Big Bazaar is a leading Indian retail chain operated by Future Group. It operates over 100 hypermarkets across India targeting upper middle class and higher income customers. Big Bazaar aims to provide everything to every Indian consumer in the most profitable way. Its strengths include everyday low pricing and good infrastructure. However, it faces threats from new domestic and foreign entrants in the industry as well as the large unorganized retail market in India. Its marketing strategy focuses on value pricing and heavy promotions and advertisements. People are considered its biggest asset with over 10,000 well-trained employees. Future challenges include a potential slowdown in consumer spending and high operating costs.

1. PRESENTATION ON
BIG BAZAAR
Presentation by
-Gurdeep Singh
-Pushpak Pandey
-Shaleen Agarwal
-Rohan Tandon
-Richa Kohli

2. Agenda
Retailing : An overview
Indian retail
The change factor
FDI in Indian retailing
Big Bazaar- Company Profile
- CustomerSegment
- Vision and Mission
- Swot analysis
- BCG Matrix
- Porter5 Forces Model
Why FDI ?
How FDI ?

3.  Retailing
 World’s largest private industry
US$ 6.6 trillion sales annually
 Fortune 100
 9 Retailers
 Carrefour, Ahold, Home Depot, Kroger, Metro,
Kmart-Sears, Target, Albertsons’
 Indian Retailing
 Largest employer after agriculture - 8%* of
population
 Highest outlet density in world
Around 12 mn outlets
 Still evolving as an industry
Long way to go
An overview
Retailing: An overview

4. Weekly Markets
Village Fairs
Melas
Convenience Stores
Mom and Pop/Kiranas
Khadi Stores
Cooperatives
Exclusive Brand Outlets
Hyper/SuperMarkets
Department Stores
Shopping Malls
Traditional/Pervasive
Reach
Government
Supported
Historic/Rural
Reach
Modern Formats/
International
Evolution of Indian retail
Source of
Entertainment
Neighborhood
Stores/Convenience
Availability/Low
Costs /Distribution
Shopping
Experience/Efficiency

5.  Informal retailing Sector
 Typically small retailers.
 Evasion of taxes
 Difficulty in enforcing tax collection
mechanisms
 No monitoring of laborlaws
 Formal Retailing Sector
 Typically large retailers
 Greaterenforcement of taxation mechanisms
 High level of laborusage monitoring
Indian retail
Evolution of Indian retail

6.  Corporate Houses
 Tatas: Tata Trent
 RPG group: Food World, Health and
Glow, etc
 ITC: Wills Life Style
 Rahejas(ShoppersStop),
Hiranandani(Haiko), DLF(DT cinemas) etc.
 Dedicated brand outlets
 Nike, Reebok, Zodiac etc
 Multi-brand outlets
 Vijay Sales, Viveks etc
 Manufacturers/Exporters
 Pantaloons, Bata, Weekender
Indian retail
Categories of Indian retail

7.  Modern Format retailers
 Supermarkets (Foodworld)
 Hypermarkets (Big Bazaar)
 Department Stores (S Stop)
 Specialty Chains (Ikea)
 Company Owned Company Operated
 Traditional Format Retailers
 Kiranas: Traditional Momand Pop Stores
 Kiosks
 Street Markets
 Exclusive /Multiple Brand Outlets
Indian retail
Classifying Indian retail

8.  Hypermarket
 Big Bazaar
 Giants
 Shoprite
 Star
 Department store
 Lifestyle
 Pantaloons
 Piramyds
 Shoppers Stop
 Trent
 Entertainment
 Fame Adlabs
 Fun Republic
 Inox
 PVR
Indian retailers
Large Indian retailers

9.  Greaterpercapita income
 Increase in disposable income of middle class
households
 20.9%* growth in real disposable income in
’99-’03.
 Growing high and middle income population
 Growing at a pace of over 10%* per annum
overlast decade
 Affordability growth
 Falling interest rates
 Easierconsumercredit
 Greatervariety and quality at all price points
Indian
consumer
The changing Indian consumer
†FromEuromonitorRetail Survey

