RETAIL INDUSTRY ANALYSIS(BIG BAZAAR) Presentation By- LagnajitAyaskantSahoo SomyaRanjanPattanayak Priyanka Raj Sanat Rout
Plan of Presentation Industry Analysis
Key Drivers of change(PESTEL, Diamond Analysis)
Opportunity and Threat
Stake Holder Analysis
Industry Size India’s top retailers are largely lifestyle, clothing and apparel stores This is followed by grocery stores Following the past trends and business models in the west retail giants such as Pantaloon, Shoppers’ Stop and Lifestyle are likely to target metros and small cities almost doubling their current number of stores These Walmart wannabes have the economy of scale to be low –medium cost retailers pocketing narrow margin
Key Players Pantaloon Retail (India) Limited with over 12 million sq ft of retail space spread over 1,000 stores across 71 cities in India. Tata Trent limited Retail sector activity: Apparel, books and music Current store formats: Hypermarket, supermarkets Future plans: New venture called RPG Enterprises Stores: 250 stores, including 36 large format stores across 66 cities in India Retail sector activity: Music, food and grocery, beauty products Landmark Group Apparel, home décor and furnishing, Current outlets: 15 Lifestyle stores and eight Home Centers Madura garments 82 store in India across 50 cities and five international stores Retail sector activity: Apparel Vishal Mega mart 180 showrooms in 100 cities, Retail area coverage of 2,990,146 sq ft Bata 1,250 outlets in India Provogue Ltd. Apparel and footwear, 124 own stores and 228 outlets in 64 cities Archies Ltd. Archies has 100 company-owned stores in India and 450 franchise-run outlets
Government is stable
Government policy towards investment is liberal(49%)
Restriction for MNC’s
Economy is growing(7.2%)
Recovery from recession
According to mckinsey report Indian consumer goods market is expected to reach $400 bl. By 2010
Rapid expansion of IT sector
New trends are coming
Key drivers of change Multiple drivers leading to a consumption boom:
Growth in income
Increasing population of women
Raising aspirations : Value added goods sales
Food and apparel retailing key drivers of growth Organized retailing in India has been largely an urban phenomenon with affluent classes and growing number of double-income households. More successful in cities in the south and west of India. Reasons range from differences in consumer buying behavior to cost of real estate and taxation laws. Rural markets emerging as a huge opportunity for retailers reflected in the share of the rural market across most categories of consumption IT is a tool that has been used by retailers ranging from Amazon.com to eBay to radically change buying behavior across the globe.
Opportunities and threats THREATS Automatic approval is not allowed for foreign investment in retail. Regulations restricting real estate purchases, and cumbersome local laws. Taxation, which favours small retail businesses. Absence of developed supply chain and integrated IT management. Lack of trained work force. Low skill level for retailing management. Lack of Retailing Courses and study options Intrinsic complexity of retailing – rapid price changes, constant threat of product obsolescence and low margins. OPPORTUNITIES Retail industry in INDIA accounting 10% of the country’s GDP. Successive Indian government have steadily Liberalize policies related to investment, banking, trading etc. URBANISATION caused more concentration of middle income and high income people. Hypermarket is emerging as the most favorable format for the time being in India Increasing workforce of women Falling real estate prices Increase in disposable income and customer aspiration Increase in expenditure for luxury items Low share of organized retailing
Stakeholders & Big Bazaar Main Market/ Non Market stakeholders Market Stakeholders
The Big Bazaar Executive
The Communities where Big Bazaars located
Non profit Organization
Big Bazaar Contributions Inducements Inducements Contributions Non Market Stakeholders
The Labor Unions
The International Retail Stores
Value System – BIG BAZAAR
IN HOUSE BRANDS @ BIG BAZAARDJ & C CLEAN MATE SENSEI KORYO STAR SITARA CARE MATEFRESH & PURE RENUKA MAJITHIASARAPOLO and 40 more brands FEW BRANDS @ BIG BAZAAR
Porter’s five force model
Resource Analysis Human Resource
Well Trained Staff
Encouraged To Think Out Of The Box
Employ close to 10,000 people and recruit nearly 500 additional people every month
Use Scenario Planning as a tool for Quick Decision Making
Security Gaurds At All Gates
CORE COMPETENCY OF BIG BAZAR Core-Competency of Big 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
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 G R O W T H M A R K E T G R O W T H M A R K E T G R O W T H M A R K E T G R O W T H M A R K E T G R O W T H M A R K E T G R O W T H M A R K E T G R O W T H M A R K E T G R O W T H M A R K E T G R O W T H M A R K E T G R O W T H M A R K E T G R O W T H M A R K E T G R O W T H M A R K E T G R O W T H H I G H H I G H H I G H H I G H H I G H H I G H H I G H H I G H H I G H L O W L O W L O W L O W L O W L O W L O W L O W L O W L O W High Low Low High Low High Low High High Low High Low High Low High Low High High Low High Low High Low High Low High Low High Market Share Market Share Market Share Market Share Market Share Market Share Market Share Market Share Market Share Market Share
Organization value and customer value
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.
Employee oriented- high attrition rate
References www.bigbazaar.com It Happened in India- KishoreBiyani www.ibef.org www.google.co.in www.economictimes.com futurebazaar.com