Big Bazaar PDF

A Study of Innovative Marketing Practices In Retail Marketing Sector with
Special Reference to Big Bazaars in Maharashtra State.

2015
Chapter No. 05:

Big Bazaar: Innovative Retail Marketing
Practices.
Introduction.
It Happened in India.
Big Bazaar.
Marketing Techniques used by Big Bazaar.
Loyalty Program in Big Bazaar.
Different Retail Marketing Schemes Offered By Big
Bazar.
Customer Services of Big Bazaar.
Basic Marketing Strategy of Big Bazaar.
Core Values in Big Bazaar.
Different Customer services.
Customer Relationship Management of Big Bazaar.
Innovative Management Practices of Big Bazaar.
Strategic Objectives of the Company.
Innovative Marketing Strategies of Big-Bazaar.
Impact of Big Bazaar on the Consumers Retailers.
Big Bazaar’s New Marketing Strategy.
SWOT Analysis of Big Bazar.
Challenges to organized retail development in India.
Suggestions for overcome the challenges for
Organised Retail.
Chapter No. 05: Big Bazaar: Innovative Retail Marketing Practices. Page 191
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Introduction:
The Indian retail market is growing at a very fast pace of
about 20 per cent and has a market size of US$ 500 billion. The
retail sector is the second largest employer after agriculture. The
retail industry alone managed to generate more than 35 million job
opportunities. The Indian retail industry is segregated into two
sectors: organized and unorganized retailing.1 Organized retailing
comprises of those kind of trading activities which are undertaken
by retailers who are registered for sales tax, Income tax etc.
Corporate backed hypermarkets, retail chains, privately owned
large retail businesses are some of the examples of organized
retailing. Unorganized retailing mainly comprises of local kirana
shops; owner managed general stores, street vendors, convenience
stores etc. However now it can be seen that traditional markets are
paving way for development of departmental stores, supermarkets,
specialty stores. Shopping from malls and buying branded
products is also gaining momentum. Inspite of all this Indian retail
sector is mainly dominated by unorganized segment with 95 per
cent. The reason for this being deep penetration of this sector in
the rural areas and large number of Big Bazar stores in the urban
areas.
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. Nowadays the Indian consumers are well
versed with the concepts about quality of products and services.
These demands are the visible impacts of the Retail Sector of
Indian Economy. Since the liberalization policy of 1990, the Indian
economy, and its consumers are getting whiff of the latest national
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and international products, with the help of print and electronic

media. The social changes with the rapid economic growth due to
trained personnel, fast modernization, enhanced availableness of
retail space is the positive effects of liberalization.
It Happened in India:
Growing up in a joint family, Kishore Biyani was expected to
eventually follow his father and uncles and join their textile mill
business. However, Kishore Biyani was always a bit different, even
while young. He wanted to try something different. He classifies
entrepreneurs into three classes, creators, preservers and
destroyers. His family belonged to the preserver category, while he
wanted to be a creator. He was willing to experiment and take
risks. He wanted to create a readymade apparel brand. The idea
was conceived in the 1980s, and after some initial setbacks, he
established the Pantaloon Shoppe. Later, he thought of starting a
hypermarket retail chain, but was doubtful if the western model
would work in India, considering the Indian shopper’s psyche.
Then, he visited the ‘Saravana Stores’ in Chennai, and observed its
popularity among customers. He decided to use this as a model.
But his vision and model differed a lot from the Chennai based
retail chain. The Saravana Stores is a conservative family business.
The retail chain Biyani set up, Big Bazaar, is not. Also, Big
Bazaar expanded rapidly to establish branches all across the
country. It is now India’s largest hypermarket chain. In It
Happened in India, Kishore Biyani identifies three types of Indian
customers. India is the elite class, the high spenders. He targets the
next category. The middle class who make up a major chunk of the
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country’s shoppers. He and his team studied this section of

