Retail visit report on Big Bazaar retail strategy in Bharuch

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Individual Retail Visit Report
OBSERVATIONS AND ANALYSIS OF BIG BAZAAR, BHARUCH, GUJARAT.

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Cardiff Metropolitan University
Karjat, Mumbai.
Retail Management Strategy
MODULE TUITOR: Mr. Bibhas Basumatary
Semester 2: 2014 -15
Assignment – 1:
Observations and Analysis of a Retail Store
Prepared BY
Name: Sohel Jamadar
Batch: CMBA 4
Cardiff Student Id: st20076738

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Contents
Brand Philosophy ....................................................................4
Socio-Economic Importance of Big Bazaar in Bharuch,
Gujarat.....................................................................................5
Retail Type and its Product/ service Categories ....................6
Merchandise Mix..................................................................6
Servicing ................................................................................6
Evaluation of the Key Strategic Drivers of Retail Industry ....7
Strategy .................................................................................7
Modern Technology Deployed by Big Bazaar..........................8
Marketing Mix Strategy Adopted By Big Bazaar to Gain
Competitive Advantage ..........................................................9
Bibliography...........................................................................11

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Brand Philosophy
“Retail involves the sale of goods from a single point (malls, markets, department stores etc.)
directly to the consumer in small quantities for his end use (Management Study Guide,
2013)”.
“Retailing is defined as a conclusive set of activities or steps used to sell a product or service
to consumer for their personal or family use (Shinde, Khaparde and Kazi, 2013-14)”.
The Retail Sector of Indian Economy is going through the phase of tremendous
transformation. The retail sector of Indian economy is categorized into two segments such as
organized retail sector and unorganized retail sector with the latter holding the larger share
of the retail market. With the onset of a globalized economy in India, the Indian consumer's
psyche has been changed. People have become aware of the value of money. The retail
industryisone of the biggestmoneyspinnersintheworld,notchingupUS$6.60 trillion(Rs.2.64crore
crore) in turnover (Source: Euromonitor Study).
Naye India Ka Bazaar, it clearly signifies the youth population of India. Big Bazaar is on constant
innovationof itsofferingasit has to maintainlow level marginthatcaters differentsectorof society
in India. Big Bazaar as a hyper market is designed to be for Indian customers.

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Socio-Economic Importance of Big Bazaar in Bharuch, Gujarat
The discountretailerswhichhasspentlast 3 years to re-positionthemselvesasthe modernretailers
as more hipandtrendy,with52weekof social mediacampaignpushingeverythingfromlinenshirtto
denim jeans and all grocery items and homeware products.
Withone store in Bharuchfreestandingorstandalone store wasthe convenientpalace forme tovisit
as forothers,asit issituatedatthe centre of the citywhichcatchesthe eye of almosteveryindividual
inthe city.Withitsnewandexcitingoffersbigbazaarisable toattractmore andmore footfallstovisit
theirstores, Sabse saste 5 din The WednesdayBazaar beenthe great hit for big bazaar success.The
advantage big bazaar enjoysas the onlyhypermarket inthe city also there are no retailernearbyto
whom it has to share their traffic with. They are
 Main location with lot of front space
 No close/far competition in close proximity
 High flexible timing with lower irritation of traffic
 First mover advantage as the only hyper market in the current location
 Reduction in cost is important to maintain low prices.
 No rental fee as the place and the building is owned by the same owner
 Structure of building is to store basically to divide grocery and apparels market
 Store isaccompaniedwithinoxmultiplex theatre whichworksasthe attractingpointforthem.
With eye catching advantages with retail industry there are also disadvantagesthat play a vital role
whichhelpthishypermarkettoimprove theirstrategiesandmaintaininglongtermadvantages.They
are
 High competition with regard to consumer durable products with reliance digital and other
small electronic players.
 With highproduct varietythere hasbeen space problemarisingthat worksas hurdle intime
of seasonal sales.
 Cost of operation thatare requiredtorun store are borne by bug bazaar that add to the cost
to the final consumer.
Big bazaar takes over its disadvantage as it is the only hyper market catering to different need of
different customer which are not fulfilled by others retailers in that particular area. There is
competitionmainlyinelectronicproductswhichare offeredbysomeof the national andlocal players.

