Big Bazaar Case study 2009

08/16/09 Big Bazaar XIDAS, Jabalpur Big Team Mr. Siddhartha lal, Mr. Sikander Khuswah, Mr. Sitakanta Behera Mr. Sudhir Kumar

What is Retailing

The term “Retailing” refers to any activity that involves a sale to an individual customer.

Retailing is the interface between the producer and the individual consumer buying for personal consumption.

08/16/09 Big Bazaar XIDAS, Jabalpur

Size of Indian Retail 08/16/09 Big Bazaar XIDAS, Jabalpur Source : http://www.indiaretailing.com/india-retail-report.asp Size 2008 2010 Percentage Change Estimated size of retail in India (in $bn) 353 416 18 Share of organized retail (%) in India 7 12 71 Size of organized retail in India (in Rs) 78,300 Cr 2,30,000 Cr 194

08/16/09 Big Bazaar XIDAS, Jabalpur Kuber complex Varanasi

08/16/09 Big Bazaar XIDAS, Jabalpur About Big Bazaar Hyper mart Chain of development store in India Out let 104 out lets Located in India Parent group Future group Owner Kishore Biyani (CEO) Founded 2001 Head quarter Jogeswari , Mumbai Industry Retail website www.bigbazar.com Tag line Is se sasta aur achha kahin nahi.

Porter’s five force model 08/16/09 Big Bazaar XIDAS, Jabalpur

Analysis 08/16/09 Big Bazaar XIDAS, Jabalpur 5 Forces Analysis Rivalry among the competitor

Reliance Retail, Aditya Birla Group , Vishal Retail’s, Bharti and Walmart, etc

Threat of entrants

FDI policy not favorable for international players.

Domestic conglomerates looking to start retail chains.

International players looking to foray India.

Bargaining power of supplier

The bargaining power of suppliers varies depending upon the target segment.

The unorganised sector has a dominant position.

There are few players who have a slight edge over others on account of being established players and enjoying brand distinction.

Bargaining power of buyers

Consumers are price sensitive..

Availability of more choice.

Threat of substitutes

Unorganized retail

Customer Segmentation

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.

Life cycle of Big Bazaar 08/16/09 Big Bazaar XIDAS, Jabalpur SALES

08/16/09 Big Bazaar XIDAS, Jabalpur M A R K E T G R O W T H Market Share High L O W H I G H Low Big Bazaar At BCG Matrix M A R K E T G R O W T H H I G H L O W M A R K E T G R O W T H H I G H Low L O W M A R K E T G R O W T H H I G H High Low L O W M A R K E T G R O W T H H I G H Market Share High Low L O W M A R K E T G R O W T H H I G H High Market Share High Low Market Share High M A R K E T G R O W T H Low Market Share High L O W M A R K E T G R O W T H Low Market Share High H I G H L O W M A R K E T G R O W T H Low Market Share High Market Share High Low Market Share High M A R K E T G R O W T H Low Market Share High L O W M A R K E T G R O W T H Low High H I G H L O W M A R K E T G R O W T H Low High H I G H L O W M A R K E T G R O W T H Low High

08/16/09 Big Bazaar XIDAS, Jabalpur Marketing Mix Physical Evidence People Place Promotion Price Product Process 7 ‘P’

1.Product Mix 08/16/09 Big Bazaar XIDAS, Jabalpur

Product Mix Cont.. 08/16/09 Big Bazaar XIDAS, Jabalpur 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

CHILD CARE & TOYS

Kids Wear

Toy Bazaar

Stationary

Child Care

OTHER SERVICES

Mr. right

Bakery

Loot Mart

Tulsi

Future Money

Future Generally

2.Pricing

Value pricing

Promotional pricing

Low interest financing

Psychological discounting

Special event pricing

Differentiated Pricing

Time pricing

Bundling

Psychological pricing 08/16/09 Big Bazaar XIDAS, Jabalpur

Time pricing Value Pricing 08/16/09 Big Bazaar XIDAS, Jabalpur

Bundling 08/16/09 Big Bazaar XIDAS, Jabalpur

3.Place 08/16/09 Big Bazaar XIDAS, Jabalpur BIG BAZAR INDIA

Number of out let- 104;

Located at main city-tier I & tier city-II;

Area-10,000sq ft- 120000 sqft;

High street area of city; &

Approachable destination.

4.Promotion 08/16/09 Big Bazaar XIDAS, Jabalpur

08/16/09 Big Bazaar XIDAS, Jabalpur PROMOTION

5.People

Well trained staff;

Appearance;

Empowered individual;

Encouraged to think out of box; &

Example- Ved Prakash Araya (Chief Operating) officer, Sanjib Agrawal(Head Marketing)

6.Physical Evidence 08/16/09 Big Bazaar XIDAS, Jabalpur

7.Process 08/16/09 Big Bazaar XIDAS, Jabalpur

Positioning 08/16/09 Big Bazaar XIDAS, Jabalpur High service low service Low price High price

Organization value and customer value 08/16/09 Big Bazaar XIDAS, Jabalpur

08/16/09 Big Bazaar XIDAS, Jabalpur Guerrilla marketing strategy

Future strategy of Big Bazaar 08/16/09 Big Bazaar XIDAS, Jabalpur In JV with Foreign Partner Big Bazaar Front end operation Back-end Operation Big Bazaar Express (<40000 sq.ft) Standard Big Bazaar (40000 to 80000sq. Ft) Big Bazaar Supercentres (<75000 sq ft)

08/16/09 Big Bazaar XIDAS, Jabalpur Marketing strategy Activities Target Marketing Mix Big wish All the population Process Baby registry and marriage registry Married couple, waiting for marriage Promotion Women forum Women Public relation Interior decorator and dress designer will be appoint in all the store Those customer who are very specific about their decision. People Networking through internet All loyal customer, other net user . E-marketing Religion Corner All the aesthetic people Product Mix Adhar – Rural Centric Market 720 million consumer across 627000 villages. Place Tie up with IPL Sports lover Promotion Improving Quality of product Prevailing as well as Prospect customer Product

08/16/09 Big Bazaar XIDAS, Jabalpur Thank You