study of customer feedback & shrinkage reduction in food bazaar

A

Project Report On

“Study of Customer Feedback and Shrinkage

Reduction at Food-Bazaar

In

Big Bazaar, Sinhgad Road, Pune”

Submitted to University of Pune in Partial Fulfillment of

Requirement for the Award of Degree of

“MASTER OF BUSINESS ADMINISTRATION”

By

Mr. Giridhar Shinde

Under the guidance of

Mr. Yatin Bokil

SKN SINHGAD SCHOOL OF BUSINESS MANAGEMENT,

AMBEGAON (Bk), PUNE

(2011-13)

DECLARATION

I, the undersigned, hereby declare that the Project Report entitled “Study of

Customer Feedback and Shrinkage Reduction at Food Bazaar in Big Bazaar,

Sinhgad Road, Pune” written and submitted by me to the University of Pune, in partial

fulfillment of the requirement for the award of degree of Master of Business

Administration under the guidance of Mr. Yatin Bokil, is my original work and the

conclusions drawn therein are based on the material collected by myself.

Place: Pune

Date: / / Signature of Student

1

ACKNOWLEDGEMENT

I sincerely express my deep sense of gratitude to Dr. Rajashree Shinde, Director

SKNSSBM for the invaluable guidance and constant encouragement which is invaluable

in completing of this project.

I am thankful to Mr. Rupesh Singh (Store Manager), Sinhgad Road Big-Bazaar,

Pune for his constructive discussions and perseverance during this project. Also I would

like to thank the all staff of Big-bazaar, Sinhgad road for their valuable suggestions and

useful comments throughout this project.

I am also thankful to Mr. Yatin Bokil, for his extraordinary cooperation,

invaluable guidance and supervision throughout this project.

I owe and respectfully offer my thanks to my noble parents for their constant

moral support and mellifluous affection which helped me to achieve success in every

sphere of life and without their kind devotion this thesis would have been a sheer dream.

I sincerely acknowledge the efforts of all those who have directly or indirectly

helped me in completing my thesis successfully.

It is the kindness of these acknowledged persons that this thesis sees the light of

the day. I submit this thesis of mine with great humility and utmost regard.

Mr. Giridhar Shinde.

2

INDEX

Chapter

No.

Particulars Page No.

Executive Summary

1. Introduction 1

2. Profile of the organization 4

3. Research Design & Methodology 16

4. Conceptual Background 19

5. Data Presentation , Analysis and Interpretation 29

6. Findings , Suggestions and Conclusion 47

Bibliography

Annexure

3

EXECUTIVE SUMMARY

4

EXECUTIVE SUMMARY

The study of customer feedback & shrinkage reduction is very important for any

retail store. Study of customer feedback gives organizations an idea of what exactly

customer wants, which helps them in delivering what is required by the consumers hence

given them maximum satisfaction which is of utmost importance in these competitive

world of retail. By reducing the shrinkage; store can improve the revenue & loss will be

minimized.

Big bazaar is one of the retail giants which have come up as a revolution in the

retail industry. Big Bazaar has six outlets in Pune and one of this outlet is on Sinhgad

Road. The Big Bazaar management at Sinhgad road, Pune felt that they had a slight

reduction in the footfalls of Food-Bazaar and hence they wanted to find out the various

factors responsible for the same by taking the feedback from customers. They also

wanted to identify the various reasons for shrinkage in their outlet & wanted to reduce the

shrinkage. On this background this project was conceptualized and initiated.

The project is about understanding the needs & expectations of customers through

their feedback and understanding various aspects which influence the consumer buying

behavior. The project also includes the study of shrinkage, causes of shrinkage and

preventive ways to reduce shrinkage to reduce losses and thereby increase profitability.

Based on findings of study, suggestions have been given to management of Food

Bazaar so that it can sustain old customers, also gain new customers and reduce

shrinkage which can result in increasing revenue and also aid Food Bazaar in sustaining

its competitive advantages in market.

5

CHAPTER 1

INTRODUCTION

6

INTRODUCTION

India is the second fastest growing economy in the world. It is third largest

economy in the world in terms of GDP and fourth largest economy in terms of

Purchasing Power Parity. India presents a huge opportunity to the world at age, to use as

a hub. Standing on the threshold of a retail revolution and witnessing a fast changing

retail landscape, India is all set to experience the phenomenon of global village. India is

the “promised land” for global brands and Indian retailers A “Vibrant economy”. India

tops in the list of emerging market for global retailer and India’s retail sector is

expanding and modernizing rapidly in line with India’s economic growth. 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 toward becoming the next boom

industry. Modern retail has entered India as seen in sprawling shopping centers, multi-

storied malls and huge complexes offer 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 to take a higher

growth trajectory. The Indian population is witnessing a significant change in its

demographics. A large young working population with median 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 retail

sector in India.

Big Bazaar is a chain of hypermarket in India. As of June 2, 2012 there are 214

stores across 90 cities and towns in India covering around 16 million sq.ft. of retail space.

Big Bazaar is designed as an agglomeration of bazaars or Indian markets with clusters

offering a wide range of merchandise including fashion and apparels, food products,

general merchandise, furniture, electronics, books, fast food and leisure and entertainment

sections.

In July 2002, Big Bazaar made a challenging extension: It entered the food retail

with a 9000 Sq. ft. Food Bazaar at its Lower Parel store in Mumbai. Enthused by the

phenomenal response, the company has set up Food Bazaar in other Big Bazaar stores

also. The company’s reason for entering food retail was food spending at 53% of personal

7

income outstripped every other itemized spending in India. Despite this high spending, the

role of organized food retail in the country’s total food spend was just one percent.

The company’s Food Bazaar was adapted to the Indian environment. To attract

regular bazaar-goers, a mandi was created within the Food Bazaar where consumers could

touch, feel, pick and choose products. This choice was supplemented by the provision for

packaged food for the westernized shoppers. Food Bazaar prices were priced at wholesale

rate below the MRP. Private labels were introduced for high margin and price sensitive

products like tea, salt and oil.

The project is based on a survey done on customers of Food Bazaar, Sinhgad

Road, Pune; which is a type of hypermarket providing all products at low cost. It is also

known as one store shop wherein a customer gets all products under a roof.

Customer feedback is the process of providing information to businesses about

products, services and customer service. Management, marketing and sales departments

can all use customer feedback to streamline processes and improve profitability. Customer

comments and complaints given to a company are an important resource for improving

and addressing the needs and wants of the customer.

The project is about the study of customer feedback to understand what

exactly customer wants, which will help them in delivering what is required by the

consumers hence giving them maximum satisfaction. Also it includes the study of

shrinkage at Food Bazaar and its causes. Thus by reducing shrinkage store can improve

the revenue & loss will be minimized.

OBJECTIVES:

8

1) To study factors influencing the customer buying behavior at Food Bazaar.

2) To find the level of satisfaction of customers on various aspects of Food Bazaar.

3) To identify the reasons for shrinkage in Food Bazaar.

4) To provide suggestions to management of Food Bazaar for enhancing customer

satisfaction and for shrinkage reduction based on findings of the study.

