A Project Proposal on
A Study on Increase in Average Bill Value by Ten Percent
At
Big Bazaar,
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Industry
Overview
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Retail is Indias largest industry, accounting for over 10 per cent of the countrys GDP and around eight per cent of the employment. Retail industry in India is at the crossroads. It has emerged as one of the most dynamic and fast paced industries with several players entering the market. But because of the heavy initial investments required, break even is difficult to achieve and many of these players have not tasted success so far. However, the future is promising; the market is growing, government policies are becoming more favorable and emerging technologies are facilitating operations.
Industry Evolution
The emergence of the neighborhood Kirana stores catering to the convenience of the consumers Era of government support for rural retail: Indigenous franchise model of store chains run by Khadi & Village Industries Commission
1980s experienced slow change as India began to open up economy. Textiles sector with companies like Bombay Dyeing, Raymond's, S Kumar's and Grasim first saw the emergence of retail chains Later Titan successfully created an organized retailing concept and established a series of showrooms for its premium watches The latter half of the 1990s saw a fresh wave of entrants with a shift from Manufactures to Pure Retailers.
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For e.g. Food World, Subhiksha and Nilgiris in food and FMCG; Planet M and Music World in music; Crossword and Fountainhead in books.
mainly in urban areas, with facilities like car parking targeted to provide a complete destination experience for all segments of society
Emergence of hyper and super markets trying to provide customer with 3 Vs - Value, Variety and Volume Expanding target consumer segment: The Sachet revolution -
At year end of 2000 the size of the Indian organized retail industry is estimated at Rs. 13,000 crore
The whole concept of shopping has altered in terms of format and consumer buying behavior, ushering in a revolution in shopping in India. Modern retail has entered India as seen in sprawling shopping centres, multi-storeyed malls and huge complexes offer shopping, entertainment and food all under one roof. The Indian retailing sector is at an inflexion point where the growth of organized retailing and growth in the consumption by the Indian population is going to take a higher growth trajectory. The Indian population is witnessing a significant change in its demographics. A large young working population with median age of 24 years, nuclear families in urban areas, along with increasing working-women population and emerging opportunities in the services sector are going to be the key growth drivers of the organized retail sector in India.
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Recent Trends
Retailing in India is witnessing a huge revamping exercise as can be seen in the graph India is rated the fifth most attractive emerging retail market: a potential goldmine. Estimated to be US$ 200 billion, of which organized retailing (i.e. modern trade) makes up 3 percent or US$ 6.4 billion As per a report by KPMG the annual growth of department stores is estimated at 24% Ranked second in a Global Retail Development Index of 30 developing countries drawn up by AT Kearney.
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Traditionally three factors have plagued the retail industry: Unorganized : Vast majority of the twelve million stores are small "father and son" outlets Fragmented : Mostly small individually owned businesses, average size of outlet equals 50 s.q. ft. Though India has the highest number of retail outlets per capita in the world, the retail space per capita at 2 s.q. ft per person is amongst the lowest. Rural bias: Nearly two thirds of the stores are located in rural areas. Rural retail industry has typically two forms: "Haats" and Melas". Haats are the weekly markets : serve groups of 10-50 villages and sell day-to-day necessities. Melas are larger in size and more sophisticated in terms of the goods sold (like TVs)
Recent changes:
Experimentation with formats: Retailing in India is still evolving and the sector is witnessing a series of experiments across the country with new formats being tested out. Ex. Quasi-mall, sub-urban discount stores, Cash and carry etc. Store design : Biggest challenge for organised retailing to create a customerpull environment that increases the amount of impulse shopping. Research shows that the chances of senses dictating sales are upto 1015%. Retail chains like MusicWorld, Baristas, Piramyd and Globus are laying major emphasis & investing heavily in store design. Emergence of discount stores: They are expected to spearhead the organised retailing revolution. Stores trying to emulate the model of Wal-Mart. Ex. Big Bazaar, Bombay Bazaar, RPGs. Unorganized retailing is getting organized: To meet the challenges of organized retailing such as large cineplexes, and malls, which are backed by the corporate house such as 'Ansals' and 'PVR the unorganized sector is getting organized. 25 stores in Delhi under the banner of Provision mart are joining hands to combine monthly buying. Bombay Bazaar and Efoodmart formed which are aggregations of Kiranas.
