ch8 Bigbazaar

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Presented by;

AnilvermaArvindBharathBharathi

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RAJA OF RETAILING

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BIG BAZAAR PROFILE

nType-hyper market

n Indias first hyper market retailmarket

n Vision-Everything ,Everywhere, Everytime for every Indian

n consumer in the most profitablemanner

n Industry-retail

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Founded by -Kishore Biyaniin 2001.

Headquarter -Jogeshwari,Mumbai,

India. Parent group -

Future Group

Website-www.bigbazaar.com

Tag line- Isse 44


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INTRODUCTION

Big Bazaar was launched inSeptember, 2001

with the opening of its first four stores

in Calcutta,Indore, Bangaloreand

Hyderabad in 22 days.

Within a span of ten years, there are

now 148 Big Bazaar stores in 80 citiesand towns across India.

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http://en.wikipedia.org/wiki/Indorehttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Hyderabad,_Indiahttp://en.wikipedia.org/wiki/Hyderabad,_Indiahttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Indorehttp://en.wikipedia.org/wiki/Indore


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v In 2005, the Indian retail market, at

$250 billion, was the worlds eighth

largest and was projected to grow by

more than 7% annually through

2011.

v Retail sales represented 33.33% of

Indias GDP in 2003. 77


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v In 2003, 82% of Indias retail

sales were made through kirana

stores.

vThe traditional outlets were

successful due to-

Convenient proximity to

consumer homes.88


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v Modern, organized retail super

markets, hyper markets and

department stores represented 0.4%

share of Indias retail sales in 2003.

v Gradually this sector has taken up

momentum.

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n Big Bazaar is designed as an

agglomeration ofbazaars or Indian

markets with clusters offering a widerange of merchandise

Which are: fashion and apparels,

food products,

general merchandise,

furniture, electronics &books

fast food and leisure &entertainment

ti n t ..1010


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n Food Bazaar, a supermarket formatwas incorporated within Big Bazaar in2002 and is now present within everyBig Bazaar as well as in independent

locations.n A typical Big Bazaar is spread across

around 50,000 square feet of retail

space.n While the larger metropolises have

Big Bazaar Family centres measuring

between 75,000 square feet and1111


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n Most of the Big Bazaar stores aremulti-level and are located in stand-alone buildings in city centers as wellas within shopping malls.

nThese stores offer over 200,000 SKUs( Stock Keeping Units) in a widerange of categories led primarily by

fashion and food products. 1212


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1313


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Pantaloon retail (India)limited

PRIL is the parental companyof BIGBAZAAR

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CORE COMPETENCY OF BIG BAZAR


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CORE COMPETENCY OF BIG BAZAR

n A choice of more than 20000

productsn Delivery across more than 1500

cities covering around 16000 pin

codesn A dedicated customer care helpline

for any queries

n Special emphasis on apparels and lifestyle products.

n Fast delivery-tie up with world leader

logistic & 1515


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Evolution of RAJA OF

RETAILING.........???

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2001nThree Big Bazaar stores launched

within a span of 22 days in Kolkata,

Bangalore and Hyderabad.2002

n Big Bazaar - ICICI Bank Card is

launched.n Food Bazaar becomes part of Big

Bazaar with the launch of the first

store in Mumbai at High Streeth nix.1717

Development from 2001 to 2010


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2003

n Big Bazaar enters Tier II cities with

the launch of the store in Nagpurn Big Bazaar welcomes its 10 million-th

customer at its new store in Gurgaon

2004n Big Bazaar wins its first award and

national recognition. Big Bazaar andFood Bazaar awarded.

n A day before Diwali, the store atLower Parel becomes the first totouch Rs 10 million turnover on a

single day 1818


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2005

n Initiates the implementation of SAPand pilots a RFID project at its centralwarehouse in Tarapur.

n Launches a unique shoppingprogram: the Big Bazaar ExchangeOffer, inviting customers to exchangehousehold junk at Big Bazaar.

n Electronic Bazaar and FurnitureBazaar are launched.

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2006

n Big Bazaar launches Shakti, Indias

first credit card program tailored forhousewives.

n Navaras the jewellery store

launched within Big Bazaar stores.2007

n Big Bazaar partners with

Futurebazaar.com to launch India'smost popular shopping portal

n Big Bazaar initiates the Power of Onecampaign to help raise funds for theSave The Children India Fund2020


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2008

n Big Bazaar becomes the fastest

growing hypermarket format in theworld with the launch of its 101st

store within 7 years of launch.

n Big Bazaar dons a new look with afresh new section, Fashion@Big Bazaar

n Big Bazaar joins the league of Indias

Business Super brands.

