The 15 Minute Breakdown: 2024 Beauty Marketing Study
Retail sector in india (national handloom)
1. A
PROJECT REPORT ON
“Comparative study of service quality of BIG BAZAR and NATIONAL HANDLOOM
Submitted to the
UNIVERSITY OF RAJASTHAN, JAIPUR
Submitted to: Submitted by:
DR. DILEEP SINGH YASH AGARWAL
(Faculty of business administration) B.B.A. PART-II
Enroll.no.
Roll. No.
2015-16
UNIVERSITY COMMERCE COLLEGE, JAIPUR
2. Certificate
This is to be certify that YASH AGARWAL has submitted his project titled “Comparative study of service
quality of BIG BAZAR and NATIONAL HANDLOOM” on the given due date. During his work; he was
found to be a competent and hard working student. I wished him all the best for the future endeavors.
DR. DILEEP SINGH
(…………….)
3. STUDENT DECLARATION
I hereby declare that the present report entitled “Comparative study of service quality of BIG BAZAR
and NATIONAL HANDLOOM” is based on my original work and I have not copied it from anywhere or
earlier such report prepared by seniors. I further declare that I have not submitted this report anywhere else.
YASH AGARWAL
BBA IV SEM
4. PREFACE
This project report has been prepared as per the requirement of the syllabus of BBA course structure under
which the students are the required to undertake industrial internship. I undertook my training at National
Handlooms at its service unit at Retail sector in India.
My job during the project was to get an overview of the Retail services in Jaipur.
It was a firsthand experience for me as it was the first time that I was exposed to the professional set-up and
was learning the services in retailing, which was really a great experience.
In addition, technological changes were witnessing power shift from old hectic and weird ways of doing
business. These technological developments have brought revolutionary changes in the market and also in the
mindset of the people which might be positive and encouraging for a section of society and adverse for the
others.
5. ACKNOWLEDGEMENT
I express my sincere thanks to the staff of National handloom and my college project guide DR. DILEEP
SINGH for guiding me right till the successful completion of the project. I sincerely acknowledge them all
for extending their valuable guidance, support for literature, critical reviews of project and the report and
above all the moral support with they provided to me with all stages of this project.
I would also like to thank the support given by the staff of National handloom, for their help and cooperation
throughout my project.
YASH AGARWAL
6. TABLE OF CONTENTS
Chapters Descriptions
1. Introduction to the industry
2. Introduction to the Organization
3. Research Methodology
4. Facts and Findings
.
Data Analysis and Interpretation
.
SWOT Analysis
5. Conclusion
..
Recommendation and Suggestion
6. Appendix
.
BIBLIOGRAPHY
7. Executive Summary
The topic is Comparative Study Service Quality of Big Bazaar and National handloom. We know that there
are several retail shops but Big Bazaar and National Handloom is extensively used by people in Jaipur.
National handloom is a traditional store and big bazaar is new trend retail store.
8. We know that people are attracted towards the good services. It is sometimes said that success is the result of
a good plan well executed. For a retailer, plans are mostly formulated at corporate headquarter and executed
in their stores. Corporate planning functions include choosing the assortment of products to carry in each
store at each point in time, setting store inventory levels and product prices, setting staffing levels,
determining how many stores to have and where they are located and creating the physical design of stores
and plan grams that specify the location of all products within each store. Services provided by the retail
store shows what type of retail store it is. Services quality helps the customer to analyze the store.
10. INTRODUCTION
A service quality is a critical element of customer perception. Services
researcher have suggested that consumers judge of quality of services is based
on their perception of the technical outcome.
Service may be defined as intangible activities performed by persons or
machine or both for the purpose of creating values perceptions amongst
customers. And quality is considered to be one of the management’s top most
competitive priorities and prerequisite for sustenance and growth of firm.
Customer perceives the quality of the services in two dimensions what they
get and how they get it. Service quality help in fulfillment of customer
expectations.
This paper helps to investigates how closely customer expectations are
matched. Customers do not perceive the quality on one-dimension way but
rather judge quality on the multiple factors relevant to the context. The five
dimension of the service quality are- reliability, responsiveness, assurance, and
empathy, tangible. These dimensions represent how the consumers organize
information about service quality in their minds. These dimensions are
referring to the retail and business.
Brief history of National handloom: -
National handloom is providing quality services to customers since 1979. Its
branches are in Jodhpur, Jaipur, Barmer, & Ahmedabad. It provides the
facility of home delivery and online shopping.
Traditionally the retail business is run by having Shop in the front & house at
the back. More than 99% retailers function in less than 500Sq.Ft of area. All
the merchandise was purchased as per the test & vim and fancies of the
proprietor also the pricing was done on ad hock basis or by seeing at the face
of customer. Generally, the accounts of trading & home are not maintained
separately. Profits were accumulated in slow moving & non-moving stocks
11. which were to become redundant or consumed in-house. Thus profits were
vanished without their knowledge.
The Manufactures were to distribute goods through C&F (Carry and Forward)
agents to Distributors & Wholesalers. Retailers happen to source the
merchandise from Wholesalers & reach to end-users. The merchandise price
used to get inflated to a great extent till it reaches from Manufacturer to End-
user. Selling prices were largely not controlled by Manufacturers. Branding
was not an issue for majority of customers. More than 99% customers are
price sensitive & not quality or Brand Sensitive at the same time they are
Brand conscious also.
Brief history of Big Bazaar: -
Big Bazaar has already plotted its own identity in the world retail. Big Bazaar
is retail chain of hypermarket in India that reaches to the customers with every
need at reasonable prices. This retail store is the subsidiary of the Future
group. There are 121 stores of Big Bazaar in India. This shopping store mainly
attracts middle class and lower-middle class with the discounted pricing and
lucrative offers at different products. In the year 2002, Big Bazaar introduces
Food Bazaar as a Shop-In-Shop pattern.
In this project we have to compare the service quality of the Big Bazaar and
National handloom. Both are the retail store but they have different marketing
strategy. They adopt different services for the customer to attract their retail
store.
The word "Retail" originates from a French-Italian word. Retailer is someone
who cuts off or sheds a small piece from something. Retailing is the set of
activities that markets products or services to final consumers for their own
personal or household use. It does this by organizing their availability on a
relatively large scale and supplying them to customers on a relatively small
scale. Retailer is a Person or Agent or Agency or Company or Organization
12. who is instrumental in reaching the Goods or Merchandise or Services to the
End User or Ultimate Consumer.
Indian retail industry is the largest industry in India, contributing to over 13%
of the country's GDP. Organized retail industry in India is expected to rise
35% yearly being driven by strong income growth, changing lifestyles, and
favorable demographic patterns. It is expected that by 2011-12 modern retail
industry in India will be worth US$ 590 billion. It has further been predicted
that the retailing industry in India will amount to US$ 833 billion by 2013 and
US$ 1.3 trillion by 2018. Shopping in India has witnessed a revolution with
the change in the consumer buying behavior and the whole format of shopping
also altering. Industry of retail in India which has become modern can be seen
from the fact that there are huge shopping centers, malls and sprawling
complexes which offer food, shopping, and entertainment all under the same
roof. Indian retail industry is expanding itself most aggressively; as a result, a
great demand for real estate is being created. Indian retailers preferred means
of expansion is to expand to other regions and to increase the number of their
outlets in a city.
Introduction to retail industry
Define retailing
Explain the role of retailing in sorting
Describe the Impact of retailing on the economy
Explain the four major principles of the retailing concept
Describe the key drivers of retailing in India
Describe the changes happening in the Indian retailing scenario
Definition of Retailing:
13. Retailing may be defined as the collection of business activities involved in
selling tangible /intangible (i.e. services like telecom, travel, railway etc)
physical goods for personal, family or household/office/organizational use.
The range of the goods sold varies from cars to theater tickets. Retailing also
involves the sale of services directly to the consumers. A service may be the
shopper’s primary purchase (such as a haircut) or it may be part of the
shopper’s purchase of a product (such as a delivery). Retailing does not
necessarily involve a store. It may comprise new forms of shopping such as
tele-shopping, online shopping, shopping by mail order, direct selling to
consumers in their homes and offices, vending machines sales etc. retailing is
the last stage in the distribution process. Retailers play a key role and act as a
point of contact between manufacturers, wholesalers, other suppliers and the
final customer.
Role of Retailing in Sorting Process:
Usually, manufactures wish to make one basic type of item and sell the entire
inventory to as few buyers as possible. Customers, on the other side, usually
like to choose from a variety of goods and services and purchase a limited
quantity. Retailers collect an assortment from various sources, buy in large
quantity, and sell in small amounts. This is known as the “sorting process”.
The retailer helps in this sorting process, thus providing, a wide range of
choice to the customer. The term sorting refers to the retailer’s action of
collecting an assortment of goods from various sources, and selling them in
small amounts to the customers.
Impact of retailing on the economy:
Organized retailing in India is currently estimated at Rs 30,000 crores (from
rs. 5,000 crores in 1999) and is growing at a steady rate of about 12 percent,
making it among the fastest-growing industries in the country
Retail accounts from about 13.5 percent of the country’s GDP.
It generates employment opportunities in the country.
14. Marketing Concept in Retailing:
There are four major principles of the marketing concept that all retailers
should understand and apply. These are:
Customer orientation
Coordination efforts
Value driven
Goal orientation
Customer Orientation:
The attributes and needs of the customers are determined by the retailer, who
then tries to satisfy these needs to the fullest. For example, on determining that
a certain customer is particularly fond of checkered shirts, the retailer may
contact him when a new exclusive line of such arrives at his store.
Coordinated Effort:
All plans and activities in the store are combined by the retailer so as to
maximize efficiency.
Value driven:
The customers are offered retailer good value by the retailer.
This means fixing the prices which are pitched at the appropriate level of
products and services.
Goal Orientation:
The Retailer sets goals and then uses the right strategy to attain these goals.
