Marketing Management Report on Future Group

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, Adipur

Tolani Institute of Management Studies, Adipur Page 1

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.


Sr no. Title Page no.
1 INTRODUCTION OF COMPANY 4
2 PRODUCT PORTFOLIO 10
3 COMPANY ORIENTATION TOWARDS 11
MARKET PLACE
4 ANALYZING THE 16
MACROENVIRONMENT
5 CUSTOMER PERCEIVED VALUE 19
6 ANALYZING CONSUMER BEHAVIOR 22
7 BASES FOR MARKET 24
SEGMENTATION

8 FIVE PATTERNS OF TARGET 29
MARKET SELECTION

9 BRAND ELEMENTS 30
10 PRODUCT LIFE CYCLE 34

11 PRODUCT STRATEGIES 40
12 PRICING STRATEGIES 52

13 DISTRIBUTION STRATEGIES 54
14 PROMOTION MIX 56
15 PACKAGING AND LABELING 57

16 VIDEO ADVERTISEMENTS OF FUTURE 59
GROUP
17 REFERENCES 60


INTRODUCTION OF COMPANY
Future Group is India‟s largest retailerand one of the leading business
houses 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 provide
diverse services in Indian and Global markets. The business areas of Future
Group cover BPO (Business Process Outsourcing), New Media, Security
Management, and Construction. Through their strategic investment and
services, the future of Future Group shows a rising star in the business sky of
India.

Led by its flagship enterprise, Pantaloon Retail, the group operates over
16 million square feet of retail space in 73 cities and towns and 65 rural
locations across India. Headquartered in Mumbai (Bombay), Pantaloon Retail
employs around 30,000 people and is listed on the Indian stock exchanges. The
company follows a multi-format retail strategy that captures almost the entire
consumption basket of Indian customers. In the lifestyle segment, the group
operates Pantaloons, a fashion retail chain and Central, a chain of seamless
malls. In the value segment, its marquee brand, Big Bazaar is a hypermarket
format that combines the look, touch and feel of Indian bazaars with the choice
and convenience of modern retail.

Lines of Business

The company is present across several lines of business which have various
formats (stores) operational under it. These include:

 Food - Food Bazaar, Chamosa, Spoon, Brew Bar, Sports Bar & Sports Bar
Express, Cafe Bollywood.


 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, KB'S FAIR PRICE
 Home & Electronics - Home Town, eZone, Collection i
 E-tailing (Online Shopping) - www.futurebazaar.com
 Books & Music - Depot
 Leisure & Entertainment - Bowling Co., F123
 Wellness - Star & Sitara, Tulsi
 Telecom & IT - Gen M, M Bazaar, M-Port, ConvergeM

FUTURE RETAIL:
The retails businesses of Future Group in India are divided into three main
categories:

Retail forms the core business activity at Future Group and most of its
businesses in the consumption space are built around retail. Future Group‟s
retail network touches the lives of more than 200 million Indians in 73 cities
and 65 rural locations across the country. The group currently operates
around 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 to
almost the entire consumption expenditure of a wide cross-section of Indian
consumers.

Pantaloon Retail India Limited

The leading retail formats under this include:

 Pantaloons Stores -lifestyle segments and fashion segment.
 Big Bazaar - a uniquely Indian hypermarket chain


 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 futurebazaar.com
 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 -India's 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.


Indian Joint Venture Partners

 Manipal Healthcare
 Talwalkar's
 Blue Foods
 Liberty Shoes.

FUTURE CAPITAL HOLDINGS

The financial services of Future Group are taken care by Future Capital
Holdings. 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 kshitijfund.com
 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 into
the Information Technology Enabled services (ITES) industry. Future Group
has subsidiaries offering IT based solutions. These include:


 Language Services
 Software Development
 Content Engineering

NEW MEDIA
Future Group has invested in digital media and computer technology for
creating innovative and interactive multimedia presentations. These include:

 Multimedia Production
 Broadcasting
 Publishing
 Designing

SECURITY MANAGEMENT
Future Group is considered as a reliable tailor-made business and security
services provider. They develop their own software and machines for security
services. These include:

 Access Control Systems
 Time Attendance Systems
 CCTV
 Alarm Management Systems


CONSTRUCTION
Future Group brings to you their past experience in quality construction for
building and renovating buildings for leasing to business. Future Group is also
involved in the designing, financing and legal considerations of the project
undertaken. The construction activities of Future Group in India include:

 Leasing
 Landscaping

SUPPLY CHAIN

Future Supply Chain Solutions Limited (FSCS), a specialized subsidiary,
offers strategic, focused and consolidated approach to meet the group‟s large
supply chain requirements as well as those of select supply and business
partners.

