Project in Retail

Management
Big Bazaar

Presented By:

GELIVI KIRAN KUMAR

HYDERABAD

9391051217

ID-S082000000002
 …………………….Everything, Everywhere, Every time for Every
Indian Consumer in the most profitable manner.

COMPANY PROFILE

BIG BAZAAR

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

It is a unit of Pantaloon Retail (India) Ltd and caters to the Great Indian Middle Class. It was
started as a hypermarket format head quartered in Jogeshwari, Mumbai with approx. 50,000 sqft
of space. Its values and missions are to be the best in Value Retailing by providing the cheapest
prices 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 it claims are lowest in the
city. Usually the items are clubbed together for offers as on the lines of Wal-Mart and Carrefour,
offer weekend discounts and works on the same economy model as Wal-Mart and has
considerable success in many Indian cities and small towns.

It currently operates out of more than 150 stores and top 25 stores register 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 in the buying habits of people. It has created
formats which provide all items under one roof at low rates, or so it claims.

Also, with the ever increasing array of private 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. First Food Bazaar format was added as
Shop-In-Shop within Big Bazaar in the year 2002.Big Bazaar and Food Bazaar blend the look,
feel and touch of Indian Bazaar with modern retail concepts of choice, convenience and quality.
And this is just the beginning. Big Bazaar plans to add much more to complete your shopping
experience.

HIERA
OPERATING PARAMETERS TO UNDERSTAND OVERALL STORE
PERFORMANCE (As per our Observations in the Store):

Slogan: Is se sasta aur accha kahin nahin

Website www.pantaloon.com/bigbazaar.htm
Headquarters Jogeshwari, Mumbai, IndiaStore.
Location in Hyderabad-Ameerpet: Main Road-Commercial/Residential locality
Store regular timings, store extended timings-9Am-10.30PM
Type of Products-All Category
Store footfalls-Average Monthly-105000
Average Number of Bills-40000
Store Size-4 Floors, 40,000 SFT
Monthly Average sales-160 Lakhs
Number of Sales Executives-120
Lot Size-Small, Big
Price-Lesser than MRP (Good offers and Discounts)
Product Promotions-Everyday
Online facility-Through website
ATM Vending Machine-No
Merchandise Display with tags and promotion-Yes in Rupees and Paisa
Alteration of merchandise facility-Yes (Within 7 days of the Purchase-But no cash refund)
Facility for demonstration of merchandise-Yes for Electronics
Personal assistance is selecting merchandise-Yes
Signage for merchandise-Yes
Facilities for shoppers with special need-No
Play Area for Children-No
Special Services-Food Bazaar with Big Bazaar and Entertainment Zone
Rest Rooms-Yes
Parking Facility-Yes, but not special for all the Big Bazaar’s
Gift wrapping-Yes
Dressing rooms-Yes
Sitting/Waiting Place-No
Average time taken for Billing-5-15 Minutes
Store assistance welcoming-No. Strict Security Check
Order over Phone-No
Customer Loyalty cards-Yes
Special Offers for the day in the form of leaflets-Yes-Not in all the centres
Customer complaint/Feedback-Yes

TARGET AUDIENCE:
  Big Bazaar targets higher and upper middle class customers

 The large and growing young working population is a preferred customer segment

 Targets specifically working women and home makers who are the primary decision
makers

CORE VALUES:

 Indian ness: Confidence in ourselves

 Leadership: To be a leader, both in thought and business

 Respect&Humility: To respect every Individual and be humble in conduct

 Introspection: Leading to purposeful thinking

 Openness: To be open and receptive to new ideas, knowledge and information

 Valuing and Nurturing relationship: To build and maintain long term relationships

 Simplicity&Positivety: Simplicity and positive approach in though, business and actions

 Adaptability: To be flexible and adaptable, to meet challenges

BIG BAZAAR-USP:

 1Billion population.

 Availability of Liquid Cash \Disposable Income among Young Generation

 Affordable man power

 Craze, Passion among Mr. Customer (Consumer)

 More products ….Under ONE roof

 Affordable price

 Sentiments -To infuse confidence in Indian brands

 Schemes-Buy 01 gets one free, 20% dis...etc

STRATEGIES:

 To minimize Retailing cost:

 Operating: Fewer staff on the floor-one person 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 well slow-moving products off

 To ensure enough pull to snatch away customers from the neighborhood

 “Today’s Price”:Everyday a chosen product is being sold at lower than usual price

 Big Bazaar’s New Marketing Strategy: Big Bazaar has launched new marketing strategy
which is based on Guerrilla Marketing. 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 been using
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.

