Sri Sharada Institute Of Indian Management - Research Approved by AICTE Plot No.

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Market Management Project Report

ON

CRM at Big Bazaar

Submitted To:Prof Sartaj Khera

Submitted By:Ashwani Sharma (20120103) Dheeraj K Das (20120104) Ketan Bhateja (20120106)

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Declaration

We hereby declare that the following project report titled CRM at Big Bazaar is an authentic work done by us. This is to declare that all work indulged in the completion of this work such as research, analysis of activities of an organization is a profound and honest work of ours.

Place: New Delhi

Ashwani Sharma Dheeraj Kumar Das Ketan Bhateja

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Contents
Declaration .................................................................................................................................................... 2 ACKNOWLEDGEMENT ................................................................................................................................... 5 Executive Summary....................................................................................................................................... 6 ARCHITECTURE OF CRM ............................................................................................................................ 7 Operational CRM................................................................................................................................... 7 Analytical CRM ...................................................................................................................................... 8 Collaborative CRM ................................................................................................................................ 9 INTRODUCTION ........................................................................................................................................... 10 The Retail Marketing Revolution ................................................................................................................ 10 An Introduction ....................................................................................................................................... 10 Factors affecting Retail marketing .......................................................................................................... 11 Trends In Retail Marketing...................................................................................................................... 12 Retail Marketing In India ......................................................................................................................... 13 Meaning of Customer Relationship Management (CRM)........................................................................... 13 Goal of CRM ............................................................................................................................................ 14 Evaluation and growth of the CRM ......................................................................................................... 14 Scope and goals of different generations ............................................................................................... 15 Options for Implementing CRM .................................................................................................................. 16 VARIOUS ASPECTS OF CRM ..................................................................................................................... 18 An Integrated Approach to Retail CRM .................................................................................................. 18 Creating retail Value with CRM ............................................................................................................... 19 Technology Enablement ..................................................................................................................... 20 Value Creation Process ....................................................................................................................... 21 Retail Customer Strategy .................................................................................................................... 21 CRM at Big Bazar ......................................................................................................................................... 22 Company Profile (Come To Big Bazaar- Isse Sasta Aur Achha Kahin Nahin) ....................................... 22 GROUP VISION ............................................................................................................................................ 23 GROUP MISSION ......................................................................................................................................... 23 CRM @ BIG BAZAAR.................................................................................................................................... 23 Complaint Handling Procedures: ............................................................................................................ 24 Screening And Logging ................................................................................................................ 24

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Investigating ................................................................................................................................ 25 Acknowledging --......................................................................................................................... 25 Formulating A Solution ............................................................................................................... 25 Responding.................................................................................................................................. 25 Following-Up ............................................................................................................................... 26

CUSTOMER COMMUNICATION............................................................................................................... 26 CUSTOMER GRATIFICATION................................................................................................................ 27 CUSTOMER PERCIEVED VALUE (CPV).................................................................................................. 27 LOOPHOLES (Examples) .......................................................................................................................... 27 Big Bazaar Loyalty ....................................................................................................................................... 28 What is Customer Loyalty ....................................................................................................................... 28 THE SIGNIFICANT FEATURES OF BIG BAZAAR ......................................................................................... 28 PROMOTION TECHNIQUES .................................................................................................................... 29 SALES PROMOTION TECHNIQUES ........................................................................................................... 29 LOYALTY PROGRAMS .............................................................................................................................. 31 THE CUSTOMER EXPERIENCE .................................................................................................................. 34 SWOT Analysis of Big Bazaar ................................................................................................................... 35 CONCLUSION............................................................................................................................................... 37 RECOMMENDATIONS ................................................................................................................................. 38

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ACKNOWLEDGEMENT
We would like to express hearty gratitude to our faculty guide, Prof.Sartaj Khera for giving us the opportunity to prepare a

project report on CRM at Big Bazaar and for her valuable guidance and sincere cooperation, which helped us in completing this project.

