Marketing Management Report on Future Group


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Marketing Management Report on Future Group

  1. 1. A MARKETING MANAGEMENT PROJECT ON PREPARED BY: -GROUP A-5 Batch:- 2011-13 Name Roll no. Nikita Bali 11004 Sunny Bhuva 11010 Chandan Pahelwani 11047 Himani Parihar 11049 Sonia Dadlani 10022 SUBMITTED TO:- Dr. Bhavesh Vanpariya Tolani Institute of Management Studies, AdipurTolani Institute of Management Studies, Adipur Page 1
  2. 2. DECLARATION  We Group: A-5 hereby declare that this project is the result of our personal learning outcomes from the subject “Marketing Management”. The analysis and data presented in the project is in accordance with the subject Marketing Management.  The source of information collected is given in the references part at the end of the project. We have not copied the project from any of the internet source. This project is from our personal findings on the company Future Group.  We are also grateful to Dr. Bhavesh Vanpariyafor assisting and guiding us throughout the project.Tolani Institute of Management Studies, Adipur Page 2
  4. 4. INTRODUCTION OF COMPANY Future Group is India‟s largest retailerand one of the leading businesshouses with a strong presence in retail. Its founder and Group CEO is Mr.Kishore Biyani. Future Group India was established in 1994 with a vision to providediverse services in Indian and Global markets. The business areas of FutureGroup cover BPO (Business Process Outsourcing), New Media, SecurityManagement, and Construction. Through their strategic investment andservices, the future of Future Group shows a rising star in the business sky ofIndia. Led by its flagship enterprise, Pantaloon Retail, the group operates over16 million square feet of retail space in 73 cities and towns and 65 rurallocations across India. Headquartered in Mumbai (Bombay), Pantaloon Retailemploys around 30,000 people and is listed on the Indian stock exchanges. Thecompany follows a multi-format retail strategy that captures almost the entireconsumption basket of Indian customers. In the lifestyle segment, the groupoperates Pantaloons, a fashion retail chain and Central, a chain of seamlessmalls. In the value segment, its marquee brand, Big Bazaar is a hypermarketformat that combines the look, touch and feel of Indian bazaars with the choiceand convenience of modern retail.Lines of BusinessThe company is present across several lines of business which have variousformats (stores) operational under it. These include: Food - Food Bazaar, Chamosa, Spoon, Brew Bar, Sports Bar & Sports Bar Express, Cafe Bollywood.Tolani Institute of Management Studies, Adipur Page 4
  5. 5.  Fashion - Pantaloons, Central, aLL, Brand Factory, Blue Sky, Top 10, Fashion Station, Big Bazaar, Lee Cooper (JV), General Merchandise - Big Bazaar, Shoe Factory, Navras, Electronics Bazaar, Furniture Bazaar, KBS FAIR PRICE Home & Electronics - Home Town, eZone, Collection i E-tailing (Online Shopping) - Books & Music - Depot Leisure & Entertainment - Bowling Co., F123 Wellness - Star & Sitara, Tulsi Telecom & IT - Gen M, M Bazaar, M-Port, ConvergeMFUTURE RETAIL:The retails businesses of Future Group in India are divided into three maincategories:Retail forms the core business activity at Future Group and most of itsbusinesses in the consumption space are built around retail. Future Group‟sretail network touches the lives of more than 200 million Indians in 73 citiesand 65 rural locations across the country. The group currently operatesaround 1,000 stores spread over 16 million square feet of retail space.Present in the value and lifestyle segments, the group‟s retail formats cater toalmost the entire consumption expenditure of a wide cross-section of Indianconsumers.Pantaloon Retail India LimitedThe leading retail formats under this include: Pantaloons Stores -lifestyle segments and fashion segment. Big Bazaar - a uniquely Indian hypermarket chainTolani Institute of Management Studies, Adipur Page 5
  6. 6.  Central - a chain of seamless destination malls Food Bazaar - a supermarket chain that blends the look, touch and feel of Indian bazaars with aspects of modern retail like choice, convenience and quality Home Town - , a large-format home solutions store E Zone - consumer electronics Depot - consumer electronics Health & Beauty Malls Online retail through Aadhaar- India‟s leading rural retailing chain, that is present in over 65 locations in rural India. Aadhaar, an agri-service cum rural retail initiative, provides a complete solution provider for the Indian farmer. Furniture Bazaar - specialized formats for home furniture and home furnishing Ethnicity -Indias first concept store, which recreates the experience of a traditional ethnic market in a modern retail format,Joint Ventures with International Brands Indus League Clothing that owns leading apparel brands like Indigo Nation, Scullers and Urban Yoga Galaxy Entertainment Limited that operates Bowling Co, Sports Bar, F123 and Brew Bar French retailer ETAM group, US-based stationary products retailer, Staples and UK-based Lee Cooper. Franchisee of international brands like Marks & Spencer, Next, Debenhams and Guess in India.Tolani Institute of Management Studies, Adipur Page 6
  7. 7. Indian Joint Venture Partners Manipal Healthcare Talwalkars Blue Foods Liberty Shoes.FUTURE CAPITAL HOLDINGSThe financial services of Future Group are taken care by Future CapitalHoldings. These include: Asset Management and consumer credit are the prime focus financial services. Around 1 billion USD have been invested in retail real estate and consumer brands outlets and hotels. Future Money - It is a financial supermarket format providing consumer credit Joint venture with Italian insurance major General Insurance for providing general insurance services. Venture Capital Funds and Private Equity Funds through Capital Holdings, the group‟s financial arm provides investment advisory to assets worth over $1 Billion that are being invested in consumer brands and companies, real estate, hotels and logistics. It also operates a consumer finance arm with branches in 150 locations.BPO (BUSINESS PROCESS OUTSOURCING)Future Group has made major investments in BPO industry as a venture intothe Information Technology Enabled services (ITES) industry. Future Grouphas subsidiaries offering IT based solutions. These include:Tolani Institute of Management Studies, Adipur Page 7