10.  The urban consumer
 Getting exposed to international lifestyles
 Inclined to acquiring asset
 More discerning and demanding than ever
 No longerneed-based shopping
 Shopping is a family experience
 Changing Mindset
 Increasing tendency to spend
 Post Liberalization children coming of age
100 mn 17-21 year olds* . Tend to spend
freely.
 Greaterlevels of education
Indian
consumer
The changing Indian consumer
*DatafromNCAER

11.  Market size
 Current market size is roughly US$ 286 bn*
 96% of the 12 Million stores are less than 500
Sq. ft.
 Forecast Growth rate for the retailing industry
is roughly 8.3% for2003-2008
 Sales from large format stores would rise by
24-49%* *
 Formal and modern format retailing would
enjoy rapid growth
Anticipated
growth
Anticipated growth

12.  Low domestic competition
 Because of fragmented nature of industry
 Lackof exposure to global best practices
 Low entry barriers forunorganized retailing
 Moderate entry barriers for organized
retailing
 Wholesale system under-invested leading to 20-
40% wastage
 Non level playing field issues
 Wide differences in treatment of small and
large retailers
Industry
dynamics
Industry dynamics

13.  Real Estate Costs
 Supply Chain Inconsistency
 PoorInfrastructure
 Lackof Skilled Manpower
issues
Industry dynamics

14.  Growth determining factors
 Government Policy
 Infrastructure development
 GDPgrowth
 Employment generation and job creation
In several new sunrise industries
Implies greaterpurchasing power
Growth factors
Growth factors

15.  India ranked 1st
in the Global A.T Kearney Retail
Development Index
India
Russia
China
Advantage India
The Indian advantage

16. THE SIZE OF THE OPPORTUNITYTHE SIZE OF THE OPPORTUNITY
Products
Total Retail Organised Organised
Rs. Billion Retail Retail as %
Rs. Billion of Total
Food & Grocery 6422 50 1
Textiles & Apparel 980 185 19
Jewelry & Watches 554 30 5
Consumer durables 415 43 10
Pharmaceuticals 364 10 3
Home Solutions 351 32 9
Books, Music & Gifts 115 15 13
Others 1159 111 10
Total 10360 476 5

17.  Current Indian FDI Regime
 FDI not permitted in retail trade sector,
except in:
 Private labels
 Hi-Tech items / items requiring
specialized aftersales service
 Medical and diagnostic items
 Items sourced from the Indian small
sector (manufactured with technology
provided by the foreign collaborator)
 For2 yeartest marketing (simultaneous
commencement of investment in
manufacturing facility required)
FDI in Retail
not permitted
FDI in Indian retailing

18.  Metro Group of Germany
 Cash-and-carry wholesale trading
 Proposal faced strong opposition
 Entities established priorto 1997
 Allowed to continue with their existing foreign
equity components.
 No FDI restrictions in the retail sector pre-
1997
 Foodworld
 51:49 JV between RPG and Dairy Farm
International,
 Leading food retailerin India now
 Mc Donalds
Current FDI
FDI in Indian retailing

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Hypermarket
The chain of retail
stores of the
Pantaloon Retail
(India) Ltd.
89 outlets in India
Headquarter in
Mumbai
Focusing on Value
of Money

21. COMPANY PROFILE
• Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one
of India’s leading business houses with multiple businesses spanning
across the consumption space. While retail forms the core business activity
of Future Group, group subsidiaries are present in consumer finance,
capital, insurance, leisure and entertainment, brand development, retail real
estate development, retail media and logistics.
• Led by its flagship enterprise, Pantaloon Retail, the group operates over 12
million square feet of retail space in 71 cities and towns and 65 rural
locations across India. Headquartered in Mumbai (Bombay), Pantaloon
Retail employs around 30,000 people and is listed on the Indian stock
exchanges. The company follows a multi-format retail strategy that captures
almost the entire consumption basket of Indian customers. In the lifestyle
segment, the group operates Pantaloons, a fashion retail chain and Central,
a chain of seamless malls. In the value segment, its marquee brand, Big
Bazaar is a hypermarket format that combines the look, touch and feel of
Indian bazaars with the choice and convenience of modern retail.

