Big Bazaar Final
- 1. Welcome to the case study presentation by Group-VI Retail Management
- 2. Roll No:36 Nirav V. Roll No:34 Niraj T. Roll No:25 Payal Sevak Roll No:12 Nishant M. Roll No:4 Retail Management Subject: Bina Desai Submitted by: 09-11-2009 Submitted on: Prof. Rohita Dwivedi Submitted to:
- 3. Get Set GO…
- 4. Any activity that involves a sale to an individual customer. Interface between the producer and the individual consumer buying for personal consumption. What is Retailing? Retail Organized Unorganized
- 5. Indian Retail Market In GRDI Index 3 rd consecutive year we are in most attractive market category. In GCCI survey we have got most optimistic consumers with High financial confidence. Contributes 10% to GDP & 8 % of EMP. Higher disposable income & liquidity & High exposure to Media & Brands awareness are reasons for growth
- 6. Indian Retail Formats Shopping Malls Branded Stores Convenient Stores Hyper Market Discount Stores Specialty Stores Departmental Stores Super Market
- 7. Size of Indian Retail 194% 2,30,000 cr 78,300 cr Size of Organized retail (in Rs.) 71% 12 7 Share of Organized retail 18% 416 353 Size of retail in India (in $billion) Percentage Change 2010 (estimated) 2008
- 8. Market Opportunities In India Fastest Growing Economy. Young India. Potential untapped market. Abundant availability of skilled labor. Low cost operation. Sourcing hub for the world. Increasing technology adoption. Online retailing. Rural retailing. Resplendent luxury market. Leisure & Entertainment. Cashing on transit channels. SEZs. Tourism development.
- 10. Man Behind Future Group Mr. Kishore Biyani : The King of Retail “ Garv se kaho hum kanjus hai!!!!” Ernst & Young Entrepreneur Year 2006 in the Service Sector. Lakshmipat Singhania– IIM Lucknow Young Business Leaders Award, 2006. CNBC First Generation Entrepreneur Year 2006.
- 11. Values Leading to purposeful thinking Introspection To respect every individual and be humble in our conduct. Respect & Humility To be a leader, both in thought & business Leadership Confidence in ourselves Indian ness
- 12. To be open & receptive to new ideas, knowledge & information Openness To respect & understand the universal laws of nature Flow To be flexible & adaptable, to meet challenges Adaptability In thoughts, business & actions Simplicity & Positivity To build long term relationships Valuing & Nurturing relationships
- 13. Pantaloons Shoppe was started. 1994 came up with IPO Equity Shares of Rs 10 each was sub divided into five equity shares of RS. 2 each , approved in AGM on No.17, 2006 1992 Pantaloon’s started its Operation Company was then incorporated as Menz Wear Private Ltd. Pantaloons trouser, first formal trouser brand launched in India. 1987
- 14. Big Bazaar, India’s first hypermarket chain was launched 2001 came up with Insurance Business. 2007 Future Capital Holdings, financial arm launched Real Estate funds, “Kshitiz” & “Horizon” and Private Equity Fund “Indivision”. 2006 Food Bazaar, the supermarket was launched. 2002
- 15. Best managed company in India (Mid-cap) Best value Retail store, Best Retail Destination & Best Food & Grocery Store by Won Images Retail Year 2006 International retailer. Emerging Market retailer. Best employer in India. (Rank 14 th in the Hewitt Best Employers 2007 survey) Year 2007
- 16. Retail Brands Consumer Finance Insurance Capital Ventures Media Logistics Leisure & Entertainment Shopping Malls Knowledge Services E-Tailing
- 17. Companies Pantaloon Retail (India) Ltd. Home Solutions Retails India Ltd. Future Brands Ltd. Future Media (India) Ltd. Future Logistics Solutions Ltd. Convergem Communications (India) Ltd. Pantaloon Food Product (India) Ltd. Future Knowledge Services Ltd. Future Capital Holdings Ltd. Future Generali India Insurance Company Ltd. Future Generali India Life Insurance Company Ltd. Future bazaar India Ltd. Weavette Texstyles Ltd. Staples Future Office Products Private Ltd. Pan India Food Solutions Private Ltd. Talwalkars Pantaloon Fitness Private Ltd. ConvergeM Indus League Clothing Etam Future Fashions Ltd. Galaxy Entertainment Corporation Ltd. Future Venture India Ltd. Foot Mart retail
- 19. Having been the pioneers in the retailing space in India, our mature formats are household names in more than 63 cities and 65 rural centers through our rural retailing format, Aadhar. These formats cover over 11 million square feet of retail space and attract around 200 million customer footfalls in a year. While Pantaloons and Central cater to the lifestyle segment of the market, Big Bazaar and Brand Factory cater to the value segment. Together, these formats capture a large chunk of the consumption wallet of a vast majority of the Indian consuming class Mature Retail Fascias
