Loyality Programs in Big Bazar (MR Ppt) by Vikas

Amity Business School

BY:- VIKAS DUBEY

VIVEK MAURYA

ROHIT GULATI

ASHISH TIWARI

SUNNY VERMA

PRESENTATION ONUSEFULNESS OF LOYALTY PROGRAM, BIG BAZAAR


OVERVIEW OF THE COMPANY� Big Bazaar, one of the biggest retail format of Pantaloon Retail

(India) Limited

� One finds over 170,000 products under one roof.

� They provide different offers at different intervals of time.

� They have 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 high –

quality offering.

� The added advantage for the customers shopping in Big Bazaar is

that there are all time discounts and promotional offers going on in

the Big Bazaar on its scalable products.


THE SIGNIFICANT FEATURES OF BIG

BAZAAR: � Food bazaar.

� Electronic bazaar.

� Furniture bazaar.

� FutureBazaar.com

� Amusement zone.

� Telecalling services.


PROMOTION TECHNIQUES� Big Bazaar - Isse sasta aur accha kahin nahi :- Big Bazaar has

adopted value pricing in which they win loyal customers by charging a

fairly low price for a high – quality offering.

� Wednesday Bazaar – Hafte ka sabse sasta din :- In January 2007, Big

Bazaar introduced a Wednesday Bazaar concept called “Hafte Ka Sabse

Sasta Din” with the aim to give homemakers the power to save the most

on this day of the week

� Sabse Saste Teen Din (Big days) :- In 2006 they started a new

shopping festival, i.e. Sabse Saste Teen Din on 24, 25 and 26th of

January. Big bazaar throwed up to 65% of on each & every products in

the store for three days.

� Big Bazaar announced The Great Exchange Offer with a “Bring anything

old and take anything new” concept which started from the 16th of Feb

2008 at the Landmark store.


SALES PROMOTION TECHNIQUES� Price promotion:- Price promotions are also commonly

known as" price discounting". These can be done in two

ways:

� A discount to the normal selling price of a product, or

� More of the product at the normal price.

� Coupons:- Use of coupon promotions is often best for

new products or perhaps to encourage sales of existing

products that are slowing down

� Gift with purchase:- The "gift with purchase" is a very

common promotional technique. In this scheme, the

customer gets something extra along with the normal

good purchased such as perfumes and magazines etc.


CONTINUED..� Competitions and prizes:- This is an important tool to

increase brand awareness amongst the target

consumer. It can be used to boost up sales for

temporary period and ensure usage amongst first time

users.

� Money refunds:- Here, a customer receives a money

refund after submitting a proof of purchase to the

manufacturer

� Frequent users/ loyalty incentives:-Repeat purchases

may be stimulated by frequent user incentives. Perhaps

the best examples of this are the many frequent flyer or

user schemes used by airlines, train companies, car hire

companies etc


CONTINUED…

� Point-of-sale displays:- Shopping habits are changing

for the people living in metropolitan cities. People prefer

big retail outlets like Big Bazaar to local kirana stores.

Most of the decisions of buying are taken by the virtue of

point-of-sale displays in these retail outlets.


LOYALTY PROGRAMSCustomer Loyalty measures are designed for the people

within a company who dictate the strategic direction of

the company. These measures evaluate the

performance of a company’s current customer base and

drive the future direction of a company’s overall

customer strategy. Big bazaar’s loyalty programs are

comprised of:

• Membership card

• Discount

• Shop at home

• Home delivery


THE CUSTOMER EXPERIENCE The customer experience is comprised of the following

components:-

� POPULATING THE CUSTOMER PROFILE:- To create the Ideal

Customer Experience, Big Bazaar populates the Customer Profile

with the relevant information .

� DELIVERING AND RECEIVING VALUE AT EACH CUSTOMER

INTERACTION:- Big Bazaar views each interaction as a golden

opportunity to deliver value through its products, services, and

processes, as well as to receive valuable information from the

customer in the form of feedback

� CUSTOMIZING THE CUSTOMER EXPERIENCE:- By understanding an

individual’s needs, it creates the Ideal Customer Experience by

customizing the products, services, and processes to meet the

needs of the individual customer


RESEARCH OBJECTIVE• To find out in today’s competitive scenario loyalty

programs are successful to attract customer attention or

not.

