A

PROJECT REPORT
On

CUSTOMER RELATIONSHIP MANAGEMENT AT

BIG BAZAAR
In fulfillment of the requirements for
Masters in Business Administration (MBA)
(2011-2013)
SUBMITTED TO:

SUBMITTED BY:

Prof. Dr. Neena Sinha

Kirti Nidhi

(Internal Guide)

05616603911

GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY

CERTIFICATE

This is to certify that the work embodied in this Project Report has been carried out by Miss Kirti
Nidhi, student of USMS, Guru Gobind Singh Indraprastha University in the year 2013 in final
fulfillment of Masters in Business Administration (MBA). She has successfully completed the
project under my constant guidance and support.

Signature of the Project Guide

(Dr. Neena Sinha)

DECLARATION

hereby

declare

that

the

Project

report

titled

CUSTOMER

RELATIONSHIP

MANAGEMENT IN BIG BAZAAR is my original work. This has been undertaken for the
purpose of partial fulfillment of Masters in Business Administration (MBA) at Guru Gobind
Singh Indraprastha University.

Date:

Kirti Nidhi
05616603911

ACKNOWLEDGEMENT

It really is a matter of pleasure for me to get an opportunity to thank all the people who
have contributed directly or indirectly for the successful completion of my project report,
Customer Relationship Management in Big Bazaar.
Firstly, I would like to thank my College, USMS, Guru Gobind Singh Indraprastha
University for providing me with this opportunity and cooperating with me. I also express my
gratitude to my Project Mentor and Guide Prof. Dr. Neena Sinha for giving me the
encouragement and freedom to conduct my project.
I am also grateful to all my faculty members for their valuable guidance and support for
my entire study.
I am also thankful to Big Bazaar team for extending their valuable time and cooperation.

Kirti Nidhi
05616603911

CONTENTS
Chapter 1: Executive Summary
Chapter 2: Introduction
Overview of the Industry as a whole
Profile of the organization
Chapter 3: Objective of the Research
Chapter 4: Literature Review
Chapter 5: Conceptual Discussion
Chapter 6: Research Methodology
Chapter 7: Data Analysis
Chapter 8: Conclusion
Recommendations
Appendices
Bibliography

Chapter 1:

Executive Summary

This project report was commissioned to examine and evaluate both, the point of view of
the customers and that of the company and its employees towards the concept and practice of
Customer Relationship Management. The report seeks to examine the various parameters that
influence a buyer to visit or shop at Big Bazaar and what according to them is the major factor
which allures them back to make repeat purchases. The project also throws some light on the
various ways and the mechanisms that the Company undertakes to promote CRM.
The method of analysis includes the use of questionnaires, one for the customer and one
for the retailer. The questions were close ended and mostly measurable on the Likert Scale. The
Interpretation was done on the basis of the answers to the questionnaires and the analysis was
done using pie charts, line graphs and bar diagrams.
The key finding of the Project Report in regard to the point of view of the Customer was
that the main attraction of the place is availability of the huge variety of products ranging from
Clothing, Food items, Electronic Goods etc. Another very important point which came to light
was the various promotional activities undertaken by the Organization are working their magic in
attracting the customer and motivating them to make repeat purchases.
The finding with respect to the Organization is that the employees are well aware of the
concept of CRM and are trained to leave no stone unturned to help the customers and create a
friendly and comfortable shopping experience for them. The employees are well motivated to do
so because of the incentives related to the total number of sales made by them.
The recommendations are

Rewarding the customer for making references

Improved advertising and promotional efforts
Try to provide International Shopping experience
Creating more value for the customer

Chapter 2:

Introduction

OVERVIEW OF THE INDUSTRY AS WHOLE

The word retail means to sell or be sold directly to individuals. Retail is Indias largest
industry, and arguably the one with most impact on the population. It is countrys largest source
of employment after agriculture, has the deepest penetration to rural India, and generates more
than 10% of Indias GDP. However, retailing in India has so far, been mostly in the hand of small
disorganized entrepreneurs. It is also Indias least evolved industries. In fact, it is not even
considered a real industry. The industry suffers from lack of management talent, poor access to
capital, unfavorable regulation and denial of access to best practices. The Indian retail industry is
only now beginning to evolve in line with transformation that has swept other large economies.
India has almost 12 million retail outlets, but many of these act merely as subsistence
providers for their owners and survive on a cost structure where labor and land is assumed to be
free and taxes nil. Whereas, the global retail industry is one of the worlds largest organized
employers, is at the cutting edge of technology, and it leverages scale and scope to offer valueadded services to its customers.
However, only recently has there been an awakening in this sector, with more organized
retailers starting to make an impact. The liberalization of the consumer goods industry, initiated
in the mid-80s and accelerated through the 90s has begun to impact the structure and conduct of
the retail industry. Backed by changing consumer trends and metrics, liberalization in mindsets
driven by media, new opportunities and increasing wealth, retailing in India, presents a vast
opportunity for a variety of businesses - real estate, store design & operations, visual
merchandising logistics and communications, B2C service providers, and FMCG companies who
can add to their offers by partnering this revolution.
The Indian retail industry is now beginning to evolve in the line with the transformation
that has swept other large economies. It is one of the fastest growing sectors in the nation that
caters to the world's second largest consumer market. India has five million retailers with a
business volume of $180 million growing at 5 to 7 per cent a year. The middle class drives
retailing anywhere in the world and this segment should have reasonable income. The next driver
is availability of variety of goods, products and brands. The third one is sense of awareness.

