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A

RESEARCH PROPOSAL

ON

A STUDY OF CUSTOMER SATISFACTION OF BIG

BAZAAR OUTLETS IN Vapi And Bharuch.

Submitted to:

Gujarat Technological University

In partial fulfilment of the requirement of the award for the Degree of

MASTER OF BUSINESS ASMINISTRATION

UNDER THE GUIDANCE OF:

Faculty GuideMr. Subhash Yadav

Submitted by:

Tejas Patel

1159

[Batch : 2012-13]

MBA SEMESTER III

----------------------------------------------------------------------------------------

Institutes Name - Narmada college of Management, Bharuch

MBA PROGRAMME

Affiliated to Gujarat Technological University Ahmedabad

January, 2013


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INSTITUTES CERTIFICATE

Certified that this Industry defined Problem and Research Proposal Titled A

study of customer satisfaction of Big Bazaar outlets in Vapi / Bharuch is the

bonafide work of Miss. , who carried out the research under my

supervision. I also certify further, that to the best of my knowledge the work

reported herein does not form part of any other project report or dissertation on the

basis of which a degree or award was conferred on an earlier occasion on this or

any other candidate.

Signature of the Faculty Guide

(Mr. Subhash Yadav )

_______________________________________________________


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ACKNOWLEDGEMENTS

My research interest in customer satisfaction of Big Bazaar outlet.

Firstly, I would like to thank Gujarat Technological University and Narmada College of

Management for giving me an opportunity to work on such kind of project.

I am particularly appreciative to Mr. Subhash Yadav who gave his time to assist with my

requests for information, as well as for his guidance and valuable assistance from the offset of

this project. Her insights and remarks were of great value.

I like to express my gratitude to all those who have helped me directly or indirectly.

Thank you,

Tejas Patel

1159


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TABLE OF CONTENT

SR NO. PARTICULAR PAGE NO

PART 1

1.1 General Information

1.2 Introduction to IndustryPART 2

2.1 Literature Review

2.2 Objective of study

PART 3

3.1 Research Design

3.2 Source of data

3.3 Research Sample

4 Appendix - Questionnaire


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Part-1

1.1.GENERAL INFORMATION

Retailing in India is one of the business enterprises of its economy and accounts for 14 to15% of

its GDP. The Indian retail market is estimated to be US$ 450 billion and one of thetop five retail

markets in the world. India is one of the fastest growing retail markets in theworld.

India's retailing industry is essentially owner manned small shops account for morethan 90%. In

2010, larger format convenience stores and supermarkets accounted for about4% of the industry,

and these were present only in large urban centres.

Until 2011, Indian central government denied Foreign Direct Investment (FDI) in multi-brand

retail, forbidding foreign groups from any ownership in supermarkets, conveniencestores or any

retail outlets. Even single-brand retail was limited to 51% ownership and abureaucratic process.

In November 2011, India's central government announced retail reforms for both multi-brand

stores and single-brand stores. These market reforms paved the way for retail innovation and

competition with multi-brand retailers such as Wal-Mart, Carrefour and Tesco, as well single

brand majors such as IKEA, Nike, and Apple. The statement flickers intense activism, both in

opposition and in support of the reforms. In December 2011,under pressure from the opposition,

Indian government placed the retail reforms on hold tillit reaches a consensus. In January 2012,

India approved reforms for single-brand stores welcoming anyone in the world to innovate in

Indian retail market with 100% ownership,but imposed the requirement that the single brand

retailer source 30% of its goods from India. Indian government continues the hold on retail

reforms for multi-brand stores.

A retailer or retail store is any business enterprise whose sales volume comes primarily from

retailing. Retail organizations exhibit great variety and new forms keep emerging. There are

store retailers, non store retailers, and retail organizations. Consumers today can shop for goods

and services in a wide variety of stores. The best-known type of retailer is the department store.

