big bazaar retail visit project report


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report containing the whole process of big bazaar retail store, situated in phoeinx mall, mumbai, with brief info about the company, retail store , socio economic condition, marketing mix.

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big bazaar retail visit project report

  2. 2. RMS RETAIL ASSIGNMENT 2 MBA-3, ROLL NO: 1334 UNIVERSAL BUSINESS SCHOOL Contents Introduction ……………………………………………………………………………………… 3 Brand Philosophy ……………………………………………………………………………… 4 Address of the Big Bazaar retail store ……………….……………………………… 5 Socio economic importance of Big Bazaar in Phoenix Mall, Lower Parel .. 6 Identifying the Retail Type and its Product/Service categories …………… 15 Strategic Drivers of the Retail Industry ………………………………………….. 18 Modern Technology deployed by Big Bazaar …………………………………. 26 Marketing Mix Strategy applied by Big Bazaar …………….…………………. 30 Bibliography …………………….……………………………………………………….. 38
  3. 3. RMS RETAIL ASSIGNMENT 3 INTRODUCTION Pantaloons Retail (India) Limited, a subsidiary of FUTURE GROUP, is India’s leading retailer that operates multiple retail formats in both the value and lifestyle segment of the Indian consumer market. Headquartered in Mumbai (Bombay), the company operates over 7 millions square feet of retail space, has over 1000 stores across 53 cities in India and employs over 25,000 people. The company’s leading formats include Pantaloons, a chain of fashion outlets, Big Bazaar, a uniquely Indian Hypermarket chain, Food Bazaar, a supermarket chain, blends the look, touch and feel of Indian bazaars with aspects of modern retail like choice, convenience and quality and Central, a chain of seamless destination malls. Some of its other formats include, Depot, Shoe Factory, Brand Factory, Blue Sky, Fashion Station, all, Top 10, bazaar and Star and Sitara. The company also operates an online portal, Big Bazaar is not just another hypermarket. It caters to every need of your family. Where Big Bazaar scores over other stores is its value for money proposition for the Indian customers.
  4. 4. RMS RETAIL ASSIGNMENT 4 At Big Bazaar, you will definitely get the best products at the best prices - that’s what they guarantee. With the ever increasing array of private labels, it has opened the doors into the world of fashion and general merchandise including Home furnishings, utensils, crockery, cutlery, sports goods and much more at prices that will surprise you. And this is just the beginning. Big Bazaar plans to add much more to complete your shopping experience. Brand philosophy The success of one of the largest retail shops, stores, and catalog companies can be attributed to the vision and philosophies of their founders. For the companies highlighted below, each name was a person before it was a world famous retail brand. For these top retailers, business was not just business, and their enterprises moved to the top of the retail industry powered by their own vision and personal philosophies. From setting up the first Pantaloons store in Gariahat, Kolkata in August 1997 and then the first Big Bazaar in Mumbai at the High Street Phoenix Mills in 2002, Kishore Biyani has redefined a lot many rules. But as he better puts it across for us, “I based everything on one philosophy: rewrite rules but retail values. Chase your dreams but don’t compromise on your belief system.” Today, with a pan India presence, Future Group is a well-known household name. From products to insurance to real estate, the company has its wings spread far and wide. To come to think of it, end number of accolades fall short for Kishore Biyani and his empire that he has built – right from scratch that too! Offers shoppers one stop shopping experience. Wide range of variety Price and quality conscious “Is se sasta aur acha kahin nai” Now its “Naye India Ka Bazaar” Providing a complete bazaar.