Unfortunately, many retailers cannot grasp this concept. As a result, they are
indifferent to customers needs; plan haphazardly; have prices that do not
reflect the value offered; have unclear goals; are not receptive to change;
blindly follow strategies enacted by competitors; do not get feedback from
15. customers; rely on supplier reports or their own past sale trends.
Implementation of the retailing concept is very easy. It simply implies
communicating with the customers and viewing their desires as critical to the
organization’s success; having a consistent strategy (such as offering store);
offering prices perceived s ‘fair’ (a good value for the money) by customers,
and working to achieve meaningful, specific, and reachable goals. However, it
should be borne in mind that the retailing concept is only a strategic-guide and
it does not deal with a firm’s internal capabilities or competitive advantages,
but offers a broad planning framework that could be used as a road map
Key Retail Drivers Consumer pull:
Today, one can note a significant change in the retail market in comparison to
that of the eighties. The consumer now calls the shots and determines the
goods and services that a manufacturer should provide. Liberalization of the
consumer goods is one of the main reasons for this change. The two broad
segments into which consumerism can be divide are: high-income segment
and middle and lower income group. While the involvement level of high-
income segment in shopping is very low, the middle and lower income group
is very actively involved and very highly value-conscious and looks for
bargains. Hence, this segment of consumers is the retailing target. Rising
incomes:
The last decade has seen a major rise in the income of the Indian consumer.
This rising income has generated the demand for higher quality consumer
goods/higher priced products.
Change in consumer behavior:
Today’s consumers are always hard pressed for time and so they hunt for a
variety of things under a single roof. They also look for better customer
service, product quality and hygiene.
Entry of the corporate sector:
Lately, the investment made by large business houses like reliance, Tata and
ITC in retailing has sparked the growth of the retail sector in a big way.
Building Different Retail Formats:
16. Different retail formats like supermarkets, mails departments stores etc. have
now emerged to suit the convenience and needs of the consumer.
Better supply chain:
A significant change has been noted in the way goods are organized and
delivered to the retailer, which includes better warehousing and packaging
facilities.
Impact of technologies:
Various operations in a retail store such as inventory management, bill
payment and database management have now been computerized. Also,
electronic surveillance systems are being used to prevent theft of items. All
these technological inventions have revolutionized retailing. Role of
government in retailing:
the government regulates the working of retail stores through legislation and
implementation of taxation laws like ‘value-added tax(VAT)’.
The last decade has seen a major rise in the income of the Indian consumer.
This rising income has generated the demand for higher quality consumer
goods/higher priced products.
Change in consumer behavior:
Today’s consumers are always hard pressed for time and so they hunt for a
variety of things under a single roof. They also look for better customer
service, product quality and hygiene.
Entry of the corporate sector:
Lately, the investment made by large business houses like reliance, Tata and
ITC in retailing has sparked the growth of the retail sector in a big way.
Building Different Retail Formats:
Different retail formats like supermarkets, mails departments stores etc. have
now emerged to suit the convenience and needs of the consumer.
Better supply chain:
A significant change has been noted in the way goods are organized and
delivered to the retailer, which includes better warehousing and packaging
facilities.
Impact of technologies:
17. Various operations in a retail store such as inventory management, bill
payment and database management have now been computerized. Also,
electronic surveillance systems are being used to prevent theft of items. All
these technological inventions have revolutionized retailing.
Role of government in retailing:
the government regulates the working of retail stores through legislation and
implementation of taxation laws like ‘value-added tax(VAT)’.
Transformation in the Indian retailing scenario: Change in the retailing
scenario can be noticed due to the following reasons:
Demand for better products and retail experience from the customers.
New products, formats and competition
Better quality outlets
Change in scale/range of retail
Larger players in retail
Use of technology and improved processes
Rise of quality retail space
Investment and development of malls
The focus shifting from kirana to supermarkets
Large retailers having web sites
Shopping centers which are beginning to have large specialties retailers.
18. An overview on Retail Revolution in India
Retail in India is on a cusp of transformation. Organized retailing as a
professional service-oriented set-up, is a recent phenomenon in India but is
growing at a tremendous pace with a potential of creating over 2 million new
(direct) jobs within the next six years, assuming an 8 to 10 per cent share of
organized retailing in the total retail business.
The fast changing retail environment demands that professionals learn new
skills, improve their efficiency, learn to compete and think out of the box. As
retailers work directly with customers and there is need for good managerial
talent to interpret and satisfy the needs and desires of customers. All this
requires an education that is intensive, comprehensive and closely linked to
the retail business world. The need is to have a program which has all the
19. inherent features of a business management program and includes experiential
learning throughout the program.
Market Trends, Challenges & Opportunities
Across BRIC countries, the food and grocery (F&G) segment is clearly
driving retail growth. For e.g., retail food sales dominate the total retail market
in Brazil, accounting for almost 54 percent of the total retail sales, while
Russia is the fastest growing retail food sales market in the world, with the
potential to again double in size by 2008.
The prevalence of English as a language of communication to a very great
extent facilitates material sourcing and business communication. While India
and Russia pose no problems in this regard, Brazil and China present
communication problems for foreign companies.
The importance of governments that are quick on decision-making and passing
liberal trade laws cannot be emphasized enough. In China, for instance, being
a non-democratic country makes it easier for foreign investors to do business
sans bureaucratic red-tapism (in comparison to a democratic country like
India), the obvious reason being that the political establishment is not directly
accountable to the people.
Growing urbanization and metropolitan saturation is leading to the expansion
of retail formats and investment opportunities towards tier-II cities and rural
hubs across all four countries.
Continued economic reforms together with the growth of organized retail
(especially in the F&G segment) have led to growing rural incomes, triggering
off far-reaching, social impacts. The upcoming ‘Golden Quadrilateral' plan for
roadways in India, which is to connect the four cities of Delhi, Kolkata,
Mumbai and Chennai, will have massive economic and social repercussions
on rural and semi-rural clusters along the vast network. In China too, the
government plans to create a rural retail network covering 70 percent of all
villages by 2008.
20. Process Credit Applications:
Credit cards are an important part of the retail industry. Whatever the case
may be, credit cards assist and encourage people to spend money on a wide
variety of purchases. Store credit cards are no different. Virtually every retail
chain store in existence offers their own store credit card. This encourages
customers to spend money in a specific retail store, especially when the store
offers special privileges and discounts to cardholders. Store credit cards aren't
just beneficial to the customer; they are also beneficial to the store. When
holding a credit card for a specific retail store, customers are much more likely
to shop at that store for what they are looking for what they want before going
into any other store. This increases the potential for sales in said store. When
given coupons, discounts, and other promotions and privileges, consumers are
even more likely to go to the store where they are a cardholder. More
customers mean more volume. More volume means more profit. So, we have
glossed over the benefits for the customers and the stores involved. What
about the most important people involved? That is the sales associate, of
course. The sales associate is the liaison between the credit card company and
the customer.
The sales associate offers the customer membership and provides details on all
of the privileges that cardholders receive. It is the sales associate's job to
entice the customer to open a credit card account, as well as to use it. The sales
associate is not forgotten in this process. The stores and banks involved often
offer incentives to sales associates that open new credit card accounts for
customers. For example, a sales associate receives $2 for every credit card
application processed. If an associate works an 8-hour day and processes 2
credit card applications, that averages out to an extra 50 cents per hour. So,
instead of earning $7.50 per hour, it averages out to $8 per hour. Plus, the
amount of credit card applications that a sales associate can process is
unlimited. Furthermore, there are sometimes extra incentives to associates
who process a certain number of credit card applications. A sales associate is
given a goal for the week (or day or month). Once the goal is reached, the
21. associate receives that incentive. For example, if you process 2 credit cards in
one week, your name gets entered into a drawing for $500 cash. Wouldn't that
be a nice addition to your monthly paycheck?
# Retail store operations:
Describe how to store staff should be managed
Explain the importance of store maintenance
List the steps used by retailers to effectively manage energy resources
State the steps to be adopted by retailers for store security
Describe the use of technology in retail operations
Personnel Utilization:
Many Retailers concentrate on the following aspects:
Implementing a good screening and hiring process to get the right staff.
Ensuring discipline of staff, attendance of customers, and proper level of
skills through employee training.
Having a good system of forecasting workloads, and ensuring that the right
numbers of store personnel are available. If a store is understaffed or faces
shortage of staff, this may mean that customers are not being properly served.
Overstaffing may mean an unnecessary expenditure in terms of staff salary
costs.
Training staff to ensure proper product knowledge, customer service,
familiarized with store processes, and cross-training to enable staff to learn
more than one job. This leads to an increase in the flexibility of operations.
Retailers often fix employee performance standards in the form of a sales
target (for salesperson), transaction speed and accuracy (for cashier). The staff
tends to be more productive when working towards achieving these specific
goals.
Store Maintenance/Energy Management:
Store maintenance includes the interiors and exteriors of a retail store.
Exteriors: - Building, parking lot, outside signs, outside displays etc.
22. Interiors: - walls, flooring, lighting, interior displays and signs, fixtures,
ceiling, painting, replacing lights, cleaning all surfaces, etc.
Carefully adjust interior temperatures during non selling hours.
Use computerized systems to monitor and adjust temperature levels to the
fraction of a degree. Saving electricity may be more when a store area is large.
Use high efficiency bulbs instead of traditional lighting.
Store Security:
Store Security comprises two types of security issues:
Personal security
Merchandise security
Personal Security:
Customers should feel safe while shopping in the store. Hence, retailers may
practice the following:
Appointment uniformed security guards inside the store
Engage vigilance staff (undercover) in plain clothes who are required to
stop criminal attempts
Improve lighting in store and in parking areas.
Install TV cameras, alarms, and monitoring systems
Ensure that bank deposits (of cash received) are made more frequently
Prevent fire accidents and use detection systems.
23. Merchandise Security:
Most retailers incur losses due to “inventory Shrinkage”
Shrinkage is caused by employee theft, customer shoplifting, fraud and
administrative errors by vendors and store personnel.