Japanese department stores such as Takashimaya and Mitsukoshi attract millions of shoppers

each year. These stores feature art galleries, cooking classes, and childrens playgrounds.


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A retailer is at the end of the distributive channel. He provides goods and service to the

ultimate consumers. This he does through his small organization, with the help of a few

personnel. In an individual retail store there is not much scope for organization except in the

sense that the shopkeeper has to organize apportions his time and resources. The need for

organization becomes essential as soon as he hires people o enters into partnership or takes the

help of members of his family in running his store. A retailer deals in an assortment of goods to

cater to the needs of consumers. His objective is to make maximum profit out of his enterprise.

With that end in view he has to pursue a policy to achieve his objective. This policy is called

retailing mix. A retailing mix is the package of goods and services that store offers to the

customers for sale. It is the combination of all efforts planned by the retailer and embodies the

adjustment of the retail store to the market environment. Retailing mix, a communication mix

and a distribution mix. The maximum satisfaction to the customers is achieved by a proper blend

of all three.

The success of the retail stores, therefore, depends on customers reaction to the retailing

mix which influences the profits of the store, its volume of turnover, its share of the market, its

image and status and finally its survival.

1.2.Introduction to Industry

Big Bazaaris a chain ofhypermarkets in India, with more than 100 stores in operation. It is a

subsidiary of Future Group Venture Ltd's, and follows the business model of United States-based

Wal-Mart. Facilities offered by Big Bazaar Online shopping: Big Bazaar has an official

website, FutureBazaar.com, which is one of the most favorite sites among people of India for

online shopping. Future Bazaar is an online business venture of Future Group, which sells an

assortment of products such as fashion, which includes merchandise for men and women, mobile

accessories, mobile handsets and electronics like home theatres, video cameras, digital camera,

LCD TVs, kitchen appliances and many more.

Discounts: Hfte ka sabse sasta din was introduced by the Big Bazaar, wherein extra and

special discounts were offered on Wednesday every week, to attract the potential buyers into

their store.

Security check: At each exit of Big Bazaar, they use alarm systems or Electronic Article

Surveillance system, which detects the products that has attached tags or not.
http://en.wikipedia.org/wiki/Hypermarkethttp://en.wikipedia.org/wiki/Wal-Marthttp://en.wikipedia.org/wiki/Wal-Marthttp://en.wikipedia.org/wiki/Wal-Marthttp://en.wikipedia.org/wiki/Hypermarket


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1. Big Bazaaris a chain of hypermarket in India, which caters to every familys needs and

requirements.

2. Big Bazaar has released the doors for the fashion world, general merchandise like sports

goods, cutlery, crockery, utensils, and home furnishings etc. at best economical prices.

3. Big Bazaar group offers more than 100 stores all over the country with an amalgamation of

Indian bazaars feel and touch with a convenience and choice of the modern retail facilities .

4. The worldwide country chain, Big Bazaar, is formed by CEO of Future Group, Mr.

Kishore Biyani. Their basic attraction associated with reasonable prices is their Unique

Selling Price.

Future Group

Future Group is one of the countrys leading business groups present in retail, asset

management, consumer finance, insurance, retail media, retail spaces and logistics. The groups

flagship company, Pantaloon Retail (India) Limited operates over 10 million square feet of retail

space, has over 1,000 stores and employs over 30,000 people. Future Group is present in 61

cities and 65 rural locations in India. Some of its leading retail formats include, Pantaloons, Big

Bazaar, Central, Food Bazaar, Home Town, eZone, Depot, Future Money and online retail

format, futurebazaar.com.

Future Group companies includes, Future Capital Holdings, Future Generali India Indus League

Clothing and Galaxy Entertainment that manages Sports Bar, Brew Bar and Bowling Co. Future

Capital Holdings, the groups financial arm, focuses on asset management and consumer credit.

It manages assets worth over $1 billion that are being invested in developing retail real estate and

consumer-related brands and hotels.

