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It's like an Indian bazaar or mandi or mela, the environment created by traders to give shoppers a sense of moment. Its personality is of being an entity away from fancy or pretty and being authentically "no-frills". Kishore Biyani never hired any foreign consultant for Big Bazaar which is evident from Indian-specific personality of the brand. The brand's personality 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 Big Bazaar. To use predatory pricing is not in the personality of Big Bazaar, they never sell goods below the price they have purchased it. Big Bazaar, the "Indian Wal-Mart", is the modern Indian family's favorite store. Big Bazaar symbolizes modern retail, the business which isn't looked up to in our country, is now in the 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 µunbranded 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 products are the two ends of the product spectrum. Each unit of a commodity is exactly like every other unit. A product 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 mined and sold by many companies in Rajasthan; it's like an unbranded commodity, where each producer is selling 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 differentiated products 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 identifiable product or service, and buyers or users perceive values in it which matches their needs. There are certain advantages of branding. They are: -
Product dies but a good brand never dies: The first car T-model is no more but the brand 'FORD' is still alive. 'Pears' soap that was launched somewhere in the end of 1800
and hence.e. This is explained by religion model also. Concept Brand: Brands that are driven by emotional values . The key features that have shaped in establishing of brand includes: y y y y Big Bazaar ensures that no other kirana store / departmental store are offering considerable discount compared to its own price. This helped Big Bazaar in being the "value for money" store. Big Bazaar: Positioning & Establishment Big Bazaar has established itself in the first quadrant of Organization Value and Customer Value Matrix (Exhibit 5). Promotion of kirana is rare event but Big Bazaar used this channel efficiently to establish itself as national brand. Brand Religion Brand: The ultimate brand position is that of brands that . Brand Culture Brand: Brands that are so strong that they . Premium price: Brands generate trust. Differentiation: Creating a brand is nothing but creating a strong association. Big Bazaar scores high on product mix as compared to kirana store. .as opposed to product characteristics. a brand manager can charge extra price and people pay for that trust. and thus. selling to existing customers.. a faith to which they profess. y Customer loyalty resulting in high up sell. Cheap and local products are heavily stocked in Big Bazaar which make it easier to attract lower middle class category of customers. y y y Sales or market share: A brand generates familiarity and trust. Corporate Concept Brand: Brands that merge with the company and present themselves in a sustained and consistent way.have become a "must". the brand becomes more involving. The SWOT Analysis (Exhibit 6) of current strategy of Big Bazaar elaborates the core competencies and areas of improvement. The model distinguishes 5 types of brands: y y y y y Product Brand: Products without any form of added value connected to the generic element.is still alive although they have changed the product. This association clearly differentiates the branded product from the rest. According to brand evolution model developed by Kunde (2000) (as the value of brand becomes stronger and more relevant to customers.in the eyes of the consumer . managers need to make their brand values more relevant to increase customer's involvement. i.in the eyes of the consumer have become equated with the function they represent. leads to greater sales. Even they are looking for line extension but basic brand names are the same. Branded products have an edge over unbranded products.
Big Bazaar sold over 300. Differentiated Pricing: Time pricing. // ]]>[removed] 7P Analysis of Big Bazaar 7P Marketing Mix is more useful for services industries and knowledge intensive industries. or comparison shopping. The concept of psychological discounting (Rs. Kishore Biyani has taken "early movers advantage" in many retail spaces.Also. and Durga Pooja). .y Big Bazaar refrains from high-end locations for business which reduces its rental budget and provides competitive advantage over competitors.000 pairs of jeans. .000 microwave-ovens. Last year. The various techniques used at Big Bazaar are: y y y y Value Pricing (EDLP . 49.google_render_ad". There pricing objective is to get "Maximum Market Share".e. Gudi Padva. They work on the model of economics of scale. child care. Bundling: Selling combo-packs and offering discount to customers. Promotional Pricing: Big Bazaar offers financing at low interest rate. 99. The seven keys issues are explained as: Product Big Bazaar offers a wide range of products which range from apparels. The combo-packs add value to customer.) is used as promotional tool. etc. food. which is aggressively used by Big Bazaar. 50. etc. electronics and travel segments made up about 70% of sales. i. furniture. google_handleError. toys.. In all. [removed][removed] [removed][removed] [removed]// <![CDATA[ google_protectAndRun("ads_core. Products of all the major brands are available at Big Bazaar . these categories made up only about 60%. there are many in house brands promoted by Big Bazaar. google_render_ad).Big Bazaar has presence in almost all the major Indian cities. waiting for discount promotions. Big Bazaar also caters on Special Event Pricing (Close to Diwali. Price The tag-line is "Is se sasta aur accha aur kahin nahi".000 DVD-players and 25. difference in rate based on peak and non-peak hours or days of shopping is also a pricing technique used in Indian retail. Rs. the fashion. Place y Big Bazaar stores are located in 50 cities with 75 outlets. Successful marketing depends on number of key issues. farm products. They are aggressive on their expansion plans.Every Day Low Pricing): Big Bazaar promises consumers the lowest available price without coupon clipping.