The Future Supply Chain Solutions team currently oversees the
operations of an existing fleet of over 600 dedicated trucks, contracted from
established regional and national transport carriers, most of which are now
equipped with GPS sets.

In addition it provides integrated end-to-end SCM, warehousing and
distribution, multi-modal transportation and container freight station.

The total consolidated warehouse space that the company intends to
have operational by 2010-11 is nearly 7.50 million square feet.


PRODUCT PORTFOLIO OF FUTURE GROUP

As mentioned in the introduction of the company, Future Group‟s core
business activity is retail, along with BPO (Business Process Outsourcing), New
Media, Security Management, and Construction. So here below are the logos of
their various brands.

Please see the IMPORTANT NOTEgiven below the brand images.

IMPORTANT NOTE:-From the various brands of the company we have
mainly focused on BIG BAZAAR in relating the marketing management
concepts.


COMPANY ORIENTATION TOWARDS MARKET PLACE

There are mainly five concepts related to company orientation towards market
place which are:
1. The Production concept
2. The Product concept
3. The Selling concept
4. The Marketing concept
5. 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 shelves.so 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.


 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.


 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.


 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.


 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.


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.


 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.


 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.


CUSTOMER PERCEIVED VALUE

Consumers are more educated and informed than ever, and they have
the tools to verify companies‟ claims and seek out superior alternatives.

How then do customers ultimately make choices ? they tend to be value
maximizers, within the bounds of search costs and limited knowledge, mobility
and incomes. Customers estimate which offer will deliver the most perceived
value and act on it. Whether the offer lives up to the expectations affects
customer satisfaction and the probability that the customer will purchase the
products again.

Customer-perceived value is the difference between the prospective
customer‟s evaluation of all the benefits and all the costs of an offering and the
perceived alternatives.

Total customer benefits is the perceived monetary value of the bundle
of economic, functional and psychological benefits customers expect form a
given market offering because of the products, services, personnel and image
involved.

Total customer cost is the perceived bundle of costs customers expect
to incur in evaluating, obtaining, using and disposing of the given market
offering, including monetary, time, energy and psychological costs.

CONSUMER INSIGHT AND PERCEPTION

Big Bazaar is based on 3-C theory of Kishore Biyani. The three C symbolize
Change, Confidence and Consumptionand according to this theory “changeand


confidence is leading to rise in consumption”. They divided Indian customers in
three 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 Bazaar

India 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 models

The potential customers of Big Bazaar are India One and India Two. The
customer insights were developed by close observation of the target set. The
insights 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.


 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.


ANALYZING CONSUMER BEHAVIOR

Consumer behavior is the study of how individuals, groups and
organizations select, buy, use, anddispose of goods, services, ideas, or
experiences to satisfy their needs and wants.

A consumer‟s buying behavior is influenced by cultural, social, and personal
factors. 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.


 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.


BASES FOR MARKET SEGMENTATION

1. 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.


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
 Occupation


 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.


 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.


 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.


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 M3

Age

Gender

Income

 Market Specialization:-

M1 M2 M3

Retail

In market specialization big bazaar has their market specialization in retail.


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: Bird


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.


 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:


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.


 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.


 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.


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 uses


 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.


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.


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.


 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:-


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 needs


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.


 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.


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.


 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 Depth


 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.


 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 Bazaar.com. This is online shopping facility
provided to the customers to get more benefit.


 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.


 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.


 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.


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.


 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.


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:-


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.


PACKAGING AND LABELING

 PACKAGING:-

Packaging is defined as all the activities of designing and producing the
container 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 their
customer when they shop from there store and go home packaging is also a
sign of remembrance or for promotion of the shopping centre name or product
name. For some company they take packaging very seriously and they say that
packaging is very crucial part of their product.

 LABELING:-

The label may be a simple tag attached to the product or an elaborately
designed graphic that is part of the package. It might carry only the brand
name, 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 of
sach toned milk label helps the customer to now that whether the product is
healthy or not and what kind of ingredients it contain.


REFERENCES

Search engine :- WWW.GOOGLE.COM

WEBSITES :- WWW.FUTUREGROUP.IN

HTTP://EN.WIKIPEDIA.ORG/WIKI/FUTURE_GROUP


Thank You


Marketing Management Report on Future Group

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