Big bazaar


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Big bazaar

  1. 1. RETAIL INDUSTRY ANALYSIS(BIG BAZAAR)<br />Presentation By-<br />LagnajitAyaskantSahoo<br />SomyaRanjanPattanayak<br />Priyanka Raj<br />Sanat Rout<br />
  2. 2. Plan of Presentation<br />Industry Analysis<br /><ul><li>Industry size
  3. 3. Key Players
  4. 4. Key Drivers of change(PESTEL, Diamond Analysis)
  5. 5. Opportunity and Threat</li></ul>Organization Analysis<br /><ul><li>Company details
  6. 6. Stake Holder Analysis
  7. 7. Value System
  8. 8. Resource Analysis
  9. 9. Competitive Strategy</li></ul>Conclusion<br />
  10. 10. Industry Size<br />India’s top retailers are largely lifestyle, clothing and apparel stores <br />This is followed by grocery stores <br />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<br />These Walmart wannabes have the economy of scale to be low –medium cost retailers pocketing narrow margin<br />
  11. 11. Key Players<br />Pantaloon Retail (India) Limited with over 12 million sq ft of retail space spread over 1,000 stores across 71 cities in India.<br />Tata Trent limited Retail sector activity: Apparel, books and music Current store formats: Hypermarket, supermarkets Future plans: New venture called <br />RPG Enterprises Stores: 250 stores, including 36 large format stores across 66 cities in India Retail sector activity: Music, food and grocery, beauty products<br />Landmark Group Apparel, home décor and furnishing, Current outlets: 15 Lifestyle stores and eight Home Centers<br />Madura garments 82 store in India across 50 cities and five international stores Retail sector activity: Apparel<br />Vishal Mega mart 180 showrooms in 100 cities, Retail area coverage of 2,990,146 sq ft<br />Bata 1,250 outlets in India<br />Provogue Ltd. Apparel and footwear, 124 own stores and 228 outlets in 64 cities<br />Archies Ltd. Archies has 100 company-owned stores in India and 450 franchise-run outlets<br />
  12. 12. PEST ANALYSIS<br /><ul><li>POLOTICAL
  13. 13. ECONOMICAL
  14. 14. Government is stable
  15. 15. Government policy towards investment is liberal(49%)
  16. 16. Labor law
  17. 17. Restriction for MNC’s
  18. 18. Economy is growing(7.2%)
  19. 19. Recovery from recession
  20. 20. Monetary policy</li></li></ul><li>CONTD….<br /><ul><li>Socio-cultural
  21. 21. TECHNOLOGY
  22. 22. According to mckinsey report Indian consumer goods market is expected to reach $400 bl. By 2010
  23. 23. Rapid expansion of IT sector
  24. 24. New trends are coming</li></li></ul><li>Key drivers of change<br />Multiple drivers leading to a consumption boom:<br /><ul><li>Favorable demographics
  25. 25. Growth in income
  26. 26. Increasing population of women
  27. 27. Raising aspirations : Value added goods sales </li></ul>Food and apparel retailing key drivers of growth<br />Organized retailing in India has been largely an urban phenomenon with affluent classes and growing number of double-income households. <br />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.<br />Rural markets emerging as a huge opportunity for retailers reflected in the share of the rural market across most categories of consumption<br />IT is a tool that has been used by retailers ranging from to eBay to radically change buying behavior across the globe. <br />
  28. 28. Opportunities and threats<br />THREATS<br />Automatic approval is not allowed for foreign investment in retail. <br />Regulations restricting real estate purchases, and cumbersome local laws. <br />Taxation, which favours small retail businesses. <br />Absence of developed supply chain and integrated IT management. <br />Lack of trained work force. <br />Low skill level for retailing management. <br />Lack of Retailing Courses and study options <br />Intrinsic complexity of retailing – rapid price changes, constant threat of product obsolescence and low margins. <br />OPPORTUNITIES<br />Retail industry in INDIA accounting 10% of the country’s GDP.<br />Successive Indian government have steadily Liberalize policies related to investment, banking, trading etc.<br />URBANISATION caused more concentration of middle income and high income people.<br />Hypermarket is emerging as the most favorable format for the time being in India <br />Increasing workforce of women<br />Falling real estate prices<br />Increase in disposable income and customer aspiration<br />Increase in expenditure for luxury items<br />Low share of organized retailing<br />
  29. 29.
