CHAPTER-I

INTRODUCTION

CRM is a business strategy directed to understand, anticipate and respond to the needs
of an enterprise's current and potential customers in order to grow the relationship
value. The Customer Relationship Management is the procedure that is crucial for
every business.

A long term relationship with customers to nurture its stability in today‘s blooming
market.

Customer‘s expectations are now not only limited to get best products and services,
they also need a face-to-face business in which they want to receive exactly what they
demand and in a quick time.

Customer Relationship Management is an upright concept or strategy to solidify

relations with customers and at the same time reducing cost and enhancing
productivity and profitability in business. A CRM system is implemented for small
business, as well as large enterprises also as the main goal is to assist the customers
efficiently. The Customer Relationship Management is the procedure that is crucial
for every business. As the customer is the most important part of the business.

According to Gartner CRM is a business strategy designed to optimize profitability,

revenue, and customer satisfaction.

Parvatiyar and sheth (2001) defined CRM is a comprehensive strategy and process
of acquiring, retaining and partnering with selective customers to create superior
value for the company and the customer.

Customer relationship management is the technique of providing information to

prospects and customers, and collecting information about prospects and customers,
that allows us to help them evaluate and purchase products that deliver the best
possible value to them.

1
Customer Relationship Management has become a popular name for a variety of
software tools and techniques aimed at attracting and retaining customers. In general,
CRM uses a centralized database to bring marketing and sales activities together in a
unified approach to serving customers.

One-to-one marketing and relationship marketing is to make it easier for the

manufacturer to do business.

• Marketing and sales people have many opportunities to influence customer

purchase decisions by the way making smooth relationship with the customer.

• The concept of relationship management with respect to the customer, to get

efficiency (cost reduction) and responsiveness (instant delivery).

• RELATIONSHIP MANAGEMENT by an organization can be divided into two

categories

1. External relations

2. Internal relations

2
1.1 NEED FOR THE STUDY

Customer Relationship Management is becoming imperative for all organizations

irrespective of its size and nature as CRM is one of the corporate strategy to
understand the customer needs and fulfilling them by maintaining proper relationships
with customers to inculcate satisfaction in them thereby the business grow and
prosper. Especially CRM is becoming very crucial in retailing organizations as there
is hefty competition among the organized retailers. The organizations are devising
various strategies or tools time to time to touch with the customers to stimulate them
to buy products or services. This context gives rise to study the Customer
Relationship Management area to understand the practices of organizations to build
up the bond with customers. The present study is undertaken to know the Customer
Relationship Management in Big Bazaar.

1.2 OBJECTIVES OF THE STUDY

1. To understand the Customer Relationship Management practices in Big

Bazaar.

2. To identify the means by which CRM is being implemented.

3. To assess Customer Relationship Management impact on customer

satisfaction.

4. To know CRM influence on organizational performance.

1.3 SCOPE OF THE STUDY

The study is confined to Big Bazaar, Hyderabad only. The study covers customers of
the Big Bazaar and the data has been gathered through them to understand the
Customer Relationship Management in Big Bazaar.

3
PERIOD OF THE STUDY
The study has been conducted for 6 weeks i.e. from 1 st August, 2017 to 15th
September, 2017.

1.4 RESEARCH METHODOLOGY

METHOD OF RESEARCH:
Based on the need for the study the case method has been adopted to gain indepth
insight on Customer Relationship Management.

SOURCES OF DATA COLLECTION

The data has been collected from two sources i.e. Primary and Secondary sources.
DATA COLLECTION METHODS

Primary Method:
Questionnaire has been constructed and distributed to customers of the Big Bazaar to
gather primary data for the study.

Secondary Method:
Secondary data has been collected from Books, Journals, and Company Website etc.

SAMPLING TECHNIQUE
Based on the requirement for the study, Convenient Sampling technique has been
adopted.

SAMPLE SIZE:
The sample size for the study is 100 customers.

DATA ANALYSIS TOOLS

4
Simple tabulation, percentage methods has been used for analysing and interpreting
the collected data.

1.6 LIMITATIONS OF THE STUDY

The study is confined to only one store of Big Bazaar and the results of the study is
confined to this store only and may not apply to any other store or retail organization.
Due to confidentiality most of the data has been elicited from the customers rather
from organization.

CHAPTERISATION:

CHAPTER-I: INTRODUCTION
This chapter covers introduction of the study, objectives, research methodology,
sampling and sample size etc.

CHAPTER II: REVIEW OF THE LITERATURE

This chapter throws light on the theoretical aspects on the topic of Customer
Relationship Management.

CHAPTER- III: COMPANY PROFILE

This chapter focuses on the growth and prosperity of the retail industry and it also
focuses on the inception, growth, milestones, products etc of Big Bazaar.

CHAPTER-IV: DATA ANALYSIS AND INTERPRETATION

This chapter covers analysis and interpretation of collected data.

CHAPTER-V: CONCLUSION, FINDINGS AND SUGGESTIONS

This chapter draws conclusion, findings of the study. It also offers suggestions to the
organization to strengthen the Customer Relationship Management in Big Bazaar.

5
 CHAPTER-II
2.REVIEW OF LITERATURE

CONCEPT AND CONTEXT OF RELATIONSHIP MANAGEMENT

Customer relationship management is the technique of providing information to

prospects and customers, and collecting information about prospects and customers,
that allows us to help them evaluate and purchase products that deliver the best
possible value to them.