Ashwani Sharma Dheeraj Kumar Das Ketan Bhateja

PGDM Batch (2012-2014) Sri SIIM

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Executive Summary

A CRM is a collection of people, processes, software, and internet capabilities that helps an enterprise manage customer relationship effectively and systematically. The goal of CRM is to understand and anticipate the needs of current and potential customer to increase customer retention and loyalty while optimizing the way product and services are sold. CRM stands for Customer Relationship Management. It is a strategy used to learn more about customers needs and behaviors in order to develop stronger relationships with them. After all, good customer relationships are at the heart of business success. There are many technological components to CRM, but thinking about CRM in primarily technological terms is a mistake. The more useful way to think about CRM is as a process that will help bring together lots of pieces of information about customers, sales, marketing effectiveness, responsiveness and market trends The objective is to capture data about every contact a company a company has with a customer through every channel and store it in the CRM system to enable the company to truly understand customer action. CRM software helps an organization build a database about its customer that management, sales people, customer service provider and even customer can access information to access customer needs with product and offering.

Marketing Automation is the most comprehensive campaign management solution available. It provides everything needed to turn raw, disparate customer data into profitable marketing campaigns all the way through inception, execution and measurement.

Marketing Optimization applies sophisticated mathematical approaches to optimize marketing campaign ROI given limited budgets, channel capacities and other organizational constraints. The idea of CRM is that it helps businesses use technology and human resources to gain insight into the behavior of customers and the value of those customers. If it works as hoped, a business can: Provide better customer service
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 Make call centers more efficient Cross sell products more effectively Help sales staff close deals faster Simplify marketing and sales processes Discover new customers Increase customer revenues

ARCHITECTURE OF CRM
There are three parts of application architecture of CRM: 1. Operational - automation to the basic business processes (marketing, sales, service) 2. Analytical - support to analyze customer behavior, implements business intelligence a like technology 3. Collaborative - ensures the contact with customers (phone, email, fax, web, sms, post, in person)
Operational CRM

Operational CRM means supporting the "front office" business processes, which include customer contact (sales, marketing and service). Tasks resulting from these processes are forwarded to employees responsible for them, as well as the information necessary for carrying out the tasks and interfaces to back-end applications are being provided and activities with customers are being documented for further reference.

According to Gartner Group, the operational part of CRM typically involves three general areas of business:

Sales Force Automation (SFA): SFA automates some of the company's critical sales and sales

force management functions, for example, lead/account management, contact management,

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quote management, forecasting, sales administration, keeping track of customer preferences, buying habits, and demographics, as well as sales staff performance. SFA tools are designed to improve field sales productivity. Key infrastructure requirements of SFA are mobile synchronization and integrated product configuration.

Customer Service and Support (CSS): CSS automates some service requests, complaints, product

returns, and information requests. Traditional internal help desk and traditional inbound callcenter support for customer inquiries are now evolved into the "customer interaction center" (CIC), using multiple channels (Web, phone/fax, face-to-face, kiosk, etc). Key infrastructure requirements of CSS include computer telephony integration (CTI) which provides high volume processing capability, and reliability.

Enterprise Marketing Automation (EMA): EMA provides information about the business

environment, including competitors, industry trends, and macroenviromental variables. It is the execution side of campaign and lead management. The intent of EMA applications is to improve marketing campaign efficiencies. Functions include demographic analysis, variable

segmentation, and predictive modeling occur on the analytical (Business Intelligence) side.
Analytical CRM

In analytical CRM, data gathered within operational CRM and/or other sources are analyzed to segment customers or to identify potential to enhance client relationship.