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Retail Type and its Product/ service Categories
Big Bazar comes under hyper market retail format.It sellseverything from apparels to kitchenware,
from kids wear to men and women wear. Big bazaar is a hyper market combining super market and
departmental store providingall range of productsof groceryand general merchandiseall underone
roof. They are mainly in food, grocery, apparels, furnishing, and consumer durables retail.
Merchandise Mix
Apparels Food Product Chill station Home &
personal care
Fashion &
Jewellery
Child care &
toys
Formal wear Staple Soft drinks Shampoo Footwear Kids wear
Denim Ready to cook Packed juice Detergent Beauty care Toys
t-shirts Ready to eat Milk items Liquid wash Accessories Sanitary care
Fabrics Spices Frozen food Beauty
product
Party wear Beverages Ice cream Utensils
Sarees Tea & coffee Crockery
Kids wear Plastic items
Seasonal wear
Servicing
Big bazaar provides a wide range of service to its customer like trial room, elevator, car parking,
security,baggage counter,customerhelpdesk.Theyprovide awide range of productand after sales
service by providing on stop shop for their buyer especially in electronic goods. They provide a very
convenientshoppingexperience totheircustomer,thereare salespeoplewhoare trainedtohelpthe
customertofindtheirway,alsothe store layoutplaysasignificantroleinarrangingproductwhichare
fast moving to slow moving.

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Evaluation of the Key Strategic Drivers of Retail Industry
The global retail landscapeischanginginsome dramaticways.Retail salesare currentlyimproving.At
the same time,competitivenessof boththe U.S. retail and global marketplace isescalating.Whereas
category dominant retailers were once the store of choice for a variety of products, chains like Wal-
Mart, Carrefour, METRO Group, Tesco and Target have taken over in most categories ranging from
toys to jewellery. Costco is the sixth largest retailer in the U.S. and the ninth largest in the world. A
critical componentof theirstrategyisvalue-basedpricing.Theygenerallydonotmark-upmerchandise
more than 14 %, compared to most supermarkets and department stores whomark-up products 25
and 50%, respectively (Krafft and Mantrala , 2010). With current economic scenario it is clear that
there is a significant increase in consumer expenditure,with the increase in future demand retailer
will have to be more flexible in terms of delivery and after sales services.
Strategy
Store Location: - store location is very important for the store like big bazaar as they play as
the discount retailers where cost reduction is the primary function to maintain profitability.
In city like Bharuch occupying placein the centre of the city is difficultand expensive, however
being single hyper city market maintains monopoly in this business.
Product Mix: - Big bazaar offers large range of product mix. General perception in the mind
of the big bazaar customer is value for money driven.
Store Design: - it creates an image in the mind of the customer what the store is all about.
Exterior as well as interior design of store is attractive to customer giving a sense of freedom
to choose.
Target consumer: -
Geographic: - Bharuch, Gujarat
Demographic:-housewife’s,Young boys and girls,Kids (12-15 years), indulge buyer, snackers,
and working class people.
Psychographic: - Stylish, self-esteemed, status oriented, self-conscious, price conscious.
Behavioural: - quality, weekly buyer, monthly buyer, style conscious.

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Modern Technology Deployed by Big Bazaar
Withthe increasingcustomerbaseandnumberof storesithasbecomecompulsoryforeachandevery
retailertoinvestinITforthe smoothfunctioningof theirorganisation.Withtheevolvingtechnological
use retailersande-commerce playersare able totrackthe customerbehaviour,theirshoppingtrends,
mostimportantlytheycanofferrightproducttothe rightcustomeratthe righttime whichhelpthem
to be more competitive (Forbes, 2015).
India’sfuture groupBigBazaarhasmade itsoperationcompletelyITbase bydeployingEPOSandretail
software from a German based Wincor Nixdorf a leading Innovative IT solution provider for retail
stores and retail bank to streamline their operation and to increase the customer experience at the
store.
Deployment of Information system code reader and EDI (electronic data interchange) for sharing
order procurement detail information with the suppliers and within all stores. Implemented future
SAPsystemandRFIDsystemtomanage the consignmentarrivedateverystore andtogetinformation
of the store inventories (Wincor Nixdorf, 2010).
EPOS AND SAP System Implementation