SCOPE:

The scope includes study of the feedback of customers and shrinkage reduction at

Food Bazaar, Sinhgad Road, Pune. Within Food Bazaar, aspects of various departments

have been studied in general and scope does not include study of other departments in

Big Bazaar (i.e. departments other than Food Bazaar).

LIMITATIONS:

1) Research time is limited only to two months.

2) Many of the senior citizens are somewhat reluctant to fill up the questionnaire.

3) There may be the possibility of bias in the responses.

4) In a rapidly evolving retail scenario, the marketing environment changes are

important to be considered in order to assimilate the findings.

5) The findings of study are limited to Food Bazaar in Big Bazaar on Sinhgad Road

only.

1)

9

CHAPTER 2

PROFILE OF THE ORGANIZATION

10

INTRODUCTION

Pantaloon Retail (India) Limited (PRIL) was incorporated on October 12, 1987 as

Manz Wear Private Limited under the stewardship of Mr. Kishore Biyani. It was

converted into a public limited company in September, 1991. PRIL set up its first

menswear Pantaloon Shoppe outlet in 1993. The company’s name was changed to

Pantaloon Retail (India) limited in 1999, when it made a fully fledged entry into the retail

segment through the Pantaloons Family Store.

As India’s leading retailer, Pantaloon Retail inspires trust through innovative

offerings, quality products and affordable prices that help customers achieve a better

quality of life every day. It serves customers in 85 cities and 60 rural locations across the

country through over 15 million square feet of retail space. Pantaloon Retail is the

flagship company of Future Group, India’s retail pioneer catering to the entire Indian

consumption space. Through multiple retail formats, we connect a diverse and passionate

community of Indian buyers, sellers and businesses. The collective impact on business is

staggering: Around 220 million customers walk into our stores each year and choose

products and services supplied by over 30,000 small, medium and large entrepreneurs

and manufacturers from across India. This number is set to grow. It operates multiple

retail formats in both the value and lifestyle segments of the Indian consumer market

including:

Pantaloons - a chain of fashion Big Bazaar - a uniquely HomeTown - One- stop outlets. Indian hypermarket chain. destination for every Indian home-owner.

Food Bazaar - a supermarket Central - a chain of seamless Ezone - eZone brings to chain that blends the look and destination malls. you the latest in feel of Indian bazaars with electronics at the lowest modern retail aspects like choice, prices. convenience and quality.

Other formats include Brand Factory, Ethnicity, Planet Sports, aLL and more.

11

As modern retail drives fresh demand and consumption in new categories, it’s

strategy is based on a deep understanding of Indian consumers the products they want,

and making these products available in every city in every store format. It is in line with

its broad objective of being a catalyst in India’s consumption-led growth and being a

positive agent of change in the communities we serve. Future group continues to be

India’s leading multi-format retailer and a leader in sustainability and employment

opportunity. Through over 15 million square feet of retail space, we serve customers in

85 cities and 60 rural locations across the country. Around 220 million customers walk

into stores each year. We employ 35,000 people directly from every section of our

society.

LEADERSHIP:

“Modern retail will drive new demand, drive consumption in new categories and as

retailers, we will have to play a major role and create demand for many new products.”

--Mr.Kishore Biyani. (MD)

Kishore Biyani is the Managing Director and the Group Chief Executive Officer

of Future Group. Considered a pioneer of modern retail in India, Kishore’s leadership

has led Future Group’s emergence as India’s leading retailer operating multiple retail

formats that cater to the entire basket of Indian consumers.

Kishore Biyani led the company’s foray into organized retail with the opening of

the Pantaloons family store in 1997. This was followed in 2001 with the launch of Big

Bazaar, a uniquely Indian hypermarket format that democratized shopping in India. It

blends the look and feel of the Indian bazaar with aspects of modern retail like choice,

12

convenience and quality. This was followed by a number of other formats including Food

Bazaar, Central and Home Town.

Shailesh Haribhakti (Chairman and Non-Executive Independent Director )

S Doreswamy (Non-executive Independent Director )

Dr. Darlie Koshy (Non-executive Independent Director )

Anil Harish ( Non-executive Independent Director )

Bala Deshpande (Non-executive Independent Director )

Vijay Kumar Chopra (Non-executive Independent Director )

Gopikishan Biyani (Non-executive Director )

Rakesh Biyani (Executive Director )

Vijay Biyani (Executive Director )

Kailash Bhatia.( Executive Director)

VISION & MISSION OF THE ORGANIZATION:

ManifestoRewrite Rules. Retain Values.

Vision

We shall deliver

Everything,

Everywhere,

Every time for,

Every Indian Consumer

in the most profitable manner.

Mission

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.

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

making consumption affordable for all customer segments – for classes and for

masses.

13

We shall infuse Indian brands with confidence and renewed ambition.

We shall be efficient, cost- conscious and committed to quality in whatever we

do.

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

determination shall be the driving force to make us successful.

Core Values

Indianness: confidence in ourselves.

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

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

Introspection: leading to purposeful thinking.

Openness: to be open and receptive to new ideas, knowledge and information.

Valuing and Nurturing Relationships: to build long term relationships.

Simplicity & Positivity: Simplicity & positivity in thought, business & action.

Adaptability: to be flexible and adaptable, to meet challenges.

Flow: to respect and understand the universal laws of nature.

HISTORICAL BACKGROUND:

2012 : Big Bazaar is planning to add further value to its retail services by offering Value added services like grinding, de-seeding, vegetables cutting at free of cost. Partnered with Disney to launch "Kidz Cookies", exclusively for kids across India.

2011 : Big Bazaar has come up a new logo with a new tag line: ‘Naye India Ka Bazaar’. Also opened 200th store in India. Future Group has launched its latest venture, Foodhall – a premium food destination across 10 metros in India.

2010 : Future Value Retail Limited is formed as a specialized subsidiary to spearhead the group’s value retail business through Big Bazaar, Food Bazaar and other formats. Ranked 6 among the Top 50 Service Brands in India.

2009 : Big Bazaar captures almost one-third share in food and grocery products sold through modern retail in India. Mahendra Singh Dhoni and Asin were chosen as the brand ambassadors of Big Bazaar.

14

2008 : Big Bazaar crosses the 100-store mark, marking one of the fastest expansions of the hypermarket format anywhere in the world. Big Bazaar initiated the Mega Saving "Monthly Bachat Bazaar" campaign.

2007 : Future group crosses the $1 billion turnover mark. Big Bazaar partners with Futurebazaar.com to launch India's most popular shopping portal.

2006 : Big Bazaar launches Shakti, India’s first credit card program tailored for housewives. Navaras – the jewellery store launched within Big Bazaar stores.

2004 :Big Bazaar and Food Bazaar awarded the country’s most admired retailer award in value retailing and food retailing segment at the India Retail Forum.

2003 : Big Bazaar enters Tier II cities with the launch of the store in Nagpur.

2002 : Food Bazaar, the supermarket chain is launched in Mumbai at High Street Phoenix.

2001 : Pantaloon Retail launches three Big Bazaar stores (Hypermarket chain) within a span of 22 days in Kolkata, Bangalore and Hyderabad.

