Is se sasta aur accha kahin nahi !
Background
Situational Analysis• Scenario Analysis• Competition• SWOT• BCG matrix• Marketing Mix
Marketing Strategy• Market Research• New Strategies
Financials
FLOW
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BACKGROUND
• Industry : Retail • Founded : 2001 • Parent : Pantaloon Retail India Ltd.,
Future Group• Founder : Mr. Kishore Biyani
Currently 120 outlets
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INDIA – LARGE CONSUMPTION MARKET
India is a US$ 350 billion consumption market
India - set to become US$ 450 billion market by 2015
Share of organized retail is estimated to be 4-5% i.e. US$18-20 billion market.
Expected to expand to 14-18% by 2015 i.e US$ 75 billion
18 major languages, 8 major religions, 4000 different castes and communities celebrating 72 festivals, India is the most diverse country
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COMPETITION
Unorganized sector – 95% market share
e.g. - Local kirana stores
Organized sector - 5% market share
e.g.- Trent (Star India Bazaar), Vishal Mega-Mart, RPG (Spencer)
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Sales
LIFE CYCLE OF BIG BAZAAR
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Strengths
Weakness
Opportunities Threats
SWOT
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Strengths• One stop shop• Benefit of early entry into the retail industry• Cheap goods as no middleman• Diversified business• Better understanding of customers
Weaknesses• High cost of operation due to large fixed
costs• Sub standard Quality of goods • Very thin margin• High attrition rate of employee
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Opportunities• Organized retail (4-5%)• Rural market• Evolving consumer preferences• Business in smaller cities
Threats• Unorganized retail• Lot of competitors coming up to tap the market
potential• Margin of business reducing all the time
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?
BUSINESS
GROWTH
RATE
HIGH
LOW
LOWHIGH
RELATIVE POSITION (MARKET SHARE)
BIG BAZAAR AT BCG MATRIX
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7 P’s
Price
Place
Product
PromotionPeople
Process
Physical Evidence
MARKETING MIX
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APPARELS
• Formal wear• Casual wear• Night wear• T-shirt• Jeans• Sarees• Dress
materials• Ethnic wears• Party wear
FOOD
• Ready to eat• Ready to
cook• Spices• Staples• International
foods• Tea & Cofee HOME & PERSONAL CARE
CHILL STATIONS• Shampoo• Detergent• Soap• Liquid Wash• Creams• Deodrant• Home
cleaners• Utensils• Crockery
• Soft drink
• Packaged juice
• Milk Items
• Frozen foods
• Ice creams
Product Mix
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ELECTRONICS BAZAAR
• Television sets
• Washing Machines
• Refrigerator • Personal
Care • mBazaar • Microwaves • Small
Appliances • Laptops • Computer
Accessories • Kitchen
Appliances
FASHION & JEWELLERY
• Footwear Bazaar
• Beauty Care
• Navara • Star Parivar • Meena
Bindre
FURNITURE BAZAAR OTHERS SERVICES
• Mr. right • Bakery • Loot Mart • Tulsi • Future
Money • Future
Generali
•Living Room •Bed Room •Kitchen •Dinning Rooms •Kids Room •Paintings •Decorative Items
Product Mix (contd..)
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IN HOUSE BRANDS @ BIG BAZAAR
DJ & C CLEAN MATE SENSEI
KORYO STAR SITARA CARE MATE
FRESH & PURE RENUKA MAJITHIA
SARAPOLO and 40 more brands
FEW BRANDS @ BIG BAZAAR
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PRICING OBJECTIVE: Maximum Market Share
· Value Pricing (EDLP - Every Day Low Pricing)
· Promotional Pricing• LOW INTEREST FINANCING• PSYCHOLOGICAL DISCOUNTING• SPECIAL EVENT PRICING (GUDI PADVA)
· Differentiated Pricing- TIME PRICING
· Bundling
Price
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PSYCHOLOGICAL PRICING
BUNDLING
TIME PRICING
LOW-INTEREST FINANCING 17
· Located in 59 cities· Present in almost all the major Indian cities
• Number of outlets – 120.
