House Brand

8/2/2019 House Brand

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House brand

An item of merchandise sold under a house brand,

usually at a lower price than an equivalent name-branditem.


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Private labels, often referred to as in-house brands orstore brands, are those that are owned by the retailersthemselves.

For example, Shoppers Stop has several in-housebrands such as STOP, Kashish, LIFE, Vettorio Fratini,Elliza Donatein and Acropolis. Reliance Fresh sellsgrocery such as pulses, rice, tea, noodles under theReliance Food brand and the dairy products such asits curd is sold under the Dairy Life brand.


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A number of store brands: This is especially true forapparel. Shoppers Stop has several in-house brands. Forexample, in the womens wear category itself it has STOP,Kashish, Remika etc. Similarly, in the mens wear category,it has STOP, Life, Vettorio Fratini, and so on. Theseproducts are not differentiated from the other brands interms of store space.

Catered to a number of categories: In these stores, the storebrands were not limited to a particular category. Forexample in Shoppers Stop, it extended from apparel formen, women and children to crockery, kitchenware, andeven furnishings. Similarly, in a Reliance store, it extendedfrom pulses to spices, noodles and even diary products.


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the core strength of the retailers is retailing and not designingand manufacturing products. Salil confirms, We want to remainas core retailers. Therefore, 100% of our manufacturing isoutsourced. There are fairly well-established manufacturers who

work with us. We have been working with them for the pastseven to ten years. So is there any opportunity for entrepreneursin tying up with these players for manufacturing these products?He says, We are open to that. The selection of a manufacturer isa stringent process. We have a huge terms and conditions list

that all our vendors have to agree to and employ. For example, weare against child labor. We have a quality assurance team toevaluate them, the environment in which they work, theirfinancial capability, their commitment, their ability, and theirinterest level; there is a huge list.


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Five years back, our private label brands were around17.5% in terms of sales and today they are almost22.5%a 5% increase. So now we have starteddedicating a bigger space for this. All our brands havegood representation in our stores so that they have avisual impact. The treatment that our in-house brandsget is equal to what other brands would get atShoppers Stop


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The road aheadPrivate labels are slowly becoming the protagonist inthe big Indian retail growth story. Taking cue from theWest, Indian retailers are also churning out newerways to increase their profit marginsone suchinitiative is the introduction of in-house brands. WithIndian customers increasingly accepting these privatelabel brands, they would soon be major contributors tothe profits of Indian retailers.


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Marketing Mix Big BazaarProduct:

Big Bazaar offers a wide range of products which rangefrom apparels, food, farm products, furniture,child care,toys, etc of various brands like Levis, Allen Solly, Pepsi,Coca- Cola, HUL, ITC, P&G, LG, Samsung, Nokia, HP etc.

Big Bazaar also promotes a number of in house brands like: DJ & C

Tasty Treat

Clean Mate

Sensei

Care Mate

Koryo and 44 other brands.


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Pricing: The pricing objective at Big Bazaar is to get Maximum Market Share. Pricingat Big Bazaar is based on the following techniques:

Value Pricing (EDLP Every Day Low pricing): Big Bazaar promisesconsumers the lowest available price without coupon clipping, waiting fordiscount promotions, or comparison shopping.

Promotional Pricing: Big Bazaar offers financing at low interest rate. Theconcept of psychological discounting (Rs. 99, Rs. 49, etc.) is also used to attractcustomers. Big Bazaar also caters on Special Event Pricing (Close to Diwali,Gudi Padva, and Durga Pooja).

Differentiated Pricing: Differentiated pricing i.e. difference in rate based onpeak and non-peak hours or days of shopping is also a pricing technique usedin Indian retail, which is aggressively used by Big Bazaar.

e.g. Wednesday Bazaar

Bundling: It refers to selling combo-packs and offering discount to customers.The combo-packs add value to customer and lead to increased sales. Big Bazaar

lays a lot of importance on bundling. e.g. 3 Good Day family packs at Rs 60(Price of 1 pack = Rs 22) 5kg oil + 5kg rice + 5kg sugar for Rs 599


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Place: The Big Bazaar stores are operational across three formats

hypermarkets spread over 40,000-45,000 sq ft, theExpress format over 15,000-20,000 sq ft and the SuperCenters set up over 1 lakh sq ft.

Currently Big Bazaar operates in over 34 cities and townsacross India with 116 stores. Apart from the Metros thesestores are also doing well in the tier II cities.

These stores are normally located in high traffic areas. BigBazaar aims at starting stores in developing areas to take anearly advantage before the real estate value booms. Mr.Biyani is planning to invest around Rs 350 crore over thenext one year expansion of Big Bazaar.

In order to gain a competitive advantage Big Bazaar has alsolaunched a website www.futurebazaar.com, which helpscustomers to orders products online which will be deliveredto their doorstep. This helps in saving a lot of time of itscustomers.


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Promotion: The various promotion schemes used at Big Bazaar

include: Saal ke sabse saste 3 din Hafte ka sabse sasta din Wednesday bazaar Exchange Offers Junk swap offer Future card(3% discount)

Shakti card Advertisement (print ad, TV ad, radio) Brand endorsement by M.S Dhoni and Asin Big Bazaar has come up with 3 catchy lines written on

hoardings taking on biggies like Westside, Shoppers stopand Lifestyle. They are:

Keep West- aSide. Make a smart choice! Shoppers! Stop. Make a smart choice! Change your Lifestyle. Make a smart choice!


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People:

Well trained staff at stores to help people with theirpurchases

Employ close to 10,000 people and employ around 500more per month.

Well-dressed staff improves the overall appearance ofstore.

Use scenario planning as a tool for quick decisionmaking multiple counters for payment, staff at store tokeep baggage and security guards at every gate, makesfor a customer-friendly atmosphere.


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Process: Big Bazaar places a lot of importance on the process

right from the purchase to the delivery of goods.

When customers enter the stores they can add theproducts they which to purchase in their trolley fromthe racks.

There are multiple counters where bill can be

generated for purchases made. Big Bazaar also provides delivery of products over

purchases of Rs. 1000.


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INTRODUCTION TO RETAIL

INDUSTRY : ORIGIN

MEANING

FASTEST GROWTH


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FOR THE GREAT INDIAN MIDDLE

CLASS CHEAPEST PRICE

(IS SE SASTA AUR KUCH NAHI)

RLC


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Big bazaar vs kiryana storeProduct:

Big bazaar kiryana store

Variety products are limited

Brand option brand option


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PriceBIG BAZAAR KIRYANA STORE

LOW COST BIASED ISSUE

DISCOUNT DISCOUNT

FACTORS HELP TO KEEP LIMITED CHOICE

LOW PRICE


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PROMOTION BIG BAZAAR KIRYANA STORES

Promotional strategies negligiblepromotion

Holistic advertisement no

advertisement

Store oriented


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Profitability:Big bazaar kiryana store

Average SALES Average sales

Net worth margin income

Profit after tax profit after tax

Documents

House Brand