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From Praneet Reddy
We have a store opening virtually every fortnight; I have lost count now of how many I have opened."
- Kishore BiyaniBig Bazaar: Brand’s Identity, Personality & Symbolism
Big Bazaar
is Indian personification of retail. It’s like an Indian
bazaar
or
mandi
or
mela
, theenvironment created by traders to give shoppers a sense of moment. Its personality is of being an entityaway from fancy or pretty and being authentically "no-frills". Kishore Biyani never hired any foreignconsultant for Big Bazaar which is evident from Indian-specific personality of the brand. The brand’spersonality is self-explanatory by its tag-line only. This statement places Big Bazaar at the top of customer’s mind. It reflects that entrepreneurship and simplicity are the essence of character of BigBazaar. To use predatory pricing is not in the personality of Big Bazaar, they never sell goods below theprice they have purchased it. Big Bazaar, the "Indian Wal-Mart", is the modern Indian family's favoritestore. Big Bazaar symbolizes modern retail, the business which isn’t looked up to in our country, is now inthe eyes of many multi-national biggies. Big Bazaar has shown a robust growth in recent years
.
Demerits of Marketing a Commodity Market
Brands evolve from ‘unbranded commodities’ to references, where the name is used for identification.This is also evident from the Goodyear’s (1996) chronological brand categorization
.There is lack of differentiation if marketing of commodity is done. Commodities and differentiated productsare the two ends of the product spectrum. Each unit of a commodity is exactly like every other unit. Aproduct is a commodity when all units of production are identical, regardless of who produces them.Commodities tend to be raw materials like corn, wheat, copper, crude oil, etc. The stone marble is minedand sold by many companies in Rajasthan; it’s like an unbranded commodity, where each producer isselling identical product.People that produce commodities are referred to as "price-takers". This means that an individual producer has no control over his/her price. On the other hand, people who are owners of brands or differentiatedproducts are "price-makers". Producer of a differentiated product creates a separate market for his/her individual product.
Value of Branding
Branding plays a crucial role for all the products and services. A successful brand is an identifiableproduct or service, and buyers or users perceive values in it which matches their needs.There are certain advantages of branding. They are: -
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Product dies but a good brand never dies:
The first car T-model is no more but the brand 'FORD' isstill alive. 'Pears' soap that was launched somewhere in the end of 1800 is still alive although they havechanged the product. Even they are looking for line extension but basic brand names are the same.
Sales or market share:
A brand generates familiarity and trust, and hence, leads to greater sales.Branded products have an edge over unbranded products.
Premium price:
Brands generate trust, a brand manager can charge extra price and people pay for that trust.
Differentiation:
Creating a brand is nothing but creating a strong association. This association clearlydifferentiates the branded product from the rest.According to brand evolution model developed by Kunde (2000)
,as the value of brandbecomes stronger and more relevant to customers, the brand becomes more involving, and thus,managers need to make their brand values more relevant to increase customer’s involvement. This isexplained by religion model also. The model distinguishes 5 types of brands: -
Product Brand:
Products without any form of added value connected to the generic element.
Concept Brand:
Brands that are driven by emotional values - as opposed to product characteristics.
Corporate Concept Brand:
Brands that merge with the company and present themselves in asustained and consistent way.
Brand Culture Brand:
Brands that are so strong that they - in the eyes of the consumer - havebecome equated with the function they represent.
Brand Religion Brand:
The ultimate brand position is that of brands that - in the eyes of the consumer - have become a "must", a faith to which they profess.
Big Bazaar: Positioning & Establishment
Big Bazaar has established itself in the first quadrant of Organization Value and Customer Value Matrix
.The SWOT Analysis
of current strategy of Big Bazaar elaborates the corecompetencies and areas of improvement. The key features that have shaped in establishing of brandincludes: -
Big Bazaar ensures that no other
kirana
store / departmental store are offering considerable discountcompared to its own price. This helped Big Bazaar in being the "value for money" store.
Big Bazaar scores high on product mix as compared to
kirana
store.
Cheap and local products are heavily stocked in Big Bazaar which make it easier to attract lower middle class category of customers.Promotion of
kirana
is rare event but Big Bazaar used this channel efficiently to establish itself asnational brand.
