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Retailing of Big bazaar

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Retailing of Big bazaar

  1. 1. 02/19/11 Archit Soni (Roll No. 30) Shivani Joshi (Roll No. 8) Kunal Shah (Roll No.27) Mehul Raval (Roll No.22) Rubina Pathan (Roll No.20) Submitted To :Prof. Rohita Dwivedi
  2. 2. <ul><li>Company Background </li></ul><ul><li>Core Values </li></ul><ul><li>Target Audience </li></ul><ul><li>Porter’s 5 forces Model </li></ul><ul><li>SWOT Analysis </li></ul><ul><li>BCG Matrix </li></ul><ul><li>7P’s </li></ul><ul><li>Food Bazaar </li></ul><ul><li>SCM </li></ul><ul><li>Organization Structure </li></ul><ul><li>Financial Aspects </li></ul>Flow of Information
  3. 3. <ul><li>Type Hypermarket </li></ul><ul><li>Founded 2001 </li></ul><ul><li>Headquarters Jogeshwari, Mumbai </li></ul><ul><li>Industry Retail </li></ul><ul><li>Products Department, Grocery store </li></ul><ul><li>Promoter Kishore Biyani </li></ul><ul><li>Parent Pantaloon Retail India Ltd. </li></ul><ul><li>Punch line ‘ Is se sasta aur accha kahin nahin’ </li></ul><ul><li>Stores Outlets 133 Nos. </li></ul>
  4. 4. Vision Mission “ To deliver everything, Everywhere, Every time to Every Indian customer in most profitable manner ” <ul><li>creating and executing future scenarios in the consumption space leading to economic development </li></ul><ul><li>be the trendsetters in evolving delivery formats, creating retail realty, making consumption affordable for all customer segments </li></ul>
  5. 5. Core Values <ul><li>Indian-ness </li></ul><ul><li>Leadership </li></ul><ul><li>Respect and Humility </li></ul><ul><li>Introspection </li></ul><ul><li>Openness </li></ul><ul><li>Valuing and Nurturing </li></ul><ul><li>Relationships </li></ul><ul><li>Simplicity and Positivity </li></ul><ul><li>Adaptability </li></ul><ul><li>Flow </li></ul>
  6. 6. <ul><li>Understands needs of Indian customers. </li></ul><ul><li>Traditional bazaar ambience. </li></ul><ul><li>One stop shopping at discounted prices. </li></ul><ul><li>Provides Best Products at the Best Prices. </li></ul><ul><li>Targets price conscious majority segment of customers. </li></ul><ul><li>Cater to every possible retail need of a consumer. </li></ul><ul><li>Economies of Scale. </li></ul>
  7. 7. Target Audience <ul><li>Middle and upper-middle class customers. </li></ul><ul><li>The large and growing young working population. </li></ul><ul><li>working women and home makers who are the primary decision makers. </li></ul>
  8. 8. Porter’s 5 Forces Model
  9. 9. Analysis <ul><li>Rivalry among the competitor: </li></ul><ul><ul><li>Reliance retail, Aditya Birla Group, Vishal retail </li></ul></ul><ul><li>Threat of entrants: </li></ul><ul><ul><li>FDI policy not favorable for international players. </li></ul></ul><ul><ul><li>Domestic conglomerates looking to start retail chains. </li></ul></ul><ul><ul><li>International players looking to foray India </li></ul></ul><ul><li>Threat of substitutes: </li></ul><ul><ul><li>Unorganized retail </li></ul></ul>
  10. 10. Analysis <ul><li>Bargaining power of supplier: </li></ul><ul><ul><li>The bargaining power of suppliers varies depending upon the target segment. </li></ul></ul><ul><ul><li>The unorganized sector has a dominant position. </li></ul></ul><ul><ul><li>There are few players who have a slight edge over others on account of being established players and enjoying brand distinction. </li></ul></ul><ul><li>Bargaining power of buyers: </li></ul><ul><ul><li>Consumers are price sensitive </li></ul></ul><ul><ul><li>Availability of more choice. </li></ul></ul>
