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Marketing Management
Assignment : 1
Marketing & Finance
Syndicate:10 5/1/2012

Abhishek Pardeshi Sidhartha Jain Rohith Raju Manoj M.J Mohit Seth Puneet Pal Singh

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Big Bazaar
Founded in 2001, by its founder and Group CEO, Mr. Kishore Biyani. It has its Headquarter in Mumbai, India. The format followed by Big bazzar is a Retail Format of Hypermarket. Owned by Future Group, is one of India's leading business houses with multiple businesses spanning across the consumption space. It has about 133 outlets in major Tier 1 and Tier 2 cities across India. The target market of Big Bazaar is the higher and upper middle class-customers. The large and growing young working population is a preferred customer segment.

Lets study the 7Ps of Marketing mix w.r.t Big Bazaar.

Big Bazaar offers a wide range of products in:1. Apparels & Footwear 2. Food 3. Farm Products 4. Chill Station 5. Home & Kitchen 6. Electronics Appliance 7. Toy & Stationery 8. Mobiles 9. Bags & Luggage 10. Fashion & Jewellary 11. Furniture Bazaar Big baazzar is the place where you can find almost all the cheaper products for the shopping. Pricing based on Value for money concept; take a look at the tagline Is se sasta aur achha kahin nahi! Special Occasions pricing during new year, festivals, etc. Especially during festive season, they offer best prices for the products which are very less from the local market like the campaign Sabse Saste Teen Din Time Pricing:- Time-based pricing is a special case of price discrimination in which producers charge different rates for a given good or service depending on

the time, day, month, and so on like WEDNESDAY BAZAAR- Hafte ka sabse sasta din

Promotion techniques used at Big Bazaar include "Saal ke sabse saste teen din", Future Card (the card offers 3% discount) Brand Endorsement by M. S. Dhoni, Exchange Offer - Junk Swap Offer, Point-of-Purchase Promotions. Advertising has played a crucial role in building of the brand.

Big Bazaar has presence in almost all the major Indian cities. Big Bazaar stores are located in 74 cities with 133 outlets. They are aggressive on their expansion plans and will be targeting rural sector in India. In all, the group would set up about 60 Big Bazaar stores in the next one-and-a-half year, and has identified 25 locations as of now. Big Bazaar aims at starting stores in developing areas to take an early advantage before the real estate value booms. They take into consideration:

Future/potential development areas Population of a given area Major roadways in the vicinity High Traffic area Demographics of the area

The people who work at the front end of a retail organization are very important, as they are the face of the organization for the customers. Staff should have the appropriate interpersonal skills, attitude, and products knowledge plays a very vital role in building long term relations with the customers. At Big Bazaar Employees are:

Well trained staff at stores to help people with their purchases Well-dressed staff improves the overall appearance of store Willing to help attitude Well groomed Use Scenario Planning as a tool for Quick Decision Making Security guards at all gates

It is the procedure, mechanism and flow of activities by which services are used. Also the 'Procedure' how the product will reach the end user.

There are multiple counters with trolleys to carry the items purchased. Proper display of products (in systematic and orderly manner) Posters of the product in a particular place like (DAL, SOAP, etc.). Proper Inventory Management & Control

Physical evidence is the material part of a service. Big Bazaar has counters where you can touch wheat, rice, sugar, etc., before purchasing. Advertisements about schemes and offers through local newspapers, radio in local languages, inspires customer more than the traditional ways. For Indians, shopping is an entertainment; they come in groups, with families so Big Bazaar offers something for every section of family. Their newspaper advertisements are present just before launch of any new scheme. This creates aura about the Big Bazaar brand in the minds of customers. Big Bazaar bill-boards are displayed on prime locations in various cities as a brand building exercise. They display the catch-phrases now-a-days. For a retailer, location is one of the most important things. The strategic decisions to secure spaces before other retailers join in have resulted in creating early presence in market. Big Bazaar has:-

Large & Ambient shopping space Well organized Categorically divided area

SWOT Analysis:
1. Strength
Product of different price range. Product availability. Dedicated customer service. Loyalty program. Store location. Point of purchase promotion

Variety of stuff under 1 roof Good employee-employer relation Increase sales through healthy competition between different departments

1. Weakness

Low employee retention level at shop floor. Shrinkage rates or higher than industry norm. Merchandize & product focus not consistent & clear. Floor level customer relationship executive not having proper product service knowledge due to lack of proper training. Unable to meet sales target.