  8. 8.  Language Services Software Development Content EngineeringNEW MEDIAFuture Group has invested in digital media and computer technology forcreating innovative and interactive multimedia presentations. These include: Multimedia Production Broadcasting Publishing DesigningSECURITY MANAGEMENTFuture Group is considered as a reliable tailor-made business and securityservices provider. They develop their own software and machines for securityservices. These include: Access Control Systems Time Attendance Systems CCTV Alarm Management SystemsTolani Institute of Management Studies, Adipur Page 8
  9. 9. CONSTRUCTIONFuture Group brings to you their past experience in quality construction forbuilding and renovating buildings for leasing to business. Future Group is alsoinvolved in the designing, financing and legal considerations of the projectundertaken. The construction activities of Future Group in India include: Leasing LandscapingSUPPLY CHAIN Future Supply Chain Solutions Limited (FSCS), a specialized subsidiary,offers strategic, focused and consolidated approach to meet the group‟s largesupply chain requirements as well as those of select supply and businesspartners. The Future Supply Chain Solutions team currently oversees theoperations of an existing fleet of over 600 dedicated trucks, contracted fromestablished regional and national transport carriers, most of which are nowequipped with GPS sets. In addition it provides integrated end-to-end SCM, warehousing anddistribution, multi-modal transportation and container freight station. The total consolidated warehouse space that the company intends tohave operational by 2010-11 is nearly 7.50 million square feet.Tolani Institute of Management Studies, Adipur Page 9
  10. 10. PRODUCT PORTFOLIO OF FUTURE GROUP As mentioned in the introduction of the company, Future Group‟s corebusiness activity is retail, along with BPO (Business Process Outsourcing), NewMedia, Security Management, and Construction. So here below are the logos oftheir various brands.Please see the IMPORTANT NOTEgiven below the brand images.IMPORTANT NOTE:-From the various brands of the company we havemainly focused on BIG BAZAAR in relating the marketing managementconcepts.Tolani Institute of Management Studies, Adipur Page 10
  11. 11. COMPANY ORIENTATION TOWARDS MARKET PLACEThere are mainly five concepts related to company orientation towards marketplace which are:1. The Production concept2. The Product concept3. The Selling concept4. The Marketing concept5. The Holistic marketing concept The concept which applies to Big Bazaar is The Selling concept. The concept says that the consumer if left alone will not buy enough. This is true and Big Bazaar applies this concept by displaying all the product of different brand and its private brand on the that the customer have a huge variety of products and can select the best out of it and some schemes are also available which attracts the customer to buy more and even purchase other product. Their need to be aggressive communication with the customer. There is sales person at the counter which helps the customer in finding out the best product for himself. Sometimes the customer might be in confusion whether to buy a product or not, at that time the salesperson tell them about the product and its requirement in their lives. After communicating all this about the product the customer then finally makes a decision of making a purchase. So aggressive communication is required with the customer. This concept also says that their needs to be aggressive marketing of the product so that buyer make a purchase. The main purpose of this concept is to sell more and earn more.Tolani Institute of Management Studies, Adipur Page 11
  12. 12.  This concept overall means that sell what you want to instead of what the customer want to buy. Another concept which relates to Big Bazaar is The Marketing concept. The concept says that “Create the best and deliver the best” and Big Bazaar does the same through their SACH brand. They try to create the best by the name of Sachin Tendulkar and deliver the quality product. Next concept comes the “HOLISTIC MARKETING” which means “Everything matters in this market” Integrated Marketing Relationship Holistic Internal Marketing Marketing Marketing Performance Marketing  It is an approach to recognize the scope of Marketing Activities.  These are the four major themes on which any companies overall position can be judged.Tolani Institute of Management Studies, Adipur Page 12
  13. 13.  This concept helps companies to have a complete approach towards their requirement. The integrated marketing includes all the following: Product Promotion Integrated Price Place The integrated marketing includes the four P‟s i.e. Product, price, Place and Promotion. Big Bazaar takes due care of its product quality, it provide the product lower than its cost to the customer, Big Bazaar is set up at such a place which is convenient for the customer and for the business and it does promotion through different media i.e. television, print etc.Tolani Institute of Management Studies, Adipur Page 13
  14. 14.  Performance marketing :- Sales Revenue Ethics Performance Legal Environment Performance includes sales revenue of Big Bazaar, Legal that is the legal aspects of the business, ethics which they follow and environment of the business.Tolani Institute of Management Studies, Adipur Page 14
  15. 15.  Relationship marketing :- Customers Partners Relationship Employees Channel  Relationship:- which includes maintaining relationship with the customers, employees, partners and the channel.  Internal marketing :- Internal Marketing Department Senior Management Other Departments Internal :- which means one department share profit with other departmental of same organisation is called profit internal sharing. Tolani Institute of Management Studies, Adipur Page 15