Shrinkage may be one to two percent of sales turnover (volume). Therefore,
care must be taken to control shrinkage.
Some activities that reduce merchandise losses areas as follows:
Product tags
Security guards
Video cameras
Employee surveillance
Burglar alarms
Electronic article surveillance – specially designed tags or labels attached to
products that can be tracked by electronic devices placed at store exits. If store
personnel do not remove the tags, an alarm goes off and shop lifters are
caught.
Backgrounds checks for each employee
Conducting training programs for employees to create an awareness about
ethical behavior
Seeking employees or prosecuting shop lifters involved in theft.
Mystery shoppers and in-store detectives to watch out for shop lifting.
24. Technology in retail operations:
Many large retailers choose high technology computers based applications to
operate there store effectively. Listed below are the technologies used in retail
In-store telecommunications pocket phones are used to enable staffs to
communicate with each other
Computerized inventory control to analyze inventory levels quickly, place
replenishment requests
Computerized check out, where cashiers ring up sales or pass items over
optical scanners to register the sale. Some electronic point of sale system also
provides the reports inventory data etc.
# Maintain Records:
Store opening and closing processes
Daily book keeping
Stock control processes
Inventory management
Store opening and closing processes:
The retailer must define a documented process for opening and closing the
store. For e.g. While closing the store a process should be specified for putting
25. off all equipments/computers/lights/AC/generator, safely storing valuable
merchandise, safely keeping keys/activating security alarm systems, etc. and
for shutting the exit and entry points.
Daily Book Keeping:
Tallying and counting end-of-day cash (all types of tenders separately)
Entering cashier till counts and compare with the till status reports to find
out excess or shortages of cash
Preparing reports on voids, refunds, charges, etc.
Ensuring cash is safely deposited in bank/safe
Closing the cash till and store systems
Stock control Procedures:
A retailer may have the following stock control procedures at a store level:
Taking stock/inventory count
Reviewing a purchase order
Ordering goods/replenishments
Receiving an invoice
Receiving goods and making an entry into inventory
Analyzing inventory reports
Inventory Management:
The following operational factors in inventory management at a store level
are important to a retailer:
Coordination and handling the merchandise received from different
suppliers
Comparing ideal level of inventory on the selling floor with
warehouse/store area
Number of times the inventory should be moved from the non-selling to
selling areas of the store (replenishments) and from the ware house to the
store.
26. Process by which the merchandise stock can be organized efficiently and
accurately on regular/annual basis without inconveniencing customers
Inventory functions such as annual or continual stock take i.e. counting of
stock during non-selling times Organizing customer delivery with care or
proper timings
# Core Skills (listening and speaking) required in a retail sector worker:
Importance of active listening
How can be an active listener
Speaking skills
Listening is one of the most important skills you can have. How well you
listen has a major impact on your job effectiveness, and on the quality of your
relationships with others.
Listen to obtain information.
Listen to understand.
Listen for enjoyment.
Listen to learn.
Given all this listening we do; you would think we'd be good at it! Clearly,
listening is a skill that we can all benefit from improving. By becoming a
better listener, you will improve your productivity, as well as your ability to
influence, persuade and negotiate. What's more, you'll avoid conflict and
misunderstandings. All of these are necessary for workplace success!
About Active Listening:
The way to become a better listener is to practice "active listening." This is
where you make a conscious effort to hear not only the words that another
person is saying but, more importantly, try to understand the complete
message being sent. There are five key elements of active listening. They all
help you ensure that you hear the other person, and that the other person
knows you are hearing what they say.
1. Pay Attention
27. Give the speaker your undivided attention, and acknowledge the message.
Recognize that non-verbal communication also "speaks" loudly.
Look at the speaker directly.
Put aside distracting thoughts.
Don't mentally prepare a rebuttal!
Avoid being distracted by environmental factors. For example, side
conversations.
"Listen" to the speaker's body language.
2. Show That You're Listening
Use your own body language and gestures to convey your attention.
Nod occasionally.
Smile and use other facial expressions.
Note your posture and make sure it is open and inviting.
Encourage the speaker to continue with small verbal comments like yes,
and uh huh.
3. Provide Feedback
Our personal filters, assumptions, judgments, and beliefs can distort what we
hear. As a listener, your role is to understand what is being said. This may
require you to reflect what is being said and ask questions.
Reflect what has been said by paraphrasing. "What I'm hearing is," and
"Sounds like you are saying," are great ways to reflect back.
Ask questions to clarify certain points. "What do you mean when you say."
"Is this what you mean?"
Summarize the speaker's comments periodically.
Allow the speaker to finish each point before asking questions.
Don't interrupt with counter arguments.
4. Respond Appropriately
28. Active listening is a model for respect and understanding. You are gaining
information and perspective. You add nothing by attacking the speaker or
otherwise putting him or her down.
Be candid, open, and honest in your response.
Assert your opinions respectfully.
Treat the other person in a way that you think he or she would want to be
treated.
It takes a lot of concentration and determination to be an active listener. Old
habits are hard to break, and if your listening habits are as bad as many
people's are, then there's a lot of habit-breaking to do!
Speaking Skills:
The activities involved while communicating with customer
Approaching and greeting
Recommending products
Describing merchandise
Responding customer queries
Handling customer objections
Handling queries while closing sale
# Professional Skills:
What are professional skills?
What is the importance of professional skills?
Decision making regarding the responsibilities of the job role
Plan and organize
Customers centricity
Problem solving
Professional Skills at every organization are the foundation for success. They
are the skills that graduates need so as to succeed in professional practice and
range from the highly specific ones that are related to the graduate’s field.
29. Professional skills are needed for growth in once profession. By this skills one
can, get a good position in organization.
Decision making On the job individuals needs to be able to make appropriate
decision regarding the responsibilities of the job role. One should understand
the needs of job and make right decision to get a good position in
organization.
Plan and Organize Customers sales associates should be able to plan and
schedule routines. He should know how he can manage his responsibilities in
store. Individuals need to be regular and punctual about his daily work at
workplace.
Customer’s centricity Customer centricity is a term frequently used in
marketing is a measure of how products and services supplied by a company
meet or surpass customer expectation. Customer satisfaction is defined as ‘the
number of customer, or percentage of total customers, whose reported
experience with a form, its products, or its services (ratings) exceeds specified
satisfaction goals.
Solving Customers Problems, A Customer complaint offers the best chance
to convert an unhappy customer into a loyal customer. Complaints are a
golden chance to strengthen a business. Solving customer’s problem is a key
to success. The three important steps involved in solving customer’s problems
are:
Focusing on the problem, prioritizing the problems and solving the most
urgent and critical one’s first
Developing a plan of action for solving the problem
Using the required resources to solve it.
# Crisis Management:
Deal with accidents and emergencies
30. Help to reduce risks to health and safety
Despite having the best strategies, retailers may sometimes face crisis
situations that need to be managed smoothly. Retailers often have detailed
plans and their staff to handle emergency situations such as:
Fire
Car accidents in parking lot
Store robbery or hold up
Extremely bad weather or natural disasters like earthquake, floods.
Sudden server illness of employee or customer
How to minimize effects of crisis by anticipation:
Contingency plans for all kinds of crisis: store policies should specify how
to handle the crisis and train the employees (e.g. in case of fire, employees
must know how to put out fire, evacuate customers if necessary, retrieve
goods, call fire fighting authorities, etc.)
Insurance
Backup generators in anticipation of power failures
A system to communicate essential information during a crisis
Cooperation during a crisis
Chain of command for decision to be made clear and specifying who has
the authority during a crisis.
# Customer Service
Define service and characteristics of service
Describe the service quality dimensions
Identify the types of services provided to the customer and their needs
Describe how to deliver excellent customer service
Define Service We have heard the popular adage, “Customer is the King”.
Every business needs to follow this fundamental principle to ensure quality
customer services. In our service economy the goal of each organization
31. should not be to give the customers greater satisfaction by responding to
customer needs and providing services to meet their expectations.
Definition- Customer Service Customer service is an organization’s ability to
constantly and consistently give the customers what they want and need. This
involves understanding customer requirements and giving a proper solution
accordingly. Thus, customer service is:
Putting people behind products and services
Treating customers with respect, individuality and personal attention to
understand why people are put behind products and services let us take an
example of a shopping mall, where the garments are displayed, without any
price tags and assistance is provided.
Respect The best way of showing respect is by making the customers feel
special. From the moment they enter the store to the time they leave, they
should be treated warmly, generously and hospitably, irrespective of whether
the make a purchase or not.
The customer should be made to feel important, this could be achieved
through a combination of basic gestures and personal greetings like, ‘good
morning’, ‘how may I help you?’ with genuine smile when they enter and
‘thank you’ in acknowledgement of them, ‘stopping by’ when they leave.
Individuality A couple arrived at a hospital. The wife was in labor. The
husband, a heart patient, had an attack due to over-excitement. Since the
husband wanted to be with his wife during the delivery, the cardiologist
personally pushed the husband’s bed from the coronary care department to the
wife’s room. However, the bed was too large to go through the doorway. The
cardiologist, then, sat in the hallway with the husband till 3.00 a.m.., so that he
could talk to his wife, be with her, provide support, courage and emotional
assistance till she was taken to the delivery room. Thus, we see that the doctor
respected the husband’s individuality and adjusted according to the situation.
32. Personal Attention the Ritz Carlton Group of Hotels complies customer
information through observations made by the hotel staff in the course of their
normal duties. Every staff member carries a guest preference pad to record
notes. This enhances customer service. For example, when a housekeeper
enters a room and notices a tennis racket, shoes and magazines, he/she makes
a note of the guest’s likings as, ‘Mr. Samuel in Room 220 seems to enjoy
tennis’. This information is given to the appropriate staff members to contact
the guest with available timings of the tennis court and other related services.
