Efeectiveness of Loyalty Programs in Big Bazaar

2011 MARKETING OF SERVICES TERM PAPER PRADEEP KUMAR. N(M100002MS) EFFECTIVENESS OF LOYALTY PROGRAMS IN BIG funfair Contents page no 1. Ab reveal the company 03 2. pregnant features of bad carnival 04 3.Promotion techniques 04 4. Sales Promotion techniques 05 5. Loyalty programs 06 6. node experience 08 7. seek objective 09 8. look for methodology 09 9. Hypothesis and examination 10 10. Sampling plan 10 11. Fin blastgs 11 12.Conclusion 12 ABOUT THE COMPANY heavy(a) funfair is a chain of hypermarket in India. Currently, at that place be 210 workshops across 80 cities and towns in India. salient carnival is designed as an agglomeration of bazaars or Indian markets with clusters tenderiseing a full range of harvest-homeion including fashion and apparels, fare products, general merchandise, piece of furniture, electronics, books, fast food and leisure and entertainment sections. deep carnival is part of Future Group, which to a fault owns the Central Hyper market, and is owned done with(predicate) a wholly owned auxiliary of Pantaloon Retail India Limited that is listed on Indian stock transfigures. Pantaloon Retail (India) Limited, is Indias leading retailer that operates multiple retail formats in both the appraise and modus vivendi segment of the Indian consumer market. Headquartered in Mumbai (Bombay), the company operates over 10 million square feet of retail space, has over 1000 stores across 61 cities in India and employs over 30,000 people.The companys leading formats include Pantaloons, a chain of fashion push throughlets, grand bazaar, a uniquely Indian hypermarket chain, nutrition funfair, a supermarket chain, blends the look, touch and feel of Indian bazaars with aspects of modern retail same choice, convenience and quality and Central, a chain of seamless destination malls. close to of its other formats include, Depot,Shoe Factory, Brand Factory, Blue Sky, Fashion Station, aLL, Top 10, mBazaar and Star and Sit ara. The company alike operates an online portal, futurebazaar. com.A subsidiary company, Home Solutions Retail (India) Limited, operates Home Town, a large-format home solutions store, Collection i, selling home furniture products and E-Zone focused on give to the consumer electronics segment. Pantaloon Retail was recently awarded the International Retailer of the Year by the US based National Retail Federation (NRF) and the Emerging grocery store Retailer of the Year 2007 at the World Retail Congress held in Barcelona. Pantaloon Retail is the flagship company of Future Group, a business multitude catering to the entire Indian consumption space.Pantaloon is non just an organization it is an institution, a centre of learning & development. Over the years, the company has accelerated growth through its ability to lead change. A number of its pioneering concepts curb now emerged as industry standards. For instance, the company integrated backwards into garment manufacturing eve n as it expanded its retail presence at the front end, well sooner any other Indian retail company attempted this. It was the setoff to introduce the concept of the retail departmental store for the entire family throughPantaloons in 1997. The company was the first to launch a hypermarket in India with Big Bazaar, a large discount store that it commissioned in Kolkata in October 2001. And the company introduced the country to the Food Bazaar, a unique bazaar within a hypermarket, which was launched in July 2002 in Mumbai. Embracing our leadership prize, the company launched aLL in July 2005 in Mumbai, making us the first retailer in India to pioneer a fashion store for plus size of it men and women. contact FEATURES OF BIG BAZAAR * Food bazaar. Electronic bazaar. * Furniture bazaar. * FutureBazaar. com * Amusement zone. * Telecalling work PROMOTION TECHNIQUES * Big Bazaar Isse sasta aur accha kahin nahi - Big Bazaar has adopted place pricing in which they win loyal customer s by charging a reasonably low price for a high quality offering. * Wednes daylight Bazaar Hafte ka sabse sasta din - In January 2007, Big Bazaar introduced a Wednesday Bazaar concept called Hafte Ka Sabse Sasta thunder with the aim to give homemakers the power to yet the most on this day of the week. Sabse Saste teenage Din (Big days) - In 2006 they started a immature obtain festival, i. e. Sabse Saste Teen Din on 24, 25 and 26th of January. Big bazaar throwed up to 65% of on from each one & every products in the store for one-third days. * Big Bazaar announced The Great Exchange Offer with a Bring anything former(a) and take anything impertinently concept which started from the 16th of Feb 2008 at the Landmark store. SALES PROMOTION TECHNIQUESThe conglomerate promotional schemes undertaken by loose bazaar are as follows * The punch line of Big Bazaar says IS SE SASTA AUR ACCHA KAHI NAHI. This line gives the feeling that Big Bazaar gives merchandise which is cheapest in the market or in other words the value for property which a customer will be getting here will be much than than anywhere else. * Wednesday is the cheapest day. This is done to divert some of the adopting coming on weekends to a relatively free day.Big bazaar advertises Wednesdays as the cheapest day in all the leading dailies across the capital. This offer targets housewives and encourages them to leverage groceries and vege tabularizes because no one purchases vegetables on a weekly basis, they purchase it at least two times a week. * Big Bazaar has announced a unique exchange offer Bring anything old and take anything new. Under the exchange offer, old garments, utensils, furniture, plastic ware, newspapers or just about anything will be weighed and valued and customers will be given exchange coupons.There is also a direct exchange on mobile and electronic goods during the period with lineive discounts on new purchases. * Big Bazaars The Great Exchange Offer has mobilize d to a greater extent than two lakh families to actually carry the junk of the house and offload it at the nearest Big Bazaar. Retail analysts say that generally February and defect are dull months for consumer buying in the country and therefore this figure of a promotion campaign is trained to boost sales during the period. PANTALOON groups hypermarkett chain, Big Bazaar, celebrated Republic Day as the Maha savings Day, when shoppers at Big Bazaar and Food Bazaar outlets across the country, were offered merchandise at rock bottom prices. * The Maha Savings Day saw shoppers got deals