it is inferred that out of the 32respondents
maximum are students, second highest businessmen, then servicemen and the least were
self-employed.

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5) Monthly Household Income

Interpretation – By analysing the above graph, we can conclude that out of 32respondents
maximum no of respondents have MHI between 80k-100k, second highest no of respondents
have MHI between 100k-150k and 200k+.

6) How frequently you buy from Big Bazaar ?

Interpretation – From the above pie chart, it is inferred that majority of the people buy
products from big bazaar on monthly basis.

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7) Are you aware of the Big Bazaar's loyalty program ?

Interpretation – By analysing the above graph, we can conclude that out of 32respondents
half of respondents were aware of the loyalty program of the Big Bazaar.

8) Are you enrolled in any of the loyalty program of Big Bazaar?

Interpretation – From the above pie-chart, it is inferred that out of the 32respondents majority
of the respondents are not enrolled in any of the loyalty program of Big Bazaar.

9) Would you like to be a member of the Big Bazaar's loyalty programs?

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Interpretation - From the above pie-chart we can conclude that out of the 32 respondents
majority of the respondent are willing to become a member of Bog Bazaar loyalty program.

10) What type of communication mode do you prefer?

Interpretation – From the above chart, it is inferred that majority of the respondents prefer
SMS as a mode of communication.

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11) How frequently you want to get notified about the rewards
earned?

Interpretation – Above graph states that majority of the respondents wants to get notified
about their rewards points on monthly basis.

12) In which loyalty program are u enrolled with?

Interpretation – By analysing the above graph, we can conclude that out of 32respondents
highest no of respondents are enrolled in Future pay and Wednesday Bazaar.

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13) How satisfied are you with the loyalty program of Big Bazaar?

Interpretation – From the above graph it is inferred that majority of the people rate 3/5 in
terms of satisfaction of loyalty program.

14) Suggestions

Interpretation - By analysing the above graph, it is inferred that out of the 32 respondents
only 6 responds and they don’t want any changes in loyalty program.

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Secondary Research of Big Bazaar loyalty program –

Wednesday Bazar

The scheme is known as 'HafteKaSabseSasta Din.' Aiming to attract clients on Wednesdays,

when the store typically has fewer footfalls. Introduced to give customers (housewives) the
ability to save more money through unexpected discounts and offers.S

MahaBachat Offer

A well-known strategy for attracting and retaining customers in a store. Typically announced
closer to national festivals or events Big Bazar employs this tactic on a bi-annual basis on
'Independence Day and Republic Day.' Make generous offers, discounts, exchanges, and
schemes.

Payback Card -
Payback is India's largest multi-partner loyalty programme and one of Europe's most
successful. By partnering with PAYBACK, Future Group has pushed the concept of customer
loyalty to the next level. Customers can use PAYBACK to purchase, save, and be rewarded.
This programme allows customers to accumulate millions of rewards across online and
physical partners – all with a single card. Customers can earn points across all Future Group
formats, making "shopping" more rewarding.

Customers are bound to gain points at every stage now that Future Group has joined this
bandwagon — from formats like Big Bazaar, Central, and Brand Factory. These rewards can
then be exchanged for air miles, cinema tickets, airline tickets, and so on.

Future Pay

It is an app-based wallet scheme designed specifically to attract repeat consumers by providing

an easy-to-use purchasing experience amongst all Future Group businesses. The method was
used to estimate the number of registered loyal customers. Over 5 million users were counted
through this scheme.

Profit Club Card -

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Big Bazaar Profit Club Card is the most inventive product in the Indian retail business. It
provides its customers with an unrivalled value offering. Here is a one-of-a-kind membership
scheme in which one can pay Rs 10,000 and shop for Rs 1000 per month for the next 12 months,
for a total of Rs 12000 over the course of a year. At Big Bazaar, we've always strived to
understand our customers' needs, keeping in mind their desire for better deals and getting the
most bang for their buck with every rupee they spend. This single-minded consumer focus
aided us in bringing Big Bazaar Profit Club to life. Its distinctiveness and success were also
recognised when we received the Customer Loyalty Summit 2019 awards for Best Loyalty
Program in Retail Sector-Single/Specialty Format and Best Card Based Loyalty Program.

Easyday Club

Easyday Club, also known as 'Pados Ki Dukaan,' touched every village in the country. Loyal
clients who return frequently to take advantage of a variety of incentives were granted
exclusive membership. Easyday club members can enjoy a flat 10% discount on every bill they
shop on, on top of any existing in-store deal. Every month, members can take advantage of
exclusive incentives designed specifically for them.

