Welcome to the case study presentation by Group-VI Retail Management
Roll No:36 Nirav V. Roll No:34 Niraj T. Roll No:25 Payal Sevak Roll No:12 Nishant M. Roll No:4 Retail Management Subject: Bina Desai Submitted by: 09-11-2009 Submitted on: Prof. Rohita Dwivedi Submitted to:
Get Set GO…
Any activity that involves a sale to an individual customer.
Interface between the producer and the individual consumer buying for personal consumption.
What is Retailing? Retail Organized Unorganized
Indian Retail Market
In GRDI Index 3 rd consecutive year we are in most attractive market category.
In GCCI survey we have got most optimistic consumers with High financial confidence.
Contributes 10% to GDP & 8 % of EMP.
Higher disposable income & liquidity & High exposure to Media & Brands awareness are reasons for growth
Indian Retail Formats Shopping Malls Branded Stores Convenient Stores Hyper Market Discount Stores Specialty Stores Departmental Stores Super Market
Size of Indian Retail 194% 2,30,000 cr 78,300 cr Size of Organized retail (in Rs.) 71% 12 7 Share of Organized retail 18% 416 353 Size of retail in India (in $billion) Percentage Change 2010 (estimated) 2008
Market Opportunities In India
Fastest Growing Economy.
Potential untapped market.
Abundant availability of skilled labor.
Low cost operation.
Sourcing hub for the world.
Increasing technology adoption.
Resplendent luxury market.
Leisure & Entertainment.
Cashing on transit channels.
Man Behind Future Group Mr. Kishore Biyani : The King of Retail “ Garv se kaho hum kanjus hai!!!!” Ernst & Young Entrepreneur Year 2006 in the Service Sector. Lakshmipat Singhania– IIM Lucknow Young Business Leaders Award, 2006. CNBC First Generation Entrepreneur Year 2006.
Values Leading to purposeful thinking Introspection To respect every individual and be humble in our conduct. Respect & Humility To be a leader, both in thought & business Leadership Confidence in ourselves Indian ness
To be open & receptive to new ideas, knowledge & information Openness To respect & understand the universal laws of nature Flow To be flexible & adaptable, to meet challenges Adaptability In thoughts, business & actions Simplicity & Positivity To build long term relationships Valuing & Nurturing relationships
Pantaloons Shoppe was started. 1994
came up with IPO
Equity Shares of Rs 10 each was sub divided into five equity shares of RS. 2 each , approved in AGM on No.17, 2006
Pantaloon’s started its Operation
Company was then incorporated as Menz Wear Private Ltd.
Pantaloons trouser, first formal trouser brand launched in India.
Big Bazaar, India’s first hypermarket chain was launched 2001 came up with Insurance Business. 2007 Future Capital Holdings, financial arm launched Real Estate funds, “Kshitiz” & “Horizon” and Private Equity Fund “Indivision”. 2006 Food Bazaar, the supermarket was launched. 2002
Best managed company in India (Mid-cap)
Best value Retail store, Best Retail Destination & Best Food & Grocery Store by Won Images Retail
Emerging Market retailer.
Best employer in India. (Rank 14 th in the Hewitt Best Employers 2007 survey)
Leisure & Entertainment
Pantaloon Retail (India) Ltd.
Home Solutions Retails India Ltd.
Future Brands Ltd.
Future Media (India) Ltd.
Future Logistics Solutions Ltd.
Convergem Communications (India) Ltd.
Pantaloon Food Product (India) Ltd.
Future Knowledge Services Ltd.
Future Capital Holdings Ltd.
Future Generali India Insurance Company Ltd.
Future Generali India Life Insurance Company Ltd.
Future bazaar India Ltd.
Weavette Texstyles Ltd.
Staples Future Office Products Private Ltd.
Pan India Food Solutions Private Ltd.
Talwalkars Pantaloon Fitness Private Ltd.
Indus League Clothing
Etam Future Fashions Ltd.
Galaxy Entertainment Corporation Ltd.
Future Venture India Ltd.