consumers and understood their needs. The Big Bazaar marketing
campaign was specifically targeted at this section of the society and
it succeeded. It Happened In India shares his dreams, vision and
his strategies. It also shares his personal journey, from childhood
to becoming the head of one of the most successful business groups
in the country today.2
Kishore Biyani is best known for bringing in the great Indian

retail revolution. What’s more, he has consistently gone against
conventional wisdom and charted his own course to make
Pantaloon Retail one of the fastest growing retail chains in not just
India but even the world. The company recently launched a
campaign celebrating ten years of Big Bazaar, part of Pantaloon
Retail. The touching campaign not only celebrated the success that
the retail chain has seen over the years but also tried to connect
with its customer base by saying sorry and thank you in the same
breath. The Big Bazaar journey has been fabulous. The company
did 150 stores in these ten years. It has been the most interesting
stretch for the company. In terms of growth, the company are the
fastest growing chain. Probably the first hypermarket chain in the
world that set up 100 stores in just seven years of its existence. In
that sense, it feels great. In fact, the company is a part of the
changing India. So, whenever the topic of modern India will be
touched upon, Big Bazaar too would be remembered in the same
breath.3
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Big Bazaar:
Pantaloon Retail (India) Limited was incorporated as Manz
Wear Private Limited in the year 1987. It became a public limited
company in 1991 and was renamed Pantaloon Fashions (India)
Limited and then Pantaloon Retail (India) Limited in 1999. Over
the years the company has accelerated growth through its ability to
manage change. It integrated backwards into garment
manufacturing and expanded its retail network at the same time. It
launched three successful brands – Pantaloon trouser bar denims
and John Miller shirts between 1987 and 1993. The company
introduced the concept of The Pantaloon Shoppe, an exclusive
men’s wear retail store, which expanded across India from 1994-
1998 . In the year 1997, Pantaloon moved to large format lifestyle
retailing with the launch of Pantaloons India’s family Store.
Pantaloon has grown to a 29 store network and occupies 2,63,000
sq ft of the retail space. They contributed Rs 174 crores to the total
turnover of the company.4
Big Bazaar owned by Pantaloon Retail India Limited, the

flagship retail chain of the Future Group, achieved a unique
milestone in the history of world retail - by being the first
hypermarket format in the globe to roll-out the fastest 101 stores
in a short span of seven years. This hypermarket chain was
introduced in India by Pantaloon Retail (India) Limited. The year
was 2001. The first store opened in Kolkata and was followed by
stores in Hyderabad, Bangalore and Aurangabad in a short span.
It works on the same economy model as Wal-Mart and has had
considerable success in many Indian cities and small towns. The
Group is confident of the Indian retail story. It has not slowed
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down its expansion plans despite many other retailers slowing

expansion, reducing the number of outlets, effecting layoffs and
even exiting the businesses. In 2006-2007 more Indians
discovered the value of shopping in Big Bazaar. Big Bazaar
launched 27 new stores in 22 cities, covering over 1.40 million
square feet. While Big Bazaar continued to expand in the large
cities it also tapped consumptions potential in smaller cities like
Agra, Allahabad, Coimbatore, Surat, Panipat, Palakkad, Kanpur,
Nashik, Jalagaon and Kolhapur. By May 2008, there were 89 Big
Bazaars spread across various cities and towns across the country.
Big Bazaar plans to have 300 stores and is expecting revenues of
130 billion rupees by the year 2011.5
At the time of the launch of Big Bazaar there was no real

precedent in the Indian market giants the RPG hypermarkets had
opened in Hyderabad only two months prior to the launch of Big
Bazaar. A western model had to be adapted to suit the needs of the
Indian environment various local markets and local market leaders
were studied. This was done to understand the product mix and
the prices offered. Saving is the key to the Indian middle class
consumer. The store which would be created had to offer value to
the consumer. Keeping this in mind, the concept of Big Bazaar was
created.
Big Bazaar offers a wide range of products which range from