22. • In 2008, Big Bazaar opened its 100th store, marking the fastest ever
organic expansion of a hypermarket. The first set of Big Bazaar stores
opened in 2001 in Kolkata, Hyderabad and Bangalore.
• The group’s speciality retail formats include, books and music chain,
Depot, sportswear retailer, Planet Sports, electronics retailer, eZone,
home improvement chain, Home Town and rural retail chain, Aadhaar,
among others. It also operates popular shopping portal.
• Future Capital Holdings, the group’s financial arm provides investment
advisory to assets worth over $1 billion that are being invested in
consumer brands and companies, real estate, hotels and logistics. It
also operates a consumer finance arm with branches in 150 locations.

23. Customer Segment
• Big Bazaar target to upper middle class
and higher customers.
• The large and growing young working
population is a preferred customer
segment.
• Big Bazaar specially target working
women and home maker who are the
primary decision maker.

24. • Future Group shall deliver Everything,Future Group shall deliver Everything,
everywhere, every time for every Indianeverywhere, every time for every Indian
Consumer in the most profitable manner.Consumer in the most profitable manner.
• We share the vision and belief that ourWe share the vision and belief that our
customers and stakeholders shall be servedcustomers and stakeholders shall be served
only by creating and executing futureonly by creating and executing future
scenarios in the consumption space leadingscenarios in the consumption space leading
to economic developmentto economic development
Mission & VisionMission & Vision

25. SWOT ANALYSIS
• STRENGTHS
• EVERY DAY LOW PRICING
• GOOD INFRASTRUCTURE
• CONSUMER PREFERENCES
• DIVERSE MARKET COVERAGE
• AWRENESS ABOUT THE BRAND HIGH AMONG
MASSES
• OPPORTUNITIES
• SUB URBAN UNTAPPED MARKET
• “ONE STOP” CONCEPT UNKNOWN YET
• EVOLVING CONSUMER ORIENTATION
• CO BRANDING AND FRANCHISING FOR
FASTER GROWTH

26. SWOT ANALYSIS
• WEAKNESS
• LOW PERCEPTION AMONG CONSUMERS
• LESS AVAILABILITY OF STORES
• SUPPLY CHAIN BOTTLENECKS-
(FRAGMENTED MARKETS)
• THREATS
• NEW ENTRANTS AND FOREIGN PLAYERS
• UNORGANISED RETAIL MARKET

27. 5 FORCES PORTER MODEL
• RIVALRY AMONG COMPETITORS
• RELIANCE,MORE,VISHAL,NEXT,SPENCERS
• NEW ENTRANTS
• WALMART,CARREFOUR,METRO,IKEA
• FOREIGN PLAYERS ALLOWED TO SOME
EXTENT
• BARGAINING POWER OF SUPPLIERS
• SUPPLIERS HAVE A HUGE UNORGANISED
SECTOR TO CATER TO

28. Contd…
• BARGAINING POWER OF
CONSUMERS
• PRICE SENSITIVE CONSUMERS
• MORE AVAILABLE CHOICES
• THREAT OF SUBSITUTES
• UNORGANIZED RETAIL

29. BCG MATRIX
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30. MARKETING
‘7 P’s ANALYSIS

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32. PRICING
§Value Pricing (EDLP)
§ Promotional Pricing
• Low Interest Pricing
• Psychological Pricing
• Special Event Pricing (Republic Day)
§ Differentiated Pricing
• Time Pricing
§ Bundling

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PRICING COMPARISION

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TIME PRICING
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LOW INTEREST FINANCING PSYCHOLOGICAL PRICING

36. PROMOTION
•“SAAL KE SABSE SASTE 3 DIN”
• FUTURE CARD (Discount Upto 3%)
• SHAKTI CARD
• JUNK SWAP OFFER
• BRAND AMBASSADOR: M.S. DHONI
• ADVERTISMENT (Print Ads, T.V., Radio)
• POINT OF PURCHASE PROMOTION
• GIFT TO EVEY 100th CUSTOMER (Seasona
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BANNERS AND POSTERS
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38. PEOPLE
• People Are The Customers Which Are The
Biggest Asset Of A Company.
• Well Trained Staff.
• Appearance.
• Presently Around 10000 Workers Are Working
And Around 500 Workers Are Recruited Every
Month.
• High Security For Safety Of Customers.

39. Problems ahead
Reduction in consumer spending
Slow construction of malls
Difficulty in raising working capital
High rentals
Lowering margins
New emerging competitors

40. THANK YOU