Bigbazar, case of Harvard University

1. Priya Garg
Pallawi
Pitambara Mishra
Parul Gupta
Pooja More

2. 
 Founder and CEO
 Has in-depth understanding of Indian consumers
 Skilled in anticipating the needs and taste of Indian
consumers
 Personally involved in site selection
 Rajah of Retail
KISHORE BIYANI

3. 
 Pantaloons Retail India Limited
 Fastest growing retail chain in India.
 Class less Retailer
 Parent Company of Big Bazar
PRIL
PRIL
Aspirational
Non-
Aspirational

4. 
 Sold merchandise in five segments
 Fashion
 Food
 General Merchandise
 Leisure and Entertainment

5. 
 Early 2000s
 First Bigbazar store was opened
 Extremely successful since its inception
 Net sales increased to $42 million to $249 million
 Stock market also responded favorably too
 Success to be traced to its Indian-ness.
 Price was also played an important role in its success
 Tagline: “Isse sasta or acha kahin nahi”
SUCCESS STORY …

6. 
 Attracted senior executives of company like
 Procter and Gamble
 Unilever
 Fear of competitors
 Reliance
 Walmart
SUCCESS STORY …

7. 
 World’s 8th largest retail market
 Over 12 million retail outlets- more than rest of the world
combined
 Reasons of success
 Convenient
 Low price
 Tradition of offering credit
 In contrast the organized retail outlets covered only 0.4%
of Indian market share
 Experts believed in the growth of organized retail outlets
TRADITIONAL
RETAILING IN INDIA

8. 
MODERN RETAILING
IN INDIA
Modern
Retailing
Lifestyle
Department
store
Single Brand
Value
Hypermarket Food Store

9. 
 Challenges
 Establishing operations in small cities
 Non-affordable real estate
 Poor infrastructure
 Difficult supply logistics
 Features which differentiated
 Lower price of goods of comparable quality
 Greater variety of goods
 Store-based amenities

10. 
 Pantaloons
 Launched in 1987 as men’s wear Pvt Ltd
 India’s first trouser brand
 In 1997, High Fashion family department store
 Middle and upper class customers
 In 2005, stores across high traffic areas
 Central Mall
 Launched in 2004
 Destination to shop, eat and celebrate
 Mall without internal walls
 Broad mix category of goods
 Apparel
 Toys
 Music
 Books
 Entertainment Zones
 Food court
PRIL’s BRAND AND
SHOPPING MALLS

11. 
 Bigbazar
 Launched in 2001.
 Typical Indian bazar with modern retailing features
 Parking
 Air conditioning
 Merchandise return privileges
 Offers wide range of products
 “More for less” and “our product at your price”
 Family oriented, happy shopping destination
 Food Bazar
 Launched in June 2002, within a Bigbazar store
 In six months- it increased to 42 outlets and 18 standalone stores
 Sold fresh produce, consumer packaged goods, staples and ready to cook
products

12. 
 Indian consumers are not ready for clean, linear
layouts.
 Many upper middle class or wealthy Indian
households, domestic workers often shopped for
food and consumables.
 Domestic workers who never shopped at
supermarket were more comfortable at Big Bazar.
 Indian families are frequently constrained for “time”
and want no hassle experience.
CONSUMER
BEHAVIOUR

13. 
 The retailers used innovative promotions.
 Advertisement titled “Umeed se dugna” to reinforce
its value pricing.
 Another titled,”Pehle sasta ,doosra usse bhi sasta”
which showcased a variant on the “buy one get one
free”.
 One of the most popular was”Joona do naya lo”.
consumers got store coupons of worth $2 in
exchange.

14. 
SUPPLY CHAIN AND
ITS LIMITATIONS
Factory
C & F Agent
Distributor
Wholesaler
Small Retailers
Large Retailers Modern Retailer

15. 
 Vinay Shroff, supply chain head explained that traditional supply chain
maintain high flexibility , despite of its low cost.
 As the traditional retailer operates on 8% gross margin whereas modern
retailers like Big Bazaar’s gross margin was 15%
 But the doubt was that whether this supply chain would be able to service
Big Bazaar’s need as they are planning for rapid growth
 They thought of keeping modern supply chain as a defensive option
 But having companies own supply chain is not a good idea because:
 Expensive and financial advantages uncertain

16. 
 They had an major promotion with 30% discounts, a day before, on India
Republic Day holiday, 2006
 The turn up for this was so huge that they closed their stores in the afternoon
 Biyani was thinking of new opportunities in home furnishing
 In 2005, Pantaloons started working with colleges and training industries- to
get employees
 Need to develop real estate
 Pantaloons launched a property fund- they raised $330 million and plans to
increase it to $950 million by 2008
 The company has also announced to launch 55 new malls across the country
CHARTING THE
FUTURE

17. 
 Biyani thought about the forward pace of growth
and the enlarging footprints of his company. Should
he slow down? Should he focus the company and let
a few retail opportunities go by? Or, should he let
the momentum propel him forward?
THE BIG QUESTIONS