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Future group: The Walmart of India

Group no-3
Nasir Malik
Khalilullah
Deepu shaw
Hrushikesh
Lisha Rafeek
Subodh Kumar
Objective of this case
 Understand

the issues and challenges faced by Walmart

and Future Group.
 Analyze

the retail formats and promotional strategies

adopted by Walmart and Future Group.
 Analyze

the potential for growth for Walmart and Future

Group.
 Examine

how Walmart and Future Group would combat

competition from other leading retailers.
Company Profile

Founded

by Mr. Kishore Biyani.

Incorporated
In

in 1987 as Manzs wear Pvt. Ltd.

2006 its name changed as Future Group.

Head

quarters in Mumbai.

Employees
Has

over 30,000 people.

over 1000 stores in 61 cities of India.

Spread

of 1.3 million square feet.
Retail format
Retail format
E-CommerceFood

offers wide range of product to doorstep.

Baazar- chain of large supermarkets, Brew Bar..

FashionHome

and Electronics, General merchandise.

Leisure
Books

brand includes- all, blue sky, etc.

and entertainment, wellness & beauty

and music and communication.

Pantaloon

retail chain, Hypermarket- Big Bazar

Supermarket

and departmental stores.
Retail formats of walmart
Retail formats of walmart
Discount
To

stores, supercenters, specialty stores.

meet growing demand for one shop family purchase.

Neighborhood
Online
Small

markets- selling ltd drugs and groceries.

music store, merchandise stores, food and drugs

markets(bodegas), cash and carry stores

Membership

warehouse clubs, apparel stores.
Promotions
Direct

selling model- to touch and feel the product.

Walmart

slogan- always low price.

BigbazarBigbazar
Saal

isse sasta aur achcha kuch nhi.

to maximize market share used slogan-

k sabse saste teen din.

Innovative
Hafte

days.

offers like wednesday bazaar.

ka sabse sasta din to attract customers on week
Promotions
Exchange
Slogan-

bring anything old and take something new.

Bigbazaar
Low

offers called the junk swap.
also advertise on T.v, radio and print bill board.

price proposition- chane k bhaw kaaju.

Celebrity

endorsement- M.S. Dhoni, gurella marketing.

Termed

as value for money stores, 6 day biannual

compaign.
Psychological
Special

discounting like 99, 49

offers on festivals, buy one get one offers.
Technology deployment
Operational
Bar

strength of walmart was info. Sys.

code reader and EDI (electronic data interchange) for

information sharing with suppliers with in & across the stores
Retail

link to study POS data & product inventories.

Introduced

RFID to have more visibility in S&C.

Implemented
Walmart
Future

SAP to build transact. Mgt. sys.

launched e-commerce stores .

group also launched e- commerce.
Human capital
Walmart
High

employee turnover, low pay.

Relying
Benefits
But

known for giving importance to its employees.

on temporary labor.
package, especially health care coverage.

criticized for its employee relation.

PRIL

used its employees as assets.

Implemented

several T&D programs to encourage..

Implemented

Happy index program.
International ventures
In

1990, walmart started international expansion.

By

2004 it had 4900 locations in US, europe & asia.

Entered
In

in canada in 1994 with acquisition of 122stores.

2004, walmart purchased supermarket chains in Brazil.

And

later entered into china and japan.

Entered
Future

India into joint venture with Bharti enterprises.

group did not have international market.

However

player.

entered into joint venture with several foreign
Competition
Walmart



faced competition from departmental stores-

eg- Target, Kmart, costco, & BJ”s wholesale club.

Dollor

stores- to combat walmart launched walmart

express, a mini version of its discount stores.
Furute

group faced competition from organized retailers

Such

as reliance retail-marks and spencer,

RPG

group-spencer, bharti-walmart, shopper’s stop

Tata

tesco star bazaar, lifestyle international, and trent.
Competition


walmart and future group has to face biggest competition

with unorganized sectors.
As

in India mare than 95% retail market is unorganized.

Inspite

of competition with organized retail sector-

Walmart

and future group managed to successfully launch

new retail formats and it tried to cover entire retail ambit.
Looking ahead
PRIL

offered discount on a continuing basis.

