Ird interm report vishnu vardhan (dm 06-071)

999 views

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
999
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
20
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Ird interm report vishnu vardhan (dm 06-071)

  1. 1. D.Vishnu Vardhan Reddy<br />DM-06-071<br /> 1st Intern Report IRD<br />Strategic advantage(s) of Big Bazaar Vishal Megamart<br />Topic:<br />Comparative study between the Big Bazaar and Vishal Megart with reference to the marketing mix strategy (4p’s) & To identify the factors that affected downfall of vishal<br />AIM:<br />Examine the reasons for the down fall of Vishal and the success of Big Bazaar .<br />Objective:<br />To find out the different marketing strategies adopted by the 2 malls for making profits and managing customers.<br />To compare the marketing strategies adopted by shopping malls to attract the customers.<br />Executive Summary:<br />In the present situation the retail Industry plays a important role in the market and it also constitutes 7%of the GDP.<br />The retail industry is not a new deal, it was present in the barter system also but the difference is that in the barter system the transaction takes place between consumers themselves, consumers interact directly where as in the centralized market economy transactions takes place at a larger scale necessitate an interface between the manufacturers and final consumers.Hence we reinforce that retailing is not a new deal<br />Today the industry seems to be functioning somewhere between the accelerated development and maturity stages, with high growth rates intense competition and moderate profitability.<br />Introduction:<br />My study is on the retail industry which is growing very fast in India. And my study is limited only for two shopping malls i.e BigBazaar and Vishal.<br />My study also includes about the reasons for the down fall of one shopping mall and the rise of another mall.<br />About the Retail :<br />Retail consists of the sale of physical goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be individuals or businesses. In commerce, a "retailer" buys goods or products in large quantities from manufacturers or importers, either directly or through a wholesaler, and then sells smaller quantities to the end-user. Retail establishments are often called shops or stores. Retailers are at the end of the supply chain. Manufacturing marketers see the process of retailing as a necessary part of their overall distribution strategy. The term "retailer" is also applied where a service provider services the needs of a large number of individuals, such as a public utility, like electric power.<br />Shops may be on residential streets, shopping streets with few or no houses or in a shopping mall. Shopping streets may be for pedestrians only. Sometimes a shopping street has a partial or full roof to protect customers from precipitation. Online retailing, a type of electronic commerce used forbusiness-to-consumer (B2C) transactions and mail order, is forms of non-shop retailing.<br />Shopping generally refers to the act of buying products. Sometimes this is done to obtain necessities such as food and clothing; sometimes it is done as a recreational activity. Recreational shopping often involves window shopping (just looking, not buying) and browsing and does not always result in a purchase.<br />About BigBazaar:<br /> Big Bazaar was established in 2001 September with the opening of first 4 stores in Calcutta, Indore, Bangalore & Hyderabad in 22 days. Within a span of 10 years now it had opened 150 branches.<br />Big Bazaar was started by Kishore Biyani the CEO and Managing director of Pantaloons Retail<br />Big Bazaar has a wide range 1,70,000 products at a discount from 5 to 50% lower than the corresponding markets.<br />It includes:<br /><ul><li>Apparels for men and women and children
  2. 2. Baby Accessories
  3. 3. Cosmetics
  4. 4. Crockery
  5. 5. Dress Material, suiting’s & Shirting’s
  6. 6. Electrical Accessories
  7. 7. Electronics
  8. 8. Foot wear
  9. 9. Home textiles
  10. 10. Home needs
  11. 11. House hold appliances
  12. 12. House hold plastics
  13. 13. Hardware
  14. 14. Home decors
  15. 15. Luggage
  16. 16. Linens
  17. 17. Sarees
  18. 18. Stationary
  19. 19. Toys
  20. 20. Utensils & Utilities</li></ul>About Vishal:<br />Ram Chandra Aggarwal set up his Vishal Garments Store in 1994 – three years before the Big Bazaar. But the actual big retail outlet was opened in the Calcutta. Vishal has nearly 150 outlets<br />Vishal is one of the fastest growing retail markets in India. Its outlets cater to almost all price ranges. The show rooms has over 70,000 products which fulfills all your household needs and can be catered under one roof. It is covering more than 11lacks of Sq.ft in retail space.<br />The Vishal stores offer affordable family fashion at prices to suit every pocket.<br />Differences Between BigBazaar & Vishal:<br />The Innovation was very good in the Big Bazaar it has implemented many offers like Wednesday Bazaar, Maha Bachat to attract the customers, with this innovation they have achieved 10million turnover in single day.<br />Big bazaar had lot of funds. Big Bazaar first stabilized its branches and then expanded its new branches<br />Where as Vishal failed to keep new innovations. It has failed to estimate the demand.