PRESENTATION ON

BIG BAZAAR
Presentation by
-Gurdeep Singh
-Pushpak Pandey
-Shaleen Agarwal
-Rohan Tandon
-Richa Kohli

Agenda
Retailing : An overview
Indian retail
The change factor
FDI in Indian retailing
Big Bazaar- Company Profile
- Customer Segment
- Vision and Mission
- Swot analysis
- BCG Matrix
- Porter 5 Forces Model
Why FDI ?
How FDI ?
Retailing
Worlds largest private industry
US$ 6.6 trillion sales annually

Fortune 100
9 Retailers
Carrefour, Ahold, Home Depot, Kroger,
Metro, Kmart-Sears, Target, Albertsons
Indian Retailing
Largest employer after agriculture - 8%* of
population
Highest outlet density in world
Around 12 mn outlets
Still evolving as an industry
Long way to go
An overview
Retailing: An overview
Weekly Markets
Village Fairs
Melas

Convenience Stores
Mom and
Pop/Kiranas
Khadi Stores
Cooperatives
Exclusive Brand
Outlets
Hyper/Super Markets
Department Stores
Shopping Malls
Traditional/Pervasiv
e Reach
Government
Supported
Historic/Rural
Reach
Modern Formats/
International
Evolution of Indian retail
Source of
Entertainment
Neighborhood
Stores/Convenience
Availability/ Low
Costs /
Distribution
Shopping
Experience/Efficiency
Informal retailing Sector
Typically small retailers.
Evasion of taxes
Difficulty in enforcing tax collection
mechanisms
No monitoring of labor laws


Formal Retailing Sector
Typically large retailers
Greater enforcement of taxation
mechanisms
High level of labor usage monitoring

Indian retail
Evolution of Indian retail
Corporate Houses
Tatas: Tata Trent
RPG group: Food World, Health and
Glow, etc
ITC: Wills Life Style
Rahejas(ShoppersStop),
Hiranandani(Haiko), DLF(DT cinemas) etc.
Dedicated brand outlets
Nike, Reebok, Zodiac etc
Multi-brand outlets
Vijay Sales, Viveks etc
Manufacturers/ Exporters
Pantaloons, Bata, Weekender
Indian retail
Categories of Indian retail
Modern Format retailers
Supermarkets (Foodworld)
Hypermarkets (Big Bazaar)
Department Stores (S Stop)
Specialty Chains (Ikea)
Company Owned Company Operated

Traditional Format Retailers
Kiranas: Traditional Mom and Pop Stores
Kiosks
Street Markets
Exclusive /Multiple Brand Outlets
Indian retail
Classifying Indian retail
Hypermarket
Big Bazaar
Giants
Shoprite
Star
Department store
Lifestyle
Pantaloons
Piramyds
Shoppers Stop
Trent
Entertainment
Fame Adlabs
Fun Republic
Inox
PVR
Indian
retailers
Large Indian retailers
Greater per capita income
Increase in disposable income of middle
class households
20.9%* growth in real disposable income in
99-03.
Growing high and middle income population
Growing at a pace of over 10%* per annum
over last decade
Affordability growth
Falling interest rates
Easier consumer credit
Greater variety and quality at all price
points
Indian
consumer
The changing Indian consumer

From Euromonitor Retail Survey
The urban consumer
Getting exposed to international lifestyles
Inclined to acquiring asset
More discerning and demanding than ever

No longer need-based shopping
Shopping is a family experience
Changing Mindset
Increasing tendency to spend
Post Liberalization children coming of age
100 mn 17-21 year olds*. Tend to spend
freely.
Greater levels of education
Indian
consumer
The changing Indian consumer
*Data from NCAER
Market size
Current market size is roughly US$ 286 bn*
96% of the 12 Million stores are less than 500
Sq. ft.
Forecast Growth rate for the retailing
industry is roughly 8.3% for 2003-2008
Sales from large format stores would rise by
24-49%**
Formal and modern format retailing would
enjoy rapid growth
Anticipated
growth
Anticipated growth

Low domestic competition
Because of fragmented nature of industry

Lack of exposure to global best practices
Low entry barriers for unorganized retailing
Moderate entry barriers for organized
retailing

Wholesale system under-invested leading to
20-40% wastage

Non level playing field issues
Wide differences in treatment of small and
large retailers

Industry
dynamics
Industry dynamics
Real Estate Costs
Supply Chain Inconsistency
Poor Infrastructure
Lack of Skilled Manpower
issues
Industry dynamics
Growth determining factors
Government Policy
Infrastructure development
GDP growth
Employment generation and job creation
In several new sunrise industries
Implies greater purchasing power

Growth
factors
Growth factors
India ranked 1
st
in the Global A.T Kearney
Retail Development Index

India
Russia
China
Advantage
India
The Indian advantage
THE SIZE OF THE OPPORTUNITY
Products


Total Retail Organised Organised
Rs. Billion Retail Retail as %
Rs. Billion of Total
Food & Grocery 6422 50 1
Textiles & Apparel 980 185 19
Jewelry & Watches 554 30 5
Consumer durables 415 43 10
Pharmaceuticals 364 10 3
Home Solutions 351 32 9
Books, Music & Gifts 115 15 13
Others 1159 111 10
Total 10360 476 5
Current Indian FDI Regime
FDI not permitted in retail trade sector,
except in:
Private labels
Hi-Tech items / items requiring
specialized after sales service
Medical and diagnostic items
Items sourced from the Indian small
sector (manufactured with technology
provided by the foreign collaborator)
For 2 year test marketing (simultaneous
commencement of investment in
manufacturing facility required)
FDI in Retail
not permitted
FDI in Indian retailing
Metro Group of Germany
Cash-and-carry wholesale trading
Proposal faced strong opposition

