Professional Documents
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Brand Brief Big Bazaar
Brand Brief Big Bazaar
Project Management
Company:
o Name: Big Bazaar
o Operating Company: Future Retail
o Agency: DDB Mudra
Information:
o Target Markets:
According to Kishore Biryani’s 3-C theory, Change and Confidence among the
entire population is leading to rise in Consumption, through better employment
and income which in turn is creating value to the agricultural products across the
country. Big Bazaar has divided India into three segments:-
1. India One: Consuming class which includes upper middle and lower
middle class (14% of India's population).
2. India Two: Serving class which includes people like drivers, household
helps, office peons, liftmen, watchmen, etc. (55% of India's population).
3. India Three: Struggling class (remaining 31% of India's population).
Also, A major chuck of their revenue comes from the growing young
population and house wives(Decision makers of a household)
Segmentation - Parameters used for filtering and defining target market are
demographics and psychographics
Demographics
o Age: 24 – 60 Years
o Gender: Male / Female
o Income: 1 Lakh (MHI), 12 Lakhs (Per Annum)
o Education: Graduate / Post Graduate
o Occupation: Middle Level Executives
o Family Status: Young Couples (DINK - Dual Income, No Kids -
childless and childfree couples / Couples with young kids)
o Location: T1 Cities (Migratory)
o SEC: B+
Psychographics
o Is Time-Poor, but is in eternal quest for the elusive TIME-LIFE
balance
o Has a dynamic lifestyle which keeps pace with the changing
fashion and trends
o Is a pro-summer – a consumer who by virtue of his influence
over peers promotes brands he/she uses
o First to find out and try out the `New’
o Brand conscious but not brand slave
o Makes decisions as a couple
o Home proud – large friend circle
o Balances elegance and comfort
o Looks for a bargain but will not admit it
o Distribution channels:
o A Gaze into the Retail Industry: The retail sector in India is emerging as one of the
largest sectors in the economy
The total market size was estimated to be around US$ 672 billion in 2016, thereby
registering a CAGR of 7.74 per cent since 2000.
Retail industry is expected to grow to US$ 1.3 trillion by 2020.
India will become a favorable market for fashion retailers on the back of a large
young adult consumer base, increasing disposable incomes and relaxed FDI
norms.
The retail sector in India is dominated by the unorganized retail trade, where
unorganized trade forms around 93% of the overall trade. This is in contrast with
the developed countries where the organized retail industry accounts for almost
an average of more than 80% of the total retail trade. This highlights a lot of scope
for further penetration of organized retail in India.
Drivers
o Demand
Rising income levels leading to increase in disposable income
Burgeoning Middle Class
Favorable Demographics, a young and working population
Urbanization and growing brand orientation
o Political Reforms
Liberalization of FDI policies in retail coupled with the Goods and
Service Tax
o Supply
Rapid real estate and infrastructural development
Easy availability of credit
Innovative physical and online channels, increased service
orientation
Primary sub-categories (Food and Grocery is the largest category within the retail
sector with 60 per cent share followed by Apparel and Mobile segment. But within
the organized retail sector, apparel is the largest segment. “Food and Grocery” and
“Mobile and telecom” are the other major contributors to this segment)
o Food and Grocery
o Apparel
o Mobile and telecom
o Food service
o Jewelers
o Consumer Electronics
o Pharmacy
o Others
Challenges
o Top concerns for retailers
Inventory management
High operating costs
Working capital management
Complex regulatory framework
Talent retention
Slowing revenue growth and low retail productivity
Inflation
Inefficiencies in the supply chain
Achieving profitable growth
o Brand Awareness: Big Bazaar the only retail brand among top 10 brands in India in
terms of Brand Equity (Market Xcel). This speaks highly of the brand as equity entails
much more than awareness. It brings in additional dimensions of loyalty, brand
associations, Perceived quality and other proprietary assets.
Big Bazaar in all its marketing communications, has strong associations with the
low price and amount of value it creates for a customer with all purchases.
This in turn enhances its position statement in terms of differentiability and
sediments the notion of cost effectiveness and savings in the customers mind.