In order to do the same, Future Group have come up with 3 catchy/cocky and cheeky ad
campaigns which surely do catch our eyes and surely one can’t resist appreciating the same.

Keep West-aSide. Make a smart choice!

Shoppers! Stop. Make a smart choice!

Change Your Lifestyle. Make a smart choice!

 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 Wholesale Club 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.

 It has created ‘Fashion @ Big Bazaar’, a sub-brand, to position the format as much more
than food or general merchandise.

ENVIRONMENTAL ANALYSIS:

EXTERNAL ENVIRONMENTAL FACTORS:

4Ps OF MARKETING

"Marketing" is the promotion of products, especially advertising and branding. Marketing practice
tends to be seen as a creative industry, which includes advertising, distribution and selling.

Marketing mix is a deciding factor in formulating marketing techniques for the success of a
particular brand, commodity or company. The components of marketing mix are:

• Product
• Price
• Promotion
• Place
PRODUCT:

Big Bazaar offers the maximum variety for each category of product. The product is the same in
every store in the city but the brand options are more in Big Bazaar. Also, the quantity for each
product is not limited to large packs only. The commodities sold by the retail chain also includes its
“own products” (Private Labels) which get a ready distribution network. The own products of Big
Bazaar include My World fashion magazine which is not available anywhere else. So costs are low
for such products.

Diverse merchandise

Customized

PRICE:

Price is the critical point in a competitive industry. Big Bazaar works on a low cost model. It
considers its discounted price as its USP. There is an average discount of 7-8% on all items in
respect to their MRP. Prices of products are low because it is able to secure stock directly from the
manufacturer. There are huge synergies in terms of bulk purchasing, central warehousing and
transportation. These all factors help this retailer to keep low prices.

Low margin, High sales volumes

Low Interest Financing

Centralized sourcing

Discount pricing

Value pricing

Promotional pricing-Psychological discounting

-Special event pricing (Republic day)

Differentiated pricing-Time pricing

Bundling

PLACE:
Place means the location of the business. Big Bazaar has always worked on low-cost locations. It
targets semi-urban population with its placement. Its strategy is to find a cheap location and it never
goes for hot spots in the city. It relied on promotional activities to make up for unattractive
locations. Another strategy used by Big Bazaar to overcome location disadvantage is use of internet.
It has launched a merchandise retailing website www.futurebazaar.com which targets high-end
customers ready to use credit cards. The promotion of this website is done through advertisement on
Google. The website is put as sponsored link.

Initially identifies future/potential development areas

Acquires such areas at an early phase before the real estate value booms

Designed to look crowded

PROMOTION:

Big Bazaar has huge promotion budgets. The biggest idea behind all advertisements is to make
people do bulk shopping. There are 2 types of promotional strategies of big bazaar. One is the
holistic advertisement which promotes the brand and creates awareness among people. It is not
targeted at promoting each store but only creates an image of Big Bazaar as low-cost shopping
option. The store has advertised through TV, road shows and also started reality show-typed
promotional campaign “The Big Bazaar Challenge.” Promotions like “Sabse Sasta Din” are a very
successful strategy to get footfall. In these products across categories such as apparels, furniture,
electronics, utensils and food products at the lowest possible prices, coupled with attractive
promotional schemes. Some of the most attractive offers being a 20-litre branded microwave oven
with grill for Rs 2,499, jeans and trousers for Rs 199 and HCL laptops for Rs 22,990.

Other type of promotion is the particular store oriented promotion which includes speaking on the
loudspeaker in nearby blocks. Leaflets are given in local newspaper. There are promotional efforts
even inside the store. Buy 2 Get 1 Free types of promotions are very common. Original prices are
cut down and new prices are shown, of which customer takes quick notice. There are loyalty
schemes which reward regular clients. Promotion is also done through co-branded credit cards with
ICICI bank.