Analysis of Customer data may relate to one or more of the following analyses: 1. Contact channel optimization 2. Contact Optimization 3. Customer Segmentation 4. Customer Satisfaction Measurement / Increase 5. Sales Coverage Optimization

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6. Pricing Optimization 7. Product Development 8. Program Evaluation

Data collection and analysis is viewed as a continuing and iterative process. Ideally, business decisions are refined over time, based on feedback from earlier analysis and decisions. Therefore, most successful analytical CRM projects take advantage of a data warehouse to provide suitable data.
Collaborative CRM

Collaborative CRM facilitates interactions with customers through all channels (personal, letter, fax, phone, web, e-mail) and supports co-ordination of employee teams and channels. It is a solution that brings people; processes and data together so companies can better serve and retain their customers. Collaborative CRM provides the following benefits: Enables efficient productive customer interactions across all communications channels Enables web collaboration to reduce customer service costs Integrates call centers enabling multi-channel personal customer interaction Integrates view of the customer while interaction at the transaction level

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INTRODUCTION
It is not enough to have great qualities, we should also have the abilities to manage them. The same concept can also be applied in an organization. For e.g. a company may produce a very high quality products but it wont be able to succeed if it fails to manage or satisfy their customers. According to Harward Business Review an exceptionally satisfied customer is 6 times more likely to buy again as one who is merely satisfied & only 5% increase in customer loyalty can boost profit from 25% to 85%. Thus all these quotes & experts opinion highlights the importance of Customer Relationship Management. Customers are considered to be king of every business enterprise and loyal customers are the backbone of their business. So customer satisfaction is the primary motive of every business which can be attained through effective CRM (Customer Relationship Management) policy.

The Retail Marketing Revolution

An Introduction
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

By 2010, the list of India's top 10 retailers will have at least 5 Indian corporate. Retail Marketing will go through a tremendous change in India this millennium. It will change India's cities, its people, and its households. The Indian consumer is reportedly the largest spender in Singapore and London. It is, therefore, strange that there have, so far, been few efforts to present the product in the right kind of environment in India.
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Indeed, the right shopping experience does induce Indian consumers to spend more. This is evident from the experiences of retail-outlets like Music World, Big Bazaar, Spencers, Crosswords, The Home Store, Ebony, Bigjos, Saboos, Standard, Nanz, Vijay Store and Janaki Das & Sons, Westside etc.

Factors affecting Retail marketing

Government: The first among these is the government. In a country as big as India and with
as many states as ours, it is imperative that the Central government and all state governments bring in Value Added Taxation or a unified taxation system to ensure that the tax-regimes are the same across the country.

The laws governing retail real estate should also be looked into, so that it is possible to develop retail-estate beyond the city-limits. Apart from providing entertainment and retail opportunities, this will also decongest the city center and facilitate the development of suburbs. The relevant rules should also be amended to allow retail-stores to operate 7 days a week, 12 hours a day.

Nuclear Families: Given the hours most urban consumers keep at work, and keeping in mind
the increase in the number of nuclear families, this may, indeed, make sense. This will also help people enjoy their evenings, out at malls.

Developers: The second group, whose participation is essential in making retail a boom-sector
in this millennium, comprises developers. Most properties are developed without considering the end user; thus, we sometimes find high-Ceilinged offices and low-ceilinged retail stores. Often, the shopper's convenience is not taken into consideration while the property is constructed.

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Trends In Retail Marketing

At this point, it is very important to 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:

Trends in retail marketing

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

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Retail Marketing In India

There are various ways of making 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-good 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. Restrictions on intra-state good movement. High taxes. Less exposure to media. High import duties on imported goods. FDI in retailing is just allowed.

Meaning of Customer Relationship Management (CRM)

CRM is a comprehensive strategy & process of acquiring & retaining customers to create superior value for the company as well as the customers. It consists of the processes a company

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uses to track and organize its contacts with its current and prospective customers. To support these processes, various CRM Software like SAP, ORACLE Sales force.com etc are used. These software record and store information about customers, various customer interactions, their problems etc which can be accessed by employees in different departments of the company. These information are used by the organization to make future plans that can satisfy the customer on a better way and retaining them for a longer period.

Goal of CRM
The goal of CRM is to provide improved services to the customers, and to use customer contact information for targeted marketing.