1. Opportunity

Geographical expansion tier to entire to cities. Untapped luxury segments more effective online shopping. Custom tailored business. Evolving consumer preferences.

1. Threats

Economy slowdown & scanty rainfall. Competition from the domestic players Hyper City, Mega mart. Competition from the foreign players Correfour, Tesco, Wallmart Government policies.

Service Marketing TRIAD:

1. External Marketing setting the promise

Marketing to end user. (Big bazaar used following schemes) Saal Ke Sabse Saste Tin Din Wednesday bazaar Exchange offers (junk swap offer) Future Card (3%discount) Shakti Card. Brand endorsement by MS Dhoni & Asin.

Pricing Strategy. Low price high volume. Everyday low price. Differentiated pricing (difference in rate based on pack and non pack hours & days of shopping). Bundling (combo pack).

1. Internal Marketing. Enabling the promise

Employee motivation through culture building, performance management, people process, leadership excellence, compensation & reward, training & development Gurukul (future learning & development LTD) Awards like Golden Hat. Suggestions program.( Prerna).

1. Interactive Marketing. Movement of truth service encounter

Well trained staff at stores to help people with their purchases. Multiple counters where bill can be generated. Delivery of purchases for more than RS 1000. Performance measurement by research agency ( micro market analysis & customer research) To improve this started in house incentive called Pragati to access store performance.

Porters Five Forces

A formal industry analysis such as Michael Porters Five Forces Model is more in depth than simply looking for trends and general industry information. It can also help you better develop successful marketing strategies. The analysis can provide insight into both your online and offline competitive environments. In the Five Forces Model, Porter explains that in any industry there are five forces that influence what happens within the industry:

1. Existing companies, 2. potential new companies, 3. substitutes for products offered, 4. the suppliers, and 5. the customers. These five forces combine to make up the business environment. By studying the structure of and dynamics between these forces, you can discover opportunities for improving upon your marketing strategies. Porter designed his basic model to be applied to an entire industry. The same analytical method, however, could also be used to study a narrower universe, such as online presence within an industry. Five forces model for Big Bazaar

1. Competitors:
The existing competitors are Reliance retail, Aditya Birla group, Vishal retails, Bharti-Walmart.

1. Potential new entrants:

Domestic conglomerate looking to start retail stores. Introduction of FDI policy not favourable. International players to foray India.

1. Bargaining power of Buyers:

Consumers are price sensitive. Availability of more choice.

1. Bargaining power of Suppliers:

It varies depending upon the target segment. Unorganized sector have dominant position. There players have slight edge over others on account of being established players or having First Movers advantage. Scanty rainfall may lead to scarcity of food-grains giving suppliers an opportunity to bargain.

1. Threats of Substitutes:
Unorganized retail This analysis only borrows Porters forces to lend structure. His full analysis goes beyond the information gathering and cursory analysis explained here. By fully utilizing Porters strategic methods you can gain an even clearer picture of the industry, resulting in sounder marketing strategies. To fully appreciate Porters model, study his two classics, Competitive Strategy and Competitive Advantage.

Gap model:

As companies continue to move forward, they are consistently challenged with making investment decisions on which new geography markets to expand into, what new business verticals to compete in and what type of development staff they should hire. Incorrect decisions can waste investment funding and delay time to market, or worse, create corporate chaos that affects the very foundation of the firm's financial stability. One way to minimize incorrect business decisions is through the use of Market Gap Analysis as a decision tool to help executive teams identify and validate the potential for new market opportunities, current market penetration success capabilities and investment criteria for new product or service options.

