Customer Perception of Private Label Brands at Big Bazaar

The study was conducted to identify the customer perception about the private label brands at the Big bazaar. The study was limited to the private label brands in the food, apparels and the electronics section. The research was mainly conducted to identify various factors which influenced the buying behaviour of the private label brands. The study also intended to identify the demand for certain products which the customers would prefer to buy if included in the private label category.The main objective of the study was to identify various factors which adversely affect the sale of private label brands and to suggest an idea to increase the sale of private label brands.

Scope of Study

The strategy for planning private label brands has got a wider scope. It helps the manufacturer or retailer to produce goods according to the needs of the people. The retailer can concentrate those areas where the customer would like to down trade. The study mainly aims at identifying the spending pattern of the public, i. the commonly purchased goods by a customer. The study also helps to establish a relationship between the various demographic which is repeatedly performed by people belonging to the same location or area of interest. The study also throws light on certain areas where they would like to implement the private brands.

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The study also helps in maintaining optimum level of inventory so as to meet the demand. The study also helps to improve on those area where it fails to meet customer expectations.

Objectives

The various objectives of the study areTo identify and study about various departments within the organization and its functioning. To research about the strategy adopted by Big Bazaar to promote their private label brands. To identify various parameters which influence the customer’s buying behaviour. To identify other products which could make successful private label brands.

To suggest certain ideas which could increase the sale of the private label brands

Methodology

The method adopted by the study is simple random survey. The data is collected by conducting a customer survey.Customers being the end users of the product , the study yields a true picture about the actual demand of a commodity and it’s growth in the future.

Sources of Data

The data required for the study is collected from primary source as well as secondary source. The primary data is the data collected for the first time through observation and interview or questionnaire method.

The primary data is collected by observing the functioning of various departments. The primary data can also be collected by interacting with the managers and the staff of various departments.The secondary data is also collected by secondary sources. Secondary sources include data collected from company manual, product brochure, company website and annual report. Population and sampling Population is the superset of people under study. Thus population according to this study will be the entire customer strength of the Big Bazaar. The sample is the sub set of the population under study.

The study was conducted during a period of April 19- April 26. The sample used in this research study will be the customers who had responded to the questionnaires.The sample size or the total number of customers who responded the survey is 100. Data collection The data used for analysis and interpretation is collected using questionnaires. The questions are framed in a specific manner so that a continuity is maintained in the paper which favors free flow of information whose accuracy can be maintained. The data is collected by surveying the customers who walk in to the store and are asked to grade various parameters in the questionnaire. The customers are allowed to think freely without any interruption from the person who is carrying out the survey.

Chapter 5 Data analysis and interpretation Customer awareness of private label brand The following pie- chart depicts the number of customers who are aware that the big bazaar owns private label brands. Out of the 100 customers who were surveyed, 52 % were aware that the store has their own brands. The rest 48% unaware about this fact. This reveals the importance of promotion scheme to be implemented in the private brand sector. This data reveals that the store lacks internal promotion activities.More emphasis has to be provided on creating awareness and excitement among the customers. Relationship between the awareness about the private label brand and the sales men promotion of clean mate This graph reveals the relationship between the awareness about the private label brands and the promotion of clean mate by the sales man.

Only 48% of the customers purchase clean mate out of which 28% are aware of private brands and 20% are unaware of the private brand. 32. 14% of the customers rated the sales men promotion as poor and 29. 17% of the customers rated the performance as good.This reveals that the sales men should be given training in promoting the private brands. The influence of the occupation on customer buying pattern This graph depicts the relationship between the occupation of customers and their spending pattern. The maximum amout of purchase is done by the customers in the private sector Rs2000_Rs 3000 per month.

35% of the customers purchased 2000-3000 Rs per month. Only 9% of the customers purchase abve Rs 5000 per month out of which 66. 66% are employees in private sector.. The government job employees never purchased above Rs 5000 per month.It would be more advisable for the store to identify the consumption pattern of these employees and design products accordingly. The relationship between occupation and selection of apparels based on quality Among the customers the housewives or the unemployed are the chief consumers of apparels.

29% of customers in the private sector and 26% of customers who are house wives are the major customers of apparels. 41% of the customers and 11% of customers rated the quality as excellent and poor respectively. Government job employees and self employed customers share almost similar quality perception.The government job employees consider the quality of apparels as good, if the store takes much care in producing the quality goods these customers can be retained Relationship between age and its influence in selecting apparel varieties This graph depicts the customer preference about the variety of apparels based on age.

The chief customers belonged to the age group 20-40 which amounted to 62. 2% of customers and the customers in 0-20 as well as 60-80 age group purchased the least which is 4. 4% and 2.2% of the customers. The store must take care in providing ample varieties in the 0-20 and 60- 80 age group category.Buying behaviour of customers influenced by the offers on Tasty Treat products Tasty treat is the private label brand in the instant and pack food category. 48% of the customers purchased tasty treat of which 44% of customers spent Rs 3000-5000 per month and 4. 17 % of customers are those who spent more than 5000Rs per month.

The offers of tasty treat was rated as 21% as excellent, 35. 47% as good and satisfactory and 8.33 % as poor. 50% of the customers who rated the offers as poor spent Rs 1000-2000 and 2000-3000 per month. The offers provided by tasty treat must be such that to attract the customers of this category.The influence of occupation in selecting private brand chapatti maker This graph indicates that 48. 45% of the customers prefer private brand Chapatti maker. Out of the customers who prefer the brand 21. 64% represented the private job employees and 8.4% are from the government job and house wives.