Foot Mart retail
Having been the pioneers in the retailing space in India, our mature formats are household names in more than 63 cities and 65 rural centers through our rural retailing format, Aadhar. These formats cover over 11 million square feet of retail space and attract around 200 million customer footfalls in a year. While Pantaloons and Central cater to the lifestyle segment of the market, Big Bazaar and Brand Factory cater to the value segment. Together, these formats capture a large chunk of the consumption wallet of a vast majority of the Indian consuming class Mature Retail Fascias
Started in 2006, the home retailing business is among the fastest growing retail chains. Home Town, spread over more than 125,000 square feet each, offers customer a one-stop destination for all products and services related to home building and home improvement. EZone and Collection I, cater to the lifestyle needs in electronics, furnishing and furniture segments. Electronic Bazaar and Furniture Bazaar caters to the value segment. Along with 7 Home Town stores, this network operates over 200 stores across the country. Home Retailing
Future Group’s Incubation and Innovation Cell works on converting an idea, into a prototype and then into a viable business proposition. The Cell has been instrumental in creating new retail formats in emerging segments like campus fashion, ethnicwear, books and music and health, beauty and wellness. Futurebazaar.com, our etailing portal is India’s largest shopping portal. While Planet Sports caters to the sportswear segment, Depot is the books and music chain and Top 10 is the campus fashion chain. KB’s Fairprice is a low-frills retail network targeted at lower income groups. 110 stores operational in Delhi, Mumbai and Bangalore. New Fascias
Future Group partners with a number of reputed foreign and Indian companies in specialty retailing segment. US-based $20 bn Staples Inc, is our partner for office stationery retailing and first store opened in Bangalore Middle East based Axiom Communications is our partner in the communications products and services space. The group operates along with Blue Foods leading restaurant chains like Copper Chimney, Bombay Blues, Spaghetti Kitchen and The Spoon Our Indian partners include, restaurant chain, Blue Food, footwear manufacturer, Liberty Shoes and gyms and health center operator, Talwalkars’ Retail Partnerships
Investment Advisory & Consumer Finance
Future Capital Holdings, our financial services arm provides investment advisory services to assets of over $1.5 billion Kshitij and Horizon are real estate funds focusing on development of consumption centers, shopping malls and market cities. Indivision, a private equity fund which invests in consumer-focused brands and companies Indus Hotel Ventures invests in the hospitality sector Investment Advisory
Future Money serves as one-stop destination for all credit and investment products and services. With over 140 branches located within consumption centers, Future Money leverages the group’s retail presence for selling financial products Future Card, a loyalty-cum-credit card is the latest product offering from the group. Applicable at over 30 retail chains, the ‘Kamai Card’ is set to become the largest loyalty program in the country. Partnered with ICICI Bank, the card offers a single interface for customers for the group’s extensive retail network Consumer Finance
Life and Non-Life Insurance
Joint venture with Italy-based Generali Group has launched life and non-life insurance products to be sold within consumption centers. Generali ranks 31st in Fortune 500 and is among the three largest insurers in Europe. Mallassurance introduced as an innovative and low-cost alternative to increase insurance penetration Life and Non-life products available through 50 branches and over 100 Future Group retail outlets. Expected to sell over 1 million insurance policies within a year of its launch Insurance
Brand Development & IPR
Future Brands, a brand and IPR development specialist company focuses on nurturing and developing 18 national brands A large portion of retail sales is captured by these brands present in segments like fashion, food, home and personal care and consumer electronics Koryo and Sensei, the group’s consumer electronic brands account for around 20% of total sales in the segment. The company is led by a specialist team of media and marketing professionals led by Mr. Santosh Desai. Brands
Retail Media Network
Retail and ambient media provides one of the fastest growing media opportunities in the country The group operates a 1000 screen retail television network offering advertisers 3 channel options My World, a retail consumer magazine has a paid circulation of over 50,000 copies Operates a startegic partnership with Inox Theatres and BPCL petrol pumps. Future Media counts over 200 companies as its clients including Hindustan Unilever, Intel, ICICI Bank, Kingfisher etc Media
FLSL provides solutions to group companies and selective vendors covering in the areas of integrated, end-to-end SCM, warehousing and distribution Multi-Modal transportation & Container Freight Station Future Ventures India Limited is engaged in partnering with and promoting entrepreneurship in consumer-focused initiatives. The company has filed a DRHP and expects to have a corpus fund of over Rs 4000 crore Future Knowledge Services is a retail technology service provider for high quality, low cost services model catering to the entire retail value chain. It will provide consolidated Technology Support, Business Process Management and Contact Centre for all group companies and partners. Its key partners include Wipro, SAP and Cisco
Facts & Figures 30,000 employees Presence in 128 cities & rural centers Group turnover in 2008: $ 1.75 billion Pantaloon Retail & future Capital holdings listed on Indian Stock Exchange Key private equity investors in group companies & funds include,Sherpalo, ICICI vent, Kotak Mahindra PE, Och-Ziff, Capital & Goldman Sachs & WPP Strengths Retail business from the nucleus & the provides an exten. reach & easy access to low-cost Customer acquisition. A strong understanding & knowledge base on Indian consumer preferences, habits & Aspirations Experience in building some Of the most respected retail brands in the country. A proven track record of developing strong partnership models on a Win – Win – Win Basic
Is se sasta aur accha kahin nahi Tagline www.bigbazzar.com Web site Retail Industry Jogeshwari, Mumbai Head Quarter 2001 Founded Kishore Biyani (CEO) Owner Future Group Parent Group 140 outlets Outlet Hyper mart chain in India Big bazaar
All middle class customers r target customers
Large & growing young population.
Specifically targets working women & home makers who are primary decision makers
Currently focused to tier 1 & 2 but 3 years down the line tier 3 will also be added
Porter’s Five Forces Model Industry Competitiveness Bargaining power of buyer Threat of the entrants Bargaining power of supplier Rivalry among competitors Threat of Substitutes
FDI policy not favorable for international players.
Domestic conglomerates looking to start retail chain.
International players looking to foray India.
Threats of the entrants
Bharti & Wall mart etc.