Radio (FM) and road-side bill-boards. staff at store to keep baggage and security guards at every gate. Multiple counters for payment. Retail sector is in growth stage. etc. Employees are motivated to think out-of-the-box. One will be front-end consumeroriented entity and other will be for back-end operations. so staff is empowered to take innovative steps. Dhoni. Point-of-Purchase Promotions. Home delivery counters also started at many places. Back-end entity may enter into joint venture with leading international cash and carry retailers. Employs close to 10. Advertising has played a crucial role in building of the brand. Proper display / posters of the place like (DAL.). Exchange Offer . Use of technology like scenario planning for decision making. Foreign partners like Carrefour. Process The goods' dispatch and purchasing area has certain salient features which include: y y y Multiple counters with trolleys to carry the items purchased. The salient features of staff of Big Bazaar are: y y y y y y Well-trained staff. Physical Evidence It deals with the final deliverable or the display of written facts.Promotion Big Bazaar started many new and innovative cross-sell and up-sell strategies in Indian retail market. People They are one of the key assets for any organization. Well-dressed staff improves the overall appearance of store. Shakti Card. The various promotion techniques used at Big Bazaar include "saal ke sabse saste teen din". makes for a customer-friendly atmosphere. TV. SOAP. S. Future Card (the card offers 3% discount).µJunk Swap Offer'. Brand Endorsement by M. the staff employed by Big-Bazaar are well-suited for modern retail. . Big Bazaar advertisements are seen in print media. This includes the current system and available facilities.000 people and recruits nearly 500 people every month. Big Bazaar: Brand Extensions Actually Made & Future Possibilities Future Group is planning to split Big Bazaar into two entities.
and Big Bazaar Supercentres with store area more than 75. For every India One. Future Group is also planning to distribute financial products like consumer loans and insurance through Big Bazaar outlets. Consumer Insights & Perceptions Big Bazaar is based on 3-C theory of Kishore Biyani. office peons. Initial focus of Big Bazaar.. google_render_ad).. and according to this theory. The potential customers of Big Bazaar are India One and India Two. They are upper middle class and most of customers have substantial disposable income.Metro. Standard Big Bazaar with store area between 40. ft. etc. The insights that came out were: - . "Change and confidence is leading to rise in Consumption". house-hold helps. // ]]>[removed] India One y y y Consuming class. Cannot afford to inspire for better living.. washermen. Big Bazaar Express with store area less than 40. ft.000 sq. India Two y y Serving class which includes people like drivers. which will help drive down prices and boost margins. have hand-to-mouth existence.google_render_ad".000 sq. Confidence and Consumption. . Needs cannot be addressed by current business models. Costco. google_handleError. The customer insights were developed by close observation of the target set. and their role will be to improve efficiency in sourcing and logistics. etc. India Three y y y Struggling class. there are at least India Two and have around 55% of Indian population. They divided Indian customers in three categories: [removed][removed] [removed][removed] [removed]// <![CDATA[ google_protectAndRun("ads_core. ft. The 3-C symbolize Change.000 sq. remaining population of India.000 to 75. The front-end operations will be further divided in three categories. are in the race. constitutes only 14% of Indian population.
and are not meant for India Two. etc. they come in groups. vegetables. [removed][removed] [removed][removed] [removed]// <![CDATA[ google_protectAndRun("ads_core. "Bengali .Stall ke bhaw balcony".google_render_ad". food.. festivals.y y y y The clean and shiny environment of modern retail stores creates the perception that such store are too expensive and exclusive. that is multiple clusters within a bazaar. etc.. salesman at the Big Bazaar outlets should not look smarter than customer. so it's better not to sell in polythene packs. in their uniform. Indian customers prefer to purchase grains. Everybody understood and connected easily with these simple one-liners. India Two finds moves and find a lot of comfort in crowds. before purchasing. so they prefer not to have tie. radio in local languages. grams. Advertisements about schemes and offers through local newspapers.. inspires customer more than the traditional ways. Print Ads: Big Bazaar newspaper advertisements are present just before launch of any new scheme.Chane ke bhaw kaaju". The catch-liners include "Hindi . rice. google_handleError. That also led separate section for clothes. These tag-lines are modified according to demographic profile of customers. it's about believing in Indian ways of doing things. . demands. as every region of customers has unique demands. They prefer to be in queues. Big Bazaar has counters where you can touch wheat. Indian-ness is not about swadeshi. sugar. The advertisement and brand building is done through various ways. This creates aura about the Big Bazaar brand in the minds of customers. they are not individualistic. after touching them.Rui er dame illish". The guards. google_render_ad). "Hindi . etc. For Indians. Hypermarkets in India should be situated in city unlike western countries where they are located away from city. shopping is an entertainment. the techniques used are: Tag-line: Big Bazaar tag-lines are the key components of advertising. y y y y y Purchased bags / goods should be sealed at check-out as customer can enter and exit multiple times. etc. // ]]>[removed] y Developed a diversity tracing cell to cater local patterns. etc.. with families so Big Bazaar should offer something for every section of family. These catch-phrases appeared on hoardings and newspapers in every city where Big Bazaar was launched. Advertising: The Essential of Brand Building Process Advertising is an essential component of brand building.
