Promotional offers at big bazaar

A STUDY ON PROMOTIONAL OFFERS AT BIG

BAZAAR (OMR)

PROJECT REPORT

Submitted to

VISVESVARAYA TECHNOLOGICAL UNIVERSITY, BELGAUM

In partial fulfillment of the requirement for the award of Master of

Business Administration

Submitted by

KIRAN R

DEPARTMENT OF MASTER OF BUSINESS ADMINISTRATION

(2013-2015)REG. NO. 1NH13MBA41

NEW HORIZON COLLEGE OF ENGINEERING, BAN

Promotional offers at big bazaar

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TABLE OF CONTENTS

CHAPTER TITLE PAGE

NO

1

INTRODUCTION 2

TITLE OF STUDY 2

NEED FOR THE STUDY 2

OBJECTIVES OF THE STUDY 2

SCOPE OF THE STUDY 3

RESEARCH METHODOLOGY 3

METHODOLOGY ADOPTED 4

LITERATURE REVIEW 5

2

INDUSTRY PROFILE 10

COMPANY PROFILE 13

VISION AND MISSION 16

QUALITY POLICY 14

PRODUCT PROFILE 16

PROMOTIONAL FACILITY 15

PRODUCTION STRUCTURE FACILITY 17

COMPETITORS INFORMATION 18

SWOT ANALYSIS 20

FUTURE GROWTH AND PROSPECTS 21

3 THEORETICAL BACKGROUND OF THE

STUDY

24

4 ANALYSIS AND INTERPRETATION OF

DATA

29

5

FINDINGS 44

SUGGESTIONS 44

CONCLUSION 45


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LIST OF TABLES

SI.NO

NAME OF TABLE TABLE NO.

PAGE NO.

1 Showing that how frequently they visit Big Bazaar

1 36

2 Showing which day they prefer to go 2 38

3 Showing Which day they prefer particularly 3 40

4 Showing the promotional offers at big bazaar

4 42

5 Showing the mode of communication 5 44

6 Showing which media is influence able 6 46

7 Showing the notification of promotional offers on a Particular day

7 48

8 Showing the table of inducing of purchasing 8 50

9 Showing the range of products with expectation of promotional offers

9 52

10 Showing the table of recent visits 10 54

11 Showing the table of number of people choosing on offers

11 56

12 Showing the table of communication or word of mouth spread

12 58

13 Showing the table of betterment 13 60

14 Showing the table of number of visits by customers

14 62


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LIST OF GRAPHS

GRAPH No. Particulars Page

No.

Graph-4.1 Graph showing how frequently customers visit big bazaar 37

Graph -4.2 Graph showing which day they prefer to go 38

Graph -4.3 Graph Showing Which day they prefer particularly 40

Graph -4.4 Graph Showing the promotional offers at big bazaar 42

Graph -4.5 Graph Showing the mode of communication 45

Graph -4.6 Graph Showing which media is influence able 47

Graph -4.7 Graph Showing the notification of promotional offers on a Particular day 49

Graph -4.8 Graph showing the table of inducing of purchasing

51

Graph -4.9 Graph Showing the range of products with expectation of promotional offers 53

Graph -4.10 Graph Showing the table of recent visits 55

Graph -4.11 Graph Showing the table of number of people choosing on offers 57

Graph -4.12 Graph Showing the table of communication or word of mouth spread 59

Graph -4.13 Graph Showing the table of betterment

61

Graph -4.14 Graph Showing the table of number of visits by customers

63


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ACKNOWLEDGEMENT

The writing of this dissertation has been one of the most significant academic

challenges, I have ever had to face. Without the support, patience and guidance of the

following people, this study would not have been completed. It is to them I owe my

deepest gratitude.

First I thank the management of NHCE COLLEGE, Visvesvaraya Technological

University, Belgaum for the continuous support.

I am greatly indebted to Mr. DAYANAND (DEPARTMENT MANAGER), BIG

BAZAAR (OMR)who guided me despite his hectic job commitment. His wisdom,

knowledge, and commitment inspired and motivated me to accomplish this study.

Without his initial consideration for me, this project would have been a failure.

Secondly I would like to express my deep sense of gratitude towards my guide

ASSISTANT PROFESSOR LINCY JOYKUTTY (Dept. of Management Studies).

At the same time I would like to thank all those kind respondents who gave their time

for me and shared valuable opinion about the product.

Thirdly I thank my parents for their continues encouragement and valuable support

which helped me to accomplish this project.

Finally I would like to thank god for his grace and wisdom, which kept me going, and

help me to complete this project successfully.

Executive Summary

Promotion is an important marketing tool as compared to advertisement sales force.

Promotion is both short term and long term activities carried. These retailers depend

on promotion money from the manufacturer could unilaterally offering trade

allowances without losing retailer support. The company sales force and its brand

managers are often at odds over trade promotion.

The Bangalore population is experiencing the new trend of shopping. Big Bazaar is

knownfor its promotion. This survey was conducted to study the “Effectiveness of

Promotional offers at OMR Big Bazaar”

Promotions are an extremely valuable tool for the marketing for the marketing of

goods .like all other tools promotion can make a valuable contribution to marketing.

Promotion work specially well when consumers are need of a jolt to take buying

action.


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Big Bazaar believe in advertising its brands and offers. we often encounters big

Bazaar’s advertisement in the newspapers

The future group has created a category for the growing media industry called future

media, which is to be medium through which advertisers can communicate with

shoppers in the store. On the effectiveness of this method of reaching the customer,

Partho Das Gupta, Chief Executive Officer, Future Media, says “You are

communicating to the consumer when and where: it matters-at the time of making a

purchase decision.”

The punch line of Big Bazaar says” MAKING INDIA BEAUTIFUAL”, and

Wednesday is the cheapest day.

The research is restricted to Study the area of consumer awareness about the offers

provided by OMR Big Bazaar , frequency of visiting the store as well as the media,

which influence them the most.

The population for this study includes the customers from Big Bazaar. The sample

size was chosen from store walk-ins and a sample size to be considered is 100 for

Study purposes.


