Supermarket Analysis

Presented By:
Arvind Kamboj
Ruby Dobriyal
Sakshi Vats
 Contents
• Introduction
• Different Package Sizes
• Unit Pricing
• Effects of flexible packaging and unit Pricing
• Different brand offerings in terms of Unit Price
• Effects of unit pricing on buying decisions.
• Conclusion
 Introduction

This presentation will throw a light on our

observations of a Super Market
‘Big Bazar’
 Big Bazar
• Big Bazar, is the chain of retail stores of the
big banner Pantaloon Retail (India) Ltd.,
which in turn is a segment of the Kishore
Biyani, regulated Future Group of
Companies.
• Big Bazar, a part of the Pantaloon Group, is a
hypermarket offering a huge array of goods
of good quality for all at affordable prices.
Big Bazar with over 50 outlets in different
parts of India, is present in both the metro
cities as well as in the small towns
• This large format store comprise of almost
everything required by people from different income
groups. It varies from clothing and accessories for
all genders like men, women and children,
playthings, stationary and toys, footwear, plastics,
home utility products, cosmetics, crockery, home
textiles, luggage gift items, other novelties, and also
food products and grocery

• The added advantage for the customers shopping in Big

Bazar is that there are all time discounts and promotional
offers going on in the Big Bazar on its salable products.
 Package Sizing
When you visit Big Bazar you will see:

• Different products across brands are available like Tata

Tea, Red Label, Taj Mahal, Double Diamond etc. are
different brands for tea available.
• different package sizes in terms of weight or number of
units contained are available like tea packets availble in
100 gms, 250gms, 500 gms, 1Kg etc. are available.
Quantity: 1Kg Quantity: 1 kg
MRP: Rs.183 Price: Rs.307

Quantity: 1kg Quantity: 1Kg

MRP: Rs.227 MRP: Rs.145

 Pricing Strategy to attract
Customers
• You will see that manufacturers offer
commodities in smaller packages just to
attract customers as if, we compare the
prices with bigger packages it might be
same or may be more.
• Let’s have a look at some products
available in different package sizes:
Maggi Tomato Ketchup
Maggi Tomato Ketchup –
Maggi tomato ketchup
which was initially
available in 200gms,
500gms, 1kg, (Priced at
– Rs.30, Rs.58,
Rs.110)has launched:
• Maggi Pichkoo which
comes as a small doy
pack (200gms for
Rs.34).
• Also, easy pouches (10
gms – Rs.2)
Nescafe
Nescafe – It was earlier
available in package
sizes of 100gms,
200gms, 500gms,
(Priced at –Rs. , Rs.136,
Rs.225)has launched:
• packet sizes of 2gms,
20gms,and 50gms.(2
gms – Rs.2 and 50gms
– Rs.10)
 Advantages of Flexible Packaging
“It offers the advantage of packing smaller
quantities compared to traditional
packaging and hence, middle class
consumers, who comprise a major section
of the Indian society, have the choice of
purchasing just the required amount of
products.”
Also, it has following benefits:

• Ease of handling
• Lesser storage space becomes
increasingly appreciated
• Keeping the product from adulteration and
moisture
• Convenience of disposal.
• Cost savings on transportation.
 Unit Pricing
Different Package sizing also results in variations in unit price as we
stated in previous slides however sometimes, Unit Price varies from
brand to brand for the same product.

Before we move further, lets see what does Unit Pricing means:

The "unit price" tell you the cost per pound, gram, or other unit of
weight or volume of a food package. It is usually posted on the shelf
below the food. The shelf tag shows the total price (item price) and
price per unit (unit price) for the product.
 Here are some observations from our
survey for variations in unit price of same
products but different brands.
 Microwave Ovens

IFB Microwave 17L Grill

Inalsa
MRP: Rs. 4900
Microwave Oven 21LMG
MRP: Rs. 5195 HS18 Price: Rs.4399

HS18 Price: Rs.3999

LG 17L Grill Microwave

Oven - MG-1742WE

MRP: Rs. 5,699

 Rice

Kohinoor Basmati Rice

Quantity – 1 Kg
Lal Quilla Basmati Rice MRP – Rs.69
Quantity – 1 kg
MRP – Rs.73

Dawat Basmati Rice

Quantity – 1 Kg
MRP – Rs.72
 Effectiveness of Unit Pricing
• Unit pricing can help us in the following ways:
• decide what brand to buy. Store brands and little known brands
often cost less than well-known national brands. The way the lower-
priced brands look may be the only difference.
• It provides a fair idea of the actual price of the commodity where
manufacturers try to influence customers with small packaging
strategy and increasing the price for example - Sunsilk Shampoo
lowered the volume per package. The bottle size like these used to
contain 400 ml of shampoo and 200 ml of conditioner, now only 385
ml shampoo and 180 ml conditioner for the same price.
• You can save money when you compare the unit price of each of
the alternative available for a particular product before you make
your decision.
 Conclusion
Through this survey we could determine
that different package sizes are available
for different brands which is a strategy to
attract consumers. However, the unit price
strategy provides a fair picture of the
commodity sold as it shows the total price
including the shelf price and production
cost. Hence, we can conclude that Unit
Pricing is an effective Strategy in today’s
market.