Is se sasta aur accha kahin nahi !

FLOW
Background

Situational Analysis
Scenario Analysis Competition SWOT BCG matrix Marketing Mix

Marketing Strategy
Market Research New Strategies

Financials
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BACKGROUND
Industry Founded Parent : Retail : 2001 : Pantaloon Retail India Ltd., Future Group : Mr. Kishore Biyani

Founder

Currently 120 outlets

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INDIA LARGE CONSUMPTION MARKET

18 major languages, 8 major religions, 4000 different castes and communities celebrating 72 festivals, India is the most diverse country

India is a US$ 350 billion consumption market India - set to become US$ 450 billion market by 2015 Share of organized retail is estimated to be 4-5% i.e. US$18-20 billion market.

Expected to expand to 14-18% by 2015 i.e US$ 75 billion

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COMPETITION
Organized sector 5% market share
e.g.- Trent (Star India Bazaar), Vishal MegaMart, RPG (Spencer)
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Unorganized sector 95% market share

e.g. - Local kirana stores

LIFE CYCLE OF BIG BAZAAR

S a l e s

Strengths

Weakness

SWOT
Opportunities Threats
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Strengths
One stop shop Benefit of early entry into the retail industry Cheap goods as no middleman Diversified business Better understanding of customers

Weaknesses
High cost of operation due to large fixed costs Sub standard Quality of goods Very thin margin High attrition rate of employee 9

Opportunities
Organized retail (4-5%) Rural market Evolving consumer preferences Business in smaller cities

Threats
Unorganized retail Lot of competitors coming up to tap the market potential Margin of business reducing all the time
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BIG BAZAAR AT BCG MATRIX

B U S I N E S S G R O W T H R A T E H I G H

?
HIGH LOW
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L O W

RELATIVE POSITION (MARKET SHARE)

MARKETING MIX
Product
Physical Evidence

Price

7 Ps
Process

Place

People

Promotion

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Product Mix
APPARELS FOOD
Formal wear Casual wear Night wear T-shirt Jeans Sarees Dress materials Ethnic wears Party wear Ready to eat Ready to cook Spices Staples International foods Tea & Cofee

HOME & PERSONAL CARE

CHILL STATIONS

Shampoo Detergent Soap Liquid Wash Creams Deodrant Home cleaners Utensils Crockery

Soft drink Packaged juice Milk Items Frozen foods Ice creams

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Product Mix (contd..)

FASHION & JEWELLERY ELECTRONICS BAZAAR FURNITURE BAZAAR OTHERS SERVICES

Television sets Washing Machines Refrigerator Personal Care mBazaar Microwaves Small Appliances Laptops Computer Accessories Kitchen Appliances

Footwear Bazaar Beauty Care Navara Star Parivar Meena Bindre

Living Room Bed Room Kitchen Dinning Rooms Kids Room Paintings Decorative Items

Mr. right Bakery Loot Mart Tulsi Future Money Future Generali

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IN HOUSE BRANDS @ BIG BAZAAR

DJ & C
KORYO FRESH & PURE SARAPOLO

CLEAN MATE
STAR SITARA RENUKA and

SENSEI
CARE MATE MAJITHIA 40 more brands

FEW BRANDS @ BIG BAZAAR

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Price
PRICING OBJECTIVE: Maximum Market Share Value Pricing (EDLP - Every Day Low Pricing) Promotional Pricing
LOW INTEREST FINANCING PSYCHOLOGICAL DISCOUNTING SPECIAL EVENT PRICING (GUDI PADVA)

Differentiated Pricing - TIME PRICING

Bundling
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BUNDLING PSYCHOLOGICAL PRICING

LOW-INTEREST FINANCING

TIME PRICING
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Place
Located in 59 cities Present in almost all the major Indian cities

Number of outlets 120. Located in main city tier I & tier II cities. Area 10,000 sq ft 1,20,000 sq ft.

High street area of city.

Approachable destinations.
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Promotion
Saal ke sabse saste 3 din Wednesday Sabse sasta din

Future Card (3% Discount)

Shakti Card (Women) Advertising (Print Ads, TV Ads, Radio, Hoardings)

Brand Endorsement by M. S. Dhoni

Exchange Offer Junk Swap Offer Point-of-Purchase Promotions

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Promotion (contd..)
Coupon Discount, more of the products at normal price, gift with purchase, competitions and prizes, money back offers and exchange offers, special occasions.

Below the line Promotion

Above the line Promotion

Giving advertisement in news papers, TV, Internet, (own website which gives online shopping services) Partnership with Bigflix, Big FM 92.7

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People
Makes for a customer-friendly atmosphere Employs close to 10,000 people and recruits nearly 500 people every month Well-dressed staff Use of technology like scenario planning for decision making Staff at store to keep baggage Security guards at every gate
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Process
Multiple counters Trolleys to carry the items purchased Proper display / posters of the place

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Physical Evidence
It deals with the final deliverable or the display of written facts. This includes the current system and available facilities.

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Positioning
High Service

Low Price

High Price

Organizational & Customer Value Matrix

Low Service
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Key Features
Optimum Pricing Product Mix Large stock of cheap & local products

Establishment as a Brand
Reduce rental budget
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Primary Research
Age group
15-20 21-25 26-30 30-40 40-45 45+ 4 126 24 2 2 6 2% 77% 15% 1% 1% 4%

Gender

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Primary Research
Household Income
50,000 150,000 150,000300,000 300,001500,000 500,000+ 47 29% 50 30% 49 30% - 18 11%

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Research Findings
How often do you go to malls/supermarket?