Entities established prior to 1997
Allowed to continue with their existing
foreign equity components.
No FDI restrictions in the retail sector pre-
1997
Foodworld
51:49 JV between RPG and Dairy Farm
International,
Leading food retailer in India now
Mc Donalds
Current FDI
FDI in Indian retailing




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Hypermarket
The chain of retail
stores of the
Pantaloon Retail
(India) Ltd.
89 outlets in India
Headquarter in
Mumbai
Focusing on Value
of Money
COMPANY PROFILE

Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one
of Indias leading business houses with multiple businesses spanning
across the consumption space. While retail forms the core business activity
of Future Group, group subsidiaries are present in consumer finance,
capital, insurance, leisure and entertainment, brand development, retail real
estate development, retail media and logistics.


Led by its flagship enterprise, Pantaloon Retail, the group operates over 12
million square feet of retail space in 71 cities and towns and 65 rural
locations across India. Headquartered in Mumbai (Bombay), Pantaloon
Retail employs around 30,000 people and is listed on the Indian stock
exchanges. The company follows a multi-format retail strategy that captures
almost the entire consumption basket of Indian customers. In the lifestyle
segment, the group operates Pantaloons, a fashion retail chain and Central,
a chain of seamless malls. In the value segment, its marquee brand, Big
Bazaar is a hypermarket format that combines the look, touch and feel of
Indian bazaars with the choice and convenience of modern retail.
In 2008, Big Bazaar opened its 100th store, marking the fastest ever
organic expansion of a hypermarket. The first set of Big Bazaar stores
opened in 2001 in Kolkata, Hyderabad and Bangalore.

The groups speciality retail formats include, books and music chain,
Depot, sportswear retailer, Planet Sports, electronics retailer, eZone,
home improvement chain, Home Town and rural retail chain, Aadhaar,
among others. It also operates popular shopping portal.

Future Capital Holdings, the groups financial arm provides investment
advisory to assets worth over $1 billion that are being invested in
consumer brands and companies, real estate, hotels and logistics. It
also operates a consumer finance arm with branches in 150 locations.
Customer Segment
Big Bazaar target to upper middle class
and higher customers.
The large and growing young working
population is a preferred customer
segment.
Big Bazaar specially target working
women and home maker who are the
primary decision maker.
Future Group shall deliver Everything,
everywhere, every time for every Indian
Consumer in the most profitable manner.

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

Mission & Vision
SWOT ANALYSIS
STRENGTHS
EVERY DAY LOW PRICING
GOOD INFRASTRUCTURE
CONSUMER PREFERENCES
DIVERSE MARKET COVERAGE
AWRENESS ABOUT THE BRAND HIGH AMONG
MASSES
OPPORTUNITIES
SUB URBAN UNTAPPED MARKET
ONE STOP CONCEPT UNKNOWN YET
EVOLVING CONSUMER ORIENTATION
CO BRANDING AND FRANCHISING FOR
FASTER GROWTH

SWOT ANALYSIS
WEAKNESS
LOW PERCEPTION AMONG CONSUMERS
LESS AVAILABILITY OF STORES
SUPPLY CHAIN BOTTLENECKS-
(FRAGMENTED MARKETS)
THREATS
NEW ENTRANTS AND FOREIGN PLAYERS
UNORGANISED RETAIL MARKET

5 FORCES PORTER MODEL
RIVALRY AMONG COMPETITORS
RELIANCE,MORE,VISHAL,NEXT,SPENCERS
NEW ENTRANTS
WALMART,CARREFOUR,METRO,IKEA
FOREIGN PLAYERS ALLOWED TO SOME
EXTENT
BARGAINING POWER OF SUPPLIERS
SUPPLIERS HAVE A HUGE UNORGANISED
SECTOR TO CATER TO
Contd
BARGAINING POWER OF
CONSUMERS
PRICE SENSITIVE CONSUMERS
MORE AVAILABLE CHOICES
THREAT OF SUBSITUTES
UNORGANIZED RETAIL
BCG MATRIX
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MARKETING

7 Ps ANALYSIS
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PRICING
Value Pricing (EDLP)

Promotional Pricing
Low Interest Pricing
Psychological Pricing
Special Event Pricing (Republic Day)

Differentiated Pricing
Time Pricing

Bundling
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PRICING COMPARISION
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TIME PRICING
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LOW INTEREST FINANCING
PSYCHOLOGICAL PRICING
PROMOTION
SAAL KE SABSE SASTE 3 DIN
FUTURE CARD (Discount Upto 3%)
SHAKTI CARD
JUNK SWAP OFFER
BRAND AMBASSADOR: M.S. DHONI
ADVERTISMENT (Print Ads, T.V., Radio)
POINT OF PURCHASE PROMOTION
GIFT TO EVEY 100th CUSTOMER (Seasonal)
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BANNERS AND POSTERS
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PEOPLE
People Are The Customers Which Are The
Biggest Asset Of A Company.
Well Trained Staff.
Appearance.
Presently Around 10000 Workers Are Working
And Around 500 Workers Are Recruited Every
Month.
High Security For Safety Of Customers.
Problems ahead

Reduction in consumer spending
Slow construction of malls
Difficulty in raising working
capital
High rentals
Lowering margins
New emerging competitors
THANK YOU