The concept retail which includes the shopkeeper to customer interaction, has taken many
forms and dimensions, from the traditional retail outlet and street local market shops to upscale
multi brand outlets, especially stores or departmental stores. The objective being to assess the
various parameters that influences a buyer to visit or shop at departmental store thereby
contributing to its turnover (in terms of sales and profits) hence leading to its overall success.

Retail Marketing
Retail Marketing includes all the activities involved in selling the goods or services
directly to final consumes for personal and non-business use. Any organization selling to final
consumers - whether a manufacturer, wholesaler, or retailer is doing retailing. It does not
matter how the goods or services are sold (by Person, Mail, Telephone, Vending Machine, or
Internet) or where they are sold (in a store, on the street, or in the consumers home).
There are many approaches to understanding and defining retail marketing; most
emphasize retail marketing as the business activity of selling goods or services to the final
consumer, but what we emphasized upon is defined as follows:
Any business that directs its marketing efforts towards satisfying the final consumer
based upon the organization of selling goods and services as a means of distribution
The concept assumed within this definition is quite important. The final consumer within
the distribution chain is a key concept here as retailers are at the end of the chain and are
involved in a direct interface with the consumer.
A retailer or retail store is any business enterprise, whose sales volume comes primarily
from retailing. Retail organizations exhibit great variety and new forms keep emerging. There are
store retailers, non-store retailers, and retail organizations. Consumers today can shop for goods
and services in a wide variety of stores. The best-known type of retailer is the department store.
Japanese department stores such as Takashimaya and Mitsukoshi attract millions of shoppers
each year. These stores feature art galleries, cooking classes, and childrens playgrounds.
A retailer is at the end of the distributive channel. He provides goods and service to the
ultimate consumers. This he does through his small organization, with the help of a few
personnel. In an individual retail store there is not much scope for organization except in the
sense that the shopkeeper has to organize and apportion his time and resources. The need for
organization becomes essential as soon as he hires people and enters into partnership or takes the
help of members of his family in running his store. A retailer deals in an assortment of goods to

cater to the needs of consumers. His objective is to make maximum profit out of his enterprise.
With that end in view he has to pursue a policy to achieve his objective. This policy is
called retailing mix. A retailing mix is the package of goods and services that store offers to the
customers for sale. It is the combination of all efforts planned by the retailer and embodies the
adjustment of the retail store to the market environment: retailing mix, a communication mix and
a distribution mix. The maximum satisfaction to the customers is achieved by a proper blend of
all three.
The success of the retail stores, therefore, depends on customers reaction to the retailing
mix which influences the profits of the store, its volume of turnover, its share of the market, its
image and status and finally its survival.
There are three main phases in the life of a retailing institution. These are:

Innovation (Entry)

Trading Up

Vulnerability.
In the entry stage, a new retailer enters with new price appeal, limiting product offerings,

Sparton Stores & Limited services. Its monopoly power over the others is its price advantage,
which means that it offers products at low prices so as to get a competitive edge over its
competitors.
In the trading up stage, the retailer starts expanding. It expands in terms of product
offering, better services, and improved interiors. With all these, it starts charging a bit higher
prices.
In the vulnerability stage, there is a gap in the market leaving some space for the new
players to come in. this is due to increase in the prices by the retailer.

These stages are there in the life of a retail institution. But all these may not be
necessarily there in every retail institution. For instance, any retail institution targeting the upper
class may start itself with a large variety & high price.
This brings to broadly identify and categorize the types of retail marketing, which are
defined as follows:
1.

Store Retailing

2.

Non store Retailing

Types of Retail Marketing

Store Retailing: Store retailing provides consumers to shop for goods and services in a wide
variety of stores and it also help the Consumers to get all the needed goods and services from one
shop only. The different types of store retailing are given below:
Specialty Stores
These stores focus on leisure tastes of different individuals. They have a narrow product
line with deep assortment such as apparel stores, sporting goods stores, furniture stores, florists
and bookstores. These stores are usually expensive and satisfy the needs of selected consumers
who have liking or preference for exclusive things.
Departmental Store
These stores are usually built in large area and keep variety of goods under one shed. It is
usually divided into different sections like clothing, kids section, home furnishings, electronic
appliances and other household goods. In a departmental store a consumer can buy variety of
goods under one shed.
Supermarket
These stores are relatively large, low cost, low margin, high volume, self service
operations designed to serve total needs for food, laundry and household maintenance products.
Supermarkets earn an operating profit of only 1 percent on sales and 10percent on net worth.
Convenience Stores
These are relatively small stores located near residential area, open for long hours seven
days a week, and carrying a limited line of high turnover convenience products at slightly higher
prices than departmental stores. Many such stores also have added takeout sandwiches, coffee
and pastries.
Off - Price Retailer

These stores sell goods at low price with lower margins & higher volumes. These stores
sell goods with deteriorated quality. The defects are normally minor. This target at the persons
belonging to the lower income group, though some have a collection of imported goods aimed to
target the younger generation. The company owned showroom selling the seconds products is a
typical example of off - price retailer.
Discount Store
These stores sell standard merchandise at lower prices by accepting lower margins and
selling higher volumes. The use of occasional discounts or specials does not make a discount
store. A true discount store regularly sells its merchandise at lower prices, offering mostly
national brands, not inferior goods.
In recent years, many discount retailers have traded up. They have improved decor,
added new lines and services, and opened suburban branchesall of which has led to higher
costs and prices and as some department stores have cut their prices to compete with discounters.
Not only that, discount stores have moved beyond general merchandise into specialty
merchandise stores, such as discount sporting goods stores, electronics stores, and bookstores.