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2009

n Big Bazaar opens its second store in

Assam at Tinsukian Big Bazaar initiates Maha

Annasantarpane program at its stores in

South India a unique initiative tooffer meals to visitors and supportlocal social organizations.

n Big Bazaar captures almost one-thirdshare in food and grocery productssold through modern retail in India

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http://en.wikipedia.org/wiki/Assamhttp://en.wikipedia.org/wiki/Tinsukiahttp://en.wikipedia.org/wiki/Tinsukiahttp://en.wikipedia.org/wiki/Assam


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2010

n Future Value Retail Limited is formed

as a specialized subsidiary tospearhead the groups value retailbusiness through Big Bazaar, Food

Bazaar and other formats.n Big Bazaar wins CNBC Awaaz Consumer

Awards for the third consecutive year.

n Big Bazaar connects over 30,000 small

and medium Indian manufacturers and

entrepreneurs with around 200 million2323


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Bigbazaar is a public company orpublicly traded company

nThat offers its securities(stock, bonds, etc.) for sale to the general public,

typically through a stock exchange, or

through market makersoperating inover the counter markets.

n This is not to be confused with aGovernment-owned corporationwhich might be mis-described as a

publicly-owned company. 2424
http://en.wikipedia.org/wiki/Security_(finance)http://en.wikipedia.org/wiki/Stockhttp://en.wikipedia.org/wiki/Bond_(finance)http://en.wikipedia.org/wiki/Stock_exchangehttp://en.wikipedia.org/wiki/Market_makershttp://en.wikipedia.org/wiki/Publicly-owned_companyhttp://en.wikipedia.org/wiki/Publicly-owned_companyhttp://en.wikipedia.org/wiki/Market_makershttp://en.wikipedia.org/wiki/Stock_exchangehttp://en.wikipedia.org/wiki/Bond_(finance)http://en.wikipedia.org/wiki/Stockhttp://en.wikipedia.org/wiki/Security_(finance)


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Supply chain for FMCGproducts


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Types of retailers bymarketing strategy:

Department storesn very large stores offering a huge

assortment of "soft" and "hardgoods; often bear a resemblance to acollection of specialty stores.

n A retailer of such store carries

variety of categories and has broadassortment at average price. Theyoffer considerable customer service.

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http://en.wikipedia.org/wiki/Department_storehttp://en.wikipedia.org/wiki/Department_store


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Discount stores

nTend to offer a wide array of productsand services, but they competemainly on price offers extensiveassortment of merchandise ataffordable and cut-rate prices.

n Normally retailers sell less fashion-oriented brands.

Supermarketsn sell mostly food products.

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http://en.wikipedia.org/wiki/Discount_storehttp://en.wikipedia.org/wiki/Supermarkethttp://en.wikipedia.org/wiki/Supermarkethttp://en.wikipedia.org/wiki/Discount_store


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n Warehouse stores- warehouses thatoffer low-cost, often high-quantitygoods piled on pallets or steel

shelves.

n Variety storesor "dollar stores" -these offer extremely low-cost goods,

with limited selection.

n Specialty stores: A typical specialitystore gives attention to a particular

category and provides high level of2929
http://en.wikipedia.org/wiki/Warehouse_storehttp://en.wikipedia.org/wiki/Variety_storehttp://en.wikipedia.org/wiki/Specialty_storehttp://en.wikipedia.org/wiki/Specialty_storehttp://en.wikipedia.org/wiki/Variety_storehttp://en.wikipedia.org/wiki/Warehouse_store


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Hypermarketsn Provides variety and huge volumes of

exclusive merchandise at low

margins. The operating cost iscomparatively less than other retailformats.

Supermarketsn Is a self service store consisting

mainly of grocery and limitedproducts on non food items. Theyma ado t a Hi-Lo or an EDLP3030
http://en.wikipedia.org/wiki/Hypermarkethttp://en.wikipedia.org/wiki/Supermarkethttp://en.wikipedia.org/wiki/Supermarkethttp://en.wikipedia.org/wiki/Hypermarket


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Mallsn Has a range of retail shops at a

single outlet. They endow withproducts, food and entertainmentunder a roof.

E-tailersnThe customer can shop and order

through internet and themerchandise are dropped at the

customer's doorstep. 3131
http://en.wikipedia.org/wiki/Shopping_Mallhttp://en.wikipedia.org/wiki/E-tailerhttp://en.wikipedia.org/wiki/E-tailerhttp://en.wikipedia.org/wiki/E-tailerhttp://en.wikipedia.org/wiki/Shopping_Mall


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n General store

A rural store that supplies the main

needs for the local community;n Convenience stores:

Is essentially found in residential

areas. They provide limited amount ofmerchandise at more than averageprices with a speedy checkout.

This store is ideal for emergency and3232
http://en.wikipedia.org/wiki/General_storehttp://en.wikipedia.org/wiki/Convenience_storehttp://en.wikipedia.org/wiki/Convenience_storehttp://en.wikipedia.org/wiki/General_store


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Vending Machines

This is an automated piece ofequipment wherein customers candrop in the money in machine andacquire the products.

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http://en.wikipedia.org/wiki/Vending_Machinehttp://en.wikipedia.org/wiki/Vending_Machine


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Retail pricingnThe pricing technique used by most

retailers is cost-plus pricing. Thisinvolves adding a markup amount (orpercentage) to the retailer's cost.

