Bigbazar and its operations and how they fulfill the needs of customers

1. PRESENTED BY :
I. AKSHATHA – PES1201802544
II. PAVITHRA – PES1201802560
III. SAKSHI – PES1201802330
IV. VISHAL SINGH – PES1201802191

2. INTRODUCTION
• Big Bazaar is an Indian retail chain of hypermarkets.
• The retail chain was founded by Kishore Biyani in 2001 under
his parent organization “Future Group” Big Bazaar is one of
the oldest and largest hypermarkets chain of India, housing about 250+ stores in over 120 cities and towns
across the country.
• Head quarters are in Jogeshwari, Mumbai.
• Their basic attraction associated with reasonable prices is their Unique Selling Price.
• Big Bazaar new tag line, “ Naye India Ka Bazaar”
earlier one, ‘ Isse Sasta Aur Accha Kahin Nahin'

3. SCM AT BIG BAZAAR
Currently Big Bazaar hypermarkets follows a hybrid supply chain model.
Procurement in Big Bazaar happens from
• Central Distribution Center.
• Local Vendors.

4. PRICING AT STORES
Big Bazaar is known as the “Indian Wal-Mart”, because they also use Every Day
Low Pricing (EDLP) strategy, with a promise to save on a basket of goods.
Their pricing strategy is as follows:
• Value Pricing Provides Lowest available price without coupon clipping,
waiting for discount promotions or comparison shopping.
• Time Pricing Charges different rates for a given good or service depending on the day, month, and so on. • E.g.
Wednesday Bazaar, Sabse Sasta din etc.
• Differential Time Pricing Difference in rate based on peak and non-peak hours of a particular day of shopping
• Bundling Selling combo-packs at discounts • E.g. 3 Good Day family packs at Rs 60 (Price/pack = Rs 22)

5. • Safety Stock Minimum inventory of 9 days so that there does not arise the stock out situation
• MEQ Purchase System Purchase order directly placed with the supplier when quantity of a product falls below a
minimum level
• Automated Replenishment Systems (ARS) Automatic Replenishment System generates purchase order
automatically when quantity falls below minimum level
• Bi-Weekly Replenishment Local vendors replenish inventory twice a week after receiving purchase order
• Dedicated Distributors Big Bazaar gets its orders fulfilled from 15-20 local distributors (for Sahara Mall) which
cater specifically to the modern trade channel members, offering them deep discounts
Big Bazaar USES THE FOLLOWING PROCESSES TO MAKE ITS SUPPLY
CHAIN EFFECTIVE

6. PRODUCT MIX
BIG
BAZAAR
Fashion &
personal
care
Food
products
Furniture
bazaar
Home
appliances
&
electronic
bazaar
Farm
products
Chill
station

7. FRAMEWORK FOR STRUCTURING DRIVERS OF BIG
BAZAAR
Com
COMPETITIVE STRATEGY
Everyday low price
Differentiating product ranges
SUPPLY CHAIN STRATEGY
Improving logistics
Increasing the effectiveness of the store
LOGISTICAL DRIVERS
RESPONSIVENESS
FACILITIES
INVENTORY
TRANSPORTATION
INFORMATION SOURCING PRICING
CROSS-FUNCTIONAL
DRIVERS
SC STRUCTURE
EFFICIENCY

8. SUPPLY CHAIN PROCESS
PROCUREMENT
CYCLE
MANUFACTURING
CYCLE
• manufacturer
REPLENISHMENT
CYCLE • distributor
CUSTOMER ORDER
• Supplier
• retailer

9. MACRO PROCESSES IN THE SUPPLY CHAIN OF BIG BAZAAR
1. C.R.M – CUSTOMER RELATIONSHIP MANAGEMENT
 MARKET - Where the transactions take place between buyers and sellers.
 PRICE – Selling of Products & Services at Reasonably Fair prices to attract customers.
 SELL - Sales at cheap rate along with maintaining after sales services i.e. return policies, exchange etc.
2. I.S.C.M - INTERNAL SUPPLY CHAIN MANAGEMENT
 Strategic Planning
 Demand planning
 Fulfilment
3. S.R.M - SUPPLIER RELATIONSHIP MANAGEMENT
 Source
 Negotiate
 Design Collaboration

10. STRENGTH
1.1. Variety of formats supporting
2.2. Better understanding of Indian
Supplies
3.3.Variety of formats support
WEAKNESS
1. SCM in real sense yet to evolve
2.Push mechanism in ordering
3. Least focus on Qualities
OPPORTUNITIES
1. Organised retail growing at 20% CAGR
2. Growing preference to organised shopping
3. Exponentially growing Indian middle class
THREATS
1. Competitors like WALMART
2. GOVERNMENT Policies
3. Unorganized Retail
SWOT
SWOT ANALYSIS

11. VALUE PRICING
Provides lowest available price
without coupon clipping,
waiting for discount promotion
or comparison shopping
TIME PRICING
Different rates depending
on day, month. Ex –
Wednesday Bazaar
DIFFERENTIAL TIME
PRICING
Difference in rates based on
peak and non – peak hours
of a day
BUNDLING
Selling combo – packs at
discounts
Example- Good Day family
packs at Rs 60
(Price/pack = Rs 22)
PRICING STRATEGY OF BIGBAAZAR

12. LIMITATIONS IN BIG BAZAAR

13. CONCLUSION
Big Bazaar does market research before entering into the market of location, consumers.
Big Bazaar as a part of future group hypermart offers a big array of Goods and services at affordable
prices.
Big Bazaar can attract more customers by different variety and assortments.
They can provide customer satisfaction by providing Home deliveries.
Big Bazaar is a major retail industry in India
There is a strong relationship b/w employees and managers

14. THANK YOU !