Trends in Retail Marketing

At this point, I can summarize the main development retailers and manufacturers need to
take into account as they plan their competitive strategies. In India the trends are mainly in three
sectors. These sectors are:

Urban

Suburban

Rural

New retail forms and combinations continually emerge. Bank branches and ATM
counters have opened in supermarkets. Gas stations include food stores that make more profit
than the gas operation. Bookstores feature coffee shops.
The electronic age has significantly increased the growth of non store retailing consumers
receive sales offers in the mail and over television, computers, and telephones, to which they can
immediately respond by calling a toll-free number or via computer.
Competition today is increasingly intertype, or between different types of store outlets.
Discount stores, catalog showrooms, and department stores all compete for the same consumers.
The competition between chain superstores and smaller independently owned stores has become
particularly heated. Because of their bulk buying power, chains get more favorable terms than
independents, and the chains large square footage allows them to put in cafes and bathrooms.
Todays retailers are moving toward one of two poles, operating either as mass
merchandisers or as specialty retailers. Superpower retailers are emerging. Through their
superior information systems and buying power, these giant retailers are able to offer strong price
savings. These retailers are using sophisticated marketing information and logistical systems to
deliver good service and immense volumes of product at appealing prices to masses of
consumers.
Many retailers are even telling the most powerful manufacturers what to make; how to
price and promote; when and how to ship; and even how to reorganize and improve production
and management. Manufacturers have little choice: They stand to lose 10 to 30 percent of the
market if they refuse.

Technology is becoming critical as a competitive tool. Retailers are using computers to

produce better forecasts, control inventory costs, order electronically from suppliers, send e-mail
between stores, and even sell to customers within stores. They are adopting checkout scanning
systems, electronic funds transfer, and improved merchandise-handling systems.

Retail Marketing In India

There are various ways of marketing goods available to consumers like:

Company to distributor to wholesaler to retailer to consumer

Company to salesperson to consumer

Company to consumers (online/ phone/ catalog ordering)

These three are among the most common ways of making the goods available to
consumers. But in India the three layered system of distributor, wholesaler and retailer, forms the
backbone of the front-end logistics of most of the consumer-goods companies.
There are a number of reasons behind this fragmented retail market. Some of the major
reasons being:
Poverty and lower literacy levels.
Low per capita income.
Savings focused and less indulgence mindset.
Poor infrastructure facilities like roads etc.
High taxes and high import duties on imported goods.

PROFILE OF THE ORGANIZATION

Pantaloon Retail (India) Limited, is Indias leading retailer that operates multiple retail
formats in both the value and lifestyle segment of the Indian consumer marker. Headquartered in
Mumbai (Bombay), the company operates over 5 million square feet of retail space, has over 450
stores across 40 cities in India and employs over 18,000 people.
The companys leading formats include Pantaloons, a chain of fashion outlets, Big
Bazaar, a uniquely Indian hypermarket chain, Food Bazaar, a supermarket chain, blends the look,
touch and feel of Indian bazaars with aspects of modern retail like choice, convenience and
quality and Central, a chain of seamless destination malls. Some of its other formats include,
Depot, Shoe Factory, Brand Factory, Blue Sky, Fashion Station. The company also operates an
online portal, futurebazaar.com.
As customers tastes and preferences are changing, the market scenario is also changing
from time to time. It is the changing tastes and preference of customer which has bought in a
change in the market. Income level of the people has changed. New generation people are no
more dependent on haat market and far off departmental stores. Today we can see a new era in
market with the opening up of many departmental stores, hyper market, shoppers stop, malls,
branded retail outlets and specialty stores. My study is based on a survey done on customers of a
hypermarket named big bazaar. Big bazaar is a new type of market which came into existence in
India since 1994. It is owned by pantaloon retail India Ltd. It is a type of market where various
kinds of products are available under one roof.

COMPANY PROFILE
BIG BAZAAR
Big Bazaar is a chain of hypermarkets in India, with more than 100 stores in operation. It is a
subsidiary of Future Group Venture Ltd's, and follows the business model of United States-based
Wal-Mart. Facilities offered by Big Bazaar Online shopping: Big Bazaar has an official website,
FutureBazaar.com, which is one of the most favorite sites among people of India for online
shopping. Future Bazaar is an online business venture of Future Group, which sells an
assortment of products such as fashion, which includes merchandise for men and women, mobile
accessories, mobile handsets and electronics like home theatres, video cameras, digital camera,
LCD TVs, kitchen appliances and many more.
Discounts: Hfte ka sabse sasta din was introduced by the Big Bazaar, wherein extra and
special discounts were offered on Wednesday every week, to attract the potential buyers
into their store.
Security check: At each exit of Big Bazaar, they use alarm systems or Electronic Article
Surveillance system, which detects the products that has attached tags or not.
1. Big Bazaar is a chain of hypermarket in India, which caters to every familys needs and
requirements.
2. Big Bazaar has released the doors for the fashion world, general merchandise like sports
goods, cutlery, crockery, utensils, and home furnishings etc. at best economical prices.
3. Big Bazaar group offers more than 100 stores all over the country with an amalgamation of
Indian bazaars feel and touch with a convenience and choice of the modern retail facilities
4. The worldwide country chain, Big Bazaar, is formed by CEO of Future Group, Mr. Kishore
Biyani. Their basic attraction associated with reasonable prices is their Unique Selling Price.
5. Big Bazaar has become a massive hit with lower middle class and middle class people as a
major client base.
6. Reflect the look and feel of Indian bazaars at their modern outlets.