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Consumer Trend
Over the years, the increasing literacy in the Country and the exposure to developed nations via satellite television or by way of the overseas work experiences, the consumer awareness has increased on the quality and the price of the products/services that is expected. Today more and more consumers are vocal on the quality of the products/services that they expect from the market. This awareness has made the consumer seek more and more reliable sources for purchases and hence the logical shift to purchases from the organized retail chains that has a corporate background and where the accountability is more pronounced. The consumer also seeks to purchase from a place where his/her feedback is more valued.
India is currently having the largest young population in the world and 54 per cent of Indias population is below 25 years of age and 80 per cent are below 45 years. As per Indias Marketing Whitebook by Businessworld, India has around 192 million households. Of these only a little over six million are affluent that is, with household income in excess of INR215, 000. Another 75 million households are in the category of Well off immediately below the affluent, earning between INR 45,000 and INR215,000. This is a sizable proportion which offers excellent opportunity for organized retailers to serve
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Social Trends:
Social trends of a country have impact on the scheme of growth of food retailing in a country. India is country that is vast geographically and diverse culturally. This has taken its toll on food retailing with retailers having to adapt to the local cultures and palates of the area in which they have established or plan to establish. This is a major reason for many or most retailing chains restricting their operations to a certain part of the country. But the trends now are slowly moving towards cultural integration where people of all states and diametrically opposite cultures tend to try out foods and materials of other states and communities. This movement towards social integration would make it very feasible in the near future for retailing chains and erstwhile local chains to spread across the country. Increased income levels and more women willing to make use of their education by joining work has increasingly affected the shopping pattern that is moving towards fulfilling the need of convenience shopping in the form of Supermarkets (now graduating to Hyper format) home deliveries. Indian consumer is quality and price conscious and this awareness would drive the retailers to rework their supply chain relationships. A recent analysis shows that countries go through a distinct food consumption evolutionary pattern. In the first stage the focus is on obtaining basic dietary inputs, the second stage focuses on improving and building basic foods, before moving to the third stage of adding premium food to the diet. Most of urban India has already moved to the third stage and it is a great avenue for food retailers, if they could slowly introduce the rest of India to it. The future would witness creation of specific models/formats one for the upwardly mobile
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Strategic management - strategising, targeting and positioning, marketing and site selection, among others
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The largest form of organized retailing today. Located mainly cities, in proximity to urban outskirts. Ranges from 60,000 sq ft to sq ft and above. They lend an ideal shopping experience amalgamation of product, service and entertainment, all under a roof. Examples include Shoppers Stop, Piramyd, Pantaloon.
Specialty Stores:
Chains such as the Bangalore based Kids Kemp, the Mumbai books retailer Crossword, RPG's Music World and the Times Group's music chain Planet M, are focusing on specific market segments and have established themselves strongly in their sectors.
Discount Stores:
As the name suggests, discount stores or factory outlets, offer discounts on the MRP through selling in bulk reaching economies of scale or excess stock left over at the season. The product category can range from a variety of perishable/ non perishable goods
Department Stores:
Large stores ranging from 20000-50000 sq. ft, catering to a variety of consumer needs. Further classified into localized departments such as clothing, toys, home, groceries etc.
Department Stores:
Departmental Stores are expected to take over the apparel business from exclusive brand showrooms. Among these, the biggest success is K Raheja's Shoppers Stop, which started in Mumbai and now has more than seven large stores (over 30,000 sq. ft) across India and even has its own in store brand for clothes called Stop!.
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Hypermarts/Supermarkets:
Large self service outlets, catering to varied shopper needs are termed as Supermarkets. These are located in or near residential high streets. These stores today contribute to 30% of all food & grocery organized retail sales. Super Markets can further be classified in to mini supermarkets typically 1,000 sq ft to 2,000 sq ft and large supermarkets ranging from of 3,500 sq ft to 5,000 sq ft. having a strong focus on food & grocery and personal sales.
Convenience Stores:
These are relatively small stores 400-2,000 sq. feet located near residential areas. They stock a limited range of high-turnover convenience products and are usually open for extended periods during the day, seven days a week. Prices are slightly higher due to the convenience premium.