Gap analysis is the process through which a company compares its actual performance to its expected performance to determine whether it is meeting expectations and using its resources effectively. Gap analysis seeks to answer the questions "where are we?" (Current state) and "where do we want to be?" (Target state). Conducting a gap analysis can help a company re-examine its goals to determine whether it is on the right path to be able to accomplish them. A company will list the factors that define its current state, outline the factors that are required to reach the target state, and then determine how to fill the "gaps" between the two states. Gap analysis involves internal and external analysis. Externally, the firm must communicate with customers. Internally, it must determine service delivery and service design. Continuing with the service quality example, the steps involved in the implementation of gap analysis are: Identification of customer expectations Identification of customer experiences Identification of management perceptions Evaluation of service standards Evaluation of customer communications

Gap 1:
Between customer expectation and management perception of customer expectation.

Gap 2:
Between management perception of customer expectation and service quality specification.

Gap 3:
Between service quality specification and service delivery

Gap 4:
Between service delivery and external communication to customer

Gap 5:
Between expected service and perceived service. In the current business scenario with stiff competition and uncertain business conditions .Its essential for any organization to secure the most important asset-customers.

Thus it becomes imperative to ensure customer services by delivering quality services at best prices. We considered the secondary data ,published in a white paper presented by IMT, Ghaziabad students. The study is as below:

Research Methodology Area of study

: Customers of Food bazaar in Delhi.

Research Design
: The research being descriptive in nature encompasses factors such as age, time, needs of the customers, preference of the customers and awareness.

Random sampling with

SAMPLE SPECIFIC: Customers of Big Bazaar SAMPLE SIZE: 95SAMPLE UNIT: Students, Salaried, Business Professional, Housewives RESEARCH INSTRUMENT: Questionnaire METHOD OF ANALYSIS: Simple Data Analysis Using Microsoft Excel and SPSS The variables used are: 1. Ease of locating a product 2. Movement between shelves 3. Effectiveness of helping staff in solving queries 4. Friendly attitude of staff 5. Perceived safety of baggage at baggage counter 6. Parking facility 7. Availability of shopping aids From the data analysis done we got: a) Locating relevant product / section b) Effectiveness of helping staff in solving queries c) Attitude of staff d) Perceived safety of deposited baggage at baggage counter. This factor relates to the mental ease with which customers can shop at a super store. The following variables fall under factor two: a) Parking facility b) Availability of shopping aids.

This factor relates to the physical ease with which customers can shop at a super store.The variable Ease of movement between shelves can be included in any of the two factors. For analytical simplicity, this variable is removed from our analysis. The data analysis done on the above variable gives us the following interpretations 1. There is significant relation between the ease with which the customer can locate the relevant section and the ease of movement between the shelves. 2. There is no relationship between the frequency of store visits and the overall shopping experience. 3. Majority of customers have a goods hopping experience. 4. majority of customers agree with the statement that big bazaar stands up to its brand name. 5. availability of shop aids is effective. 6. parking facility is good at big bazaar 7. safety of baggage is secured. 8. attitude of staff is somewhat friendly 9. range of products at grocery section, according to the survey is bad and hence big bazaar should take measures to improve this. 10. Range of product at apparel is neutral 11. Range of product at kids section is neutral 12. Quality of products at electronic and household section is average. 13. price of products at grocery section is bad, as quality is also bad this shows that grocery section is the biggest problem so they should maintain or eliminate this section 14. quality of products at electronics and household section is average, this all shows the quality at all the section is not above average so they have take serious step to make the quality up to the mark. 15. quality of products at grocery section is bad, they need to take serious step to upgrade the quality at this section 16. quality of products at apparel section is average. 17. quality of products at kids section is average. 18. Helping staff is willing to solve the queries of the customers 19. Easy to locate staff so adequate staff is present 20. Movement between shelves easy 21. Billing service/procedure is quite friendly so it saves time 22. Easily locate products showing relevant sections are marked. 23. People are nearly neutral about tagline

Management Understanding Gap.

In an organized retail store, the following are the expectations of a customer; The ease with which the customers can locate the relevant section and the ease of movement between the shelves. A good parking facility A very good range of products, etc.

Now Big Bazaar has clearly identified these gaps and done a clear Gap 1 analysis in bridging the above Customer expectations and the management perceives these expectations the same way and work on them effectively.