apparels, food, farm products, furniture, child care, toys, etc.
Products of all the major brands are available at Big Bazaar. Also,
there are many in house brands promoted by Big Bazaar. Big
Bazaar sold over 3 lakh pairs of jeans, 50,000 DVD-players and
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25,000 microwave-ovens. In all, the fashion, electronics and

travel segments made up about 70 per cent of sales. The tag-line is
"Is Se Sasta Aur Accha Aur Kahin Nahi". They work on the model
of economics of scale. There pricing objective is to get Maximum
Market Share.
Marketing Techniques used by Big Bazaar:

 Value Pricing (Every Day Low Pricing): Big Bazaar
promises consumers the lowest available price without
coupon clipping, waiting for discount promotions, or
comparison shopping.
 Promotional Pricing: Big Bazaar offers financing at low

interest rate. The concept of psychological discounting (Rs.
99, Rs. 49, etc.) is used as promotional tool. Big Bazaar also
caters on Special Event Pricing (Close to Diwali, Gudi Padva,
Durga Pooja, Independence day, Republic day etc.)
 Differentiated Pricing: Time pricing, i.e., difference in

rate based on peak and non-peak hours or days of shopping
is also a pricing technique used in Indian retail, which is
aggressively used by Big Bazaar.
 Bundling: Selling combo-packs and offering discount to

customers. The combo-packs add value to customer.
Big Bazaar is aggressive on their expansion plans. Big Bazaar

started many new and innovative cross-sell and up-sell strategies
in Indian retail market. The various promotion techniques used at
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Big Bazaar include "Saal Ke Sabse Saste Teen Din", Future Card
(the card offers 3% discount), Shakti Card, etc.
Big Bazaar Hyper mart chain in India

Outlet 140 Outlets
Parent Group Future Group
Owner Kishore biyani
Founded 2001
Head Quarter Jogeshwari, Mumbai
Industry Retail
Tagline Is se sasta aur accha kahin nahi
Brand Image:
“Is se sasta aur accha kahin nahi” Nothing captures the
spirit of Big Bazaar better than this one line. It is a simple
statement and yet it positioned at the top of Indian customers
mind. It shows that big bazaar was built on the foundation of
entrepreneurship and simplicity. They believe in service and value
for the customers. They consider that it is their only duty to keep
customer in mind at every step; they go that extra mile and buy
directly from source in bulk so that they can get best rates by
keeping the margin low.
Merchandise:
Main objective of the store layout is to maximize the interface
between customers and merchandise. It provides easy accessibility
to the customers to view the offerings of the store. Layout of the
store has been strategically designed in order to make effective use
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of merchandise and passage to draw customers’ attention on

store’s offerings Big Bazaar has a wide range of merchandise they
have both branded and unbranded products like –
 Home lien items: Like bed sheets, pillow covers, carpets to
kitchen utility items like steel utensils and crockery and other
minor utility items required in a house.
 Electronic items: Like refrigerator, T.V, vacuum cleaner,
music system, vacuum cleaner, washing machine. Etc.
 Mobile Zone: A wide range of mobile phones and accessories
is available at lowest possible price.
 Furniture: All kind of furniture is available that one may
require decorating the house.
 Star Sitara: In this section all kinds of cosmetic items are
made available.
 Opticians: In this section all brands and types fashion
glasses are available.
 Men Ladies and kids wear: This section includes fashion
and casual wear for men ladies and kids both branded and
unbranded.
 Foot wear: In this section footwear for men women and kids
is made available.
 Music: A wide collection of CDs DVDs is made available.
 Toys: All kinds of toys for children are available.
 Stationary: All kind of office stationery and stationery for
school going kids is available.
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Loyalty Program in Big Bazaar:

