CRM -Future Group Big Bazaar

8/4/2019 CRM -Future Group Big Bazaar

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Team Members

Team Members

• Naitik Shah

• Hariprasad Shetty

•

Jaydev H. Vadodaria• Parul Vohra



Introduction • “It is not enough to have great

qualities; we should also have theabilities to manage them”. For e.g.a company may produce a veryhigh quality products but it won’t be able to succeed if it fails to

manage or satisfy their customers.

• Customers are considered to beking of every business enterpriseand loyal customers are thebackbone of their business. Socustomer satisfaction is theprimary motive of every businesswhich can be attained througheffective CRM (Customer

Relationship Management) policy.



What is CRM?

•

"CRM is the business strategy that aims tounderstand, anticipate, manage and

personalize the needs of an organization's

current and potential customers" -- PWC

Consulting.

• CRM is a comprehensive strategy &

process of acquiring & retaining

customers to create superior value for the

company as well as the customers. The

information collected by the organization

to make future plans that can satisfy in a

better & retaining them for a longer

period.



• Kishore Biyani led the company’s foray into organized retail with theopening up of the Big Bazaar in the year 2001.

• It is a unit of Pantaloon Retail (India) Ltd and caters to the Great IndianMiddle Class. It was started as a hypermarket format head quartered inJogeshwari, Mumbai with approx. 50,000 sqft of space. Its values andmissions are to be the best in Value Retailing by providing the cheapestprices and hence go the tag-line

“Is se sasta aur achcha kahin nahin”

• It sells variety of merchandise at affordable rates, the prices of which itclaims are lowest in the city.

•

It currently operates out of more than 150 stores and top 25 storesregister a cumulative footfall of 30 lakh a month on an average.

• There is always a ‘first mover advantage’ in an upcoming sector. In India,that advantage goes to “Big Bazaar.” It has brought about many changes inthe buying habits of people. It has created formats which provide all itemsunder one roof at low rates, or so it claims.

BIG BAZAAR



TARGET AUDIENCE

• Big Bazaar targets higher and

upper middle classcustomers.

•

Large and growing youngworking population is a

preferred customer segment.

• Targets specifically working

women and home makers

who are the primary decision

makers.



CORE VALUES

• Leadership: To be a leader, both in thought andbusiness

• Respect & Humility: To respect every Individualand be humble in conduct

• Openness: To be open and receptive to newideas, knowledge and information

• Valuing and Nurturing relationship: To build and

maintain long term relationships

• Adaptability: To be flexible and adaptable, tomeet challenges



• To minimize Retailing cost:

• Operating: Fewer staff on the floor-oneperson for every 500 sq ft

• Minimize the Furniture cost

• Sourcing: Cut Down 25-30 %

• Channel-Cut Down 15-20%• Saving Shelf Space

• Way to deal unsold stock off

• Plans to have In-Store promotions as wellslow-moving products off

• To ensure enough pull to snatch awaycustomers from the neighborhood

• “Today’s Price”:Everyday a chosenproduct is being sold at lower than usualprice

STRATEGIES



Big Bazaar’s New Marketing

Strategy

• Big Bazaar has launched new marketing

strategy which is based on GuerrillaMarketing. Guerrilla marketing warfare

strategies are a type of marketing warfare

strategy designed to wear-down the enemy

by a long series of minor attacks, using

principles of surprise and hit-and-run tactics.

• Attack, retreat, hide, then do it again, and

again, until the competitor moves on to

other markets. Herein guerrilla force is

divided into small groups that selectively

attack the target at its weak points.

•Corporate like Coke, Pepsi, etc have beenusing the same for quite some time now and

the latest entrant is ‘Future Group’- Big

Bazaar, Pantaloons, Future Bazaar, eZone are

all part of this group and they are taking on

the biggies like Shoppers Stop, Lifestyle, and

Tata’s Westside.



Big Bazaar

Wholesale Club • Now Save, Even more:

The Big Bazaar Wholesale Club brings to an opportunity

to save in bulk as the customers buy in bulk. In line with

the Big Bazaar tradition of providing best deals at best

prices, the Big Bazaar Wholesale Club provides the

customers bulk deals at wholesale prices.

• An extension of Big Bazaar, the Big Bazaar WholesaleClub offers multi-packs and bulk packs of a select range

of merchandise at wholesale prices. The merchandise

categories range from Food & FMCG to Home Linen and

many more. Customers will not find any merchandise

being sold loose/single unit (except fresh) at a Big

Bazaar Wholesale Club.• A typical Big Bazaar Wholesale Club is located adjacent

to a Big Bazaar in the form of a separate section. The

look and feel of a wholesale market is evident in the

stores from the stacking styles and use of a lot of hand

written signage by chalks on black slates.



Customer Satisfaction

• “The degree of customer satisfaction you deliver determines the level of long-term success you will achieve in business.” -- Training Mantra forSales Force.

• Don't just make sales. Create customers - satisfied customers. In additionto the immediate profit they provide on the first sale, satisfied customershelp you build your business in 2 other important ways:

1. They become a reservoir of repeat buyers. For some businesses thatmeans repeat buyers for more of the same product or service. For every

business, it means buyers for additional products and services.