  5. 5. RMS RETAIL ASSIGNMENT 5 ADDRESS Big Bazaar 462 Phoenix Mills Cmpd, Lower Parel, Senapati Bapat Marg, Mumbai - 400013 022-66626713, 66626714, 66626703, 66626704, 1800223050
  6. 6. RMS RETAIL ASSIGNMENT 6 Socio-Economic Importance of Big Bazaar in Lower Parel, Mumbai With upto 25 retail stores in the city of Mumbai ( Future Group., 2014) and still growing at a fast pace Big Bazaar is setting its own benchmark for all the retailers in the retailing industry. I have chosen the Big Bazaar store located in High Street Phoenix Mall, Lower Parel,Mumbai as it is one the best and convenience region and also has a very pressure free atmosphere. This is first big bazaar retail store which was opened in Mumbai at High Street Phoenix To start off with, the Big Bazaar in Lower Parel is a freestanding or a stand-alone store. It is isolated and has no adjacent retailers with which they have to share traffic, however mall also has other electronics retails like Tata Croma, Reliance Digital but what I observe Big Bazaar has its unique identity and has its location advantage with all in under one roof forte. This type of store have quite a few advantages which works in the favour of Big Bazaar, Phoenix Mall, Lower Parel. They are:  Main location with a lot of front space.  No competition in close proximity.  High flexibility in terms of timings and larger space may be obtained.  Better road and traffic visibility is possible.  Adaptation of facilities according to individual specification.  Easy parking can be arranged.  Reduction in costs are possible, leading to lower prices The disadvantages that Big Bazaar- Phoenix Mall face being a freestanding store are:  Relatively high rental costs.  Competition with other electronics retails like Tata Croma, Reliance digital within the mall.  Continuous and consistent traffic will not flow long distances to visit a specific store.  Internally they have a limited trade area.  High advertising expenses.  Cost such as outside lighting, security, ground maintenance, trash collection is to be borne by Big Bazaar.
  7. 7. RMS RETAIL ASSIGNMENT 7 Big Bazaar boasts of having most of the hypermarkets brands that are not available in that particular area. Though there are competitors only in electronic consumer durables like Tata Croma , Reliance digital but apart from this big bazaar is all in one retail store which attracts the customers. This calls for youth, newly married couples, house wives and all other segments traffic in the store. $350 Billion consumption spending provides the single biggest business opportunity in India and is divided into some key categories led by food, fashion and home products. Market size- Earlier the Size of Indian Retail was 194% i.e. 2, 30,000 cr. Now it is 18% i.e. 416353 Size of retail in India (in $billion). Big bazaar 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. In 2011 Big Bazaar opened its 200th store opened in India. INDIA – LARGE CONSUMPTION MARKET 18 major languages, 8 major religions, 4000 different castes and communities celebrating 72 festivals, India is the most diverse country
  8. 8. RMS RETAIL ASSIGNMENT 8 Some stats of modern retail industry.
  9. 9. RMS RETAIL ASSIGNMENT 9 In the 2000s, states raced against each other on per capita GDP. While almost all states grew well, not all of them could keep pace with others close to them. The chart below shows you how state rankings have changed between 2004-05 and 2011-12. The incidence of poverty has declined from 45.3% in 1993-94 to 37.2% in 2004-05 and further to 21.9% in 2011-12. The percentage of persons below the Poverty Line in 2011-12 has been estimated as 25.7% in rural areas, 13.7% in urban areas and 21.9% for the country as a whole.
  10. 10. RMS RETAIL ASSIGNMENT 1 0 Charts of Indian economy and Maharashtra state growth GDP, 1999-2014
  12. 12. RMS RETAIL ASSIGNMENT 1 2 When both growth and poverty reduction are looked at in concert, Maharashtra and Andhra Pradesh come off as the best perfomers, well above the national average on both parameters. It is also noteworthy that while Gujarat grew faster than Maharashtra in terms of its GSDP during the 7 year period under consideration, Maharashtra did slightly better on a per person basis.
  13. 13. RMS RETAIL ASSIGNMENT 1 3 India today has a large middle class, a youth population which is happy spending. The figure below shows Mumbai’s (MMR – Mumbai Metropolitan Region) high GDP growth as compared to that of Maharashtra.