Rivalry among competitors Analysis Five Forces
Threat of substitutes
Consumers are price sensitive.
Availability of more choice.
Bargaining power of buyer
The bargaining power of supplier varies depending upon the target segment.
The unorganized sector has a dominant position.
There were few players who have a slight edge over others on account of being established players & enjoying brand distinction.
Bargaining power of the supplier
BCG Matrix H I G H L O W M A R K E T G R O W T H HIGH LOW MARKET SHARE
High brand equity
State of the art
Variety of stuff
under one roof
Unable to meet
store opening targets
Rev declining / sq ft.
Emerging concept of
Reliance & Vishal Retail
Other formats – Super
market & Specialty stores
With upcoming MNC
Demand Planning A Future Group Idea
Forecasting Link. model- forecating.doc
Improved product margins.
Reduced inventory throughout the business.
Increased demand visibility across your entire business.
Increased collaboration among functional teams.
Increased order fill rates & on time delivery.
Reduced inventory carrying cost.
Improved product configuration management
Flexible process to manage historical data cleansing & accounting for future promotion.
Increased user confidence.
A sustainable and repeatable knowledge bas
Marketing Mix Physical Evidence People Place Promotion Price Product Process 7 ‘P’
11/17/09 Big Bazaar XIDAS, Jabalpur ELECTRONIC BAZAAR
FASHION & JEWELLERY
CHILD CARE & TOYS
Following a Wall mart model
Recent AGM focused more on
developing Pvt labels.
Placing tactfully in stores
Taking a advantage of price
conscious Indian consumer
Provide a sustainable
DJ & C Koryo SENSEI CLEAN MATE TASTY TREAT FRESH & PURE MAJITHIA RENUKA CARE MATE
Pricing Value Pricing Promotional Pricing Differential Pricing Bundling Low Interest Financing Psychological Discount Special Event Pricing Time Pricing
Highlights Mahabachat - 2008 The most successful & memorable mega deals built on Mahabharata as creative reference.
2006: 53 crores worth sales in just 4 days.18.5 lakh customer entry. All this from just 30 Big Bazaars !
2007: 118 crores & 3.5 million customer entry from 70 stores in 5 days !!
2008: The most successful & memorable mega deals built on Mahabharata as creative reference. Sales clocked a whopping 189 crores
37 cr worth of apparel sold
55 cr worth of food sales
25 cr worth of electronics sold
13 cr worth of mobiles sold
Overall Numbers 107% 18925 Total 131% 5866 West 110% 5143 South 104% 3450 North 95% 1509 Gujarat 80% 2957 East % Achieved Sales Zone
Target:2009 272 cr in 5 days through 120 stores !
Challenge To ensure each & everyone comes…& shops to their hearts content !!
Satellite TV Press Radio FM Channels Internet Outdoor India-1
Press FM Channels + Vividh Bharti Cable Bus Passengers Back Seats Outdoor India-2
BTL & In store activities Preview for Corporate Offices OB activity On Vividh Bharti Testimonial on Radio Maha Bachat
OB Activity on Television
15 sec vignettes showcasing excitement at store, sound bytes by customers, talk about offers etc
Much like public reaction to movies
These will run on news channel throughout the day
They will add credibility & believability to our campaign
News reader announcing “ Aaj se Mahabachat shuru ho gaya hai…”
Never before idea – It will be part of the news for the day !!
BTL & In store Activities
VM communication:Clear & clutter free from any other promo
Leaflet Paper insertions, Catchment Distribution
In-store announcements, radio jingle and TV spots
Mobile Van Innovations
SMS activity, Chain mails, Employee preview
Cinema Slides (RTC & L.B.Nagar)
Auto Back Panels
120 outlets in India
Located at high street
areas of the main cities
First Mover Advantage
Kshitij Horizon negotiates
& develops mall in majority
Biggest invesment & risk
given a competitive advantage
Located in High Traffic area
Designed to look crowded
To overcome Location
High end customer with
ready to use credit card
Low cost operation.
Internet usage is increasing
day by day
Well trained staff
Encouraged to think
out of box
Positioning 11/17/09 Big Bazaar XIDAS, Jabalpur High service low service Low price High price
Zonal CFO CEO Zonal Manager Zonal Commercial Manager Store Manager Assistant Store Manager Team Member Team Leader Store Manager Dept Manager Dept Manager Assistant Manager Assistant Manager Commercial Team
Supply Chain Management
Future Supply Chain
Forces & Trends Impact The Future Supply Chain
Driving the value chain
Managing complexity through transparency, sustainability & the scarcity of natural resources
Redesigning Supply chains
Regulatory, Ecological, Demographic
New technologies, new rules, new compliancy
Explosion of information
Big Bazaar Financials
OPERATING EXP ANALYSIS
Comparison with peers
Comparison to peers.doc Comparison to peers.doc
Offer a credit – Tie up with Banks
More aggressive in Veg and Fruit item pricing
Improve the quality in Own brands – Specially Electronics
Reduce IT related Errors – Proper Billing, Barcode on all items