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CHAPTER 1

INTRODUCTION


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1.1 INTRODUCTION ABOUT INTERNSHIP

Internship (project work) is an integral part of the academic curriculum of VTU

MBA. It is an initiative to bridge the gap between knowledge and its application

through a series of interventions that will enable us to gain insights and exposure

to the industry.

The 12 week Internship (project work) has been positioned during 4th semester

of the MBA program as it serves the twin purposes of providing critical business

insights to students as well providing industry with graduates of a high caliber

who are ready to get ahead in the world from day one.

OBJECTIVES OF INTERNSHIP

The objectives of conducting Internship (project work) during 4th semester of

MBA program are:

To provide an opportunity for students to apply theoretical concepts in real life

situations at the work place.

To sensitize students to the nuances of corporate culture and familiarize them

with the corporate code of behavior.

To enable students to manage resources, work under deadlines, identify and

carry out specific goal oriented tasks.

To enable students discover their professional strengths and weaknesses and

align them with the changing business environment.

To sharpen domain knowledge and provide cross functional skills


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1.2 TOPIC CHOOSEN FOR THE STUDY

“A study on effectiveness of promotional offer at OMR Big Bazaar

Bangalore”

The study is intended to know the helpfulness of promotional offer, which is

provided by OMR Big Bazaar to increase the footpath of the customer into the

store and to know which offer, has an impact on sales and which offer has not

impact on sales

1.3 NEED FOR THE STUDY

It helps to increase the overall sales.

It helps to increase the footprints of the customer into the store.

It also helps to know which offer is most effective and which is not

effective.

1.4 OBJECTIVES OF THE STUDY

1. To assess the effectiveness of the message of the offers to the consumers

2. To assess the responsiveness level among public with respect to offers of Big

Bazaar

3. To assess the charisma of the offers to customers by Big Bazaar

4. To assess the efficiency of the different Medias used by Big Bazaar for its

Promotion


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1.5 SCOPE OF THE STUDY

The research is restricted to study the area of consumer awareness about the offers

provided by OMR Big Bazaar, regularity of visiting the store as well as the media,

which manipulate them the most.

The scope of research also helps in understanding the summary of the consumers.

Effectiveness of Promotional offers is studied in terms of awareness and influence by

exert by the various promotional offer tools bound for towards the customers.


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Research Design:

Exploratory research:

Exploratory research is the research conducted for a problem that has not been clearly

defined. Exploratory research helps to determine the best research design data

collection design and selection of the objects.

Exploratory research relies on secondary research such as viewing available literature

or data or qualitative approaches such as informal discussions with consumers ,

employees , management or competitors and more formal approaches in-depth

interviews , focus groups , case studies etc.

Research methodology The research method that is used here is Probability sampling types and Simple

random sampling method.

Sample Technique and Sample Size:

The sample technique used here isSimple random sampling and the size is

100.

Sampling Frame: The survey was taken in Big Bazaar Outlet, old madras road.


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Data Collection

Data collection method is a technique which can be used by a researcher for drawing

the

Inference for the study of research. Structured questionnaire was constructed and

distributed to the individual customers. Data was collected by two methods:

Primary data

Primary data is gathered through direct interview and questionnaire. A questionnaire

consists of a set of questions presented to respondents to their answers. While

preparing the questionnaire the researcher has to carefully choose the questions and

this forms and series them in proper order.

Secondary Data

The secondary data are those which have ready been collected by someone else and

which have already been passed through statistical processes. The secondary data has

been collected from company records, journals, Websites.


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1.7 REVIEW OF LITERATURE

This review includes literature from the variety of sources, including scholarly journal

articles, books and internet websites. Little has been written concerning the specific

participation and effects of marketing practices upon the field of customers to modern

marketing techniques.

2.1 REVIEW OF LITERATURE

Promotional offer

Does consumption respond to promotional offer? Many studies have focused on the

effects of promotional offer on brand switching, purchase quantity, and stockpiling

and have recognized that promotional offer makes consumers switch brands and

purchase earlier or more. The consumers ‘utilization decision has long been ignored,

and it remains unclear how promotional offer affects consumption (blattberg et al.

1995). Conventional choice models cannot be used to address this issue because many

of these models assume constant consumption rates over time (usually defined as the

total purchases over the entire sample periods divided by the number of time periods).

While this assumption can be suitable for some product categories such as detergent

and diapers, it might not hold for many other product categories, such as packaged

tuna, candy, orange juice, or yogurt. For these categories, promotional offer can

actually arouse consumption in addition to causing brand switching and stockpiling.

Thus, for product categories with aunstable consumption rate, it is critical to

recognize the responsiveness of consumption to promotional offer in order to measure

the effectiveness of promotional offer on sales more precisely.


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Davis, inman, and mcalister (1992) also examine the difference between pre and

post promotional offer brand evaluations at the individual level but find no

evidence that price promotional offers affect evaluations for frequently purchased

branded packaged goods. Across three promoting brands in each of four different

product categories, evaluators of promoted brands in the post promotional offeral

period are not found to be lower than in the pre promotional offeral period, the

studies by Scott and colleagues indicate that promotional offers have a damaging

effect on post trial evaluations, whereas davis, inman, and mcalister's study

suggests that the impact of promotional offers on brand evaluations in these

packaged goods categories is, on average, nonexistent.

This suggests that the effect of promotional offers on brand evaluations is likely to

be moderate by the extent of consumer know-how in a product category,

particularly pre trial, when direct experience with the brand is unavailable as a

source of information.

Because promotional offers are temporary prices, their institution and withdrawal

contain information that consumers may use to make judgments related to the

product. A price promotional offer (or its absence) may serve a simple informative

function (for similar conceptualizations, see inman, peter, and raghubir 1997; raghubir

1998).