  16. 16. ANALYZING THE MACROENVIRONMENT NEEDS and TRENDS Successful companies recognize and respond profitably to needs and trends which could not be carried out earlier. Enterprising individuals and companies manage to create new solutions to unmet needs. Similarly, Big Bazaar identified the need for cheap and discounted products. They started the operation with the tag line “Is se sasta aur accha kahin nahin” by providing best products at best price. We distinguish among fads, trends and megatrends. A fad is unpredictable, short-lived, and without social, economic, and political significance. A company can cash in on a fad, but this is more a matter of luck and good timing than anything else. E.g. Beanie Babies. A trend is a direction or sequence of events that has some momentum and durability. Trends are more predictable and durable than fads. A trend reveals the shape of the future and provides many opportunities. The percentage of people who value physical fitness and well-being has risen steadily over the years, especially in the under-30 group, the young women and upscale group. Mega trendshave been described as large social, economic, political and technological changes that are slow to form, and once in place, they influence us for some time between seven and ten years, or longer.Tolani Institute of Management Studies, Adipur Page 16
  17. 17.  From the above, study we would say that the concept of Mega Trends applies to Big Bazaar as people of India are not used to Big Bazaar (Retail Model). It takes time to adopt it. People are still buying the products from the open market in traditional way. Identifying the Major Forces Companies and their suppliers, marketing intermediaries, customers, competitors, publics all operate in a macro environment of forces and trends that shape opportunities and pose threats. These forces are not controllable but the company must monitor and respond timely to these forces. In the economic arena, companies and consumers are increasingly affected by global forces. The beginning of the new century brought a series of new challenge: the steep decline of the stock market, which affected savings, investment, and retirement funds; increasing unemployment; corporate scandals; and of course, the rise of terrorism. These dramatic events were accompanied by the continuation of other, already-existing longer-term trends that have profoundly influenced the global landscape. Within the rapidly changing global picture, the firm must monitor six major forces: demographic, economic, social-cultural, natural, technological, and political-legal. Technological: One of the most dramatic forces shaping people‟s lives is technology. Technology has released such wonders as penicillin, open-heart surgery, and the birth-control pill.Tolani Institute of Management Studies, Adipur Page 17
  18. 18.  Big Bazaar planning and design used advance technologies like scenario- planning and story-telling. These techniques were mainly used for store- design layout, store-location selection. The strategy to use user-focused, prototype-based development tool made the brand adapt to the fast- changing external environment. Social Cultural: Society shapes our beliefs, values, and norms. People absorb, almost unconsciously, a worldview that defines their relationship to themselves, to others, to organizations, to society, to nature, and to the universe. Similarly, Big Bazaar launched a campaign Des Badla Ab Vesh Badlo (nation is changing, so change the way you dress), Sone ki Chidiya two years ago. It also follows consumer segmentation according to social- cultural factors. It also promotes environment friendly carry bags with easy to dispose. It also undertakes various activities for the welfare of the society popularly known as corporate social responsibility. Political-Legal: Marketing decisions are strongly affected by developments in the political and legal environment. This environment is composed of laws, government agencies, and pressure groups that influence and limit various organizations and individuals. Sometimes these lows are creating new opportunities for business. Big bazaar is following various laws like labour law and consumer law. It also regulates various safety measures in the store. Big bazaar is also following various government policies, tax policies with regularly paying tax and filling return.Tolani Institute of Management Studies, Adipur Page 18
  19. 19. CUSTOMER PERCEIVED VALUE Consumers are more educated and informed than ever, and they havethe tools to verify companies‟ claims and seek out superior alternatives. How then do customers ultimately make choices ? they tend to be valuemaximizers, within the bounds of search costs and limited knowledge, mobilityand incomes. Customers estimate which offer will deliver the most perceivedvalue and act on it. Whether the offer lives up to the expectations affectscustomer satisfaction and the probability that the customer will purchase theproducts again. Customer-perceived value is the difference between the prospectivecustomer‟s evaluation of all the benefits and all the costs of an offering and theperceived alternatives. Total customer benefits is the perceived monetary value of the bundleof economic, functional and psychological benefits customers expect form agiven market offering because of the products, services, personnel and imageinvolved. Total customer cost is the perceived bundle of costs customers expectto incur in evaluating, obtaining, using and disposing of the given marketoffering, including monetary, time, energy and psychological costs.CONSUMER INSIGHT AND PERCEPTIONBig Bazaar is based on 3-C theory of Kishore Biyani. The three C symbolizeChange, Confidence and Consumptionand according to this theory “changeandTolani Institute of Management Studies, Adipur Page 19
  20. 20. confidence is leading to rise in consumption”. They divided Indian customers inthree categories:-India One Consuming class, constitute only 14% of Indian Population They are upper middle class and most of customers have substantial disposable income Initial focus of Big BazaarIndia Two Serving Class which includes people like drivers, household helps, office peons, washer man etc. For every India One, there are at least India two and have around 55% of Indian population.India Three Struggling class, remaining population of India. Cannot afford to inspire for better living, have hand-to-mouth existence. Needs cannot be addressed by current business modelsThe potential customers of Big Bazaar are India One and India Two. Thecustomer insights were developed by close observation of the target set. Theinsights that came out were:- The clean and shiny environment of modern retail stores creates the perception that such store are too expensive and exclusive, and are not meant for India two.Tolani Institute of Management Studies, Adipur Page 20