- 20. Started in 2006, the home retailing business is among the fastest growing retail chains. Home Town, spread over more than 125,000 square feet each, offers customer a one-stop destination for all products and services related to home building and home improvement. EZone and Collection I, cater to the lifestyle needs in electronics, furnishing and furniture segments. Electronic Bazaar and Furniture Bazaar caters to the value segment. Along with 7 Home Town stores, this network operates over 200 stores across the country. Home Retailing
- 21. Future Group’s Incubation and Innovation Cell works on converting an idea, into a prototype and then into a viable business proposition. The Cell has been instrumental in creating new retail formats in emerging segments like campus fashion, ethnicwear, books and music and health, beauty and wellness. Futurebazaar.com, our etailing portal is India’s largest shopping portal. While Planet Sports caters to the sportswear segment, Depot is the books and music chain and Top 10 is the campus fashion chain. KB’s Fairprice is a low-frills retail network targeted at lower income groups. 110 stores operational in Delhi, Mumbai and Bangalore. New Fascias
- 22. Future Group partners with a number of reputed foreign and Indian companies in specialty retailing segment. US-based $20 bn Staples Inc, is our partner for office stationery retailing and first store opened in Bangalore Middle East based Axiom Communications is our partner in the communications products and services space. The group operates along with Blue Foods leading restaurant chains like Copper Chimney, Bombay Blues, Spaghetti Kitchen and The Spoon Our Indian partners include, restaurant chain, Blue Food, footwear manufacturer, Liberty Shoes and gyms and health center operator, Talwalkars’ Retail Partnerships
- 23. Investment Advisory & Consumer Finance
- 24. Future Capital Holdings, our financial services arm provides investment advisory services to assets of over $1.5 billion Kshitij and Horizon are real estate funds focusing on development of consumption centers, shopping malls and market cities. Indivision, a private equity fund which invests in consumer-focused brands and companies Indus Hotel Ventures invests in the hospitality sector Investment Advisory
- 25. Future Money serves as one-stop destination for all credit and investment products and services. With over 140 branches located within consumption centers, Future Money leverages the group’s retail presence for selling financial products Future Card, a loyalty-cum-credit card is the latest product offering from the group. Applicable at over 30 retail chains, the ‘Kamai Card’ is set to become the largest loyalty program in the country. Partnered with ICICI Bank, the card offers a single interface for customers for the group’s extensive retail network Consumer Finance
- 26. Life and Non-Life Insurance
- 27. Joint venture with Italy-based Generali Group has launched life and non-life insurance products to be sold within consumption centers. Generali ranks 31st in Fortune 500 and is among the three largest insurers in Europe. Mallassurance introduced as an innovative and low-cost alternative to increase insurance penetration Life and Non-life products available through 50 branches and over 100 Future Group retail outlets. Expected to sell over 1 million insurance policies within a year of its launch Insurance
- 28. Brand Development & IPR
- 29. Future Brands, a brand and IPR development specialist company focuses on nurturing and developing 18 national brands A large portion of retail sales is captured by these brands present in segments like fashion, food, home and personal care and consumer electronics Koryo and Sensei, the group’s consumer electronic brands account for around 20% of total sales in the segment. The company is led by a specialist team of media and marketing professionals led by Mr. Santosh Desai. Brands
- 31. Retail and ambient media provides one of the fastest growing media opportunities in the country The group operates a 1000 screen retail television network offering advertisers 3 channel options My World, a retail consumer magazine has a paid circulation of over 50,000 copies Operates a startegic partnership with Inox Theatres and BPCL petrol pumps. Future Media counts over 200 companies as its clients including Hindustan Unilever, Intel, ICICI Bank, Kingfisher etc Media
- 32. FLSL provides solutions to group companies and selective vendors covering in the areas of integrated, end-to-end SCM, warehousing and distribution Multi-Modal transportation & Container Freight Station Future Ventures India Limited is engaged in partnering with and promoting entrepreneurship in consumer-focused initiatives. The company has filed a DRHP and expects to have a corpus fund of over Rs 4000 crore Future Knowledge Services is a retail technology service provider for high quality, low cost services model catering to the entire retail value chain. It will provide consolidated Technology Support, Business Process Management and Contact Centre for all group companies and partners. Its key partners include Wipro, SAP and Cisco