In the words of philipkotler, “marketing is a human activity directed at satisfying

needs and wants through exchange promotion is according to pickton and

broderick (2001) usually replaced by the term promotional offer that also

describes one of the key areas of marketing. in addition “promotion is a

conversation between a brand and its audience and it is the combined term for all

the communication functions used in marketing a product a service”


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Promotion when implemented effectively often results in an increase in short term

sales figure. This explains the liking of corporations to put in a large percentage of

their funds in carrying out various promotional offer activities. However variations

occur in effects of promotional offer based on the attractiveness of the disturbed brand

(alvarez, 2005).Promotional offers are useful tools which act as demand

inoculationthat do not sustain the risk associated with the new products. (blattberg,

robertc., &neslin, 1990).

Promotional offer

The international chamber of commerce (icc) defines promotional offer as:

"marketing devices and techniques which are used to make goods and services

more attractive by providing some additional benefit, whether in cash or in kind,

or the expectation of such a benefit ". (boddewyn&leardi, 1989, p. 365) smith

(1998) has described that there are three main categories of sp:

Consumer promotions (premiums, gifts, competitions and prizes, e.g. On the back

of breakfast cereal boxes)


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Promotional offers run by big bazaar

Big bazaar believes in advertising its brand and offers. We often come across big

bazaar’s advertisement in the newspapers. Big bazaar wazirpur is no different the

various promotional schemes are determined by the main office and all the outlets run

these schemes, they understand the significance of communication. The future group

has created a category for the growing media industry called future media, which is to

be aintermediate through which advertisers can communicate with shoppers in the

store. On the success of this method of reaching the customer, partho das gupta, chief

executive officer, future media, says “you are communicating to the consumer when

and where it matters — at the time of making a purchase decision.” The company is

considering all types of ways to reach the customer, including digital signage, audio,

video and blue-tooth technology etc. At present the company uses mudra for its value

retail segment and percept for its lifestyle retail segment. The various promotional

schemes undertaken by big bazaar are as follows:

The punch line of big bazaar says “is se sastaauracchakahinahi”. This line gives

the feeling that big bazaar gives products which is cheapest in the market or in

other words the worth for money which a customer will be getting here will be

more than anywhere else.

Wednesday is the cheapest day. This is done to reroute some of the crowd coming

on weekends to a relatively free day. Big bazaar advertises wednesdays as the

cheapest day in all the leading dailies across the capital.

Big bazaar has announced aexclusive exchange offer `bring anything old and take

anything new’. Under the exchange offer, old garments, utensils, furniture, plastic

ware, newspapers or just about anything will be weighed and valued and

customers will be given exchange coupons..

hindustanunilever, future group to co-brand bakery products, items to be sold at

opt for big bazaar stores


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1.8 LIMITATIONS OF THE STUDY

Respondents did not react, so I had to find many customers for study.

The respondents were in hasten for their purchases and were not properly

cooperating for interview.

Some of the respondents were not happy with the offers and used to oppose with

interview process.

The research was limited to OMR Big Bazaar and could not expand to other

branches.

refusal and inability of responded to provide information.


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CHAPTER 2

INDUSTRY PROFILE &

COMPANY PROFILE


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2.1 INDUSTRY PROFILE

The word "trade" originates from a French-Italian word. trader is someone who cuts off

or sheds a small piece from something. Retailing is the set of actions that markets

products or services to final consumers for their own personal or household use. It does

this by organizing their ease of use on a relatively large scale and supplying them to

customers on a relatively small scale. Retailer is a Person or Agent or Agency or

Company or Organization who is involved in reaching the Goods or Merchandise or

Services to the End User or Ultimate Consumer.

Indian Retail Industry:

Indian retail industry is the largest industry in India, contributing to over 13% of the

country's GDP. Organized retail industry in India is expected to rise 35% yearly being

driven by strong income growth, changing lifestyles, and positive demographic patterns.

It is expected that by 2011-12 modern retail industry in India will be worth US$ 590

billion. It has further been predicted that the retailing industry in India will amount to

US$ 833 billion by 2013 and US$ 1.3 trillion by 2018. Shopping in India has witnessed

auprising with the change in the consumer buying deeds and the whole format of

shopping also altering. Industry of retail in India, which has become modern, can be seen

from the fact that there are huge shopping centers, malls and extensive complexes, which

offer food, shopping, and amusement all under the same roof.

Indian retail industry is expanding itself most vigorously; as a result, a great demand for

real estate is being created.

In the Indian retailing industry, food is the most dominating sector and is growing at a

rate of 9% annually. The branded food industry is trying to enter the India retail industry

and convert Indian consumers to branded food. Since at present 60% of the Indian

grocery basket consists of non- branded items. Indian retail industry is moving ahead

well and for this to continue retailers as well as the Indian government will have to make

a shared effort. Indian retailing industry has seen exceptional growth in the last five

years.


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Indian retail industry is going through a changeover phase. Most of the retailing in our

country is still in the unorganized sector. The spread out of the retails in US and India

shows a wide gap between the two countries. Though retailing in India is undergoing an

exponential growth, the road in front is full of challenges.

Key Challenges:

Location:

"Right Place, Right choice" Location is the most significant ingredient for any

business that relies on customers, and is typically the prime consideration in a

customer’s store choice. When formulating decision about where to locate, the retailer

must refer to the strategic plan:

Investigate substitute-trading areas.

Determine the type of attractive store location

assess alternative specific store sites

Merchandise:

The primary goal of the most retailers is to sell the right kind of merchandise.

Merchandising consists of actions involved in acquiring particular goods and services

and making them available at a place, time and quantity that enable the retailer to

reach its goals.


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Pricing:

Pricing is a decisive strategic variable due to its direct relationship with a firm's goal

and its dealings with other retailing elements. The importance of pricing decisions is

budding because today's customers are looking for good value when they buy

merchandise and services.

Target Audience:

"Consumer the major mover" "Consumer Pull", however, seems to be the most

important heavy factor behind the nourishment of the industry. The purchasing power

of the customers has increased to a great amount, which is influencing the retail

industry to a great extent, a variety of other factors also seem to fuel the retailing

boom.