  11. 11. SWOT Analysis
  12. 12. <ul><li>Strengths </li></ul><ul><li>High Brand Equity in evolving Retail Markets </li></ul><ul><li>State-of-Art Infrastructure of the outlets </li></ul><ul><li>POP (to increase the purchase) </li></ul><ul><li>Early entry in the Retail Market </li></ul><ul><li>Diversified business in India </li></ul><ul><li>One stop shop for variety of products, increasing customer time and available choices </li></ul><ul><li>Weaknesses </li></ul><ul><li>High attrition rate </li></ul><ul><li>Unable to meet store opening target so far </li></ul><ul><li>Falling revenue per square feet </li></ul><ul><li>Employees need more training in handling esteemed customer </li></ul><ul><li>Very thin margin </li></ul><ul><li>High cost of operation due to large fixed costs </li></ul>Cont…SWOT Analysis
  13. 13. Cont…SWOT Analysis <ul><li>Opportunities </li></ul><ul><li>Organized retail is just 4.15% of the total pie </li></ul><ul><li>Huge potential rural market to be trapped </li></ul><ul><li>Evolving customer preferences in recent years </li></ul><ul><li>Threats </li></ul><ul><li>Many major players are foraying in the retail sector </li></ul><ul><li>Unorganized retail sector of India </li></ul><ul><li>Government policies </li></ul><ul><li>Customer may lose their trust on the company due to supply of substandard products </li></ul><ul><li>Margin of business reducing all the time </li></ul>
  14. 14. Life cycle of Big Bazaar SALES
  15. 15. M A R K E T G R O W T H Market Share High L O W H I G H Low Big Bazaar At BCG Matrix M A R K E T G R O W T H H I G H L O W M A R K E T G R O W T H H I G H Low L O W M A R K E T G R O W T H H I G H High Low L O W M A R K E T G R O W T H H I G H Market Share High Low L O W M A R K E T G R O W T H H I G H High Market Share High Low Market Share High M A R K E T G R O W T H Low Market Share High L O W M A R K E T G R O W T H Low Market Share High H I G H L O W M A R K E T G R O W T H Low Market Share High Market Share High Low Market Share High M A R K E T G R O W T H Low Market Share High L O W M A R K E T G R O W T H Low High H I G H L O W M A R K E T G R O W T H Low High H I G H L O W M A R K E T G R O W T H Low High
  16. 16. 7 P’s Of
  17. 17. 1.Product Mix <ul><li>Shampoo </li></ul><ul><li>Detergent </li></ul><ul><li>Soap </li></ul><ul><li>Liquid Wash </li></ul><ul><li>Creams </li></ul><ul><li>Deodrant </li></ul><ul><li>Home cleaners </li></ul><ul><li>Utensils </li></ul><ul><li>Crokery </li></ul><ul><li>Bundles </li></ul><ul><li>Soft drink </li></ul><ul><li>Packaged juice </li></ul><ul><li>Milk Items </li></ul><ul><li>Frozen foods </li></ul><ul><li>Ice creams </li></ul>
  18. 18. Product Mix Cont.. <ul><ul><li>Living Room </li></ul></ul><ul><ul><li>Bed Room </li></ul></ul><ul><ul><li>Kitchen </li></ul></ul><ul><ul><li>Dinning Rooms </li></ul></ul><ul><ul><li>Kids Room </li></ul></ul><ul><ul><li>Been Bags </li></ul></ul><ul><ul><li>Paintings </li></ul></ul><ul><ul><li>Decorative Items </li></ul></ul>
  19. 19. 2 . Pricing <ul><li>Value pricing </li></ul><ul><li>Promotional pricing </li></ul><ul><ul><ul><li>Low interest financing </li></ul></ul></ul><ul><ul><ul><li>Psychological discounting </li></ul></ul></ul><ul><ul><ul><li>Special event pricing </li></ul></ul></ul><ul><li>Differentiated Pricing </li></ul><ul><ul><ul><li>Time pricing </li></ul></ul></ul><ul><li>Bundling </li></ul>
  20. 20. Value Pricing (Every Day Low Pricing ) <ul><ul><li>Promises customer the lowest available price without coupon clippings, </li></ul></ul><ul><ul><li>waiting for discount promotions or comparison shopping </li></ul></ul>
