Is se sasta aur accha kahin nahi !

Background

Situational Analysis• Scenario Analysis• Competition• SWOT• BCG matrix• Marketing Mix

Marketing Strategy• Market Research• New Strategies

Financials

FLOW

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BACKGROUND

• Industry : Retail • Founded : 2001 • Parent : Pantaloon Retail India Ltd.,

Future Group• Founder : Mr. Kishore Biyani

Currently 120 outlets

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INDIA – LARGE CONSUMPTION MARKET

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

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

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COMPETITION

Unorganized sector – 95% market share

e.g. - Local kirana stores

Organized sector - 5% market share

e.g.- Trent (Star India Bazaar), Vishal Mega-Mart, RPG (Spencer)

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Sales

LIFE CYCLE OF BIG BAZAAR

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Strengths

Weakness

Opportunities Threats

SWOT

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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

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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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?

BUSINESS

GROWTH

RATE

HIGH

LOW

LOWHIGH

RELATIVE POSITION (MARKET SHARE)

BIG BAZAAR AT BCG MATRIX

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7 P’s

Price

Place

Product

PromotionPeople

Process

Physical Evidence

MARKETING MIX

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APPARELS

• Formal wear• Casual wear• Night wear• T-shirt• Jeans• Sarees• Dress

materials• Ethnic wears• Party wear

FOOD

• 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

Product Mix

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ELECTRONICS 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 OTHERS SERVICES

• Mr. right • Bakery • Loot Mart • Tulsi • Future

Money • Future

Generali

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

Product Mix (contd..)

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IN HOUSE BRANDS @ BIG BAZAAR

DJ & C CLEAN MATE SENSEI

KORYO STAR SITARA CARE MATE

FRESH & PURE RENUKA MAJITHIA

SARAPOLO and 40 more brands

FEW BRANDS @ BIG BAZAAR

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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

Price

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PSYCHOLOGICAL PRICING

BUNDLING

TIME PRICING

LOW-INTEREST FINANCING 17

· 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.

Place

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· ‘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

Promotion

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• 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

• Giving advertisement in news papers, TV, Internet, (own website which gives online shopping services)

• Partnership with Bigflix, Big FM 92.7Above the line

Promotion

Promotion (contd..)

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· 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

People

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· Multiple counters· Trolleys to carry the items purchased· Proper display / posters of the place

Process

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

Physical Evidence

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High Price

Positioning

Low Price

Low Service

High Service

24Organizational &Customer Value Matrix

Key Features

• Optimum Pricing

• Product Mix

• Large stock of cheap & local products

• Establishment as a Brand

• Reduce rental budget25

Primary Research

15-20 4 2%

21-25 126 77%

26-30 24 15%

30-40 2 1%

40-45 2 1%

45+ 6 4%

Age group

Gender

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Primary ResearchHousehold Income

50,000 -

150,000

18 11%

150,000-

300,000

49 30%

300,001-

500,000

50 30%

500,000+ 47 29%

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Research FindingsHow often do you go to malls/supermarket?

2-3 times a week 10 6%

Only on Weekends 38 23%

Monthly 24 15%

As and when requires 91 55%

I have never gone 1 1%

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Research FindingsFrom where do you buy groceries/food items?

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Roadside

vendors

50 30%

Local Kirana

Shops

90 55%

Departmental

Stores

78 48%

Supermarkets 66 40%

Others 5 3%

*People may select more than one checkbox, so

percentages may add up to more than 100%

Research FindingsWhich Supermarkets do you know of?

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Hypercity 108

Vishal Megamart 74

D-mart 113

Big bazaar 157

Sahkari bhandar 75

Others 9

Research FindingsHow often do you go to Big Bazaar?

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Weekly 8 5%

Fortnightly 22 13%

Monthly 65 40%

Once in 6

months

21 13%

Rarely 48 29%

Research FindingsWhy do you go to Big Bazaar?