1. Service Quality Gap.

Between management perception of customer expectation and service quality specification. When it comes to understanding a customer, Big Bazaar has found that their customers not only come for the Cost Competitiveness Big Bazaar offers but also expect services. This is when Big Bazaar decides to bridge this gap by improving the quality of its service by increasing the number of helping and vibrant staff which surprisingly had a massive hopping experience for the customers.

2. Service Delivery Gap.

Between service quality specification and service delivery. It was Big Bazaars innovative process in routing the Billing Service to a much faster process. They had found out the gap when customers used to queue up in long lines to get their products billed. This gap was bridged when they opened different levels of billing counters, for less than 10 items, for Credit Card users, for Express Ways, etc which improved their service delivery in a huge way.

3. Communication Gap
Effective communication to the customer is very important in organized retail. When Big Bazaars tagline was Is se sasta aur achha kahin nahi!, they made sure that this communication gap would always be bridged by providing exactly what they say. They even started with the Sale Wednesday and various offers on different days. This made customers go to Big Bazaar everyday to explore their new value for money deals.

4. Service Design Gap.

Between expected service and perceived service. The entire store design, both External and Internal have made a huge difference to Big Bazaar. When we talk about internal design, we say how they dynamically change their

services everyday adding various offers, various small stores, and even the physical style of the retail store. This improves the service gap by a dynamic design change.

Why the GAP analysis is used?

The main reason gap analysis is important to firms is the fact that gaps between customer expectations and customer experiences lead to customer dissatisfaction. Consequently, measuring gaps is the first step in enhancing customer satisfaction. Additionally, competitive advantages can be achieved by exceeding customer expectations. Gap analysis is the technique utilized to determine where firms exceed or fall below customer expectations. Customer satisfaction leads to repeat purchases and repeat purchases lead to loyal customers. In turn, customer loyalty leads to enhanced brand equity and higher profits. Consequently, understanding customer perceptions is important to a firm's performance. As such, gap analysis is used as a tool to narrow the gap between perceptions and reality, thus enhancing customer satisfaction.

Servqual Model

Quality has no predictor. Generally if there is the lack of general Concept/meaning except what the customer really wants. In other words, a product is qualified when it agrees with customers needs. Quality us defined as agreement of product with customer's needs. Service quality can be defined as the difference between customers expectations for service performance prior to the service encounter and their perceptions of the service received Quality service has a positive effect on the bottom-line performance of a firm and thereby on the competitive advantages that could be gained from an improvement in the quality of service offering, so that the perceived service exceed the service level desired by customers


The SERVQUAL scale is the principal instrument widely utilized to assess service quality for a variety of services. Parasuraman et al., (1988) have conceptualized a five dimensional

model of service quality such as: reliability, responsiveness, empathy, assurance and tangibility. Their measurement instrument is known as SERVQUAL, which has become almost the standard way of measuring service quality. Further, each item of SERVQUAL has been used twice: to measure expectations and perceptions of service quality. The central idea in this model is that service quality is a function of difference scores or gap between expectations and perceptions. The five dimensions of SERVQUAL Includes:


Tangibles: Physical facilities, equipment and appearance of personnel.

Neat staff Visually appealing materials (pamphlets, web-sites) Clean and tidy hotel Appropriate location Parking area

Visually appealing physical facilities 5.53 1.23

Provides all products under 1 roof. RFID technique for distribution and selling Special mall management company appointed for proper designing of the store

Each section is departmental

Floor sales people are given a specific dress code to distinguish them from customers

Reliability: Ability to perform the promised service dependably and accurately.

Performing service in the promised time Performing services right the rst time Error-free service Knowing the exact time when service will be performed


Responsiveness: Willingness to help customers and provide prompt service.

The store is well equipped with floor attendant who help you everytime you need it Interest in solving guests problems Service without delays Interest in solving guests problems


Assurance: Knowledge and courtesy of employees and their ability to inspire trust
and confidence. Staff has knowledge to answer questions Feeling safe and secure Convenient opening hours Understanding guests specic needs Ease of nding ones way around the store Staff instils condence


Empathy: Caring and individualized attention that the firm provides to its
customers Willingness to help guests Staff has time to answer guests questions Providing individual attention Guests best interests at heart

References & Bibliography:

IMT ,Gaziabad white paper on research on BIG BAZAAR