GROUP VISION
To deliver Everything, Everywhere, Every time to Every Indian Consumer in the most
profitable manner.

GROUP MISSION
1 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.
2 We will be the trendsetters in evolving delivery formats, creating retail realty, making
consumption affordable for all customer segments for classes and for masses.
3 We shall infuse Indian brands with confused and renewed ambition
4 We shall be efficient and cost-conscious and committed to quality in whatever we do.

Board of Directors
1. Managing director
Mr. Kishore Biyani
2. Wholetime Director
Mr. Gopikishan Biyani
Mr. Rakesh Biyani
3. Director
Mr. Shailesh Haribhakti
Mr. S.Doreswamy
Mr. Darlie Koshy
Mr. Anil Harish
Ms. Bala Deshpande
Mr. Vijay Kumar Chopra

BIG BAZAAR SUPER CENTER

Big Bazaar
Outlet
Parent Group
Owner
Founded
Head Quarter
Industry
Tagline

Hyper mart chain in India

214 Outlets
Future Group
Kishore biyani
2001
Jogeshwari, Mumbai
Retail
Naye India ka Bazaar

SWOT Analysis of Big Bazaar

Strengths

Prime location
Emphasis on providing total customer satisfaction
Large floor space allowing for better visual merchandising
Large area also allows to stock a large variety of products under one roof
Experienced and competent marketing team executive staff
Brand equity
Large scale operations in various cities throughout the country allows them to reap the
benefits of economies of scale

Weakness
Large scale of operations sometimes acts as a barrier to personalized customer relations
Large scale operations lead to reduced flexibility by increasing the amount of overheads
and a huge commitment in terms of fixed costs
A large organization structure leads to delayed decisions. This can prove fatal for a
business in the dynamic fashion industry. Mumbai, this fact sometimes results in delayed
decisions in adapting to changing market trends
Opportunities
Apart from the metros, cities like Ahmadabad, Pune, Lucknow, Indore and Coimbatore
have shown substantial retail presence. Most sport modern retail formats like
supermarkets, department stores and specialty chains. These markets are expected to
show exponential growth in the next few years. Thus Food Bazaar has the opportunity to
explore new markets
According to the Consumer Outlook study, consumers are generally satisfied with the
service that organized retailers extend to them. More importantly, they are increasingly
regarding these organized retailers as providing `value-for-money. These findings
indicate that large retailers will capture most of the higher consumer spending
Increasing penetration of the internet into Indian homes has provided Big Bazaar Mall to
break the geographical barriers and to increase their customer base. The entry into online
retailing, would, in fact, expand the product categories available to the consumer
Threats:

 The time when retailers had to worry about competition only from their peers down the
street has come to an end. Big Bazaar is now facing increased competition in the form of
international retail chains that are making a beeline towards the highly potential Indian
markets.

Chapter 3:

Objectives of the
Research

 To understand and identify the Customer Relationship Management Practices followed

by Big Bazaar.
To study the various CRM techniques adopted by Big Bazaar.
To study the benefits of CRM to customers and retailers.
To study the various reasons which attracts customers to shop and visit the same place
again and again.

Scope of the Study

The study gives us an idea about the various methods of practicing CRM
It also provides us with an insight into the various benefits for both the customer as well
as the organization
It helps us to find the various reasons which motivate customers to make purchase or
even visit the store regularly.

Limitations to the study

Though the data collected is accurate and the research conducted is best as per
knowledge, but there were some limitations which were not been overcome even after using
precautionary measures. Hope these limitations will not affect to the conclusions drawn through
the means of this project report. These limitations are:
Time was not sufficient to collect complete information and to check the accuracy of the
information.
Sample selected were random.
The study is limited to the geographical area of New Delhi, therefore it cannot be
generalized.
The information provided by sample selected may be biased.
Some of the questions have been wrongly interpreted by the respondents.
Few respondents were not serious and hostile enough to fill up the complete
questionnaire, thus the response may not represent the correct picture.

Chapter 4:

Literature Review

 Patel, Deval B. (October 2012). A case study on Customer Relationship Management at

Big Bazaar in Surat city. Indian Journal of Research, ISSN-2250-1991
Customer relationship management (CRM) can help organizations to manage
customer interactions more effectively to maintain competitiveness in the present
economy. As more and more organizations realize the significance of becoming
customer-centric in todays competitive era, they adopted CRM as a core business
strategy and invested heavily. CRM provides long-term relationship building with
customers at an enterprise-wide level. Successful CRM implementation is a complex,
expensive. This paper presents the successful implementation of CRM for Big Bazaar at
Surat and how they are managing good relation with customers in different segments.
This study will aid in understanding of customer relationship management CRM in Big
Bazaar at Surat
Mathur, Dr. Meera.& Samma, Sumbul. A study on Consumer Relationship Management
Practices in Selected Organized Retail Stores in Udaipur City. Pacific Business Review
Retailing is the largest private industry in the world. It is also India's largest
industry accounting for over 10% of the country's GDP and around 8% of the
employment. Customer relationship management is an emerging tool that enables
marketers to maintain their presence in the dynamic marketing environment. In the city
like Udaipur these organized retail store and firms are concentrating and targeting the
consumer from the different segments like rural, urban, low, middle and high income
segments etc. The research paper attempts to evaluate the CRM practices of the retail
stores in Udaipur city. CRM is highly exercised in the industry like hospitality, services
industry etc. but it is having equal importance in the retail industry also. The results of
this research paper shows that the customers don't take a single second when it comes to
change the preference and break the loyalty for an organization, in such a situation it the
CRM of the organization which will compel the customers to visit the retail outlet again
and again.