2.2 Scale of Operations:

Scale of operations includes all the supply chain activities, which are carried out in

the business. It is one of the challenges that the Indian retailers are facing. The cost of

business operations is very high in India.

Indian retail types

Malls

Branded stores

Specialty stores

Departmental stores

Super markets


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Malls:

The largest form of prearranged retailing today Located mainly in metro cities, in

nearness to urban outskirts. Ranges from 60,000 sqft to 7,00,000 sq. ft. and above.

They lend an ideal shopping experience with an incorporation of product, service and

leisure, all under a common roof. Examples include Shoppers Stop, mega Mart,

Pantaloon, Wall mart etc.

Specialty Stores:

Chains such as the Bangalore based Kids Kemp, the Mumbai books retailer

Crossword, RPG's Music World and the Times Group's music chain Planet M, are

focusing on specific market segments and have well-known themselves strongly in

their sectors.

Discount Stores:

As the name suggests, money off stores or factory outlets, offer discounts on the MRP

through selling in volume reaching economies of scale or excess stock left over at the

season.

Department Stores:

Large stores ranging from 20000-50000 sq. ft., catering to a variety of consumer

needs. Departmental stores further confidential into localized departments such as

clothing, toys, home, groceries etc. Departmental Stores are expected to take over the

apparel business from exclusive brand showrooms.

Marts/Supermarkets:

Large self service outlets, catering to varied shopper needs are termed as

Supermarkets. These are located in or near residential high streets. These stores today

contribute to 30% of all food & grocery organized retail sales. Super Markets can

further be classified in to mini supermarkets typically 1,000 sqft to 2,000 sqft and

large supermarkets ranging from of 3,500 sqft to 5,000 sq ft. having a strong focus on

food & grocery and personal sales.


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Industry Competitors:


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2.3COMPANY PROFILE:

Background and Inception of Big Bazaar Future Group

Future Group

Future Group is one of the country’s most important business groups present in retail,

asset management, consumer finance, insurance, retail media, retail spaces and

logistics. Future Group is present in 61 cities and 65 rural locations. The group’s

flagship company, Pantaloon Retail (India) Limited operates over 10,000,000 square

feet (930,000 m2) of retail space, has over 1,000 stores and employs over 30,000

people. Some of its leading retail formats include Pantaloons, Big Bazaar, Central,

Food Bazaar, Home Town, ezone, Depot, Future Money and online retail format

www.futurebazaar.com.

Future Group companies includes, Future Capital assets, Future Generali India, Indus

League Clothing and Galaxy Entertainment which manages Sports Bar, Brew Bar and

Bowling Co. Future Capital Holdings, the group’s financial arm, focuses on asset

management and consumer credit.

The group’s joint business enterprise partners embrace Italian insurance major

Generali, French retailer ETAM group, US-based stationary products retailer Staples

Inc and UK-based Lee Cooper and India-based Talwalkar’s, Blue Foods and Liberty

Shoes.

Future Group’s vision is to, “Deliver Everything, Everywhere, Every time to Every

Indian Consumer in the most gainful manner.” The group considers ‘Indian-ness’ as a

centerworth and its business credo is - Rewrite rules, Retain values.

Future Retail (surrounding all lines of retail business),

Future Capital (monetary products and services),

Future Brands (all brands owned or managed by group companies),

Future Space (management of retail real estate),

Future Logistics (management of supply chain and division)


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Future Media (improvement and management of retail media)

2.4 Awards and recognition

2009 CNBC Awaaz Consumer Awards 2009, Images Fashion Forum 2009, Coca-

Cola Golden Spoon Awards 2009

2008Indian Retail Forum Awards 2008, The INDIASTAR Award 2008 ,Retail Asia

Pacific 500 Top Awards 2008, Coca-Cola Golden Spoon Awards 2008, The Reid &

Taylor Awards For Retail Excellence 2008

2007 Images Retail Awards, National Retail Federation Awards, World Retail

Congress Awards, Hewitt Best Employers 2007, PC World Indian Website Awards

Reader’s Digest Trusted Brands Platinum Awards.

2006Retail Asia Pacific Top 500 Awards, Asia money Awards, Ernst & Young

Entrepreneur of the Year Award, CNBC Indian Business Leaders Awards,

LakshmipatSinghania – IIM Lucknow National Leadership Awards, Images Retail

Awards , Readers’ Digest Awards , CNBC Awaaz Consumer Awards, Reid & Taylor

Awards for Retail Excellence

2005 Images Retail Awards 2005,DAKS London

2004 Images Retail Awards 2004, Reid & Taylor and DLF Awards

2003Indian Express Award.


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Nature of Business

The company is at hand across several lines of business, which have various formats

(stores).

Fashion- Pantaloon, Central, Brand Factory, Blue, sky, Top 10, Fashion station,

Big Bazaar, Lee Cooper.

General Merchandise- Big Bazaar, shoe factory, Navras, Electronics Bazaar,

Furniture bazaar.

Electronics-Ezone, Electronic Bazaar, Staples.

Home improvement- Home Town

Furniture- Collection I , Furniture Bazaar , Home Bazaar.

E-tailing(online shopping)-www.futurebazaar.com

Books and music depot.

Wellness-Star &sitara, Tulsi.

Telecom & IT- Gen M, M Bazaar, M-Port, Coverage M , Future Axiom.

Service- E care, H care.

Investment & savings- ULIP, Pension, Endowment etc.

2.5 Vision of the company

“Future Group shall deliver Everything, Everywhere, Every time for Every Indian

Consumer in most profitable manner.”

Mission of the company

We share the dream and faith that our customers and stakeholders shall be served

only by creating and executing future scenario in the consumption space leading

to monetary development.

We will be the trendsetters in developing delivery formats, creating retail realty,

making consumption reasonably priced for all customer segments – for classes

and for masses.

We shall permeate Indian brands with self-belief and changed ambition.


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We shall be professional, cost- conscious and stanch to quality in whatever we do.

We shall ensure that our positive attitude, sincerity, humility and united

determination shall be the powerful force to make us successful.

