Consumer Behavior Study at Big Bazaar
Consumer Behavior Study at Big Bazaar
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CU roll no.:171017-21-0319
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Annexure-IA
Supervisor's Certificate
This is to certify that Mr. Arpan Roy a student of [Link]. Honors in Marketing of The
Bhawanipur education Society College under the University of Calcutta has worked under
my supervision and guidance for his Project Work and prepared a Project Report with the
title study of consumer behavior in big bazar which he is submitting, is his genuine and
original work to the best of my knowledge.
Place:
Date:
Signature
Designation: Lecturer
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Annexure-IB
Student's Declaration
I hereby declare that the Project Work with the topic ‘consumer behavior in big bazar’
submitted by me for the partial fulfillment of the degree of [Link]. Honors in Marketing
under the University of Calcutta is my original work and has not been submitted earlier to
any other University /Institution for the fulfillment of the requirement for any course of
study. I also declare that no chapter of this manuscript in whole or in part has been
incorporated in this report from any earlier work done by others or by me. However, extracts
of any literature which has been used for this report has been duly acknowledged providing
details of such literature in the references.
Signature
Place:
Date:
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Acknowledgement
No great Endeavour in any field is possible in solitude. It needs inspiration, guidance and
Help at every step. So, I must preface my report by expressing sincere and deep gratitude to
those who made it possible for me to complete any project work.
First of all, I bow my head in gratitude to God for His blessing. It gives me immense
pleasure my profound sense of gratitude and indebtedness to my Major advisor Prof. Samreen
Alam for her valuable guidance, support and cooperation extended to me during the course of
the study.
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Table of contents
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CHAPTER 1
INTRODUCTION
1.1 BACKGROUND
1.2 LITERATURE REVIEW
1.3 NEED FOR THE STUDY
1.4 RESEARCH METHOHOLOGY
1.5 LIMITATIONS
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Chapter- 1
INTRODUCTION
Big Bazaar is an Indian retail chain of hypermarkets, discount department stores, and grocery
stores. The retail chain was founded by Kishore Biyani under his parent organization Future
Group, which is known for having a significant prominence in Indian retail and fashion
sectors. Big Bazaar is also the parent chain of Food Bazaar, Fashion at Big Bazaar
(abbreviated as fbb) and eZone where at locations it houses all under one roof, while it is
sister chain of retail outlets like Brand Factory, Home Town, Central, eZone, etc. Founded in
2001, Big Bazaar is one of the oldest and largest hypermarket chains of India, housing about
250+ stores in over 120 cities and towns across the country.
Timelines:
2001: Three stores launched within a span of 22 days in Kolkata, Bangalore and Hyderabad
Food Bazaar becomes part of Big Bazaar with the launch of the first store in Mumbai at High
Street Phoenix
2003: Enters Tier II cities with the launch of the store in Nagpur
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2004: Wins its first award and national recognition. Big Bazaar and Food Bazaar awarded
the country’s most admired retailer award in value retailing and food retailing segment at the
India Retail Forum
A day before Diwali, the store at Lower Parel becomes the first to touch Rs 10 million
turnovers on a single day.
2005: Implementation of SAP and pilots a RFID project at its central warehouse in Tarapur.
Launch of a shopping program: the Big Bazaar Exchange Offer, inviting customers to
exchange household junk at Big Bazaar.
Big Bazaar and ICICI Bank launched ICICI Bank-Big Bazaar Gold credit card program to
reward its loyal customers.
2011: Enters the rural wholesale and distribution business through ‘Aadhaar Wholesale 'store
at Kalol, Gujarat.
Big Bazaar has come up a new logo with a new tag line: 'Naye India Ka Bazaar'.
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Literature review
A review of previous studies has supported the researcher to conduct the present study. The
previous study was examined and certain area which requires more attention has been
considered in the present study.
Suggests that understanding consumer behavior has become crucial especially due to fierce
competition in retail industry in the UK and worldwide. This chapter will introduce some
other areas of research background of consumer behavior addressing the works of researchers
and marketers. Moreover, consumer decision making process, in particular, five stages of
consumer decision making process will be discussed in detail.
Suggested that once the relevant information about the product or service is obtained the next
stage involves analyzing the alternatives .Consider this stage as one of the important stages as
the consumer considers all the types and alternatives taking into account the factors such as
size, quality and also price.
Blackwell et al (2006)
Suggested that one of the common models of consumer decision making process has been
offered by Blackwell. According to him, the five stages of consumer decision making process
are followings: problem/need recognition, information search, evaluation of alternatives,
purchase decision made and post-purchase evaluation.
