crm retail big bazaar ( india ) case study
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CRM in RetailCase Study : Big Bazaar
SIBM–Pune - EPGDBM2010-11 .
Subject :Customer Relationship Management.Presented By :
Abhijit Malankar ( Roll - AV 102 )Email - abhiam1@gmail.com
Type Hypermarket
Founded 2001
Headquarters Jogeshwari, Mumbai
Industry Retail
Products Department, Grocery store
Promoter Kishore Biyani
Parent Pantaloon Retail India Ltd.
Punchline ‘Is se sasta aur accha kahin nahin’
HIERARCHY
FUTURE GROUP
CAPITAL BRANDS SPACE RETAILS
LIFE STYLES RETAILING
VALUE RETAILING VENTURE
FASHION STATION
MEDIA LOGISTICS
One stop shopping at discounted prices.Provides Best Products at the Best Prices.Targets price conscious majority segment
of customers. Some Competitive Slogans : • Keep West-aSide. Make a smart choice!• Shoppers! Stop. Make a smart choice!• Change Your Lifestyle. Make a smart
choice!
MARKETING MIX‘7 P’s ANALYSIS’
DENIMS &-T shirts
Fabrics & CutPiece
Formal Wear
Casual Wear
Party Wear
Ethnic Wear
Accesories
Undergarments
Night Wear
DressMaterial
Sarees
Shampoos
Detergents
Soaps
Liquid Wash
Creams
Deodrants
HomeCleaners
Utensils
Plastics
Crockery
Sundries
Soft Drinks
PackagedJuices
Milk Items
Frozen Food
Ice creams
Staples
Ready to eat
Ready toCook
InternationalFood
Spices
ImportedBazaar
Tea & Coffee
Fruits
Vegetables
ImportedFruits
DairyProducts
PRODUCT MIXAPPARELS FOOD FARM PRODUCE CHILL STATION
HOME & PERSONAL CARE
TelevisionSets
WashingMachines
Refrigerators
Personal Care (Shavers, etc)
mBazaar
Microwaves
SmallAppliances
Laptops
ComputerAccessories
KitchenAppliances
mr. right
Bakery
Loot Mart
Tulsi
future money
futuregeneralli
Kids Wear
Toy Bazaar
Stationery
Child Care
FootwearBazaar
Beauty Care
Navaras
Star Parivar
MeenaBindre
Living Room
Bed Room
Kitchen
Dining Hall
Kids Room
Bean Bags
Paintings
DecorativeItems
PRODUCT MIXELECTRONICS
bazaar Fashion &
JewelleryFurniture
bazaar Child Care &
Toys Other Services
IN HOUSE BRANDS @ BIG BAZAAR
DJ & C CLEAN MATE SENSEI
KORYO FRESH & PURE CARE MATE
BRANDS @ BIG BAZAAR
PRICING OBJECTIVE - MAXIMUM MARKET
SHAREPrice is the critical point in a competitive industry. Big Bazaar works on a low cost model. It considers its discounted price as its USP. There is an average discount of 7-8% on all items in respect to their MRP. Prices of products are low because it is able to secure stock directly from the manufacturer. There are huge synergies in terms of bulk purchasing, central warehousing and transportation. These all factors help this retailer to keep low prices.
PRICINGVALUE PRICING PROMOTIONAL PRICING
- LOW INTEREST FINANCING - PSYCHOLOGICAL DISCOUNTING
- SPECIAL EVENT / FESTIVAL PRICING
DIFFERENTIATED PRICING- TIME PRICING
BUNDLING
TIME PRICING
LOW-INTEREST FINANCING
PSYCHOLOGICAL PRICING
BUNDLING
MRP Brand
Atta 10kg 240 185 Shakti Bhog
Rice 10kg 210 210 Parimal
Dal 5kg 225 225 Moong
Sugar 5kg 95 94.05 Renuka*
Tea 500g 54 53.46 Red Label
Coffee 50g 68 68 Nescafe
Refine Oil 10ltr 860 759 Dhara
Ghee 2kg 400 330 Fresh n Pure*
Salt 2kg 20 19.98 Tata Salt
Soap 6pc 114 99 Cinthol
Shampoo 400ml 199 179 Garnier
Toothpaste 300g 79 74 Colgate
Detergent 110 69 Clean Mate*
Detergent Soap 4 40 39.96 Surf Excel Bar
Bathroom Cleaner 2 100 50 Clean Mate*
Bourntiva 500g 124 115 Bournvita
Total 2688 2409.51 Save 276.51
DISCOUNT - PRICING
PLACE – Store Locations covers all major metros in India and growing
- SUPPLY CHAIN BIG BAZAAR
Supplier
Warehouse
Inspection
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Shelves
Quality Check
Inspection
SUPPLY CHAIN – BIG BAZAAR
SOME PROMOTIONS‘Saal ke sabse saste 3 din’, 26 Jan ,
15 Aug , Diwali etc . Future Card (3% Discount) , Shakti
Card Tata Docomo – Free Talktime – On
Purchase limit of Rs.1000 Advertising (Print Ads, TV Ads, Radio)Brand Endorsement by M.S.Dhoni ,
Asin . ‘Junk’ swap offer-“Exchange anything
old for something new”Point-of-Purchase Promotions , Time
based limited offers Tying up with IPL - targeting sports
lovers
Some of the Key offers:- A Dish TV SetTop Box at Rs 999/-
(original cost Rs 3500/-) on a shopping of Rs 3500/-
- 5 Kg Rice + 5 Kg Sugar + 5 Kg Oil for RS 599/-.
