Big Bazaar

Is se satsa aur kahan

BIG BAZAAR-THE ROUTE TO THE INDIAN MASS MARKET

Jo bazaar mein milta hai, who sab yahan milta hai

INTRODUCTION
Introduced by Pantaloon Retail (India) ltd in 2001. First store was opened in Kolkata and then with in 22 days other stores were opened in Hyderabad & Bangalore In 2006-2007, 27new stores were launched in 22 cities. By May 2008, 89 Big Bazaars spread across country.

Pantaloon Retail (India) Ltd. Background

In 1987, was incorporated as Manz Wear Private Limited In 1991, became Public Limited and was renamed Pantaloons Fashions (India) Limited In 1999, was again renamed as Pantaloon Retail (India) Limited 1987-1993, launched three successful brands Pantaloon trouser, Bare denims and John Miller Shirts 1994-1998, the company introduced the concept of the Pantaloon Shopee, an exclusive mens wear retail store In 1997, company moved to large format lifestyle retailing by opening Family Store

THE STRATEGY
To offer value to the customers As the store would offer a large mix of products at a discounted price, the name Big Bazaar was finalised Low Price is the basic value proposition at Big Bazaar Prices of the product were 5 to 25 % lower than the market price.

Selecting the Right Location

They opened stores within the city They took land on lease for a period of 12-20 years. The rentals varied from Rs.30 per square foot to Rs.50 per square foot, depending on the city and location.

The Merchandise Mix

Big Bazaar stocked about 1,30,000 items in over 20 product categories The classification was done in terms of apparel and nonapparel In the first year, apparel accounted for 70% of the off-take. The price ranged from Rs.99 to Rs.799 Non apparel included plastic items, footwear, toys, luggage, and stationery. It accounted for 30% of the off-take in the first year. Also launched Food Bazaar in the first year of operations.

Pricing Strategy
Value Pricing and maintenance of good quality were the key factors influencing the pricing decision. Price that will offer value to the customer was first determined. Bundling pricing is also used to attract the customers

Food Bazaar
Launched in 2002 and it was modeled on Indian mandi. Processed Food & Non Food ( contributed 60%) Dry Staples (contributed 30 %) Wet Staples (contributed 10%) Company Launched: Food Bazaar Masalas Food Bazaar Tea Premium Harvest Pulses While apparel still continues to be the largest selling category at BB, (40%)but the share of the food sale has increased rapidly to 25.74%

Managing The Supply Chain

Distribution is decentralized. Warehouse attached to each store. Initially, the stock turnover was three month which is now down to two month.

Organization Structure of Big Bazaar

Structure is flat in nature Division are apparel, non apparel and the new business division which include gold, footwear and the shop in shops. 1800 people work for Big Bazaar directly. Another 400 people for support and ancillary services. Training program for new employee. Evaluation is done every six month.

Encouraging Loyalty
Launched the Big Bazaar ICICI bank cobranded credit card. On purchase of Rs. 1500 or more, customer has the option of making payment by three EMI with out any charges. For every Rs. 100 spent on shopping, 4 reward points are rewarded Free home delivery to card holders.

CONCLUSION
As most of the retail industries did market research before entering into market same thing was done by big bazaar. Location, market, consumer perception analysis was done was done by big bazaar. In one year much more diversification was done in it. And to retain customers they use many loyalty programs and I.T. techniques were used.