Big Bazaar 3 & 4

Nikhil Naveen Alisha Charu Manveet

Question 3
Do you think having a farm near Big Bazaar is a good idea? Do you think this concept would be operationally viable?

Answer 3
Having a farm near the place of sale is a VERY good idea. This can be attributed to the following factors: Reduction in prices. Reduction in transportation cost. Provision of fresh goods. Reduced dependency on middlemen. Low Inventory due to frequent deliveries. Low Inventory Carrying Cost.

against the concept

The concept is not operationally viable in cities.
Increased costs due to requirement of farming land. In case of cities, since agricultural land is far away, product would not be as fresh, and prices would vary. In case of semi urban areas which have agricultural land nearby, it is viable. In cases like arid and semi arid places, where agricultural practices are not viable. Changes in Industrial Policy of the Government, favours decentralization and dispersal of industries to achieve overall development of the country, would not permit expansion of the exist.

Examples
(+ve)
Mandi GobindGarh (Wheat) Sirhind (Flour) Patiala (PoS)

(-ve)
Jodhpur, Rajasthan

Question 4
Biyani is targeting to occupy 60 percent of shelf space in his stores with in-house brands. Do you think it is a good idea?

Answer 4 (for)
Keeping in-house brands is a good idea as long as demands can be easily met.
Prices can be kept in control. Quality is maintained.

Brand Recognition increased visibility of Brand lowered marketing, advertising & promotion costs. Market Capture. Reduced dependency on external factors. Product Line Extension

Answer 4 (against)
Keeping in-house brands is not a good idea since it is an overhead for the Company
Increased overhead expenses for production. Extra space needed to accommodate over and above existing brands. Increased labor costs, inventory, maintenance etc.

Conclusion
The work Biyani is doing via Big Bazaar, Food Bazaar etc is commendable for the Indian Economy. It is a recognized & established brand in the Indian Market. Even after entry of competitors, its brand image would be maintained since its an old player. Loyalty of customers would also play a large part in its popularity.