  21. 21.  India two find moves and find a lot of comfort in crowds, they are not individualistic. They prefer to be in queues. Indian-ness is not about swadeshi, it‟s about believing in Indian ways of doing things. Indian customers prefer to purchase grains, grams etc. after touching them, so it‟s better not to sell in polythene packs. Big Bazaar has counters where you can touch wheat, rice, sugar etc. before purchasing. Advertisements about schemes and offers through local newspapers, radio in local languages inspires customer more than the traditional ways. The guards, salesman at the Big Bazaar outlets should not look smarter than customer, so they prefer not to have tie etc. in their uniform. Hypermarkets in India should be situated in city unlike western countries where they are located away from city. Purchased Bags/goods should be sealed at checkout as customer can enter and exit multiple times. For Indians, shopping is an entertainment; they come in groups, with families so Big Bazaar should offer something to every section of family. That also led separate section for clothes, vegetables, food etc. i.e. Multiple clusters within a bazaar. Developed a diversity tracing.Tolani Institute of Management Studies, Adipur Page 21
  22. 22. ANALYZING CONSUMER BEHAVIOR Consumer behavior is the study of how individuals, groups andorganizations select, buy, use, anddispose of goods, services, ideas, orexperiences to satisfy their needs and wants. A consumer‟s buying behavior is influenced by cultural, social, and personalfactors. Cultural factors exert the broadest and deepest influence. Factors affecting consumer behaviour :- Cultural factors :- Culture, subculture and social class are particularly important influences on consumer buying behaviour. In the case of big bazaar, the frequency of visits by the customer and the kind of products they buy influence their buying behaviour pattern. The cultural values of the customer also influence their visit to buy the required products at the big bazaar. Social factors :- Social factors such as reference groups, family and social roles, statuses affect our buying behaviour. Reference groups involve family, friends and neighbours. Customers of big bazaar might influence others persons of their reference groups to buy products from big bazaar. Social status of the people influences their buying behaviour. For example, high class people go to big bazaar for shopping. Personal factors :- Age and stage in the life cycle are the personal factors which influence customer buying behaviour.Tolani Institute of Management Studies, Adipur Page 22
  23. 23.  Children will buy different products from big bazaar according to their choice and middle-aged persons and old-aged persons buy different products. So the products for all the groups of the family are available at big bazaar, this influence their buying behaviour. Lifestyles of the people also influence buying behaviour. Some people are uneasy to go to the small kiryana shop for their shopping. Buying Behaviour process :- Total set Awareness Consideration •Big Bazaar set set Choice set •V-mart •Big Bazaar •Big Bazaar •Reliance •V-mart •Reliance Decision super •Reliance Super Big Bazaar •Star Bazaar Super •V-mart Reliance BIG BAZAAR •Local •Star Bazaar Super department al store The above chart shows the buying behaviour process of the customers. From the total set of Big bazaar, V-mart, Star bazaar, Reliance super and a local departmental store. The customers are aware about Big bazaar, Reliance super, V-mart and Star bazaar. To buy their required products and for shopping they consider Big bazaar, Reliance super and V-mart. Finally customers have a choice to make either to visit Big bazaar or Reliance super. At last consumers take the decision to visit Big Bazaar for the shopping.Tolani Institute of Management Studies, Adipur Page 23
  24. 24. BASES FOR MARKET SEGMENTATION1. GEOGRAPHIC SEGMENTATION:- In this segmentation company calls for division to the market into different geographical units such as nation, state, regions, countries, cities, or neighborhoods. As we are taking one product of our company future group we are going to discuss various segmentations on big bazaar. I. City:- big bazaar is situated in different city like it is in Ahmedabad, Vapi, Vadodara, Rajkot, Surat, Nashik, Nasik, Bharuch, Bhopal, Hyderabad. It is most of situated in metro city where the population is more. II. Rural areas and Urban area:- future group has segmented its retail into two area rural and urban area for rural area they made aadhaar retail by this they targeted that market also those people who all are living over there.Tolani Institute of Management Studies, Adipur Page 24
  25. 25. Rural area Now in urban area big bazaar is there so that people can get all things in one place by saving their precious time and by giving attractive discount on so much durable and non-durable goods plus they are offering service also. These two segmentations are related with future group so that they can target mass of people easily.2. DEMOGRAPHIC SEGMENTATION:-Big bazaar has done full segmentation on demographic bases they are as follows:-  Age  Family size  Gender  Income  OccupationTolani Institute of Management Studies, Adipur Page 25
  26. 26.  EXPLANATION:-  Age:- Big bazzar has targeted there customer age wise for kids like they have different section for kids toys, shoes, garments etc. For teenagers they have different section they have café shops in big bazzar malls so they that can refresh them self by doing shopping. For house wife they give different discount or they have different type days like sabse sastein 4 din or 5 din maha bachat. In this way they segmented it age wise.  Family size:- big bazaar also consider family size in its segmentation they provide all quantity of product there were 10 kgs bags are also available and 5 kgs 1kgs bags are also available so that neutral family can also fulfill their need and joint family people will also satisfied there need and if customer want more quantity then they also give different discount our they give buy one get one free offer to them.  Gender:- big bazaar fulfill the need of both gender they get things whatever they need whether they are male or female they had also celebrate some special days for male and female that is “sabse chikna kaun campaign”, “ detergent mela”, “ india beverage league”, “ dal chawl mela” etc.Tolani Institute of Management Studies, Adipur Page 26