The above mentioned points enhance Big Bazaar’s brand recall and
Promotional Strategies: The various promotion schemes used at Big Bazaar include:-
o Saal ke sabse saste 5 din.
o Hafte ka sabse sasta din “Wednesday bazaar”.
o Exchange Offers “The Great Exchange”.
o Decide your price
o Kitchen Stock Exchange
o Free Shopping Weekend
o Mega Home Fest
o Public Holiday Sale
o Mahabachat
o Future card (3% discount).
o Shakti card
o Advertisement (print ad, TV ad, radio).
o Brand endorsement by M S Dhoni, Asin and Shikhar Dhawan.
o Big Bazaar has come up with 3 catchy lines written on hoardings taking on biggies like
Westside, Shoppers stop and Lifestyle. They are:-
“Keep West - aSide. Make a smart choice!”
“Shoppers! Stop. Make a smart choice!”
“Change your Lifestyle. Make a smart choice!”
History of brand communications: Big Bazaar connects with the masses effectively.
The communication of brand Big Bazaar is sharply focused and to-the-point. It is noticeable that Big
Bazaar talks in local language. For e.g.
o “Isse Sasta Aur Accha Kahin Nahin”
o “Saal Ka Sabse Sasta Din”
o “Hafte ka Sabse Sasta Din”
o Sell your Bhangar at great rates”
o “Purana Do Naya Lo… Badal Dalo”
o Stall ke Bhaav Balcony
o Chane ke Bhaav Kaju
o Paise Jodo Kaam Aayenge
All this smart communication has worked wonders. Big Bazaar actively chooses not to have a
discourse in directly English and sticks to a local language more suitable in the region it advertises in.
This creates a clear and distinctive position in customer’s mind. This shows that Big Bazaar is
perceived as a store which knows India and Indians well. Its communication has been successful in
achieving this objective.
It is also noteworthy that Big Bazaar focuses on promoting its value based pricing and promotional
events/days through its advertising. Secondary focus is generally on appealing to the logical and
rational Indian consumer (value for money) and invoking cognition based attitudes. E.g.: Show for
yourself. (Self-association)
Competitive Brands: Since the retail sector is so expansive, Big Bazaar has to face a great deal of
competition from various domains.
Since Big Bazaar sales such a wide variety of products from different categories, pitting Future group
against other retailers makes much more sense.
Following is the competition:
1) Reliance Retail
Reliance Fresh has over 500 stores in India selling fresh fruit and vegetables
while Reliance Smart is a range of supermarkets located in various Indian cities.
The company also owns Reliance Digital, that has some 2,000 stores selling
electronics and mobile phones across India, Jio Stores has operations in 700
cities of this country, lifestyle retail chain Reliance Trends has 419 stores, a
specialized brand store for women, Project Eve operates about 10 outlets,
Reliance Jewels has over 60 showrooms.
Additionally, Reliance Retail operates some 419 stores across India for top
foreign brands including Marks & Spencer, Vision Express, Quicksilver, Diesel,
and others.
2) Tata Group
The group’s company, Trent Ltd operates Westside which is billed as India’s
fastest growing lifestyle store.
Trent Ltd also owns and operates Star Bazaar in Joint Venture with British retail
giant, Tesco.
Additionally, Tata Group owns several retail stores that includes showrooms for its
passenger and commercial vehicles, Croma brand of electronic and home
appliance outlets, Poltrona Frau Group Design Center for luxury furnishings, World
of Titan- which is India’s largest watch retailer, Titan Eye+ chain of eyewear and
prescription glasses stores and two exclusive gems and jewelry boutiques branded
Tanishq and Zoya.
3) Raymond Group
Raymond Ltd Group is well reputed for its eponymous brand of clothing and
superior quality fabrics. The parent company is the world’s largest manufacturer
of integrated fabrics.
Raymond Group owns over 1,100 showrooms in nearly 400 cities of India under
this flagship brand.
The company also manufactures Fast Moving Consumer Goods under Park
Avenue, JK Helen Curtis, JK Ansell and KamaSutra brands.
Further, there are retail stores and retail booths of the Raymond brand in some 50
countries worldwide.
4) Kurl-on
The company specializes in coir and foam based products.
