BIG BAZAARCase Analysis

IntroductionAbout Big Bazaar Hyper mart

Chain of development store in India

Out let More than 100 outletsLocated in India

Parent group Future group

Owner Kishore Biyani (CEO)

Founded 2001

Head quarter Jogeswari , Mumbai

Industry Retail

website www.bigbazar.com

Tag line Is se sasta aur achha kahin nahi.

Mission And Vision

VISION

Future Group shall deliver Everything, Everywhere, Every time for Every Indian Consumer in the most profitable manner.

MISSION We share the vision and belief that our customers and stakeholders shall be served only by creating and executing future scenarios in the consumption space leading to economic development.

Positioning And Establishment

Customers Segmentation

Big Bazaar targets higher and upper middle class customers.

The large and growing young working population is a preferred customer segment.

Big Bazaar specifically targets working women and home makers who are the primary decision makers.

*High organization

value*Low

customer value

*High organization

value*High

customer value

*Low organization

value*Low

customer value

*Low organization

value*Low

customer value

Organization value and customer value

Positioning

High service

low service

Low price High price

Swot Analysis

Marketing Mix

Physical Evidence

People

Place Promotion

Price

Product

Process

7 ‘P’

1. Product Mix

APPARELS• Denims & T-Shirts• Fabric &

Cut piece• Formal

Wear• Casual

Wear• Party

Wear• Ethnic

Wear• Accessorie

s• Under

Garments• Night

Wear• Dress

Materials• Sarees

FOOD

• Staples• Ready to eat• Ready to cook• International

Food• Spices• Imported

Bazaar• Tea & Coffee

FARM PRODUCT

• Fruits• Vegetables• Imported

Fruits• Dairy

Products

CHILL STATION

• Soft Drinks• Packaged

Juices• Milk Items• Frozen Foods• Ice Creams

HOME & PERSONAL

CARE

• Shampoos• Detergents• Soaps• Liquid wash• Creams• Deodorants• Home cleaners• Utensils• Plastics• Crockery• Sundries

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

Product Mix continued….

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

CHILD CARE & TOYS

• Kids Wear• Toy Bazaar• Stationary• Child Care

OTHER SERVICES

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

2. Price mix

Value pricing Promotional pricing

Low interest financing Psychological discounting Special event pricing

Differentiated Pricing Time pricing

Bundling

Value Pricing

Big bazaar promises its consumers the lowest available price without coupon clipping, waiting for discount promotions, or comparison shopping

Promotional Pricing

Big bazaar offers financing at low interest rate. The idea of using psychological discounting (at rs. 99 , rs. 49) is used as promotional tool. They also caters on special event pricing. ( close to diwali, gudi padwa etc.)

Differentiated Pricing

Time pricing i.e. difference in rates based on peak and non peak hours or days of shopping is also a one kind of pricing strategy.

3. Place

BIG BAZAR

INDIA Number of out let- more than 100.

Located at main city-tier I & tier city-II;

Area-10,000sq ft- 120000 sqft;

High street area of city; &

Approachable destination.

4. Promotion

•Coupon, discount, more of the product at normal price, gift with purchase, competition, and prizes, money back offer, exchange offer, special occasion.•Big Bazaar, in association with Star India Pvt Ltd, has launched a collection of designer ethnic wear under the brand "Star Parivaar

Below the Line

Promotion

•Giving advertise in news paper, TV. Internet (own website which give online shopping service), •partnership with Bigfilx, Big FM 92.7.

Above the Line

Promotion

5. People

well trained staff; well suited for retail industry.

employees are motivated to think out of the box, to take innovative steps.

employees close to 10000 people and recruits nearly 500 people every month.

Use of technology like scenario planning for decision making.

6. Process

The good dispatch and purchasing area has certain silent feature:

multiple counters with available trolleys to carry item purchased.

Proper display/ posters of the place. Home delivery counters are now opened at many

place.

7. Physical evidence

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

Brand Extension Actually Made And Future Possibilities

Big Bazaar Express

(<40000 sq.ft)

StandardBig Bazaar

(40000 to 80000sq. Ft)

Big BazaarSupercentres(<75000 sq ft)

In JV with Foreign Partner

Big Bazaar

Front endoperation

Back-endOperation

Consumer Insights And Perceptions

Big bazaar is based on 3-C theory of Kishore Biyani. The 3-C determines change, confidence and consumption, and according to this theory, “change and confidence is leading to rise in consumption”,

They divided Indian customers into 3 categories:

India one:• Consuming class, constitutes only 14% of Indian

population.• Upper middle class and most of the customers

have substantial disposable income. • Initial focus of big bazaar

India two:• Serving class which includes people like drivers,

house-hold helps, office peons, etc.• For every India One there are at least India Two

and have 55% of Indian population.

India three:• Struggling class, remaining population of India.• Cannot afford to inspire for better living.• Need cannot be addressed by current business

model.

The potential customers of big bazaar are India One and India Two.

The customer insights were developed by close observation of the target set. The insights that came out were:

The clean and shiny environment of modern retail stores creates the perception that such store are too expensive and exclusive, and are not meant for India Two.

India two finds moves and find a lot of comfort in crowds, they are not individualistic. They prefer to be in queues.

Indian-ness is not about being swadeshi, it’s about believing in Indian ways of doing things.

Advertisements about schemes and offers through local news paper, radio in local language inspires more customers more than the traditional ways.

Hypermarkets in India should be situated in the city unlike western countries where they are situated away from city.

Advertising

Advertising is the essential component of brand building . the advertisement is done through various ways, techniques used are:

Tag-line Print-ads TV-ads Road side hoarding Radio adsFashion shows Brand endorsement by celebrity.

Life Cycle Of Big Bazaar

Factors that shaped the brand during its life cycle are:

Influence of Sarvana Stores located in Theyagraya Nagar in Chennai

Observing customers regularly.

Imbibed entrepreneurial spirit in the organization.

Building on core values.

Strategic Decision Taken To Build Big Bazaar Brand

Real-estate game:

According to kishore biyani, real estate cost should be lesser than 5% of total sales of store in order to provide maximum benefits to customer

The strategic decisions to secure spaces before other retailers join in have resulted in cost saving.

Nurturing relationship:

Kishore Biyani follows the strategy to develop trust and nurture relationship with suppliers. Whoever works with Future Group, either leaves in initial deals or continues forever.

Use of technology, scenario-planning & story telling:

scenario planning and story telling techniques used for store design layout and store-location selection.

Design management

Design-led thinking helped Big Bazaar to achieve ‘customer-first’ objective and ultimately led to financial performance.

Back-end operations, supply chain:

India may not have a modern supply chain but it definitely has a cost-effective one i.e. Pantaloon's supply chain.

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