  21. 21. Psychological Pricing Low Interest Financing
  22. 22. Special Event Pricing <ul><ul><ul><li>Big Bazaar also caters on Special Event Pricing on festival season like Diwali, Gudi Padwa, etc. </li></ul></ul></ul>
  23. 23. Time pricing <ul><ul><ul><li>Difference in rates based on peak and non-peak hours or days of shopping </li></ul></ul></ul>
  24. 24. Bundling <ul><li>Selling combo-packs and offering discount to customers. The combo packs add value to customer </li></ul>
  25. 25. 3 . Place <ul><li>Number of out let- 133 till Aug 2010 </li></ul><ul><li>Located at main city-tier I & tier city-II; </li></ul><ul><li>Area-10,000sq ft- 120000 sqft; </li></ul><ul><li>High street area of city </li></ul><ul><li>Approachable destination. </li></ul>
  26. 26. 4.Promotion <ul><li>Below the line Promotion </li></ul><ul><li>Above the line Promotion </li></ul><ul><li>Brand endorsements </li></ul><ul><li>Advertisements </li></ul><ul><li>Exchange offer </li></ul><ul><li>Wednesday bazaar </li></ul><ul><li>Sab se saste teen din </li></ul><ul><li>Shakti card </li></ul><ul><li>Future card </li></ul>
  27. 27. Promotional Offers
  28. 28. 5 . People <ul><li>Well trained staff. </li></ul><ul><li>Appearance. </li></ul><ul><li>Empowered individual. </li></ul><ul><li>Encouraged to think out of box. </li></ul><ul><li>Use Scenario Planning as a tool for Quick Decision Making. </li></ul>
  29. 29. <ul><li>It deals with the final deliverable or the display of written facts. This includes the current system and available facilities . </li></ul>6.Physical Evidence
  30. 30. 7.Process <ul><li>The goods’ dispatch and purchasing area has certain salient features </li></ul><ul><ul><li>Multiple counters with trolleys to carry the items purchased. </li></ul></ul><ul><ul><li>Proper display / posters of the place like (DAL, SOAP, etc.). </li></ul></ul><ul><ul><li>Home delivery counters also started at many places. </li></ul></ul>
  31. 31. Process
  32. 32. Positioning High service low service Low price High price
  33. 33. Big Bazaar Supercenteres (>75,000 sq ft ) Future Strategy of
  34. 34. What Customer Love About The Store “ Itna bada a/c shop, trolleys jisme apna samaan aur chote bacche dono sama jate hain, thakaan to zara bhi nahin hota” “ Kya variety hain! Jo kahin bhi na mile idhar zaroor milega” “ We always get extra bags from Big Bazaar…gives a good impression to be seen with the bag” “ There is something for my husband, my kid and me” “ Superior quality at a reasonable price” “ Khaali haath nahin lautenge!!!” All visitors-women “ Discounts are always on” “ Pahle baar dar laga… socha bahut expensive hoga. But reasonable Prices dekhe bahut khushi hui” kapde bhi reasonable hain…T-Shirts, trousers itne bhi mehenge nahin hain”
  35. 35. Parking Ambience & Decor
  36. 36. Encouraging Loyalty <ul><li>Launched ICICI bank co-branded credit card </li></ul><ul><li>For every Rs.100 spent, 4 points are rewarded </li></ul><ul><li>Then, loyalty points converted to a gift voucher at every 500 mark </li></ul><ul><li>Each gift voucher is accompanied with another one worth Rs 100 </li></ul><ul><li>Personalise offers based on the above </li></ul><ul><li>Offer free home delivery and special discount on occasions like Birthdays & anniversaries to the card holders </li></ul>
  37. 37. Private Label Brands
  38. 38. Food Bazaar