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Suggested that this view is also supported by stating that need recognition occurs due to
several factors and circumstances such as personal, professional and lifestyle which in turn
lead to formation of idea of purchasing
Suggested that in the next stage, consumer searches information related to desired product or
service. Information search process can be internal and external. While internal search refers
to the process where consumers rely on their personal experiences and believes, external
search involves wide search of information which includes addressing the media and
advertising or feedbacks from other people (Rose and Samouel, 2009).
Suggested that the topic of consumer behavior is one of the massively studied topics by the
researchers and marketers in the past and still being studied. Researchers show different
reasons as to why consumer behavior has been the topic of many academics and researchers.
One of the common views is that understanding consumer behavior has become a factor that
has a direct impact on the overall performance of the businesses.
suggested that it is worth noting that consumer buying behavior is studied as a part of the
marketing and its main objective it to learn the way how the individuals, groups or
organizations choose, buy use and dispose the goods and the factors such as their previous
experience, taste, price and branding on which the consumers base their purchasing decisions.
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Need for the study
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Research methodology
Descriptive type research has used to complete the project. This research is based on fact
finding enquires and the variables are totally independent and uncontrollable.
Secondary Data:-
Secondary Data which are used for research to know the history scope of Retail industry are
collected from already available resources like net and other sources.
Tables, Columns chart & Pie chart has used for representation.
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Limitations
1. Since the research had time constraints thus the researcher had to depend on a
secondary data whose reliability may be doubtful.
2. Accuracy of the secondary data is not known.
3. The way things are measured may change over time, making historical comparisons
difficult.
4. As the data is collected through secondary method the information on the topic might
be incomplete.
5. Some information are insufficient.
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CHAPTER 2
2.1 DEFINITION
2.2 NATIONAL SCENARIO
2.3 INTERNATIONAL
SCENARIO
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Chapter 2
Conceptual framework & national and international scenario
Consumer behavior is the study of how individual customers, groups or organizations select,
buy, use, and dispose ideas, goods, and services to satisfy their needs and wants. It refers to
the actions of the consumers in the marketplace and the underlying motives for those actions.
Marketers expect that by understanding what causes the consumers to buy particular goods
and services, they will be able to determine—which products are needed in the marketplace,
which are obsolete, and how best to present the goods to the consumers.
The study of consumer behavior assumes that the consumers are actors in the marketplace.
The perspective of role theory assumes that consumers play various roles in the marketplace.
Starting from the information provider, from the user to the payer and to the disposer,
consumers play these roles in the decision process.
The roles also vary in different consumption situations; for example, a mother plays the role
of an influencer in a child’s purchase process, whereas she plays the role of a disposer for the
products consumed by the family.
The various factors that influence the consumer behavior are as follows:
a. Marketing factors such as product design, price, promotion, packaging, positioning and
distribution.
c. Psychological factors such as buying motives, perception of the product and attitudes
towards the product.
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d. Situational factors such as physical surroundings at the time of purchase, social
surroundings and time factor.
Consumer behavior is not static. It undergoes a change over a period of time depending on
the nature of products. For example, kids prefer colorful and fancy footwear, but as they grow
up as teenagers and young adults, they prefer trendy footwear, and as middle-aged and senior
citizens they prefer more sober footwear. The change in buying behavior may take place due
to several other factors such as increase in income level, education level and marketing
factors.
A positive consumer behavior leads to a purchase decision. A consumer may take the
decision of buying a product on the basis of different buying motives. The purchase decision
leads to higher demand, and the sales of the marketers increase. Therefore, marketers need to
influence consumer behavior to increase their purchases.
The buying behavior of the consumers may lead to higher standard of living. The more a
person buys the goods and services, the higher is the standard of living. But if a person
spends less on goods and services, despite having a good income, they deprive themselves of
higher standard of living.
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National scenario of big bazar
Wednesday Bazaar
The concept of Wednesday Bazaar was promoted as 'Hafte Ka Sabse Sasta Din' (Cheapest
Day of the Week). Initiated in January 2007, the idea behind this scheme was to draw
customers to stores on Wednesdays, the day when consumer presence is usually less.
According to the chain, the aim of the concept was 'to give homemakers the power to save
the most'.