The groups joint venture partners include Italian insurance major, Generali, French retailer

ETAM group, US-based stationary products retailer, Staples Inc and UK-based Lee Cooper and

India-based Talwalkars, Blue Foods and Liberty Shoes.Future Groups vision is to, deliver

Everything, Everywhere, Every time to Every Indian Consumer in the most profitable manner.

The group considers Indian-ness as a core value and its corporate credo is- Rewrite rules,

Retain values.


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Food Bazaar

Based on the companys 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 companys private label programme gaining significant

traction. The brands have been very competitive vis--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 revenues has increased

significantly and comprise 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 namkeens and wafers. In the home care category, Caremate launched

aluminum foil and baby diapers while Cleanmate launched detergent bars and scrubbers.


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Future ideas

Future Ideas is the Innovation, Design & Incubation cell within Pantaloon Retail that stems from

the core proposition - Protecting and preserving the soul of a small business or enterprise within

a large organisation. Future Ideas deals with the whole aspect of idea creation, scenario planning

activities, alternate approaches to an issue, providing varied outcomes and solutions to a problem

and handholding the activity till its success parameters are satisfied.

A unique initiative in corporate India, Future Ideas

rests on a tripod that can be classified as

Innovation driven, Design Management approach

and an Incubation chamber, each with its own

uniqueness, yet with common objectives. The

Design Management team looks at each

observation made by the Innovation team, and

brainstorms by using a collaborative and holistic

approach. The resultant ideas are then nurtured

within the Incubation cell. The Incubation team comprises of business teams, mentored by the

Innovation and Design teams. They are people who are released from their original businesses or

concepts and made part of the entire ideation process at Future Ideas. They remain at Future

Ideas till project completion stage when the success parameters for running the business are met.

Future Ideas draws inspiration for most of its activities and projects, keeping in mind the new

genre of aspirational Indians. At any point of time Future Ideas would work on about 20 varied

projects within the Future Group.

Some of the formats that are now being incubated by this team include Top10, Depot, Star &

Sitara and Talwalkars Fit & Active. The team is also working on ideas around small format no-

frills stores, rural retailing, fashion for the masses and on projects involving women and self-help

groups.


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Big Bazaar - Isse sasta aur accha kahin nahi

Big Bazaar, one of the biggest retail format of Pantaloon Retail (India) Limited, has

democratized shopping in India and is much more than a hypermarket. Here, one finds over

170,000 products under one roof that cater to every need of a family, making Big Bazaar Indias

favorite shopping destination. Where Big Bazaar scores over other stores is its value for money

proposition for the Indian customers. Spread across 45000 sq.ft. 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

surprisingly low prices. In recent years, Big Bazaar has adopted value pricing in which they win

loyal customers by charging a fairly low price for a highquality offering. However, consistent

low price for the products is not only the universally desired characteristic; it is also a surrogatefor different offers provided by these stores at different intervals of time.

Wednesday BazaarHafte ka sabse sasta din

In January 2007, Big Bazaar introduced a Wednesday Bazaar concept called Hafte Ka Sabse

Sasta Din with the aim to give homemakers the power to save the most on this day of the week.

Wednesday Bazaar offers clothes, accessories and fashion jewellery and personal care products

on greater discounts. In the hypermarkets or supermarkets business, it is noted that the highest

footfalls generated by these stores are mostly on the weekends or on national holidays.

Therefore, it becomes very important for the retailer to plan certain offers in such a manner that

it can attract people on the weekdays too. For the customers, Wednesday Bazaar is the Hafte Ka

Sabse Sasta Din which the customers leverage on and for Big Bazaar; Wednesday Bazaar is an

opportunity to maintain footfalls to its standards on weekdays too.


