CB Project- Food Bazaar
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Transcript of CB Project- Food Bazaar
INVESTIGATING SHOPPERS’ BEHAVIOUR@
FOOD BAZAAR-SHIPRA MALL
submitt Submitted By:
Deepesh Belwal
Rohit KapoorSuruchi GoyalUmang Dubey
Food bazaar is an establishment of the Future group operating as a standalone value chain
retail outlet established in 2004 at Shipra mall, is the oldest retail chain of the conglomerate.
The standalone had a target of 1.37 crore for the 6 days offer and is estimated to earn around
50 crore annually for the group.
STRUCTURE OF THE RETAIL CHAIN
Store manager
HRDepartment
manager
Food itemsGeneral
merchandiseWarehouse
Non food items(Personal and home care)
CashingCustomer
Service desk
Marketing division
Finance and accounting
Facilities and Administration
C O N S U M E R A LWAY S L O O K F O R E X T R A B E N E F I T S ( P E R C E I V E D O R A C T U A L ) F O R
T H E P U R C H A S E T H E Y M A K E A N D T H I S C O N C E P T I S U T I L I Z E D B Y T H E F O O D
B A Z A A R VA L U E C H A I N R E T A I L F O R M A T T O A C H I E V E H I G H E R S A L E S .
Food Bazaar – Customer base
One time Purchaser(Devil
Customer)
•Looking for extra benefit: usually seen during sale.
•Wants value for every rupee invested : Points out nitty-gritty issues
•Difficult to satisfy with the offers
•Doesn’t require personal assistance
Repeat purchase
•Occasionally shops and interested more in the offers and discount
•Shops less argues more :Voices dissatisfaction openly but still comes back for more offers.
•Difficult to handle but can be converted into loyal customers.
•Time Consuming
Loyal Customer
•Neighborhood residents –Aware of the schemes and regularly visit the place
•Looks out for extra benefit like loyalty cards, total purchase discount ,points out dissatisfaction in a systematic manner.
•Happy to Shop usually comes back for more offers and discount but want extra benefits for loyalty.
•Offer suggestions for improvement and correction..
•Resistant to change.
TYPE OF FOOTFALL AT FOOD BAZAAR
C o n s u m e r i s t h e m o s t i m p o r t a n t p a r t o f a n y b u s i n e s s m o d e l a n d s p e c i a l l y a r e t a i l c h a i n ( v a l u e f o r m a t b a s e d ) w h i c h i s d e p e n d e n t o n t h e t o p l i n e ( t o t a l s a l e s ) s i n c e i t h a s a r e v e n u e b a s e d t a r g e t . T h u s , t h e h e a v y i n f l u x o f c o n s u m e r h e l p s t h e c o m p a n y a c h i e v e i t s t a r g e t w h i c h m a k e s i t n e c e s s a r y f o r t h e c o m p a n y t o u n d e r s t a n d t h e c o n s u m e r e x p e c t a t i o n , a r e a s o f d i s s a t i s f a c t i o n a n d e x p e r i e n c e i n o r d e r t o a t t r a c t t h e m t i m e a n d a g a i n .
Consumer Behavior @ Foodbazzar
SWOT Analysis of VALUE retail In purview of Customer Behavior
Play on your Strength
•Provides perceived value to price sensitive
customer.
•One Stop solution for home needs(Time Value)
•Standardized product
Tap the Opportunity
•Increased in working class(high disposable
income)
•Paucity of time(work schedule) leading to one
service provider
•Increase In lifestyle and shift of shopping
location (Neighborhood to malls)
Neutralize the Weakness
•Negative connotation of positioning
strategy(Inexpensive perceived as cheap)
•Maintenance of low customer turnover is difficult
(Extraneous variable)
Mitigate the Threat
•Low switching cost
•Heavy inflow of similar format store(inverse
competition)
•Supply and demand constraints due to PESTEL.
To s t u d y t h e c a u s e a n d e f f e c t o f a n y s i t u a t i o n , i t i s n e c e s s a r y t o c o n d u c t a n e x c l u s i v e r e s e a r c h t o u n d e r s t a n d t h e u n d e r l y i n g i s s u e s .
To c o n d u c t a r e a l i s t i c r e s e a r c h , s a m p l i n g i s p e r f o r m e d w h i c h i s t h e r e p r e s e n t a t i v e d a t a o f t h e p o p u l a t i o n u n d e r s t u d y.
I n o u r r e s e a r c h , w e h a v e t a k e n t h e c u s t o m e r v i s i t i n g t h e s t o r e a s o u r r e s e a r c h s a m p l e s i n c e t h e y w o u l d p r o v i d e t h e t r u e s t o r e e x p e r i e n c e a n d r e a l i s t i c p i c t u r e t h r o u g h t h e i r f e e d b a c k .
