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House brand

An item of merchandise sold under a house brand, usually at a lower price than an equivalent name-brand item.

Private labels, often referred to as in-house brands or store brands, are those that are owned by the retailers themselves. For example, Shoppers Stop has several in-house brands such as STOP, Kashish, LIFE, Vettorio Fratini, Elliza Donatein and Acropolis. Reliance Fresh sells grocery such as pulses, rice, tea, noodles under the Reliance Food brand and the dairy products such as its curd is sold under the Dairy Life brand.

A number of store brands: This is especially true for

apparel. Shoppers Stop has several in-house brands. For example, in the womens wear category itself it has STOP, Kashish, Remika etc. Similarly, in the mens wear category, it has STOP, Life, Vettorio Fratini, and so on. These products are not differentiated from the other brands in terms of store space. brands were not limited to a particular category. For example in Shoppers Stop, it extended from apparel for men, women and children to crockery, kitchenware, and even furnishings. Similarly, in a Reliance store, it extended from pulses to spices, noodles and even diary products.

Catered to a number of categories: In these stores, the store

the core strength of the retailers is retailing and not designing

and manufacturing products. Salil confirms, We want to remain as core retailers. Therefore, 100% of our manufacturing is outsourced. There are fairly well-established manufacturers who work with us. We have been working with them for the past seven to ten years. So is there any opportunity for entrepreneurs in tying up with these players for manufacturing these products? He says, We are open to that. The selection of a manufacturer is a stringent process. We have a huge terms and conditions list that all our vendors have to agree to and employ. For example, we are against child labor. We have a quality assurance team to evaluate them, the environment in which they work, their financial capability, their commitment, their ability, and their interest level; there is a huge list.

Five years back, our private label brands were around

17.5% in terms of sales and today they are almost 22.5%a 5% increase. So now we have started dedicating a bigger space for this. All our brands have good representation in our stores so that they have a visual impact. The treatment that our in-house brands get is equal to what other brands would get at Shoppers Stop

The road ahead

Private labels are slowly becoming the protagonist in the big Indian retail growth story. Taking cue from the West, Indian retailers are also churning out newer ways to increase their profit marginsone such initiative is the introduction of in-house brands. With Indian customers increasingly accepting these private label brands, they would soon be major contributors to the profits of Indian retailers.

Marketing Mix Big Bazaar

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. 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.


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. 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: Bazaar stores are operational across three formats The Big

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, 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: schemes used at Big Bazaar The various promotion

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!

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. 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.

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






Big bazaar vs kiryana store

Product: Big bazaar
Brand option

kiryana store

products are limited

brand option





BIG BAZAAR Promotional strategies

KIRYANA STORES negligible promotion no advertisement

Holistic advertisement

Store oriented

Big bazaar
Average SALES Net worth Profit after tax

kiryana store
Average sales margin income profit after tax