- 33. Facts & Figures 30,000 employees Presence in 128 cities & rural centers Group turnover in 2008: $ 1.75 billion Pantaloon Retail & future Capital holdings listed on Indian Stock Exchange Key private equity investors in group companies & funds include,Sherpalo, ICICI vent, Kotak Mahindra PE, Och-Ziff, Capital & Goldman Sachs & WPP Strengths Retail business from the nucleus & the provides an exten. reach & easy access to low-cost Customer acquisition. A strong understanding & knowledge base on Indian consumer preferences, habits & Aspirations Experience in building some Of the most respected retail brands in the country. A proven track record of developing strong partnership models on a Win – Win – Win Basic
- 35. Is se sasta aur accha kahin nahi Tagline www.bigbazzar.com Web site Retail Industry Jogeshwari, Mumbai Head Quarter 2001 Founded Kishore Biyani (CEO) Owner Future Group Parent Group 140 outlets Outlet Hyper mart chain in India Big bazaar
- 36. Customer Segmentation All middle class customers r target customers Large & growing young population. Specifically targets working women & home makers who are primary decision makers Currently focused to tier 1 & 2 but 3 years down the line tier 3 will also be added
- 38. Porter’s Five Forces Model Industry Competitiveness Bargaining power of buyer Threat of the entrants Bargaining power of supplier Rivalry among competitors Threat of Substitutes
- 39. Analysis FDI policy not favorable for international players. Domestic conglomerates looking to start retail chain. International players looking to foray India. Threats of the entrants Reliance retail Vishal Retails Bharti & Wall mart etc. Rivalry among competitors Analysis Five Forces
- 40. Unorganized retail. Threat of substitutes Consumers are price sensitive. Availability of more choice. Bargaining power of buyer The bargaining power of supplier varies depending upon the target segment. The unorganized sector has a dominant position. There were few players who have a slight edge over others on account of being established players & enjoying brand distinction. Bargaining power of the supplier
- 41. BCG Matrix H I G H L O W M A R K E T G R O W T H HIGH LOW MARKET SHARE
- 42. SWOT Analysis Strength High brand equity State of the art infrastructure EDLP POP promotions Variety of stuff under one roof Weakness Unable to meet store opening targets Rev declining / sq ft. General perception Opportunities Emerging concept of Organized retail. Evolving customer preference . Weak competition Reliance & Vishal Retail Threat Govt. policy Other formats – Super market & Specialty stores With upcoming MNC Retailers Unorganized retailers
- 43. Demand Planning A Future Group Idea Forecasting Link. model- forecating.doc Improved product margins. Reduced inventory throughout the business. Increased demand visibility across your entire business. Increased collaboration among functional teams. Increased order fill rates & on time delivery. Reduced inventory carrying cost. Improved product configuration management Flexible process to manage historical data cleansing & accounting for future promotion. Increased user confidence. A sustainable and repeatable knowledge bas
- 45. Marketing Mix Physical Evidence People Place Promotion Price Product Process 7 ‘P’
- 46. Product Mix
- 48. 11/17/09 Big Bazaar XIDAS, Jabalpur ELECTRONIC BAZAAR Television sets Washing Machines Refrigerator Personal Care mBazaar Microwaves Small Appliances Laptops Computer Accessories Kitchen Appliances FASHION & JEWELLERY Footwear Bazaar Beauty Care Navara Star Parivar Meena Bindre FURNITURE BAZAAR Living Room Bed Room Kitchen Dinning Rooms Kids Room Been Bags Paintings Decorative Items CHILD CARE & TOYS Kids Wear Toy Bazaar Stationary Child Care OTHER SERVICES Mr. right Bakery Loot Mart Tulsi Future Money Future Generally
- 50. Pvt Labels Following a Wall mart model Recent AGM focused more on developing Pvt labels. Placing tactfully in stores Guarantying quality with replacement Taking a advantage of price conscious Indian consumer Provide a sustainable advantage DJ & C Koryo SENSEI CLEAN MATE TASTY TREAT FRESH & PURE MAJITHIA RENUKA CARE MATE
- 51. Pricing Value Pricing Promotional Pricing Differential Pricing Bundling Low Interest Financing Psychological Discount Special Event Pricing Time Pricing
- 52. Value Pricing
- 56. Promotion
- 57. PROMOTION
- 60. Highlights Mahabachat - 2008 The most successful & memorable mega deals built on Mahabharata as creative reference.