# Retail Selling Process:
Start of Sale
Describe the aspects to be taken care of before starting a sale
Introduction: The Activity of selling is known as sale, and it forms an
essential part of any business. A salesperson needs to undertake the following
activities while selling goods and services to a customer:
Contact the possible customers
Present and demonstrate the products
Take orders from customers
Deliver the products
Collect the payments
Preparations for a sale The activity of putting or setting things in order in
advance of some act or purpose is known as preparation. With reference to
sale, preparation specifically refers to a salesperson. Before starting sale every
salesperson should:
Check his/her appearance
Know the store
Know the inventory
Know the products
Know the schemes
Know the competitor
Know the trends
33. Know the customer
Give personal attention towards his/her section
A salesperson should follow the following guidelines so as to look
presentable:
Wear a dress that is clean, well ironed and unfolded.
This would make him/her look smart.
Should not wear torn clothes or a dress with threads hanging
Smile and look bright, cheerful and enthusiastic
Wear moderate and fashionable jewelry and accessories such as belts
Wear well polished and unbroken shoes
Should have well-cut hair that is neatly combed and tied up (in case of long
hair)
Wear light make-up (for women)
Should be well shaven or trim his beard (for men)
Should have personal hygiene and use a light deodorant/perfume
Know the Store
The Salesperson should give such impression that their customers walk away
with the idea that ‘Looks are deceptive.’ So, along with having a good
appearance, it is important for the salesperson to possess a thorough
knowledge of the store. The salesperson should have knowledge of the
following:
Store’s mission, vision, values and all the categories of the product.
Levels/floors and the stock in each level
Store policies, regulations and services provided to the customers
Store layout
Product locations
Range of products kept in the store
Supervisor and the section in-charge
34. Know the Inventory
Keeping track of the detailed list of items in the stock is important to ensure
that all the items which are out of stock and are in demand are properly
indented. The salesperson needs to keep track of the following:
Current inventory stocked in the store
Present day’s position of sale
Inventory stocked in the distribution centre
Inventory in the back stock
Arrival of new stock
Order to delivery cycle (when to inform customer to visit for out-of-stock
items)
New merchandise that is anticipated
Know the product
The salesperson should possess complete knowledge about any product which
includes the following:
What the product is, what it does and how it fulfils the customer’s needs
and expectations
The range, colors’, sizes, and prices of the stocked products
The brand of each product
The schemes of both the store and the brand
Related products and accessories so that add-ons can be suggested
# Customer Buying Behavior:
Describe various factors that influence customers during shopping
Explain the various steps involved in the consumer decision making process
Describe the various types of decision making processes
Explain how the retailer can induce the customer to make impulse
purchases
Explain the importance of customer loyalty
State the changes in the shopping behavior of consumers in the past decade
35. Factors Influencing Customers
How consumers purchase products provides terrific direction for a retailer. It
helps the retailer to decide as to which categories of products to stock, how to
place, price and promote those categories. The components of buying behavior
provide a simple yet extremely powerful formula for driving sales successes
down to the category, brand and item level. Knowing your customer also
means you can choose the right level of service, ambience and facilities to suit
the customer.
# Job description of a sales person:
List the principal accountability of a retail salesperson
Describe the functions of a retail salesperson
Functions of a Salesperson
1. Make a consultative sale
2. Ability to up sell
3. Understand customer’s behavior
4. Independent stock-taking
5. Store décor
6. Anticipate security risks and reduce theft
7. Product knowledge
8. Knowledge of store procedures and policies
9. Register order information
10. Service orientation
11. Develop and retain loyal customers
12. Relationship with colleagues
13. Neat work area
14. Grooming and personality
15. Cooperativeness towards discipline/commitment
16. Handle customers and payments
36. Make a Consultative Sale
The activities involved while making a consultative sale include:
Approaching and greeting
Recommending products
Describing merchandise
Responding customer queries
Handling customer objections
Handling queries while closing sale
Packaging Purchased products
# Importance of Retail image:
Explain the importance of retail image
List and explain the components of retail image
Retail image can be described as the overall look of a store and the series of
mental pictures and feelings that it evokes in the minds of the customers.
37. Retail image is the foundation of all retailing efforts. For the customer,
developing a powerful image provides the opportunity to embody a single
message, stand out from the competition and be remembered. The retail image
refers to how a retailer is perceived by the customers and others. To attract
maximum customers, the retailer must have a strategy or plan to project the
image which is based on two aspects:
1) Category to which it belongs and
2) Its competitors
Hence, they must have a clear and consistent image.
Factors contributing to retail images:
Following are the factors contributing to the retail Images conveyed to the
customers by observations:
The retailer’s name and store sign
Advertising and news articles
Treatment by salesperson
Signage
Store façade
Cash memos and catalogues
Store displays and visual merchandising
The shopping environment and other shoppers
The store layout, presentation, signage, displays and events can change to
reflect originality and excitement. Let us now see how customer service helps
in building a retail image.
The tangible and intangible activities undertaken by the retailer in conjunction
with its merchandise and services that it sells is the service. A few factors that
make up service are:
Store Working hours
Parking Access
Credit acceptance
Caliber of salespeople
38. Store facilities
Delivery policies
Time spent on checkout
An overview on Retail Revolution in India
Retail in India is on a cusp of transformation. Organized retailing as a
professional service-oriented set-up, is a recent phenomenon in India but is
growing at a tremendous pace with a potential of creating over 2 million new
(direct) jobs within the next six years, assuming an 8 to 10 per cent share of
organized retailing in the total retail business.
The fast changing retail environment demands that professionals learn new
skills, improve their efficiency, learn to compete and think out of the box. As
retailers work directly with customers and there is need for good managerial
talent to interpret and satisfy the needs and desires of customers. All this
requires an education that is intensive, comprehensive and closely linked to
the retail business world. The need is to have a program which has all the
inherent features of a business management program and includes experiential
learning throughout the program.
Market Trends, Challenges & Opportunities
1. Across BRIC countries, the food and grocery (F&G) segment is clearly
driving retail growth. For e.g., retail food sales dominate the total retail
market in Brazil, accounting for almost 54 percent of the total retail
sales, while Russia is the fastest growing retail food sales market in the
world, with the potential to again double in size by 2008.
2. The prevalence of English as a language of communication to a very
great extent facilitates material sourcing and business communication.
While India and Russia pose no problems in this regard, Brazil and
China present communication problems for foreign companies.
39. 3. The importance of governments that are quick on decision-making and
passing liberal trade laws cannot be emphasized enough. In China, for
instance, being a non-democratic country makes it easier for foreign
investors to do business sans bureaucratic red-tapism (in comparison to
a democratic country like India), the obvious reason being that the
political establishment is not directly accountable to the people.
4. Growing urbanization and metropolitan saturation is leading to the
expansion of retail formats and investment opportunities towards tier-II
cities and rural hubs across all four countries.
5. Continued economic reforms together with the growth of organized
retail (especially in the F&G segment) have led to growing rural
incomes, triggering off far-reaching, social impacts. The upcoming
‘Golden Quadrilateral' plan for roadways in India, which is to connect
the four cities of Delhi, Kolkata, Mumbai and Chennai, will have
massive economic and social repercussions on rural and semi-rural
clusters along the vast network. In China too, the government plans to
create a rural retail network covering 70 percent of all villages by
2008.
Store Location and Geographic Coverage:
A good location may let a retailer succeed even if the strategy used is
mediocre. The choice of a location requires extensive decision making skill
due to the number of criteria considered. The criteria can be listed as follows:
Population size and traits
The competition
Transport access
Parking availability
The nature of nearby stores
40. Nearness of thee suppliers
India has kept the retail sector largely closed to outsiders to safeguard the
livelihood of nearly 15 million small storeowners and only allows 51 per cent
foreign investment in single brand retail with prior Government permission.
FDI is also allowed in the wholesale business. Single-brand retailers such as
Louis Vuitton, Fendi, LLadro, Nike and Toyota can operate now on their own.
Metro is already operating through the cash-and-carry wholesale mode.
The policy makers continue to explore areas where FDI can be invited without
hurting the interest of local retail community. Government is considering
opening up of the retail trading for select sectors such as electronic goods,
stationery, sports goods, and building equipment. Foreign direct investment
(FDI) in retail space, specialized goods retailing like sports goods, electronics
and stationery is also being contemplated. The Government has to walk a
tightrope to ensure a `level playing field' for everyone.
The policy of permitting 51 per cent FDI in single-brand product retailing has
led to the entry of only a few global brands such as Nike (footwear), Louis
Vuitton (shoes, travel accessories, watches, ties, textiles ready-to wear),
Lladro (porcelain goods), Fendi (luxury products), Damro (knock-down
furniture), Argenterie Greggio (silverware, cutlery, traditional home
accessories and gift items) and Toyota (retail trading of cars), into retail
trading. A 12-billion-euro French luxury industry is also eyeing the domestic
luxury segment to make a presence through retailing directly.
Food and grocery retail
The food business in India is largely unorganized adding up to barely Rs.400
billion, with other large players adding another 50 per cent to that. The All
India food consumption is close to Rs. 9,000 billion, with the total urban
consumption being around Rs. 3,300 billion.
41. This means that aggregate revenues of large food players are currently only 5
per cent of the total Indian market, and around 15-20 per cent of total urban
food consumption. Most food is sold in the local ‘wet’ market, vendors,
roadside push cart sellers or tiny kirana stores. According to McKinsey report,
the share of an Indian household's spending on food is one of the highest in the
world, with 48 per cent of income being spent on food and beverages.
Apparel retail:
The ready-mades and western outfits are growing at 40-45 per cent annually,
as the market teams up with international brands and new entrants entering
this segment creating an Rs.5 billion market for the premium grooming
segment. The past few years has seen the sector aligning itself with global
trends with retailing companies like Shoppers’ stop and Crossroads entering
the fray to entice the middle class. However, it is estimated that this segment
would grow to Rs. 3 billion in the next three years.
Gems and Jewelry retail:
The gems and jewelry market is the key emerging area, accounting for a high
proportion of retail spends. India is the largest consumer of gold in the world
with an estimated annual consumption of 1000 tones, considering actual
imports and recycled gold. The market for jewelry is estimated as upwards of
Rs. 650 billion.