• Located in main city – tier I & tier II cities.
• Area 10,000 sq ft – 1,20,000 sq ft.
• High street area of city.
• Approachable destinations.
Place
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· ‘Saal ke sabse saste 3 din’
· Wednesday – ‘Sabse sasta din’
· Future Card (3% Discount)
· Shakti Card (Women)
· Advertising (Print Ads, TV Ads, Radio, Hoardings)
· Brand Endorsement by M. S. Dhoni
· Exchange Offer – ‘Junk Swap Offer’
· Point-of-Purchase Promotions
Promotion
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• Coupon Discount, more of the products at normal price, gift with purchase, competitions and prizes, money back offers and exchange offers, special occasions.Below the
line Promotion
• Giving advertisement in news papers, TV, Internet, (own website which gives online shopping services)
• Partnership with Bigflix, Big FM 92.7Above the line
Promotion
Promotion (contd..)
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· Makes for a customer-friendly atmosphere
· Employs close to 10,000 people and recruits nearly 500
people every month
· Well-dressed staff
· Use of technology like scenario planning for decision
making
· Staff at store to keep baggage
· Security guards at every gate
People
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· Multiple counters· Trolleys to carry the items purchased· Proper display / posters of the place
Process
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It deals with the final deliverable or the display of written facts.This includes the current system and available facilities.
Physical Evidence
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High Price
Positioning
Low Price
Low Service
High Service
24Organizational &Customer Value Matrix
Key Features
• Optimum Pricing
• Product Mix
• Large stock of cheap & local products
• Establishment as a Brand
• Reduce rental budget25
Primary Research
15-20 4 2%
21-25 126 77%
26-30 24 15%
30-40 2 1%
40-45 2 1%
45+ 6 4%
Age group
Gender
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Primary ResearchHousehold Income
50,000 -
150,000
18 11%
150,000-
300,000
49 30%
300,001-
500,000
50 30%
500,000+ 47 29%
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Research FindingsHow often do you go to malls/supermarket?
2-3 times a week 10 6%
Only on Weekends 38 23%
Monthly 24 15%
As and when requires 91 55%
I have never gone 1 1%
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Research FindingsFrom where do you buy groceries/food items?
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Roadside
vendors
50 30%
Local Kirana
Shops
90 55%
Departmental
Stores
78 48%
Supermarkets 66 40%
Others 5 3%
*People may select more than one checkbox, so
percentages may add up to more than 100%
Research FindingsWhich Supermarkets do you know of?
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Hypercity 108
Vishal Megamart 74
D-mart 113
Big bazaar 157
Sahkari bhandar 75
Others 9
Research FindingsHow often do you go to Big Bazaar?
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Weekly 8 5%
Fortnightly 22 13%
Monthly 65 40%
Once in 6
months
21 13%
Rarely 48 29%
Research FindingsWhy do you go to Big Bazaar?
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Buying Clothes
and accessories
62 38%
Buying
Electronics
14 9%
Buying Food
Items
100 61%
Buying Furniture 7 4%
Window shopping 84 51%
Other 10 6%
*People may select more than one checkbox, so
percentages may add up to more than 100.
Research FindingsWhat do you like about Big Bazaar?
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One-Stop Shop
78 48%
Large number of Choices
86 52%
Sabse Sasta (reasonable prices)
84 51%
Efficient crowd management
8 5%
Others 8 5%*People may select more than one checkbox, so percentages may add up to more than 100.
Research FindingsWhich promotional strategies of Big Bazaar do you know of?
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Sabse sasta din (Wednesday)
120 73%
Sabse saste 4 din (26th Jan., 15th Aug. Etc.)
103 63%
Others 14 9% *People may select more than one checkbox, so percentages may add up to more than 100%
Research FindingsHow do you come to know of different promotional offers of Big Bazaar?