Evaluation and growth of the CRM

CRM passes through three generations such as 1st generation in 1990, 2nd generation in 1996 and the 3rd generation in 2002. In 1st generation following systems were applied for CRM Call centre management- It is a web based CRM technology, the enables users browsing a companys web site to leave a phone number where company representative can call back with more information. Customer service support- It is a part of a companys CRM department that interacts with a customer for their immediate benefits. Sales force automation- It is software that automates business tasks like inventory control, sales processing, customer interaction, etc Campaign management- It is a planning, executing, tracking and analyzing of direct marketing campaigns.

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In 2nd generation following improved systems were used for CRM: Integrated customer facing front end- It is face to face interaction between the customers and sales man. This system is used for marketing, sales and services. ERP integrations- ERP stands for Enterprise Resource Planning. It is a business management system that integrates all functions of the business. Customers analytics- It comprises all the programming that analyzes data about an enterprises customers for business decision. Complete web integration- It allows end users to have access the data function of a serve hosted application through internet browser window.

In 3rd generation the strategic CRM was followed and is continuing- Strategic CRM updates and expands the original content and combines into one, convenient value that guides users through the entire CRM implementation process, from strategic planning software.

Scope and goals of different generations

There is successful increment in the scope of CRM from 1st generation to 3rd generation. In 1st generation the scope consists of service function and sales function, in 2nd generation it includes another function i.e. marketing function and in 3rd generation it includes entire function of the organization. Goals of the CRM have also changed with better customer service from 1st generation to 3rd generation. In 1st generation the goals were improve service operation and increase sales efficiency, in 2nd generation reduce cost of interaction, improve customer experiences, and increasing the customer interaction; in 3rd generation cost reduction & revenue growth and competitive advantages.

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Options for Implementing CRM

Increasing customer is not the ultimate objective of any organization but to retain customer and t build long term relationship with them is important. It is only through CRM that a prospect can be turn into customer and then finally into a client. But to achieve these any organization require proper implementation. But at the same time CRM implementation is a challenging task because it ties together many people, process, technologies within the organization which are separate from each other.

1) IN HOUSE DEVELOPMENT- This means all the strategies, processes are developed and implemented within the organization. Advantage1. It is tailored made according to organization needs and structure thus is flexible as compared to others. 2. Avoid dependency on others be it software or outsourcing. Disadvantage 1. It is at the same time expensive 2. And comparatively takes longer time depending on the organisation.

2) BUY LICENSED CRM SOFTWARE- This is purchasing software and implementing in organization. Advantage1. Usually the maximum chance of success. 2. It just need to install and trained the workforce accordingly.

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Disadvantage1. Again it is expensive because of many costs as license cost, renewal cost etc. associated with it. 2. Adding new software with change is a complex task.

3) OUTSOURCING A MANAGED SERVICE- This means hiring from outside. Advantage1. Most of the times lower cost. 2. Can adopt pay- as- you go approach with visible result. Disadvantage1. For any new requirement needs to contact the company and pay for the development. 2. Also there is a risk of losing CRM solution investment if outsourcing company goes out of business

Implementing CRM: The Decision Process

Decision To Implemen t CRM Purchase and install a complete CRM solution from a vendor
YES

Stage-wise implementation

Implement an enterprise-wide CRM program

Entirely outsource the CRM application process

NO

In house development

STAGEWISE- In this CRM software is offered in different, independent modules, according to specific department needs.
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Company buys sales automation software and contact management module from different providers. ENTERPRISE WISE CRM SOLUTION- This is composed of different modules from same providers; it is implemented as a whole by connecting different modules and existing database.

VARIOUS ASPECTS OF CRM

CRM includes many aspects which relate directly to one another: Front office operations Direct interaction with customers, e.g. face to face meetings, phone calls, e-mail, online services etc. Back office operations Operations that ultimately affect the activities of the front office (e.g., billing, maintenance, planning,

marketing, advertising, finance, manufacturing etc.)