Music Retail
The size of the Indian music industry, as per this Images-KSA Study, is
estimated at Rs.11 billion of which about 36 percent is consumed by the
pirated market and organized music retailing constitutes about 14 percent,
equivalent to Rs.1.5 billion.
Book retail:
The book industry is estimated at over Rs. 30 billion out of which organized
retail accounts for only 7 per cent (at Rs.2.10 billion). This segment is seen to
42. be emerging with text and curriculum books accounting to about 50 per cent
of the total sales. The gifting habit in India is catching on fast with books
enjoying a significant share, thus expecting this sector to grow by 15 per cent
annually.
Consumer durables retail:
The consumer durables market can be stratified into consumer electronics
comprising of TV sets, audio systems, VCD players and others; and
appliances like washing machines, microwave ovens, air conditioners (A/Cs).
The existing size of this sector stands at an estimated US$ 4.5 Billion with
organized retailing being at 5 per cent.
Retailing Formats:
Modern retailing has entered India in form of sprawling malls and huge
complexes offering shopping, entertainment, leisure to the consumer as the
retailers experiment with a variety of formats, from discount stores to
supermarkets to hypermarkets to specialty chains.
Corporate Catalyst India A report on Indian Retail Industry However, kiranas
still continue to score over modern formats primarily due to the convenience
factor. The organized segment typically comprises of a large number of
retailers, greater enforcement of taxation mechanisms and better labor law
monitoring system. It's no longer about just stocking and selling but about
efficient supply chain management, developing vendor relationship quality
customer service, efficient merchandising and timely promotional campaigns.
The modern retail formats are encouraging development of well-established
and efficient supply chains in each segment ensuring efficient movement of
goods from farms to kitchens, which will result in huge savings for the farmers
as well as for the nation.
The Government also stands to gain through more efficient collection of tax
revenues. Along with the modern retail formats, the non-store retailing
channels are also witnessing action with HLL initiating Sangam Direct, a
43. direct to home service. Network marketing has been growing quite fast and
has a few large players today. Gas stations are seeing action in the form of
convenience stores, ATMs, food courts and pharmacies appearing in many
outlets.
Functions of retailing:
Retailers play a significant role as a conduit between manufacturers,
wholesalers, suppliers, and consumers. In this context, they perform various
functions like storing, breaking bulk, holding stock, as a channel of
communication, storage, advertising, and certain additional services.
Storing:
Manufacturers usually make one or a variety of products and would like
to sell their inventory to a few buyers to reduce costs. Final consumers, in
contrast, prefer a large variety of goods and services to choose from and
usually buy them in small quantities. Retailers are able to balance the demands
of both sides, by collecting an assortment of goods from different sources,
buying them in sufficiently large quantities, and selling them to consumers in
small units.
The above process is referred to as the storing process. Through this
process, retailers undertake activities and perform functions that add to the
value of the products and services sold to the consumer. Supermarkets in the
US offer, on an average, 15,000 different items from 500 companies.
Customers are able to choose from a wide range of designs, sizes, and brands
from one location. If each manufacturer had a separate store for its own
products, customers would have to visit several stores to complete their
shopping. While all the retailers offer an assortment, they specialize in types
of assortment offered and the market to which the offering is made. Westside
provides clothing and accessories, while a chain like nil irises specializes in
food and bakery items. Shoppers stop targets the elite urban class, while
pantaloons are targeted at the middle class.
44. Breaking bulk:
Breaking bulk is another function performed by retailing. The word
retailing is derived from the French word retailer, meaning to cut a piece of.
To reduce transportation costs, manufacturers and wholesalers typically ship
range cartons of the products, which are then tailored by the retailers into
smaller quantities to meet individual’s consumptions needs.
Holding stock:
Retailers also offer the service of holding stock for the manufacturers.
Retailers maintain an inventory that allows for instant availability of the
products to the consumers. It helps to keep prices stable and enables the
manufacturer to regulate production. Consumers can keep a small stock of
products at home as they know that this can be replenished by their retailer
and can save on inventory carrying costs.
Additional Services:
Retailers ease the change in ownership of merchandise by providing
services that make it convenient to buy and use products. Providing products
guarantees, after-sales services and dealing with consumer complaints are
some of the services that add value to the actual product at the retailer’s end.
Retailers also offer credit and hire- purchase facilities to the customers to
enable them to buy a product now and pay for it later. Retailers fill orders,
promptly process, deliver and install products. Salespeople are also employed
by retailers to answer queries and provide additional information about the
displayed products.
Retailing Formats:
Modern retailing has entered India in form of sprawling malls and huge
complexes offering shopping, entertainment, leisure to the consumer as the
retailers experiment with a variety of formats, from discount stores to
supermarkets to hypermarkets to specialty chains.
45. Corporate Catalyst India A report on Indian Retail Industry However, kiranas
still continue to score over modern formats primarily due to the convenience
factor. The organized segment typically comprises of a large number of
retailers, greater enforcement of taxation mechanisms and better labor law
monitoring system. It's no longer about just stocking and selling but about
efficient supply chain management, developing vendor relationship quality
customer service, efficient merchandising and timely promotional campaigns.
The modern retail formats are encouraging development of well-established
and efficient supply chains in each segment ensuring efficient movement of
goods from farms to kitchens, which will result in huge savings for the farmers
as well as for the nation.
The Government also stands to gain through more efficient collection of tax
revenues. Along with the modern retail formats, the non-store retailing
channels are also witnessing action with HLL initiating Sangam Direct, a
direct to home service. Network marketing has been growing quite fast and
has a few large players today. Gas stations are seeing action in the form of
convenience stores, ATMs, food courts and pharmacies appearing in many
outlets.
In the coming years it can be said that the hypermarket route will emerge as
the most preferred format for international retailers stepping into the country.
At present, there are 50 hypermarkets operated by four to five large retailers
spread across 67 cities catering to a population of half-a-million or more.
Estimates indicate that this sector will have the potential to absorb many more
hypermarkets in the next four to five years. Corporate Catalyst India A report
on Indian Retail Industry List of retailers that have come with new formats
Retailer Current Format New Formats, Experimenting with Shopper’s Stop
Department Store Quasi-mall Ebony Department Store Quasi-mall, smaller
outlets, adding food retail Crossword Large bookstore Corner shops Pyramids
Department Store Quasi-mall, food retail Pantaloon Own brand store
46. Hypermarket Subhiksha Supermarket Considering moving to self-service
Vitan Supermarket Suburban discount store Food world Food supermarket
Hypermarket, Food world express Globus Department Store Small fashion
stores Bombay Bazaar Aggregation of Kiranas food mart Aggregation of
KiranasMetro Cash and Carry S Kumar’s Discount Store Traditionally, the
small store (kirana) retailing has been one of the easiest ways to generate self-
employment, as it requires minimum investments in terms of land, labor and
capital.
These stores are not affected by the modern retailing as it is still considered
very convenient to shop. In order to keep pace with the modern formats,
kiranas have now started providing more value-added services like stocking
ready to cook vegetables and other fresh produce. They also provide services
like credit, phone service, home delivery etc.
The organized retailing has helped in promoting several niche categories such
as packaged fruit juices, hair creams, fabric bleaches, shower gels, depilatory
products and convenience and health foods, which are generally not found in
the local kirana stores. Looking at the vast opportunity in this sector, big
players like Reliance and K Rahejas has announced its plans to become the
country's largest modern retainers by establishing a chain of stores across all
major cities.
EASY DAY
Product Range in Easy Day stores:
Dairy Products
Grains & Pulses
Bakery products
Food and Beverages
Home & Personal Care
47. Meat and Poultry Items
Frozen - Vegetarian, Non-Vegetarian [Meat] and Chilled Non-Vegetarian
All the three stores are single floor stores with cash counter and bakery section
at the entrance. Each category of the product was marked separately. Products
were effectively displayed with price tags.
In Easy Day stores we found that Home & Personal Care [Toothpaste, Soap,
etc] and Food & Beverages [Pepsi, Fruit Juice and Cereals] are sold at a
discount between 1-5% only.
Great Value Private Label Brand:
The company has introduced its own private label under the brand name Great
Value. Most items are in the grains and pulses categories. With increasing
number of retailers, discount is what most consumers look for.
Each store has 12-15 employees including a store manager without any gender
of age bias. The company has also established "Bharti Academy of Retail" in
association with Global Retail School of Chandigarh for imparting training for
the retail business.
The stores, known as 'Easy Day', would be a one-stop shop to cater to every
family's day-to-day needs, company officials said, adding that "it will bring
together a relevant and wide product range, good quality products and great-
in-experience and service-all under one roof".
Bharti Retail Ltd.
’’’Bharti Retail Ltd.’’’ is a wholly owned subsidiary of Bharti Enterprises.
Bharti Retail operates a chain of multiple format stores. The company’s
neighborhood format stores operate under the "Easy day" brand and the
compact hypermarket format under the “Easy day market” brand. Recently the
company has become more involved in the food economic sectors, with a joint
partnership in the agricultural company Field Fresh.
48. Bharti Retail Pvt, Ltd. operates retail stores. It offers food and grocery
categories, fresh fruits and vegetables, meat and poultry, dairy products,
staples, FMCG and processed foods, electronics and appliances, clothing and
footwear, furniture and furnishing, and other household articles. The company
was incorporated in 2007 and is based in India. It has stores in Punjab,
Rajasthan, Haryana, and Uttar Pradesh, as well as in Delhi. Bharti Retail Pvt,
Ltd. operates as a subsidiary of Bharti Enterprises Limited.
Bharti Retail Pvt Ltd. announced that the company will soon enter western
India with its first hypermarket in Mumbai. The company has signed a 60,000
soft store in the Neptune Magnet mall of the city's Bhandup area and this is
expected to open in the first quarter of 2011.