One-to-one marketing, and relationship marketing is to make it easier for the

customer to do business with you. Marketing and sales people have many
opportunities to influence customer purchase decisions. Until recently it was normal
for these functions to be performed separately — by different departments within a
company — without acting as a unified team. So we must understand that coordinated
efforts are now being made to unify approach.

Customer Relationship Management has become a popular name for a variety of

software tools and techniques aimed at attracting and retaining customers. In general,
CRM uses a centralized database to bring marketing and sales activities together in a
unified approach to serving customers.

One-to-one marketing and relationship marketing is to make it easier for the

manufacturer to do business.

• Marketing and sales people have many opportunities to influence customer purchase
decisions by the way making smooth relationship with the customer.

6
• The concept of relationship management with respect to the customer, to get
efficiency (cost reduction)and responsiveness (instant delivery).

• RELATIONSHIP MANAGEMENT by an organization can be divided into two

Categories
1. External relations
2. Internal relations

EXTERNAL RELATIONSHIP

• Two major external stakeholders of a business are customers and suppliers.

Customer relations: customer relations can be defined as the process by which

companies promote customer satisfaction and loyalty.

It involves managing communications with customers, particularly customer‘s

questions and complaints and solving their disputes.

• The ultimate goal of customer relations program is to build long term relationships.
• Building a strong reputation for the brand and company.

Supplier relations: All companies tries to build a strong relationship with their
suppliers.

• Supplier relationships are different from simple purchasing transactions in several

ways. There can be a sense of commitment to the supplier.

• Eg: vendor (seller) sells certain items to the buyer for several times then he thinks
that he will come for a next time purchase.

INTERNAL RELATIONSHIP

• It is an integrative process with in a system for fostering positive working

relationship in a developmental way in a climate cooperation and achievement.

7
• Internal relationship is an ongoing process that occurs strictly within a company or
organization.

• Internal relationship helps to motivate and empower employees at all levels of

management and its consistently deliver a satisfying customer experience.

• Features of internal relationship management

• Customer commitment is earned in a social contract

• There is a open ideas for mutual gain.

• Close partnership between suppliers and customers.

• Customers are viewed as individual people and so are value providers.

Continuous interaction and dialogue between suppliers and customers.

• Focuses on discovering, creating and responding to customer needs.

• Relationships are viewed as enterprise assets.

• There is a systematic collection and dissemination of customer information

(detailing and negotiating requirements, expectations, needs, attitudes and
satisfaction)

ROLE OF INTERNAL RELATIONSHIP MANAGEMENT

• MANAGEMENT OF CHANGE Introduction of IT & new management

practices.
• BUILDING CORPORATE IMAGE:
The team develops corporate image among the employees.

8
• STRATEGIC INTERNAL MARKETING:
The CRM team solve an inter departmental conflict and work common benefit of the
organisation.

• Relationship between companies and customers

• Reducing marketing costs
• Better customer insights
• Life time value (LTV)

EVOLUATION OF CRM

The modern concept of customer service has its roots in the Craftsman Economy of
the 1800s, when individuals and small groups of Manufacturers competed to produce
arts and crafts to meet public Demand. Individual orders were booked for each
customer and supplied according to his/her taste and demands. The economies were
small and so were the transactions. The manufacturer was able to meet the customers
on one to one basis and talk to customer to understand the minute details. Customer
care and service were highly personalized.

But then the economics swing was setting in. The technology was increasing and so
was it difficult to cater to the individualistic needs of the customer. Gradually, the era
of mass production came in.

The advent of Mass Production in the early 20th century, followed by an explosion in
the demand for goods after World War II, increased the power of suppliers at the
expense of consumers, and thus reduced the importance of customer service. History
tells us that customer service as a concept was kept aside in the cell. The
manufacturers could produce what they could and these goods will find their way to
customers on their own. Infect, it was the age of demand exceeding supplies. There
was no need for customer service as an activity or as a tool for promotion or
enhancement of markets. But things never remain the same for long periods of time.

A shift in this balance began in the 1970s, as international competition increased, and
the dominance of western manufacturers was challenged, first by Japan, then by
9
Korea, China and other developing economies. New world emerged with these
Eastern economies taking to tremendous growth Producers responded by improving
the quality of their products and services.
They introduced to the world entirely a new concept—the concept of simplicity and
convenience and economy to the world The economic boom of the 1990s again
increased the power of suppliers who, while not completely reverting to lower
standards of service, were able to be more selective of which customers to serve, and
of what levels of service to provide.

The overall quality of customer service - in society and in specific industry- will
continue to be determined by the relative balance of power between suppliers and
consumers; it will improve as competition becomes more intense, and decline as
competition decreases. We have to assess the global situation today and derive that we
are facing a new development. Briefly, the product similarity is making it more a
challenge today than ever before, to upgrade customer services to get an edge over the
competitors.

 The changes in market demand and competitive strategy forced the company
to change from transactional marketing to relationship marketing.

 Marketing mix was developed in the 1950s in order to exploit market demand.
all the p‘s of marketing helps to explore increased demand of the company‘s
products and services.

 The objective of transactional approach of marketing is to sell more products

and services to maximize sales and profit.

 Increased competition and matured markets have led to the low growth. Which
results in increased pressure and corporate profitability?

 The beginning of globalization of markets, new competitions led to the greater

customer choice.

10
  Companies must move from a short-term transaction oriented goal to long
term relationship building goal.

 Companies are compete successfully in domestic and global markets including

customers, distributors, employees, unions and governments.

 The term marketing domain is defined as stakeholders which have to be taken

into consideration in order to develop relationships and to achieve long-term
success in the final marketplace.

 The increased importance of relationship marketing also led to an increasing

demand for an efficient customer relationship management.