Monthly Bachat Offers (Offer available at Big Bazaar stores in Hyderabad):

Big Bazaar is offering monthly bachat offers and some of them are:

- Charminar Basmati Rice + Aadhar Sunflower Oil + 5 kgs of refined sugar, each worth Rs. 1080 -
for Rs. 659 only
- Tilda Khush Long Grain Rice (5 kgs) worth Rs. 440 - for Rs. 159 only
- Fortune Sunflower Oil (5 litres) worth Rs. 450 - for Rs. 262 only
- Cow Ghee worth Rs. 200 - For Rs. 189 only
- Britannia Marie Gold (370 grams) Rs. 25 - Buy 1 get Rs. 3 off or Buy 2 get Rs. 8 off
- Buy a Bournvita pouch pack (500 grams) worth Rs. 124 and get a free Britannia Good Day packet
worth Rs. 12
- Buy Super Cup Tea (1 kg) worth Rs. 240 and get 500 kg worth Rs. 105 free
- Buy Bambino Vermicelli (1 kg) worth Rs. 40 for Rs. 35; and get Bambino Macaroni (180 grams)
worth Rs. 12 free
- Buy onions (1 kg) worth Rs. 17 - for Rs. 14.90 only
- Buy potatoes (1 kg) worth Rs. 9.50 - for Rs. 7.90 only
- Buy Surf Excel (2 kg) worth Rs. 280 and get free Vim bar
- Buy Head & Shoulders Shampoo (400 ml) worth Rs. 215 and get a free Head & Shoulders 90 ml
men's shampoo worth Rs. 69

Future card (3% Discount)

Baby registry and marriage registry-targeted towards married couple, waiting for marriage

Shakti card

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”

OPPURTUNITIES:

 Early Entry in Indian Retail

 Organized retail
 Evolving consumer preferences
 Targeting area more prone to developments
 Global Expansion
 In-Store Experience improvements

THREATS:

 Government policies like complex sales and excise policies.

 Unorganized retail.
 Large Foreign Competitors like Wal-Mart, Metro and Domestic player like Reliance.
 Burgeoning real estate prices which leads to high rentals.
 Economic Conditions
 Lowering Margins

PEST ANALYSIS:

Political and Legal Factors:

 A stable government at the centre will facilitate speedy economic recovery and create an
encouraging investment climate

 Problems of getting subsidy from Octrai and on different taxes like land, water taxes

 Problems of taking over properties and real estate

Economical:

 India, one of the fastest growing economies(6-6.5% GDP growth rate)

 Retail Industry to grow to 300 billion by 2010

 Increase in the percentage contribution of the service sector to GDP

 Increase in the investment on IT with focus on cost minimization

 Socio-Cultural Factors:

 Increase in Nuclear families

 People prefer to shop in local stores with the reasonable prices

 Increase in working women’s proposition

 Life style changes

 Shift in Product and service preferences

 Increase in Young population

Technological:

 Technological development for fast billing and the service

 Better applications of information technology in the modern retail industry, like in supply
chain management, store management, point of sale and customer relationship
management

Competitive Analysis:

 Big Bazaar faces competition from all the quarters of RPG Spencer Super stores,
Reliance fresh stores, Trinethra stores, Food Bazaar. But the main threat and the
strategies of Big Bazaar is around the local neighborhood Kirana Stores because this is
where the big potential for growth lies.

INTERNAL ANALYSIS:
STRENGTHS:

 LOW PRICE/Different discount scheme: The Big Bazaar Outlets sold a variety of products
at prices which is lower than the market price. Almost everything has some kind of discount in Big
Bazaar. Consumers accept the fact that they come from faraway places because it is cheap in Big
Bazaar for bulk shopping. Big Bazaar is able to secure stock directly from the manufacturer which
they are selling as Private label. Big Bazaar gets some extra benefits from manufacturer like display
income, Manufacturer discount and Extra Distributor Discount. There are huge synergies in terms
of bulk purchasing, central warehousing and transportation. Big Bazaar provides discounts ranging
from 6-8%to the market and offers special discounts and offers up to 60% of 1,60,000 products 365
days a year. Price is the basic value propositions at Big Bazaar.
 HUGE DISPLAY AREA, avg 30,000sq/ft: Big Bazaar displays all their grocery and all
other product that customer can touch and feel the quality. They offer self service.
 PRODUCT DIVERSITY: Big Bazaar offers the maximum variety for each category of
product and this is cited by the customers as one of the main reasons why they like shopping at the
Big Bazaar (Range of apparels, accessories, baby accessories, cosmetics, grocery, vegetables,
crockery, dress material, suiting, shirting, footwear, toys, house hold appliances, home textiles,
luggage, linens, saris, large product mix. Stocks about 30000 items in over 20 product categories).
The product is the same in every store in the city but the brand options are more in Big Bazaar.
They have a huge carpet area in an average of 30,000 square feet.
 Huge promotional activities undertaken to ensure enough footfall
 Infrastructure
 Ambience of the Big Bazaar is not like the hypermarket in West, which follows liner layout.
It is not only providing good parking ,AC ambience to create a “ no hassle “shopping experience
but also designed in a way that it provides a traditional bazaar like environment, where the most
Indian feel comfortable.