2. They automatically refer more business to you from their friends andbusiness contacts. This is highly profitable business for you because itdoesn't cost you any time or money to get it.



PROCESS OF CRM

• Customer RelationshipManagement (CRM) is the processof bringing the customer and thecompany closer together. There aremany different areas in which

Customer RelationshipManagement can be implemented.

• The goal of CRM is to help a

company maintain currentcustomers, as well as gain newcustomers.



SWOT

• Strength :

• Prime location

•

Large floor space allowing for better visualmerchandising

• Large area also allows to stock a large variety of products under one roof

• Experienced and competent management

• Highly trained and motivated sales force

• Brand equity

• Large scale operations in various cities throughout

the country allows them to reap the benefits of “economies of scale”

• Weakness :

• Large scale of operations sometimes acts as a barrierto personalized

• customer relations

•

Large scale operations lead to reduced flexibility byincreasing the amount of overheads and a hugecommitment in terms of fixed costs

• A large organization structure leads to delayeddecisions. This can prove fatal for a business in thedynamic fashion industry. Mumbai, this factsometimes results in delayed decisions in adapting tochanging market trends



• Opportunities:

• Apart from the metros, cities like Ahmedabad, Pune, Lucknow, Indore andCoimbatore have shown substantial retail presence. These markets areexpected to show exponential growth in the next few years. Thus FoodBazaar has the opportunity to explore new markets

• According to the Consumer Outlook study, consumers are generallysatisfied with the service that organized retailers extend to them. Moreimportantly, they are increasingly regarding these organized retailers asproviding `value-for-money’. These findings indicate that large retailers

will capture most of the higher consumer spending

• Threats:

• The time when retailers had to worry about competition only from theirpeers down the street has come to an end. Food Bazaar is now facingincreased competition in the form of international retail chains that are

making a beeline towards the highly potential Indian markets.



Advantages & Challenges



Advantages of CRM for Big Bazaar

Using CRM, the management of Big Bazaar can:

• Provide better customer service

• Increase customer revenues• Discover new customers

• Cross sell/Up Sell products more effectively

• Help sales staff close deals faster

• Make call centers more efficient

• Simplify marketing and sales processes

Challenges for Big Bazaar in CRM implementation

• Difficulty in acquiring new customers can be a result of any one, orcombination, of the following problems.

• Inaccurate and Slow Quoting Organizations may be unable toaccurately estimate and quickly deliver successful proposals, oftenleading to missed opportunities, bad profit margins and upsetprospects.

• Lack of Product Knowledge Within their Sales Force



4P’s of Marketing



4Ps OF MARKETING • PRODUCT:

•

Big Bazaar offers the maximum variety foreach category of product.

• My World fashion magazine .

• Diverse merchandise

• Customized

• PRICE:

• It considers its discounted price as its USP.

• Low margin, High sales volumes

•

Low Interest Financing• Promotional pricing-Psychological discounting

• Special event pricing (Republic day)

• Differentiated pricing-Time pricing



•

PLACE:• Big Bazaar has always worked on low-cost

locations.

•

www.futurebazaar.com• Initially identifies future/potential

development areas

•

Acquires such areas at an early phase• Designed to look crowded



• PROMOTION:

• Big Bazaar has huge promotion budgets.

• The store has advertised through TV, road shows and also started realityshow-typed promotional campaign “The Big Bazaar Challenge.” Promotions like “Sabse Sasta Din”.

• Store oriented promotion which includes speaking on the loudspeaker innearby blocks.

• Leaflets are given in local newspaper.

• There are promotional efforts even inside the store. Buy 2 Get 1 Free

• Original prices are cut down and new prices are shown, of which customertakes quick notice.

• Loyalty schemes which reward regular clients.

• Promotion is also done through co-branded credit cards with ICICI bank.



• Future card (3% Discount)

• Advertising (Print ads, TV ads, radio)

• Tying up with IPL targeting sports lovers

• Celebrity endorsements-Brand endorsement by M.S.Dhoni

• Exchange offers

• Weekend discounts

• Point of Purchase promotions

• ‘Junk’ swap offer-“Exchange anything old for something

new”

Customers Feedback on this above offer



RECOMMENDATIONS AND SUGGESTIONS



RECOMMENDATIONS AND

SUGGESTIONS• Develop an incentive for them to tell associates and friends about the

value of your products or services.

• Surprise your customers with unexpected value.

• Reward them each time they refer someone who becomes a customer.

• The management of Big Bazaar can improve their understanding of the

role and capabilities of advertising to improve customer relation and

enhance loyalty.

• Visual Merchandising: It is often seen that the people come to the store to

browse rather than buy.

• Schemes: In store Promotions



CONCLUSION

“Customer Service is a critical factor for keeping your clients coming back andensuring they’ll refer you to others”.

1: Growing your business will be a difficult task at best if you don’t perform,meet and exceed your client’s expectations, and provide service thatcreates customers for life.

2: Customer service is all about the customer’s perception. You have to domore than just get the job done. You must deliver on all the things (bigand small) that affect the relationship with your client. Consideropportunities for improvement in the following areas.

3: Setting/Reviewing Expectations:

4: Communication

CRM -Future Group Big Bazaar

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