Maha bachat
The concept of 'Maha Bachat' (Mega Saving) was introduced in the year 2006 as a single day
campaign with promotional offers across the company outlets. Over the years, the concept
has grown to become a six-day biannual campaign. During the campaign, offers are given in
all the value formats including Big Bazar, Food Bazaar, Electronic Bazaar, and Furniture
Bazaar
Introduced on 12 February 2009, 'The Great Exchange Offer' allows customers to exchange
their old goods for Big Bazaar coupons. The coupons can be redeemed later for buying brand
new goods from Big Bazaar outlets across the nation.
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International scenario of big bazar
Till now big bazar have its outlets within Indian boundaries . So there are no
international approaches.
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CHAPTER 3
PRESENTATION OF DATA
ANALYSIS AND FINDINGS
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Chapter 3
Company profile
At Big Bazaar we have always tried understanding our customer’s better keeping in mind
their love for better bargains and getting maximum value out of each rupee they spend. This
has always pushed us to think innovatively and striving to continuously giving our customers
additional reasons to shop.
Times are tough and we understand that this is the time when we need to stand by our
customers. Hence, to share the burden of running our customer’s household the idea of Big
Bazaar PROFIT CLUB was born. Big Bazaar PROFIT CLUB is the most innovative product
that the Indian Retail Market has ever witnessed. It offers an unmatched value proposition to
its customers. A unique membership program where one can pay Rs. 10,000 and can shop for
Rs. 1000 per month for the next 12 months i.e. Rs. 12,000 over a period of 12 months. After
the huge success of ‘Profit Club Rs 10000’, Big Bazaar launches its new program “Profit
Club Rs 5000 card”. On paying Rs 5000, customers will get a membership card topped up
with Rs 6000, with which they can shop for Rs 400 every month for 15 months This card can
be used across 240 + Big Bazaars, Food Bazaars and fbb- Fashion at Big Bazaar stores across
the country. In case you miss shopping in a particular month, the amount can be carried
forward to the next month. Members of the Big Bazaar PROFIT CLUB will also receive the
benefit of existing offers on their Payback cards and T24 mobile services .The Big Bazaar
PROFIT CLUB Card can be used as a Gift Card for your friends and family, like children
living away from home or parents residing in other cities etc. The Big Bazaar PROFIT CLUB
Card can also serves as an excellent Employee Incentive program for your employees. It can
also be extended to your business partners as a gift.
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Swot analysis
Strengths:
Distribution and Reach: Big Bazaar has a large number of outlets in almost every
state, supported by a strong distribution network that makes sure that its products are
available easily to a large number of customers in a timely manner.
Cost Structure: Big Bazaar’s low cost structure helps it produce at a low cost and
sell its products at a low price, making it affordable for its customers.
Dealer Community: Big Bazaar has a strong relationship with its dealers that not
only provide them with supplies but also focus on promoting the company's products
and training.
Financial Position: Big Bazaar has a strong financial position with consecutive
profits in the past 5 years, along with accumulated profit reserves that can be used to
finance future capital expenditures.
Big Bazaar has a large asset base, which provides it with better solvency.
Return on Capital Expenditure: Big Bazaar has been successfully able to generate
positive returns on the capital expenditure it has incurred on various projects in the
past.
Automation: of various stages of production has allowed the more efficient use of
resources and reducing costs. It also allows for consistency in quality of its products
and provides the ability to scale up and scale down production as per the demand in
the market.
Skilled Labor force: Big Bazaar has invested extensively in the training of its
employees that has resulted in it employing a large number of skilled and motivated
employees.
Big Bazaar has a diversified workforce, with people of many geographical, racial,
cultural and educational backgrounds that help the company by bringing in diverse
ideas and methodologies of doing things.
Big Bazaar has qualified and accredited professionals working under in its team.
Entering new markets: Big Bazaar’s innovative teams have allowed it to come up
with new products and enter new markets. It has been successful in past, in most of
the initiatives it has taken in new markets.
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Weakness:
Research and Development: Even though Big Bazaar is spending more than the
average research and development expenditure within the industry, it is spending way
less than a few players within the industry that have had a significant advantage as a
result of their innovative products.
High Day Sales Inventory: The time it takes for products to be purchased and sold
are higher than the industry average, meaning that Big Bazaar builds up on inventory
adding unnecessary costs to the business.
Rented Property: A significant proportion of the property that Big Bazaar owns is
rented rather than purchased. It has to pay large amounts of rent on these adding to its
costs.
Low current ratio: The current ratio that shows the company’s ability to meet its
short term financial obligations, is lower than the industry average. This could mean
that the company could have liquidity problems in the future.