After Mumbai, the company plans to open 20 more stores in cities such as
Mumbai, Pune and Nanded. The company is also planning to set up a mother
distribution center on the Mumbai-Pune highway.
The company also planned to open stores in the south and signed half a dozen
stores in the region.
Bharti Enterprises tied-up with Wal-Mart for opening a chain of retail stores
all over India. Though the retail chain store venture is yet to see the light, the
two companies, in August 2007, made a surprise statement that they have
signed a wholesale cash-and-carry deal. The companies would open 10 - 15
cash-and-carry facilities over 7 years and would employ 5,000 people. Each
store would occupy 50,000-100,000 square feet.
The other retail companies of Bharti group are Bharti Retail (Holdings)
Private Limited, Bharti Retail Resources Private Limited and Cedar Support
Services Ltd.
The format has been branded `Easy Day’ as first reported. The stores range
between 2,500 to 4,500 square feet. With the Easy Day stores, Bharti now
joins the ranks of other Indian conglomerates like Reliance Retail and Aditya
49. Birla Group, which have launched chains of their retail stores across the
country.
Wal-Mart Inc has tied up with Bharti Enterprises for entering the Indian
market. Wal-Mart has entered into a technical agreement with Bharti for its
retail stores, where it provides assistance and technical know-how to Bharti on
how to operate and manage retail stores. Mike Duke, vice-chairman, Wal-Mart
Inc, had already... hinted that the retail store would not sport the Wal-Mart tag.
He said that nearly three fourths of Wal-Mart international’s retail operations
are under 52 different local brands, since the company wants to be seen as a
local retailer in any area operates rather than a retail behemoth.
Wal-Mart Stores, Inc. (branded as Wal-Mart) is an American public
corporation that runs a chain of large, discount department stores. It is the
world's largest public corporation by revenue, according to the 2008 Fortune
Global 500.
The company was founded by, Sam Walton, who opened the first Wal-Mart
discount store in Rogers Arkansas back in 1962, and 47 years later, Wal-Mart
operates 8,159 units in 15 countries.
Incorporated on October 31, 1969, and listed on the New York Stock
Exchange in 1972, Wal-Mart is the largest private employer which employs
over 2.1 million people worldwide.
50. Wal-Mart operates in Mexico as Walmex, in the United Kingdom as Asda, in
Japan as Seiyu, and in India as Best Price.
Wal-Mart is currently the world’s largest retailer with a total annual sale of
405,607 million (2009). Even in the midst of a recession it’s estimated that
Wal-Mart stores’ retail market share has risen markedly and they were seeing
sales gains for 2009.
As Wal Mart emerged as the world’s largest retailer in a short span of time,
critics are worried about its impact on local communities, particularly on
“mom and pop shops” for their survival. There have been several studies on
the economic impact of Wal-Mart on small towns and local businesses, jobs,
and taxpayers.
Products of wal mart:
Discount stores:
Sam Walton opened his first Wal-Mart discount store in 1962. Today, there
are 810 stores offering a pleasant and convenient shopping experience across
the United States. The size of an average store is 107,000 square feet. Each
store employs about 225 associates.
Stores feature wide, clean, brightly-lit aisles and shelves stocked with a variety
of quality, value-priced general merchandise, including family apparel,
Automotive products, Health and beauty aids, Home furnishings, Electronics,
Hardware, Toys, Sporting goods, Lawn and garden items, Pet supplies,
Jewelry, House wares.
Supercenters:
Supercenters were developed in 1988 to meet the growing demand for
convenient, one-stop family shopping featuring our famous Every Day Low
Prices. It saves time and money by combining a full grocery and our general
merchandise under one roof. There are 2,737 Supercenters nationwide, and
51. most are open 24 hours in US. Supercenters average 187,000 square feet and
employ about 350 or more associates.
Supercenter groceries features include bakery goods, daily foods, meat and
dairy products, frozen foods, fresh produced, Canned and packaged goods, dry
goods and staples, condiments and spices beverages, household supplies etc.
Neighborhood markets:
Neighborhood Markets offer a quick and convenient shopping experience for
customers who need groceries, pharmaceuticals, and general merchandise all
at our famous Every Day Low Prices. First opened in 1998, there are now 151
Neighborhood Markets, each employing about 95associates. A typical store is
about 42,000 square feet. Neighborhood Markets feature a wide variety of
products like health and beauty aids, pet supplies, stationery and paper goods,
household supplies etc.
Supermercado de Wal-Mart:
Wal-Mart opened "Supermercado de Wal-Mart" locations to appeal to
Hispanic communities in the United States.
Sam's Club:
Sam's Club is a chain of warehouse clubs which sell grocery and general
merchandise in large quantities. Sam's Club stores are "membership" stores
and most customers buy annual memberships. However, non-members can
make purchases either by buying a one-day membership or paying a surcharge
based on the price of the purchase. Some locations also sell gasoline. The first
Sam's Club opened in 1983 in Midwest City, Oklahoma under the name
"Sam's Wholesale Club".
Business models for entry in Indian markets
Due to the FDI restrictions the international players are looking for alternative
avenues to enter the Indian markets. However, FDI restrictions in retailing
52. have not deterred prominent international players from setting up shops in
India.
In recent developments, the Australian retail giant Woolworth Ltd made in
innovative entry in India’s retail space, with India’s Tata group.
The Tata group has floated Infiniti Retail Ltd, in venture with which will sell
consumer goods and electronics across the country. Infiniti Retail will be a
100 per cent subsidiary of Tata Sons and will receive an initial equity infusion
of Rs 4 billion. This Tata retail venture joined hands with Australian retail
giant Woolworths Ltd, which currently operates more than 2,000 stores in 12
different formats. While Infiniti will own and run retail operations in India,
Woolworths, which has attained notable success in selling electronics and
consumer goods through its Dick Smith Electronics chain, will provide
technical support and strategic sourcing facilities from its global network.
At present entry into India’s retail sector can be done through three different
routes. The chart below shows the current formats permitted by the
Government of India for the International players. Current entry options for
foreign players Franchise agreements
•Most widely used entry route by multinational retailers
Fast food retailer Domino’s entered India through master franchise
root while Pizza Hut entered through regional franchisee Cash and
Carry wholesale trading
100% FDI is allowed in wholesale trading which involves building of a
large distribution infrastructure to assist local manufacturers
The wholesaler deals only with smaller retailers and not consumers
Metro AG of Germany was the first significant global player to enter
India through this route Strategic licensing agreements
Foreign company enters into a licensing agreement with a domestic
retailer
Mango, the Spanish apparel brand has entered India through this route
with an agreement with Pyramids, Mumbai
SPAR entered into a similar agreement with g Food Lands Pvt. Ltd
Corporate Catalyst India A report on Indian Retail Industry
54. PROFILE OF THE COMPANY
NATIONAL HANDLOOM
National handloom is providing quality services to customers since 1979. Its
branches are in Jodhpur, Jaipur, Barmer, & Ahmedabad. It provides the
facility of home delivery and online shopping. It is a traditional store.
Traditionally the retail business is run by having Shop in the front & house at
the back. More than 99% retailers function in less than 500Sq.Ft of area. All
the merchandise was purchased as per the test & vim and fancies of the
proprietor also the pricing was done on ad hock basis or by seeing at the face
of customer. Generally, the accounts of trading & home are not maintained
separately.
Profits were accumulated in slow moving & non-moving stocks which were to
become redundant or consumed in-house. Thus profits were vanished without
their knowledge. The Manufactures were to distribute goods through C&F
55. (Carry and Forward) agents to Distributors & Wholesalers. Retailers happen to
source the merchandise from Wholesalers & reach to end-users. The
merchandise price used to get inflated to a great extent till it reaches from
Manufacturer to End-user. Selling prices were largely not controlled by
Manufacturers. Branding was not an issue for majority of customers. More
than 99% customers are price sensitive & not quality or Brand Sensitive at the
same time they are Brand conscious also.
Products Offered by National Handloom
HOME FURNISHING:
Drawing Room Bedroom
Door Mat Bed Sheet
Carpet Pillows
Curtains Pillow Cover
Kitchen Bathroom
Apron Bath Mats
56. Kitchen Napkin Towel Gift Sets
FOOD MART:
FOOD &
BEVERAGES
SPORTS & FITNESS:
INDOOR
GAMES
OUTDOOR GAMES
Basket Ball Cricket Bat
T.T. Bat Football
Boxing Kit Lawn Tennis
Swimming
Costumes
Tennis Racket
Water Ball Tennis Ball
57. Fitness Equip.
FOOTWEAR:
BOYS GIRLS
Shoes Slippers
Sandals Sandals
LADIES MENS
Shoes Shoes
Slippers Slippers
TELEMART:
Communication Mobile Accessories
Mobile Mobile Batteries
Mobile Charger
Mobile Dori
LADIES ACCESSORIES:
Upper Lower
Kurta Pants Jeans
Skirt Top Capri
Ethnic Winter Wear
Nighty Jackets
g Gs
Sharara Blazer
Salwar Suit Track Suit
59. Big Bazaar
“Isse sasta aur accha kahin nahi”
Shop till you drop! Big Bazaar has democratized shopping in India and is so
much more than a hypermarket. Here, you will find over 170,000 products
under one roof that cater to every need of a family, making Big Bazaar India’s
favorite shopping destination.
Big Bazaar stepped into North Karnataka in Hubli on July 2007 with floor
space of 50,000 sq. ft. at Gokul Road, Hubli. A place well connected with Air,
Road and Rail transportation. Big Bazzar is the first retail outlet to the people
of Hubli. This is the ninth outlet in the state. This takes Big Bazaar to the next
level. At Big Bazaar, you will get the best products at the best prices this is our
guarantee. From apparel to general merchandise like plastics, home
60. furnishings, utensils, crockery, cutlery, sports goods, car accessories, books
and music, computer accessories and many, many more. Big Bazaar is the
destination where you get products available at prices lower than the MRP,
setting a new level of standard in price, convenience and quality.