Additionally, the company also makes pillows and cushion, sofas, furniture,
furnishings and foam products.
Kurl-on operates some 500 stores in India under three brands- Kurl-on Home
Komforts, Kurl-on Mattress Xpress, and Kurl-on Corner.
Its products are sold by more than 10,000 dealers and stores in more than 1,000
locations in India.
5) Aditya Birla Fashion & Retail Ltd
The company owns nearly 700 stores across India. ABFRL has also franchisees
abroad.
ABFRL’s brands include Madura Fashion division, Pantaloons Fashion and Retail
and Madura Fashion & Lifestyle.
ABFRL’s fashion brands include Louise Philippe, Van Heusen, Allen Solly and Peter
England.
It also includes India’s first fast-fashion youth brand, People; India’s largest fully
integrated fashion multi-brand outlet chain, Planet Fashion; India’s largest
premium international brand retailer.
More than 330 stores located in 200 cities and towns across 25 states of India
make Kewal Kiran Clothing Ltd a formidable player in India’s retail industry.
“Kewal Kiran Clothing Limited (KKCL) is one of India’s largest branded apparel
manufacturers, engaged in the designing, manufacturing, and marketing of
branded jeans and a wide range of western wear, since 1992,” states its corporate
website.
The company’s flagship is Killer brand of denim wear.
Other brands include integrity, K-Lounge, and Easies. The company also offers a
franchise for its stores in foreign countries.
Avenue Supermarts Ltd owns DMart stores in several states of India, including
Maharashtra, Karnataka, Gujarat, Telangana, Andhra Pradesh Madhya Pradesh
and Chattisgarh.
Godrej India Ltd is one of the largest producers of Fast Moving Consumer Goods in
this country.
Its retail outlets include Godrej Nature’s Basket- stores that sell high-quality food
products and Godrej Interio showrooms that offer furniture, furnishings,
electronics and electrical appliances and other home and office requirements.
Godrej India Ltd has a global presence, with its products exported around the
world.
The company owns and operates Inorbit Malls. It also runs company Shoppers
Stop Ltd, which runs about 85 eponymous stores in some 40 locations in the
country.
K Raheja Corp Group is also engaged in the hospitality sector and operates
Renaissance chain of luxury hotels in India.
Its portfolio includes apparels and household goods, footwear, toys, games,
handbags, cosmetics, home furnishing, decor product and sports items.
V2 Retail Ltd has 27 stores in India, including four in New Delhi- National Capital
Region, 11 in Bihar, six in Uttar Pradesh, two in Odisha, and one each in
Uttarakhand, Jharkhand, Karnataka, and Assam, states the company website.
Since its humble beginnings in 2003, V Mart has graduated into an Indian retail
major.
V-Mart primarily operates in Tier-II and Tier-II cities of India, under the brand
‘Value Retail’ departmental stores.
The company website states, V-Mart Retail owns 170 stores across 144 cities in 14
states and Union Territories, with a total retail area covering 1.2 million square
feet area.
V-Mart stores are located in Bihar, Chandigarh, Gujarat, Haryana, Jammu and
Kashmir, Madhya Pradesh, New Delhi, Punjab, Rajasthan, Uttarakhand and Uttar
Pradesh.
Cantabil Retail India Ltd designs and retails an eponymous brand of fashion wear.
The company has a network of over 180 retail outlets Cantabil offers the complete
range of formal-wear, party-wear, casuals and ultracasual clothing for men and
women.
Cantabil brand’s popularity can be gauged from the fact that it sold fashion wear
worth Rs. 1.61 billion during the financial year 2016-2017.
The company owns another brand, Kaneston, which is also popular among Indian
shoppers.