MBOs :
Multi Brand outlets, also known as Category Killers, offer several brands across a single product category. These usually do well in busy market places and Metros.
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Major Retailers
Indias top retailers are largely lifestyle, clothing and apparel stores This is followed by grocery stores Following the past trends and business models in the west retail giants such as Pantaloon, Shoppers Stop and Lifestyle are likely to target metros and small cities almost doubling their current number of stores These Walmart wannabes have the economy of scale to be low medium cost retailers pocketing narrow margin
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Company Profile
Future Retail : encompassing all lines of retail business Future Capital : financial products and services
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Future Space : management of retail real estate Future Logistics : management of supply chain and distribution Future Media: development and management of retail media
spaces
The groups flagship company, Pantaloon Retail (India) Limited operates over 7 million square feet through 1000 stores in 52 cities. Future Group companies include, Indus League Clothing, that owns and retails brands like Indigo Nation and Scullers and Galaxy Entertainment that manages Sports Bar, Brew Bar and Bowling Co. Future Capital Holdings, the groups financial arm, focusses on asset management and consumer credit. It manages assets worth over $1 billion that are being invested in developing retail real estate and consumer-related brands and hotels.
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US-based stationary products retailer Staples UK-based Lee Cooper India-based Talwalkars, Blue Foods and Liberty Shoes.
Future Groups vision is to, Deliver Everything, Everywhere, Every time to Every Indian Consumer in the most profitable manner.
The group considers Indian-ness as a core value and its corporate credo is - Rewrite rules, Retain values.
Major Milestones
1987
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2001 Big Bazaar, Is se sasta aur accha kahi nahin - Indias first hypermarket chain launched.
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2002 Food Bazaar, the supermarket chain is launched. 2004 Central Shop, Eat, Celebrate In The Heart Of Our City - Indias first seamless mall is launched in Bangalore. 2005 Fashion Station - the popular fashion chain is launched aLL a little larger - exclusive stores for plus-size individuals is launched 2006 Future Capital Holdings, the companys financial arm launches real estate funds Kshitij and Horizon and private equity fund Indivision. Plans forays into insurance and consumer credit. Multiple retail formats including Collection i, Furniture Bazaar, Shoe Factory, EZone, Depot and futurebazaar.com are launched across the nation. Group enters into joint venture agreements with ETAM Group and Generali.
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Pantaloons : department store Central : seamless malls Blue Sky : fashion accessories aLL : fashion apparel for plus-size individuals Big Bazaar : hypermarket Food Bazaar : supermarket Fashion Station : popular fashion Collection i : home furnishings E-Zone : consumer electronics Depot : books and music Shoe Factory : footwear Headquartered out of Mumbai, the company operates more than 331 outlets covering 5 million square feet of retail space, spread across 40 cities and has over 25,000 employees.
Fact sheet
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Corporate Headquarters: Knowledge House, Shyam Nagar, Jogeshwari (East), Mumbai 400 060. India Ph: +91 22 6644 2200 Website: www.pantaloon.com Background: Founded in 1987 as a garment manufacturing company, the company forayed into modern retail in August 1997 with the launch of its first department store, Pantaloons in Kolkata. Listing: Pantaloon Retail is a listed company on the Bombay Stock Exchange (BSE, Scrip Code: 523574) and National Stock Exchange(NSE, Symbol: PANTALOONR). Employee Strength: 25,000
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Big Bazaar
Big Bazaar, is the chain of retail stores of the big banner Pantaloon Retail (India) Ltd., which in turn is a segment of the Kishore Biyani, regulated Future Group of Companies. Moreover the customer friendly ambiance and the organized retailing of products also make Big Bazaar one of the successful retail companies in India.
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The
This large format store comprise of almost everything required by people from different income groups. It varies from clothing and accessories for all genders like men, women and children, playthings, stationary and toys, footwear, plastics, home utility products, cosmetics, crockery, home textiles, luggage gift items, other novelties, and also food products and grocery.
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 salable products.