1997 : Pantaloon Retail enters modern retail with the launch of the first 8000-sq. ft. store Pantaloons in Kolkata.

1994 : The Pantaloon Shoppe, our exclusive menswear store in a franchisee format is launched across the nation. The company starts distribution of branded garments through multi-brand retail outlets across the nation.

1992 : Pantaloon Retail India Ltd. made an Initial public offer (IPO) in the month of May.

1991 : BARE, an Indian denim brand is launched.

1987 : The company is incorporated under the name of Manz Wear Private Ltd.Pantaloons: one of India’s first formal trouser brands is launched.

15

ORGANIZATIONAL CHART

16

Store Manager(SM)

Asst. Store Manager(ASM)

Supprt

HR VMWarehou-se

Cash

CSD

Operation

Food

Dept.

Manager

ADM

Team LeaderTeam Member

Non-Food

Dept.

Manager

ADM


Fashion

Dept.

Manager

ADM


General

Merchan-dise

Dept.

Manager

ADM


CURRENT STATUS OF THE ORGANIZATION:In the last 5 years PRIL has evolved as a leading manufacturer-retailer in the

country with 13 Pantaloon departmental stores, 6 Big Bazaar hypermarket discount stores

and 6 Food Bazaar - food and grocery stores. ‘Pantaloons’, ‘Big Bazaar’ and ‘Food

Bazaar’ together account for close to 650,000 sq.ft of retail space in the country.

Big Bazaar hypermarket discount stores have been positioned as ‘Is se sasta aur

acha kahin nahi!’- with price as the key value proposition. Products are cheaper than

market price by 5%-60%. Apparels are normally cheaper by 25% to 60% than the

prevailing market prices, while other product categories are cheaper by 5% to 20%.

Food Bazaar – Food Bazaar represents the company’s entry into food retail and

is targeted across all classes of population. Food Bazaar replicates a local ‘mandi’, to

provide the much important ‘touch & feel’ factor which Indian housewives are used to in

the local bazaar. Food Bazaar has over 50,000 stock keeping units which cover grocery,

FMCG products, milk products, juices, tea, sugar, pulses, masalas, rice wheat etc, besides

fruits and vegetables. All products are sold below MRP and discounts range between 2%

to 20%. Fruits and vegetables are sold at prices comparable to wholesale prices.

PRIL has drawn up an aggressive expansion plan over the next two years. An

estimated 380,000 sq ft of additional retail space would be operational in F6/04 and

another 680,000 sq.ft. by F6/05. The company has already identified and signed up space

for 11 Big Bazaars, 2 Food Bazaar’s, 4 Pantaloon’s, and 2 Central Malls. PRIL has also

created the requisite backend infrastructure necessary for expansion of its operations

nationally.

Warehouse - PRIL has a Central Warehouse at MIDC Tarapur. The warehouse is

created into modular fashion wherein first phase of 25,000 square feet is operational. The

company has zonal warehouses at Mumbai, Kolkata, Hyderabad and Chennai of 10,000-

15,000 square feet each.

Manufacturing facilities - The Company has one of the most modern trousers

manufacturing plant in the country. The trouser plant located at MIDC Tarapur in the

same premises of Central Warehouse. The plant was setup with technical knowhow from

Bellows, U.K. with completely automatic and the most modern machines for fusing,

serging, bottom hemming, welt pocket making operations. This factory has an installed

17

capacity to manufacture 1400pcs trousers a day. The company also has its own plant to

manufacture Denim jeans at Mumbai. The plant has an installed capacity to manufacture

700 jeans per day; it has been setup with best machinery from Durkopp Adler, Germany,

Juki, Japan, Brother, Japan, Union Special, and U.S.A amongst others.

Turnover of last four years:

2008 2009 2010 2011

58417669

9787

12212

Rs. Cr

Space evolution:

Operational store space increased to 13.25 million square feet, which includes

around 2 million square feet added after merger of home business.

Big Bazaar; 6.2

Food Bazaar; 0.26

Others; 5.07

Big Bazaar; 6.88

Food Bazaar; 0.47

Other; 5.9

2008-2009 2009-2010

2010-2011

18

Sources: ANNUAL REPORT 2008-09

ANNUAL REPORT 2009-10


Note - Retail space in million

Footfalls:

2011

2010

2009

2008

0 50 100 150 200 250 300 350

297

220

185

163

x-axis- Footfall in millionY-axis- Years

Footfall in million

DIFFERENT PRODUCT PROFILES OF THE FOOD-BAZAAR:

Chocolates Dry Fruits

Fruits and vegetables Beverages

Ready to cook Ready to eat

19

Sources: ANNUAL REPORT 2008-09



Note - Retail space in million

Staples Personal care

Home care Crockery

Utensils Refrigerated products

FUTURE PLANS OF THE ORGANIZATION:Much like in other categories, in food too, it is witnessing a rapid transformation

of customer preferences. Modern trade brought in more choice and convenience to

shopping for food products and staples and in home and personal care products for

customers. Now in most cities, customers who had entered modern retail eight to ten

years back, with growing income and more acquaintance with global and local trends are

ready to taste more diverse cuisines at their dining table and demands more value added

products. And these customers are willing to pay more for it. In the large cities customers

are experimenting with international cuisine and with different regional Indian cuisine

with equal gusto. Customers are also demanding more healthy food choices and fresher

products, and are willing to pay a premium for it. This provides a unique opportunity for

modern retail.

During the year, the company opened 26 Food Bazaar outlets. A large number of

existing Food Bazaar outlets were also upgraded in order to offer more products and

services to the customer. These include, larger sections for fresh fruits and vegetables and

food services. In order to provide better quality and fresher produce, the company is tying

up with producers across the country for key fruits and vegetables and investing in

sourcing, sorting, packaging centers and as well as an efficient logistics network

including cold chains across the country for both domestic as well as imported produce.

The company is also set to open a state-of-the-art integrated food distribution center

outside Mumbai equipped with ‘on-conveyor sorting,’ ‘put-to-light’ supply chain

process, ‘roll-caged’ based store delivery and similar technologies. Similar integrated

20

distribution centers will be rolled out in the key eight cities across the country during the

first half of the forthcoming financial year.

The company’s specialized sourcing subsidiaries, Future Fresh foods Limited for

fruits and vegetables and Future Agrovet Limited, for staples, commodities, spices and

dry fruits too have acquired significant traction in sourcing directly from producers,

thereby yielding more control over product pricing and efficiencies for the company.

A key development during the financial year was also the growth of KB’s

Fairprice format that crossed the 200th store mark. Present only in Delhi, Mumbai and

Bangalore, the format opened its 100th store in Delhi. The format has now matured and

come of age and the company is now confident of rolling out around fifteen stores every

month as it forms a key part of the company’s growth strategy in this category.

A crucial roll out for the forthcoming year will be the launch of Food Hall – an

upgraded food store that will cater to a more evolved set of customers willing to pay a

higher price for more value added food products as well as international food ingredients.