Direct Competitors: Competition from other hypermarkets, supermarkets and departmental stores
that have a similar offering to Big Bazaar.
o Reliance Fresh
o Spencer’s Retail (Hyper)
o DMart
o Star Bazaar
o More
o Shopper’s Stop
o Spar Hypermarket
o Best Price Modern Wholesale (Walmart)
o Vishal Megamart
o Local Kirana Shops
o Amazon
o Flipkart
o Snapdeal
o Grofers
o big basket
E-Tail Industry: E-commerce is expanding steadily in the country. With advancements in quality of
internet access, payments and computing on mobility platforms, changed consumer behavior with a
large active internet user base, customers have the ever increasing choice of products at the lowest
rates by various retailers. E-commerce is probably creating the biggest revolution in the retail
industry, and this trend would continue in the years to come. Currently India’s internet penetration
stands at around 35%.
o E-tail in India can be broadly categorized as:
Domestic – sale within India (Amazon, eBay, Flipkart, Snapdeal, Shoppers-Stop,
Reliance, Croma, etc)
Cross-Border – sale in India from outside India. (The U.S. is one of the top ten
countries for cross-border shopping for Indian buyers. Baby supplies, toys,
clothing, footwear, automotive, wearables and accessories, jewelry, watches,
personal care and health products and digital entertainment and educational
services are some of the leading categories for cross-border B2C ecommerce.
Challenges restricting the growth of cross-border ecommerce include high
shipping costs, import duties and complexities in returns and exchanges)
B2C – sale between etailer and consumer (Flipkart, Myntra, Jabong, Amazon,
Snapdeal, eBay, PayTM, Shopclues, Pepperfry, Zomato, BigBasket)
Marketplace and Inventory based
Single brand and multi brand
o It has been found that India’s e-commerce is one of the fastest growing channels for
commercial transactions. E-commerce in India is growing at an annual rate of 51%, the
highest in the world, and is expected to jump from $30 billion in 2016 to $120 billion in
2020 according to an ASSOCHAM-Forrester study paper.
Ecommerce Info and Trends: Concepts such as online retailing and direct selling are becoming
increasingly popular in India thereby boosting growth of retail sector.
o E-commerce is probably said to create a revolution in the retail industry in the years to
come. With the rapid expansion of e-commerce, there can be seen a trend of ever
increasing choice of products at lowest rates. All of this has led to intensified
competition in the industry.
o Online retailers provide promotional prices in the market, offering a significant boost to
e-retailing in consumer durable sector
o Online retail business is the next generation format which has high potential for growth
in the near future. After conquering physical stores, retailers are now foraying into the
domain of e-retailing to leverage the digital retail channels (e-commerce), which would
enable them to spend less money on real estate while reaching out to more customers
in tier-2 and tier-3 cities.
o Options like cash-on-delivery and manufacturers’ warranty add fuel to this rage. Cash-
on-delivery is the most preferred payment option with over 30 per cent of buyers opting
for it in India
o India's ecommerce industry's sales rose 40 per cent year-on-year to reach Rs 9,000 crore
(US$ 1.5 billion) during the five-day sale period ending September 24, 2017, backed by
huge deals and discounts offered by the major ecommerce companies.
Examples:
In February 2017, Myntra became the 1st e-commerce brand to manage the fashion
brand -- Mango’s Omni channel presence, globally.
As of February 2018, Paytm Mall has decided to enter into physical retail and planned
to set up a brick-and-mortar store in New Delhi, co-branded with Red Tape shoes,
where customers can walk in, scan product bar codes, browse and make purchases
via its mobile app. The company is targeting 400 stores by February 2019.
In February 2018, Amazon launched its food retailing business called Amazon Retail
India Pvt Ltd in Pune, India on a pilot basis, thereby becoming the first foreign
ecommerce company to stock and sell food products directly to consumers.
KartRocket, a Delhi based e-commerce enabler has completed its US$ 8 million
funding round by raising US$ 2 million from a Japanese investor, which will be used
to enhance Kraftly, a mobile-first online-to-offline marketplace targeting small
sellers, individuals and home-based entrepreneurs in India in product categories such
as apparel and accessories.
o A new expansion plan named 'Retail 3.0' has been unveiled by the Future Group, under
which it has partnered Google, Facebook, and Deloitte and will aim to become the
largest integrated consumer company in Asia with a trillion dollar revenue by 2047.
o The Future Group will set up 4000 “neighborhood” retail stores in the next 3-5 years as
a part of its focus on small stores. The brand will increase the number of stores from
538 in March 2017 to 1000 by September 2018.