Because of its First mover advantage, it could able to grab good market with
good customer base. If you are a fashion conscious buyer who wants great
clothes at great prices, Big Bazaar is the place to be. Leveraging on the
company’s inherent strength of fashion, Big Bazaar has created a strong value-
for-money proposition for its customers. This highlights the uniqueness of Big
Bazaar as compared to traditional hypermarkets, which principally revolve
around food, groceries and general merchandise.
Boasting of an impressive array of private labels, Big Bazaar is continually
striving to provide customers with a ‘complete’ look. So be it men’s wear,
women’s wear, kids wear, sportswear or party wear, Big Bazaar fashions has it
all!
Big Bazaar has clearly emerged as the favorite shopping destination for
millions of its consumers, across the country, it’s success is a true testament to
the emotional bonding it has established with the Indian consumer, on account
of its value offerings, aspirational appeal and service levels. We believe Big
Bazaar is a true Pan-Indian model that can enter into most towns in India and
democratize shopping everywhere.
The project is all about to determine the satisfaction level of the customers
from the store environment and analyze the impact of retailing mix on the
customer satisfaction level, and to improve the store environment to increase
the sales and to attract the customers, this study helps to improve the
environment of the store to reach the customer satisfaction level and improve
the merchandising in Big Bazaar.
Big Bazaar was launched in September, 2001 with the opening of three stores
in Calcutta, Bangalore and Hyderabad in 22 days. Within a span of ten
years, there are now 148 Big Bazaar stores in 80 cities and towns across India.
61. Big Bazaar is not just another hypermarket. It caters to every need of your
family. Where Big Bazaar scores over other stores is its value for money
proposition for the Indian customers.
At Big Bazaar, customers can definitely get the best products at the best prices
- that's what they guarantee. With the ever increasing array of private labels, it
has opened the doors into the world of fashion and general merchandise
including home furnishings, utensils, crockery, cutlery, sports goods and much
more at prices that will surprise you. And this is just the beginning. Big Bazaar
plans to add much more to complete customers shopping experience.
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.
A typical Big Bazaar is spread across around 50,000 square feet of retail
space. While the larger metropolises have Big Bazaar Family centers
measuring between 75,000 square feet and 1,60,000 square feet, Big Bazaar
Express stores in smaller towns measure around 30,000 square feet. Most of
the Big Bazaar stores are multi-level and are located in stand-alone buildings
in city centers as well as within shopping malls. These stores offer over
200,000 SKUs in a wide range of categories led primarily by fashion and food
products. Big Bazaar has initiated the process of Auto Replenishments
Systems, thus improving operational efficiencies and productivity. The
company has also rationalized nearly 250 vendors through better vendor
management in terms of potential to expand, and for inclusion and upgradation
to the online B2B platform. In FY 2008, the company opened the 100th Big
Bazaar store which marked the fastest ever expansion by a hypermarket
format.
In 2006-2007, more Indians discovered the value of shopping in Big Bazaar.
And with the launch of each store, we discovered more value in terms of
operational efficiency. Big Bazaar launched 27 new stores in 22 cities,
covering over 1.40 million square feet. As of June 2007, there were 56 Big
62. Bazaar stores across 43 cities. While Big Bazaar continued to expand in the
large cities, it also tapped consumption potential in smaller cities like Agra,
Allahabad, Coimbatore, Surat, Panipat, Palakkad, Kanpur and Kolhapur.
The year under review also witnessed realigning of business teams with shared
experience in category management, sourcing, front-end operations and
business planning. In addition, separate teams have been formed to look into
all aspects of new store launches and to manage mature stores. This provides
more flexibility and focus in expansion plans. The increase in SKUs in
existing categories and the introduction of new categories encouraged the
opening of larger stores or Super centers, measuring 100,000 square feet or
more. There are now 5 Big Bazaar Super Centers. Considering this scale of
expansion, technology plays a significant facilitating role. The introduction of
SAP in 2005-06 and its roll out during the year positively impacted the
business.
Food Bazaar, a supermarket format was incorporated within Big Bazaar in
2002 and is now present within every Big Bazaar as well as in independent
locations. There are now 169 Food Bazaar outlets, including those located
within Big Bazaar. Based on the company’s in-house consumer data and
research, and in cognizance with observations on customer movements and the
shopping convenience factor, Food Bazaar has initiated certain refurbishments
and layout design across all stores. The intention is to continuously change
with the times and demands of the evolving Indian consumer.
Food Bazaar also witnessed healthy expansion during the year 2006-07,
making its presence felt in nearly 26 cities and adding 40 stores during the
year under review. The total count of Food Bazaars as on 30th June 2007
stood at 86 stores. The year under review witnessed the company’s private
label program gaining significant attraction. The brands have been very
competitive vis-à-vis the established brands in quality and price terms, and
have in fact scored better than national or international players in certain
categories. The share of private labels as a percentage of total Food Bazaar
63. revenues has increased significantly and comprises nearly 50 merchandise
categories.
While Fresh & Pure brand entered categories like cheese slices, frozen peas,
honey, packaged drinking water and packaged tea, the Tasty Treat brand
received a very favorable response in new categories like bhujiya and wafers.
In the home care category, Care mate launched aluminum foil and baby
diapers while Clean mate launched detergent bars and scrubbers.
A new format ‘BB Wholesale Club’ was launched and 4 such stores have been
opened so far. To be managed by Food Bazaar from the ensuing financial
year, this format sells only multi-packs and bulk packs of a select range of fast
moving categories and caters to price sensitive customers and smaller retailers.
The company has also forged tie-ups with established companies like ITC,
Adanis, DCM Group, USAID and other farm groups in Maharashtra and
Madhya Pradesh to source directly from them. These alliances are expected to
drive efficiencies as well as bring better products to consumers. By the end of
FY 07-08, the total number of Food Bazaar stores was expected to be 200.
A typical Big Bazaar is spread across around 50,000 square feet of retail
space. While the larger metropolises have Big Bazaar Family centers
measuring between 75,000 square feet and 1,60,000 square feet, Big Bazaar
Express stores in smaller towns measure around 30,000 square feet. Most of
the Big Bazaar stores are multi-level and are located in stand-alone buildings
64. in city centers as well as within shopping malls. These stores offer over
200,000 SKUs in a wide range of categories led primarily by fashion and food
products. Big Bazaar has initiated the process of Auto Replenishments
Systems, thus improving operational efficiencies and productivity. The
company has also rationalized nearly 250 vendors through better vendor
management in terms of potential to expand, and for inclusion and upgradation
to the online B2B platform. In FY 2008, the company opened the 100th Big
Bazaar store which marked the fastest ever expansion by a hypermarket
format.
Big Bazaar is part of Future Group and is owned through a wholly owned
subsidiary of India Limited that is listed on Indian stock exchanges.
66. 1. TITLE OF THE STUDY
“Comparative study of service quality of BIG BAZAR and NATIONAL
HANDLOOM”
2. DURATION OF THE STUDY
The duration of the project completion is 15 days.
3. OBJECTIVE OF THE STUDY
The main objective of the study is to analyze the service quality of retail sector
in India with special reference to National Handloom and Big Bazaar.
1 To have an insight into the factors contributing to service sector.
2 To study service related factors amongst the Retail Sector in India.
3 To study service related factors between National Handloom and Big
Bazaar.
4. TYPE OF RESEARCH USED: Exploratory and Descriptive
TYPE OF DATA: Primary and Secondary
SOURCE OF PRIMARY DATA:
THE QUESTIONNAIRE
The data has been collected with the help of well structured closed
questionnaire. Apart from personal information the question from different
aspect related to the employee and satisfaction are included in the
questionnaire.
The primary data are those, which are collected afresh and for first time and
thus happen to be original in character.
SOURCE OF SECONDARY DATA
67. The secondary are those which have been collected by someone else and
which have already been passed through statistical process.
SAMPLING
Simple random sampling
SAMPLE SIZE: 100(50+50)
SAMPLING UNIT: Customers at Retail Service sector at NATIONAL
HANDLOOM and BIG BAZAR, JAIPUR.
Scope of the Study: -The scope of the study will be specifically measure the
services provided by the National Handloom and Big Bazaar. The study cover
how the services quality should be given to the customer by the retail stores.
The study will study in distinguishing the services provided by them. The
study also helps in analyzing and comparing the two retail stores- Big Bazaar
and National Handloom.
Big Bazaar is being selected because of following reasons: -
* Big Bazaar store mainly attracts middle class and lower-middle class with
the discounted pricing and lucrative offers at different products.
*Big Bazaar introduces a new sales-campaign - "Sabse Sasta Din" - means
"The Cheapest Day".
*Big Bazaar comes much closer to their customers and the new ones with
exclusive products and innovative service.
* In big bazaar customers needs a product at a reasonable price.
National handloom is selected because of following reasons: -
*National handloom focuses on the traditional products.
*This retail store is oldest retail in the Jaipur till now.
*In national handloom wide variety of products is there.
68. Limitations of the study:
1. Time Constraint: Analysis pertaining to project title and
the field survey has to be done in a span of two months.
This may limit the scope of the survey.
2. Biasness: The respondents may give a biased view.
3. Some respondents refuse to co-operate.
4. Some respondents replied half heartedly.
5. Some respondents gave incomplete information.
70. Most of the people who visit to the stores are of age group between 25-
45 yrs.
People usually visit the store once or twice a week in a week i.e. in
weekends
They have different variety of product in food bazaar and house hold
utensils
The main dissatisfaction for the customer is in the billing section and at
parking space.
Discounts and offers are doing well in the store.
Inside the store, employee’s interaction is very less with customers.
Location of retail shop is outstanding.
Cleanliness and hygiene maintained in the store is not up to mark.
Retail shop provides value added service like home delivery,
alteration, helpline etc. but very few customers go for it.
Electronic and print media has high reach in consumer and plays a
major role in communication about promotional scheme and offers
where as word of mouth make significant impact in decision making
than any other means of communication.
Customers don’t find brands they expect in Big Bazaar especially in
apparels section.