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Buying Clothes

and accessories

62 38%

Buying

Electronics

14 9%

Buying Food

Items

100 61%

Buying Furniture 7 4%

Window shopping 84 51%

Other 10 6%

*People may select more than one checkbox, so

percentages may add up to more than 100.

Research FindingsWhat do you like about Big Bazaar?

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One-Stop Shop

78 48%

Large number of Choices

86 52%

Sabse Sasta (reasonable prices)

84 51%

Efficient crowd management

8 5%

Others 8 5%*People may select more than one checkbox, so percentages may add up to more than 100.

Research FindingsWhich promotional strategies of Big Bazaar do you know of?

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Sabse sasta din (Wednesday)

120 73%

Sabse saste 4 din (26th Jan., 15th Aug. Etc.)

103 63%

Others 14 9% *People may select more than one checkbox, so percentages may add up to more than 100%

Research FindingsHow do you come to know of different promotional offers of Big Bazaar?

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Television Ads 59 36%

Newspapers 124 76%

Hoardings 51 31%

Radio 27 16%

Word of Mouth 53 32%

Others 9 5%

*People may select more than one checkbox, so percentages

may add up to more than 100%

Research FindingsAre you aware of the Online Shopping Store of Big Bazaar?

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Yes 28 17%

No 136 83%

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

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Once a Week 3 3%

Fortnightly 4 3%

Monthly 0 0%

Rarely 12 10%

Never shopped

online

98 84%

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 don’t behave properly– Assistance regarding searching a particular item is

poor– Long queues on the payment counters– Irritating staff announcements

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Child Care Centre

Onion-Potato Scheme

Billing counters

NEW

STR

ATEG

IES

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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 centreMonthly Yearly

Expenditure Ambience 10000 10000Toys 5000 20000Employees(2) 14000 168000Advertisement 5000 60000Total 34000 258000 Cost per store 258000Cost for 120 store 30960000 Revenue Total sales in FY 08-09 63420000000Total Expected sales as per current projections 70000000000Kids section forms 12% of total Sales 8400000000Sales for .5% increase with the Child care centre 42000000 Profit 1104000042

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.) Case 2 (Rs.) Case3 (Rs.)

Average Bill for each new weekly customer 50 100 200

Average Cost of 1 kg potato and Onion for 52 weeks 1500 1500 1500

Average No of Customers 250 250 250

Expenditure

Average Cost for 250 customers for 52 weeks 375000 375000 375000

Total cost for 156 food bazaar stores per year 58500000 58500000 58500000

Revenue

Average Sales per week per store 12500 25000 50000

Sales per year for 156 food bazaar stores 101400000 202800000 405600000

Profit 4,29,00,000 14,43,00,000 34,71,00,00044

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 Counters

Grocery 4

Apparels 3

Furniture 1

Kids 3

Electronics 2

Kitchenware 3

Exit 4

Total 20

ASSUMPTION:

By implementing this plantheir sales can increase by 0.5%

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Billing Counter Re-arrangementExpenditure

Cost of rearrangement of counters per store(existing store) 1000000

Cost for 120 big bazaar stores 120000000

Revenue

Total sales in FY 08-09 63420000000

Total Expected sales as per current projections of the company 70000000000

Sales for .5% increase with the rearrangement 350000000

Profit 230000000

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CONSOLIDATED FINANCIALSParticulars Amount (Rs.)

COST

Child care 3,09,60,000.00

Onion-Potato Scheme 5,85,00,000.00

Billing counters 12,00,00,000.00TOTAL COST 20,94,60,000.00

REVENUE

Child care 4,20,00,000.00Onion-Potato Scheme

20,28,00,000.00Billing counters 35,00,00,000.00TOTAL REVENUE 59,48,00,000.00

TOTAL PROFIT 38,53,40,000.0047

Customers enjoying their shopping experience48

THANK YOU&

Happy Holi

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