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Television Ads 59 36%
Newspapers 124 76%
Hoardings 51 31%
Radio 27 16%
Word of Mouth 53 32%
Others 9 5%
*People may select more than one checkbox, so percentages
may add up to more than 100%
Research FindingsAre you aware of the Online Shopping Store of Big Bazaar?
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Yes 28 17%
No 136 83%
Research FindingsIf Yes, how often do you shop using this online portal of Big Bazaar
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Once a Week 3 3%
Fortnightly 4 3%
Monthly 0 0%
Rarely 12 10%
Never shopped
online
98 84%
Research Findings
• Problems faced by the customers at Big Bazaar– Some times the right size is difficult to identify.
during the 'Sales' offers when there is a huge crowd
– The Staff sometimes don’t behave properly– Assistance regarding searching a particular item is
poor– Long queues on the payment counters– Irritating staff announcements
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Child Care Centre
Onion-Potato Scheme
Billing counters
NEW
STR
ATEG
IES
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Child Care Centre
• It will be located near kids section.• Help families to shop without worrying about their
children.
Assumption• Increase in 0.5% of sales
Advantages:
Parents shopping freely
Children will demand more toys
Disadvantages:
Opportunity cost of space
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Child care centreMonthly Yearly
Expenditure Ambience 10000 10000Toys 5000 20000Employees(2) 14000 168000Advertisement 5000 60000Total 34000 258000 Cost per store 258000Cost for 120 store 30960000 Revenue Total sales in FY 08-09 63420000000Total Expected sales as per current projections 70000000000Kids section forms 12% of total Sales 8400000000Sales for .5% increase with the Child care centre 42000000 Profit 1104000042
Onion-Potato Scheme
• Purchase for 1,000 INR, and get free 1kg onion and Potato for 52 weeks
• Offer can be claimed on weekdays only• Assumptions
– 1kg potato, onion - Rs14/kg– 25% of the total weekly footfalls come, on
weekdays– 5% increase in shoppers availing of this offer
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Case1 (Rs.) Case 2 (Rs.) Case3 (Rs.)
Average Bill for each new weekly customer 50 100 200
Average Cost of 1 kg potato and Onion for 52 weeks 1500 1500 1500
Average No of Customers 250 250 250
Expenditure
Average Cost for 250 customers for 52 weeks 375000 375000 375000
Total cost for 156 food bazaar stores per year 58500000 58500000 58500000
Revenue
Average Sales per week per store 12500 25000 50000
Sales per year for 156 food bazaar stores 101400000 202800000 405600000
Profit 4,29,00,000 14,43,00,000 34,71,00,00044
Billing counters• We suggest changing the placement of the billing
counters to manage crowd.• We can have cash counters at every section and few at
exit.Billing Counter Arrangement
Section Counters
Grocery 4
Apparels 3
Furniture 1
Kids 3
Electronics 2
Kitchenware 3
Exit 4
Total 20
ASSUMPTION:
By implementing this plantheir sales can increase by 0.5%
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Billing Counter Re-arrangementExpenditure
Cost of rearrangement of counters per store(existing store) 1000000
Cost for 120 big bazaar stores 120000000
Revenue
Total sales in FY 08-09 63420000000
Total Expected sales as per current projections of the company 70000000000
Sales for .5% increase with the rearrangement 350000000
Profit 230000000
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CONSOLIDATED FINANCIALSParticulars Amount (Rs.)
COST
Child care 3,09,60,000.00
Onion-Potato Scheme 5,85,00,000.00
Billing counters 12,00,00,000.00TOTAL COST 20,94,60,000.00
REVENUE
Child care 4,20,00,000.00Onion-Potato Scheme
20,28,00,000.00Billing counters 35,00,00,000.00TOTAL REVENUE 59,48,00,000.00
TOTAL PROFIT 38,53,40,000.0047
Customers enjoying their shopping experience48
THANK YOU&
Happy Holi
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