  27. 27.  Income:- big bazaar target higher, middle and lower class people so that all kind of people come in there segmentation in India higher class people are less then lower class people so for them big bazaar brings some days so that mass of people get attracted and buy many things from there retail shop. Like sabse sastein 3 din, 5 din maha bachat.Tolani Institute of Management Studies, Adipur Page 27
  28. 28.  Occupation:- big bazaar specifically targets working women and home makers who are the primary decision makers. The large and growing young working population is a preferred customer segment. So that they get convenience goods for them easily and at one place.3. Psychographic:-  Lifestyle:- big bazaar enrich the life style of the people they can fulfill needs of whole life in less price by getting different discounts nd skims for them and they fell their status has also been increase by doing shopping in mall.4. Behavioral:-  Occasions  User status EXPLANATION:-  Occasions:- big bazaar celebrates days and give special offer for the customer like on every last week of the year the clear there stock or they give special winter or summer offer for their customer to buy more and spend less.  User status:- there were some user status who came to big bazaar for first time and there were some people who go many time big bazaar. Like they go every weekend or some go in one month.Tolani Institute of Management Studies, Adipur Page 28
  29. 29. FIVE PATTERNS OF TARGET MARKET SELECTION Single segment concentration Selective specialization Product specialization Market specialization Full market coverage In big bazaar there prevails full market coverage and market specialization.They cover full market by income, age, gender, family size.  Full Market Coverage:- M1 M2 M3AgeGenderIncome  Market Specialization:- M1 M2 M3Retail In market specialization big bazaar has their market specialization in retail.Tolani Institute of Management Studies, Adipur Page 29
  30. 30. BRAND ELEMENTS Meaning of Brand:-  “A brand is a name, term, sign, symbol or design or combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors”.  A brand is a product which has earned a place in consumer‟s life through perception, experience and beliefs .It is the sum of how consumers feel about a product. Brand Elements:-  Brand elements are those trademark devices that identify and differentiate the brand.  Brand elements are mainly brand name, slogan, character, symbols, URL, person and logos.  Our company “FUTURE GROUP” consists of the following brand elements which differentiate it from others. 1. Brand Slogan: „India Tomorrow‟ and „Udna hai aj, abhi‟ of Future Group and „Is se sasta aur accha kahin nahi!, of Big bazaar. 2. Character: Future group, Big Bazaar 3. Logo: BirdTolani Institute of Management Studies, Adipur Page 30
  31. 31. 4. Person: Cricketer M.S Dhoni and Bollywood actress Asin for Fashion at big bazaar.  There are some private brands of future group which includes FUTURE GROUP‟s tie up with Sachin Tendulkar for the brand “SACH” and some of its private brands.  Future Group has successfully launched a series of private brands ranging in foods with Tasty Treat, Home and personal care range with Clean mate& Care mate, staples with Fresh & Pure and Premium Harvest, and Sach isa big leap forthe company in the direction building its private brands portfolio through its association with an iconic figure like Sachin Tendulkar, will be setting the tone based on Sachin‟s values and mass appeal.Tolani Institute of Management Studies, Adipur Page 31
  32. 32.  Future Group private brands have always launched their products keeping “Indianness” in mind through consumer insights. Launch of Tasty Treat soups with a mug and Tasty Treat Cornflakes with a bowl are some of the success stories in past . Past one year has seen aggressive roll-outs from private brands with products like Sach toothbrush, Clean mate Diapers, Tasty Treat noodles and soups with both classic and Chinese range, Fresh and pure Desi ghee which has helped in giving consumer quality products at great value.  Future group also have tie up with other companies which are as follows:Tolani Institute of Management Studies, Adipur Page 32
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  34. 34. PRODUCT LIFE CYCLE A company‟s positioning and differentiation stratergy must change as the product, market and competitors change over the Product life cycle (PLC). Prodcut life cycle is made up of four things: 1) Products have a limited life. 2) Product sales pass through distinct stages, each posing different challenges, opportunities and problems to the seller. 3) Profit rise and fall at different stages of the product life cycle. 4) Products require different marketing, financing, manufacturing, purchasing and human resource stratergies in each life-cycle stage. The life of a product passess through four different stages mainly:-1. INTRODUCTION STAGE:-  The seller tries to stimulate demand regarding his product.  He makes promotion campaigns to increase public awareness regarding his product.  He tries to explain the consumers how the product is to be used and also explains the product features, advantages and benefits (FAB).  The seller at this stage might lose money, but can expect to make profits in the future. As the product is just introduced in the market there are chances that it might be a failure or a winner.  Sales are low and profits are below the line because the costs incurred by the seller on the product at this stage are greater than the amount of money he makes after selling the product.Tolani Institute of Management Studies, Adipur Page 34
