Amity Business School

PRESENTATION ON
USEFULNESS OF LOYALTY
PROGRAM, BIG BAZAAR

BY:- VIKAS DUBEY

VIVEK MAURYA
ROHIT GULATI
ASHISH TIWARI
SUNNY VERMA
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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.
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THE SIGNIFICANT FEATURES OF BIG

BAZAAR:
 Food bazaar.
 Electronic bazaar.
 Furniture bazaar.
 FutureBazaar.com
 Amusement zone.
 Telecalling services.
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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.
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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.
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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
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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.
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LOYALTY PROGRAMS
Customer 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
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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
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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.
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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.
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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
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CONTINUED….
X2= Summation of (O-E)2

E
Where,
O= Observed set of frequencies
E= Expected set of frequencies
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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
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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
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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.
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CONCLUSION
In 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..
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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.
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