2-3 times a week Only on Weekends Monthly As and when requires I have never gone

10 38 24 91 1

6% 23% 15% 55% 1%

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Research Findings
From where do you buy groceries/food items?
Roadside vendors Local Shops Departmental Stores Supermarkets Others 66 5 40% 3% 78 48% Kirana 90 55% 50 30%

*People may select more than one checkbox, so percentages may add up to more than 100%

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Research Findings
Which Supermarkets do you know of?

Hypercity Vishal Megamart D-mart Big bazaar Sahkari bhandar Others

108 74 113 157 75 9

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Research Findings
How often do you go to Big Bazaar?

Weekly

5% 13% 40% 13%

Fortnightly 22 Monthly Once in 6 months Rarely 48 65 21

29%

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Research Findings
Why do you go to Big Bazaar?
Buying Clothes 62 38% and accessories

Buying Electronics Buying Items Buying Furniture

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9%

Food 100

61%

4% 51% 6%

Window shopping 84 Other 10

*People may select more than one checkbox, so percentages may add up to more than 100.

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Research Findings
What do you like about Big Bazaar?
One-Stop Shop Large number 86 of Choices Sabse Sasta 84 51% 52% 78 48%

(reasonable prices)

Efficient
crowd management Others

5%

5%

*People may select more than one checkbox, so percentages may add up to more than 100.

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Research Findings
Which promotional strategies of Big Bazaar do you know of?
Sabse sasta din 120 73% (Wednesday) Sabse saste 4 din 103 63% (26th Jan., 15th Aug. Etc.) Others 14 9% *People may select more than one checkbox, so percentages may add up to more than 100%

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Research Findings
How do you come to know of different promotional offers of Big Bazaar?
Television Ads Newspapers Hoardings Radio Word of Mouth Others 59 124 51 27 53 9 36% 76% 31% 16% 32% 5%

*People may select more than one checkbox, so percentages may add up to more than 100%

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Research Findings
Are you aware of the Online Shopping Store of Big Bazaar?

Yes No

28 136

17% 83%

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Research Findings
If Yes, how often do you shop using this online portal of Big Bazaar

Once a Week Fortnightly Monthly Rarely Never online

3 4 0 12

3% 3% 0% 10% 84%

shopped 98

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Research Findings
Problems faced by the customers at Big Bazaar
Some times the right size is difficult to identify. during the 'Sales' offers when there is a huge crowd The Staff sometimes dont behave properly Assistance regarding searching a particular item is poor Long queues on the payment counters Irritating staff announcements
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Phase 1
1.Indentify Potential cities e.g. Mumbai etc
3.Create awareness through advertisement 4. Provide best facility to customers

2. Implement child care in those 3 centers

Phase 2
1. Check increase in footfall and sales after 6 months. 2. Conduct surveys and if successful then implement in 10 cities.

Phase 3
1. Check performance and sales of new stores.
2. Implement at all the stores.
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Child Care Centre

It will be located near kids section. Help families to shop without worrying about their children.

Assumption
Increase in 0.5% of sales
Advantages: Parents shopping freely Children will demand more toys Disadvantages: Opportunity cost of space

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Child care centre

Monthly Expenditure Ambience Toys Employees(2) Advertisement Total 10000 5000 14000 5000 34000 Yearly 10000 20000 168000 60000 258000

Cost per store Cost for 120 store

Revenue

258000 30960000

Total sales in FY 08-09 Total Expected sales as per current projections Kids section forms 12% of total Sales Sales for .5% increase with the Child care centre Profit

63420000000 70000000000 8400000000 42000000 11040000 42

Onion-Potato Scheme
Purchase for 1,000 INR, and get free 1kg onion and Potato for 52 weeks Offer can be claimed on weekdays only Assumptions 1kg potato, onion - Rs14/kg 25% of the total weekly footfalls come, on weekdays 5% increase in shoppers availing of this offer

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Case1 (Rs.) Average Bill for each new weekly customer Average Cost of 1 kg potato and Onion for 52 weeks Average No of Customers Expenditure Average Cost for 250 customers for 52 weeks Total cost for 156 food bazaar stores per year 375000 58500000 50 1500 250

Case 2 (Rs.) 100 1500 250

Case3 (Rs.) 200 1500 250

375000 58500000

375000 58500000

Revenue Average Sales per week per store Sales per year for 156 food bazaar stores 12500 101400000 25000 202800000 50000 405600000

Profit

4,29,00,000

14,43,00,000

34,71,00,000

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Billing counters
We suggest changing the placement of the billing counters to manage crowd. We can have cash counters at every section and few at exit.
Billing Counter Arrangement
Section ASSUMPTION: By implementing this plan their sales can increase by 0.5% Grocery Apparels Furniture Kids Electronics Kitchenware Exit Total Counters 4 3 1 3

2
3 4 20
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Billing Counter Re-arrangement

Expenditure
Cost of rearrangement of counters per store(existing store) Cost for 120 big bazaar stores 1000000 120000000

Revenue
Total sales in FY 08-09 Total Expected sales as per current projections of the company Sales for .5% increase with the rearrangement 63420000000 70000000000 350000000

Profit

230000000
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CONSOLIDATED FINANCIALS
Particulars COST Child care
Onion-Potato Scheme Billing counters TOTAL COST

Amount (Rs.)

3,09,60,000.00
5,85,00,000.00 12,00,00,000.00

20,94,60,000.00

REVENUE Child care

Onion-Potato Scheme Billing counters TOTAL REVENUE TOTAL PROFIT

4,20,00,000.00 20,28,00,000.00
35,00,00,000.00 59,48,00,000.00

38,53,40,000.00

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Customers enjoying their shopping experience

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