  14. 14. RMS RETAIL ASSIGNMENT 1 4 Overall big bazaar stores in India at a glance, Low cost is not the only thing that people are looking for today. Bundle offers, discounts, exchange sales are also a great way to sell your product. Big bazaar targets these offers and bundles them along with the sale of selected goods. Many people fall for the offer and buy the product. These offers entice customers to impulse buying thinking the offer might get discontinued.
  15. 15. RMS RETAIL ASSIGNMENT 1 5 Identifying the Retail Type and its Product/Service Categories Big Bazaar comes under the category of hypermarket retail store. Big Bazaar sell everything from apparel to Kitchen tools, from kids wear to toys and many more. They offer it in a way which makes them special. They are available everywhere. Big Bazaar is a hypermarket store means a large superstore, combining a supermarket and departmental store, offering full lines of grocery and general merchandise all under one roof. Their key categories retailed are food, groceries, apparel, furnishings and consumer durables. PRODUCT MIX:- APPARELS FOOD PRODUCTS CHILL STATION HOME & PERSONAL CARE FASHION & JEWELLERY CHILD CARE & TOYS Formal Wear Staples Soft drinks Shampoos Footwear Kids wear Denim T- shirts Ready to eat Packaged Juices Detergent Soap Beauty Care Toy Bazaar Fabrics & Cut piece Ready to cook Milk items Liquid wash Bindre Stationery Accessories Spices Frozen foods Cream Child Care Under garment Imported Bazaar Ice-cream Deodorants Night wear Tea & Coffee Utensils Party wear Plastics Sarees Crockery
  17. 17. RMS RETAIL ASSIGNMENT 1 7 APPARELS • Denims • T-Shirts • Fabric & Cut piece • Formal Wear • Casual Wear • Party Wear • Ethnic Wear • Accessories • Under Garments • Night Wear • Dress Materials • Sarees FOOD • Staples • Ready to eat • Ready to cook • International Food • Spices • Imported Bazaar • Tea & Coffee FARM PRODUCT • Fruits • Vegetables • Imported Fruits • Dairy Products CHILL STATION • Soft Drinks • Packaged Juices • Milk Items • Frozen Foods • Ice Creams HOME & PERSONAL CARE • Shampoos • Detergents • Soaps • Liquid wash • Creams • Deodorants • Home cleaners • Utensils • Plastics • Crockery • Sundries Product Mix Product Mix Cont.. 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 • Living Room • Bed Room • Kitchen • Dinning Rooms • Kids Room • Been Bags • Paintings • Decorative Items
  18. 18. RMS RETAIL ASSIGNMENT 1 8 EVALUATE THE KEY STRATEGIC DRIVERS OF THE RETAIL INDUSTRY 3-C THEORY According to Kishore Biyani's 3-C theory, Change and Confidence among the population is leading to rise in Consumption, through better employment and income. Big Bazaar has divided India into three segments:  India one: The Consuming class which includes upper middle and lower middle class (14% of India's populatn).  India two: The Serving class which includes people like drivers, household helps, office persons, liftmen, and washermen (55% of Indiaio's population) and  India three: The Struggling class (31% of India's population). With the economy in place today, a new revolution is taking place. It is becoming highly difficult for the retailers to survive this competition, on and off the web. Revolutionary thinking needs to be possessed by the retailers to thrive in today’s world. There need to be a few changes that have to be made by the retailer to sustain him.  A focused approach to strategic planning.  Advanced marketing skills.  A stronger customer focus.  Enhanced exposure on the Internet. THE STRATEGY:-  Savings is the key to the Indian middle class consumer.  The Concept of Big Bazaar as the store offers large mix of products at a discounted price, the name “Big Bazaar” was finalized.  The idea was to recreate a complete bazaar, with a large product offering & offer a good depth & width in terms of range.  Price was the basic value proposition at Big Bazaar.