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The Food Bazaar or the grocery store with the department selling fruits and vegetables There is a zone specially meant for the amusement of the kids Furniture Bazaar or a large section dealing with furnitures Electronics Bazaar or the section concerned with electronic goods and cellular phones FutureBazaar.com or the online shopping portal which makes shopping easier as one can shop many products of Big Bazaar at the same price from home
Food Bazaar
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Big Bazaar
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Electronics Bazaar
Currently present within Big Bazaar stores, Electronics Bazaar offers the best deals in branded electronic goods and appliances.
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Furniture Bazaar
Furniture Bazaar offers an entire range of Home Furniture needs that are utilitarian and affordable in their pricing.
Depot
Books, Music & Gifts
Depot is one of the youngest brands from the Pantaloon stable and is a tribute to our freedom of thought, speech and expression shared in a novel fashion with customers as books, multimedia, toys, stationary and gifts. Depot is all about freedom and democracy and this is reflected in the relaxed manner in which products are displayed, the affordable pricing, the strong local flavour, the young, lively and interactive store experience, that are all designed in a way to liberate these categories and transform the way they are bought, sold and perceived in India. At Depot, book lovers are offered a range of books that meet the needs and preference of every age group. From fiction to general reference, management and childrens material, you will find it all at Depot. Music buffs are invited to select from a wide category of music CDs and cassettes spanning all genres like Rock, Pop, Hindi, Indipop and more. For the movie enthusiasts out there, we have a great selection of home videos (VCD and DVD) and multimedia (CD-ROMs). Depot Store also has an attractive selection of gifts (candles, mugs, photo frames, themed packs) toys and stationery (office, childrens and fancy
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Depot is a lively, colourful, vibrant and happy retail space, which we hope you will visit in the near future. Inviting Reading Corners where you can be comfortable with a book of your choice and an Interactive Zone where you get to try out new board games, read new books, check out new toys and browse at the Interactive kiosk, await you at Depot. Depot also has it's line of private label products. It is our guarantee that you will not find better deals than what we are offering so check out what is on offer today!
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M Bazaar
Latest Technology, Lowest Price.
M Bazaar is the first and one of its kind concept offering comprehensive solutions to satisfy the knowledge, entertainment and communication aspirations of Individuals. A value seekers haven, M Bazaar offers latest technologies at fantastic prices. The product basket offers everything from airtime recharges, mobile accessories, swanky brands in mobile phones, landline instruments, blue tooth accessories, fashionable mobile trinkets and much more. Present as a part of Big Bazaars, these retail points are unique in character by their warm presence combined with the cutting edge branding. The counters are specially designed to give the customers an easy access to all the products thus making it a hot spot for all the tech enthusiasts.
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labels, it has opened the doors into the world of fashion and general merchandise including home furnishings, utensils, crockery, cutlery, sports goods and much more at prices that will surprise you. And this is just the beginning. Big Bazaar plans to add much more to complete your shopping experience
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Navaras
Jewellery for all emotions and occasions
Navaras, a fine 22 carat pure gold and diamond jewellery brand, retailed from Big Bazaar stores, offers nine unique rational benefits to the consumer namely BIS Hallmark jewellery, free cleaning and polishing, insurance cover against theft and burglary, transparent making charges, a buyback if unsatisfied, 0% weight loss if jewellery is exchanged, diamond certification, free karatmeter check and a range of designs. The Navaras product range and store look is in keeping with the needs of contemporary women. It is emotions and occasions that lead women to buy jewellery, they buy jewellery to express emotions like pyaar (love), during occasions like tyohaar (festivals) and as uphaar (gifts). Navaras jewellery has been conceptualised with this thought - jewellery for all emotions and occasions. Future Group has revolutionized the Indian jewellery market with the launch of Navaras, which offers branded, pure and design differentiated jewellery at competitive prices in a hypermarket set-up in line with the evolving buying behaviour of consumers. The rationale behind this is that with higher disposable incomes, for consumers today gold and other jewellery purchases too have become impulsive buying activities. Hence, Navaras within Big Bazaar.
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tailored to suit the modern day consumer. Navaras offers a complete fine jewellery shopping experience, despite being within the confines of a hyper market. This is ensured by the segregation of the Navaras section via glazed glass walls to provide a comfortable and secluded ambience. The sit-down arrangement, as opposed to stand alone counters, further ensures that shoppers try out the Navaras products in a peaceful and comfortable environment before they make their final shopping decision.
