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Bigbazaar 100414052630 Phpapp01
Bigbazaar 100414052630 Phpapp01
Bigbazaar 100414052630 Phpapp01
Presentation ByLagnajit Ayaskant Sahoo Somya Ranjan Pattanayak Priyanka Raj Sanat Rout
Plan of Presentation
Industry Analysis
Industry size Key Players Key Drivers of change(PESTEL, Diamond Analysis) Opportunity and Threat
Organization Analysis Company details Stake Holder Analysis Value System Resource Analysis Competitive Strategy Conclusion
Industry Size
Indias top retailers are largely lifestyle, clothing and apparel stores This is followed by grocery stores Following the past trends and business models in the west retail giants such as Pantaloon, Shoppers Stop and Lifestyle are likely to target metros and small cities almost doubling their current number of stores These Walmart wannabes have the economy of scale to be low medium cost retailers pocketing narrow margin
Key Players
Pantaloon Retail (India) Limited with over 12 million sq ft of retail space spread over 1,000 stores across 71 cities in India. Tata Trent limited Retail sector activity: Apparel, books and music Current store formats: Hypermarket, supermarkets Future plans: New venture called RPG Enterprises Stores: 250 stores, including 36 large format stores across 66 cities in India Retail sector activity: Music, food and grocery, beauty products Landmark Group Apparel, home dcor and furnishing, Current outlets: 15 Lifestyle stores and eight Home Centers Madura garments 82 store in India across 50 cities and five international stores Retail sector activity: Apparel Vishal Mega mart 180 showrooms in 100 cities, Retail area coverage of 2,990,146 sq ft Bata 1,250 outlets in India Provogue Ltd. Apparel and footwear, 124 own stores and 228 outlets in 64 cities Archies Ltd. Archies has 100 company-owned stores in India and 450 franchise-run outlets
PEST ANALYSIS
POLOTICAL Government is stable Government policy towards investment is liberal(49%) Labor law Restriction for MNCs ECONOMICAL Economy is growing(7.2%) Recovery from recession Monetary policy
CONTD.
Socio-cultural According to mckinsey report Indian consumer goods market is expected to reach $400 bl. By 2010 TECHNOLOGY Rapid expansion of IT sector New trends are coming
Retail industry in INDIA accounting 10% of the countrys GDP. Successive Indian government have steadily Liberalize policies related to investment, banking, trading etc. URBANISATION caused more concentration of middle income and high income people. Hypermarket is emerging as the most favorable format for the time being in India Increasing workforce of women Falling real estate prices Increase in disposable income and customer aspiration Increase in expenditure for luxury items Low share of organized retailing
Automatic approval is not allowed for foreign investment in retail. Regulations restricting real estate purchases, and cumbersome local laws. Taxation, which favours small retail businesses. Absence of developed supply chain and integrated IT management. Lack of trained work force. Low skill level for retailing management. Lack of Retailing Courses and study options Intrinsic complexity of retailing rapid price changes, constant threat of product obsolescence and low margins.
About Big Bazaar Out let Parent group Owner Founded Head quarter Industry website Tag line Vision
Hyper mart Chain of development store in India 120 out lets Located in India Future group Kishore Biyani (CEO) 2001 Jogeswari , Mumbai Retail www.bigbazar.com Is se sasta aur achha kahin nahi. Everything ,Everywhere, Every time for every Indian consumer in the most profitable manner
Contributions
Big Bazaar
Inducements
Contributions
Inducements
Non Market Stakeholders The Labor Unions The International Retail Stores The Politicians
40 more brands
Analysis
5 Forces
Rivalry among the competitor
Analysis
Reliance Retail, Aditya Birla Group , Vishal Retails, Bharti and Walmart, etc
FDI policy not favorable for international players. Economies of scale (minimum size requirements for profitable operations) High initial investments and fixed costs Cost advantages of existing players due to experience curve effects of operation with fully depreciated assets Scarcity of important resources, e.g. qualified expert staff
Threat of entrants
The bargaining power of suppliers varies depending upon the target segment. The unorganised sector has a dominant position. There are few players who have a slight edge over others on account of being established players and enjoying brand distinction. Consumers are price sensitive.. Availability of more choice. Unorganized retail
Threat of substitutes
Resource Analysis
Human Resource Well Trained Staff Appearance Empowered Individual Encouraged To Think Out Of The Box Employ close to 10,000 people and recruit nearly 500 additional people every month Use Scenario Planning as a tool for Quick Decision Making Security Gaurds At All Gates
Financial data
Strength - High Brand Equity - State-of-art infrastructure - EDLP - PoP promotions - Variety of stuff under single roof -MIS
Weakness
- Unable to meet store opening targets - Falling revenue/sq. ft. - General perception
Opportunity
Organized retail (4.15%) Evolving consumer preferences In Store Experience Improvements New formats and consumption space Looking at expansion
Threat
- Competitors - Government policies - Unorganized retail -Economic condition
Customer Segmentation
Big Bazaar targets higher and upper middle class customers. The large and growing young working population is a preferred customer segment. Big Bazaar specifically targets working women and home makers who are the primary decision makers.
G R L O O W W T H
Low
Strategy
Focus on Rural customer? 73% of population live in 6,00000 villages out of Total population 114 billion. Minimum support price. NREGS -100 days employment. Income from farm products is Tax free.
Thank You
References
www.bigbazaar.com It Happened in India- Kishore Biyani www.ibef.org www.google.co.in www.economictimes.com futurebazaar.com