 Vyas, Preeta H. & Sinha, Piyush K. (December 2008) Loyalty Programmes: Practices,
Avenues and Challenges. Indian Institute of Management Research and Publications.
Complexity of modern business requires managers to strive for innovative
strategies to acquire and retain customers in any product market field. As acquiring new
customers is getting costlier day by day, business organizations have offered
continuity/loyalty programmes to retain/reward existing customers and maintain
relationships. The premise of CRM is that once a customer is locked in, it will be
advantageous to both the organization as well as customer to maintain relationships and
would be a win-win situation for both. Consumers find it beneficial to join such
programmes to earn rewards for staying loyal. Through loyalty programmes, firms can
potentially gain more repeat business, get opportunity to cross-sell and obtain rich
customer data for future CRM efforts (Yuping Liu, 2007)
This paper, exploratory in nature, attempts to provide a conceptual overview of Loyalty
in organized retail sector, outlines practices of grocery retail outlets in Ahmedabad, the
largest city in the state of Gujarat and the seventh-largest urban agglomeration in India,
with a population of 56 lakh (5.6 million). It also throws light on consumer expectations,
perceptions and problems faced through in-depth exploration. Based on literature review
and environment in India, anemerging economy, it attempts to predict future of such
programmes specifically in Indian organized retail sector and discusses managerial
challenges of managing loyalty programmes and provides agenda for future research
directions

Chapter 5:

Conceptual Discussion

CRM in Retail Marketing

Customer relationship activities have the most impact on customer retention. Every
customer service encounter has the potential to gain repeat business or have the opposite effect.
The expectation of personalized, relevant offers and service is becoming a primary driver of
customer satisfaction and retention in financial services.

What Exactly Is CRM?

The first thing you find when looking into the world of Customer Relationship
Management is the number of different definitions in use today.
Here is the one I have chosen for this Project:

"CRM is the business strategy that aims to understand, anticipate, manage and
personalize the needs of an organization's current and potential customers" -- PWC

Consulting.
CRM is a business strategy, one that puts the customer at the heart of the business.

Good business people have always understood the relationship between happy customers that
come back again and again and creating long term, sustainable profitability. Big Bazaar has
realized this and applied this to effect. One just needs to think of the local shop owner who knew
everyone of his customers names, birthdays and particular ailments to prove that point. What is
new is that there now exists the technology to enable this customer-centricity on a much larger
scale. (Come To Big Bazaar- Isse Sasta Aur Achha Kahin Nahin)

It is said that a successful CRM implementation will allow your Customer Service, Sales
and Marketing people (and anyone else in your organization) to have a holistic view of each and
every one of your customers. In theory this will enable them to make quick, informed decisions,
create cross selling and up selling opportunities, measure marketing effectiveness and deliver
personalized Customer Care. Sounds great doesnt it!!!

Advantages of CRM for Big Bazaar

Using CRM, at the management of Big Bazaar can:

Provide better customer service

Increase customer revenues
Discover new customers
Cross sell/Up Sell products more effectively
Help sales staff close deals faster
Make call centers more efficient
Simplify marketing and sales processes
By applying this methodology Big Bazaar learned more about customers' needs and

behaviors in order to develop stronger relationships with them. They implemented CRM as a
process that brought together lots of pieces of information about customers, sales, marketing
effectiveness, and responsiveness and market trends.
CRM helps businesses use technology and human resources to gain insight into the
behavior of customers and the value of those customers.

Challenges for Big Bazaar in CRM implementation:

Difficulty in acquiring new customers can be a result of any one, or combination, of the
following problems.

Inaccurate and Slow Quoting Organizations may be unable to accurately estimate and
quickly deliver successful proposals, often leading to missed opportunities, bad profit

margins and upset prospects.

Lack of Product Knowledge Within their Sales Force
Problems can arise when products were sold that didnt fit company's profitability
strategy such as selling a customer one product when another would be better for the

customer and more profitable for you.

Difficulty and Delay in Updating Pricing and Product Information
When the sales force relies on incomplete product, pricing and customer information,

then they are probably not selling the most profitable products you offer.
Customers prefer a combination of differing channels in which to deal with your
company. Self-service on the web can even be done for complex products. Plus, selfservice on the web offers retail banks the opportunity to shift cost out to the customer.

Relationship Marketing

Relationship marketing was first defined as a form of marketing developed from direct
response marketing campaigns which emphasizes customer retention and satisfaction, rather than
a dominant focus on sales transactions.
As a practice, relationship marketing differs from other forms of marketing in that it
recognizes the long term value of customer relationships and extends communication beyond
intrusive advertising and sales promotional messages.

Chapter 6:

Research Methodology

The procedure adopted for conducting the research requires a lot of attention as it has
direct bearing on accuracy, reliability and adequacy of results obtained. It is due to this reason
that research methodology, which we used at the time of conducting the research, needs to be
elaborated upon. Research Methodology is a way to systematically study & solve the research
problems. If a researcher wants to claim his study as a good study, he must clearly state the
methodology adopted in conducting the research so that it may be judged by the reader whether
the methodology of work done is sound or not.

