Future group: The Walmart of India
Objective of this case
the issues and challenges faced by Walmart
and Future Group.
the retail formats and promotional strategies
adopted by Walmart and Future Group.
the potential for growth for Walmart and Future
how Walmart and Future Group would combat
competition from other leading retailers.
by Mr. Kishore Biyani.
in 1987 as Manzs wear Pvt. Ltd.
2006 its name changed as Future Group.
quarters in Mumbai.
over 30,000 people.
over 1000 stores in 61 cities of India.
of 1.3 million square feet.
offers wide range of product to doorstep.
Baazar- chain of large supermarkets, Brew Bar..
and Electronics, General merchandise.
brand includes- all, blue sky, etc.
and entertainment, wellness & beauty
and music and communication.
retail chain, Hypermarket- Big Bazar
and departmental stores.
Retail formats of walmart
stores, supercenters, specialty stores.
meet growing demand for one shop family purchase.
markets- selling ltd drugs and groceries.
music store, merchandise stores, food and drugs
markets(bodegas), cash and carry stores
warehouse clubs, apparel stores.
selling model- to touch and feel the product.
slogan- always low price.
isse sasta aur achcha kuch nhi.
to maximize market share used slogan-
k sabse saste teen din.
offers like wednesday bazaar.
ka sabse sasta din to attract customers on week
bring anything old and take something new.
offers called the junk swap.
also advertise on T.v, radio and print bill board.
price proposition- chane k bhaw kaaju.
endorsement- M.S. Dhoni, gurella marketing.
as value for money stores, 6 day biannual
discounting like 99, 49
offers on festivals, buy one get one offers.
strength of walmart was info. Sys.
code reader and EDI (electronic data interchange) for
information sharing with suppliers with in & across the stores
link to study POS data & product inventories.
RFID to have more visibility in S&C.
SAP to build transact. Mgt. sys.
launched e-commerce stores .
group also launched e- commerce.
employee turnover, low pay.
known for giving importance to its employees.
on temporary labor.
package, especially health care coverage.
criticized for its employee relation.
used its employees as assets.
several T&D programs to encourage..
Happy index program.
1990, walmart started international expansion.
2004 it had 4900 locations in US, europe & asia.
in canada in 1994 with acquisition of 122stores.
2004, walmart purchased supermarket chains in Brazil.
later entered into china and japan.
India into joint venture with Bharti enterprises.
group did not have international market.
entered into joint venture with several foreign
faced competition from departmental stores-
eg- Target, Kmart, costco, & BJ”s wholesale club.
stores- to combat walmart launched walmart
express, a mini version of its discount stores.
group faced competition from organized retailers
as reliance retail-marks and spencer,
group-spencer, bharti-walmart, shopper’s stop
tesco star bazaar, lifestyle international, and trent.
walmart and future group has to face biggest competition
with unorganized sectors.
in India mare than 95% retail market is unorganized.
of competition with organized retail sector-
and future group managed to successfully launch
new retail formats and it tried to cover entire retail ambit.
offered discount on a continuing basis.
opined that walmart and future group used
innovative add strategies to attract customers.
group still have to compete with foreign and
domestic players to retain its market leadership.
launched 5 year strategy to offer more healthier
and affordable food choices.
also had a plan to achieve a turnover of Rs. 300bn.