Big Bazaar is one of India's largest hypermarket chains founded in 2001. It operates over 100 stores across India, using a low price, high volume business model similar to Walmart. Big Bazaar offers a wide range of products under one roof, from groceries to clothing to appliances. It aims to provide customers with better and cheaper products than anywhere else. A key part of its success has been establishing a large network of stores across major cities and towns in India.

1. Group – 7

2. INTRODUCTION
• Big Bazaar is one of the oldest and largest hypermarket
chains of India, housing about 101 stores across the country.
• Big Bazaar is a hyper market format, a part of Pantaloon and
works on the same economy model as Walmart and has had
considerable success in many Indian cities and small towns.
• A hypermarket is a retail store that combines a department
store and a grocery supermarket. Often a very large
establishment, hypermarkets offer a wide variety of products
such as appliances, clothing, and groceries.
• Big Bazaar is on the verge of achieving a unique milestone in
the history of world Retail- by being the first hypermarket
format in the globe to rollout 101 stores fastest in a short
span of seven years

3. HISTORY OF BIG
BAZAAR
• Big Bazaar was founded in 2001 by Kishore Biyani, the
founder and chief executive officer (CEO) of the parent
company, the Future Group.
• Big Bazaar is also the parent chain of Food Bazaar, Fashion at
Big Bazaar (abbreviated as fbb) and eZone where at locations
it houses all under one roof, while it is sister chain of retail
outlets like Brand Factory, Home Town, Central, eZone, etc.
• The former captain of Indian cricket team, Mahendra Singh
Dhoni have previously endorsed for the fashion vertical of Big
Bazaar.
• In 2020, Big Bazaar was acquired by Reliance Retail, the retail
division of the Reliance Industries, as part of a ₹24,713 crore
($3.36 billion) sale transaction of Future Group.
• Shopping is necessary for one and all. There are two basic
types of shopping. One is done in retail stores, and the other
one is done in malls and shopping complexes.

4. • The retail stores are dedicated to a specific item, whereas the
shopping complexes like Big Bazaar house many, many
products in one place.
• The business model of Big Bazaar revolves around the retail
chain of hypermarkets, grocery stores, and discount
department stores.
• Big Bazaar is one of the largest shopping malls in India. They
give some fantastic offers and discounts to their customers.
These factors attract more and more customers to these
stores.
• The wide range of products incorporated by the Big Bazaar
Business Model is- Electronics, Movies and music, Home and
furniture, Home improvement, Clothing, Footwear, Jewelry,
Toys, Health and beauty, Pet supplies, Sporting goods and
fitness, Auto, Photofinishing, Craft supplies, Party supplies,
Grocery, etc.

5. INDIAN RETAIL
SCENARIO
• India has emerged as one of the most favored retail
destination countries.
• The development of large, modern store chains has been
accelerated in the recent times by the investments made by
the large-scale domestic and international players.
• As of 2007, organized retail forms just 3% of India’s retail
industry which is roughly estimated at $330 billion and it is
set to grow to 16% by 2015, according to estimated by
Technopak Advisors, a New Delhi-based retail consulting
company.
• To gain leverage in this growth trend, major players such as
Future Group, Reliance Industries Ltd, Tata Group, Aditya Birla
Group, K Raheja Corp., and Mahindra and Mahindra Ltd have
announced mega investments in this sector.

6. • The retailers have borrowed ideas from the organized western
style retailing and have tried to offer a variety of product
mixes and store formats such as supermarkets, hyper markets,
malls etc., to effectively address the market needs.
• Organized retail makes up to 70% to 80% of all retail business
in developed countries.
• In India, the organized retail sector comprises of only 3%,
whereas US accounts for 85% and Japan accounts for 66%.
• The proliferation of hypermarkets and supermarkets has led
to a growth in food and grocery retail.
• Impulse goods like books and music are also gaining a larger
share in the organized retail market, with players making
stores more accessible to consumers.
0
20
40
60
80
100
U.S. Japan China India
Contribution
of
Organized
Retailing
Axis Title
Share of Organized Retail
Share of Organized Retail