Pantaloon Retail (India) Ltd. opened a Big Bazaar outlet in Hubli on July 28 2007, Saturday. This is the ninth outlet in the State and 62nd outlet. Located near Akshay Centre, Gokul Road, it was the first and biggest hypermarket store in the city. With 50,000 sq. ft. of shopping area, the Big Bazaar in Hubli is one of the largest stores of the company. The company hoped to do a business of Rs. 50 crore to Rs. 75 crore in the first year of the Hubli outlet.
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Project Details
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Surveys show that a large percentage of consumers do not look at ads before shopping, do not prepare shopping lists, and make purchases that are fully unplanned. In this situation some small improvements at the store and strategies can make customer to buy more. This study will helps to know the drawbacks and improve on such areas so that the average bill value will be increased by Ten percent.
By studying sales by store, department, and item, and comparing them with prior periods, a firm can get a sense of growth or contraction. Higher sales do not always mean higher profits. Sales data should be examined along with profit and loss data. Customer billing reports offer a lot of data. A retailer could learn about inventory movement, sales by different personnel, peak selling time, and sales volume. The purchase history itself evaluates against budgetary or goals.
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Objectives:
Increase in the average bill value by ten percent.
To study different parameters influencing the purchase To study the previous and present sales reports and find out the areas for improvement Identify products which can increase bill value and are impulse in buying Create combo offers in departments and increase the ticket size.
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Methodology:
Since the project is conducted at Big Bazaar Hubli, data is very crucial. Daily sales Reports were analyzed and interpreted to find the ways as to how bill value can be increased. Various techniques and methods have been implemented in order to achieve the aim.
Formulas:
Avg.value per piece--- Store sale/no. of store qty sold Customer conversion--- No of bills/no of entry Avg.value per bill----- Store sale/bills made
Collecting all historical data Analyzing the previous sales reports Observing the customer buying behavior to know what makes him to buy more and what not
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To know what are the major reasons for this; a study was done keeping in mind four major parameters .
OFFERS ARE NOT UPDATED IDOC PROBLEM LONG QUES WRONG COMMUNICATION BY TM
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Thus we need to focus on using atleast 6-7 cash counters when traffic
23%
15% Offers are not updated Idoc problem 25% Long ques Wrong communication
37%
is more and try to minimize queue length and another is proper communication between the teem member to the customer regarding offer. The offers should be updated. After implementing thee things the extent of customer leaving the things near cash counters will decrease by 75%. Also the Cashier should be updated with all the offers.
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TECHNIQUES IMPLEMENTED
Cross selling
This is an effective and most important tool for a format like big bazaar. Here merchandises are mixed with other related products and sold with other products. This technique will help in increasing the bill value and also liquidate the stocks. E.g.: food Bazaar and Plastics merchandise can be crossed sold. Vim bar, henko can be sold with scrubber or Brush form plastic department
Up selling
This technique is very important too. Up selling is when you call a person's attention to an item of greater quality (and cost). Here staff is trained to sell more products to a single customer. This can lead to improve in sales, increase in quantity and liquidate stocks. This can be done by preparing a separate batch of 20 or 25 staffs and train them on how to convince the customer in a clever way E.g.: When a customer comes to buy a shirt or a pant, staff should convince him to buy belt, socks or other accessories. He should be smart enough in convincing the customers at the right way
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Incentive
Incentive is a powerful tool to motivate staffs. Identify products which can be sold in large quantities and set an achievable target. E.g. Targets can be given on accessories which are between 50 Rs to 100 Rs. Motivate the staff to achieve the targets. This will increase the sales and bill value of the customers.
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Above all, it is the most important and effective tool to increase the bill value. It can be done department wise or store wise. In this tool a slab rate is set and hyped to maximum. Customer can avail exciting offers if they fulfill the criterias set by the department /store. EG. Shop for rs.999 and above and get 5kg sugar free.
Customers get impacted when they look at this area. Their decision pattern changes when they see an exciting offer running on the floor.
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Preparing combo offers Combo offers are those where two or more different products will be sold together at a lower price. Eg. o T- Shirts and caps o Cotton jeans and belt o Cargos with caps o Shirt and tie
There were some combo offers successfully run at Food Bazaar and Plastic utensils and crockery section during my project period and added to the customer bill value. Cont.