  39. 39. Food Bazaar <ul><li>Average area, 5000 square feet of retail space </li></ul><ul><li>Modelled on the Indian Mandli </li></ul><ul><li>So, Customer can touch, feel and choose products </li></ul><ul><li>Local flavours and varieties are made available </li></ul><ul><li>Launched Food Bazaar masalas, tea and premium harvest pulses </li></ul><ul><li>Planning to expand independently as a part of Future Group </li></ul>
  40. 40. Product Categories <ul><li>Processed Food & Non processed food </li></ul><ul><ul><li>Contribute 60% of sales </li></ul></ul><ul><ul><li>Includes large no. of FMCG products </li></ul></ul><ul><ul><li>Imported products, Health food, Speciality food </li></ul></ul><ul><li>Dry Staples </li></ul><ul><ul><li>Contributes 30% of sales </li></ul></ul><ul><ul><li>Dry groceries like rice, wheat, dal, spices, etc </li></ul></ul><ul><li>Wet Staples </li></ul><ul><ul><li>Contributes 10% of sales </li></ul></ul><ul><ul><li>Fruits and vegetables </li></ul></ul>
  41. 41. Managing the Supply Chain
  42. 42. Supply Chain Management <ul><li>An indent will be kept by the front end team of a particular department to category team of central office. </li></ul><ul><li>The category team will raise a Stock Transfer Out( STO) and send it to the Delivery Centre (DC) or Warehouse . </li></ul><ul><li>The DC will generate stock picks & starts picking, Stock Transfer Note(STN ) and Gate pass. </li></ul><ul><li>DC will transfer the stock to stores. </li></ul><ul><li>Here starts the part of logistics. </li></ul>
  43. 43. Logistics <ul><ul><li>Logistics is a part of supply chain management which deals with the In warding and out warding of goods as well as non saleable items. </li></ul></ul>
  44. 44. Reception of Goods from DC <ul><li>Checks for seal condition & number as mentioned in the Gate pass, delivery note </li></ul><ul><li>Informs particular department about reception of good </li></ul><ul><li>Checks the items in front of particular dept’s team members stock transfer number wise </li></ul><ul><li>if any discrepancy has occurred & informs to supply site </li></ul><ul><li>Enter all the details in Inward register as well as in the systems </li></ul><ul><li>moves the stocks to the floor </li></ul>
  45. 45. Reception of Goods from Vendor <ul><li>Check for TAX , Invoice & Purchase Order </li></ul><ul><li>Vendor himself has to go to the respective department & takes permission for the submission of goods in Logistics </li></ul><ul><li>Prepares GRN note in 3 copies for logistics , respective department , DC/Vendor </li></ul><ul><li>departments have to Collect their respective goods from logistics. </li></ul><ul><li>All the above process is for In-warding also </li></ul>
  46. 46. Few Cases In Which Out warding is done <ul><li>Home Delivery </li></ul><ul><li>Store to Store Transfer </li></ul><ul><li>Damager or Expiry Stock Transfer to Warehouse or Vender </li></ul><ul><li>Return of Salable items </li></ul>
  47. 47. Registered Maintained By Logistics <ul><li>Food Bazaar Outward </li></ul><ul><li>Big Bazaar Outward </li></ul><ul><li>Vendor Schedule Register </li></ul><ul><li>Bar Code Register </li></ul><ul><li>Free Gift Register </li></ul><ul><li>Scrap Register </li></ul><ul><li>Vendor Security Register </li></ul><ul><li>Warehouse Security Register </li></ul>
  48. 48. Organisation Structure
  49. 49. Flat Structure Store Manager Asst Store Manager Deputy Manager Asst. DM Team Leader Team Member HR Manager CSD Visual Merchandising Asst. DM Administration Maintenance House Keeping Info Security Marketing Sales Manager Cashier
  50. 50. Financial Aspects
  51. 51. Balance Sheet
  52. 52. Profit & Loss Account
  53. 53. Happy Shopping!!!

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