Another common technique issuggested retail pricing. This simplyinvolves charging the amount

suggested by the manufacturer and3434
http://en.wikipedia.org/wiki/Pricinghttp://en.wikipedia.org/wiki/Cost-plus_pricinghttp://en.wikipedia.org/wiki/Markup_(business)http://en.wikipedia.org/wiki/Suggested_retail_pricehttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Suggested_retail_pricehttp://en.wikipedia.org/wiki/Markup_(business)http://en.wikipedia.org/wiki/Cost-plus_pricinghttp://en.wikipedia.org/wiki/Pricing


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Customer servicen Customer service is the "sum of acts

and elements that allow consumersto receive what they need or desirefrom your retail establishment."

n It is important for a sales associate togreet the customer and make himselfavailable to help the customer findwhatever he needs.

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http://en.wikipedia.org/wiki/Customer_servicehttp://en.wikipedia.org/wiki/Customer_service


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n When a customer enters the store, itis important that the sales associatedoes everything in his power to make

the customer feel welcomed,important, and make sure he leavethe store satisfied.

n Giving the customer full, undividedattention and helping him find whathe is looking for will contribute to thecustomer's satisfaction.

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lid i


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Consolidation

n Among retailers and retails chains alot of consolidation has appearedover the last couple of decades.

n Between 1988 and 2010, worldwide40'788 mergers & acquisitionswith atotal known value of 2'255 bil. USD

have been announced.

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http://en.wikipedia.org/wiki/Mergers_and_acquisitionshttp://en.wikipedia.org/wiki/Mergers_and_acquisitions


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nThe largest transactions withinvolvement of retailers in/from the

United States have been: Theacquisition ofAlbertson's Inc. for 17bil. USD in 2006.

nThe merger between FederatedDepartment Stores Inc with

May Department Storesvalued at 16.5

bil. USD in 2005n Now Macy's, and the merger between

Kmart Holding Corp and

Sears Roebuck & Cowith a value of3838

Wednesday Bazaar the best
http://en.wikipedia.org/wiki/Albertsons_(SuperValu)http://en.wikipedia.org/wiki/Albertsons_(SuperValu)http://en.wikipedia.org/wiki/The_May_Department_Stores_Companyhttp://en.wikipedia.org/wiki/Macy's,_Inc.http://en.wikipedia.org/wiki/Kmarthttp://en.wikipedia.org/wiki/Searshttp://en.wikipedia.org/wiki/Searshttp://en.wikipedia.org/wiki/Kmarthttp://en.wikipedia.org/wiki/Macy's,_Inc.http://en.wikipedia.org/wiki/The_May_Department_Stores_Companyhttp://en.wikipedia.org/wiki/Albertsons_(SuperValu)http://en.wikipedia.org/wiki/Albertsons_(SuperValu)


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Wednesday Bazaarthe bestsavings in Big Bazaar

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Solid surprises on food items


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Solid surprises on food items -

Every Wednesday

n Big Bazaar has introduced aWednesday Bazaar concept called

Hafte Ka Sabse Sasta Din.

nThe aim, according to the chain, isto give home makers the power to save

the most and even the stores in the city

don a fresh look to make customers feelthat it is their day.

nThe Wednesday Bazaar also offers

clothes, accessories and fashion4040


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n Retail is usually classified by type ofproducts as follows:

n Food products

n Hard goods ("hardline retailers") -appliances, electronics, furniture,sporting goods, etc.

n Soft goods - clothing, apparel, andother fabrics.

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Transfer mechanism


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Transfer mechanism

There are several ways in which consumers

can receive goods from a retailer:

1. Counter service, where goods are out

of reach of buyers and must beobtained from the seller. This type ofretail is common for small expensiveitems (e.g. jewelry) and controlled

items like medicine and liquor.

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2. Delivery

where goods are shipped directly to

consumer's homes or workplaces.

3. Door-to-door

Sales, where the salespersonsometimes travels with the goods forsale.

4. Self-service

where goods may be handled andexamined prior to purchase

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S l t h i


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Sales techniques

Merchandising is one solution companyto design custom store displays thatwill attract more customers in a certaindemographic.

The nation's largest retailers spendmillions every year on in-store

marketing programs that correspond to

seasonal and promotional changes.

A destination storeis one thatcustomers will initiate a trip

specifically to visit, sometimes over a4545


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Customer service

Is the "sum of acts and elements that

allow consumers to receive what they need

or desire from your retail establishment."It is important for a sales associate togreet the customer and make himselfavailable to help the customer find

whatever he needs.

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C td


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Contd

When a customer enters the store, it is

important that the sales associatedoes everything in his power to makethe customer feel welcomed,important, and make sure he leave the

store satisfied.

Giving the customer full, undividedattention and helping him find what he

is looking for will contribute to thecustomer's satisfaction.

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SWOT l i f j f


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SWOT analysis of raja ofretailing

Strengthsn High brand equity

n

State of art infrastructuren Pop promotion

n Variety of stuff under

single roof

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Weaknessn Unable to meet store

n

opening targetsn Falling revenues/sq.ft.

n General perception

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Opportunityn Organized retail (4.16%)

n

Evolving consumer preferencesn In Store Experience

n Improvements

n

New formats and consumption spacen Looking at expansion

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Threatn Competitors domestic and foreign

Government policies,Unorganizedretail

n Economic condition

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Thank you

Documents

ch8 Bigbazaar