  35. 35.  The seller might have “negative” profit i.e loss. Mainly the product at this stage faces more of loss then earning profit for as the product is just introduced and people are unaware regarding the product.  Need to spend a lot of money on promotion. For the product which is just introduced in the market it is impossible to compete which the similar type of product, so it is important to make people aware of the product by promoting it through different mediums and heavy expenditure is incurred on promotion at this stage.  Limited Product Model  At this stage their might be penetration pricing which means low price of the product or skimming pricing which means high price of the product at its introduction stage.2. GROWTH STAGE:-  Next comes the growth stage wherein the cosumers are aware of the product, its usage, benefit, features etc.  At the growth stage the seller tries to sell a lot and he tries to sell as much as he can to cover up his loss incurred at the introduction stage .  As the product is well known by the consumer other competitor companies watch it and tries to introduce a competitor product.  E.g. Men‟s Cosmetic. When the company firstly introduce the Men‟s Cosmetic cream many people were not aware of it but slowly and gradually as people became aware another company launched the competitor product of it to capture the market.  Growth of a product continues until too many competitors are in the market - and the market is saturated.Tolani Institute of Management Studies, Adipur Page 35
  36. 36.  At the end of the growth stage, profits start to decline because when competition arises seller spends more money on promotion to keep sales going.  Spending money on promotion cuts into your profit. As a competitor product comes in the market its important to keep our product sales go and for that promotion of it becomes important which ultimately cuts our profit.  Large company may acquire small pioneering firms.  Gaining wide distribution is a key goal.At this stag it is important that our product is available at every place, so that our consumer don‟t find any difficulty in getting it.  At this stage the product achieves sales volume which createseconomies of scale.3. MATURITY SATGE:-  When a product achieves the growth which includes increase profit and sales the next stage from which it passes through is the MATURITY STAGE.  At this stage there are many competitors who have joined and the market is saturated.  The only way to sell the product is to lower the price and so the profits decrease.  It is difficult to tell the difference in our product since most of the competitor product has the same F.A.B. - Features, Advantages & Benefits.  At this stage competition can get “Horrible” and commercials are intense.  That is to say, we have commercials almost begging the customer to still buy your product because you still make it just as good.  An emphasis on product style rather than function.  The marketplace is approaching saturation.Tolani Institute of Management Studies, Adipur Page 36
  37. 37. 4. DECLINE STAGE:-  Newer products are now more attractive - even a low-low price does not make consumers want to buy.  Profit margin declines - and so the only way to make money is to sell a high volume.  The rate of decline is governed by: How rapidly consumer testes change or How rapidly substitute product are adopted  To increase volume you try to Increase the number of customers - get new customers Increase the amount each customer usesTolani Institute of Management Studies, Adipur Page 37
  38. 38.  The above is the chart showing the four stages of product life cycle. Big Bazaar comes under the RETAIL head of Future Group and it is at the maturity stage. The following points can be considered:- 1. Big Bazaar keeps many offers to attract its potential customer like “Buy one, get one free”, „Best deals‟ and „sabse saste 3 din‟. 2. It does more of promotional campaigning through print media, television media to get it customer aware regarding the offers available by them. It also does promotion through celebrities like Dhoni and Asin for the fashion at big bazaar which help them to increase their sales and the other points are explained above.Tolani Institute of Management Studies, Adipur Page 38
  39. 39. 3. There‟s an increased competition of big bazaar with its competitors. 4. Big bazaar after coming at this stage want to stabilize it profit without making any losses.Tolani Institute of Management Studies, Adipur Page 39
  40. 40. PRODUCT STRATEGIES Product Levels: customer value Hierarchy  Product is not only an offering but it is something beyond that. Is is something which can satisfy the wants and need, which includes special services or goods, events, persons, etc.  Product Levels are categorized in five levels which any marketer has to follow which adds more value to customers and these five create customer value hierarchy. Augmented Product Expected Product Basic Product Core Benefit  These four are the first four levels of customer value hierarchy. Core Benefit is what actually a customer wants. It is also known as fundamental level. Marketers have to see themselves as benefit providers and thus this first step is called core benefit.Tolani Institute of Management Studies, Adipur Page 40
  41. 41.  Basic Product is the job of marketer to convert core benefit into basic requirement. Providing any service or product with more facility is the role of basic product.  The third level is Expected Product. Wherein marketer is serving the product with those particular conditions & expectations which customer have when they buy any product.  At the fourth level stands Augmented Product. It is that level where it exceeds all the expectations of the customers. On this level tough competition starts and the main focus of marketers is to survive in this competition and give their product a position in the market.  The fifth level is Potential Product. This stage is where a product exceeds even augmentation. It transforms the product in the future in such a way that customer had never expected or even thought of it. Potential Product is a stage where companies have to continuously find something new for the customers to be served so as to satisfy them. In the above mentioned chart we have not shown potential product as still many companies are trying to reach this level. Future Group‟s Big Bazaar is on the fourth level. Let us see in more detail:-Tolani Institute of Management Studies, Adipur Page 41