Core Valuesof the company

Indiana’s: self-assurance in ourselves.

Leadership: to be a leader, both in attention and business.

Respect & Humility: to respect every personality and be humble in our conduct

2.6Product Profile (Big Bazaar)

1. Food items

Chill Zone

Chef zone

Hungry Kay

2. Non – Food items

Personal Care

Home care

Fabric clean

3. Staples

Basic staples

Cooking mediums

4. Fruit and Vegetables.

5. PUC (Plastic Utensils & crockery)

6. Cookware.

7. Electronics items

White goods.

Small appliances

My things


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AC and Geysers

LCD and LED Televisions

Audio Players.

8. Furniture Items

Dining tables

Bean bags

Wardrobe

Beds

Dressing Table

9. Men’s fashion items

Men casuals

Men formals

Men denims and tees

Men nightwear

Men seasonal wear

Men accessories

Men sports wear

Men occasional wear

10. Ladies fashion items

Ladies accessories

Ladies nightwear

Ladies ethnic(dress materials, sari, kurti,etc)

Ladies western

Ladies western formals

Ladies western party wear

Ladies sports wear


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11. Kids wear

Girls wear

Boys wear

Toddlers

Kids accessories

2.7 Major Competitors

K Raheja Group

They forayed into retail with Shopper’s Stop, India’s first departmental store in 2001.

It is the only retailer from India to become a member of the impressiveinternational

Group of Departmental Stores (IGDS). They have signed 50:50 joint venture with the

Nuance Group for Airport Retailing. Shoppers Stop has 7, 52, 00 sqft of retail space

with a turnover of Rs 6.75 billion. The first Hyper city opened in Mumbai in 2006

with an area of 1, 20,000 sq. ft. clocking gross sales of Rs. 1 bn in its first year.

Tata group:

Established in 1998, Trent - one of the subsidiaries of Tata Group - operates Westside,

a lifestyle retail chain and Star India Bazaar - a hypermarket with a large assortment

of products at the lowest prices. In 2005, it acquired marker, India's largest book and

music retailer. Trent has more than 4 lakh sq. ft. space across the country. Westside

registered a turnover of Rs 3.58 mn in 2006. Tata’s has also formed aadditional

named Infiniti retail which consists of Croma, a consumer electronics chain. It is a

15000-17000 sq. ft. format with 8 stores as of September 2007. Another subsidiary,

Titan Industries, owns brands like “Titan”, the watch of India has 200

Reliance

India’s most determined retail plans are by reliance, with savings to the tune of Rs.

30,000 cr ($ 6.67 bn) to set up multiple formats with expected sales of Rs 90,000

crores ($20 bn) by 2009-10.


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2.8 SWOT ANALYSIS

Strengths provide an insight to business opportunitiesandweakness in business can

cause instantaneous threats

A scan of the internal and external environment is an important part of the strategic

planning process. Environmental factors internal to the firm usually can be classified

as strength (S) and weakness (W) and the external to the firm can be classified as

opportunity (O) and threats (T). Such anpsychoanalysis of the planned environment is

referred to as SWOT analysis.

The SWOT analysis provides information that is helpful in matching the firm’s

resource and capabilities to the competitive environment in which it operate. As such

it is instrumental in strategy formulation and selection.

STRENGTH

High brand equity enjoyed by big bazaar.

State of the art infrastructure.

A vast verity of stuff available under one roof.

Everyday new prices, which attract customers.

Maximum percent of footfalls converted in sales.

Biggest value retail chain in India.

It offer a family shopping experience where entire family can visit together.

WEAKNESS

Not capable to meet store opening targets on time.

Falling revenue per sq ft.

General insight: “low price=low quality”.

Over crowd during offers.

Long lines at billing counters which are time consuming.

Limited only to value contribution low price products.


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OPPORTUNITIES

A lot of capacity in Indianplanned retail as it stand at approximately 4%.

Mounting more culture in India.

More people these days prefer to visit big store where they can find large selection

under one roof.

THREATS

Competition from other value retail chain such as shoprite, reliance(fresh &

trends),hyper city and D mart.

Unorganized retail also appers to be the pressure to big bazaar’s business.

A large inhabitant’s still prefers to visit limited convenient store for daily

purchases.

Changing government policy.

International group of actors looking foray India.


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2.9 FUTURE GROWTH AND PROSPECT OF BIG BAZAAR

There is no reason for any cynicism on Indian retail market prospects,

SanjeevAgarwal, the joint CEO of big bazaar, the future group chain, said here on

Friday.

Speaking to Business Standard at the launch of their 148th

store in the country, he said

the market was far from saturation. “We plan to continue opening one to two store

every month,” he said “We are positive on consumer spending.”

Agarwal said the chain’s revenue was at 25% yearly. However he declined to talk on

investment made or being planned.

Ruling out foray abroad, he said the opportunity in India was quite larger and,

therefore, there was no reason to look elsewhere. “Our strength lies in knowing Indian

customer well.

As for the decision by the retail chains, including his own, to alternate Reckitt

Benckiser’s product with their own after the later cut the sales margins it allowed

them, agarwal said the shift to in- house brands(he prefers the term ‘private brands’

to ‘private lables’) was 15 years old, not something triggered recently. ‘We have been

running the private brand programme for 15 years now’,he said. The Future Group

had always belived in managing the entire supply chain, he added.

INTERPRETATION:

There has been a decrease in the fixed asset turnover Ratio. decrease in the investment

in the fixed assets has brought loss to the organization.


27

CHAPTER 3

THEORETICAL BACKGROUND

OF THE STUDY


28

3. THEORITICAL BACKGROUND OF THE STUDY

Promotional offers

Meaning

Promotion is ansignificant 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.

The increasing power of large retailers has increased their ability to demand trade

promotion at expense of consumer promotion and advertising. These retailers depend

on promotion money from the manufacturers. No manufacturer could

unilaterallydonation trade allowances without losing retailer support. The company

sales force and its brand managers are often at odds over trade promotion.