<br />Vishal expanded without having the proper capital. They got the orders from the suppliers but when the stores didn’t work out, the entire supply chain got choked. Vishal instead of stabilizing and consolidating themselves first in different places and then moving to newer locations, tried to be the first in every town.<br />SWOT Analysis of Big Bazaar:<br />Strength:<br />High Brand Equity enjoyed by Big Bazaar<br />State of the art infrastructure<br />A vast variety of stuff available under one roof<br />Everyday low prices, which attract customers<br />Maximum percent of footfalls converted in sales<br />Huge investment capacity<br />Biggest value retail chain in India<br />It offers a family shopping experience, where entire family can visit together.<br />Available facilities such as online booking and delivery of goods<br />Weakness:<br />Unable to meet store opening targets on time<br />Falling revenue per sq ft<br />General perception: ‘Low price = Low quality’<br />Overcrowded during offers<br />Long lines at billing counters which are time consuming<br />Limited only to value offering low price products. A no of branded products are still missing from Big Bazaar’s line of products. E.g. Jockey, Van heusen,<br />Opportunity:<br />A lot of scope in Indian organized retail as it stands at approximately 4%.<br />Increasing mall culture in India.<br />More people these days prefer to visit big stores where they can find large variety under one roof<br />Threats:<br />Competition from other value retail chains such as Shoprite, Reliance (Fresh and trends), Hypercity and D mart.<br />Unorganized retail also appears to be a threat to Big Bazaar’s business. A large population still prefers to visit local convenient stores for daily purchases<br />Changing Government policies<br />International players looking to foray India<br /> <br />SWOT Analysis of Vishal Megamart:<br />STRENGTHS:<br /> Understanding of the ‘value retail’ segment<br /> Supply chain management<br /> Logistics and distribution network<br /> Geographical spread<br /> Identifying new locations<br /> Private labels<br /> Information technology systems<br /> Experienced and skilled management team<br />WEAKNESSES:<br /> Slow performance of the Stores<br /> Advent of Category Killers.<br />OPPORTUNITIES:<br /> Increasing penetration in the country by leveraging our supply chain,<br /> distribution and logistics network<br /> Emphasis on Backward Integration<br /> Expansion of FMCG<br /> Procurement from low-cost production centres outside India<br /> Increasing customer satisfaction and our base of loyal customers<br /> Continue to upgrade information technology systems and processes<br /> Continue to train employees and seek entrepreneurship from employees<br />THREATS:<br /> Demise of Independent small stores<br /> Demographic Changes<br />Finance component involved:<br />Mainly costing budgeting <br />Calculating the cost involved in the Advertisement.<br />Comparision study on the prices on Individual produt.<br />The costing principles.<br />HR Components Involved:<br />The HR practices include the welfare of the employee.<br />The employee selection.<br />The PMS cycle in the retail store.<br />My Focus Areas:<br />I have mostly focused on the Product, Price, Place, Promotion and also Service to some extent<br />Product:<br />The product plays a important role to attract the customers. The Good products requires promotion only to some extent.<br />The Brand of the product is very important to gain the customer attraction. The product should reach the customer expectation.<br />The Big Bazaar and Vishal are now mostly focused on their own branding of their own products. <br />Price:<br />The pricing policy is a key element of the overall store positioning and merchandising strategy. Most customers today are looking for good value for money, which is embedded in their demand for lower prices, acceptable quality and service. Retail cost structures in India are similar to those of western world, but the retail price and the margin structure are lower by 10percent<br />For the retail chains to become successful retailers have to exhibit very high cost efficiency and get higher margins through private labels or greater cash margins by faster rotation and higher output.<br />Place:<br />The right location decision for a retailer means being at the right place at the right time. For several reasons store location is often the most important decision made by the retailer. First location is typically the prime consideration in a customer’s store choice. Second, location decisions have strategic importance because they can be used to develop a sustainable competitive advantage. The important issues in location decisions are the Site’s accessibility, Terms and rates of occupancy and legal considerations <br />Promotion:<br />A crucial step in the retail management decision making process is developing and implementing a promotion program to attract customers to stores and encourage them to buy merchandise. The promotion program informs customers about the stores as well as the merchandise and services it offers. The ultimate aim of the retail promotion program is to generate sales from customers in the retailers target market.<br />Work Plan:<br /><ul><li>Conducted primary research on retail industry. (Done)
  21. 21. Collected data about the Big Bazaar and Vishal. (Done)
  22. 22. Studied on the marketing mix strategy. (Done)
  23. 23. Comparative study between the Big Bazaar and Vishal
  24. 24. with reference to the marketing mix (Under Process)
  25. 25. Field Work under process</li></ul> <br />

×