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Impulsive Products
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purchase in a goods or service category before he/she comes into contact with a retailer
Partially unplanned - A consumer intends to make a purchase in a
goods or service category but has not chosen a brand before he/she comes into contact with a retailer
Unplanned substitution A consumer wants to buy a specific brand
but changes his or her mind about the brand after coming into contact with retailer
Impulse purchases are more susceptible to retailer displays than preplanned purchases: For most shoppers, the checkout lane is the final hurdle choosing the right lane and getting out of the store quickly is a major objective. Retailers however view the checkout lane as last chance area the place to sell impulse items such as candy and magazine as well as small but profitable necessities batteries and razor blades.
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After keeping impulse buying goods near cash counters at Big Bazaar
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A Study on Increase in Average Bill Value by Ten Percent Impulsive productsApparels KIDS
INFANTS TOPS INFANTS PYJAMA INFANTS LEGING FEEDING BOTTLE INFANT WEAR CHILDREN SOCKS ACCESSORIES BOTTLE BRESH
LADIES
Caps Hanky Socks Shall / scarf
BRAND NAME
many BB BB DJ &C
MRP
49/- and above 15/- and above 49/99/-
MENS
CAPS SOCKS SOCKS SOCKS SOCKS HANKIES
BRAND NAME
ASST B.B BB KNIGHT HOOD DJ&C LOVE BIRD BRAND(BLUE DIAMOND)
MRP
49/12/49/52/45/49/-
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PLASTICS CLEANING ARTICLES, CONTAINERS, POTS, FRIDGE BOTTELS, BUCKETS, MUGS, CASSEROLES UTENSILS PLATES, GLASSES, VATTIES, LOW PRICE TAWA, TOPES, COOKERS CROCKERY MELAMINE PLATES, LOW PRICE DINNER SET, BOWLS FOOTWEAR SLIPPERS, KIDS SANDALS AND SHOES, LADIES SANDALS. LUGGAGE SCHOOL AND COLLEGE BAGS, DUFFEL BAGS, MENS AND LADIES WALLETS TOYS AND SPORTS BELOW 99 SOFT TOYS, CHINKY DOLLS, SOFT PILLOW, INFLATABLE BALLS, TENNIS BALLS,
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The average bill value per day and per month is calculated for four months. December and January before implementing any technique. Above mentioned techniques were implemented in the month of February and March. The data of every month and comparative graphs are shown in following pages. The tables below show the date and average bill value on that particular day. Average bill value = Total Sales / No. of Bills made
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For the month of December. December Date 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Average Bill value In Rs. 528 528 420 629 610 560 495 582 464 500 490 506 410 524 561 524 573 651 565 403 552 677 522 528 486 560 493 509 548 383 540
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Average Bill Value In Rs. 547 550 473 417 500 417 517 381 909 680 449 482 465 513 530 581 461 377 977 489 423 528 380 469 487 459 569 402 974 572
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For the month of February after implementing different techniques February Date 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Average Bill Value In Rs. 612 457 551 662 502 461 496 756 470 524 522 621 531 623 597 538 566 607 584 515 545 643 579 591 521 408 562 504 443
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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
569 598 658 586 578 595 510 569 610 798 596 549 484 570 660 588 648 576 534 694 654 673 657 684 588 565 1098 696 595 699 610
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GRAPH 1
C O M P A R IS IO N W E E K E N D S , D E C & J A N
1200 1000 WEEK ENDS 800 600 400 200 0
D ec J an S a t u r d a S u n d a yS a t u r d a S u n d a yS a t u r d a S u n d a yS a t u r d a y u n d a yS a t u r d a S u n d a y y y y S y 52 8 482 52 8 469 58 2 5 17 464 461 56 1 52 8 52 4 50 0 6 77 9 77 52 2 9 74 54 8 0 383 0
D ec Jan
AB V