The company has drawn up an extensive roll out strategy focusing both on merchandise

as well food services. While the first Food Hall has come up in the up market Palladium

Mall in Mumbai, the company has mapped more than 16 catchments in the country that

are ideal for opening this upper-end food retail format. In the year of 2010-11, future

value retail have opened 26 new Food-Bazaar outlets, 214 KB’S Fairprice stores across

India in which 115 stores belongs to Delhi alone.

MILESTONE:

2012

21

CISO Award 2012: Future Group was felicitated for using Information security

technology in the most effective and innovative manner.

Golden Spoon Awards 2012: Most Admired Food and Grocery Retailer of the Year

for its Private Labels in Big Bazaar – Future Group.

Images Fashion Awards (IFA) 2012: Most Admired Private Label Retailer - Pantaloons.

ET Retail Awards 2012: FedEx Most Trusted Retailer of the Year Award – Big Bazaar.

Recognition by CMO Council, USA & Asia: Master Brand Award-Future Supply Chains.

Bloomberg UTV B-School Excellence Award - Best educational institute in Retail

- Future University

2011

Designomics Awards: Recognising Businesses that build value through Design.

CNBC AWAAZ Consumer Awards: Most Recommended Modern Retail Brand of the

year in the Popular Choice category- Big Bazaar

Brand Equity’s Most Trusted Brands awards: Most Trusted Retailer - Big Bazaar

Images Retail Awards: Most Admired Retailer of the year in the Home Products Category.

Excellence Awards -for Finance & Accounting Transformation through Shared Services.

Golden Spoon Awards - Most Admired Food Retailer of the Year: Private Labels

– Food Bazaar

Marketing Excellence Awards held by Indira Group Of Institutes

-Best Employer Of The Year

ACE (Awards for Customer Excellence) 2011

Franchise India Expo 2011 - Best Food And Grocery Chain Of 2011-Food Bazaar

Best Value Retailer of 2011 - Big Bazaar

Food Retail & SCM and Agro Logistics: Food Supply Chain Company Of The Year

In Retail Category – Food Bazaar

22

CHAPTER 3

RESEARCH DESIGN &

METHODOLOGY

INTRODUCTION

23

Research can be defined as a scientific and systematic search for pertinent

information on specific topic. It is careful investigation or inquiry, especially through

search for new facts in any branch of knowledge.

Marketing research is the systematic & objective identification, collection,

analysis, dissemination & use of information for the purpose of improving decision

making related to the identification & solution of problems & opportunities in marketing.

1. Research Design:

A research design is the overall program of research. It is the general blueprint for

the collection, measurement & analysis of data. It is the overall operational pattern or

framework of the project that stipulates what information is to be collected, from which

sources & by which procedure.

Research design used during project is “Descriptive Research”. In this

type of research, researcher has to portray accurately the characteristics of particular

individual, group or situation.

2. Data Collection Method:

Data can be collected directly through interaction or through existing records. The

data which is fresh and collected by interaction is known as primary source of data

collection while, data collected through existing records is known as secondary source.

1. Primary Source:

For this research the data is collected through survey method with

structured questionnaire as a research instrument, from the customers of Food

Bazaar in the premises of Big Bazaar, to gain insight about the consumer buying

behavior and also about various aspects related to shrinkage. The collected data

has been analyzed to provide findings and suggestions. The structured

questionnaire includes use of dichotomous question, multiple choice questions,

questions with rank order scaling and open ended questions. Also in-depth

interviews have been conducted with store manager and department managers.

Similarly some observations are drawn to find suggestive measures.

Thus the primary data collection methods used for the project includes:

1. Survey method by administering structured questionnaire

24

2. In-depth interviews

3. Observations

2. Secondary Sources:

The data is collected through books, company manual, company website

& annual report. It is to gain insight and information about the various issues

relevant to the project. Secondary data gives direction to the project and hence it

plays a vital role in any project, for this project the secondary data sources are

1. Company Publications

2. Books

3. Websites

4. Newspapers

For study of shrinkage, latest store shrinkage report and books are

referred.

3. Sampling Procedure:

Sampling is the process of learning about the population on the basis of a sample

drawn from it. Thus, in the sampling technique instead of every unit of the universe only

a part of the universe is studied & the conclusions are drawn on that basis for the entire

universe. A sample is subset of population unit. The process of sampling involves three

elements:

1. Selecting the sample

2. Collecting the information

3. Making an inference about the population

The method of sampling used during project is “Convenience Sampling”.

4. Population:

It is the target group, which the researcher wants to know about by studying one

or more of its samples. The population for the study includes the customers of Food

Bazaar in Big Bazaar, Sinhgad Road, Pune.

25

5. Sampling Unit:

The sampling unit is the basic unit containing the elements of the population to be

sampled. It may be the element itself, i.e., the object on which measurements are taken or

a unit in which the element is contained. Sampling unit chosen for the project is an

“Individual customer of Food Bazaar”.

6. Sample Size:

Sample Size is 80 customers of Food Bazaar in Big Bazaar, Sinhgad Road, Pune.

26

CHAPTER 4

CONCEPTUAL BACKGROUND

27

INDIAN RETAIL MARKET

Retailing in India is evolving rapidly, with consumer spending growing by

unprecedented rates and with increasing no of global players investing in this sector.

Organized retail in India is undergoing a metamorphosis and is expected to scale up to

meet global standards over the next five years. India’s retail market has experienced

enormous growth over the past decade. The most significant period of growth for the

sector was between year 2000 & 2006, when the sector revenues increased by about

93.5% translating to an average annual growth of 13.3%. The sectors growth was partly a

reflection of the impressive Indian economic growth and overall rise in income level of

consumers. Retail sector is the largest contributing sector to country’s GDP. Comparative

picture of GDP contribution by retail sector of year 2010 is shown below:

With all these features and advantages, the opportunity for structural changes

from unorganized retail industry format to organized format has made the Indian markets

as a “Permissible ground” for global and domestic private players to fetch their goods and

fuel the economy to grow.

MEANING OF RETAIL:

The word retail is derived from the French word retailer, meaning to cut a piece

off or to break bulk. In simple terms, it implies a first-hand transaction with the customer.

Retailing can be defined as the buying and selling of goods and services. It can also be

defined as the timely delivery of goods and services demanded by consumers at prices

that are competitive and affordable.

28

Sr. No. Country Contribution of retail sector to GDP 1

2

3

4

USA

India

China

Brazil

12% 12%

8%-10%

6%

Retailing involves a direct interface with the customer and the coordination of

business activities from end to end- right from the concept or design stage of a product or

offering, to its delivery and post-delivery service to the customer. The industry is

undoubtedly one of the fastest changing and dynamic industries in the world today.

CURRENT SCENARIO OF INDIAN RETAIL MARKET:

The size of Indian retail industry is more than US $350 billion but it is highly

unorganized. The organized sector has started developing in the past few years. Many

International brands have entered the market. With the growth in organized retailing,

unorganized retailers are fast changing their business models. According to study

conducted by ICRIER, total retail business in India will grow at 13% annually, from US

$322 billion in 2006-07 to US $590 billion in 2011-12 and further US $1 trillion by 2016-

17.