An Integrated Approach to Retail CRM

Retailers face intense performance pressure from a host of sources. These include increased competition for new customers from aggressive competitors, declining customer loyalty due in part to a saturation of programs and cost/value conscious consumers, and pricing and discounting pressures that consumers have been trained to search for, enabled by new media. The need to be relevant to the customer is more vital than ever as consumers take control of the ways they choose to engage with your brand. The digital revolution is enabling this shift from a marketing push to consumer pull, while simultaneously propelling an increase in marketing complexity due to the convergence of multiple media. Retailers need to transform to leverage customer behaviors and engagement and need to react quickly to create relevance and trust with todays consumer. The changes required to achieve this transformation are not trivial yet can be approached systematically for quick wins and long-term growth. Retailers must develop, implement and
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integrate more advanced technology and analytic and strategic approaches to maximize marketing ROI. This paper presents a basic framework for thinking about the key areas of focus and provides cases studies to show how improved technology, analytics and strategy can increase program ROI.
Retail Challenges:

Retailers continue to face these key challenges: Identifying and knowing the shopper though a 360 view Driving incremental store traffic and demand through effective marketing Increasing customer loyalty by better management of the relationship

Creating retail Value with CRM

To create a customer-centric retail CRM strategy, there are three key tiers to consider. This approach combines retail CRM strategy, analytically driven marketing tactics and a robust marketing technology infrastructure to improve return on marketing investment (ROMI). Integrating each of these elements creates the opportunity to address each of the key challenges faced by todays retailer. This starts with the foundational technology infrastructure to identify the customer, integrate all the data assets about the customer, and provide easy access to that data, which can be analyzed to uncover key insights. Based on the access to quality, complete data, we can apply advanced analytics to create marketing programs designed to positively change customer behaviors. To close the cycle, measurement and attribution solutions ensure that we know what is working and what is not, so we can continually update and adapt marketing levers. This basis of technology-enabled analytics is the foundation to building relevant retail CRM strategies to inform not only the marketing function, but also drive insights to store operations, merchandising and customer service applications and touch points.

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Creating Retail Value with CRM

Technology Enablement

In order to enable retail value creation and CRM strategy, it all starts with an integrated technology platform tofacilitate customer management across media and channels. A complete retail marketing technology platform essentially enables the following three core functions: Identification: An identification process to link transactions to individuals Integration: A customer data integration process that leverages offline and online data to bring disparate data sources together and manage the 360 view of the customer

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 Access: System and user access points and applications including campaign management, reporting, analytics

Going forward, to drive world-class CRM and facilitate the value creation process, the technology platform needs to transform into a true marketing enabler as opposed to what is often a constraint to growth and progress.

Value Creation Process

The value creation process is the maximization of customer value over time. To do this, retailers must have access to advanced analytics to leverage the data about the customer deep experience about the industry to properly apply the analytic outcomes. This combination will create a differentiated and strategic competitive advantage to achieve business goals through development of specific customer-centric programs. Begin with analyses to help understand the dynamics of the customer lifecycle, to determine which customers are delivering the most value for the organization, and identify the key behavioral characteristics of high-value consumers. From those insights, retailers should create analytically informed targeting solutions based on predictive models to help identify customers with a high propensity to exhibit these high-value desired behaviors. These consumers are then targeted for integrated, multi-media communications designed to increase their long-term value as we redeploy resources previously allocated to less effective categories. All programs are measured to determine incremental ROI, while intensive multivariate testing will drive ongoing program improvement.
Retail Customer Strategy

This is an Integrated Customer Marketing framework to guide businesses through the complexities of maximizing customer value. The framework focuses on optimizing the customer lifecycle,marketing spend and campaign performance to drive long-term customer value. The primary premise in ICM is that the customer portfolio, the combination of existing and potential customers, is a retailers most strategic asset. In our opinion, competitive advantage that drives

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shareholder value will be created by those organizations that can most effectively understand, track, engage, measure and influence consumers at the individual level over time. Retailers must first start by understanding key business challenges, long-term goals and pain points. Then, benchmark those current practices and existing capabilities to industry best practices using retailspecific CRM roadmaps. Based on the outcomes of this process, identify high-priority initiatives that will most improve customer value.

CRM at Big Bazar

Company Profile (Come To Big Bazaar- Isse Sasta Aur Achha Kahin Nahin)
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.