 The task of finding who your customers are?

What they exactly want and providing it seems to be a task with difficulties.

 Understanding and management of customer‘s expectations is rather a key to

success in order to be able to create satisfied customers.

 Customer knowledge is required to satisfy their customers and reach the

ultimate goal of a company.

 Create customer knowledge and the utilization of the customer relationship

management system is essential.

TRANSACTIONAL vs RELATIONSHIP APPROACH

As marketing has entered the 21st Century, a significant change is taking place in the
way companies interact with customers. The traditional view of marketing as a simple
exchange process—a concept that might be termed transaction-based marketing—is
being replaced by a different, longer-term approach.

11
Transactional marketing strategies focused on attracting consumers. The goal was to
identify prospects, convert them to customers, and complete sales transactions. But
today‘s marketers realize that, although it remains important, attracting new
customers is truly an intermediate step in the marketing process. Marketing efforts
must focus on establishing and maintaining mutually beneficial relationships with
existing customers. These efforts must expand to include suppliers and employees, as
well.

The concept, called relationship marketing, refers to the development, growth, and
maintenance of long-term, cost-effective exchange relationships with individual
customers, suppliers, employees, and other partners for mutual benefits. It broaches
the scope of external marketing relationships to include suppliers, customers, and
referral sources. In relationship marketing, the term customer takes on a new
meaning. Employees serve customers within an organization as well as outside it;
individual employees and their departments are customers of and suppliers to one
another.

They must apply the same high standards of customer satisfaction to inter-
departmental relationships as they do to external customer relationships. Relationship
marketing recognizes the critical importance of internal marketing to the success of
external marketing plans. Programs that improve customer service inside a company
also raise productivity and staff morale, resulting in better customer relationships
outside the firm.

Relationship marketing gives a company new opportunities to gain a competitive edge

by moving customers up a loyalty hierarchy from new customers to regular
purchasers, then to loyal supporters of the company and its goods and services, and
finally to advocates who not only buy the company‘s products but recommend them
to others. by converting indifferent customers into loyal ones, companies generate
repeat sales.

The cost of maintaining existing customers is far below the cost of finding new ones,
and these loyal customers are profitable ones. Effective relationship marketing relies
heavily on information technologies such as computer databases that record

12
customers‘ tastes, price preferences, and lifestyles along with the increase of
electronic communications. This technology helps companies become one-to-one
marketers that gather customer-specific information and provide individually
customized goods and services.

The firms target their marketing programs to appropriate groups, rather than relying
on mass-marketing campaigns. Companies who study their customers‘ preferences
and react accordingly gain distinct competitive advantages.

CRM AS A STRATEGIC MARKETING TOOL

Marketing is one of the new discoveries in business management. Of late, marketing
has come to occupy significant position in the overall strategic studies. Various
challenges are emerging in marketing as well as new approaches are being made in its
study to view its different aspects of the many things it has been recently realized that
customer is the most important elements in marketing and its sustenance and retention
is far more important than any other marketing functions.CRM is one of the core area
in marketing.

The major areas of CRM focus on:

• Generation and servicing more loyal customers.

• Expansion of customer base

• Reduction of advertising costs

• Increase in profitable customers

• Ease in introduction of new products

• Personal Information Gathering and Processing, Self-Service.

• CRM is the marketing management practice of identifying, attracting and retaining

the most valuable customer to sustain profitable growth

13
• CRM is the process of making and keeping customers and maximizing their
profitability, behaviors and satisfaction.

• Today customer demand open equal access, real time specialized information,
convenient access, portability, process and logistics transparency, pricing
transparency, global pricing, ability to set prices, choices of distribution channels and
control over their information.

• First time customer can become a repeat customer, thereafter a client, then an
advocate and finally one‘s partner in progress.

• Loyal customers always create a profit and also reduced operating cost, increased
purchases and give plenty of referrals.

The realistic observation on customers that it costs ten times more to sell to new
customers than to sell to an existing one.

• Existing customer deliver most of the revenues.

• It‘s very important part of CRM is to identify the Most Valuable Customers (MVC)
for the success of the business.

• A small net upward migration of customers (5-10%) can deliver a dramatic

improvement in business performance.

• Marketing and sales are charged with influencing customer behavior.

• Customer success always equal to business success.

CRM SIGNIFICANCE

• Perpetual stream of revenue

14
• Positive referral creation

• Provides premium

• Helps customer retention

• Lowers cost of sale

• Helps understanding consumer behavior

• Provides opportunity to cross-sell and up-sell

• Reduces marketing time

• Channel cost rationalization

• Enables business process re-engineering

ELEMENTS OF CRM:

When your company communicates with your customers the process can involve
many different people within both organizations using a variety of different methods.
The main tool that is used is an order that is communicated by your customer to your
sales department. However this is only one of many communications that should be
managed. To ensure that your company can provide the best customer service
experience possible the use of customer relationship management (CRM) software
should be considered.

• CUSTOMER KNOWLEDGE

The customer service function in your company represents the front office functions
that interact with your customers. These are the business processes that allow your
company to sell products and services to your customers, communicate with your
customers with regards marketing and dealing with the after sales service

15
requirements of your customers. Each interaction with the customer is recorded and
stored within the CRM software where it can be retrieved by other employees if
needed.