2006-07 2011-12 2016-17

322

600

1011

Size of Indian Retail US$ bn

Source: Technopak Analysis, CSO and other sources.

FDI NORMS:

Regulatory controls on FDI have been relaxed considerably in recent years.

Currently the government allows 51% FDI in multi brand retailing and 100% in single

brand retailing & cash-n-carry business. Also government allowed FDI in aviation and

planning to allow for pharmaceuticals.

FACTORS DRIVING THE GROWTH OF RETAIL SECTOR:

29

The consistent economic growth resulted in a decent rise in income level of the

middle class. The thickening of the pocket of the consumer resulted in a revolution of the

retail industry. Many International brands have entered the market. With the growth in

organized retailing, unorganized retailers have brought drastic changes in their business

models; many factors are responsible for the growth of retail sector. These are:

1) Increasing disposable income2) Increasing number of dual income nuclear families3) Changing lifestyle and consumer behavior4) Experimentation with formats5) Store design

ISSUES BEFORE RETAIL SECTOR IN INDIA: Entry of Organized Retail Players

In Indian retail sector organized retail is a recent phenomenon. It is a zero-sum

game between two players:-

a) Organized sector & b) unorganized sector

India’s retail is dominated by a large number of small retailers consisting of the

local kirana shops, owner manned general stores, chemists, footwear shops, apparel

shops, paan & beedi shops, hand-cart hawkers, pavement vendors etc. which together

make up the so-called Unorganized retail.

Organized retail is reflected in sprawling shopping centers, multiplex-malls &

huge complexes which offer shopping, entertainment and food all under one roof. The

last 3-4 years have witnessed the entry of a number of organized retailers Opening stores

in various modern formats in metros and other important cities. Organized retailing has

begun to tap the enormous market but its share is small. However, opinions are divided

on the impact of growth of organized retail in the country. Concerns have been raised that

growth of organized retail may have an adverse impact on retailers in the unorganized

sector. It has also been that growth of organized retailing will yield efficiencies in supply

chain, enabling better success to markets to producers (including farmers and small

producers) and enabling higher prices, on the one hand and, lower prices to consumers,

on the other. In India, organized retail contributed roughly 5-8% of the total Indian retail

2011-12, which is very small even compared with most of the emerging market

economics.

30

96%

4%

2006-2007

Unorganised Organised

8%

92%

2011-12

Organised Unorganised

Total Retail: US $322 billion Total Retail: US $421 billion

Interestingly, this huge growth in organized retail does not involve a decline in the

business of unorganized retail, the sales of the unorganized retail, the sales of the

unorganized sector is expected to grow by 10% p.a., from US$ 322 billion 2006-07 to US

$ 495.6 billion in 2011-12.

MODERN RETAIL FORMATS IN INDIA:The face of India retail sector is changing; new & innovative business models are

being adopted. The formats prevalent in retail sector are:

1. HYPER MARKET – Hypermarket offer a large basket of products, ranging from

grocery, fries & processed food, beauty & healthcare products etc.

Ex.- Spencer’s, Big Bazaar

2. CASH & CARRY – These are large B2B focused retail formats, buying & selling in

bulk for various commodities and carry several thousand stock-keeping.

Ex.-Mito, a Germany based C&G.

3. DEPARTMENT STORES - Department stores have a large layout with a wide range

of merchandise mix, usually in cohesive categories, such as showed towards garments.

Ex.:- Shopper’s stop, Westside

4. SPECIALITY STORES – Specialty stores are single category, focusing on individuals

and group clusters of the same class with high product loyalty.

Ex.-Archies, Woodland

5. DISCOUNT STORE – A discount store is a retail store offering a wide range of

products, mostly branded, at discounted prices or apparel or footwear brands.

Ex.-Koutons, Levis.

31

6. CONVENIENT STORE – A convenience store is a relatively small retail store located

near a residential area (closer to consumer), open long hours, 7 days a week and carrying

a limited range of staples and groceries. Ex. – In & Out.

FUTURE ROADMAP:Indian Government seems determined to go ahead and gradually liberalize the

retail sector despite continuing opposition from the Left parties. The amazing fact is that

some movement is taking place. This seems to be due to Prime Minister Manmohan

Singh's conviction that bringing in the big retail chains will unleash a wave of

employment in rural and urban areas. The fears of the Left, on the other hand, are that the

entry of retail giants will mean job losses as small mom-and-pop retailers get pushed out

of existence. The fact is there is merit in both arguments. On the plus side, it is clear that

agriculture is not providing enough jobs for the economy and there is an unprecedented

wave of migration to urban areas. The entry of retail chains, which buy straight from the

farmer, is bound to bring about greater purchasing power as the producer will get much

better prices. Similarly, this gives a bonanza to the consumer who gets food products

sourced directly from the farmer without having to pay the middleman's commission. But

the Agitators have a point too. They are worried that the 15 million small retailers in the

country may be forced out of existence. India has the largest retail economy in the world,

according to a study by the CII (Confederation of Indian Industry). And the time has

certainly come for retail chains to enter this country. The process has been gradual, as

mentioned earlier, but even so large retail has made a dramatic impact in the areas where

it has been allowed to make an entry. In the long run, it is clear that the entry of large

retail chains will benefit the agricultural sector. They will also have a long-term effect on

agricultural unemployment, which is the big worry for policymakers right now. Domestic

retail chains have already been allowed to set up business and it is now merely a matter

of allowing bigger foreign players into the country Multinational giants like Wal-Mart

and Carrefour also have deep pockets and their huge investible funds are meant for

sourcing products from rural areas, which in turn will provide more jobs. The thinking in

the commerce ministry right now seems to be that the existing policy of allowing only

single brand retailing can be extended in a phased manner to multi-brand retailers.

32

SWOT Analysis of Indian Retail Sector-

Strengths Increasing demand driven by the country’s young working population

Increase in per capita income which in turn increases the household consumption

Create win-win situation for all links in value chain (suppliers, producers, retailers

and customers).

Improvement in the standard of living.

Technology intensive industry

Weaknesses Lack of expertise in Supply Chain Management

Inadequate Infrastructure

Stringent Labor Laws

Lack of specialized professionals in Industry

Lack of industry status.

Government Restrictions on FDI

Non-Availability of Government Land.

Opportunities Change in consumer behavior pattern and increase in disposable income.

It was estimated that millions of people would be engaged in Retail and

Retail support activities by 2012

Indian rural markets offer a sea of an opportunity for the retail sector.

Upcoming international Players

Healthy prospect for the fashion industry.

Approximately only 5% to 8% of retail sector is organized, so there is

large scope for organized retail.

Threats Indian taxation system favors small retail business.

Competition from unorganized Sector to the organized Sector.

Middle class Psychology.

Increasing Real Estate prices

Govt.’s decision on FDI in India.

33

Customer feedback in a retail setting is important to the growth and success of

organization. Customers can tell how to improve product line, increase sales through

more effective marketing, enhance customer service, improve your store's layout to make

shopping easier and any other changes you should consider to increase revenue.

What is customer Feedback?

