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BIG BAZAAR

Presented by :
Nikita Thakkar PM1328
Someshwar PM 1330
MMM-IV Sem

Man Behind Big Bazar Success


He was Born August 9, 1961 in a middle class
Family.
He started his career selling stonewash fabric to
small shops in Mumbai.
Now He known as the Rajah of Retail in India.

About Big Bazaar

Hyper mart
Chain of development store in India

Out let

120 out lets


Located in India

Parent group

Future group

Owner

Kishore Biyani (CEO)

Founded

2001

Head quarter

Jogeswari , Mumbai

Industry

Retail

website

www.bigbazar.com

Tag line

Is se sasta aur achha kahin nahi.

Vision

Everything ,Everywhere, Every time for


every Indian consumer in the most
profitable manner

Main Market/ Non Market stakeholders

STAKEHOLDERS & BIG BAZAAR


Market Stakeholders
The stockholders
The Big Bazaar Executive
The Employees
The Communities where Big Bazaars
located
Consumers
Suppliers
Non profit Organization
Competitors

Contributions

Big
Bazaar

Inducements

Contributions

Inducements

Non Market Stakeholders


The Labor Unions
The International Retail Stores
The Politicians

Value System BIG BAZAAR

IN HOUSE BRANDS @ BIG BAZAAR


DJ & C
KORYO
FRESH & PURE
SARAPOLO

CLEAN MATE

SENSEI

STAR SITARA

CARE MATE

RENUKA
and

FEW BRANDS @ BIG BAZAAR

MAJITHIA

40 more brands

Porters five force model

Analysis
5 Forces

Analysis

Rivalry among the competitor

Reliance Retail, Aditya Birla Group , Vishal Retails,


Bharti and Walmart, etc

Threat of entrants

FDI policy not favorable for international players.


Economies of scale (minimum size requirements for profitable
operations)
High initial investments and fixed costs
Cost advantages of existing players due to experience curve
effects of operation with fully depreciated assets
Scarcity of important resources, e.g. qualified expert staff

Bargaining power of supplier

The bargaining power of suppliers varies depending


upon the target segment.
The unorganised sector has a dominant position.
There are few players who have a slight edge over
others on account of being established players and
enjoying brand distinction.

Bargaining power of buyers

Consumers are price sensitive..


Availability of more choice.
Unorganized retail

Threat of substitutes

CORE
COMPETENCY
BIG
Core-Competency
of Big OF
Bazaar
A choice of more than 20000 products
Delivery across more than 1500 cities covering
around 16000 pin codes
A dedicated customer care helpline for any
queries
Fast delivery-tie up with world leader logistic &
transportation services
Talks of Quality and Cost
Special emphasis on apparels and life style
products
Providing interesting discounts

Strength
- High Brand Equity
- State-of-art infrastructure
- EDLP
- PoP promotions
- Variety of stuff under
single roof
-MIS

Weakness

Opportunity

Threat

Organized retail (4.15%)


Evolving consumer preferences
In Store Experience Improvements
New formats and consumption space
Looking at expansion

- Competitors
- Government policies
- Unorganized retail
-Economic condition

- Unable to meet store


opening targets
- Falling revenue/sq. ft.
- General perception

Customer 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.

Big Bazaar At BCG Matrix


M
A
R
K
E
T

H
I
G
H

G
R L
O O
W W
T
H
High

Low
Market Share

Organization value and customer


value
*High organization value

Strategy
Focus on Rural customer?
73% of population live in 6,00000 villages out of Total

population 114 billion.


Minimum support price.
NREGS -100 days employment.
Income from farm products is Tax free.

Customer oriented
Employee oriented- high attrition rate

Competitors of Big Bazar

Positioning-:

High
service

High
price

Low price

low
service

Products of Big Bazar

Innovations of Big Bazar

Strategy-:
They divided Indian customers into 3 categories..
1) India One.
2) India Two.
3) India Three.