- Branded Microwave 17 ltrs at Rs 1999/-.
- Branded DVD Player + Home theater at Rs 2999/-.
- Magnum Queen Metal Bed with mattress and 2 pillows of Rs.12000/- at Rs.5999/-.
- Nirlon Fry Pan @Rs.569/-. Get Tawa,Kadai & Gas Toaster free
Faida Zone
INTERNATIONAL FOOD FESTIVAL
BILLBOARDS
SOCIAL RESPONSIBILITY
CUSTOMER DEMO S / FEEDBACK
NEW DIRECT ADVERTISING CONCEPTS.
PEOPLEWell Trained StaffProfessional and Uniformed
AppearanceEmpowered IndividualsEncouraged to Think Out Of
The Box while servicing customers
Uniformed Security Guards placed at all Entry / Exit points
All counters are manned for full operational timeof the stores
Entire store connected by PBX and central voice systems for faster communications between all operational floors .
PROCESS
PROCESS Contd..
PHYSICAL MARKINGS FOR BETTER INFORMATION TO CUSTOMERS.
SWOT ANALYSIS
Strength- High Brand Equity- State-of-art infrastructure- PoP promotions- Variety of stuff under single roof at competitive prices
Weakness- Unable to meet store opening targets- Falling revenue/sq. ft.
Opportunity- Organized retail- Evolving consumer preferences
Threat- Competitors – Local and International- Government policies- Unorganized retail
TARGET AUDIENCE
•Big Bazaar targets middle and upper middle class customers
•The large and growing young working population is its preferred customer segment
•Targets specifically as customers - children ,working women and home makers who are mostly the primary decision makers
Maintaining Customer Database
• The rise of loyalty programs, mail order and the Internet has provided retailers with real access to consumer data. Data warehousing and mining technologies offers retailers the tools they need to make sense of their consumer data and apply it to business.
• For Big Bazzaar , one of the way of maintaining the Customer Database is by issuing of Loyalty cards which are called as - Future Cards
- Types of Future cards • Silver Card• Gold Card• Shakti card
Customer Profitability Analysis (CPA)
Customers classified into four types • Platinum Customers• Gold Customers• Iron Customers• Lead Customers
Differentiating customers in terms of:• Their needs• Their value to the company
Types of Analysis for CRM
• Periodic Surveys• Customer Loss Rate• Analysis of Mystery Shoppers• Monitor Competitive Performance
Complaint Handling Procedure
• Screening and Logging• Investigating• Acknowledging• Formulating a solution• Responding• Following Up
• Big Bazaar needs to focus more on Customer Relationship Management {CRM} and improved in-store assistance (Building loyal customers base and developing a more profitable – loyalty cycle).• Customer Care Centre to guide and counsel about customer loyalty programs. • Training must be provided to sales personnel not only of managing there own counters but for other functions also. Job rotation and training will enhance their knowledge, job profile and further boost the morale of employees to effectively perform their duties and responsibilities.
RECOMMENDATIONS
• Exchange offers must be made more simpler as the consumers are often not clear about how to use them.• Seating arrangements and child amusement areas can be made available for customers.• Customers usually face problem in billing their
purchased goods. Waiting in long queues forces them to leave certain products midway thereby causing loss of sale to Big Bazaar. So billing counters must be increased and employees at the billing should be given training so that they could bill the products in more efficient fashion in much lesser time.
RECOMMENDATIONS
• Employess at the billing stations should have the information about the special offers and the events that are being conducted at the store so they commit lesser mistakes.
• One solution can be that employees can be made wireless billing terminals available so they can generate bill for the customers anywhere in the store rather than only at the exit terminals so as to make the exits less crowded .
• Care to be taken to maintain proper inventory levels and the varieties at all times and offer the customer what is needed rather than offering what is available.
RECOMMENDATIONS
• Stress Buster Exercises can be organized for employees during evenings in sessions as employees have to stand all throughout the day.
• Offer Home Delivery at a charge below certain billing limit and free of cost above certain billing limit.
• Offer easy credit facility for frequent customers. • Offer discounts to frequent customers.
RECOMMENDATIONS
Conclusion
• Customer often says “I won’t complain. I just won’t Come Back”
• Being on par in terms of Price and Quality only gets you into the Game. Service wins the Game.
• Treat your Customer, just like you expect to be treated when you are a Customer.
Happy Shopping…
Thank you!
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