7. • Indian retail or traditional retail is dominated by a large number
of small retailers consisting of the local kirana shops, owner-
manned general stores, chemists, footwear shops, hand-cart
hawkers, etc.
• Since 2005-2006 organized retailers took entry in Indian market,
who opened stores in various modern formats in metro cities and
other locations.
• Still the overall share or organized retailing in total business has
remained low. While total retail sales have grown from INR 10,591
billion in 2003-2004 to INR 14,574 billion in 2006-2007 with a
compound annual growth rate of about 11%, the organized retail
sales grew at higher rate about 20% per annum from INR 350
billion in 2003-2004 to INR 598 billion in 2006-2007.
• As a result, the share of organized retail in total grew, although
slowly, from 3.3% to 4.1% at the end of 2007 FY.

8. BUSINESS MODEL
OF
BIG BAZAAR
• Many people believe that the Big Bazaar is the Indian
version of Wal-Mart. Wal-Mart is the chain of retail
stores which is very famous in the United States (US).
• The idea of Big Bazaar came from a local store called
‘Saravana.’ This store was a part of a family business.
• It worked on the principle of ‘low margin; high
turnover.’ On the same lines, Big Bazaar has drafted its
slogan to be ‘Issei Sasta Aur Achha Kahin Nahi.’ This
means that they claim that you will not get better and
cheaper products anywhere else.

9. THE NETWORK OF
BIG BAZAAR
BUSINESS
• Any store grows to become highly successful only
when it establishes a good network in the prime areas
of the country where it can garner huge responses.
• Starting from Kolkata and West Bengal in 2001, Big
Bazaar has now formed an excellent network of more
than 250 stores in more than 120 cities across India.
• This has facilitated the reach of this store and has
made it possible for almost every person to go and
shop at Big Bazaar.

10. TAPPING INTO
THE RETAIL
INDUSTRY IN
INDIA
• India is known for its immense and ever-growing population.
This is a boon for the retail industry in India. The retail sector
is the one which sells goods, products, and services in lesser
quantity to suffice the need of every individual.
• There are more than 12 million retail outlets in the country.
The goods sold here are diverse and different. Out of these 12
million, around 5 million stores sell food items and eatables.
• The rest of them sell utility products like clothes, household
items, and much more. The Future Group decided to tap into
this and unify these different avenues of retail shopping. The
stores like Big Bazaar, which are sprawled across the country,
offer food items, electronic goods, necessary utility products,
and entertainment all under one roof.

11. HOW DOES BIG
BAZAAR MAKE
MONEY?
Big Bazaar Business Model is based upon giving so many
lucrative offers, yet they make good profits. The reasons are-
• Big Bazaar business model eliminates mediators, as they
directly make their purchases from the manufacturers or
producers. This removes the middlemen and their profits to
help Big Bazaar have better margins.
• The business model of Big Bazaar functions on such a large
scale that they make profits from the wholesale discounts
• Economies of scale are also a key factor behind the money-
making of Big Bazaar. Because of significant scale functioning,
Big Bazaar business model cuts down different other costs
such as advertisement, transportation, etc. They can purchase
huge amounts simultaneously that let the costs get spread
over different items

12. MARKETING STRATEGY USED BY BIG
BAZAAR

13. PRICE & PRODUCT
Price
• Whenever you go shopping at Big Bazaar,
you are sure to find discounts on almost all
the products. This is because it works on the
low margin principle.
• Big Bazaar blocks the stock from the
manufacturers and hence, has no losses in
giving discounts to the buyers.
• This strategy works in favor of the company
because huge crowds gather here to buy
these products. Hence, even though the
margin the less, the turnover is enormous.
Product
• Even though the prices are attractive, the
products also need to be of excellent quality.
Big Bazaar has a wide range of wonderful
products.
• They sell products of other manufacturers and
also have a series of products of their own.
This wide range attracts buyers and
customers in huge numbers.