PROMOTIONAL OFFER seems most successful when used together with

advertising in one study, a price promotion only produce 15% increase in sales value

when combine with feature advertising, sales volume increase 19%, when combine

with feature advertising and point of purchase display, sales volume increase in 24%.

Role of Promotion

Promotions are antremendously valuable tool for the marketing of brands.

Like all other tools, promotions can make a priceless 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


29

Effectiveness of Promotion

Promotions are antremendously valuable tool for the marketing of goods. Like all

other tools, promotions can make aexpensive contribution to marketing. :

Price savings, together with discounts, coupons or added value offers

Samples or trial offers to provide a low-risk way to try new products or services

Events or experiences to generate crowds, enthusiasm, sales, publicity

Promotion function

The function of promotion is to go faster action stated by other marketing activities.

Promotion acts as a channel to accelerate action, primarily on the part of the

consumer. It supplements, but is not a replacement for, advertising and selling efforts.

Promotion accelerates action by altering 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 enthusiastic to expend (in money) for what he gets, or thinks be

gets, When he buys the product.

Promotion’s role in the life cycle of a brand

At each stage in a brand’s life cycle a dissimilar degree of promotional emphasis is

required.

New Product

A new product can usually profit from considerable 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 worthhas not yet been fully established in the minds of all consumers.

Although good advertising on a new brand will plead your case many consumers to

try the brand, it is not likely to persuade every logical prospect to take immediate

action.


30

Growing Brand

There are indications, by the way, that many new brands (but not all) reach their

share-of-market climax within six months to a year after the completion of their

preface. This leads to the termination that a brand of proven product and advertising

copy superiority would be well advised to meet maximum trial during the

introductory period by spending heavily in the advertising media and on the

promotional devices that are most effective in reaching the brand’s best long-term

prospective consumers

Stable Brand

An established, growing brand usually 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 possible customers have tried the brand. In

addition, 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.

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.


31

Major Types of Customer Promotions

1. Sampling - sharing of free special or regular size package to consumers

2. Couponing - Distribution of certificates with a stated monetary or merchandize

value which the consumer redeems through a retailer towards the purchase of the

particular item.

3. Demonstrations - Anphotographof how a product is prepared and 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 - Invitingcustomers,for free trials of products without cost.

6. Exchange Mela - Recent strategies to promote the offers where in there is

exchange of old used items to purchase new.

7. Customer membership cards: Customer purchases a card value that is valid for

one year and gets benefit of 20% extra at the end of the year


32

CHAPTER 4

ANALYSIS AND

INTERPRETATION OF DATA


33

TABLE 1

Showing that how frequently they visit Big Bazaar

Options Number of Respondents

% of respondents

Occasionally 27 27%

Once in a month 27 27%

Once in a week 23 23%

Daily 4 4%

As and when required 19 19%

Inference:as the study shows 27 respondents out if 100 chose to frequently visit the

store and just 4 out of 100 visits regularly.


34

Graph Showing that how frequently they visit Big Bazaar

Interpretations: According to above, graph 27 people have responded that they visit

big bazaar occasionally, another 27 once in a month, 23 once in a week, 4 daily and

13 as and when required.

27 27

23

4

19

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

How frequently you visit Big Bazaar

Number of people


35

TABLE 2

Showing which day they prefer to go


% of respondents

Sunday 41 41%

Monday 18 18%

Wednesday 24 24%

Friday 5 5%

Saturday 12 12%

Inference: as the study shows the number of visitors are more in Sundays going up to

41 and comparatively lesser in weekdays coming down to 185 and 24 respectively.


36

Graph showing which day they prefer to go

Interpretations: According to above graph 41 have responded they prefer to go on

Sundays, 18 would go on Monday, 24 will go on Wednesday,5 will go on Friday and

8 will go on Saturday.

41

18

24

5 12

Sunday Monday Wednesday Friday Saturday

Which day you prefer to go

Number of people


37

TABLE 3

Showing Which day they prefer particularly

Options Number of respondents

% of respondents

Holiday 45 45%

Promotion(offer) 29 29%

Stock Over 8 8%

Less walk ins 12 12%

Other 6 6%

Inference: this study throws light on which day the customers prefer to visit the store. It is known that during holidays the number has gone up to 45 and promotions up to 29 and stock over up to 8.


38

Graph showing which day they prefer particularly

Interpretations: According to the above graph 45 have responded that they would

prefer to visit shop on Holiday, 29 on promotional offer days, 8 on stock over day, 12

less walk ins and 4 on other days.

45

29

8 12

6

Holiday Promotion(offer) Stock Over Less walk ins Other

Why you prefer particular day

Number of people


39

TABLE 4 Showing the promotional offers at big bazar


% of

respondents

Yes 52 52%

No 48 48%

Inference: this study shows the awareness of customers regarding the offers at the

store .it is said that 52 customers are aware and the rest 48 customers are not aware.


40

Graph showing the promotional offers at big bazaar

Interpretations: According to the above graph 52 have said Yes and 44 have said No .

52

48

Yes No

Are you aware of promotional offers at Big Bazaar

Number of people


41

TABLE 5

Showing the mode of communication

Options Number of respondents % of respondents

TV 28 28%

News Paper 41 41%

Hoardings 12 12%

Internet 19 19%

Inference: this study shows the mode of communication. News papers tops the list going up toto 41 and second comes internet of 19.


42

Graph showing the mode of communication

Interpretations: According to the above graph, 41 have said they came to know

through Newspaper, 28 through TV, 12 through Hoardings and 14 through Internet.

28

41

12 19

TV News Paper Hoardings Internet

If yes what was the mode of communication

Number of people


43

TABLE 6

Showing which media is influence able


% of respondents

Print Media 20 20%

Television 45 45%

Internet 25 25%

Radio 10 10%

Inference: the study shows the type of media influence able. TV has the highest with

45 and radio being the least with 10


44

Graph Showing which media is influence able

Interpretations: According to the above graph 45 were influenced through TV , 24

through Internet , 20 through Print media and 10 through Radio.