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.
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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, Everytime 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.

CRM @ BIG BAZAAR

Database is formed through the issue of future card and card is of three types silver card, gold card and sakthi card. Sakthi card is issued to ladies and this card provides, free sugar(1 kg) per month.

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Customer profitability analysis (CPA) is done on the basis of transactions made through the future cards. o Platinum customers (most profitable). o Gold customers (profitable). o Iron customers (low profitability but desirable). o Lead customers (unprofitable and undesirable).

Differentiate customers in terms of: (1) Their needs (2) Their value to company. Interact with individual customers to improve the knowledge about individual needs and to build stronger relationships. There are four type of analysis done for analysis of CRM

o Periodic Surveys: Its done on quarterly, its an overall survey done by the future group authorities and CRM is a part of it. o Customer Loss Rate : o Mystery Shoppers: They pose as normal customers perform specific taskssuch as purchasing a product, asking questions, registering complaints or behaving in a certain way and then provide detailed reports or feedback about their experiences o Monitor Competitive Performance

Complaint Handling Procedures:

Screening And Logging

-- The type of product or service; manufacturer/brand name;

model name/number; date of purchase/contract; warranty expiration date; salesperson; cost of product/service; date problem occurred; and a description of the

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problem is listed. This allows organization to exercise control, and assure proper follow-through.

Investigating

-- customer's explanation of a problem provides much information.

Nevertheless, to assure they have all the information needed for a thorough review of the facts involved, by: o Researching in-house records on the customer; o Requesting receipts, or other records; o Inspecting the product, or service performed; and o Following-up with the customer for any necessary additional information.

Acknowledging --

When Big Bazaar cannot resolve an issue immediately, it is

important to let customer know that the matter is receiving attention. Customer is given information about how long it will take to complete action on the complaint. If there is further delay, its made sure to advise customer why and when Big Bazaar expects to have an answer.

Formulating A Solution

-- solution is made to be consistent with established

customer relations policy and important criteria are taken into account: o Contractual and/or warranty obligations; o The customer's expectations; o expectations of the customer; o The cost/benefit of alternative solutions; o The probability and cost of customer seeking redress in some other way; o The comprehensiveness and fairness of solution; o ability to perform the solution; and o What to do if the customer rejects solution.

Responding

-- The response is made clear and appropriate. The customer must

understand the response, and the response must address the issues raised in the

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customer's original complaint. An explanation of decision preserves the goodwill of customer, even if the decision itself is adverse. Customer is contacted following response to verify whether or not

Following-Up

the matter has been resolved satisfactorily. If customer is unhappy with response, organization refers the matter to a third party dispute resolution mechanism for assistance.

Steps Involved in customer Satisfaction through Service:

o Seeing problems from the customers perspective o Managing customers' "moments of truth" o Communicating effectively through better listening o Analyzing how customer perceptions are formed o Managing anger and other service behaviors o Dealing with long-term consequences of service breakdowns o Negotiating solutions o Generating an action plan for improved on-the-job effectiveness

CUSTOMER COMMUNICATION
Future group maintains its records of customers by observing their purchasing habits & categories them into various groups like high revenue, moderate revenue & low revenue customers. They communicate to the customers through various medium like SMS,E-mail, Mobile vans, Print media etc.This is the way to built a strong presence in the existing customers & prospective customers. Presently they are using oracle software to maintain database. Recently they have tied up with California based firm GREENPLUM to provide new software for data warehousing.

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The company boasts strong share of its profits from top line customers who provide them around 70% of their revenues in total. The company can said to be going on the famous management principle i.e. 80/20 PRINCIPLE which says that 20 percent of variables cause 80% effect. In big bazaar it can be related to the fact that 20% of its top line customers provide 80% of its revenues in a year. This is the reason why the retail giant is focusing strongly on customer retention in order to boasts its sales numbers substantially.