R e s e a r c h t y p e : d e s c r i p t i v e r e s e a r c h ( t o u n d e r s t a n d c o n s u m e r e x p e r i e n c e )
To t a l s a m p l i n g u n i t : 1 5 4
R e s e a r c h m e t h o d o l o g y : q u e s t i o n n a i r e ( f e e d b a c k f o r m " s h a r e w i t h u s ” )
S c a l e : g r a p h i c a l s c a l e
Research Methodology
58%27%
7%6% 2%
Demography of sample
AGE(18-30) AGE(31-40) AGE(41-50)
AGE(51-60) AGE(61-70)
Profile of Sample
Female45%
Male55%
Profiling of sample
SOP: Customer Analysis
As already seen the importance of customer in a retail chain, it is important to operate in a customer centric environment.
Since, a retail market suffers from
a high churn rate which needs to be minimized since
it is difficult to create a customer.
So in order to serve the customer better the feedback wastaken
so that the customer can be attracted to the
store to continually contribute as loyal customer
Customer Oriented Strategy
Identify a customer
Create a Customer
Retain a customer
Customer creation ISSUE
80-20rule(80% revenue from 20% old
customer)
Rise In acquisition Cost(5 times)
The Customer Expectation pyramid
According to the paper by Chu and Pike on Customer strategy in retail chain(2002 the most
important aspect for a retail chain customer was in-store experience and staff assistance
whereas marketing and communication(promotion) had little impact on the customer
satisfaction so accordingly we designed our feedback form to incorporate the values customer
feel most importantly:
Customer Overall experience
In store Experience
• Music
• Lighting
• Temperature
• Cleanliness
Facilities management
• Ease of moving Around
• Ease of finding a trolley
• Checkout Counter
Staff Support
• Courteousness
• Knowledge and efficiency
Presentation
• Cashier Interaction
• Cashier speed
Product
• Range
• Prices
• Quality
• Availability
Communication and marketing
• Ease of finding a product
In-Store Experience The organized retail format has changed the way people shop today. Not only has it provided
the ease of access and availability of product and service , the concentration is on the customer In store experience which cannot be provided in an unorganized retail via Delightful Music, Lively display and Lighting, Sanitation and hygiene and Ambience.
Analysis: The results show that around 73% of the respondents are highly satisfied with the overall store experience and consider lighting of the store (Visibility)to be relatively better to other parameter. The overall customer respomses shows high level of satisfaction among all the attribute measured.
0
20
40
60
80
100
120
140
160
180
music temperature lighting cleanliness
bad
ok
good
73%
13%
14%
0%
Overall In Store Experience
Highly satisfied Satisfied
Dissatisfied Highly dissatisfied
In a customer oriented business, the personal interaction between the seller and customer plays an important role in the purchase decision thus several attribute of the staff involved in the process is considered to influence the customer. In food bazaar, the customer mainly interacts with staffs at three departments:
Department Function
Product Purchase department Product Knowledge and SP personality
Cashing counter Billing time and interaction
Checkout counter(CSD and security) Query handling and delivery
020406080
100120140160180
good
bad
Ok
We can conclude that the
customers are mostly satisfied with
the support staff and ranked the
services good with little scope of
improvement required in the area
of staff courteousness and product
knowledge area and also certain
training should be provided to the
selling staffs in order to improve
them over the cashier rating.
Staff Support
S t o r e m a n a g e m e n t i s a v e r y i m p o r t a n t s o t h a t t h e o v e r a l l p r o c e s s c a n t a k e p l a c e s m o o t h l y p r o v i d i n g a g o o d e x p e r i e n c e t o t h e c u s t o m e r . A s p a r t o f t h e i n – s t o r e m a r k e t i n g v a r i o u s d i s p l a y s , s i g n a g e ( d e p a r t m e n t l o c a t i o n ) a n d p r o d u c t d i s p l a y a r e p u t u p w h i c h h e l p t h e e a s y n a v i g a t i o n t o t h e c u s t o m e r . A g a i n , f a c i l i t e s l i k e t r o l l e y a s a t h e s h o p p i n g c a r t w h i c h i s f a c i l i t a t e d b y s p a c i o u s m o v i n g a r e a a r o u n d t h e f l o o r i s p r o v i d e d .
“ M i s u t i l i s a t i o n o f s p a c e i s a c r i m e i n a r e t a i l s t o r e ” s o p r o p e r u s a g e o f t h e s p a c e i s e s s e n t i a l t o p r o v i d e b e n e f i t t o t h e o u t l e t a s w e l l a s c u s t o m e r .
S o , t h e f e e d b a c k p r o v i d e d w o u l d h e l p u s f i n d s o l u t i o n t o o p t i m a l l y u t i l i z e t h e f l o o r s p a c e a n d p r o v i d e m o r e c o n v e n i e n c e f o r b r o w s i n g t h e s t o r e f o r a s a t i s f a c t o r y s h o p p i n g e x p e r i e n c e
Marketing and Facilities management
As it can be seen majority of
respondents are happy about
the product display and floor
movement area also the
facility of trolley is also very
efficient .Only some issues
in navigation for some
customer has been observed
which maybe due to peak
hour shopping.0
20
40
60
80
100
120
Ease of moving aroundin the store - Navigation
Ease of finding aproduct - Product
Displays
Ease of finding atrolley/basket
ok
bad
good
The Product The most important factor which attracts the customer is the product portfolio provided
by the store. The customer are attracted to a store because of the one stop shopping solution which Food bazaar provides through its various food and non food categories.