  42. 42. Exceeding the expectations Discounts & Allownaces Serving them more widely Providing Daily Needs  Here we can see that the first level core benefit of Big Bazaar is to provide daily needs of the people at one place. As we know that Big Bazaar is very wide and has all products like food items, perishable products, clothing, apparels etc.  Second is Basic Product wherein Big Bazaar tries to serve all these with wide range of options to choose. For e.g. If a customer wants to buy a shampoo, in Big Bazaar they will have lots of choices of all the brands like Head & Shoulders, Pantene, Dove etc… Customer here gets wide range of any product what they want to buy.  The third is Expected Product. Here the customer expects discounts, allowances, additional benefits as they think that this is such a big place wherein all the products are available, so some discounts can be offered to them. For e.g. If a customer purchases many items of his home needsTolani Institute of Management Studies, Adipur Page 42
  43. 43. and personal needs, then they will expect to get some discounts and off on some products.  Fourth is Augmented Product. Here Big Bazaar is on the level of serving the Augmented Product. As we know something which exceeds customer expectations that is known as Augmented Product. Here Big Bazaar give the facility of home delivery to the customers at their convenient time at their home. This is something which customers of Big Bazaar had never expected. And they are very well satisfied with this service provided to them.  And now Potential Product, which is not shown in that diagram because still Big Bazaar has not yet reached that level of exceeding the Augmented service provided by them to their customers. In future they can undergo some more transformations of their products and services and then it can reach the fifth level.  There many companies including Big Bazaar who are trying to find something new for the customers. Potential Product is something very different from what they provide. Companies are still between Expected & Augmented product level. As any company including Big Bazaar reaches the Augmented Level that is very soon accepted by the customers and they start expecting to get this service for the lifetime and thus this augmented product turned into expected product. Thus again they have to search for new Augmented product to be served to the customers which exceed their expectation.  On this level continuous competitions is to be faced by the marketers to sell their product and maintain their position in the market. Also they have to maintain trust and expectations of their customers. They cannot afford to lose their customers on this level.Tolani Institute of Management Studies, Adipur Page 43
  44. 44.  Product Classifications  Marketers have classified the product into different categories:- Product Consumer Durability Tangibility or Industrial  As we can see in the above diagram that products are classified in three categories that is Durability, Tangibility and Consumer or Industrial. All these have an appropriate marketing strategy.Tolani Institute of Management Studies, Adipur Page 44
  45. 45. Durability Tangibility Durable Nondurable Service  Nondurable Goods: These are tangible goods and are consumed in one or few uses, for e.g. Soft Drinks, Juices, Soaps, Shampoos, Milk etc…  These goods are purchased more frequently and therefore marketers decide to make them available in lots of quantity and with lots of options available to customers. This helps customers to choose from wide range available.  Durable:- These also are tangible and survive for many uses. Like Refrigerator, tools, clothing etc…  Services:- These are intangible.  Big Bazaar provides all the kind of products durable and non durable. Food items, perishable products, clothing, apparel etc…  Then use of goods that is consumer or industrial. Big Bazaar provides goods which are Consumer goods. Convenience goods are purchased more frequently by customers as it takes minimum effort to buy. Also it provides shopping goods which customers buy after comparing the price, quality, style. Then comes unsought goods which customer knows about but they don‟t think much of buying those kind of goods. For e.g. Life Insurance.Tolani Institute of Management Studies, Adipur Page 45
  46. 46.  Product Mix  A product system is a group of different but related items that function in a compatible manner. Under this product system there is product mix.  A Product Mix is set of all the product and items a particular seller offers to sell. It is also called Product Assortment. A company‟s product mix has certain length, width & depth of its products. Product Mix Length Width DepthTolani Institute of Management Studies, Adipur Page 46
  47. 47.  Firstly let us see what is length, width and depth of the product with an example. Here we will take the example of Future Group. Retail Width of Partnership Future Services Group Finance  As we can see in the above diagram that there are four things in width of future group.Tolani Institute of Management Studies, Adipur Page 47
  48. 48.  Now let us see Length of each:-  Length of Retail: Lifestyle Value Digital  Lifestyle includes Brand Factory, Central, Home Town, Planet Sports, Pantaloons fresh fashion.  Value includes Big Bazaar, Food Bazaar, Fairprice.  Digital includes Future This is online shopping facility provided to the customers to get more benefit.Tolani Institute of Management Studies, Adipur Page 48
  49. 49.  Length of Finance:- Finance Future Future Future Capital Generali Venture. Holdings  Finance has different section that is Future capital holdings. In this capital is provided to small companies who require finance.  Future Generali has two sectors General Insurance & Life Insurance.  Future Venture has tie ups with many other brands to make it more popular and give customers a wide range to choose from. The most popular venture of Future Group was with Aadhar Retailing Limited. This was a venture for rural areas and to serve people of rural areas.Tolani Institute of Management Studies, Adipur Page 49
