BHAT – BHATENI
The Leading Supermarket
                 Presented By:
                 Kalpana Rai
                 Sagun Thapa
                 Rupak Shrestha
                 Prakash Ghimire
                 Kiran Gurung
What is BHAT - BHATENI


 About Bhat-Bhateni   Hyper Mart
                      Chain of development store in
                      Nepal
 Outlet               5 outlet Located in Kathmandu
                      Valley & 1 in Pokhara
 Owner                Mr. Min Bahadur Gurung
 Head Office          Bhat-Bhateni Head Office, Bhat-
                      Bhateni, Kathmandu
 Web site             http://bbsm.com.np
 Industry             Retail
Some Interesting Facts


•The idea behind Bhat Bhateni was pioneered by a visionary
entrepreneur Mr. Min Bhadaur Gurung.

•Established in 1986 with one room .

•Total Employee – 2,200.

•Total Sales/day – 2 Crore with more than 40,000 customer daily.

•Highest tax payer in the retail sector for the last five consecutive years.

•Offers full range of 120,000 products from 700 local and international
suppliers
SWOT Analysis

                            Strength
•The one and only one leading supermarket of the country.

•Huge infrastructure with ample of parking space and secure locker
system.

•Loyal Customers.

•Full range of 120,000 products with reasonable price.

•Prime Location of Store.

•Online order receiving system with home delivery facility and club
card.

•Highly experienced manpower in retail sector .
                                                                Contd……
SWOT SWOT Analysis
     Analysis
                             Weakness
•Limited number of stores.

•No central ware house and wholesale unit.

•It has been accused of providing low grade/Insufficient quality products.

• Queue Management is not so organized. Longcheck out lines especially
at Saturday and holidays .

•Fewer choices of goods because it stock only those goods that likely to
sell.




                                                                  Contd……
SWOT Analysis

                           Opportunities

•Growing level of Incomes

•No big competitors till date

•Increasing trends of shopping in Mall and Department stores.




                                                                Contd……
SWOT Analysis
                           Threats
•Intense Competition

•No proper rules and regulation form the government side regarding retail
industry.

•Opportunity cost is high with high rate of bank loan.

•Political Instability that will hamper the expansion growth of the store
•Inflation rate is high

•Operating cost is high to operate the business as the store has to depend on diesel
energy instead of hydro energy.
Marketing Mix




09/22/12
                  8
1.Product Mix




 09/22/12
                9
2.Pricing
 • Value pricing
 • Promotional pricing
            Psychological discounting
            Special event pricing
 • Differentiated Pricing
 • Bundling




09/22/12                                 10
3.Place




             Number of out let- 6

             Located at main city

             Approachable
            destination.




 09/22/12
4.Promotion




09/22/12      12
Positioning Strategies

 •   BBSM has adopted price, product as core component for positioning
     strategies.

 •              for the full range of 120000 products from 750 local and
                  international suppliers

 •   1st retail store to operate online shopping as bhatbhatenionline.com with
     the statement of Save Time Save Money

 •   As a 1st retail store with the history of 28 years, it has created an image in
     people’s mind as most wider range of quality goods on best price.
Organization value and
customer value




09/22/12                 14
Frontal marketing strategy


09/22/12                                15
Future strategy of

The new warehouse facility and wholesale unit in Baluwater is due to open by the
end of 2012 and will enable Bhat-Bhateni to delivery further cost savings to loyal
customers.

 Mr. Min B. Gurung has truly visionary long-term goals and aim to establish
farmer co-operatives in Nepal which is estimated to give employment to 50,000
people in total once the store expansion programme is complete, and is likely to
position Bhat-Bhateni as the largest corporate tax payer in the country.




 09/22/12                                                                      16
Porter’s five force model




                            17
09/22/12
Analysis
5 Forces                       Analysis
Rivalry among the competitor   •Namaste , CG Mart, Big Mart, Saleways etc


Threat of entrants
                               • High threat of entrance
                               •FDI policy is favorable.



Bargaining power of supplier   •The bargaining power of suppliers varies depending
                               upon the target segment.
                               •The un organized sector has a dominant position.
                               • There are few players who have a slight edge over
                               others on account of being established players and
                               enjoying brand distinction.

Bargaining power of buyers     • Consumers are price sensitive..
                               •Availability of more choice.


                               •Unorganized retail
Threat of substitutes


    09/22/12                                                                         18
Life Cycle of
SCA

The sustainable competitive advantage requires value creating products,
processes and services that cannot be matched up by competitors and the
plan to maintain it for future.

If it is the case, can Bhatbhateni boast about it?
YES!!!
                          YES !!!!
• Over the years Bhatbhateni has created a solid SCA against its
  competitors. It has thousands of loyal and satisfied
  customers.


Challenges in future:
With the slow increase in the number of new players in retail
 sector, Bhatbhateni will find it difficult in future. Also the
 advancement in the technology it has to keep upgrading the
 service to maintain its SCA.
Growth, Diversification &
Global Strategy
•   The meteoric growth of Bhatbhateni has showed the strength of the
    company. The retail industry in Nepal is growing and hence has
    opportunities.

•   To maintain its growth as a corporate Bhatbhateni group has to go for
    business diversification. And they are going for agro-business and farmers
    co-operatives.