14. PLACE & PROMOTIONS
Place
• The next crucial point is the location of the
store. If the store is located in a remote place
where there is not much accessibility, the
store will not get that much attention despite
the wide range and fair pricing.
• That is why Big Bazaar has always found
locations that are easily accessible and easily
reachable for almost everyone
• This network of stores has led to the growth
in profits of the company.
Promotions
• Promotions are essential for the success of
any public venture. Big Bazaar has allocated a
massive budget for the promotions.
• It has started special days like ‘Sabse Saste
Din, ‘ which has attracted millions of buyers.
Also, it has taken celebrities, actors, and
sportspersons for their endorsements.
• This has created a lot of noise for them in the
market. They have grown into a significant
and successful chain of stores.

15. COMPETITIVE
ADVANTAGES
OF BIG BAZAAR
• Variety of Products: The main competitors for Big Bazaar are Tata Hypermarket,
More, and Reliance Fresh. Big Bazaar sells almost everything in the retail sector.
From Big Bazaar, you can buy packed food, vegetables, fish, apparels, toys,
footwear to hi-tech electronic goods such as TVs, cameras, iPods, etc. They even
have entertainment zones and hotels inside their stores. This offers the family a
comfortable place to do shopping and to spend time. When Big Bazaar offers every
thing under a single store, its main competitors offer only specialized products. For
example, Reliance Fresh mainly sells vegetables and food items. Tata Hypermarket
sells mainly apparels.
• Large Chain of Stores: Big Bazaar has 98 stores in 71 locations in India. This offers
great accessibility for customers. As they have many stores, they purchase product
in bulk for cheap price from the suppliers. This enables Big Bazaar to sell their
products for low price.
• Apt Locations: Big Bazaar has its stores in 71 cities in India. Their store locations are
either city centers or huge residential areas. This gives Big Bazaar a great advantage
over its competitors. Instead of making the customers come to their store by travel,
Big Bazaar established their stores in easily accessible locations.
• Low Price: All the products sold in Big Bazaar are priced lower when compared with
its competitors. In India, the price is the main factor that attracts customers. With a
right mix of marketing and procuring the products, Big Bazaar is offering the
products and services for the lowest price.

16. SWOT
ANALYSIS
STRENGHTS
• High Brand Equity: Brand equity indicates the position of the
brand in the market. The business model of Big Bazaar has given
it high brand equity.
• Largest Chain of Retail Stores: The retail stores across the country
are diversified concerning the products they sell and the variety
they offer. However, Big Bazaar has brought all of the retail selling
facilities on the same page. It has created a uniform chain of retail
stores.
• High Capacity of Investment: The investments made by Big Bazaar
are huge. That is why they buy goods in bulk and store them in
their warehouses. This enables them to give great discounts and
attract millions of customers daily.
• Online Booking and Delivery: Big Bazaar provides online services.
It has a platform for buying goods and products online and also
pay through payment gateways.

17. SWOT
ANALYSIS
WEAKNESSES
• Overcrowded : During offers, promotions and even on weekends
the place is overcrowded with people and sometime even there is
the situation of closing the store due to it.
• Checkout can be extremely slow: There can be seen a long queue
on the billing counters making the consumer wait for hours due
to the slow service and the crowd.
• Perception of low price = low quality: Generally, people think that
if any product has low price, then the quality of the product will
be low as they think quality comes with price.
• Targets at the middle class and upper middle class only: It targets
at the middle and upper middle class due to which it ignores the
upper and elite class people as they are the cream of the society
who are ready to pay any price for the quality and product they
need.

18. SWOT
ANALYSIS
OPPORTUNITIES
• Big Bazaar can enter into production of various products due to
its in depth understanding of customers' tastes and preferences.
• Nowadays people prefer going to one big store and buy
everything instead of visiting different places for different items
and waste time. So Big Bazaar can expand the business in smaller
cities as there is a lot of opportunity.
• Lot of potential in the rural market.