  19. 19. RMS RETAIL ASSIGNMENT 1 9  Big Bazaar outlets sold a variety of products at prices; which were 5 to 70% lower than the Market Price.  The catch line “Is se sasta aur acha kahi nahi” emphasized the value of the Mall. SELECTING THE LOCATION:-  The main consideration while selecting the location was whether the low margin on the products would allow the company to sustain growth.  The group conducted a study & it was found that for a store like Big Bazaar, a large catchment area is needed.  In Mumbai they have around 20 stores located at all prime locations. THE MERCHANDISE MIX:-  Large Product mix offered by Big Bazaar was the main attachment.  The World stocked about 105000 items in over 18 product Categories.  In first year apparel accounted for 70% of the off take & the price was largely responsible for the success.  Price range starts from Rs 49 to Rs 250,000 according to the needs of customers.  Buying Process for most of the categories at big Bazaar is largely price driven. STORES DESIGN:- It tells the customer what the store is all about. It creates an image in the minds of Customer .It is the starting point of all marketing efforts. For a customer store needs to be easy to navigate, it must appeal to his sensory Perceptions & must create a sense of belonging sense of relationship. The environment created in retail store is a combination of exterior look, store interiors, the atmosphere in the store & events promotions & themes which form a part of retail store.
  20. 20. RMS RETAIL ASSIGNMENT 2 0 Standard store design size INTERIOR STORE DESIGN:-  It is a function of aesthetics within the store, the merchandise sold within the space used & the overall layout of the store.  Space planning: the amount of space allocate within the store.  Location of Various department.  Creation of planogram.  Relationship of space of profitability.  Big Bazaar is the three storied building, the ground floor with food & beverages. The first floor is completely apparels & home & personal care. The Second floor is completely with jewellery & decoration materials & the third floor is all about shoes, casuals, child care & toys.
  21. 21. RMS RETAIL ASSIGNMENT 2 1 MARKETING STRATEGY:-  Minimize Retailing Cost  Operating  Fewer Staff on the floor one person for every 500sq ft.  Furniture cost-Rs. 800 sq ft unlike the Rs. 1600 sqft.( Life style, Shoppersstop)  Giving discount offers, working women by monthly saving bazaar and home makers by providing a wide range of food, non food, fruits and vegetable. TARGET CUSTOMER PROFILE Geographic :  Target Region : Mumbai, Lower Parel.  Areas : Residential & Commercial areas. Demographic :  Young working population.  Women folk & Home makers.  Young & growing population of nearby areas.  Higher & Upper Middle class people.  Recently married couple. Psychographic :  Status conscious  Price conscious Behavioral :  Quality conscious  Weekly & monthly shoppers
  22. 22. RMS RETAIL ASSIGNMENT 2 2 Life cycle of Big Bazaar PORTER FIVE FORCES MODEL:- Five force Analysis Rivalry among competitors  Reliance Retail  Vishal Retails  Bharti & Wal-Mart etc. Threats of the entrants  FDI policy not favorable for international buyers.  Domestic conglomerates looking to start retail chain.  International players looking to foray India.