The company has low levels of current assets compared to current liabilities, and this
can create liquidity problems for it in operations.
Cash flow problems: There is a lack of proper financial planning at Big Bazaar
regarding cash flows, leading to certain circumstances where there isn’t enough cash
flow as required leading to unnecessary unplanned borrowing.
Integration: Big Bazaar's current structure and culture have resulted in the failure of
various mergers aimed at vertical integration.
Diversification in the workforce: The workforce at Big Bazaar is concentrated with
mostly local workers, and low amounts of workers from other racial backgrounds.
Lack of diversification makes it difficult for employees from different racial
background to adjust at the workplace, leading to loss of talent.
Market Research: Big Bazaar has not conducted market research within the market
that is serves since the past 2 years. As a result, it is making decisions based on 2
years old data, while customer needs may have evolved over time.
High employee turnover rates: Big Bazaar has a higher employee turnover rate
compared to competitors. This means that it has more people leaving the job, and as a
result, it is spending more on training and development as employees keep leaving
and joining.
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Opportunities:
Internet: there has been an increase in the number of internet users all over the
world. This means that there is an opportunity for Big Bazaar to expand their
presence online; by using the internet to interact with its customers.
E-commerce: There has been a new trend and a growth in sales of the e-commerce
industry. This means that a lot of people are now making purchases online. Big
Bazaar can earn revenue by opening online stores and making sales through these.
Social Media: there has been an increase in the number of social media users
worldwide. The three social media platforms; Facebook, Twitter and Instagram, have
shown the greatest number of increase in monthly active users. Big Bazaar can use
social media to promote its products, interact with customers and collect feedback
from them.
Technological developments: technology comes with numerous benefits among
many departments. Operations can be automated to reduce costs. Technology enables
better data to be collected on customers and improves on marketing efforts.
Population: the population has been growing and is expected to grow at a positive
rate for the upcoming years. This is beneficial for Big Bazaar as there will be an
increase in the number of potential customers that it can target.
Inflation: The inflation rate has been low and is expected to remain low in the next
two years. This is an opportunity for Big Bazaar as its cost of inputs would remain
low for the next two years.
Interest rate: Lower interest rates than compared to previous years provides an
opportunity for Big Bazaar to undergo expansion projects that are financed with loans
at a cheaper interest rate..
Transport Industry: the transport industry has been flourishing in the past few years,
and shows growth potential in the future. This has reduced the costs of transportation,
which is beneficial for Big Bazaar as it will lower its overall costs.
Tax policy: the governments’ reduction in tax rate is beneficial for Big Bazaar as a
lower amount would be expensed out as a tax.
Globalization: Increased globalization does not restrict Big Bazaar to its own
country. It can extend its operations to other countries, entering into these markets and
making use of the opportunities that lie in these markets.
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Threat analysis:
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Analysis and interpretation
3%
5%
20%
Daily
Week
Fortnightly
Once In a month
73%
INTERPRETATION:
It is interpreted that about 72% of the customers shops on daily basis, 20% weekly, 5%
fortnightly and 3% once in a month in Reliance Fresh which is good for a retail store to
have such number for daily and weekly customers.
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2) What do you mostly shop for at mentioned store?
14%
vegetables
grocery
cosmetic products
kitchenware
83%
INTERPRETATION:
It is interpreted that about 83% of customers mostly shop for Vegetables and fruits,
14% for Grocery, 2% for Cosmetic products and 1% for Kitchenware.
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3) Preference of shopping
8%
18%
quality
brand
3% price
one stop shop
73%
INTERPRETATION:
It is interpreted that around 73% of customers shops due to One stop shop feature of
the Reliance fresh store while 17% for Brand,7% for Quality and 3% for Price.
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4) When do you prefer to visit most at big bazar store?
13%
during sale
when required
87%
INTERPRETATION:
It is interpreted that around 87% of customers prefer to shop when required by them
and 13% of them prefer during sale.
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5) Do advertisement and promotion influence your shopping decision?
5%
yes
no
95%
INTERPRETATION:
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6) Which form of advertisement do you think is most effective?
8%
12%
print
tv
radio
internet
21% 60%
INTERPRETATION:
It is interpreted that around 59% of respondents thinks Print media, 21% T.V., 12%
Radio and 8% Internet as most effective form of advertisement.
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7) Are Promotional schemes easy to understand?
always
sometimes
confusing
never
94%
INTERPRETATION:
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8) Rate the Store Layout of Big bazar?
