Project on Big bazaar
- 1. Project in Retail Management Big Bazaar Presented By: GELIVI KIRAN KUMAR HYDERABAD 9391051217 ID-S082000000002
- 2. …………………….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.
- 3. 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. HIERARCHY FUTURE GROUP CAPITAL BRANDS SPACE RETAILS MEDIA LOGISTICS LIFE STYLES VALUE RETAILING RETAILING VENTURE FASHION STATION OPERATING PARAMETERS TO UNDERSTAND OVERALL STORE PERFORMANCE (As per our Observations in the Store): Slogan: Is se sasta aur accha kahin nahin
- 4. 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:
- 5. 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
- 6. 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!
- 7. Big Bazaar Wholesale Club: Now Save, Even more:
- 8. 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
- 9. 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:
- 10. 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 -
- 11. 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
- 12. 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:
- 13. 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:
- 14. 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:
- 15. 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.
- 16. 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.
- 17. 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