• RELATIONSHIP STRATEGY

• COMMUNICATION

• INDIVIDUAL VALUE PROPOSITION

• SALES FORCE AUTOMATION

• The company‘s sales department is constantly looking for sales opportunities with
existing and new customers. The sales force automation functionality of CRM
software allows the sales teams to record each contact with customers, the details of
the contact and if follow up is required. This can provide a sales force with greater
efficiencies as there is little chance for duplication of effort. The ability for employees
outside of the sales team to have access to this data ensures that they have the most
recent contact information with customers. This is important when customers contact
employees outside of the sales team so that customers are given the best level of
customer service.

CRM PROCESS

STEPS OF CRM PROCESS

16
1.Acquisition :

It comprises enquiry, interaction, exchange, co-ordination and adaptation.

2.Customer Interaction Management

3.Customer Retention
• Customer Acquisition
• Customer acquisition is a broad term that is used to identify the process and
procedures used to locate, qualify, and ultimately secure the business of new
customers.
• Customer retention effort is to identify and quality potential customers.
• Inputs for Acquisition
• The purpose of customer acquisition an organization is likely to focus its
attention on the following

1. The suspects

2. The enquiries
3. The lapsed customers
4. The former customers

5. The competitors customers

6. The competitors lapsed customer‘s

7. The competitor‘s enquiries

8. The competitors former customers

9. The referrals

10. The existing customers

MODELS OF CRM
17
IDIC MODEL:

I- IDENTIFY

D – DIFFENCIATE

I – INTERACT

C – CUSTOMIZE
Qci MODEL

CRM Value chain

18
Payne‘s Five-process model

Gartner Competency model

19
CRM IMPLEMENTATION ROADMAP

A CRM Roadmap is a strategic plan that identifies how a company can meet and
exceed its customers‘ needs. This includes, but is not limited to, assessing how the
sales, marketing, and service entities work together to:
1) Gain insight from their customers
2) Produce valuable offerings/products (for example, personalized product); and 3)
Provide the ultimate customer experience.
Developing a CRM Roadmap involves aligning an organization‘s business strategy
with its prioritized CRM capabilities. For example, if a company‘s business strategy is
to develop products faster to gain unique market positioning, the capabilities that the
company needs to master should be aligned with that strategy, and might include:

• Leveraging customer information from the service process (for example, integrating
customer feedback during service calls with the marketing department).

Effectively managing product mix (measure success by campaign).

• Effectively managing sales channel strategy (eliminate conflict between distribution
channels).
So how do companies know which CRM capabilities they have, and which they‘ll
need to realize their strategic goal? Below are the eight primary steps (which have
been used across industries, including financial services, electronics and high-tech,
consumer products, manufacturing, etc.) to follow when developing a CRM roadmap.

• SCENARIO ANALYSIS

• PURPOSE AND OBJECTIVES

20
• BUSINESS PLANNING

• PROCESS DESIGN

A. Technology and vendor selection

B. Solution development
C. Implementation
D. Measurement

STRATEGIC CRM PLANNING PROCESS:

• Defining the business objectives.

• Understanding CRM Three dimensions (people, process, IT)

• Using a structured approach to manage CRM

• Identifying both corporate and customer needs

• Using customer needs to re-engineer business processes

• Selecting technology based on business needs and functionality

• Ensuring systems development is business led

• Ensuring actionable measures of customer performance

• Actively managing culture and change, win buy in

• Using a phased implementation strategy

CRM IMPLEMENTATION (PHASES)

21
• Develop the CRM Strategy

• Build CRM Project foundations

• Need specifications and partner selection

• Project implementation

• Performance evaluation

1.Develop the CRM Strategy

• Situational analysis

• Customer or segments

• Market offering

• Channels of distribution
Commencing the CRM education

• Developing CRM vision

• Setting priorities

• Goals and objectives

• Identifying the people,process,and technology requirement

• Develop a business case

2. Build CRM Project foundations

• Identify stakeholders

22
• Establishing the governance structure

• Identify the change management needs

• Identify the project management needs

• Identifying the criteria success factors

• Developing a risk management plan

3. Need specifications and partner selection

• Process mapping and refinement

• Data reviewing and gap analysis

• Hosted or On-premise CRM

• Calling for proposals

• Invite potential partners

• Revised technology need identification

• Asset the proposals and select one or more partners

4.Project Implementation

• Refining project plan

• Identifying the technology customization needs

• Prototype design, test, modify, and roll out.

5.Performance Evaluation
23
• Project outcomes

• Business outcomes

• Implementation issues

• Poor planning

• Poor Integration

• Towards a solution

CHAPTER-III
3. COMPANY PROFILE
Retail industry largest industry, accounting for are 10% of the country’s GDP
and around 8% of the employment retail industry in India is at the cross roads. It has
emerged as one of the most dynamic and fast paced industry with several players
entering the market, but because of the heavy initial investment required break even is
difficult to achieve and many of these players have not tasted success so far.
However the future is promising; the market is growing, government policies
are becoming more favorable and emerging technologies are facilitating operations.
Retailing in India is gradually inching its way towards becoming the next boom
industry. The whole concept of shopping has altered in terms of format and consumer
buying behavior ushering in a revolution in shopping in India.
Modern retail has entered India as seen in sprawling shopping centers, multi
strayed malls and huge complexes after shopping, entertainment and food all under
one roof. The Indian retailing sector is at an inflexion point where the growth of
organized retailing and growth in the consumption by the Indian population is going

24
to take higher growth trajectory. The Indian population is witnessing a significant
change in its demographics.
A large young working population with average age of 24 years, nuclear
families in urban areas, along with increasing working women population and
emerging opportunities in the services sector are going to be the key growth drivers of
the organized retail sector in India

SOME KEY FACTS:

 Retail is India’s largest industry accounting for over 10% of the

country’s GDP and around 8% of the employment.
 The market size of the Indian retail industry is about US $312 billion.
 Retailing in India is gradually inching its way towards becoming the
next boom industry.
 A large young working population with average age of 24 years.