 The customers trust retail chains with quality of the product. They feel food products of Big
Bazaar will have no adulteration. This quality is not assured in a kirana store.

 High Brand Equity

WEAKNESSES:

 Store unable to meet the growing consumer demand. General Perception of consumer.
 Depend on distribution channel of Brands for products like FMCG.
 Lack of strong supply chain like other big player
 Perception among consumers
CORE COMPETENCIES:

 A choice of more than 20,000 products

 Delivery across more than 1500 cities and towns in India covering around 16,000 pin
codes

 Fast deliveries – tie ups with world leaders in logistics & transportation services

 A dedicated Customer Care helpline for any queries

 Always offering Manufacturer’s guarantee as opposed to Seller’s guarantee, which most

of the other online shopping sites offers

 Talks of Quality and Cost

 Special emphasis on apparels and life style products

Providing interesting discounts

CHALLENGES:

 Waiting time in terms of Billing at Big Bazaar outlets is a concern and more so during the
weekends. And during our personal observation while observing the operations(Though it
was for 3-4 hours which is a short period of time),it was noted that few customers who
had little to purchase, left their trolleys due to long queue at the counter.
Long Queues at the Billing counters

 The store has too many things at the same place. The floor plan has to be structurally laid
out so that merchandising can be efficiently handled and displayed.
 Availability of most exclusive brands under all categories

 Product Uniqueness- Offer merchandise of highest quality

 After Sale Service

 Uniqueness Shopping Experience: The Store personnel should be more friendly and easy
approachable, you should also offer drinking water, lime soda or tea to the customers
once they enter in the store
 Introduce best Promotional campaigns which make sense and also understandable to
attract distant city crowd

Different In-store Promotions

  Introduce Best loyalty programs.

RECOMMENDATIONS:

 Retailing through Internet & web based technologies.

 Big Bazaar needs to focus more on Customer Relationship Management {CRM} and
improved in-store assistance (Building loyal customers base and developing a more
profitable – loyalty cycle).

 Customer Care Centre to guide and counsel about customer loyalty program.

 Training must be provided to sales personnel not only of their counters but for other
functions also. Job rotation and training will enhance their knowledge, job profile and
boost the morale of employees to effectively perform their duties and the responsibilities.

 Stress Buster Exercises must be organized during evenings in sessions as employees have
to stand all throughout the day.

 More hoardings could be placed that could bring awareness to people (at metro station).

 More brands should be included.

 Exchange offers must be made clear as the consumers are often not clear about how to
use them.

 Seating arrangements must be made for customers as well as for employees also.

 Customers usually face problem in billing their purchased goods. Waiting in long queues
forces them to leave certain products thereby loss of sale to Big Bazaar. So billing
counters must be increased and employees at the billing should be given training so that
they could bill the products in much lesser time and the people at the billing stations
should have the information about the special offers and the events that are being
conducted at the store so that the customer inflow can be accordingly handled.
 Care to be taken to maintain proper inventory levels and the varieties and offer the
customer what is needed rather than offering what is available.(Brands like Nike, Adidas,
Reebok,etc)

 Invest in supply chain infrastructure

 Ease distribution – infrastructure creation

 Aggressive expansive plans in II tier cities will open up new world of opportunities

 Added on facilities like Home Delivery and to an extent credit it plays an important role
in Customer Acquisition and retention programs.
 Offer most exclusive brands under all categories