From the following GRAPH, it clearly indicates that there is a huge increase in bill value. This is during the big days on Jan 25th, 26th and 27th. Here it shows the hike on week ends. The bill value for Saturday and Sunday was 977 and 974. The total customer entry for these two days was 20638 customers. Apart from these two big days the bill value of January is decreasing compared to December in weekends
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GRAPH 2
C O M P A R IS IO N W E EK E N D S ,J A N & F EB
1500 1000 ABV 500 0
J an Feb
Ja n Fe b
Satur day Sunda y Satur day Sunda y Sa tur day Sunda y Satur day Sunday 482 457 469 470 517 538 461 579 528 551 500 524 977 566 974 591
W EEK EN D S
From the following graph it indicates that compared to month of Jan and Feb there is a hike in bill value ON FEB except during Big bays
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Graph 3
C o m p a r is io n o f W e e k -D a y s D e c & d eacn J
ja n
W eek D ays
From the following graph there is a decrease in Bill value which fluctuates from the range of 400 to 600 DURING WEEK days. The bill value was on it peak during the big day i.e. on Friday (25th) Total customer entry on 25th jan-3282
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Graph 4
C o m p a r is io n o f w e e k d a y s J a n & F e b
1000 800 600 400 200 0
3 9 j a n 5 4 74 4 94 2 35 5 04 7 34 6 5 8 04 1 75 1 35 3 04 8 74 1 75 8 14 5 95 6 93 8 13 7 74 0 2 0 96 8 04 8 95 7 24 9 6 5 5 f e b6 1 24 6 15 2 26 2 35 8 46 4 3 6 26 6 24 9 66 2 15 9 75 1 55 2 15 0 45 0 27 5 65 3 16 0 7 4 54 0 84 4 3 0 0
ja n fe b
W e e k D a ys
From the following graph it shows that there is a hike in bill value during weekdays for the month of February. The bill value compared to Jan and Feb. for week days it has risen by 11 % January weekdays bill value503 February weekdays bill value---558.
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Graph 5
C O M P A R I SI O N - D E C , J A N & F E B
12 00
10 00
80 0
DE C
ABV
60 0
J AN FE B
40 0
20 0
0 D E C 52 8 5 28 4 2 0 6 29 6 1 0 560 495 5 8 2 46 4 50 0 4 90 5 06 4 10 5 24 561 524 57 3 651 56 5 40 3 55 2 6 77 5 22 5 28 4 8 6 560 493 5 0 9 54 8 3 83 5 40 J A N 54 7 4 49 4 2 3 5 50 4 8 2 528 473 4 6 5 38 0 41 7 5 13 4 69 5 00 5 30 487 417 58 1 459 51 7 46 1 56 9 3 81 3 77 4 02 9 0 9 977 974 6 8 0 48 9 5 72 4 96 F E B 61 2 4 57 5 5 1 6 62 5 0 2 461 496 7 5 6 47 0 52 4 5 22 6 21 5 31 6 23 597 538 56 6 607 58 4 51 5 54 5 6 43 5 79 5 91 5 2 1 408 562 5 0 4 44 3 0 0
The following graph shows the comparison for the past three months i.e. December, January and February. It clearly indicates there is consecutive hike for the past three months. December total ABV526 January total ABV-----531 February total ABV----551 Compared to December and February there is a hike in 5 %
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Graph 6
JA N
FEB
The graph of February is above January throughout the month apart from two big days. Form the following graph it indicates that there is hike in Bill value by 4 % during the month of February JANUARY ABV-531 FEBRUARY ABV-551
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The average bill value in March is higher than December throughout the month. Average bill value in December : 526 Average bill value in March : 628 There is a increase in bill value by 19 %
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The average bill value in March is higher than January throughout the month. Average bill value in December : 531 Average bill value in March : 628 There is a increase in bill value by 18%
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The average bill value in March is higher than February throughout the month. Average bill value in February : 551 Average bill value in March : 628 There is a increase in bill value by 13.7 %
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A Study on Increase in Average Bill Value by Ten Percent Graph 9 : Comparison of all four months
1200 1000 800 600 400 200 0 1 2 3 4 5 6 7 8 9 1 011121314151 61718192 0212 22324252 62728293031
m a rc h Feb ja n Dec
The following graph shows the comparison for the past four months i.e. December, January, February and March.
It clearly indicates there is consecutive hike for the months of February and March.