  50. 50.  Length of Services:- Logistics & Learning & Media supply Development Brands Telephony  Future Group has many learning programs for the people in tie up with IGNOU.  It has also launched India‟s first owned retail channel named Future Tv  Also it has launched a magazine named My World.  It has tie up with many Brands to widen the range and give people many options.  It has tie up with Tata Docomo and is serving T24.Tolani Institute of Management Studies, Adipur Page 50
  51. 51.  Length of Partnership:- This is different types covered of future group in which ways they carry over their partnerships. Collaborations Assistnace Brand Building  Here they Collaborate with many service providers & other big names of products. They join hands to build the brand and widen the range of their product list.Tolani Institute of Management Studies, Adipur Page 51
  52. 52. PRICING STRATEGIES PRICE MIX:-  Value pricing  Psychological pricing  Loss leader Explanation:-  Value pricing:- value pricing means company wants to win loyal customers by changing a fairly low price for a high-quality offering. Same way big bazaar do the same thing big bazaar give lots of discount to attract the customer so that they can get good quality product in low price.  Psychological value:- psychological value pricing means that the seller use this to attract its customer by keeping less numerical value so that psychologically customer thing that there they are saving some amount then other place eg they are getting thing in 111,999,9999 or they use that by giving high and low price of the commodity and saying save Rs 2 or 3 there they are playing with the mind of the customer very easily.Tolani Institute of Management Studies, Adipur Page 52
  53. 53.  Loss leader:- big bazaar is also applying loss leader value in loss leader the company is bearing loss of one product for selling the another product like big bazaar give so many time offer like buy one get one free and they are doing this because some time they have to clear there dead stock so that by not getting any price of the commodity at least they get something of the commodity or product.Tolani Institute of Management Studies, Adipur Page 53
  54. 54. DISTRIBUTION STRATEGIES The producer and the final customer are part of every channel. We will use the number of intermediary levels to designate the length of a channel. Figure illustrates several consumer-goods marketing channels of different lengths. A zero-level channel (also called a direct-marketing channel) consists of a manufacturer selling directly to the final customer through Internet selling, door-to-door sales, home parties, mail order, telemarketing, TV selling, manufacturer-owned stores, and other methods. A one-level channel contains one selling intermediary, such as a retailer. A two-level channel contains two intermediaries; a three-level channel contains three intermediaries. From the producer‟s point of view, obtaining information about end users and exercising control becomes more difficult as the number of channel levels increases. Big Bazaar is following one level distribution channel in which it performs role of retailer and purchase goods directly from producer and then sell it to the customer. Distribution channel is one of the reason why Big Bazaar is able to sell product at lower cost. The chart given below shows the following:-Tolani Institute of Management Studies, Adipur Page 54
  55. 55. Tolani Institute of Management Studies, Adipur Page 55
  56. 56. PROMOTION MIX  Promotion Mix is a system wherein different types of methods are followed to promote a product and make it popular. Future Group also undertakes Promotion Mix for Big Bazaar. There is thin line difference between Advertisement and Promotion. Let us see each in detail:-  For Advertisement Big Bazaar choose Television Ads, pamphlets, FM radio in metro cities. They keep showing about new offers for the customers. Also with the help of Internet, Brochures & Direct Mail Big Bazaar try to attract their customers more and more.  The second is Promotion of the product. It has to be decided how to promote the product in what ways and with different tools available. Big Bazaar choose to promote themselves by providing its customers discount coupons, Membership Cards, On time Home Delivery, cash refund offers, Price Packs, Gifts, Points redeem option to get more discount, Organizing different contest, Product warranties. All these are opted by Big Bazaar to promote themselves.  Big Bazaar provides some or other scheme and offers for the customer every time one after other to attract the customers and maintain their value with them.  Promotion Mix plays a very important role for any companies development. This helps to establish themselves and maintain their position in the market.Tolani Institute of Management Studies, Adipur Page 56
  57. 57. PACKAGING AND LABELING PACKAGING:- Packaging is defined as all the activities of designing and producing thecontainer for a product. Packages might include up to three levels of material.Like big bazaar have their packaging of their polybag which they give to theircustomer when they shop from there store and go home packaging is also asign of remembrance or for promotion of the shopping centre name or productname. For some company they take packaging very seriously and they say thatpackaging is very crucial part of their product. LABELING:- The label may be a simple tag attached to the product or an elaboratelydesigned graphic that is part of the package. It might carry only the brandname, or a great deal of information. Even if the seller prefers a simple label,the law may require more. As big bazaar has some of their brands name sach,treat etc. They also contains label on the back side which is shown in picture ofsach toned milk label helps the customer to now that whether the product ishealthy or not and what kind of ingredients it contain.Tolani Institute of Management Studies, Adipur Page 57
  58. 58. Tolani Institute of Management Studies, Adipur Page 58
  59. 59. REFERENCESSearch engine :- WWW.GOOGLE.COMWEBSITES :- WWW.FUTUREGROUP.IN HTTP://EN.WIKIPEDIA.ORG/WIKI/FUTURE_GROUPTolani Institute of Management Studies, Adipur Page 59
  60. 60. Thank YouTolani Institute of Management Studies, Adipur Page 60