- 61. Back Ground 2006: 53 crores worth sales in just 4 days.18.5 lakh customer entry. All this from just 30 Big Bazaars ! 2007: 118 crores & 3.5 million customer entry from 70 stores in 5 days !! 2008: The most successful & memorable mega deals built on Mahabharata as creative reference. Sales clocked a whopping 189 crores 37 cr worth of apparel sold 55 cr worth of food sales 25 cr worth of electronics sold 13 cr worth of mobiles sold
- 62. Overall Numbers 107% 18925 Total 131% 5866 West 110% 5143 South 104% 3450 North 95% 1509 Gujarat 80% 2957 East % Achieved Sales Zone
- 63. Target:2009 272 cr in 5 days through 120 stores !
- 64. Challenge To ensure each & everyone comes…& shops to their hearts content !!
- 65. Satellite TV Press Radio FM Channels Internet Outdoor India-1
- 66. Press FM Channels + Vividh Bharti Cable Bus Passengers Back Seats Outdoor India-2
- 70. BTL & In store activities Preview for Corporate Offices OB activity On Vividh Bharti Testimonial on Radio Maha Bachat
- 71. OB Activity on Television 15 sec vignettes showcasing excitement at store, sound bytes by customers, talk about offers etc Much like public reaction to movies These will run on news channel throughout the day They will add credibility & believability to our campaign
- 72. Breaking News…!! News reader announcing “ Aaj se Mahabachat shuru ho gaya hai…” Never before idea – It will be part of the news for the day !!
- 73. BTL & In store Activities VM communication:Clear & clutter free from any other promo Leaflet Paper insertions, Catchment Distribution In-store announcements, radio jingle and TV spots Mobile Van Innovations SMS activity, Chain mails, Employee preview Cinema Slides (RTC & L.B.Nagar) Trolley Innovations Auto Back Panels
- 74. Innovations
- 76. The Maharathi’s
- 77. Place 120 outlets in India Located at high street areas of the main cities Approachable destinations
- 78. First Mover Advantage Kshitij Horizon negotiates & develops mall in majority cases Biggest invesment & risk given a competitive advantage Located in High Traffic area Designed to look crowded E-tailing To overcome Location disadvantage launched www.futurebazzar.com High end customer with ready to use credit card Low cost operation. Internet usage is increasing day by day
- 79. People Well trained staff Appearance; Empowered individual; Encouraged to think out of box
- 81. Process
- 82. Positioning 11/17/09 Big Bazaar XIDAS, Jabalpur High service low service Low price High price
- 83. Zonal CFO CEO Zonal Manager Zonal Commercial Manager Store Manager Assistant Store Manager Team Member Team Leader Store Manager Dept Manager Dept Manager Assistant Manager Assistant Manager Commercial Team
- 84. Supply Chain Management Link supply.doc
- 87. Forces & Trends Impact The Future Supply Chain Driving the value chain Managing complexity through transparency, sustainability & the scarcity of natural resources Redesigning Supply chains Regulatory, Ecological, Demographic New technologies, new rules, new compliancy Urbanization Explosion of information Consumer
- 90. PROFITABILITY
- 93. CONT…
- 94. Feedback Form
- 95. Cont….
- 96. Comparison with peers Comparison to peers.doc Comparison to peers.doc
- 97. Suggestions Offer a credit – Tie up with Banks More aggressive in Veg and Fruit item pricing Improve the quality in Own brands – Specially Electronics Reduce IT related Errors – Proper Billing, Barcode on all items
- 98. Bibliography Futuregroup.com Moneycontrol.com Bse.com Google.com Economictimes.com Kpmg.com Mapsofindia.com Atkearney.com