they have never seen or heard before. The offers spread across categories from electronics to utensils, from apparel to furniture and also food. For example pressure cooker for Rs 299, two Ruf n Tuf Jeans for Rs 499, and a Motorola C115 for Rs 1,399. Big Bazaar usually runs a full page advertisement on Saturdays and Sundays in all the leading dailies communicating various offers. This is done to at tract crowds on weekends because most of the people usually shop during weekends. * Pantaloons retail India exceptional provides Green greenback, this Green Card is passport to a whole new world of exclusive benefits and privileges. These includes * Instant discounts for every time you shop at Pantaloons. * Exclusive shopping days to get hold of latest merchandise. regular(a) updates on collections and promos via catalogues, sms and email. * Special invites to the most happening events. * Extended exchange periods and free drops for alterations. * Exclusive aviatoring counters and much more. * Big bazaar in railroad tie with ICICI banks has launched the true card game for the customers. They are * ICICI brink Big Bazaar flatware Credit Card It gives you the benefits of regular cards and supererogatory features to make your shopping non only enjoyable hardly also a fashion to save more with Big Bazaar. ICICI desire Big Bazaar princely Credit Card The card brings to yo u more reasons to save and earn rewards on its usage. It gives you all the benefits of regular cards and additional features to make your shopping not only enjoyable but also a way to save more with Big Bazaar. * Shakti Card Shakti is a credit card for housewives. You need not submit income proof. Simply make your Big Bazaar bill of more than Rs. 500 and a lifestyle proof like fraternity membership card, health club card etc.And get your Shakti. You undersurface use Shakti at all the Big Bazaar and Food Bazaar outlets * T24 In June 2010, Future Group in partnership with TTSL rolled out a mobile service called T24 for its customers. As part of the offer, customers were rewarded with free colloquy time for every purchase to a higher place Rs. 500 made at Future Group shopping outlets across all formats and locations. LOYALTY PROGRAMS * Big bazaar in association with ICICI banks has launched committal cards for the customers.They are * ICICI Bank Big Bazaar Silver Credit Card I t gives you the benefits of regular cards and additional features to make your shopping not only enjoyable but also a way to save more with Big Bazaar. * ICICI Bank Big Bazaar Gold Credit Card The card brings to you more reasons to save and earn rewards on its usage. It gives you all the benefits of regular cards and additional features to make your shopping not only enjoyable but also a way to save more with Big Bazaar. * Shakti Card Shakti is a credit card for housewives.You need not submit income proof. Simply show your Big Bazaar bill of more than Rs. 500 and a lifestyle proof like club membership card, health club card etc. And get your Shakti. You can use Shakti at all the Big Bazaar and Food Bazaar outlets * T24 In June 2010, Future Group in partnership with TTSL rolled out a mobile service called T24 for its customers. As part of the offer, customers were rewarded with free talk time for every purchase above Rs. 500 made at Future Group shopping outlets across all formats an d locations.CUSTOMERS EXPERIENCE The customer experience among the big bazaar customers 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 instruction . the customers who are having very analogous buying patterns in the big bazaar are populated and an analytic thinking is done so as to find the optences of the products of these groups, including various promotion strategies and offers.DELIVERING AND RECEIVING hold dear AT EACH CUSTOMER INTERACTION Big Bazaar views each interaction as a golden opportwholey 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 judgement an individuals needs, it creates the Ideal Customer Experience by Customizing the products, services, and processes to meet the Needs of the individual custom erRESEARCH OBJECTIVE * The objective of the seek is to find the effectiveness of devotion programs in BIG BAZAAR ,i. e whether loyalty programs attract customer attention or not in todays competetive scenario . * To find out the increase in customer loyalty by measuring various factors. * To find out customers reactions to various loyalty programs and change in their purchase decision ascribable to these programs. To go customers expectations from retail format like convenience store in terms of offering of loyalty programs. RESEARCH METHODOLOGY Research problems- consumers reactions and expectation from loyalty programs of convenience store format, Big Bazaar. Research methodology Exploratory method Descriptive research is a font of research conducted when we have to find out the frequency with which Something occurs. This research is maneuver by initial hypothesis. HYPOTHESIS AND TESTINGHypothesis testing for this melodic theme has evolved around formulating a null hypoth esis 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) substitute Hypothesis- Less than 70% of the population Would be availing the loyalty programs carried out by Big Bazaar. At 5% level of significance I tested 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 among observed and expected frequency can be expressed symbolically as X2= Summation of (O-E)2 E Where, O= Observed set of frequencies E= Expected set of frequencies SAMPLING PLAN I selected a taste size of 51 ,I gave a questionnaire and interviewed the samples in the OLD MADRAS BIG BAZAAR in BANGALOREQuestionnaire Sample Methods Random Simple Sampling Sample size 51 Primary data Questionn aire Interview Sample Units sampling unit is Noida field of operation. Source of data through primary sources Market survey & area Sampling size 51 FINDINGS * Big Bazaar has been preferred by most of the Households frequently and they use to purchase daily Requirement secular from there. While liquid 15% of People dont 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 * 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 successfu l in fulfilling customers expectations. While 25% of customers still requisite 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. Conclusion In my 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 uttermost 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 loyalties 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 pur chase