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Customer loyalty resulting in high up sell, i.e., selling to existing customers.
Big Bazaar refrains from high-end locations for business which reduces its rental budget and providescompetitive advantage over competitors. Kishore Biyani has taken "early movers advantage" in manyretail spaces.
7P Analysis of Big Bazaar
7P Marketing Mix is more useful for services industries and knowledge intensive industries. Successfulmarketing depends on number of key issues. The seven keys issues are explained as: -
Product
Big Bazaar offers a wide range of products which range from apparels, food, farm products, furniture,child care, toys, etc.
.Products of all the major brands are available at Big Bazaar
. Also, there are many in house brands promoted by Big Bazaar. Big Bazaar sold over 300,000 pairs of jeans, 50,000 DVD-players and 25,000 microwave-ovens. In all, the fashion, electronics and travelsegments made up about 70% of sales. Last year, these categories made up only about 60%.
Price
The tag-line is
"Is se sasta aur accha aur kahin nahi"
. They work on the model of economics of scale.There pricing objective is to get "Maximum Market Share". The various techniques used at Big Bazaar are: -
Value Pricing (EDLP - Every Day Low Pricing):
Big Bazaar promises consumers the lowest availableprice without coupon clipping, waiting for discount promotions, or comparison shopping.
Promotional Pricing:
Big Bazaar offers financing at low interest rate. The concept of psychologicaldiscounting (Rs. 99, Rs. 49, etc.) is used as promotional tool. Big Bazaar also caters on Special EventPricing (Close to Diwali, Gudi Padva, and Durga Pooja).
Differentiated Pricing:
Time pricing, i.e., difference in rate based on peak and non-peak hours or daysof shopping is also a pricing technique used in Indian retail, which is aggressively used by Big Bazaar.
Bundling:
Selling combo-packs and offering discount to customers. The combo-packs add value tocustomer.
Place
Big Bazaar stores are located in 50 cities with 75 outlets
.Big Bazaar has presence inalmost all the major Indian cities. They are aggressive on their expansion plans.
Page - 4Promotion
Big Bazaar started many new and innovative cross-sell and up-sell strategies in Indian retail market. Thevarious promotion techniques used at Big Bazaar include
"saal ke sabse saste teen din"
, Future Card (thecard offers 3% discount), Shakti Card,Brand Endorsement by M. S. Dhoni, Exchange Offer - ‘Junk Swap Offer’, Point-of-Purchase Promotions.Advertising has played a crucial role in building of the brand. Big Bazaar advertisements are seen in printmedia, TV, Radio (FM) and road-side bill-boards.
People
They are one of the key assets for any organization. The salient features of staff of Big Bazaar are: -
Well-trained staff, the staff employed by Big-Bazaar are well-suited for modern retail.
Well-dressed staff improves the overall appearance of store.
Employees are motivated to think out-of-the-box. Retail sector is in growth stage, so staff is empoweredto take innovative steps.
Employs close to 10,000 people and recruits nearly 500 people every month.
Use of technology like scenario planning for decision making.
Multiple counters for payment, staff at store to keep baggage and security guards at every gate, makesfor a customer-friendly atmosphere.
Process
The goods' dispatch and purchasing area has certain salient features which include: -
Multiple counters with trolleys to carry the items purchased.
Proper display / posters of the place like (DAL, SOAP, etc.).
Home delivery counters also started at many places.
Physical Evidence
It deals with the final deliverable or the display of written facts. This includes the current system andavailable facilities.
Big Bazaar: Brand Extensions Actually Made & Future Possibilities
Future Group is planning to split Big Bazaar into two entities. One will be front-end consumer-orientedentity and other will be for back-end operations. Back-end entity may enter into joint venture with leadinginternational cash and carry retailers. Foreign partners like Carrefour, Metro, Costco, etc., are in the race,and their role will be to improve efficiency in sourcing and logistics, which will help drive down prices andboost margins.The front-end operations will be further divided in three categories,
Big Bazaar Express
with store arealess than 40,000 sq. ft.,
Standard Big Bazaar
with store area between 40,000 to 75,000 sq. ft., and
BigBazaar Supercentres
with store area more than 75,000 sq. ft.
. Future Group is alsoplanning to distribute financial products like consumer loans and insurance through Big Bazaar outlets.
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