Among the customers who do not prefer private brand 21. 65% are house wives and 12. 37% are government employees. This explains that private job employees are willing to spent on private label brands and it would be good if the company introduce other electronic appliances.The company must consider other classes and produce goods which are applicable to these customers. The relationship between the customer preference of the private brand milk and milk products and location of the customers.

71% of the customers prefer private brand milk and milk products of which 13% are 0-5 km from the store and 5% of the customers are 15-20 km and above 20 km from the store. The company can introduce milk and milk products since the majority prefer the private label brand. If the store could afford storage and transport facility the products can be made available to longer distances.The relationship between the after sale service of electronic goods and the location of the customers. This graph depicts the opinion of customers on the after sale service facility of electronic goods of the store. 40. 47% of customers rated the after sale service as good, 4.7% rated the after sale service as excellent. Only 2. 3% of customers rated the after sale service as satisfied from 5-10km from the store. Proper care must be adopted to establish service facilities within this region. The varied perception of the customers of the price of fresh & pure based on occupation.Fresh & pure is the private brand ghee and honey brand. 8% of the customers rated the price of the Fresh & pure brand as excellent.

19% of the customers rated the price as good. 50% of the customers who rated as excellent are private job employees. 21. 05% of the customers are government job employees who do not prefer the brand. This reveals that the middle class customers consider the price of fresh and pure is not reasonable. The store can pack these products in small packets in order to make it available to the entire customer range. The difference in the shopping destination based on distance.

Most of the customers prefer super markets as shopping destinations. Within 1-5 km the maximum number of customers purchase from super markets. This trend is even visible where the customers who are 15-20km and above 20 km. it will be advisable for the store to stock the commonly purchased items of the people who shop from the supermarkets to increase the share of the private brands. Customer preference of private label brands This graph depicts the response of the customers to certain products which could make up successful private label brands. 5% of the customers prefer private label night wears. 64% of the customers prefer private label lungis.

Only 39% of the customers prefer private label formal foot wears. This data reveals that night wear and lungis could make up successful private label brand but the formal foot wear has less reputation if available as private label brands. The store could conduct a study so as to launch night wear and lungis. Customer preference of private label electronic goods This data reveals that most of the customers do not prefer private label electronic goods. 7%of the customers prefer chapatti maker. Only 31% of the customers do prefer private brand bread toaster. 36% of the customers prefer hair dryers.

Kids watches and emergency lights are the goods which is mainly preferred by the customers. 53% and 50% of the customers prefer private brand kids watches and emergency light respectively. The store could launch kids watch , chapatti maker and emergency light which would make up successful private label brand. Customer response about private label brands This data reveals the response of customers to private brands.Majority of the customers prefer products like milk and milk products, office stationery, bakery products and plastic goods to be included as private label brand. 70% of the customers prefer private brand milk and milk products. 79%, 73%, and 79% of the customers prefer private brand office stationery, bakery products, plastic goods and toys etc.

The store could launch these products as they could make up successful private label brand. Findings Nearly half of the customers are not aware of the private label brands. This reveals that the store lack internal promotional activities.This also depicts that the promotion by the sales men is not adequate in creating an interest n the customer. The study reveals that only 48% of the customers purchase the home care brand clean mate of which only few know that it is an in store brand. Nearly 32% of the customers rated the sales men service as poor. This reveals that the service provided by the sales men is not adequate to gain customer attraction.

Majority of the customers made an average monthly purchase of Rs 2000-3000 per month out of which majority of the customers are employees working in private sector.Only 9% of the customers purchased an average amount above Rs 5000 per month of which majority of the customers had jobs in the private sector. House wives and employees in the private sector are the major customers in the apparel section. Majority of the customers are satisfied with the quality of the apparels. Only 11% of the customers rated the quality of the apparels as poor. The government job employees and self employed customers has same quality perception about the apparels. Customers belonging to the age group 20-40 are the major customers in the apparel section.

2% of the customers of the apparels section belongs to this age group. These group of customers rated the varieties available in the store as good hence are satisfied with the varieties available in the store. The study revealed that the store lack good variety of apparels for the age group 0-20 and 60-80. Their contribution accounted for 4. 4% and 2. 2% respectively which is enormously low .

The customers who purchased the instant and packed food brand Tasty treat amounted only up to 48% of which only 4. 4% of the customers purchased above Rs 5000 per month.Majority of the customers rated the customers rated the offers as good and satisfactory. The study depicts that the offers on Tasty treat mainly attracted those customers who spent Rs 3000-5000 and Rs 2000-3000 per month. The study revealed that 48. 5% of the customers will purchase private brand chapatti maker of which majority of the customers are employees in the private sector. The customers who are either have government job or house wives showed less interest in purchasing the private brand chapatti maker.

Majority of the customers prefer private label milk and milk products which amounted up to 71% of the customers of which majority of the customers are 0-5 km from the store. The after sale service provided for electronic goods are not satisfactory for customers who are located 5-10 km from the store. 41% of the customers rated the after sale service as good. The study revealed that majority of the customers prefer super markets as their shopping destination. 36% of the customers of the store are resides 0-5 Km from the store. 55% of the customers shop from the supermarkets.Majority of the customers prefer private brand night wears and lungis.

Their preference amounts up to 75% for night wear and 64% for lungis. Only 39% of the customers do prefer private brand formal foot wears. The customers prefer private brand electronic goods and showed a positive response for products like chapatti maker, kids watches, emergency light etc. They showed less preference for products such as hair dryer and bread toaster. The study depicts that the customers would prefer private brand milk and milk products, office stationery plastic goods and toys.

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