Customer feedback is the process or specific instance of providing information to

businesses about products, services and customer service. Management, marketing and

sales departments can all use customer feedback to streamline processes and improve

profitability.

Information coming directly from customers about the satisfaction or

dissatisfaction they feel with a product or a service. Customer comments and complaints

given to a company are an important resource for improving and addressing the needs

and wants of the customer. The information is procured through written or oral surveys,

online forms, emails, letters, or phone calls from the customer to the company.

Importance of customer feedback –

A happy customer leads to a successful business. Taking customers’ thoughts,

comments and feedback seriously can lead to increased sales and opportunities for

improvement. Understanding what customers think of you can only improve service

delivery and quality of products leading to business sustainability. Monitoring customer

feedback can be done through several mechanisms including written and oral satisfaction

surveys and online comments. Customer feedback is vital to making a business work.

Your customers are the heart of your operation; without them, it would be impossible to

have any of the success that you do. Customer feedback can be an excellent way to keep

your business going in a positive direction.

1. Get Honest Opinions -Customer feedback is a vital way to get honest opinions

on your services or products from people who are familiar with them. These

opinions can make it easier to get into the minds of the most important critics.

2. Improve Relations -When customers feel that a business truly cares about them

and what they think, they may be more likely to be loyal customers. When a

business makes changes according to feedback, it shows that they truly listen and

respect those opinions.

34

3. Inexpensive Business Advice -Some businesses pay thousands of dollars for

someone to come in and tell them what improvements need to be made to the

business to get more customers. Customer feedback is essentially inexpensive

business advice directly from the source.

What is shrinkage & causes of shrinkage?

Inventory shrinkage is the loss of products between point of manufacture or

purchase from supplier and point of sale. The term shrink relates to the difference in the

amount of margin or profit a retailer can obtain. If the amount of shrink is large, then

profits go down which results in increased costs to the consumer to meet the needs of the

retailer.

Retail shrinkage is the difference in the value of stock as per the books or system

and the actual stock available in the shop or Shrinkage is the reduction in physical

inventory caused mainly by process failure, errors, shoplifting and employee theft. The

causes of retail shrinkage are mainly employee theft, shoplifting, administrative errors

and vendor fraud.

Example – If Theoretical inventory = 5, Physical Inventory = 4, sales= 20 then Shrinkage

(5-4)/20=5%

35

1. Employee Theft:

Also known as “internal shrinkage”, this is caused by the

employees of the store such as pilfering merchandise, cash, provisions etc.

Employee theft and embezzlement of accounts cause almost half of the

total retail shrinkage. Cashier caused shrinkage occurs in ways of wrong

recording of transactions, forging receipts, misuse of the register or

computer etc.

2. Shoplifting:

Otherwise called “commercial burglary”, this is one of the most

common crimes. In slang language it is expressed as “five-finger

discount”. Studies show that one out of twelve customers might be a

shoplifter. Professional shoplifters are called “boosters”. Shoplifters

require privacy. Things should be arranged in such a way so as to avoid

“blind spots” in the store and thus avoid internal loss. Small and expensive

items should be kept behind the counter or locked in a display case. CCTV

filming all areas of the store is the most successful way to prevent

shoplifting. Installation of physical obstacles such as alarm at the store

exits, and closing the back exit of the shop would also prove beneficial.

3. Administrative Errors:

Administrative and paperwork errors such as mark up and mark

down of the prices cause around 15 percent of the retail shrinkage.

4. Vendor Fraud:

Vendor Fraud is intentional theft or inventory loss associated with

vendors, often involving the accurate delivery and return of merchandise.

Typical vendor fraud prevention methods are vendor truck and delivery

audits and detailed receiving.

5. Other Causes: Unrecorded price changes

Internal cost fluctuations

Spoilage/Perishables/Salvage

Inaccurate physical counts

36

Benefits of reducing shrinkage:

Benefits Positive Impact

To Consumer

Lower out of stock & less

frustration

More open merchandising

Greater choice

Higher Consumer

Satisfaction

More convenience

Maintain loyalty

ToRetailer

Lower cost

Higher store loyalty

More efficient replenishment

Increased sales

Customer Retention

Increase profit

Improved market share

On this background of the importance of customer feedback and shrinkage

reduction; the project has been conceptualize to understand various aspects about Food

Bazaar through study of customer feedback and also the reasons to identify shrinkage and

suggest measures for shrinkage reduction and enhancing customer satisfaction.

37

CHAPTER 5

DATA PRESENTATION, ANALYSIS

AND INTERPRETATION

38

Table No. 5. 1: The different sources from where the respondents came to know about

Big Bazaar & its various offers.

Response Newspapers TV Internet Hoardings Friends

No. of

customers34 26 13 21 14

Percentage 32% 24% 12% 19% 13%

31%

24%12%

19%

13%

Response From different sources

NewspapersTVInternetHoardingsFriends

Inference:From the above table we can ascertain that majority of customers i.e.- 32% &

24% came to know about big bazaar & it’s offers from local newspapers & TV

respectively.

Table No. 5. 2: Frequency of purchasing of customers in Food Bazaar.

39

Response

More than

once in a

week

Once in a

weekFortnightly

Once in

MonthRarely

No. of

Customers6 21 8 30 15

Percentage 7% 26% 10% 38% 19%

8%

26%

10%38%

19%

Purchasing Percentage of Customers

More than once in weekOnce in a weekFortnightlyOnce in a monthRarely

Inference:Majority of the customer i.e.- 38% visits store once in month, followed by 26%

customer once in a week. Thus we can say that majority of customer visit Food Bazaar

once in month, may be during weekends. We can conclude that the customer do not visit

Food Bazaar for their petty daily purchase, they are visit to other stores.

40

Table No. 5. 3: The factors which attract customers to Food Bazaar.

ResponseQuality of

products

Offers at

Food

Bazaar

Price of

Products

Availability

of Product

Any

Other

No. of

customers21 28 15 14 2

Percentag

e 26% 35% 19% 17% 3%

26%

35%

19%

18%3%

Factors which attract customers

QualityOffersPriceAvailabilityAny Other

Inference:From the data collected we can determine that most of the customer i.e.- 35%,

visit the store by perception that offers are good at Food Bazaar, 26% for the quality of

product, 19% for price of product & 17% for easy availability of product. From this we

can say that Food Bazaar have to increase their offers & other 3% customers are visit

seeking convenience.

41

Table No. 5.4: Most frequently visited sections in Food Bazaar.

Section Food Non-Food General Merchandise

No. of

customers45 25 10

Percentage 56% 31% 13%

56%31%

13%

Customers favourate section

FoodNon-FoodGeneral Merchandise

Inference:

Most of the customers i.e.- 56% visit food section when they enter Food Bazaar &

31% visits non-food section. So we conclude that non-food & GM section have to

combinely take efforts to attract customers.

42

Table No. 5.5: Ranking of sections as per the amount of time spent by customers in Food

Bazaar.


No. of

customers41 28 11


51%

35%

14%

Ranking of sections


Inference:

Most of the customers who visits to the Food Bazaar, would like to spend more

time in food section which means it shows customer preference towards food section

followed by non-food & GM section respectively.

