BIG BAZAAR Case Analysis

Introduction
About Big Bazaar Hyper mart Chain of development store in India

Out let
Parent group Owner

More than 100 outlets Located in India

Future group Kishore Biyani (CEO)

Founded
Head quarter

2001
Jogeswari , Mumbai

Industry
website

Retail
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.

Organization value and customer value

*High organization value *Low customer value

*High organization value *High customer value

*Low organization value *Low customer value

*Low organization
value

*Low customer value

 Positioning
High service

Low price

High price

low service

 Swot Analysis

 Marketing Mix

Process Physical Evidence

Product

7 P
People Price

Place

Promotion

1. Product Mix
APPARELS Denims & TShirts Fabric & Cut piece Formal Wear Casual Wear Party Wear Ethnic Wear Accessories 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

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

INDIA

Number of out letmore than 100.

Located at main citytier I & tier city-II; Area-10,000sq ft120000 sqft; High street area of city; & Approachable destination.

BIG BAZAR

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 Above the Line Promotion

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

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

Front end operation

Big Bazaar Express (<40000 sq.ft)

Standard Big Bazaar (40000 to 80000sq. Ft)

Big Bazaar
Big Bazaar Supercentres (<75000 sq ft)

Back-end Operation

In JV with Foreign Partner

 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, its 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 ads Fashion 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.