1%
12%
20%
excellent
good
fair
poor
68%
INTERPRETATION:
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9) Does the Price Marked clearly on the Shelves?
yes
no
98%
INTERPRETATION:
It is interpreted that around 97% of the respondents mentioned that the Price tags or
marks are properly displayed while 3% said no
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10) Does the desired Products are available and the shelves are full with stock?
5% 3%
always
mostly
sometimes
never
92%
INTERPRETATION:
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11) Does the Trolleys and Baskets are clean?
4%
yes
no
97%
INTERPRETATION:
It is interpreted that 96% of customers said that the trolleys and basket are clean and
only 4%said that they are not clean.
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12) How is the store space in Big Bazar for moving around for products?
89%
INTERPRETATION:
It is interpreted that around 88% respondents believes the store space to be a free
space, only 6% believes to be a small space, 4% consider it as Small space while 2%
thinks its Congested.
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FINDINGS OF THE STUDY
1. About 72% of the customers’ shops on daily basis in big bazaar which is good for
retail store to have such number for daily and weekly customers.
2. About 83% of customers mostly shop for Vegetables and fruits for their quality,
freshness, variety and availability.
3. Around 73% of customers shops due to One stop shop feature of the Big bazar store
4. It is interpreted that around 87% of customers prefer to shop when required by them
and13% of them prefer during sale.
5. Around 95% of the shopping decisions are influenced by advertisement and
promotion activities. Therefore, more advertisement and promotional efforts should
be done on continuous basis.
6. It is interpreted that 94% of customers believes the promotional schemes to be
understanding which indicates about the ideal advertisement effectiveness.
7. It is interpreted that around 67% of respondents rates the store layout as good while
20%rates it as excellent which shows the layout is appealing to the customers.
8. Around 92% of respondents ensure that there is mostly availability of the stock in
Reliance fresh.
9. It is interpreted that around 88% respondents believes the store space to be a free
space and only 6% believes to be a small space.
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CHAPTER 4
CONCLUSION
RECOMMENDATION &
BIBLIOGRAPHY
4.1 CONCLUSION
4.2 RECOMMENDATION
4.3 BIBLIOGRAPHY
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Chapter 4
Conclusion
The study has basically helped to know the Customer behavior towards BIG BAZAR
Hand what influence people to shop at BIG BAZAR. Most of the consumers are
influenced by the offers and price discounts. The majority of consumers’ perception is
almost all the products are available at one roof with one stop shopping experience.
Customers shop more in the Food section.
BIG BAZAR is a major shopping complex for today’s customers as customers find
variety of products at a reasonable price. The majority of customers belong to middle
class family. Volume sales always take place in BIG BAZAR. Impulse buying
behavior of customers comes into play most of the times in Grocery section in BIG
BAZAR .It holds a large customer base and it seemed from the study that the
customers are quite satisfied with BIG BAZAR. It seems that there is a vast growth of
BIG BAZAR lying as customers demand is increasing for big bazaar.
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Recommendation
1. More promotion scheme should be used to penetrate the market.
2. Skilled employees should be higher because mostly customers are educated
3. Promotion scheme should in such way that customer can understand easily.
4. Service of store should be providing in such way which fulfill the need of the
customer.
5. The store staff should be trained adequately so as to convince the potential
buyers.
6. The company has to concentrate more on the customers of age group 25-35 years
to enhance the sales.
7. Big bazaar should provide more offers and discounts to attract new customers.
8. The company should go with TV-ads and newspaper in order to reach customers.
9. The displays are needed to be changed daily and a bit during weekends as heavy
crowd comes in to big bazaar during those days.
10. Cash counter and credit card payment counter should be placed differently in
order to reduce the rush and save the customer’s time.
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Bibliography
Websites:
[Link]
[Link]
[Link]
Journals:
Kotler and Keller, (2005), Marketing Management Twelfth edition, New Jersey: Pearson
Prentice Hall
Blackwell, R., Miniard, P. and Engel, J. (2006) “Consumer behavior”, Mason: Thompson
Neal, C., Questel, P. and Pettigrew, S. (2006) “Consumer Behavior: Implications for
Marketing Strategy” (5Th edition) Berkshire: McGraw-Hill.
Schiffman, L., Hansen H. and Kanuk L. (2007) “Consumer Behavior: A European Outlook”,
London: Pearson Education.
Kotler and Keller, (2012), Marketing Management Fourteenth edition, New Jersey: Pearson
Prentice Hall.
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