20

45

25

10

Print Media Television Internet Radio

Rate which media is influence able

Number of people


45

TABLE 7

Showing the notification of promotional offers on a Particular day


Yes 45 45% No 55 55%

Inference: this study shows the awareness of offers at that particular day where 45 customers agreed yes and 55 customers agreed no .


46

Graph showing the notification of promotional offers on a Particular day

Interpretations: According to the above graph we see that 63 say No they did not here

promotional offers today and 45 said Yes.

45

55

Yes No

Did you notice/hear about the promotional offers today

Number of people


47

TABLE 8

Inference:the study shows the level of attractiveness that the store can induce in a customer out of whom47 strongly agree neither disagree and 35 strongly disagree.

Showing the table of inducing of purchasing


Strongly agree 35 35%

Neither agree/nor disagree 47 47%

Strongly Disagree 18 18%


48

Graph showing the table of inducing of purchasing

Interpretations: According to the above graph we see that 47 have neither agree/nor

disagree about attractive and induce to make a purchase.

35

47

18

Strongly agree Neither agree/nor disagree Strongly Disagree

The promotional offer at Big Bazaar are attractive and induce me to make

a purchase

Number of people


49

TABLE 9

Showing the range of products with expectation of promotional offers

Options Number of people % of respondents

Clothing 48

48%

Groceries 28 28% Electronic Items 16 16% Furniture 8 8%

Inference: this study shows the range of products to which customers expect promotional offers at the store out of which clothing has the highest number of 48 , groceries of 28 and furniture of 8.


50

Graph Showing the range of products with expectation of promotional offers

Interpretations: According to the above graph, 48 have said they like to have

promotional offers for clothing.

48

28

16

8

Clothing Groceries Electronic Items Furniture

For which range of products/brands you expect promotional offer

Number of people


51

TABLE 10

Showing the table of recent visits

Options Number of people % of respondents

Yes 52 52% No 48 48%

Inference: study shows whether the customers availed, any offers at the store out of

which 52 agreed and 48 disagreed


52

Graph Showing the table of recent visits

Interpretations: According to the above graph, 52 have said they have availed to offer

during their recent visits.

52

48

Yes No

Have you availed any offer during your recent visits

Number of people


53

TABLE 11

Showing the table of number of people choosing on offers


% of

respondents

Great exchange offers 15 15%

Buy one get one free 37 37%

Discount offer 24 24%

Buy 3 apparels at 999 20 20%

Free offer 4 4%

Inference: this study shows the interests of customers while choosing the best offers.

in which 37 voted for “BUY ONE GET ONE FREE” 24 voted for “DISCOUNT

OFFER” 20 voted for “buy 3 apparels at 999” and 4 voted for “FREE OFFER”

Graph Showing the table of communication or word of mouth spread


54

Graph Showing the table of number of people choosing on offers

Interpretations: According to the above table, 37 have said they know about Buy one

get one free offer and 24 have said about discount offer.

15

37

24 20

4

Great exchange offers

Buy one get one free

Discount offer Buy 3 apparels at 999

Free offer

Number of people on offers

Number of people


55

TABLE 12 Showing the table of communication or word of mouth spread


Yes 61 61% No 39 39%

Inference: study shows whether the customers communicate the offers to others are

not. Out of which 61 said yes and 39 said no.


56

Graph showing the table of communication or word of mouth spread

Interpretations: According to the above table, 37 have said they know about Buy one

get one free offer and 24 have said about discount offer.

61

39

Yes No

Do you communicate offers at big bazaar to your friends/relatives

Number of people


57

TABLE 13

Showing the table of betterment


% of respondents

Price 23 23%

Quality 27 27%

Product range 42 42%

Other retail shops 8 8%

Inference: this study shows the interests of customers in various aspects like quality for which 27agreed,price 23 agreed, product range 42 voted yes, other stores 8 agreed.

Graph showing the table of number of visits by customers


58

Graph showing the table of betterment

Interpretations: According to the above graph, 42 have said they like the product

range of big bazaar.

23 27

42

8

Price Quality Product range Other retail shops

Where do you find the following better

Number of people


59

TABLE 14

Showing the table of number of visits by customers


Yes 75 75% No 25 25%

Inference: this study shows the outcome of customer’s perception after visiting the

store. 75 said yes and 25 said no based on the offers.


60

Graph showing the table of number of visits by customers

Interpretations: According to above graph 75 have said they like to visit big bazaar

because of offers provided by them.

75

25

Yes No

Do offers make you feel like visiting Big Bazaar again

Number of people


61

CHAPTER 5

FINDINGS, SUGGESTIONS

AND CONCLUSION


62

5.1 FINDINGS

Big Bazaar promotes and attracts customers through Newspaper and TV. 41% have

said they come to know about products through newspaper and 45% have said

through television.

Big Bazaar’s offers make the customer to come again and again as 75% have

responded positively that there offers are attractive.

Big Bazaar have very good product range , they have variety of products from

different companies and they have very good strategic tie-ups with other

manufacturers and suppliers.

Customers always prefer to visit Big Bazaar on Sundays and Holidays. This shows

that they would like to spend their time on shopping in Big Bazaar.

Customer like offers on clothing and they like the offer of buy one get one free

which makes them to purchase more and more.


63

5.2 Suggestions

Big Bazaar should concentrate on young customers, which are below 25 years that

will make them grow better in market.

All the promotional offers should be communicated clearly for better

understanding to customers.

Big Bazaar should make Internet as one of the Medians to communicate

promotional offers for better reach and availability.

As Employees are key customers, Big Bazaar should have separate promotion

schemes to retain them.

Advertisement should be attractive and transparent. They should be

communicated same as offers.

The duration of the discount offers must be increased, so that more number of

customers can avail the benefit.

Big Bazaar have to conduct more and more personal contact program to retain as

well as establish new customers.

Sales force should be educated in order to assist and coordinate with customers.

customer queries and complaints regarding promotional offers should be

considered in order to provide the value for the customer.