43

Table No. 5.6: Ranking of sections as per the amount spent by customers in Food

Bazaar.


No. of

customers43 25 12


54%

31%

15%

Ranking of sections


Inference:

From the above table, we can analyze that the customer of Food Bazaar spend

more amount in food section, which shows that food section has different variety of

products that can customer buy. Next customer prefers non-food & then GM.

44

Table No. 5.7: Awareness of private labels.Response Yes No

No. of

customers55 25

Percentage 69% 31%

69%

31%

Awareness of private labels

Yes No

Inference:

From the above table, it is clear that awareness of private labels is good which is

near about 70%. So instead of creating awareness they should try to increase the sale of

private labels.

45

Table No. 5. 8: Awareness about private brands of Food Bazaar.

Product NameTasty

Treat

Fresh &

Pure

Clean

MateDreamline Sach

No. of

Customers34 35 25 31 22

Percentage 23% 24% 17% 21% 15%

23%

24%

17%

21%

15%

Awareness about private brands

Tasty TreatFresh & PureClean MateDreamlineSach

Inference:

From the above table it is observed that private labels of food section are well

known to customers which is in average 47%, private labels of non-food section are

quietly known to customers which is 32% & remaining 21% belongs to Gm section.

Most preferred brands are Fresh & Pure, Tasty Treat & Dreamline respectively

while least preferred brands are Clean Mate & Sach.

46

Table No. 5.9: Effect of various sales promotional offers of Big Bazaar, on the buying of

consumers.

Offer

Names

Wednesday

BazaarMBB

Weekend

Offers

Sabse

Saste 5

Din

Exchange

MelaOther

No. of

Customers22 30 23 24 18 4

Percentage 18% 25% 19% 20% 15% 3%

18%

25%

19%

20%

15%3%

sales promotional offers

Wednesday BazaarMBBWeekend OffersSabse Saste 5 DinExchange MelaOther

Inference:

From the above table, we can analyzed that from regular offers most of the

customers shops once a month in MBB & weekend offers which is 25% & 19%

respectively so offers should be maximize in MBB instead of Wednesday bazaar.

47

Table No. 5.10: Effects of discounts/schemes on buying behavior of the customers in

Food Bazaar.

Response Always Mostly Sometimes Rarely Never

No. of


Percentage 24% 27% 22% 23% 4%

24%

28%23%

23%4%

Effects of discounts/schemes

AlwaysMostlySometimesRerelyNever

Inference:

From the above table it is observed that discounts or schemes strongly affect the

buying behavior of customers so various offers should be increased to increase the

footfall.

48

Table No. 5.11: Perception of consumers about prices of products in Food Bazaar.

Price Very LessModerately

LessSame

Moderately

High

Very

High

No. of


Percentage 11% 40% 25% 14% 10%

11%

40%

25%

14% 10%

Perception about prices

Very LessModerately LessSameModerately HighVery High

Inference:

From the above table it is observed that most of the people perceptions about

products available in Food Bazaar are comparatively less than market price.

49

Table No. 5.12 .1: Level of satisfaction about Quality of products in Food Bazaar.

Satisfaction level

Highly satisfied

SomewhatSatisfied

Neither Satisfied Nor Dissatisfied

Somewhat Dissatisfied

HighlyDissatisfied

No. of Customers

15 47 14 4 0

Percentage 19% 59% 17% 5% 0%

19%

59%

18%5%

level of satisfaction about Quality

Highly SatisfiedSomewhat SatisfiedNeither Satisfied Nor DissatifiedSomewhat DissatisfiedHighly Dissatisfied

Inference:

From above table it is observed that highly satisfied customers are 19%,

somewhat satisfied are 59% which is very good figure, neither satisfied nor dissatisfied

are 17%, somewhat dissatisfied are only 5% & there are no highly dissatisfied customers.

51

Table No. 5.12.2: Level of satisfaction about Price of products in Food Bazaar.

Satisfaction level

regarding Price

Highly satisfied

SomewhatSatisfied



HighlyDissatisfied

No. of Customers

19 31 26 4 0

Percentage 24% 39% 32% 5% 0%

24%

39%

33%

5%

level of satisfaction about Price

Highly satisfiedSomewhat SatisfiedNeither Satisfied Nor Dissat-isfiedSomewhat DissatisfiedHighlyDissatisfied

Inference:


somewhat satisfied are 39%, neither satisfied nor dissatisfied are 32%, somewhat

dissatisfied are only 5% & there are no highly dissatisfied customers.

52

Table No. 5.12.3: Level of satisfaction about Availability of products in Food Bazaar.

Product Availabilit

y

Highly satisfied

SomewhatSatisfied



HighlyDissatisfied

No. of customers

21 34 17 7 1

Percentage 26% 43% 21% 9% 1%

26%

43%

21%

9% 1%

level of satisfaction about Availability


Inference:


somewhat satisfied are 43% , neither satisfied nor dissatisfied are 21%, somewhat

dissatisfied are only 9% & there are only 1% highly dissatisfied customers.

53

Table No. 5.12.4: Level of satisfaction about Accessibility of products in Food Bazaar.

Product Accessibility

Highly satisfied

SomewhatSatisfied



HighlyDissatisfied

No. of customers

14 38 14 11 3

Percentage 17% 47% 18% 14% 4%

18%

48%

18%

14%4%

level of satisfaction about Accessibility


Inference:


somewhat satisfied are 47%, neither satisfied nor dissatisfied are 18%, somewhat

dissatisfied are only 14% & there are 4% of highly dissatisfied customers.

54

Table No. 5.12.5: Level of satisfaction about offers in Food Bazaar.

Satisfaction level

related to offers

Highly satisfied

SomewhatSatisfied



HighlyDissatisfied

No. of Customers

19 38 18 4 1

Percentage 24% 47% 23% 5% 1%

24%

48%

23%

5% 1%

level of satisfaction about offers


Inference:


somewhat satisfied are 47% , neither satisfied nor dissatisfied are 23%, somewhat

dissatisfied are only 5% & there are only 1% highly dissatisfied customers.

55

Table No. 5.12.6: Overall satisfaction level of customers about Food Bazaar.

OverallSatisfaction

Highly satisfied

SomewhatSatisfied



HighlyDissatisfied

No. of Customers

6 64 6 4 0

Percentage 7% 80% 8% 5% 0%

8%

80%

8% 5%

Overall satisfaction level

Highly SatisfiedSomewhat SatisfiedNeither Satisfied Nor Dissat-isfiedSomewhat DissatisfiedHighly Dissatisfied

Inference:

From above table it is observed that highly satisfied customers are 7%, somewhat

satisfied are 80% which is very good figure, neither satisfied nor dissatisfied are 8%,

somewhat dissatisfied are only 5% & there are no highly dissatisfied customers shows the

Food Bazaar is aggressive in overall satisfaction.

56

Table No. 5.13: Likelihood of customers to recommend Food Bazaar to others.