The research method here includes:a)

Research Design

b)

Data Source

c)

Type of Questionnaire

d)

Type of Question

e)

Sample unit

f)

Method of Collection

g)

Analytical Tool

h)

Data Collection Area

i)

Analysis and Interpretation of Data

a) Research Design
A research design is the arrangement of conditions for collection and analysis of data in
a manner that aims to combine relevance to the research purpose with economy in procedure.
Research design is the conceptual structure within which research is conducted. The research
design that I prepared constitutes the blue print for the collection measurement and analysis
of data. It includes an outline of what I would do from writing the hypothesis and its
operational implications to the final analysis of data.
A research design is a framework for the study and used as a guide in collecting and
analyzing the data. It is a strategy specifying which approach will be used for gathering and
analyzing the data. It also includes the time and cost budget since most studies are done under
these two constraints.
Research design can be categorized as:

Exploratory research- Exploratory research provides insights into and comprehension of an

issue or situation. It should draw definitive conclusions only with extreme caution. Exploratory
research is a type of research conducted because a problem has not been clearly defined.

Descriptive research-Descriptive research, also known as statistical research, describes

data and characteristics about the population or phenomenon being studied. Descriptive research
answers the questions who, what, where, when and how.

Experimental research- Experiments is the step in the scientific method that arbitrates

between competing models or hypotheses. Experimentation is also used to test existing theories or
new hypotheses in order to support them or disprove them. An experiment or test can be carried
out using the scientific method to answer a question or investigate a problem.

b) Type of Research
Causal Research
When most people think of scientific experimentation, research on cause and effect is
most often brought to mind. Experiments on causal relationships investigate the effect of one or
more variables on one or more outcome variables. This type of research also determines if one
variable causes another variable to occur or change. An example of this type of research would
be altering the amount of a treatment and measuring the effect on study participants.
Descriptive Research
Descriptive research seeks to depict what already exists in a group or population. An
example of this type of research would be an opinion poll to determine which Presidential
candidate people plan to vote for in the next election. Descriptive studies do not seek to measure
the effect of a variable; they seek only to describe.
Relational Research
A study that investigates the connection between two or more variables is considered
relational research. The variables that are compared are generally already present in the group or
population. For example, a study that looked at the proportion of males and females that would
purchase either a classical CD or a jazz CD would be studying the relationship between gender
and music preference.
Empirical Research
This research was empirical kind of research since we were dealing with the
behavioral or qualitative aspect of custo mers and not the quant itative datas.
Here we were not supported with any external data nor were adopting any secondary data to do
our research

c) Data Source
Broadly there are two types of data:
i) Primary data
ii) Secondary data
Primary data are generated in a study specifically designed to accommodate the data needs
of the problem at hand.
Secondary data means the statistics not gathered for the immediate study at hand but for
some other data. It is the data collected by someone for purposes other than solving the problem
being investigated.
Both these methods have been adopted in this study of mine.

d) Type of Questionnaire
Two different questionnaires were used. One was to be filled by the customer and the other
one was meant to be filled by the retailers. Questionnaire used in this study is structured and
disguised in close ended form.

e) Sampling Design
Sampling is necessary because it is almost impossible to examine the entire parent
population (i.e. the entire universe) various factors such as time available, cost, purpose of study
etc. make it necessary for the researchers to choose a sample. It should neither be too small nor
too big. It should be manageable.
The sample chosen in this study were the people visiting the store and the retailers or
the sales people assisting the customers.
Sample Size- 100 Customers and 50 Sales People

f) Analytical Tool
The data is analyzed and interpreted by pie charts, bar diagrams and through the medium of
other charts.

g) Data Collection Area

It was confined to geographical boundaries of New Delhi.

h) Analysis and Interpretation of Data

The data collected in the aforesaid manner have been tabulated in condensed form to
draw the meaningful result.
All the data and the material is arranged through internal resources and the last part of the
project consist of the conclusions drawn from the report and recommendations and giving the
final touch to the reports by stating a conclusion.

Chapter 7:

Data Analysis

Questionnaire on Customer Relationship Management

(For the Customers)
Ques 1) The sales persons assistance at Big Bazaar is just enough to make me feel wanted and at
home.

Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree

Interpretation:
As we can see from the pie chart, most of the respondents agree to the fact that the Seles people
at Big Bazaar are helpful but not pursuing, giving us the idea that the customers feel at home
while shopping and are not being forced into buying products due to the Sales person are
obstinate.

Ques 2) Big Bazaar has always lived up to my expectations as a customer.

50
45
40
35
30
25
20
15
10
5
0
Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

Interpretation:
Big Bazaar has always maintained their reputation by providing all that they have promised and
often by surprising the customers with discounts and offers no one had thought would be
possible. It comes as no surprise that most of the customers are happy with the services and also
the products available at Big Bazaar.

Ques 3) The Payback Loyalty Program and other credit cards issued by the Big Bazaar are very
useful for me.

40
35
30
25
20
15
10
5
0
Strongly Agree

Agree

Neutral

Disagree Astrongly Disagree

Interpretation:
Various cards are available at Big Bazaar, including the Payback Loyalty Program and Shakti
Cards. The customers can avail to these cards as per their need. But according to the data
collected here, majority of the customers are neutral to the usefulness of these cards. More than
25 people find it useful but on the other hand, almost 25 customers do not find it useful.

Ques 4) The discounts and offers provided by Big Bazaar plays a major role in my coming back
to shop at Big Bazaar.

80
70
60
50
40
30
20
10
0
Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

Interpretation:
According to the data collected, 74 respondents say that they shop at Big Bazaar because of the
discounts and offers available to them at Big Bazaar. The major point to note here is that no
respondent said that it is not a major motivational factor while shopping at Big Bazaar.