•   The legal prohibition has barred the foreign players coming in Nepal and
    cannot see any plans by Bhatbhateni in foreign countries in near future.
Bhat Bhateni

Bhat Bhateni

  • 1.
    BHAT – BHATENI TheLeading Supermarket Presented By: Kalpana Rai Sagun Thapa Rupak Shrestha Prakash Ghimire Kiran Gurung
  • 2.
    What is BHAT- BHATENI About Bhat-Bhateni Hyper Mart Chain of development store in Nepal Outlet 5 outlet Located in Kathmandu Valley & 1 in Pokhara Owner Mr. Min Bahadur Gurung Head Office Bhat-Bhateni Head Office, Bhat- Bhateni, Kathmandu Web site http://bbsm.com.np Industry Retail
  • 3.
    Some Interesting Facts •Theidea behind Bhat Bhateni was pioneered by a visionary entrepreneur Mr. Min Bhadaur Gurung. •Established in 1986 with one room . •Total Employee – 2,200. •Total Sales/day – 2 Crore with more than 40,000 customer daily. •Highest tax payer in the retail sector for the last five consecutive years. •Offers full range of 120,000 products from 700 local and international suppliers
  • 4.
    SWOT Analysis Strength •The one and only one leading supermarket of the country. •Huge infrastructure with ample of parking space and secure locker system. •Loyal Customers. •Full range of 120,000 products with reasonable price. •Prime Location of Store. •Online order receiving system with home delivery facility and club card. •Highly experienced manpower in retail sector . Contd……
  • 5.
    SWOT SWOT Analysis Analysis Weakness •Limited number of stores. •No central ware house and wholesale unit. •It has been accused of providing low grade/Insufficient quality products. • Queue Management is not so organized. Longcheck out lines especially at Saturday and holidays . •Fewer choices of goods because it stock only those goods that likely to sell. Contd……
  • 6.
    SWOT Analysis Opportunities •Growing level of Incomes •No big competitors till date •Increasing trends of shopping in Mall and Department stores. Contd……
  • 7.
    SWOT Analysis Threats •Intense Competition •No proper rules and regulation form the government side regarding retail industry. •Opportunity cost is high with high rate of bank loan. •Political Instability that will hamper the expansion growth of the store •Inflation rate is high •Operating cost is high to operate the business as the store has to depend on diesel energy instead of hydro energy.
  • 8.
  • 9.
  • 10.
    2.Pricing • Valuepricing • Promotional pricing  Psychological discounting  Special event pricing • Differentiated Pricing • Bundling 09/22/12 10
  • 11.
    3.Place  Number of out let- 6  Located at main city  Approachable destination. 09/22/12
  • 12.
  • 13.
    Positioning Strategies • BBSM has adopted price, product as core component for positioning strategies. • for the full range of 120000 products from 750 local and international suppliers • 1st retail store to operate online shopping as bhatbhatenionline.com with the statement of Save Time Save Money • As a 1st retail store with the history of 28 years, it has created an image in people’s mind as most wider range of quality goods on best price.
  • 14.
  • 15.
  • 16.
    Future strategy of Thenew warehouse facility and wholesale unit in Baluwater is due to open by the end of 2012 and will enable Bhat-Bhateni to delivery further cost savings to loyal customers.  Mr. Min B. Gurung has truly visionary long-term goals and aim to establish farmer co-operatives in Nepal which is estimated to give employment to 50,000 people in total once the store expansion programme is complete, and is likely to position Bhat-Bhateni as the largest corporate tax payer in the country. 09/22/12 16
  • 17.
    Porter’s five forcemodel 17 09/22/12
  • 18.
    Analysis 5 Forces Analysis Rivalry among the competitor •Namaste , CG Mart, Big Mart, Saleways etc Threat of entrants • High threat of entrance •FDI policy is favorable. Bargaining power of supplier •The bargaining power of suppliers varies depending upon the target segment. •The un organized sector has a dominant position. • There are few players who have a slight edge over others on account of being established players and enjoying brand distinction. Bargaining power of buyers • Consumers are price sensitive.. •Availability of more choice. •Unorganized retail Threat of substitutes 09/22/12 18
  • 19.
  • 20.
    SCA The sustainable competitiveadvantage requires value creating products, processes and services that cannot be matched up by competitors and the plan to maintain it for future. If it is the case, can Bhatbhateni boast about it?
  • 21.
    YES!!! YES !!!! • Over the years Bhatbhateni has created a solid SCA against its competitors. It has thousands of loyal and satisfied customers. Challenges in future: With the slow increase in the number of new players in retail sector, Bhatbhateni will find it difficult in future. Also the advancement in the technology it has to keep upgrading the service to maintain its SCA.
  • 22.
    Growth, Diversification & GlobalStrategy • The meteoric growth of Bhatbhateni has showed the strength of the company. The retail industry in Nepal is growing and hence has opportunities. • To maintain its growth as a corporate Bhatbhateni group has to go for business diversification. And they are going for agro-business and farmers co-operatives. • The legal prohibition has barred the foreign players coming in Nepal and cannot see any plans by Bhatbhateni in foreign countries in near future.

Editor's Notes

  • #8 .
  • #16 www.azadsikander.blogspot.com
  • #17 www.azadsikander.blogspot.com The 60,000 sq. ft. warehouse section will enhance operational efficiency through centralized purchases and efficient distribution. The 15,000 sq. ft. 'cash & carry' unit will provide a customized solution for bulk buyers, including trekking agencies, restaurants and small shops.