T24 Program

It is a one-of-a-kind telecommunications service that pays both shopping and conversing in

future group stores. Tata Teleservices and Future Group collaborated on the project. Customers
can shop until they drop and still get free talktime under the arrangement. Members receive
shopping certificates from future group retailers with every recharge.

RESEARCH FINDINGS

 There is no significant association between cardholder type and customer loyalty,

according to the statistical test.
 According to the study, the majority of the sample's clientele have silver cards rather
than other sorts of cards.
 The majority of card users in the sample, according to the study, are between the ages
of 20 and 25.
 According to the study, the majority of consumers only shop at the grocery store once
a month.

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 Customers' favourite item to purchase is clothing.

LIMITATIONS

Despite all of the best efforts to meet the study's objectives, there are some inherent limitations.
One of the most significant limitation is time. Because this is a descriptive and exploratory
study, it will take quite some time to complete. Lack of previous study and money may act as
a limitation of the study.

RECOMMENDATIONS

There are some recommendations by the author, by following this it may add values to the
company. They are as follows-

To update the product according to the present needs.

To find some innovative way to engage more people.
Instead of focusing on 6 loyalty programs Big Bazaar’s should focus more on some
selected loyalty program.

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CONCLUSION

Today, most retail outlets use loyalty programmes to enhance consumer traffic and establish
shop loyalty, with the goal of increasing customer lifetime value and minimising marketing
cost per customer. Big Bazaar believes in providing rewards programmes that increase client
store loyalty. Despite the fact that silver was chosen by the majority of cardholders, the
investigation revealed that gold card consumers are more loyal. Bog bazaar has been providing
a variety of different schemes and amenities to clients in order to strengthen their loyal base in
this climate of increasing retail density, and they are also delivering a one-of-a-kind massive
Wednesday offer to kickstart the middle-week-dull sales.

The demographic profile of customers, such as age, salary, occupation, relationship status, and
so on, has a significant impact on customer loyalty programmes in India. As a result, no loyalty
programme can achieve a comparable yield in every category. In retail enterprises, customer
segments must be prioritised, and corresponding loyalty programmes must be established. The
'MahaBachat Offer' and 'Wednesday Bazar' are the most popular plans for low-income
customers. Big Bazar surpassed the competition not just by selling high-quality products at
affordable prices, but also by giving compelling reward programmes to virtually every type of
customer. With the changing market, a retail store must change its offerings in order to better
meet the changing needs of its customers. Implementing a loyalty programme is one of the
most likely ways to differentiate yourself from the competition. It has the potential to be an
effective instrument in the battle for customer acquisition and retention.

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BIBLIOGRAPHY

1) Dr. Amit Kumar, The Role of Big Bazar's Loyalty Programs in Creating Loyalty: A
Customer Based Evaluation, IX UNNAYAN: International Bulletin of Management
and Economics (2018).
2) Berman, B. and Evans, J.R. (2001). Retail Management, Prentice Hall, Upper Saddle
River, New Jersey
3) Buttle, F. (2009). Customer Relationship Management. Concepts and Technologies,
Elsevier Ltd. Oxford USA.
4) Dowling Grahame R. & Uncles Mark, (1997), “Do customer loyalty programs really
work?” https://mitsloan.mit.edu/?content_type=research=feature
5) Frow, P., Payne, A. (2009). Customer Relationship Management: A Strategic
Perspective, Journal of Business Market Management, Vol. 3, 2009/1, pp. 7-27
6) Grahame, D.R. & Uncles, M. (1997). Do Customer Loyalty Programs Really Work?
Sloan Management Review, Vol. 38(4), pp. 71-82.
7) R S Ch Murthy Chodisetty & Siddhani Reddy, Role of Customer Brand Loyalty with
Reference to Big Bazaar-An Empirical Research, 8 International Journal of Innovative
Technology and Exploring Engineering (IJITEE) (2019).
8) http://iosrjournals.org/iosr-jbm/papers/Vol16- issue4/Version-6/A016460108.pdf
9) Sirajuddin, M. & Kumar, P. S. (2017). A Study on Innovative Marketing Strategies in
Retailing GiantsBig Bazar &D-Mart, International Journal of Business and
Management Invention, Vol. 6(12), pp. 55-59.
10) UKessay (2018). Marketing Strategy of Big Bazar India, Referred from: Marketing
Strategy of Big Bazaar India (ukessays.com)
11) William, Z. G., McLeod Jr. R., Gilbert, F. W. (2002). Customer Relationship
Management: Integrating Marketing Strategy and Information Technology. ISBN 10:
0471271373, ISBN 13: 9780471271376.

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APPENDICES

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