• To find out the increase in customer loyalty by means of

measuring various factors affecting.

• To find out customer’s reactions to various loyalty

programs and change in their purchase decision due to

these programs.

• To analyze customer’s expectations from retail format

like convenience store in terms of offering of loyalty

programs.


RESEARCH METHODOLOGY• Research problems:- consumer’s reactions and

expectation from loyalty programs of convenience store

format, Big Bazaar

• Research methodology: Exploratory method

• Descriptive research is a type of research conducted

when we have to find out the frequency with which

something occurs. This research is guided by an initial

hypothesis.


HYPOTHESIS AND TESTING Hypothesis testing for this report has evolved around formulating a

null hypothesis and an alternative hypothesis as regards to the

percentage of population availing the loyalty programs

� H(o) Null Hypothesis :- Mostly 70% of the population would be

availing the loyalty programs carried out by Big bazaar.

� H(T) Alternative Hypothesis:- Less than 70% of the population

would be availing the loyalty programs carried out by Big Bazaar

At 5% level of significance we test the above mentioned

hypothesis as per the results obtained.

• The Chi-Square test has been taken up as the selection criteria for

the above mentioned data. The Chi-Square test which shows the

magnitude of discrepancy between observed and expected

frequency can be expressed symbolically as


CONTINUED….

X2= Summation of (O-E)2

E Where,

O= Observed set of frequencies

E= Expected set of frequencies


SAMPLING PLAN :-� Sample Methods - Random Simple Sampling

� Sample size - 51

� Primary data -Questionnaire

-Interview

� Sample:-

� Sample Units:- sampling unit is Noida area.

� Source of data:- through primary sources

� Market survey & area:- Noida sector 16 and18

� Sampling size:- 51


FINDINGS• Big Bazaar has been preferred by most of the

households frequently and they use to purchase daily

requirement material from there. While still 15% of

people don’t prefer to buy daily requirement items from

organized formats.

• The data predicts that customers at nearby locations of

Big Bazaar prefer to go to there often but it is not a

destination for customers every time.

35% go there oftenly

30% go there occasionally

15% go everytime

20% people go there sometimes


CONTINUED….• The ratio of customers using loyalty programs floats

between 60%-62%.Educated people are giving more

attention to the loyalty card due to the awareness of its

future benefits monetarily as well as in getting right

information of the production.

• Most of the customers feel satisfied from the loyalty

program offerings of Big Bazaar so it has been

successful in fulfilling customer’s expectations. While

25% of customers still want to get some more benefits in

return of their loyalty to the store.

• Customers feel 55% motivated to shop from Big Bazaar

due to their loyalty programs.


CONCLUSIONIn our calculations: The calculated value of is more than the table

value. So, the hypothesis is REJECTED i.e. less than 70% of the

population is only availing the loyalty program carried out by Big

Bazaar.

� There are maximum customers who are satisfied with the

merchandising of the store and they find every product of brand in

each category and shelf according to their choices.

� They are having some complains regarding the future cards.

� Customers wait for discount loyalities provided by them but not too

much.

� Customers are not aware of the benefits of the card.

� Many of the customers are not even using any of the loyalty

program.

� Store has been a big flop at online shopping centre as people

want to touch and select their items before purchase..


RECOMMENDATIONS• The materials like shopping bags, catalogues etc. are appealing to

attract the customers but some others materials as new offers ,free

samples of new products should be added this series to attract the

customers.

• They need not to deviate what they are providing as a loyalty

program , i.e. future card.

• Store must work upon its idea of shopping at home facility and also

delivery facilities should be improved.

• Customers want to avail discounts and clubbed offering so, they

must be given more monetary benefit in terms of cost savings.

• Since loyalty programs are motivational factors for the customer so

their expectation from such programs must be achieved.

Loyality Programs in Big Bazar (MR Ppt) by Vikas

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