  30. 30. Stakeholders & Big Bazaar <br />Main Market/ Non Market stakeholders<br />Market Stakeholders<br /><ul><li> The stockholders
  31. 31. The Big Bazaar Executive
  32. 32. The Employees
  33. 33. The Communities where Big Bazaars located
  34. 34. Consumers
  35. 35. Suppliers
  36. 36. Non profit Organization
  37. 37. Competitors</li></ul>Big Bazaar<br />Contributions<br />Inducements<br />Inducements<br />Contributions<br />Non Market Stakeholders<br /><ul><li> The Labor Unions
  38. 38. The International Retail Stores
  39. 39. The Politicians</li></li></ul><li>
  40. 40. Value System – BIG BAZAAR<br />
  42. 42. Porter’s five force model<br />
  43. 43. Analysis<br />
  44. 44. Resource Analysis<br />Human Resource<br /><ul><li>Well Trained Staff
  45. 45. Appearance
  46. 46. Empowered Individual
  47. 47. Encouraged To Think Out Of The Box
  48. 48. Employ close to 10,000 people and recruit nearly 500 additional people every month
  49. 49. Use Scenario Planning as a tool for Quick Decision Making
  50. 50. Security Gaurds At All Gates</li></li></ul><li>Financial data<br />
  51. 51. CORE COMPETENCY OF BIG BAZAR<br />Core-Competency of Big Bazaar<br /><ul><li>A choice of more than 20000 products
  52. 52. Delivery across more than 1500 cities covering around 16000 pin codes
  53. 53. A dedicated customer care helpline for any queries
  54. 54. Fast delivery-tie up with world leader logistic & transportation services
  55. 55. Talks of Quality and Cost
  56. 56. Special emphasis on apparels and life style products
  57. 57. Providing interesting discounts</li></li></ul><li>
  58. 58. Customer Segmentation <br /><ul><li> Big Bazaar targets higher and upper middle class customers.
  59. 59. The large and growing young working population is a preferred customer segment.
  60. 60. Big Bazaar specifically targets working women and home makers who are the primary decision makers.</li></li></ul><li>Big Bazaar At BCG Matrix<br />M<br />A<br />R<br />K<br />E<br />T<br /> G<br />R<br />O<br />W<br />T<br />H<br />M<br />A<br />R<br />K<br />E<br />T<br /> G<br />R<br />O<br />W<br />T<br />H<br />M<br />A<br />R<br />K<br />E<br />T<br /> G<br />R<br />O<br />W<br />T<br />H<br />M<br />A<br />R<br />K<br />E<br />T<br /> G<br />R<br />O<br />W<br />T<br />H<br />M<br />A<br />R<br />K<br />E<br />T<br /> G<br />R<br />O<br />W<br />T<br />H<br />M<br />A<br />R<br />K<br />E<br />T<br /> G<br />R<br />O<br />W<br />T<br />H<br />M<br />A<br />R<br />K<br />E<br />T<br /> G<br />R<br />O<br />W<br />T<br />H<br />M<br />A<br />R<br />K<br />E<br />T<br /> G<br />R<br />O<br />W<br />T<br />H<br />M<br />A<br />R<br />K<br />E<br />T<br /> G<br />R<br />O<br />W<br />T<br />H<br />M<br />A<br />R<br />K<br />E<br />T<br /> G<br />R<br />O<br />W<br />T<br />H<br />M<br />A<br />R<br />K<br />E<br />T<br /> G<br />R<br />O<br />W<br />T<br />H<br />M<br />A<br />R<br />K<br />E<br />T<br /> G<br />R<br />O<br />W<br />T<br />H<br />M<br />A<br />R<br />K<br />E<br />T<br /> G<br />R<br />O<br />W<br />T<br />H<br />H<br />I<br />G<br />H<br />H<br />I<br />G<br />H<br />H<br />I<br />G<br />H<br />H<br />I<br />G<br />H<br />H<br />I<br />G<br />H<br />H<br />I<br />G<br />H<br />H<br />I<br />G<br />H<br />H<br />I<br />G<br />H<br />H<br />I<br />G<br />H<br />L<br />O<br />W<br />L<br />O<br />W<br />L<br />O<br />W<br />L<br />O<br />W<br />L<br />O<br />W<br />L<br />O<br />W<br />L<br />O<br />W<br />L<br />O<br />W<br />L<br />O<br />W<br />L<br />O<br />W<br />High<br />Low<br />Low<br />High<br />Low<br />High<br />Low<br />High<br />High<br />Low<br />High<br />Low<br />High<br />Low<br />High<br />Low<br />High<br />High<br />Low<br />High<br />Low<br />High<br />Low<br />High<br />Low<br />High<br />Low<br />High<br />Market Share<br />Market Share<br />Market Share<br />Market Share<br />Market Share<br />Market Share<br />Market Share<br />Market Share<br />Market Share<br />Market Share<br />
  61. 61. Organization value and customer value<br />
  62. 62. Strategy<br /><ul><li>Focus on Rural customer?
  63. 63. 73% of population live in 6,00000 villages out of Total population 114 billion.
  64. 64. Minimum support price.
  65. 65. NREGS -100 days employment.
  66. 66. Income from farm products is Tax free.
  67. 67. Customer oriented
  68. 68. Employee oriented- high attrition rate</li></li></ul><li>Thank You<br />
  69. 69. References<br /><br />It Happened in India- KishoreBiyani<br /><br /><br /><br /><br />