DEVELOPMENT AND EVOLUTION OFRETAIL Weekly Markets Shopping &Traditional entertainment Village Fairs, Melas Local Kiranas Neighborhood &Daily Reach Convenience PDS Low PriceGovt. Support CooperativesRural Retail Adhaar, Hariyali etc New Experience Hypermarkets, Modern Shopping Supermarkets, Formats experience& Departmental Stores etc efficiency
TRADITIONAL MARKET DESTINATION FOR BOTH SHOPPING AND ENTERTAINMENT
DAILY REACH- KIRANA AND NEIGHBOURHOODSTORES NEIGHBOURHOOD & CONVENIENCE
ORGANISED RETAIL IN INDIA 2010 2008 2006 2000M & A andConsolidations PHASE IV PHASE III PHASE II PHASE I Supply Chain, Strong Backend support, Technology, Sourcing Range, Formats, Increase in Portfolio per capita retail SpacePhase III and IV Entry, Growth,are merging at Expansion, Toplinethis point of Focustime.
Current Market Scenario• Economic Slowdown and retail is also not untouched.• Retrenchments and Layoffs in both Western and Eastern world.• Working capital crunch across industries.• Planning and working on the limited resources. Managing of working capital is very important.
CHALLENGES IN RETAIL• Taxation laws that favor small retailers• Different structure of sales taxes in different states• Multi point octroi collection• Problems of supply chain and logistics• High cost of real estate• Limited land availability in prime locations
RETAIL STRATEGY IN CURRENT SCENARIO• Bringing out efficiency• Expansion and Consolidation decisions• Capturing the maximum share of entire consumption spend.• Increasing consumption
THE BIG BAZAAR STORY…….With a choice of around 1,70,000 productsand discounts ranging from 6 to 60 %, BigBazaar has managed to bring in both massesand classes. The reason it has emerged asIndia’s largest hypermarket, while so many otherstores have floundered, is due to clarity of thecompany’s mission and the soundness of itsstrategy. Store format, location, layout,merchandizing policies, and a host of otherelements of the company’s offer to the customerreflect a deep appreciation of the customerspreferences and purchase behaviour.
Things you would like to know• The biggest customer for Big Bazaar till date is a farmer in Sangli whose bill amount was Rs. 1,37,367• The inspiration to set up big bazaar came not from any foreign super market, but from a relatively small family run shop in Chennai, called “Saravana Stores”.• The first big bazaar store was set up in Kolkata and second and third were at Koramangala, Bangalore and Abids, Hyderabad• If you thought big bazaar outlets are crowded, they are intentionally designed to look that way.• Soon you can expect sales people inside big bazaar outlets trying to sell you insurance, personal loan and other products and services• Only apparels and clothing related items are sourced primarily from Pantaloon’s manufacturing units.• Big bazaar runs SAP which is one of the leading ERP solution provider.
SERVICES• Big Bazaar customer expect a low price model of things but a high standard of services is still expected.• standard are known by the word of mouth rather than advertising.• gap between the consumer expectations has been efficiently managed
Pricing Method• Value Pricing• Promotional Pricing• Loss-Leader Pricing• Special Event Pricing• Other pricing strategies: Buy more, save more Prices reduced on a combination Holding special discounts Highlighting the savings possible The Price Challenge Offer
PROMOTIONS AND ADVERTISING• Keep West-aSide. Make smart choice !• Shoppers! Stop. Make a smart choice !• Change Your Lifestyle. Make a smart choice !