Due to threat of entry of competitors company need to be more attentive or

aggressive in terms of advertising and PROMOTIONAL OFFER measures.

Quality of the products to be maintained and improved a customers now a days

perceive quality as one of the prime influencer along with price.

Big Bazaar should concentrate on CSR retain employees.


64

4.3 Conclusion:

It is concluded that promotional offers play an important role to increase the sales in

short terms. Bangalore population is experiencing a new pattern of shopping. The

customer buying pattern has changed with the introduction of big bazaar in

Bangalore. The foot fall has increased at big bazaar .Customers are exposed to new

brands and becoming brand savvy.

Though there are many competitors for big bazaar, it has maintained its standard and

customer retention through promotional offers. Big bazaar has adopted print media

and TV advertisements as mode of communication to reach every customer and make

sure promotional offers are attractive and should induce them to make purchases.

Big bazaar has tremendous scope in food and groceries, as most of the customers visit

big bazaar for these purchases. Promotional offers in these items will give big bazaar

an edge over competition.

The company has already attained a good image in the minds of people. The best

sources of attraction is television advertisement and print media and so company

should cast more attractive way of advertisements highlighting exchange offers and

discounts. This will help the company to attain new customer as well as retain old

customers who play a very important role in word of mouth communication.

Much of the customer of big bazaar is satisfied and happily suggests keeping up the

service and giving a positive result. People have high expectation from the company

and looking forward for better service. We can see various advertisements that come

in TV and print media. Most of the customer has much more expectations and thus the

company has to keep that in mind and bring out new ways to attract and retain the

customers.

With all the analysis, it can be concluded that the company is always trying to provide

best service to the people. It tries to improve the service day by day to form a better

relationship with its customers. If the company maintains this level of service, it will

enhance the company to grow and achieve its target of getting more customers


65

BIBLIOGRAPHY

1) Kishore Biyani, DipayanBaishya (2007): It happened in India: The story of

Pantaloons, Big Bazaar, Central and the great Indian consumer.

2) Pradeep S. Mehta, CUTS Centre for Competition, Investment & Economic

Regulation (Jaipur, India) – (2006) - Preview, A functional competition policy for

India

3) Garry Crystal, ‘What is mail order?’, wise GEEK, May 31, 2014, referred on June

18, 2014. <http://www.wisegeek.com/what-is-mail-order.htm>

4) Gilbert, D. C. and Jackaria, N. (2002), ‘The efficacy of PROMOTIONAL OFFERs

in UK supermarkets: A consumer view’, International Journal of Retail & Distribution

Management, 30(6), 315-322.

5) N.D. ‘Point of Purchase promotions’, Boundless, referred on June 18, 2014.

<https://www.boundless.com/marketing/personal-selling-sales-promotion/consumer-

sales- promotion-methods/point-of-purchase-promotions/>

6) David Hessekiel, ‘Charity: The fatal flaw of cause marketing parternships’, Forbes,

March 11, 2013, referred on June 18, 2014.

<http://www.forbes.com/sites/davidhessekiel/2013/03/11/avoid-the-c-word-in-cause-

marketing-partnerships/>

7).Philip Kotler, Kevin Lane Keller, AbrahimKoshi, MithelehwerJha, Marketing

Management, A South Asian Perspective,12th ed., Pearson Prentice Hall. (2006)

8) Philip Kotler, From Sales Obsession to Marketing Effectiveness, Harvard Business

Review.

9) C.R. Kothari, Research Methodology : Methods & Techniques – New age

Publication – 2009

10) Kisholoy Roy, Retail Management – Managing Retail Stores – Vrinda

Publications

WEBSITES

1. www.futuregroup.com

2. www.timesofindia.com

3. www.economictimes.com

http://www.economictimes.com/


66

ANNEXURE

Dear Respondent,

I am KIRAN R Student of MBA 4th semester, at NEW HORIZON COLLEGE OF

ENGINEERINGhave undertaken a project titled “Effectiveness of promotional

offers” at OMR Big Bazaar, Bangalore. Hence, I request your kind co-operation by

sparing your precious time in answering the following questions and providing

information.

Name:

Sex: Male Female

Please specify your age group (years):

(a) Less than 25 (b) 26-40 (c) 41-50 (d) Over 50

Please specify your monthly household income (Rs.):

(a) Less than 10,000 Rs./month (b) 10,000 to 20,000 Rs./month

(c) 20,000 to 30,000 Rs./month (d) Over 30,000 Rs./month

Occupation:

(a) Business (b) Employee (c) Professional

(d) House wife (e) Student

Q1: How frequently you visit Big Bazaar

Occasionally once in a month once in a week daily as and when required

Q2: Which day you prefer to go?

Sunday Monday Wednesday Friday

Saturday

Q3: Why you prefer particular day?

Holiday Promotion (Offer) Stock Over Less Walk- ins

Other……………

Q4: Are you aware of promotional offers at Big Bazaar ?

Yes No


67

Q5: If yes what was the mode of communication?

TV News Paper Hoardings Internet

Q6: Rate which media is influence able.

Influence able One Moderate Not Influencable One

Print media

Television

Internet

Radio

Q7: Did you notice/hear about the pramotional offers today ?

Yes No

Q:8 The Promotional offer at Big Bazaar are attractive and induce me to make a

purchase

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

agree

Q:9 For which range of products/brands you expect promotional offer ?

Clothing Groceries Electronic Items Furniture

Q10: Have you availed any offer during your recent visits ?

Yes No

Q11: From the following,which are the offers are you aware

A. Great exchange offers B. Buy one get one free C. Discount offer

D. Buy 3 apparels at 999 E. Free Offer

Q12: Do you communicate offers at Big bazaar to your friends/relatives?

Yes No

Q13: Where do you find the following better (please mark)

At Big Bazaar At other Retail shops


68

Price

Quality

Product range

Promotional offers

Ambience

Q14: Do offers make you feel like visiting Big Bazaar again ?

Yes No

Promotional offers at big bazaar

Documents

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