CUSTOMER GRATIFICATION

is an important element of a sales process. Every company should

survey their customers in order to find out the satisfaction level among the consumers. Big bazaar also conducts periodic surveys in order to ascertain the satisfaction level in their consumers. Various activities are done in order to enhance the shopping experience among buyers & various offers, discount coupons; exchange offers are initiated by the firm in order to develop a good satisfaction level in their existing customers. Special coupons are given to customers who can be redeemed by the costumers in their future purchases from the store.

CUSTOMER PERCIEVED VALUE (CPV)

is calculated by the retail store in order to asses the costs

and benefits received & given to the buyers. The following are some key features of CPV 1. CPV is the difference between the prospective customers evaluation of all the benefits and all the costs of an offering and the perceived alternative. 2. Total customer value is the perceived monetary value of the bundle of economic, functional & psychological benefits customers expect from a given market offering. 3. Total customer cost is the bundle of costs customers expect to incur in evaluating, obtaining, using, disposing of the given market offering, including monetary, time, energy & psychic costs.

LOOPHOLES (Examples)
The retail store has also various loopholes especially here at ranchi.The major drawback which was found out initially was lack of proper parking place but now it has been corrected to some extent. Secondly the store is very slow in execution of online orders which is given through
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company web portal FUTURE BAZAAR. To quote a few examples of late delivery Mr. David Kerketta,a resident of lalpur-peace road purchased a furniture for Rs 37000,the date of scheduled delivery was 15th of November,2008 but he received his order 37 days late. One more incident of such late delivery is MR Pradeep Kumar, a resident of Upper Bazaar who purchased a dining table for Rs. 15000,but as usual he got his final delivery a whopping 65 days late than the scheduled date of delivery. So these incidents speak a lot of inefficient delivery. The other drawbacks are inefficient billi.ng counters as they are not updated with the current offers and schemes. Also the billing counters remains unmanned that add to the problem of customers who needs to stand in long queue in order to get their purchases billed. The other problem is related to the slow processing of applications of membership cards like Shakti card, future cards etc.It takes around 30 days minimum to become a member of future card schemes. This is very slowly considering the industry average of 15-20 days to process a card. Finally the contact numbers of customers are open to the telemarketing personnel as they get the database from the future group through some sources or the other.

Big Bazaar Loyalty

What is Customer Loyalty
Loyalty Program can be defined as a program that allows consumers to accumulate free rewards when they make repeated purchases with a firm. (YupingLiu, 2007)

THE SIGNIFICANT FEATURES OF BIG BAZAAR

Food bazaar. Electronic bazaar. Furniture bazaar. FutureBazaar.com Telecalling services.(T24)

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PROMOTION TECHNIQUES
Big Bazaar - Isse sasta aur accha kahin nahi :- Big Bazaar has adopted value pricing in which they win loyal customers by charging a fairly low price for a high quality offering. Wednesday Bazaar Hafte ka sabse sasta din :- In January 2007, Big Bazaar introduced a Wednesday Bazaar concept called Hafte Ka Sabse Sasta Din with the aim to give homemakers the power to save the most on this day of the week Sabse Saste panch Din (Big days) :- In 2006 they started a new shopping festival, i.e. Sabse Saste panch Din on 24, 25 ,26,27,28 and 29th of January. Big bazaar throwed up to 65% of on each & every products in he store for three days. Big Bazaar announced The Great Exchange Offer with a Bring anything old and take anything new concept which started from the 16th of Feb 2008 at the Landmark store.

SALES PROMOTION TECHNIQUES

Price promotion:- Price promotions are also commonly known as" price discounting". These can be done in two ways: *A discount to the normal selling price of a product *More of the product at the normal price. Coupons:- Use of coupon promotions is often best for new products or perhaps to encourage sales of existing products that are slowing down.

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 Gift with purchase:- The "gift with purchase" is a very common promotional technique. In this scheme, the customer gets something extra along with the normal good purchased such as perfumes and magazines etc. Competitions and prizes:- This is an important tool to increase brand awareness amongst the target consumer. It can be used to boost up sales for temporary period and ensure usage amongst first time users.