December total ABV526 January total ABV-----531 February total ABV----551 March total ABV--------628 Compared to December and February there is a hike in 18 %
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Recommendatio n
:: Loyalty Program
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Loyalty programs
A retail establishment or a retail group may issue a loyalty card to a consumer who can then use it as a form of identification when dealing with that retailer. By presenting the card, the purchaser is typically entitled to either a discount on the current purchase, or an allotment of points that can be used for future purchases.
Delighted customers will get extra discount every time on making bill above Rs. 999/This is one program where any person can become a delighted customer of Big Bazaar by purchasing above 1100/- in a single bill. He will be given a membership card. Whenever he purchases above 999/- he can use this card to get extra benefits or discount one the purchase. (Upto 5%). He will also be getting many other benefits (during special days, festivals etc.) and a strong customer relation will be built. The card should be used atleast once in 3 months otherwise it will be expired.
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bazaar to make their monthly grocery and other purchases, even for home linen and apparels. Customers shifting to other retail outlets will definitely come down when they are treated as delighted customers Special offer for students flash your Identity card and get special discount This may be for a week / fifteen days or a month youth festival where college students will get special discounts above certain amount of purchase. Students have to flash their identity card of their respective institute to get such discount. They can also be part of other activities to get more by showing their identity card itself and get.
Special gifts hampers (latest music cds, accessories etc.)
lucky vouchers
Be part of Treasure hunt type games for one or two days to
create excitement and win more prizes. * This effort is because youth is the major buyer in apparels and they always make big bills. It is very important to see that these youngsters will not shift to our competitors like Vishal.
As I have observed the average bill at big bazaar is Rs. 500 to Rs. 600. There are around 40% of the customers who make bill between Rs. 750 to Rs. 850. We can convince these customers to buy some
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Suggestions
No. 1. Attract Shoppers and keep them in store The amount of time a customer spends inside a store is directly proportional to how much they spend. By making customers spend more time in the store, companies can increase their sales. A classic example of this is Barnes & Nobles book stores - they have a coffee shop inside the book store, they provide comfortable lounge chairs and sofas so that customers can browse books at leisure. No. 2. Men & Women have different shopping habits Men tend to walk directly to the required shelf - if the product is not on the shelf, they tend to walk out. Men rarely ask for help from the store attendants. If the required product is not seen in that store, they move on to another store. This results in lost revenue. An attendant always has to make sure that he asks the customer if he found everything he was looking for. Note that the store attendant has to be proactive when dealing with male customers. Women need more space around them while shopping. Women tend to avoid crowded stores or stores with narrow isles. The ladies section of the store has more space around the merchandise - when compared to mens section. Women tend to spend more time for shopping if the section is more spacious.
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No. 3. Make merchandise easy to find Customers dont like to hunt for products. Having all products clearly classified and displayed increases the sales. Display the store layout. Other chain stores do not even have sign boards. Create a route for customers to follow within a store Customers tend to slow down once they enter the store. Retailers can then utilize this by organizing the store in such a way that it encourages customers to wind their way all through the store, see/feel different things before they proceed to the checkout counter. Store should be designed in such a way that it encourages the customer to walk through all the departments of the store - and that encourages customer to buy more by reminding them of the things they need, or by making them buy things on impulse. Indian retailers are yet to catch-on to this concept. Most Indian retail stores are space constrained. Enough space is necessary to create a winding path for customers to follow.
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No. 4. Make Checkout faster Once customers have bought the products they need, they are eager to pay & leave the store. Customer patience at this point is very low. Retailers should have multiple checkout counters to address this issue. Another trick to increase sales is to prominently display magazines, chocolates, candies etc., at the checkout counter. These are high margin goods which people tend to buy on impulse. Shoppers with kids are particularly susceptible for this tactic. Retailers have to catch-up on the customer service aspect at the checkout counter. Very few checkout counters may result in long lines and lost sales due to customers walking out without buying - because of the long wait. Many of the customers feel like avoiding Big Bazaar or other super stores on weekends & evenings. Instead they prefer to buy things at the convenience mom & pop stores instead. All this accounts to lost sales for the superstores
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Understanding parameters influencing customers purchase behavior Deigning combo offers and increase ticket size Different techniques which help in increasing the bill value
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