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Title of project
CUSTOMER SERVICE OF FMCG SECTOR WITH
REFERENCE TO BIG BAZAAR
Introduction to topic
Fast Moving Consumer Goods (FMCG) can be defined as packed goods that
are consumed or
sold at regular and small intervals. The prices of the FMCG are relatively
less and profits earned through such sales are more volume based. The
organized FMCG retailing in India is a new concept and is fast catching up in
urban and semi-urban India.
The FMCG Sector in India has witnessed a range of recent developments.
Tax deductions on
various items, rise in the penetration levels and per capita consumption
are some of the major
developments in FMCG. The FMCG Sector in India is the fourth largest sector
in the Indian
economy. As per the reports of the 2005-06 financial years, the market
size of the sector was
registered as USD 13.1 billion. The FMCG Sector in India involves a strict
competition between
the organized and unorganized sectors of consumer durables. India
offers an abundance raw
materials (Some product categories such as jams, toothpaste, skin care
products, hair care
products, etc have experienced a low per capital consumption as per a
report presented in
2006,low-priced labour costs, and also has a presence across the entire
value chain.
Big Bazaar, a uniquely Indian hypermarket chain, Food Bazaar, a
supermarket chain, blends the look, touch and feel of Indian bazaars with
aspects of modern retail like choice, convenience and quality and Central, a
chain of seamless destination malls. Some of its other formats include,
Depot, Shoe Factory, Brand Factory, Blue Sky, Fashion Station. The company
also operates an online portal, futurebazaar.com.
Significance
Its provide guideline for further research in area for organized retail.
Research says about customer buying behavior towards Big Bazaar.
The research is also important to identify Market size, growth and
Market Potential of Big Bazaar. The research shows future Scenario of
Big Bazaar in current perspective. The study shows Opportunities and
challenges for Big Bazaar espect of internal & external environment.
Research say about main competitors in the field of organized retail
sectors. The study provide guideline to further extension of Big
Scope of Study
Literature Review
For the survey of existing literature, the research papers published in
Journals, Reference books, Magazine, internet, government report etc were
referred. The observation and findings presented in this section are based
on this literature review. Feinberg, Sheffler, Meoli and Rummel (1989)
considered the social stimulation provided by malls, finding that the mall
served as an outlet for social behavior. Further examination of this issue was
made by Lotz, Eastlick and Shim (2000), who studied the similarities and
differences between mall entertainment seekers and mall shoppers. Their
results supported hypotheses that there are different motivations for
individuals who visit a mall for entertainment activities versus those who
visit for shopping purposes. Roy (1994) in his study considered several
characteristics of shoppers - such as functional shopping motivation, deal
proneness, recreational shopping motivation, age, income and family size,
to be a significant influence on mall shopping frequency.
Objectives of Study
The growth of the FMCG sector has also been facilitated by the modern formats of retailing.
Additionally rising income levels in both rural and urban India are expected to further boost the
sales of fast moving consumer goods. Industry prospects are definitely looking bright for
domestic and foreign retailers, manufacturers and wholesalers.
The food segment is expected to outperform all the other FMCG segments. On an average,
Indian consumers spend around 36% of their income on food, hence why the food industry
plays a major role in the countrys economy.
India also faces an acute crisis of malnutrition, with millions of people going without food. The
Highest number of diabetes cases are also seen here. However this can also be seen as a great
opportunity for companies manufacturing food, particularly in the health foods segment.
The fast moving consumer goods sector is also penetrating the rural market, which is growing
at a fast rate. With more awareness, people in rural India have developed a taste for more
contemporary food, which further suggests the scope and potential this sector offers.