Present years are the high growth years in retail sphere as market has high potential to sustain growth. whose philosophy was . The single shop was doing business of more than INR 200 Crore per year. food. Brand Endorsement by Celebrity: Big Bazaar is always associated with celebrities for advertising and marketing of its brand name. more and more firms are coming to market. Earlier Himesh Reshammiya and Sanath Jaisuriya were associated with Big Bazaar. foreign players are entering into retail sector. Now-a-days. Factors that Shaped Big Bazaar During its Life Cycle The Big Bazaar brand name is in its growth stage Pantaloon Group faced various small and large scales troubles in the introductory stage of the brand.TV Ads: Kishore Biyani spends a lot of money in brand building exercise. Big Bazaar. Bhesh Badlo" is the latest invention of the Indian iconic brand. The factors that shaped the brand during its life cycle are: y Influence of Sarvana Stores Located in Theyagraya Nagar. organized a three-day Fashion Show on the streets of Bandra. Chennai Many people think that Big Bazaar was inspired by Wall-Mart but the truth is that Kishore Biyani and his team members are neither inspired by US ways of doing retailing nor they have been to US much. Road-side Advertisements: Big Bazaar bill-boards are displayed on prime locations in various cities as a brand building exercise. a family-run 25-years-old store. high turnover. In an effort to take the Fashion to the masses. They display the catch-phrases now-a-days. Mumbai. The sales are increasing. Radio Ads: This technique is used in cities like Sangli (Tier 1 / Tier 2 cities). Fashion Shows: "FASHION @ BIG BAZAAR . The credit for foundation and inspiration goes to Saravana Store. This shop was the template for Big Bazaar. Fashion@Big Bazaar commercial is aired. it is replaced by advertisements on FM channels. . clothes. Presently. It had around 120 people just to manage crowd.low margin. the flagship hypermarket brand of retail chain of Future Group. Big Bazaar commercials are shown on various channels in India. The current campaign is starred by Brand Ambassador and Indian Cricket ODI Captain Mahendra Singh Dhoni. and pie of organized retail is increasing in retail sector. everything had a separate section. In that store.Desh Badla. This informs customers about all new happenings at Big Bazaar. groceries.
The Big Bazaar has a separate team that looks for customer's purchasing pattern and how they like or dislike products. The paint is used in Indian culture to keep house clean and brings freshness. Big Bazaar places the "Value for Money" items at check-out points.y y y Observing Customers Regularly Regular customer feedback is also an influential factor for the success of Big Bazaar. google_render_ad). According to Kishore Biyani. valuing and nurturing relationships. The strategic decisions to secure spaces before other retailers join in have resulted in cost-saving. [removed][removed] [removed][removed] [removed]// <![CDATA[ google_protectAndRun("ads_core. suppliers and employees. Everybody in Big Bazaar operates with speed and confidence when it comes to decision making. // ]]>[removed] Nurturing Relationships . Building on Core Values Core values of Indian-ness. google_handleError. Once thinking about offering gifts to employees close to Diwali. with customers.google_render_ad". Kishore Biyani suggested giving them wall-paints to keep their house clean. Strategic Decisions Taken to Build the Big Bazaar Brand The strategic decisions that lead to building of Big Bazaar were: - Real Estate Game For a retailer. For example. unlike other stores where the most expensive and catchy item is placed at the front display. Kishore Biyani has given risk-taking power. Imbibed Entrepreneurial Spirit in Organization Decision making power is given to every level of employees at Big Bazaar. Also. location is one of the most important things. The motive behind this was to keep everything clean and bring freshness in organization. which led to exposure of entrepreneurial spirit in every employee. how they approach particular products. and simplicity shaped the brand. it has created early presence in market. real estate cost should be less than 5% of total sales of store in order to provide maximum benefits to customer. Kishore Biyani always believes in long-term relationships.
prototype-based development tool made the brand adapt to the fastchanging external environment. Retailers have made use of the existing supply chain. based in Bangalore. store-location selection. an independent design and consultancy firm. Supply Chain Harvard Business School just did a case study on Pantaloons' Supply Chain and it says that Pantaloons' is the most cost-effective supply chain in the world. Scenario-Planning & Story-Telling Big Bazaar planning and design used advance technologies like scenario-planning and storytelling. Big Bazaar strategy to focus on design led to creation of Idiom. Back-end Operations. This trust led to strategically correct decisions most of the time. Whoever works with Future Group. . India may not have a modern supply chain but it definitely has a cost-effective one. Design Management Design-led thinking helped Big Bazaar to achieve µcustomer-first' objective and ultimately led to better financial performance. They are one of the few organizations in India having economists. either leaves in initial deals or continues forever.Kishore Biyani follows strategy to develop trust and nurture relationships with suppliers. The strategy to use user-focused. Use of Technology. ethnographers and sociologists working across various teams as a part of Design Management team. These techniques were mainly used for store-design layout.
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