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Part -2

2.2. LITERATURE REVIEW

2.1.1. Zeyad Mohammed Al-Sanousi, Customer Satisfaction Levels At

Marina Mall, (2006)

He studied relating to customer satisfaction levels at Marina Mall. This work conducts

the study through the instrument of a questionnaire which asks 300 respondents, 150 male and

150 female question relating to different aspects of the mall in the areas of selection, atmosphere,

convenience/location, salespeople, food and beverage, promotional activities as well as parking

and time preferences for visiting the mall. This research is a qualitative and quantitative nature

exploring the preferences of respondent/consumers to a variety of questions concerning the

various elements of the retail establishment that the review of literature in this study reveals as

key considerations for consumers related to retail shopping and entertainment or mall

establishments.

He concludes that the Marina Shopping Mall would do well to expand both the shopping

and parking space and that the mixture of casual, sophisticated and fast food restaurants to be

further refined. Further, this study concludes that additional fashion stores, supermarket outlets,

sophisticated eateries and new highly technological entertainment venues to be included in the

Marina Shopping Mall. If it is not possible to expand the shopping area then a revitalization

program that maximizes the use of the square footage of the mall through design and layout

improvements should be explored thoroughly. If additional parking is available then

consideration should be given for a parking deck adjoining the Marina Shopping Mall. This of

course will include the addition of new shops and restaurants as well as entertainment businesses

in the mall format.


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2.2.2.Marshall L. Fisher & etall, Retail Store Execution: an Empirical Study,

(2006)

They describe a methodology by which a retailer can identify action steps that are likelyto increase sales and customer satisfaction and demonstrate the methodology using proprietary

data from a large retailer with over 500 stores. They use monthly store-level data on a number of

operational variables including in-stock rate, store staffing level as measured by payroll and store

employee turnover, together with customer responses to satisfaction surveys.

They develop a nested three-stage econometric model (Sales equation, Satisfaction

equation & In-stock equation) to analyze the marginal effects of various execution levers on

sales, customer satisfaction and the percentage of customers who answer yes to the question

Did you find everything you were looking for?, which we term customer perceived in-stock.

Their model explains approximately 75%, 97% and 71%, respectively, of the residual variation

in sales, customer satisfaction, and customer perceived in-stock.

They find that customer perceived in-stock is primarily driven by actual in-stock and

customer rating of employee knowledge; overall customer satisfaction is primarily driven by

customer perceived in-stock, payroll level, customer rating of employee knowledge and check-

out efficiency; and sales is primarily driven by actual in-stock, overall satisfaction and payroll

level. Finally, they estimate relative magnitudes of these effects, propose specific actions to

improve sales and estimate the likely sales increase from those actions. Their results suggest that

a modest reallocation of the payroll budget among stores could be expected to yield a 2-3%

increase in sales with no increase in cost.


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2.2 Objective

To analyze how the products mix influence the customer satisfaction level.

To study the satisfaction level of customers with regard of big bazaar.

To find out the buying behavior of the customers coming in to Big Bazaar.

To identify main competitors of Big Bazaar with regard to services.


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Part -3

RESEARCH METHODOLOGY

Research methodology is the systematic way to solve the research problem. It gives an ideaabout various steps adopted by the researcher in a systematic manner with an objective to

determine various manners.

3.1RESEARCH DESIGH

A research design is considered as the framework or plan for a study that guides as well as helps

the data collection and analysis of data.

The descriptive research design has been adopted for carrying out this research.

Descriptive study: - Descriptive research, also known as statistical research, describes data and

characteristics about the population or phenomenon being studied. Descriptive research answers

the questions who, what, where, when, "why" and how.

It collects data in order to answer questions about the current status of the subject or topic of

study.

3.2 SOURCE OF DATA

Primary data: primary data means those which are collected at first hand especially for the

purpose of the study.

Primary data-Primary data will be collected through survey questionnaire.

3.3RESEARCH SAMPLE

1. Sampling Units: Customers of Big bazaar.

2. Sample Technique: Convenience Sampling.

3. Research Instrument: Structured Questionnaire.

4. Contact Method: Personal Interview.

5. Sample size: 150 customer in Vapi & 150 Bharuch


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AppendixQuestionnaire

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