25
INDIA’S CONSUMPTION COSMOS

During the past decade, private final consumption expenditure has been the key driver
of economic growth in India.

Growth
domestic
product
$973billio
n

Capital
Governmen Formation
t $273 billion
Spending Private final (29%)
$108billion Consumptio
(11%) n
Expenditure
$592billion
(60%)

Utility payments
Fuel transportation Consumption
Electricity, water Spending
Communication $350 billion
Expenditure on
medical &
education
$242 billion

26
The $ 350 billion consumption spending provides the single biggest business
opportunities in India and is divided into same key categories led by food, fashion and
home products.

Fashion
Accessories Consumer
5.5% Durable
Fashion $225b 4%
9.5% $14b
$33.2b

Furniture
3.4%
$12b
Food
62%
Consumption
$217b
Spending
$350 billion

Health,
beauty
&pharmacy
Book & 3.8%
Music $13.3b
1.1%
$3.9b
Leisure&
Telecom
entertainme
1.8%
nt
$6.3b
7.9%
$28b

27
Source –central statistical organization advance estimates, 2007-08 images retail, mc
Kinsey & co.

INTRODUCTION TO BIG BAZAAR

 A chain of shopping malls in India currently with 31 outlets owned by Kishore

Biyani pantaloon group.
 Big bazaar is not just hyper market.
 Provides the best products at the best price.
 Reflects the look and feel of Indian bazaars at their modern’s outlets.
 Allover India, big bazaar attracts a few thousands customers on any regular
day.

MISSION AND VISION

Future group shall deliver every thing, every where, every time for every Indian
customer in the most profitable manner.
We share the vision and belief that our customers and stakeholders shall be
served only by creating and executing future scenarios in the consumption space
leading to economic development.

TARGET AUDIENCE

 Big bazaar targets higher and upper middle class customers.

 The large and growing young working population is a preferred customer
segment.
 Big bazaar specifically targets working women and home makers who are
the primary decision maker.

CAPTION OF BIGBAZAAR
Big bazaar – is se sasta aur accha kahin nahi
Type – subsidiary of pantaloon group

Founded – 2001
28
 Head quarters – Jogeshwari, Mumbai, India

Industry – retail

Products – department stores

Parents – future group

Website – http://www.bigbazaar.com

BOARD OF DIRECTORS

Mr. Kishore Biyani, Managing Director

Mr. Gopikishan Biyani, Whole time Director
Mr. Rakish Biyani, Whole time Director
Mr. Vijay Biyani, Whole time Director
Mr. Vijay Kumar Chopra, Independent Director
Mr. Shailesh Haribhakti, Independent Director
Mr. S Doreswamy, Independent Director
Dr. D O Koshy, Independent Director
Ms. Bala Deshpande, Independent Director
Mr. Anil Harish, Independent Director

MAJOR MILE STONES

1987
Company incorporated as Manz Wear Private Limited. Launch of Pantaloons trouser,
India’s first formal trouser brand.
1991
Launch of BARE, the Indian jeans brand.
1992
Initial public offer (IPO) was made in the month of May.
1994

29
The Pantaloon Shoppe – exclusive menswear store in franchisee format launched
across the nation. The company starts the distribution of branded garments through
multi-brand retail outlets across the nation.

1995
John Miller – Formal shirt brand launched.
1997
Company enters modern retail with the launch of the first 8000 square feet store,
Pantaloons in Kolkata.
2001
Three Big Bazaar stores launched within a span of 22 days in Kolkata, Bangalore and
Hyderabad.
2002
Food Bazaar, the supermarket chain is launched.
2004
Central - India’s first seamless mall is launched in Bangalore.
2005
Group moves beyond retail, acquires stakes in Galaxy Entertainment, Indus League
Clothing and Planet Retail. Sets up India’s first real estate investment fund Kshitij to
build a chain of shopping malls.
2006
Future Capital Holdings, the company’s financial is formed to manage over $1.5
billion in real estate, private equity and retail infrastructure funds. Plans forays into
retailing of consumer finance products. Home Town, a home building and
improvement products retail chain is launched along with consumer durables format,
Ezone and furniture chain, Furniture Bazaar. Future Group enters into joint venture
agreements to launch insurance products with Italian insurance major, generally.
Forms joint ventures with US office stationery retailer, Staples.

2007
Future Group crosses $1 billion turnover mark. Specialized companies in retail media,
logistics, IPR and brand development and retail-led technology services become
operational. Pantaloon Retail wins the International Retailer of the Year at US-based
National Retail Federation convention in New York and Emerging Retailer of the
30
Year award at the World Retail Congress held in Barcelona. Futurebazaar.com
becomes India’s most popular shopping portal.
2008
Future Capital Holdings becomes the second group company to make a successful
Initial Public Offering in the Indian capital markets. Big Bazaar crosses the 100-store
mark, marking one of the fastest ever expansion of a hypermarket format anywhere in
the world. Total operational retail space crosses 10 million square feet mark. Future
Group acquires rural retail chain, Aadhar present in 65 rural locations.