  23. 23. RMS RETAIL ASSIGNMENT 2 3 Bargaining power of the supplier  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 buyer  Consumers are price sensitive.  Availability of more choice. Threat of substitutes  Unorganized retail. SWOT ANALYSIS:- Strengths Weakness Opportunities Threats SWOT
  24. 24. RMS RETAIL ASSIGNMENT 2 4 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 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
  25. 25. RMS RETAIL ASSIGNMENT 2 5 KEY STRATEGIC DRIVERS ARE:-  Maha Bachat  The Great Exchange Offer  Discounts – “Hafte ka sabse din was introduced by the Big Bazaar, where in extra and special discounts were offered on Wednesday every week, to attract the potential buyers into their store.  Junk swap offer  Cheaper price  All things available in a single store  Brand endorsement  Weekend discounts  Catchy tagline – Isse sasta aur accha kahin nahin  Wednesday bazaar
  26. 26. RMS RETAIL ASSIGNMENT 2 6 Identify all the modern technology deployed by the big bazaar :-  The evolution of technology within the retail and e-commerce space is shaping how consumers behave and interact with brands and savvy, smart retailers know that understanding shoppers’ behavior is key for success. These retailers realize they can utilize technology to capitalise on consumer needs and customised offerings to help significantly increase their bottom lines. SAP Point-Of-Sale (SAP POS)  India’s retail giant Future Group is installing the latest point-of-sale (POS) technology and retail software from Germany-based Wincor Nixdorf, a leading provider of innovative IT solutions to retailers and retail banks, to streamline its retail store processes and improve the customer experience across its outlets.  Technology deployment Operational Bar strength of big bazaar was info. Sys. code reader and EDI (electronic data interchange) for information sharing with suppliers with in & across the stores  Retail link to study POS data & product inventories.  Introduced RFID to have more visibility in S&C.  Implemented Future SAP to build transact. Mgt. sys  Launched e-commerce stores .
  27. 27. RMS RETAIL ASSIGNMENT 2 7 Other technologies are:  Existing architecture of it system(hardware)  Billing system  Inventory replenishment  Order tracking  Vendor selection process  SANCHAYAN AND SAMADHAN- These is the applications used for cash transactions, also any error in transaction related to cash are corrected through these applications.  SAMPRADAN- this software is used for pay back membership card i.e. used for checking points on card and redemption of voucher.  SAP – They uses this software in warehouse for inventory purpose.  SPARSH – This software contains all the staff information regarding their wages, attendance, Timings etc.
  28. 28. RMS RETAIL ASSIGNMENT 2 8 Online website Store Warehouse Store Store Warehouse Datacenter DR All Branches / Retail Stores Web Server DNS Server Proxy Server Application Server Application Server Application Server Ro ute Fire wall Swi tch Web Server DNS Server Proxy Server Application Server Application Server Application Server Ro ute Fire wall Swi tch Leased lines Leased lines Leased lines Leased lines Private Cloud Big Bazaar Network Ssys Design
  29. 29. RMS RETAIL ASSIGNMENT 2 9 Online website is one of the most powerful sourcing system which is direct to the customer, customer can check the available items/products , prices, offers, bundle offers and beside they can directly buy online through the website.
  30. 30. RMS RETAIL ASSIGNMENT 3 0 IDENTIFY THE MARKETING MIX STRATEGY APPLIED BY THE big bazaar, TO GAIN COMPETITIVE ADVANTAGE Retail Marketing Mix Price Place Product PromotionPeople Process Physical Evidence
  31. 31. RMS RETAIL ASSIGNMENT 3 1 How does a retailer inform his customers about the product he has an offer on?  How does he lure them to visit his store and shop?  How does he achieve his sales target? The answer to all the above questions lie in the retail marketing mix strategy the retailer follows to pursue his marketing objectives. All these strategies are explained below.
  38. 38. RMS RETAIL ASSIGNMENT 3 8 Bibliography 1. Source: CSO, RBI, EAC to PM, Ministry of Finance; 10th March, 2014 2. Databook for DCH; 10th March, 2014 3. Source: Rural Urban Distribution of Population - India, Census of India 2011 (PCA Final Data) #: Refers to Union Territory 4. Source : Reserve Bank of India, Central Statistical Organisation, Finance Ministry, EAC to PM etc. 5. 6. 7. 8. n%20Economic%20Census.pdf 9. Bajaj, C., Tuli, R. and Srivastava, N.V. (2010) Retail Management, 2nd edition, New Delhi: Oxford University Press. 10. 11. 12. mall-lower-parel-mumbai_3mm47 13. 14. 15.Pantaloon Retail India Limited 16. "Future Group trims workforce". Times of India. 21 February 2012. Retrieved 24 February 2012.