19. SWOT
ANALYSIS
THREATS
• High business risk involved: Big Bazaar investment is very large,
so it is obvious that there is high business risk involved.
• Lot of competitors: There are a lot of countries which are planning
to enter the Indian market like Wal-Mart, Carrefour and Tesco
which is a big threat to Big Bazaar.
• Less Parking Space: Customers are not satisfied with the parking
space availability provided by Big Bazaar. Hence, it's a threat of
Big Bazaar as it may lose its customers because of less parking
space availability. In holidays it will be very difficult for customers
to park their vehicle in Big Bazaar.
• Unorganized retailing: Unorganized retail stores are a threat to
the business of big bazaar as now also people prefer to go to the
local stores which are convenient enough for them.

20. PORTER’S FIVE
FORCES
MODEL BIG
BAZAAR
• Competitiveness: There is extreme competition in the market of food
and beverages. Big Bazaar is among the top business in this
competitive market with a variety of strong rivals like Unilever, Kraft
foods and Group DANONE. Big Bazaar is running well in this race for
last 150 years. Each business has a definite share of market. This rivalry
is not just limited to the price of the product however also for quality,
innovation and variation. Every industry is making every effort hard for
the maintenance of their market share. However, the competitors of
other business with Big Bazaar is quite high.
• Threat of New Entrants: A variety of barriers are there for the new
entrants to happen in the customer food market. Only a few entrants
be successful in this market as there is a requirement to understand
the customer need which needs time while recent rivals are aware and
has advanced with the consumer commitment over their products with
time. There is low danger of brand-new entrants to Big Bazaar as it has
rather large network of distribution globally dominating with well-
reputed image.

21. PORTER’S FIVE
FORCES
MODEL BIG
BAZAAR
• Bargaining Power of Buyers: There is high bargaining power of the buyers
due to excellent competitors. Switching cost is quite low for the customers
as many business sale a number of comparable products. This appears to be
a great risk for any company. Thus, Big Bazaar makes sure to keep its
customers pleased. This has actually led Big Bazaar to be one of the loyal
company in eyes of its buyers.
• Threat of Substitutes: There has actually been a great risk of replacements
as there are replacements of some of the Nestlé's products such as boiled
water and pasteurized milk. There has actually also been a claim that some
of its items are not safe to utilize leading to the reduced sale. Therefore, Big
Bazaar started highlighting the health advantages of its items to cope up
with the replacements.
• Competitor Analysis: It has ended up being the second biggest food and
drink market in the West Europe with a market share of about 8.6% with just
a difference of 0.3 points with Big Bazaar. Big Bazaar brings in regional
customers by its low cost of the item with the regional taste of the products
keeping its first location in the worldwide market. Big Bazaar business has
about 280,000 employees and functions in more than 197 nations edging its
rivals in lots of regions.

22. PESTEL ANALYSIS
BIG BAZAAR
Political Factors:
• Big Bazaar being a retailer should be benefitted the most if
government is looking forward to growth in such industries or not.
• The present economic situation affects the government’s budget
which includes the fiscal and monetary policy, thereby affecting the
consumers purchasing powers and the growth of the industry.
Government that encourages new technology will be beneficial for the
company as it would allow them to operate efficiently.
• Political stability and government policies may also affect Big Bazaar
to a great extent. This includes abiding by laws when setting prices,
doing marketing and overall business operations in general for its
smooth running.
• The consumer protection measures taken by the government should
also be well analyzed. Level of restriction on foreign goods by
government also plays a major role in measuring the ease of serving
variety to Indian market. Apart from this, a stable government would
also encourage investment thereby making the shareholders happy.

23. PESTEL ANALYSIS
BIG BAZAAR
Economic Factors:
• The pace of growth of the economy is a major lookout for a retail
store like Big bazaar. This is because that is what would help to decide
the range of products that should be stored in larger quantities.
• It also helps in determining the cost of doing business and thereby
estimating profits. This would further help in analyzing feasibility and
prospects of long-term sustainability.
• Employment rates, inflation rates, price fluctuations in the markets,
Availability of capital at reasonable rates, level of household incomes
and saving rates and consumer disposable income are some of the
major factors that could affect the operations of the company.
• The level of income inequality in an economy also depicts the level of
crime that can take place and can lead to uncertainty of consumption.
Thus, all these factors are very important for long-term analysis of
growth prospects for the company.