AWARDS & RECOGNITIONS

2009
CNBC Awaaz Consumer Awards 2009
Images Fashion Forum 2009
Coca-Cola Golden Spoon Awards 2009

2008

Indian 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

The Reid & Taylor Awards for Retail Excellence 2008

2007

Images Retail Awards

National Retail Federation Awards

World Retail Congress Awards

31
Hewitt Best Employers 2007

PC World Indian Website Awards

Reader’s Digest Trusted Brands Platinum Award

2006

Retail Asia Pacific Top 500 Awards

Asia money Awards

Ernst & Young Entrepreneur of the Year Award

CNBC Indian Business Leaders Awards

Images Retail Awards

Readers’ Digest Awards

CNBC Awaaz Consumer Awards

Reid & Taylor Awards for Retail Excellence

2005

DAKS London

2004

Images Retail Awards 2004

Reid & Taylor and DLF Awards

2003

Indian Express Award

32
DISTRIBUTION AND LOGISTICS ON BIG BAZAAR

DISTRIBUTION

1) It is one of the 4 Aspects of Marketing.

2) Traditionally distribution has been seen as dealing with to get the
Product or Service to the Customers.
3) It is done by distributor who is in the middleman between the
Manufacturer and Retailer.

LOGISTICS
1) It is the Art and Science of Managing and Controlling the flow of
Goods, Energy, Information and other Resources like Products,
Services and people from the source of Production to the Market
Place.
2) It’s important to have Professional logistical support.
3) The operating responsibility of logistics is the Geographical
repositioning of raw materials, work in process and finished
inventories where required at the lowest cost possible.

PROMOTION

1) Low prices on Wednesday

2) Concepts of Big days
3) Promotional Offers

SUPPLY CHAIN
A Supply Chain is a coordinated system of organizations, people, activities,
information and resources involved in moving a product or service in physical or
virtual manner from supplier to customer.

Supply chain activities transform raw materials and components into a finished
product that is delivered to the end of customer.

33
SUPPLY CHAIN MANAGEMENT

Factory

C&L Agent

Distributor

Large
Whole Modern
retailer
seller trade retailer

Small
retailer
SWOT ANALYSIS

STRENGTHS

 Better understanding of customers helping the company to serve them better.

34
  Vast range of products under one roof helping in attracting customer and their
family to shop together and enjoy the experience.
 Benefits of early into the retail industry.
 Diversified business operating allover India in various retail formats.
 Ability to get products from customer at discounted price due to the scale of
business.

WEAKNESS

 High cost of operation due to large fixed costs.

 Very thin margin.
 High attraction rate of employees.

OPPORTUNITIES

 Lot of potential in the rural market.

 Can enter into production of various products due to its in depth understanding
of customer’s tastes and preferences.
 Can expand the business in smaller cities as there is a lot of opportunity.

THREATS

 High business risk involved.

 Lot of competitions comings up to top the market potential.
 Margin of business reducing all the firms.

35
.

CHAPTER-IV
DATA ANALYSIS AND INTERPRETATION
1. Knowing about Big Bazaar through

Table – 1

PARTICULARS NO. OF RESPONDENTS % OF RESPONDENTS

By advertisement 54 54%

Friends & relatives 20 20%

Through word of mouth 26 26%

Total 100 100%

Graph - 1

36
ANALYSIS AND INTERPRETATION
From the above table and graph it is found that majority of the respondents i.e. 54%
got to know about BigBazaar through advertisements followed by word of mouth.

2. Frequency of Visiting Big bazaar

Table -2

PARTICULARS NO. OF RESPONDENTS % OF RESPONDENTS

Once in a Week 22 22%

Once in Fortnight 25 25%

Once in a month 53 53%

Total 100 100%

Graph - 2

ANALYSIS AND INTERPRETATION

37
From the above analysis it is found that majority of respondents i.e. 53% are visiting
once in a month for purchasing of daily essentials followed by 25% of the respondents
are visiting once in fortnight.

3. Receiving of customers by staff in Big bazaar

Table -3
PARTICULARS NO. OF RESPONDENTS % OF RESPONDENTS
Excellent 65 65%

Average 23 23%

Poor 10 10%

Worst 02 02%

Total 100 100%

Graph - 3

ANALYSIS AND INTERPRETATION

38
The above analysis shows that majority of respondents i.e. 56% were felt that the
receiving customer by staff of Big Bazaar is excellent and they were very happy. And
about 23% of the respondents felt that the receiving customer in the store is average.

39
 4. Communicating about offers and benefits to customers

Table -4
PARTICULARS NO. OF RESPONDENTS % OF RESPONDENTS
Yes 84 84%

No 16 16%

Total 100 100%

Graph - 4

ANALYSIS AND INTERPRETATION

From the above analysis it is concluded that majority of the respondents i.e. 84% felt that
Big Bazaar is communicating properly about the offers and benefits time to time to
benefits the customers to maintain long term relationship with them.

40
 5. Means of communication to customer about offers and benefits

Table -5
PARTICULARS NO. OF RESPONDENTS % OF RESPONDENTS
Orally 30 30%

Pamphlet 45 45%

Announcements 15 15%

All of these 10 10%

Total 100 100%

Graph - 5

ANALYSIS AND INTERPRETATION

From the above analysis it is found that majority of the respondents i.e. 45% said the store
is communicating through pamphlets about offers and benefits followed by oral
communication.

41
 6. Support of staff in locating products or items to the customer

Table -6

PARTICULARS NO. OF RESPONDENTS % OF RESPONDENTS

Yes 92 92%

No 08 08%

Total 100 100%

Graph - 6

ANALYSIS AND INTERPRETATION

It is found from the above analysis that majority of the respondents i.e. 92% said that
staff of Big Bazaar is very cooperative and helpful in the store and they are supportive
in locating the products which customer unable to find it .

