LALA LAJPATRAI INSTITUTE OF MANAGEMENT

STRATEGIC MANAGEMENT

AN ASSIGNMENT ON BIG BAZAAR

SUBMITTED TO

Prof. Shannon

ON

26th JULY, 2009

PREPARED BY:
Guneet Suri 114
INTRODUCTION
Big Bazaar is a chain of retail stores, which was started in 2001 by Mr. Kishore Biyani.
Its parent company is Pantaloon Retail (India) Ltd. which is headquartered in Jogeshwari,
Mumbai. Big Bazaar, a uniquely Indian hypermarket chain blends the look, touch and
feel of Indian bazaars with aspects of modern retail like choice, convenience and quality.
Big Bazaar is a value based retail chain which works on the formula of Every Day Low
Prices. It currently has 116 outlets throughout the country.

WHY BIG BAZAAR?

Ever since its launch in 2001, Big Bazaar has stretched its arms and existence throughout
the country. It has become the biggest brand in value retail chains, leaving far behind its
competitors.

SWOT ANALYSIS
Strengths:
 High brand equity enjoyed by Big Bazaar
 State of the art infrastructure
 A vast variety of stuff available under one roof
 Everyday low prices, which attract customers
 Maximum percent of footfalls converted in sales
 Huge investment capacity
 Biggest value retail chain in India
 It offers a family shopping experience, where entire family can visit together.
 Available facilities such as online booking and delivery of goods

Weakness:
 Unable to meet store opening targets on time
 Falling revenue per sq ft
 General perception: ‘Low price = Low quality’
 Overcrowded during offers
 Long lines at billing counters which are time consuming
 Limited only to value offering low price products. A no of branded products are
still missing from Big Bazaar’s line of products. E.g. Jockey, Van heusen,

Opportunity:
 A lot of scope in Indian organized retail as it stands at approximately 4%.
 Increasing mall culture in India.

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  More people these days prefer to visit big stores where they can find large variety
under one roof
Threats:
 Competition from other value retail chains such as Shoprite, Reliance (Fresh and
trends), Hypercity and D mart.
 Unorganized retail also appears to be a threat to Big Bazaar’s business. A large
population still prefers to visit local convenient stores for daily purchases
 Changing Government policies
 International players looking to foray India

MARKETING MIX
Product:
Big Bazaar offers a wide range of products which range from 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. The various products offered
by Big Bazaar are as follows:

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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.

Pricing:
The pricing objective at Big Bazaar is to get "Maximum Market Share". Pricing at Big
Bazaar is based on the following techniques:
 Value Pricing (EDLP - Every Day Low pricing): Big Bazaar promises
consumers the lowest available price without coupon clipping, waiting for
discount promotions, or comparison shopping.

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  Promotional Pricing: Big Bazaar offers financing at low interest rate. The
concept of psychological discounting (Rs. 99, Rs. 49, etc.) is also used to attract
customers. 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 on
peak and non-peak hours or days of shopping is also a pricing technique used in
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

Place:
The Big Bazaar stores are operational across three formats — hypermarkets spread over
40,000-45,000 sq ft, the Express format over 15,000-20,000 sq ft and the Super Centers
set up over 1 lakh sq ft. Currently Big Bazaar operates in over 34 cities and towns across
India with 116 stores. Apart from the Metros these stores are also doing well in the tier II
cities. These stores are normally located in high traffic areas. Big Bazaar aims at starting
stores in developing areas to take an early advantage before the real estate value booms.
Mr. Biyani is planning to invest around Rs 350 crore over the next one year expansion of
Big Bazaar. In order to gain a competitive advantage Big Bazaar has also launched a
website www.futurebazaar.com, which helps customers to orders products online which
will be delivered to their doorstep. This helps in saving a lot of time of its customers.

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 stop and Lifestyle. They are:
 “Keep West- aSide. Make a smart choice!”
 “Shoppers! Stop. Make a smart choice!”
 “Change your Lifestyle. Make a smart choice!”

People:
 Well trained staff at stores to help people with their purchases
 Employ close to 10,000 people and employ around 500 more per month.
 Well-dressed staff improves the overall appearance of store.

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  Use scenario planning as a tool for quick decision making multiple counters for
payment, staff at store to keep baggage and security guards at every gate, makes
for a customer-friendly atmosphere.

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 the products they which
to purchase in their trolley from the 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.

Physical Evidence:
Products in Big Bazaar are properly stacked in appropriate racks. There are different
departments in the store which display similar kind of products. Throughout the store
there are boards/written displays put up which help in identifying the location of a
product. Moreover boards are put up above the products which give information about
the products, its price and offers. Big Bazaar stores are normally ‘U shaped’ and well
planned & designed

STRATEGY FOR THE YEAR ENDING 2009-2010

Quarter 1 (April’09 – June’09):
 Emphasis to be placed on coming up with new retail outlets especially in Tier II
Cities. 50 outlets to be opened in Tier II cities.
 Plan to open up Big Bazaar supercentres (> 75,000 sq ft) in Mumbai, Delhi and
NCR.
 End of season sale in June.
 Festive offers during:

Festivals Date Day

Ramanavami 3/4/2009 Friday
Good Friday 9/4/2009 Friday
Baisakhi 13/4/2009 Monday
Maharashtra Day 1/5/2009 Friday

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Quarter 2 (July’09 – September’09):
 Monsoon wears to be available at stores at competitive prices and good quality.
 Maintain hygiene and cleanliness even in monsoons.
 Timely delivery of products purchased.
 ‘Saal ke sabse saste 3 din’ during 14th-16th August on the occasion of
Independence Day’.
 Festive offers during:
Festivals Date Day
Raksha Bandhan 5/8/2009 Wednesday
Ganesh Chaturthi 23/8/2009 Sunday
Id-Ul-Fitar 21/9/2009 Monday
Navaratri Start 19/9/2009 Saturday
Navaratri Ends 27/9/2009 Sunday
Vijay Dashami (Dasera) 28/9/2009 Monday

Quarter 3 (October’09 – December’09):

 Winter wear to be available at Big Bazaar outlets.
 More variety of clothes to be made available, more emphasis on traditional
dresses because of the festive season.
 Advertisements during ICC Champions Trophy (October 2009) by brand
ambassador Mahendra Singh Dhoni.
 Kids must be attracted by offering more products for them such as toys, kids wear
and games at Big Bazaar outlets.
 Festive offers during:
Festivals Date Day
Deepavali (Diwali) 17/10/2009 Saturday
Id-Ul-Zuha 28/11/2009 Saturday
X-Mas Day 25/12/2009 Friday

Quarter 4 (January’10 – March’10):

 End of season sale in January.
 More offers and discounts in March because of the end of the financial year.
 Festive offers during:
Festivals Date Day
Makar Sankranti 14/1/2010 Thursday
Holi 28/2/2010 Sunday