The potential customers


of big bazaar are

India One & India


Two.

India One-:
Consuming class which includes upper middle and lower
middle
Class (14% of India's Population).

India Two-:
Serving class which includes people like drivers, house-hold
helps , office peons, etc. (55% of India's population).

India Three-:
Struggling class, (remaining 31% of India's population).

Vision

MARKETING STRATEGY

Minimize Retailing Cost


Operating
Fewer Staff on the floor one person for every 500sq ft.
Furniture cost-Rs. 800 sq ft unlike the Rs. 1600 sqft.
( Life style, Shoppers stop)
Giving discount offers, working women by monthly
saving bazaar and home makers by providing a wide
range of food, non food, fruits and vegetable.

MARKET SEGMENTATION OF BIG


BAZAAR

Target Market Segment:


Price

conscious
It targets lower , middle and higher class customers.
The youth and newly married growing population is preferred
customer segment
Specially targets working women and home makers who are
primary decision takers

Handling current economic situation:


- Whatever be the economic situation big
bazaar know to sustain in the market with
its every day low pricing strategy
Strategies to handle recession period:
Sabse saste teen din
Hafte ka Sabse sasta din
The great exchange offer
EDLP

CUSTOMER SERVICE

Limited

Self Service

Customization

PRODUCT ASSORTMENTS
Large number of categories
Brand options
Local brands
Diverse merchandise
customized

SERVICE MIX
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.

SERVICE MIX
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

STORE ATMOSPHERE
Multiple

clusters/mini bazars

Different

sections selling different categories

U-Shaped

PROMOTION & INNOVATIVE


IDEAS

Saal ke Sabse Saste 3 din


Future Card (3% discount)
Shakti Card
Advertising (print ads, TV ads, Radio)
Word of mouth
POP Promotions
Brand Endorsement by M.S. Dhoni and Asin
Exchange Offer
Weekend Discounts
Point of purchase promotion
Junk Swap offer- Exchange anything old for something new

NEW TACTICS

Guerilla marketing strategies 3 cheeky ad campaigns which surely


catch ones attention
Taking on the biggies like Shoppers Stop, Lifestyle and TATAs
Westside

Keep West-aside. Make a smart choice!

Shoppers! Stop. Make a smart choice!

Change your Lifestyle. Make a smart choice!

LOCATION

Big Bazar initially identifies future growing areas.

Acquires such areas at an early stage before the real estate value
booms.

Selects the low cost Locations

Big Bazar is located at high traffic area of Vashi Station, Which is the
centre of Navi mumbai

Big Bazar (Vashi) has been designed in such a way that it should look
crowded.

It is situated at one of the best locations of the city.

ANALYSIS

Income wise distribution of customers coming to big


bazaar

Higher Income Group

5%

Middle Income Group

50%

Lower Income Group

20%

No Income Group

25%

CUSTOMERS PREFERENCE TOWARDS KIRANA STORE

Yes
No

What we can get from this is that?

kirana store is one of the competitor of big bazaar. It is a threat for


big bazaar as some of the attributes of a kirana store provides more
satisfaction to customers. Big bazaar should try to improve on each of
its attributes and out compete the kirana store so that it can convert
the customers of kirana store to be the customers of big bazaar.

85%
15%

CONCLUSION

Big bazaar is a major shopping complex for todays customers. It is a


place where customers find variety of products at a reasonable price.
Big bazaar has a good reputation of itself in the market. It has
positioned itself in the market as a discounted store. The majority of
customers belong to middle class family. The youth generation also
likes shopping and moving around big bazaar.

The major drawback of big bazaar is that it lacks in providing


branded products and in quality. The staff service also does not meet
the expectations

REFERENCES
www.bigbazaar.com
It Happened in India- Kishore Biyani
www.ibef.org
www.google.co.in
www.economictimes.com
futurebazaar.com

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Thanking You!!!!!