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Marketing Mix Strategy Adopted By Big Bazaar to Gain Competitive
Advantage
An effective marketing strategy combines the 4 Ps of the marketing mix. It is designed to meet the
company’s marketingobjectivesbyprovidingitscustomerswithvalue.The 4Ps of the marketingmix
are related, and combine to establish the product’s position within its target markets. (Kotler,
Armstrong and Cunningham, 2005).
7 Ps of MarketingMix
 Product :-There isno pointindevelopingproductwhichnoone wantsto buy,yetmany
businessfindawayto offerthe productand thentofindthe market.Perfectproductmust
provide value tothe customer byprovidingwhatcustomerandnotwhat we thinkthey
want.Big Bazaar beingthe supermarketoffersavarietyof productsand service toitshuge
base of customerbyhelpingthose offeringgoodstheywanttobuyat low price.Highmargin
productare kepton top selvesof the rackkeepinginmindthe psychologyof catchingeye
level attraction.ProductWidth,Breath,Lengthare wide asthere are numberof brandedand
inhouse brandproduct are offeredbybigbazar.
 Price: - Price is an integral partof any businessmarketingmix.Asa discountretailer’sbig
bazaar isfamousfor itslowpricingpolicy.Price of merchandiseiskeptatminimal orat the
marketprice,there are bundle offersandcashdiscountofferedinordertobe more
competitive. Productisonlyworthwhatcustomerare readyto pay forit. Productprice need
to be competitive butthatdoesnotnecessarilymeancheapest,small businessmaycompete
withlarge businessbyprovidingextrabenefits,service andvalue formoney.
 Place: - The place where customerbuyyourproductand meanof distributingyourproduct
to that place mustbe appropriate andconvenienttocustomer.The productmustbe
available torightcustomeratthe righttime rightplace and inthe right quantity.Place also
meanthe mediumthroughwhichyoureachto your customer,bigbazaarhas its online

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presence helpingitscustomerbase toreachthemfastand allowingthemthe convenience
of purchase fromtheirhome.
 Promotion:- Promotionisthe company communicates whatisdoesand whatiscan offer
to the customer.Goodpromotionstrategyisnotone waycommunicationratheritstwoway
processoptingtoget respondof itspromotional strategy.Promotioncommunicatesthe
benefitsthatacustomerobtainsfromthe productnot the feature of the product. Some of
the promotional strategyadoptedbybigbazaarare: -
Promotional offers
(i) Saal k sabse saste 3 din
(ii) WednesdayBazaar
(iii) Future Card (3%discount)
(iv) Shakti card(women)
(v) Advertisement(T.V,Radio,Print, etc)
(vi) Exchange Offer
(vii)Pointof purchase promotion
 People: - Anyone who comes in contact with the customer makes an impression
whether it be positive or negative, reputation of your brand depends upon your
peoples hand therefore it is very important to train your staff in customer handling.
Big bazaar has customer service desk which help the lost or undecided customer to
purchase their right product.
 Physical Evidence: - Product are displayed on the rack where people have security
that the product act as the physical evidence in order to exchange of money. All the
products are kept at a distance and the store is spaciously laid out. The physical
evidence demonstrated by the organisation must confirm the assumption of the
customer.
 Process: - The delivery of your service is usually done with the customer present so
how the service is delivered is once again part of what the consumer is paying for. In
Big bazaar customer are free to roam and select the product of their choice which is
helped by the shopping kart then the checkout is carried out by final payment desk.

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Bibliography
1. Forbes (2015) 5 Tech Trends That Will Hit Every Retail Store By 2020, March,
[Online], Available: http://www.forbes.com/sites/centurylink/2015/04/03/5-tech-
trends-that-will-hit-every-retail-store-by-2020/ [April 2015].
2. Kotler, P., Armstrong, G. and Cunningham, P.H. (2005) Principles of Marketing, 1st
edition, Toronto: Pearson Education Canada.
3. Krafft , M. and Mantrala , M.K. (2010) Retailing in the 21st Century: Current and
Future Trends, 1st edition, Pringer-Verlag Berlin Heidelberg.
4. Management Study Guide (2013) Understanding Retail - What is Retail ?, [Online],
Available: http://www.managementstudyguide.com/what-is-retail.htm.
5. Shinde, D.G.P., Khaparde , D.R.D. and Kazi, N.S. (2013-14) Retail Management, 1st
edition, Pune: Thakur Publicztion pvt. ltd.
6. Wincor Nixdorf (2010) India’s Future Group invests in Wincor Nixdorf’s retail
software and point-of-sale technologies as part of its country-wide store growth
strategy, 10 October, [Online], Available: http://www.wincor-
nixdorf.com/internet/site_TH/ASP/WincorNixdorf/Press_ASP/pressreleases/2010/Fu
ture%20Group.html?nn=602366 [2015].