72. Ages of respondents.
25-30
30-45
45-50
Above 50
AGE NO OF
RESPONDANTS
PERCENTAGE
25-30 15 15%
30-45 35 35%
45-50 35 35%
Above 50 15 15%
TOTAL 100 100%
ANALYSIS:
From the survey it was found that amongst 100 respondents.
a) 15% of the respondents are under 30 years old.
b) 35% of the respondents are between 30 and 35 years of age.
c) 35% of the respondents are between 40 and 50 years of age.
73. d) 15% of the respondents are more than 55 years of age.
Occupation of the Respondents
Service
Business
Student
Self Employed
OCCUPATION NO OF
RESPONDANTS
PERCENTAGE
Service 40 40%
Business 25 25%
Student 20 20%
Self Employed 15 15%
TOTAL 100 100%
ANALYSIS:
From the survey it was found that amongst 100 respondents.
74. a) 40% of the respondents are servicemen.
b) 25% of the respondents are businessmen.
c) 20% of the respondents are students.
d) 15% of the respondents are self-employed.
Income level of Respondents
1.5 lacs
1.5 – 3 lacs
3 – 4.5 lacs
above 4.5 lacs
Income
Level
NO OF
RESPONDANTS
PERCENTAGE
1.5 Lacs 6 6%
1.5 – 3 lacs 25 25%
3 – 4.5lacs 65 65%
above 4.5
lacs
4 4%
TOTAL 100 100%
ANALYSIS:
75. From the survey it was found that amongst 100 respondents:
a) 6% of the respondents have an average annual income upto1.5 lac.
b) 25% of the respondents have an average annual income from 1.5 lacs to 3
lacs
c) 65% of the respondents have an average annual income from 3 lacs to 4.5
lacs
d) 4% of the respondents have an average annual income above 5 lac.
Q.1. Have you visited both National Handloom and Big Bazar?
Response No. of Respondents
YES 70
NO 30
TOTAL 100
INTERPRETATION:
76. 70 out of 100 respondents (70%) have visited both the big bazaar and national
handloom retail stores. So it can be interpreted that most of them were able to
compare the same aspects in both the retail stores.
Q.2. which retail stores do you prefer for shopping?
Retail Store No. of Respondents
Big Bazaar 56
National Handloom 16
Others 28
Total 100
INTERPRETATION:
56 out of 100 (56%) respondents prefer big bazaar for their shopping needs
while only 16 out of 100 (16%) were agreed to go for national handloom. Rest
28 (28%) prefer to go for other retailers like reliance, shoppers stop, more etc.
Q.3.Is the store conveniently located?
Store Convenience BIG BAZAAR NATIONAL
HANDLOOM
YES 60 20
77. NO 24 64
DOESN’T MATTER 16 16
TOTAL 100 100
National Handloom
Big Bazar
78. INTERPRETATION:
60% respondents like the location of National Handloom in Jaipur city and
24% felt it in-convenient. While Big Bazar store location was disliked by 64%
respondents yet 20% liked its location.
Q.4 which outlet is good in terms of degree of service?
Big Bazaar- National Handloom-
A. very good 40% 20%
B. good 50% 50%
C. bad 10% 30%
Degree of Service BIG BAZAAR NATIONAL
HANDLOOM
VERY GOOD 40 20
GOOD 50 50
BAD 10 30
TOTAL 100 100
BIG BAZAAR
80. INTERPRETATION:
In terms of service quality, equal percentage of respondents (50%) were agree
for both the retailers to pursue good services but 30% respondents declared
that the services of national handloom are not good.
Q.5. is it easy to enter and exit from the parking lot?
Big Bazaar- A. yes - 38% B. no- 62%
National Handloom- A. yes- 64% B. no- 36%
Parking Space YES NO
BIG BAZAAR 38 62
NATIONAL
HANDLOOM
64 36
TOTAL 100 100
BIG BAZAAR
81. NATIONAL HANDLOOM
INTERPRETATION:
Due to more number of arrivals, it does not seem comfortable for 62%
respondents to enter and exit the parking lot at Big Bazaar, while easy day
proven more comfortable at its parking facility.
Q.6 which retail outlet provide the bigger line and variety of the products?
Product Range No. of Respondents
BIG BAZAAR 40
NATIONAL HANDLOOM 30
NONE OF THEM 30
TOTAL 100
82. INTERPRETATION:
40% respondent found that maximum product varieties are available at big
bazaar while 30% respondents National Handloom as the more product line
holder.
Q.7. How do the employees behave and respond in outlet?
Employee’s
Behaviors
Very
good
Good No response Bad TOTAL
BIG BAZAAR 16 48 26 10 100
NATIONAL
HANDLOOM
24 50 14 12 100
BIG BAZAAR
83. NATIONAL HANDLLOM
INTERPRETATION:
Employees, normally sales personnel are found to behave on a decent manner
at both the retail stores (48% and 50% resp.), but still some customers face
problem at retail stores due to avoidance by the employees.
Q.8. What about the ambiance and store environment?
Ambiance Very Good Average Bad Total
85. INTERPRETATION:
The ambiance of easy day is more influential (46%) than the big bazaar (40%).
National Handloom day maintained the ambiance to attract more and more
customers and come in the front line among competitors.
Q.9. Please rate Big Bazaar and National Handloom from 1 to 5 rating scale?
Big Bazaar National
Handloom
After sale service 4 4
Quality of product 3 4
Reliability of prices 4 2
Attractive promotions 5 2
Easy Availability of goods 4 3
Ambience 3 3
INTERPRETATION:
Big bazaar got the advantage of customer loyalty and expertise in the field,
that’s why it’s ranking for all the aspects except quality of service is higher
than national handloom.
Q.10. overall, which retail store do you think providing the best service
quality?
Overall Service No. of Respondents
BIG BAZAAR 54
86. NATIONAL HANDLOOM 18
OTHER 28
TOTAL 100
INTERPRETATION:
After looking the entire factor like quality of products and services,
ambiances, customer reach, product range etc., 54% respondents declare
National Handloom as the best service quality provider.
88. SWOT OF NATIONAL HANDLOOM:
Strengths
• Experienced marketing team & executive staff.
• Strong culture, ethics and values are followed
• Emphasis on providing total customer satisfaction
• Variety of stuff under single roof
• Increase sales with the help of healthy competition between different
department
• Maintains good employer-employee relation
• Cost control initiatives that is critical in a retail operations business
Weakness: -
• old style of product.
89. • Unavailability of popular brand items with regard to clothing.
Opportunities: -
• Organized Retail less penetrated in India so it acts as a great
opportunity to the organization for its growth.
• Economy is developing as the employment opportunities are increasing
and the income of the people is also increasing which increases life
standards of people.
• Company has more scope of expansion in two and three tier cities.
Threats: -
• Competitors Strategies
• Government policies.
• Unorganized Retail sector
• Foreign direct investment causes more problems in future because of
that many mergers and acquisition are happening in Indian retail sector
SWOT OF BIG BAZAAR:
Strengths
• EDLP [ Every Day Low Pricing]
• Experienced marketing team & executive staff.
• Strong culture, ethics and values are followed
• Emphasis on providing total customer satisfaction
• Point of purchase promotion to increase the purchase
• Variety of stuff under single roof
• Increase sales with the help of healthy competition between different
department
• Maintains good employer-employee relation
• Cost control initiatives that is critical in a retail operations business
90. • Periodical reviews of the various operations have been done on regular
basis to identify the any possible threat and address the same within
time.
Weakness: -
• Unable to meet store opening targets.
• Unavailability of popular brand items with regard to clothing.
Opportunities: -
• Population of the country is growing where the scope of market is kept
on increasing for the retail sector.
• Organized Retail less penetrated in India so it acts as a great
opportunity to the organization for its growth.
• Evolving consumer preferences.
• Economy is developing as the employment opportunities are increasing
and the income of the people is also increasing which increases life
standards of people.
• Company has more scope of expansion in two and three tier cities.
Threats: -
• Competitors Strategies
• Advancement of technology day by day.
• Government policies.
• Unorganized Retail sector
• Foreign direct investment causes more problems in future because of
that many mergers and acquisition are happening in Indian retail sector
92. Big Bazaar and National Handloom are both mix retail store. But after the
research done we conclude that Big Bazaar is best than National Handloom in
providing services to the customer.
Both offers a wide variety of products of different prices and different
qualities satisfying most of its customers.
Prices and offers in Big Bazaar is more reasonable than the National
handloom have been one of the main attractions and reasons for its
popularity. The price ranges and the products offered are very
satisfying to the customers.
Considering the fact that there are huge middle class families in India,
Big bazaar has had a huge impact on the middle class section of India,
the prices, variety and sales strategy has helped in getting the middle
income groups getting attracted towards Big Bazaar.
93. The store layout and the assortment of goods is not the best at Big
Bazaar, Customers find it hard to find what they require; this leads to
dissatisfaction of customers.
Big Bazaar is not acclaimed for high class service. The staffs recruited
is not very well trained and the billing queues take a long time to
move, this irritates customers which makes them visit the store more
seldom.
The customer gets all kind of products in the Big Bazaar, i.e. they are
following good merchandising mix, but in some section like apparels
they have to keep different brands in order to attract more customer.
Word of mouth publicity played major role in making Big Bazaar so
popular where as media is used to communicate new offers at the store.
Customers are not aware and hence don’t avail value added services
provided by the store. Customers are more satisfied with the
merchandising present in the food bazaar and household utensils
section.
94. Recommendations and
Suggestions
Customers are becoming price conscious, they are having many
options in the market. Considering the consumer buying behavior the
store should take certain definite steps like retaining customers by
giving more quality service to the customers to match their
expectations.
The trend today has been to combine shopping with various offerings
for ex… apart from shopping a customer enjoys food courts, games
and many others services which competitors provide.
Shopping has made people spend not just on their requirements of
goods to be bought but to look on the totality of the experience have an
experience of quality service, enjoy the fun zone, have a nice time