Ques 5) The theme setting, layout and product arrangement is pleasing and facilitates access to
the products.

Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree
0

10

15

20

25

30

35

40

Interpretation:
The layout, theme setting and product arrangement at Big Bazaar is not of an outstanding level
and hence, as we can see from the diagram here, most of the customers are neutral to it. Finding
products that they are looking for is not that easy despite the layout and product display. Almost
45 respondents agree that the layout was helpful and rest of them were against the statement.

Ques 6) Big Bazaar store is located not so far away from where I live.

40
35
30
25
20
15
10
5
0
Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

Interpretation:
This question seeks to learn that whether the Big Bazaar Stores were covering all the prospective
markets or were they just clustered around at one place. According to the responses received, the
Big Bazaar team has done a remarkable job and is present at all the prime locations. Hence, the
consumers are not worried about travelling long distances just for shopping at Big Bazaar.

Ques 7: My grievance is always aptly handled by the Customer Care Executive at Big Bazaar.

Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree

Interpretation:
Almost 40 respondents are neutral to the grievance handling system at Big Bazaar indicating that
they have never encountered a problem with the services and even if they have, it was not grave
enough to report it. 19 respondents disagree to this statement showing that their problem was not
solved as per their expectations. Other respondents agreed to the statement which proves that the
Customer Care executives are not completely incompetent.

Ques 8) I prefer Big Bazaar over its competitors most of the time.

Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree

Interpretation:
Luckily for Big Bazaar, more than half of the respondents actually prefer them over their
competitors. Still there is a scope of improvement because there are still people who need to be
converted into loyal customers.

Ques 9) My favorite scheme at Big Bazaar is:

45
40
35
30
25
20
15
10
5
0

Interpretation:
The Wednesday Bazaar was started as an initiative to lure more customers to the Bazaar in the
middle of the week and now, according to this study, it is the most popular scheme by big
bazaar.Maha Bachat and Sabse Sasta din follow shortly after showing that these days are the
most sought after days of discount at Big Bazaar.

Ques 10) The most important service being provided by the Big Bazaar is:

Customer helpline & helpdesk

Car Parking

Home Delivery for Electronic items

Baggage Counter

One-Stop Shop
0

10

20

30

40

50

60

Interpretation:
As we can clearly see, the most important service being provided by Big Bazaar is that it
provides One-Stop Shopping experience to its customers. They can come to a Big Bazaar outlet
and shop for all their necessities rather than visiting different shops for different products.
Another services which are popular are the Customer helpline and helpdesk and Baggage counter
which provides them with an option to safely keep their belongings away.

Questionnaire on Customer Relationship Management

(For the Retailers)
1) What according to you is the most important criterion for selection of the Store Assistant?

20
18
16
14
12
10
8
6
4
2
0

Interpretation:

This question was asked to the sales persons with an objective to ascertain what factor do they
consider to be the most important in a salesperson approach. It is evident that the Commitment
towards the customer is the first and foremost quality that is considered. Another quality that
follows soon after is the personality of the salespersons because they are going to be the face of
the company. 2) Do you think proper training is required by the sales staff to serve the
customer in the best way possible?

Yes
No

Interpretation:
38 out of 50 respondents say that sales people require proper training to handle the customer with
proper care and commitment because at times, the customers can be irate or just irritated and
they need to be taken care of in the best manner they can.

3) Does attending to the customer and personally communicating with them impact CRM?

No

Yes

Interpretation:

10

15

20

25

30

35

40

45

41 out of 50 respondents answered with a yes to this question showing that they are clear in their
concept of CRM. And know that the customers are the most important part of the business.4)
According to you, is CRM really important in Sales?

Yes
No

Interpretation:

This question was incorporated to test the knowledge of the sales executive and see how far are
they trained to know and realize what is important to the company and its sales. As we can see,
all of them gave a positive answer, giving us an idea about the great training they must have
received.5) Do the scheme and discounts provided by the company help to maintain CRM?

45
40
35
30
25
20
15
10
5
0
Yes

Interpretation:

No

Some of the respondents think that the loyalty of the customers towards a brand and the quality
of products being provided by the company while the others said that they were sure that the
offers and discounts were the major reason which helps in maintaining CRM.6) When Customers
register complains, the grievance handling procedure makes sure to attend to it and give a
response in a limited period of time?

60
50
40
30
20
10
0
Yes

Interpretation:

No

The time frame within which the queries and complaints are to be solved at Big Bazaar is 24
hours. However, from the customers questionnaire, we found out that all of them were not
satisfied and hence wanted to know the side of the staff at Big Bazaar. All of the answers
received were positive showing that every necessary step is being taken to make sure that the
problems are being solved. 7) What according to you is the most important factor in the
retention of the customers at Big Bazaar?

25
20
15
10
5
0

Interpretation:
There are various factors except the discounts and schemes being provided at a store to maintain
a relation with the customers. The most preferred one at Big Bazaar is the availability of various
kinds of products. The one following closely is Electronic Billing system which helps the
customers to get their product billed quickly. Others are the Easy Grievance handling system and
the ambience of the store.

8) How do you seek to maintain Customer Gratification?

Weekend Special Events

Gift Vouchers to Future
Group Members
Exchange Offer

Interpretation:

It is very important to maintain the customer gratification through various measures. Here, in
care of Big Bazaar, those factors are the weekend special events, gift vouchers and exchange
offers.9) What are the different practices of CRM that are being followed in Big Bazaar?