Money refunds:- Here, a customer receives a money refund after submitting a proof of purchase to the manufacturer. Point-of-sale displays:- Shopping habits are changing or the people living in metropolitan cities. People prefer big retail outlets like Big Bazaar to local kirana stores. Most of the decisions of buying are taken by the virtue of point-of-sale displays in these retail outlets. Frequent users/ loyalty incentives:-Repeat purchases may be stimulated by frequent user incentives. Perhaps the best examples of this are the many frequent flyer or user schemes used by airlines, train companies, car hire companies etc.

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LOYALTY PROGRAMS

Customer Loyalty measures are designed for the people within a company who dictate the strategic direction of the company. These measures evaluate the performance of a companys current customer base and drive the future direction of a companys overall customer strategy. Big bazaars loyalty programs are comprised of: Membership card Discount Shop at home
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 Home delivery

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THE CUSTOMER EXPERIENCE

The customer experience is comprised of the following components:-

POPULATING THE CUSTOMER PROFILE:- To create the Ideal Customer Experience, Big Bazaar populates the Customer Profile with the relevant information .

DELIVERING AND RECEIVING VALUE AT EACH CUSTOMER

INTERACTION:- Big Bazaar views each interaction as a golden opportunity to deliver value through its products, services, and processes, as well as to receive valuable information from the customer in the form of feedback.

CUSTOMIZING THE CUSTOMER EXPERIENCE:- By understanding an individuals needs, it creates the Ideal Customer Experience by customizing the products, services, and processes to meet the needs of the individual customer

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SWOT Analysis of Big Bazaar

Strength
Prime location 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 management Highly trained and motivated sales force 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 Ahmedabad, Pune, Lucknow, Indore and Coimbatore have shown substantial retail presence. Most sport modern retail formats

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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

Threats:
The time when retailers had to worry about competition only from their peers down the street has come to an end. Food Bazaar is now facing increased competition in the form of international retail chains that are making a beeline towards the highly potential Indian markets. Moreover many big Indian business houses are also vying a space in the Indian retail scene

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CONCLUSION
Transformation by integrating customer facing front-end with back-end systems and partners and suppliers. This will effectively help in generating better filtered data source from feedbacks received. Also the feedbacks will be dealt with in a much more careful and professional way. Growth of CRM facilitated by growth of IT. In this age of Information Technology an effective IT planning on the CRM can help the organization earn a lot of repute. New database solutions. This will help to filter and clean the raw data received from feedbacks more efficiently. Mutual benefit through CRM. The stores and their customers can mutually benefit through the application of CRM. So at this era of customers, the companies should project themselves as customer oriented as possible to help them benefit in a long term survival plan. Effective segmentation of customers. With more and better quality of data, this can be done very easily. Enhancing the shopping solutions. This is the age of innovation. Especially in Indian markets, low cost innovation is the ultimate tool to win the battle for the companies. Thus, the companies need to be innovative with their ideas and always try to deliver the customer with some added value for their purchase.

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RECOMMENDATIONS
Many CRM project "failures" are also related to data quality and availability. Data cleaning is a major issue. If a company's CRM strategy is to track life-cycle revenues, costs, margins, and interactions between individual customers, this must be reflected in all business processes. Data must be extracted from multiple sources (e.g., departmental/divisional databases such as sales, manufacturing, supply chain, logistics, finance, service etc.), which requires an integrated, comprehensive system in place with well-defined structures and high data quality. Data from other systems can be transferred to CRM systems using appropriate interfaces. Because of the company-wide size and scope of many CRM implementations, significant preplanning is essential for smooth roll-out. This pre-planning involves a technical evaluation of the data available and the technology employed in existing systems. This evaluation is critical to determine the level of effort needed to integrate this data. Equally critical is the human aspect of the implementation. A successful implementation requires an understanding of the expectations and needs of the stakeholders involved. An executive sponsor should also be obtained to provide high-level management representation of the CRM project. An effective tool for identifying technical and human factors before beginning a CRM project is a pre-implementation checklist. A checklist can help ensure any potential problems are identified early in the process.

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