In spite of the easy accessibility it is very essential to provide an uncompromising product with the following feature:
Large Portfolio
Quality and Standard maintained
Availability of the Product in the catalogue
Value for money
0
20
40
60
80
100
120
140
Range Prices Quality Availability
PERCEIVED PRODUCT VALUE
ok
bad
good
As seen the customer are
satisfied by the overall feature
and benefit provided by the
product but certain
inefficiency has been
observed on the following
points:
•Quality of product not
maintained
•Prices perceived to be
inflated
•Low replacement rate
causing unavailability of Fast
Moving product.
Customer Reasons of Deflection
As already mentioned the switching cost of customer in a retail outlet is very less and it is important to minimize the instances which can possibly lead to deflection of customer. It is unavoidable that certain situations arise where the customers are likely to be irritated but it is important to mitigate those inefficiencies and develop a flawless system of operation.
As observed in food bazaar a lot of customer query and cases of issuance of credit note and cash refund(special cases) has been confronted which needs to be handled at the points it arises so that the customers are prompted to come back later happily.
19%
19%
4%8%
18%
14%
18%
Department wise classification of issue
chefzone chill station farm fresh GM
home care personal care staples
10% 6%
2%
12%
1%69%
Customer Issue
barcode issue Billing error
damage and defective discount not given
dislike customer change of mind
As we can see that the consumers mostly return the product because of their own
choice or change of mind which contributes to around 69% of the return.
Again, some 12% cases are of the barcode issues and 10% are the mismatch of discount
offers(Updation in the POS) so it is necessary to take care of the issues at the end of the
outlet so that there is certain reduction in the refund cases which contributes to heavy
loss of sale.
As ,we can see that in a period of a month, the outlet has issued a refund worth Rs
30,000 of which around 30% is internally caused from errors like billing ,discount
mismatch etc which can be completely eliminated and sale can be escalated.
Type of refund Amount(Rs)
Cash refund 4872
Credit refund 24910
Handling the Customer It is very important to be very patient and listen to the problems of the customer to avoid negative
network (BIG Bazaar news) publicity
Store manager
Department
manager
Quality defect
Offer Mismatch(Barco
de Issue)
Customer
Service Desk
Bill Error
Customer
change of Mind
Share with
us(Feedback)
IdentificationThe dept manager or LT would be called to know the problem(faulty display, barcode
mismatch ,wrong communication of offers by staff or SP)
RectificationThe problem would be tackled by issuance of CN or CR as per the demand and type of customer and
the concerned authority be held liable for the credit inwards(register maintained and signed)
Communicati
onInformation through a CSD report to the store manager (Customized SAP Software for reporting)
M a j o r i t y c o n s u m e r s c h o s e s c h e m e o v e r b r a n d e x c e p t i o n b e i n g h e a l t h c o n s c i o u s c o n s u m e r s
B r a n d l o y a l c u s t o m e r s r e m a i n e d s t i c k y i r r e s p e c t i v e o f s c h e m e s
M a n y c o n s u m e r s a r e u n a w a r e a b o u t t h e d i f f e r e n c e b e t w e e n b r a n d s
Te n d e n c y t o a s k r e p e t i t i v e l y f o r t h e o f f e r s
Va l u e p e r c e i v e d i s u s u a l l y l o w d e s p i t e d i s c o u n t s a n d o f f e r s
R e g u l a r c u s t o m e r s p r e f e r l o y a l t y c a r d s a n d e x t r a b e n e f i t .
A p p r e h e n s i o n t o w a r d s a n y c h a n g e l i k e c h a rg e a b l e p o l y b a g s w e r e h i g h l y c r i t i c i z e d
P r e f e r e n c e o f h o m e d e l i v e r y ( m a n y e n q u i r y r e g a r d i n g t h e s a m e )
O n e t i m e b u y e r s m o r e s k e p t i c a l a n d u s u a l l y f u s s e s a b o u t t h e p r o d u c t q u a l i t y.
A h i g h a m o u n t o f s h r i n k a g e ( t h e f t ) p r e v a l e n t .
F a l s i f i c a t i o n o f b i l l e r r o r s b y c u s t o m e r s a l s o p r o v i d e d f o r s o m e b e n e f i t .
S h o p p i n g a s s i s t a n c e u s u a l l y n o t r e q u i r e d b y t h e s h o p p e r s ( o n l y b r i e f i d e a o f t h e s c h e m e s a r e r e q u i r e d )
M o s t o f t h e b i l l i n g e r r o r s c a u s e d b y i g n o r a n c e o n t h e c u s t o m e r s i d e .
Conclusion