Easy and Fast Complaint Handling Procedure

Differentiating Customers according to their needs

Conducting Customer Profitability Analysis

Forming Databases

10

15

20

25

Interpretation:
According to the Sales staff of Big Bazaar, there are various factors which help practicing CRM.
They are easy and fast complaint handling, differentiating customers based on their needs,
conducting customer profitability analysis and forming databases which help them to maintain a
friendly relation with their customers.

10) What is the major reason for Customer Dissatisfaction?

Unmanned Billing Desks

Ignorant Staff
Clustered Aisles
Slow Complaint Handling

Interpretation:
Despite the various factors which are being kept in mind to maintain customer relationships,
there are reasons which may cause dissatisfaction among the customers. These are unmanned
billing desks, ignorant staff, and clustered aisles and slow complaint handling.

Chapter 8:

Findings and
Conclusion

FINDINGS:
The study was conducted to understand the Customer Relationship Management as a concept
and also how is it implemented in the retail sector using Big Bazaar. After the results were
collected and analyzed, the following statements could be held true:
The customers are content with the services provided by Big Bazaar.
The behavior of the Sales staff is helpful and well trained.
The various Cards issued at Big Bazaar is a good initiative but needs more advertising to
let the customers know of its benefit.
The Discounts and Schemes provided by the Big Bazaar team is one of the major
motivational factors behind the recurring shopping habits of customers.
Big Bazaar is generally preferred over other mega marts because of it various services.
The Sales staff is well-trained and understands the concept and importance of CRM.
The Sales staff seeks to maintain customer gratification and leave no stone unturned to
achieve that.
They are well aware of the various factors which can create dissatisfaction among
customers and try to avoid the situations as far as possible

CONCLUSIONS:
The various Customer Relationship Management Practices being followed at Big Bazaar
are:
easy and fast complaint handling,
differentiating customers based on their needs,
conducting customer profitability analysis and
forming databases
There are various reasons because of which the customers like to shop at Big Bazaar time
and again. They are:
Discounts and Schemes
Payback loyalty program and availability of other credit cards
One-Stop shopping experience
The benefits of CRM are:
Revenue and profit enhancement
Cost savings and reduction

RECOMMENDATIONS

1) Convert your customers into publicity agents. Develop an incentive for them to tell
associates and friends about the value of your products or services. An endorsement from
them is more effective than any amount of advertising - and it is much cheaper.
2) Surprise your customers with unexpected value. If you sell products, include an
"unadvertised bonus" with every order. If you sell services, get into the habit of doing
something extra for every customer or client without charging for it.
3) Reward them each time they refer someone who becomes a customer. Your reward can be
as simple as a credit toward their next order from you.
4) Schemes: In store Promotions: The people visiting the store should be encouraged to visit
the store again and again. So it is necessary to delight the shoppers with the shopping
experience.
5) It is really important to look into the grievance handling system. If the problems of the
customers are not handled properly, it might result in dissatisfaction. The complaint should
be addressed with utmost importance.

APPENDICES

Questionnaire about Customer Relationship Management

(For the customers)

Sr.

Questions

No.

Strongly
Agree

1 The sales persons assistance at Big

Bazaar is just enough to make me
feel wanted and at home.
2 Big Bazaar has always lived up to
my expectations as a customer.
3 The Payback Loyalty Program and
other credit cards issued by the Big
Bazaar are very useful for me.
4 The discounts and offers provided
by Big Bazaar plays a major role in
my coming back to shop at Big
Bazaar.
5 The theme setting, layout and
product arrangement is pleasing and
facilitates access to the products.
6 Big Bazaar store is located not so
far away from where I live.
7 My grievance is always aptly
handled by the Customer Care
Executive at Big Bazaar.

Agree

Neutral

Disagree

Strongly
Disagree

8 I

prefer

Big

Bazaar

over

its

competitors most of the time.

9 My favorite scheme

Exchang

Sabse

Wednesda Monthly

Maha

Sasta

y Bazaar

Budget

Bachat

Offer
One-

Din
Baggag

Home

Buyer
Car

Customer

service being

Stop

delivery

Parking

helpline

provided by the Big

Shop

counter

for

and help

electronic

desk

at Big Bazaar is:

10 The most important

Bazaar is:

goods

Name:
Age:
Gender:

Questionnaire on Customer Relationship Management

(For the Retailers)
1) What according to you is the most important criteria for selection of the Store Assistant?
Pleasing personality
Good Communication Skill
Team Work
Commitment towards the Customer
2) Do you think proper training is required by the sales staff to serve the customer in the
best way possible?
Yes
No
3) Does attending to the customer and personally communicating with them impact CRM??
Yes
No
4) According to you, is CRM really important in Sales?
Yes
No
5) Do the scheme and discounts provided by the company help to maintain CRM?
Yes
No
6) When Customers register complains, the grievance handling procedure makes sure to
attend to it and give a response in a limited period of time?
Yes
No
7) What according to you is the most important factor in the retention of the customers?
_______________________________
_______________________________
_______________________________
8) How do you seek to maintain Customer Gratification?
_______________________________
_______________________________
_______________________________
9) What are the different practices of CRM that are being followed in Big Bazaar?

 _______________________________
_______________________________
_______________________________
10) Which among the following is the major reason for Customer Dissatisfaction?
_______________________________
_______________________________
_______________________________
Name:
Age:
Gender:

Bibliography
Books:
Marketing Management

Philip Kotlar

Research Methodology
C. R. Kothari
Retail Marketing
J.A.Lamba
Customer Relationship Management
Jagdish and Seth
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