42
 7. Communication about new arrivals and new offers

Table -7

PARTICULARS NO. OF RESPONDENTS % OF RESPONDENTS

Yes 75 75%

No 20 20%

Some times 05 05%

Total 100 100%

Graph -7

ANALYSIS AND INTERPRETATION

From the above table and graph it is found that the majority of the respondents i.e. 75%
opined that the store has undertaken initiative to communicate about new arrivals and
new offers to let know by customer for improving the sales.

43
 8. Means of Communication using by Big Bazaar to maintain
relationship with customers.
Table -8

PARTICULARS NO. OF RESPONDENTS % OF RESPONDENTS

Messages 30 30%

Paper Advertisements 65 65%

Phone Calls 05 05%

Total 100 100%

Graph – 8

ANALYSIS AND INTERPRETATION

From the above analysis it is observed that majority of the respondents i.e. 65% said
that the Big Bazaar is giving huge advertisement in popular news papers about
products and offers to attract customers and to strengthen relationships with them.

44
 9. Communication with regard to special occasions like festivals,
birthdays and wedding anniversaries.

Table -9

PARTICULARS NO. OF RESPONDENTS % OF RESPONDENTS

Yes 83 83%

No 17 17%

Total 100 100%

Graph – 9

ANALYSIS AND INTERPRETATION

The above analysis shows that majority of the respondents i.e. 83% positively said that
they are receiving the best wishes related messages during festivals, birthdays and
wedding anniversaries to wish them and to get in touch with them.

45
 10.Referring friends and relatives to Big Bazaar.

Table -10

PARTICULARS NO. OF RESPONDENTS % OF RESPONDENTS

Yes 95 95%

No 05 05%

Total 100 100%

Graph – 10

ANALYSIS AND INTERPRETATION

The above analysis shows that majority of the respondents i.e. 95% said they are referring
friends and their family members to Big Bazaar.

46
 11.Implementation of Reward Programme

Table -11

PARTICULARS NO. OF RESPONDENTS % OF RESPONDENTS

Yes 78 78%

No 22 22%

Total 100 100%

Graph – 11

ANALYSIS AND INTERPRETATION

The above analysis shows that majority of the respondents i.e. 78% said that the Big
Bazaar is implementing reward programmes to stimulate customers to purchase more
products to increase sales.

47
 12.Maintenance of proper relationship with customers

Table -12

PARTICULARS NO. OF RESPONDENTS % OF RESPONDENTS

Yes 88 88%

No 12 12%

Total 100 100%

Graph – 12

ANALYSIS AND INTERPRETATION

From the above analysis it is found that majority of the respondents i.e. 88% felt that the
Big Bazaar is maintaining proper relationship with customers to succeed in the business
in the long run.

48
 13.Preference of communication means to have relationship with
Big Bazaar

Table -13

PARTICULARS NO. OF RESPONDENTS % OF RESPONDENTS

Personal Calling 68 68%

Messages 21 21%

Emails 11 11%

Total 100 100%

Graph – 13

ANALYSIS AND INTERPRETATION

From the above analysis it is found that majority of the respondents i.e. 68% are prefer
personal calling as means of communication to maintain good relationship with stores.

49
 14.Unique benefits to customers being implemented by Big Bazaar
Table -14

PARTICULARS NO. OF RESPONDENTS % OF RESPONDENTS

Yes 96 96%

No 04 04%

Total 100 100%

Graph – 14

ANALYSIS AND INTERPRETATION

From the above analysis it is found that majority of the respondents i.e. 96% said that Big
Bazaar is implementing unique benefits programmes to customer for their satisfaction and
continuous relationship.

50
14a. If yes, what is that programme?
ANALYSIS AND INTERPRETATION

For the above question majority of the respondents i.e. 99% said that the unique reward
programme T24 is being implemented which is offering free talk time to customer based
on their purchases at store.

15.Are you finally happy with CRM program of Big Bazaar or not?
Table -15

PARTICULARS NO. OF RESPONDENTS % OF RESPONDENTS

Yes 81 81%

No 19 19%

Total 100 100%

Graph – 15

ANALYSIS AND INTERPRETATION

From the above analysis it is found that majority of the respondents i.e. 81% said that
finally they are very happy with CRM programme of Big Bazaar.

51
 CHAPTER-V
CONCLUSION, FINDINGS AND SUGGESTIONS
CONCLUSION

From the study on Customer Relationship Management in Big Bazaar it is understood

Customer Relationship Management is becoming imperative for organizations in this
competitive world especially the retail sector is facing severe competition in business
environment to maintain good relationship with customers for various reasons such as
to attract new customers, to retain existing customers, to increase sales volume by
stimulating them to purchase products. So as to compete with competitors Big Bazaar
also adopted various CRM initiatives to maintain strong relationship with customer
for long term business benefit. About 100 respondents were chosen to elicit data on
how the Big Bazaar is maintaining relationships with them. The study revealed that
the company is taking various initiatives such as giving pamphlets to customer
whenever they visit store to made known information to them about current offers and
benefits. It also sends messages and emails during festive seasons to strengthen
relationships with customers. Apart from these many other initiatives are taking to
improve the growth of the business. It is concluded that Big Bazaar is good at
Customer Relationship Management thereby the customers are very happy with CRM
process of Big Bazaar.

52
FINDINGS:

It is found that majority of the respondents got to know about Big Bazaar through
advertisements followed by word of mouth.

The analysis shows that majority of customers are visiting once in a month for
purchasing of daily essentials.

The study revealed that most of the customers were felt that the receiving customer by
staff of Big Bazaar is excellent and they were very happy.