Observer

opined that walmart and future group used

innovative add strategies to attract customers.
Future

group still have to compete with foreign and

domestic players to retain its market leadership.
Walmart

launched 5 year strategy to offer more healthier

and affordable food choices.
PRIL

also had a plan to achieve a turnover of Rs. 300bn.
Future group g 3

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Future group g 3

  • 1. Future group: The Walmart of India Group no-3 Nasir Malik Khalilullah Deepu shaw Hrushikesh Lisha Rafeek Subodh Kumar
  • 2. Objective of this case  Understand the issues and challenges faced by Walmart and Future Group.  Analyze the retail formats and promotional strategies adopted by Walmart and Future Group.  Analyze the potential for growth for Walmart and Future Group.  Examine how Walmart and Future Group would combat competition from other leading retailers.
  • 3. Company Profile Founded by Mr. Kishore Biyani. Incorporated In in 1987 as Manzs wear Pvt. Ltd. 2006 its name changed as Future Group. Head quarters in Mumbai. Employees Has over 30,000 people. over 1000 stores in 61 cities of India. Spread of 1.3 million square feet.
  • 5. Retail format E-CommerceFood offers wide range of product to doorstep. Baazar- chain of large supermarkets, Brew Bar.. FashionHome and Electronics, General merchandise. Leisure Books brand includes- all, blue sky, etc. and entertainment, wellness & beauty and music and communication. Pantaloon retail chain, Hypermarket- Big Bazar Supermarket and departmental stores.
  • 7. Retail formats of walmart Discount To stores, supercenters, specialty stores. meet growing demand for one shop family purchase. Neighborhood Online Small markets- selling ltd drugs and groceries. music store, merchandise stores, food and drugs markets(bodegas), cash and carry stores Membership warehouse clubs, apparel stores.
  • 8. Promotions Direct selling model- to touch and feel the product. Walmart slogan- always low price. BigbazarBigbazar Saal isse sasta aur achcha kuch nhi. to maximize market share used slogan- k sabse saste teen din. Innovative Hafte days. offers like wednesday bazaar. ka sabse sasta din to attract customers on week
  • 9. Promotions Exchange Slogan- bring anything old and take something new. Bigbazaar Low offers called the junk swap. also advertise on T.v, radio and print bill board. price proposition- chane k bhaw kaaju. Celebrity endorsement- M.S. Dhoni, gurella marketing. Termed as value for money stores, 6 day biannual compaign. Psychological Special discounting like 99, 49 offers on festivals, buy one get one offers.
  • 10. Technology deployment Operational Bar strength of walmart was info. Sys. code reader and EDI (electronic data interchange) for information sharing with suppliers with in & across the stores Retail link to study POS data & product inventories. Introduced RFID to have more visibility in S&C. Implemented Walmart Future SAP to build transact. Mgt. sys. launched e-commerce stores . group also launched e- commerce.
  • 11. Human capital Walmart High employee turnover, low pay. Relying Benefits But known for giving importance to its employees. on temporary labor. package, especially health care coverage. criticized for its employee relation. PRIL used its employees as assets. Implemented several T&D programs to encourage.. Implemented Happy index program.
  • 12. International ventures In 1990, walmart started international expansion. By 2004 it had 4900 locations in US, europe & asia. Entered In in canada in 1994 with acquisition of 122stores. 2004, walmart purchased supermarket chains in Brazil. And later entered into china and japan. Entered Future India into joint venture with Bharti enterprises. group did not have international market. However player. entered into joint venture with several foreign
  • 13. Competition Walmart  faced competition from departmental stores- eg- Target, Kmart, costco, & BJ”s wholesale club. Dollor stores- to combat walmart launched walmart express, a mini version of its discount stores. Furute group faced competition from organized retailers Such as reliance retail-marks and spencer, RPG group-spencer, bharti-walmart, shopper’s stop Tata tesco star bazaar, lifestyle international, and trent.
  • 14. Competition  walmart and future group has to face biggest competition with unorganized sectors. As in India mare than 95% retail market is unorganized. Inspite of competition with organized retail sector- Walmart and future group managed to successfully launch new retail formats and it tried to cover entire retail ambit.
  • 15. Looking ahead PRIL offered discount on a continuing basis. Observer opined that walmart and future group used innovative add strategies to attract customers. Future group still have to compete with foreign and domestic players to retain its market leadership. Walmart launched 5 year strategy to offer more healthier and affordable food choices. PRIL also had a plan to achieve a turnover of Rs. 300bn.