24. PESTEL ANALYSIS
BIG BAZAAR
Social Factors:
• Having such a vast category of products, various social factors would
affect Big Bazaar. Starting from birth-rate to estimate future demand,
analysis of average age, gender ratio, culture and diversity would all
have an impact on what the consumers would expect from the brand.
• State of health and the type of products people would like to buy
constitutes one of the most important macro-economic factors
affecting the company.
• Lifestyle changes, shift in product and services preferred are changing
at increasing pace and Big Bazaar needs to ensure to chase down the
same pace in order to sustain, serve and maintain its loyal customer
base.
• The attitude of people towards saving their money for future or
investing in different industries must also be looked upon.
• All these factors need to be considered not only for determining
business operations but also for choosing the right marketing
campaigns to position the brand in the minds of potential customers.

25. PESTEL ANALYSIS
BIG BAZAAR
Technological Factors:
• Accepting all modes of payments would be one technological factor that
would affect Big Bazaar a lot with the increase in number of upcoming
applications, UPI’s, Wi-Fi cards and various other methods of payments.
• Adapting to the speed of technological innovations is thus a major factor.
Developing a fast-billing system would also involve using the latest and the
best technology to maintain operational efficiency. Providing online services
through well-developed applications is also a key pointer for Big Bazaar to
survive in the long run.
• Other facilities like home delivery, ease of shopping, ambience, and supply
chain management must be taken care of. Technology would be impacting
the company in two ways, directly via the technological factors affecting the
industry and indirectly via the affect of technological factors on the
individual brands which it sells.
• Technological trends awareness is another factor that could help to boost
sales by taking the first mover advantage or quickly adapting to industry
trends via digital marketing and various other sources.

26. PESTEL ANALYSIS
BIG BAZAAR
Legal Factors:
• Employee laws and consumer protection laws would have major
impact on Big Bazaar as the business model requires engagement of
large number of employees and it needs to take care of its customers
and their problems even after sales.
• The expiry dates of products and quality check of products should be
done on regular basis depending on the requirement of each
category.
• Business laws need to be analyzed before opening stores in certain
areas. As there are several customers who would be visiting the stores
on daily basis, safety regulation and protective measures must be in
place.
• Trade practices of the location they are operating in must be abided
by and ensure best service, quality and products to obtain a
competitive advantage over competitors. This would help them avoid
any legal challenges which in turn also take a lot of time to conclude.

27. PESTEL ANALYSIS
BIG BAZAAR
Environmental Factors:
• Proper waste management is one of the major environmental macro-
economic factors affecting Big Bazaar.
• Regular assessments of products expiry must be done, and products
not sold must be disposed in an organized manner.
• Focus must shift to spending on renewable technologies and adapt to
eco-friendly methods.
• The selection of location must also be appropriate such that the
environment is not affected.
• Another major area to focus for the brand is in the type of carry bags
it provides and the bills it prints.
• It should discourage excess printing. Big bazaar should also convince
the brands that they sell to adapt to greener packaging and contribute
to corporate social responsibility as a result. This could be mostly
directed towards the fast-moving consumer goods sector so as to
minimize non-degradable wastes.

28. CONCLUSION
• On the concluding note, we hope you would have understood how India’s
one of the oldest and largest hypermarket chains channelize its business
model adeptly.
• Big Bazaar is undoubtedly the number one retailer in India. It has built a
very emotional and cordial relationship with its customers. It is also very
intending to built long-term relationship with all its stakeholders, which is
very essential for a successful business venture.
• It is observed that the organization hierarchy is professional as all the
departmental Managers directly report to the store manager who in turn
reports to the Zonal Head.
• Big Bazaar, with 25 years of experience in the field of weaving fabrics, is the
leading Apparels and fashion design fabric company.
• The company is reaching out to all the sections of the society as it is
creating a hypermarket where not only the rich people shop but also the
middle and the lower-class customers come to enjoy the whole shopping
experience.
• Moreover, the customer friendly ambiance and the organized retailing of
products also make Big Bazaar one of the successful retail industries in
India.

29. THANK YOU