It is concluded that majority of the respondents felt that Big Bazaar is communicating
properly about the offers and benefits time to time to benefits the customers to
maintain long term relationship with them.

The analysis of the study shows that majority of the respondents said the store is
communicating through pamphlets about offers and benefits followed by oral
communication.

It is found that majority of the respondents said that staff of Big Bazaar is very
cooperative and helpful in the store and they are supportive in locating the products
which customer unable to find it.

The analysis shows that the majority of the customers opined that the store has
undertaken initiative to communicate about new arrivals and new offers to customers
for improving the sales.

From the analysis it is observed that majority of the respondents said that the Big
Bazaar is giving huge advertisements in popular news papers about products and
offers to attract customers and to strengthen relationships with them.

53
The analysis shows that majority of the respondents positively said that they are
receiving the best wishes related messages during festivals, birthdays and wedding
anniversaries to wish them and to get in touch with them.

The analysis shows that majority of the respondents said that they are referring friends
and their family members to Big Bazaar.

The study shows that majority of the customers said that the Big Bazaar is
implementing reward programmes to stimulate customers to purchase more products
to increase sales.

From the analysis it is found that majority of the respondents felt that the
Big Bazaar is maintaining proper relationship with customers to succeed in the
business in the long run.

From the analysis it is found that majority of the respondents prefer personal calling
as means of communication to maintain good relationship with stores.

The analysis it is found that majority of the respondents said that Big Bazaar is
implementing unique benefits programmes to customer for their satisfaction and
continuous relationship.

Majority of the respondents said that the unique reward programme T24 is being
implemented which is offering free talk time to customer based on their purchases at
store.

From the analysis it is found that majority of the respondents said that finally they are
very happy with CRM programme of Big Bazaar.

54
SUGGESTIONS:

 Even though Big Bazaar is implementing some CRM practices still it

has to focus on some more unique programmes to attract more
customers.

 Personal calling is expecting by customers to have relationships so Big

Bazaar has to call personally to explain about new offers and benefits.

 Benefiting customers is more important than spending huge amounts

on Advertisements.

 Big Bazaar has to concentrate more on online business for the

convenience of the customers.

 Big Bazaar has to focus much on sending emails on the occasions of

birthdays and wedding anniversaries and special occasions to have
good relationships with customers.

55
 QUESTIONNAIRE

NAME:

ADDRESS:

DESIGNATION:

CONTACT NO. :

1 How did you get to know about Big Bazaar?

(a) By advertisement (b) Through Friends & relatives (c) Word of Mouth

2. How frequently you visit Big Bazaar?

(a) Once in a Month (b) Once in Fortnight (c) Once in a Week

3. How staff receiving you when you visit store?

(a) Excellent (b) Average (c) Poor (d) Worst

4. Are they communicating properly about latest offers and benefits?

(a) Yes (b) No

5. Incase they are communicating about offers and benefits, what among
the following means are using?
(a) Oral Communication (b) Pamphlets (c) Announcements
(d) All of these

6. Is there any initiative taken by staff to support you in locating any

product or item that needed?
(a)Yes (b)No

56
7. Does store has undertaken any initiative to communicate with you
about new arrivals and new offers?
(a)Yes (b) No

8. What are the modes of communication the store is using to maintain

relationship with you?
(a) Messages (b) Paper Advertisements (c) Phone Calls

9 Are you receiving any messages from store about special occasions like
festivals, birthdays and marriage days?
a) Yes b) No

10. Are you referring your friends or relatives to Big Bazaar?

a) Yes b) No

11. Is store implementing any reward programmes to stimulate you to

purchase more goods?
a) Yes b) No

12. Do you feel that the Big Bazaar is maintaining proper relationships with
you?
a) Yes b) No

13. To have better relationship with you, what kind of communication do you
prefer?
a) Personal Calling b) Messages c) Mails

14. Did you come across any unique benefit programme implementing in Big
Bazaar?
a) Yes b) No
If yes, what is that programme.
________________________________
15. Are you finally happy with the CRM program of Big Bazaar or Not?
a) Yes b) No

57
BIBLIOGRAPHY

1. Anton, Petouhoff (2002), “Customer Relationship Management (the bottom

line to optimizing your ROI)”, Prentice- Hall, New Delhi.
2. Arindam Banerjee, “Roadmap for successful CRM Implementation”, Indian
Management, July 2002.
3. Benjamin Appiah - Kubi & Andrews, K. D (2010): “Towards a successful
customer relationship management: A conceptual framework” African Journal
of Marketing Management ,Vol. 2(3) pp. 037-043.

4. Devesh, M, Madhurima, D., Kalyan Kumar & Gautam Sinha(2007):

“Customer Relationship Management (CRM) in context of food Marketing –
A Fuzzy Logic Approach” Indian journal of Marketing .
5. Dyche J., (2001) The CRM Handbook: A Business Guide to Customer
Relationship Management, 1st edition, Addison-Wesley Pub Co

6. Keith A. R, & Eli Jones(2008): “Customer relationship management: Finding

value drivers” Industrial Marketing management, vol. 37, 120–130.
7. Kenyon, J., & Vakola, M. (2001). Evolving the customer relationship
management paradigm in the retail industry. International Journal of Customer
Relationship Management, 3(4), 313- 332.
8. Kotler, P., (2002) Marketing Management, 11th edition, Prentice Hall
9. Prahalad, C. K., Katzenbach, (2002), Jon R., Harvard Business Review on
Customer Relationship Management (CRM), 1st edition, Harvard Business
School Press

WEBSITES

1. Bigbazaar.com

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