Recommendations

Definitely

will

recommend

Probably

will

recommend

Not

Sure

Probably

will not

recommend

Definitely

will not

recommen

d

No. of

customers22 24 24 6 4

Percentage 27% 30% 30% 8% 5%

28%

30%

30%

8% 5%

Recommendation for Food Bazaar

Definitely will recommend

Probably will recommend

Not Sure

Probably will not recommend

Definitely will not recommend

Inference:

From the above table we can analyze that percentage of definitely & probably

recommendation is quite good which shows the customer loyalty. As well as not sure is

30%, gives the opportunity to make them loyal by giving little push or efforts.

57

CHAPTER 6

FINDINGS, SUGGESTION &

CONCLUSION

58

FINDINGS:

1. It can be said that there is a good impact of newspaper & TV media for the

promotion of Big Bazaar as more than 50% awareness is spread through it.

2. Promotional strategies like Monthly Bachat Bazaar & Wednesday Bazaar have

good response as 38% & 26% respectively, which means these promotional

strategies are resulting into increased number of customers and thereby increased

sales.

3. Significant numbers of Customers are attracted at Food Bazaar because of sales

promotion offers as 35% of respondents came for shopping assuming the great

offers provided by Food-Bazaar.

4. Customers spend more money on food section compared to general merchandise

section as food section caters to basic or daily needs while GM section provides

the products which are required on less frequent basis.

5. There is considerable products awareness of private labels as Tasty Treat has 23%

awareness, Fresh & Pure has 24% awareness, Dreamline has 21% awareness,

Clean Mate has17% awareness &Sach has 15% awareness of total awareness of

private labels. The reasons for purchase of private labels include, less prices of

private labels compared to national products and variety of offers & discounts.

6. It is observed that discounts or schemes strongly affect the buying behaviour of

customers. So the variety and frequency of offers should be increased to increase

the footfall.

7. It is observed that most of the customers’ perception about prices of products in

Food Bazaar is moderately less than market price.

8. Food Bazaar is successful in satisfying almost 80% of its customers. Thus the

overall satisfaction of Food Bazaar is very good.

9. A significant proportion of customers are likely to recommend Food Bazaar to

others, which is an indication of their satisfaction and their loyalty for Food

Bazaar.

10. Major shrinkage occurred in chocolate section of food department due to

employee theft & shoplifting.

59

11. Improper storage of the biscuits, wherein heavily boxes kept on one another,

which resulting into the damage with biscuits, thereby increase in the shrinkage.

12. In Farm fresh section instead of using FIFO method for fruits & vegetables, it was

observed that the new arrival of fruits & vegetables have been kept on top of old

stock, resulting into generation of waste products and thus increased in shrinkage.

60

SUGGESTIONS:

1. As there is good impact of Newspaper & TV Media, Company should continue

promotion with Newspaper & TV Media. Along with that as internet is found to

be one of most frequently used media in urban areas, Big Bazaar should focus on

internet promotion.

2. As customers spend more time & money in food section, other section can be

benefited through this by giving combined offers which results in increase in sale

of other sections too.

3. Awareness of Sach & Clean Mate private labels has to increase by keeping them

at the starting of respective section. Also it is necessary to give product sampling

or free samples with some other private labels which can generate greater sale.

4. As significant numbers of customers are satisfied, now Food Bazaar should focus

on customer delightment. For this some innovative ideas like putting health tips in

food section in front of every food, keeping the boards of recipies can be

implemented.

5. It is necessary to do benchmarking on weekly basis to know facilities & services

provided by competitors. By implementing this Food Bazaar can improve in the

areas in which it is lagging behind the competition.

6. It is necessary to tap the nearer customers for petty daily purchase by providing

home delivery service. In this home delivery service Food Bazaar can supply

daily needs like Fruits & vegetables, milk, bread & toasts etc.

7. Chocolate section should be kept under the CCTV surveillance to avoid the

instances of employee theft & shoplifting. Also an arrangement of bins has to be

done for biscuits to reduce damage of biscuits resulting in reducing shrinkage.

8. As the landing price of Food-Bazaar is very low, company should keep the price

of products bit low by providing offers & discounts; than other competitors to

increase footfall.

9. There is a need of keeping the new arrival of Fruits & vegetables under the old

Fruits & vegetables. Hence the FIFO system is to be maintained in order to reduce

the shrinkage.

61

CONCLUSION:

Food Bazaar is a retail giant providing all goods under one roof. It is a store

which is for price conscious people, it provides them variety or options for purchasing.

As the slogan of Big Bazaar “Naye India Ka Bazaar ” & Food Bazaar’s Slogan “Ab Ghar

Chalana Kitna Aasan”, has been attracted most of the customers. This slogan attracts

many customers & ultimately increases in number of footfalls in Food Bazaar.

According to this study, most of customers are very much satisfied with the

quality of products in Food Bazaar. Also overall satisfaction of customers is very good.

The offers & discounts also attract lot of customers to purchase items from Food Bazaar

rather than outside. Also convenient shopping & self-service attracts the customers. But

in today’s scenario just providing products at cheaper prices is not sufficient for surviving

in the market; people require more than just products, they want the products with

maximum service. Providing quality goods at cheaper prices can be done by any retail

outlets but what can make difference is the services provided by the retail outlets.

Food Bazaar management should now focus on the service part, they should try to

attract new customers and sustain their old customers by providing them high quality

service which will drive them to the store and will not let them move in to any other

store. This service may include providing of instant home delivery services, providing

proper cooling inside the store, billing time reduction, enhancing the ambience of the

store and reducing the chances of customers getting irritated.

In the general merchandise section, the purchasing percentage of customer was

less than other section, while purchasing percentage of food section is very high. Hence

some of combined offers can be developed for both GM and Food section, which will

help to increase sales of GM section also. There were a large percentage of customers

who are somewhat satisfied with the price level. They feel that prices in Food Bazaar are

moderately less than others.

They should now even try to target the affluent class people to purchase from

them by providing high end products. Food Bazaar has already established itself as a

brand; with more customer centric initiatives it can strengthen its brand further in the

market.

62

BILIOGRAPHY

Books:

1. Kotler & Keller, Marketing Management, 14e Edition, Pearson Education,

Pg.120, 206 to 208

2. Dash & Malhotra, Marketing Research: An Applied Orientation, Sixth

Edition, Pearson Education, Pg. 6, 68 to70, 98, 149, 170, 176, 192, 292 to

308, 326, 386, 434, 726 to 734

3. C.R.Kothari, Research Methodology, Second Edition, New age

international publisher, Pg. 1,7,8

4. Paul Freathy, The retailing book: Principles & Applications, Pearson

Education, Pg. 125 to 134, 240 to 242

Company Publications:

1. Annual Report 2009-10

2. Annual Report 2010-11

3. Stock-take Report July 2012

Websites:

1. www.pantaloon.com

2. www.fvrl.com

3. www.economictimes.com

63

http://www.economictimes.com/

http://www.fvrl.com/

http://www.pantaloon.com/

study of customer feedback & shrinkage reduction in food bazaar

Documents

food bazaar

sinhgad road bigbazaar

study of shrinkage

big bazaar management

foodbazaarinbig bazaar

shrinkage store

introduction india

university of pune