According to Kishore Biyani, the big brain behind Big
Bazaar, price, quality or services are the only way to retain
customers in retail. The repeat customers spend more than the
average customers and need to be encouraged to come back. That’s
why the stores have started offering special discounts to customers
who join their loyalty card programme. Lifestyle, for instance, has
a loyalty programme called `The Inner Circle’, while Pantaloons
offers a `Green Card’. Rewards programmes, Westside have `Club
West’ and `First Citizen’ from Shopper’s Stop to woo the customer.
Firstly, Citizen Citibank Card and ICICI Bank had tie-up with Big
Bazaar. The ICICI Credit Card EDC terminals were setup in Big
Bazaar. The company woos the customers to subscribe for Future
Credit Card. The Future card is a loyalty cum credit card of future
holdings and the customer will get the full benefit of this card if
and only if the card is used in any of the Future Group outlets like
Big bazaar, and that too if swiped in an ICICI bank EDC machines
in the outlet cash counter.
Different Retail Marketing Schemes Offered By Big

Bazar:
 Exchange offer: A new offer came in from Big Bazaar, to
exchange your old goods for coupons which one can reimburse
with goods.
 Sabse Sasta Din: On the ‘Republic Day’ and ‘Independent

Day’ have special offer for ordinary Indians with Big Bazaar’s
mega sales festival, ‘Sabsa Sasta Din’. No event before had
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influenced a day’s routine of thousands of people in different

parts of the country like this sales festival.
 Wednesday Bazaar: Big Bazaar has introduced a

‘Wednesday Bazaar’ concept called “Hafte Ka Sabse Sasta
Din”. The aim, according to the chain, is to give homemakers
the power to save the most and even the stores in the city don
a fresh look to make customers feel that it is their day. The
Wednesday Bazaar also offers clothes, accessories and fashion
jewellery and personal care products.
 Monthly Bachat Bazaar: Big bazaar has scheme of

‘Monthly Bachat Bazaar’ at the starting of every month, its
start from date 1 to 8, it’s the time when most of the working
people get their salaries, so big bazaar take good advantage of
grabbing these salary by giving this scheme. This offer is on
food and beverages. Most of working people buys food and
beverages for whole month during these days.
 Special offer before college or school start: Big Bazaar

provide special offer when there is time of starting schools,
give special offer or discount on stationery items and for
college going students provide special offer on apparel like
jeans, t-shirt etc., on foot ware, bags, etc., In Big bazaar in
store offer on different product is going on the whole year.
 Sampling of new product: Big Bazaar arranges a sampling

stall for a new product coming into market to introduce.
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Customers can test those new items on free of cost and if they
like it then make purchase of it. In short customers can trail a
new product. Big bazaar has tie up with those products so that
this can be possible. Big Bazaar has provided sampling for
Nescafe, nimbooz, 7 up a new product of PepsiCo, act to pop
corn etc.
Customer Services of Big Bazaar:

Big Bazaar provides a wide range of services to its customers
like Trial rooms, Elevators, Car parking, Security, Baggage counter,
Trolleys, Gift wrapping, Free call in case of emergency, for
electronics item provide free home delivery, Wheel chair is
provided at the entrance of the Big Bazaar, stretcher, in any case a
mother wanted to feed her infant child or little child there is
mother room to feed the child, water so that one could shop easily.
They even provide them with after sale services in case of buying
electronic items. One of the major services provided by them are
one stop shop as one could get a whole range of items under one
shop and at the most reasonable price. They always have their
outlets in such a location where it is easy to commute.
Big Bazaar provides a customer help desk at entrance of the

shop, where customer can get all the necessary information of any
new scheme or offer going on. Customer desk is for helping and
guiding the customers. Customer desk help have complaint or
suggestion box in which customer can write their suggestion and
complaint regarding service, product etc. Big Bazaar provides toll
free number for customer care and email id through which
customers can give their complaints and suggestion. A complaint
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of any customer can be solved within 24 hrs by a person who

handle complaints if he is not able to solve it within 24 hrs then he
try to convince that customer, that it would be solve within few
hours or days. If that fellow is not at all able to solve the problem of
the customer then it goes to zonal office.
Basic Marketing Strategy of Big Bazaar:

According to Kishore Biyani’s 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 agriculture products across country.
Vision:
To deliver Everything, Everywhere, Every time for every time
for Every Indian consumer in the most profitable manner.
•
Mission:
 We share the vision and belief that our customers and
stakeholders shall be served only by creating and executing
future scenarios in the consumption space leading to economic
development.
 We will be the trendsetters in evolving delivery formats,
creating retail realty, making consumption affordable for all
customer segments – for classes and for masses.
 We shall infuse Indian brands with confidence and renewed
ambition.
 We shall be efficient, cost- conscious and committed to quality
in whatever we do.
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 We shall ensure that our positive attitude, sincerity, humility

and united determination shall be the driving force to make us
successful.
Quality policy:
All products sold at Big Bazaar are guaranteed to be at good
price and of good quality.
Price guarantee:
If within two days of purchase, you find a product of same
brand /quality available at a lesser price, please bring back to us
within ten days along with cash memo and we will give you a gift
voucher which will be of DOUBLE the value of the price difference.
Infrastructure Facilities:
A typical Big Bazaar store usually consists of 2-3 floors. The
Back office is situated at the ground floor. The Big Bazaar stores
are fully air conditioned and are equipped with music facilities,
escalators, Parking facilities.
4 P’S of Big Bazaar:

Product Mix of Big Bazar:
Apparels Home Care Chill Station Farm Produce
Denims & Shirts Shampoos Soft Drink Fruits
Fabrics Detergents Packaged Juices Vegetables
Formal Wear Soaps Milk Items Imported Fruits
Casual Wear Liquid Wash Frozen Foods Dairy Products
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Price Mix:
 Value Pricing.
 Promotional Pricing.
 Low Interest Financing.
 Psychological Discounting.
 Special Event Pricing.
 Differentiated Pricing.
 Time Pricing.
 Bundling.
Place Mix:
 Initially Identifies Future/Potential development areas.
 Acquire such areas at an early phase before the real estate
value booms.
 Located at high traffic areas.
 Design to look crowded.
Promotion Mix:
 “Saal Ke Sabse Saste 3 Din”
 Future Card (3%Discount)
 Advertising (Print ads, TV Ads, Radio)
 Brand Endorsement by M.S Dhoni
 Exchange Offer.
 Weekend Discount.
 Point of Purchase Promotion.
Customer Segmentation of Big Bazaar:

 Big Bazaar target higher and upper middle class customers.
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 The large and growing young working population is a

preferred customer segment.
 Big Bazaar specially targets working women & home markets
who are the primary decision maker.
Big bazaar uses 8 golden rules to deal with Customer

Services:
1. Answer the phone.
2. Don’t make promise unless you will keep them.
3. Listen to your customer.
4. Deal with complaints.
5. Be helpful.
6. Train your staff to be always helpful, courteous and
knowledgeable.
7. Take the extra step.
8. Throw in something extra.
Competitors of Big Bazaar with regard to services:

 Wal-Mart
 Reliance
 Shoppers stop
 Vishal mega mart
 Local retailers
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Big Bazaar targets to be achieved

 The aim is to increase the retail business to around 30
million square feet by 2011 as compared to 8 million square
feet now.
 To become a substantial part of every Indian’s wallet.
 To get across 30 per cent of the population of entire nation
which is now just 8 per cent.
 To increase organized retail from 3 per cent to at least 18-20
per cent in next 2 years.
Core Values in Big Bazaar:

The core values in Big Bazaar are:
1. Indianness – Confidence in ourselves
2. Leadership – To be leader, both in thought and in business
3. Respect and Humility – To respect every individual and be
humble in our conduct
4. Introspection – Leading to purposeful thinking
5. Openness – To be open and receptive to new ideas,
knowledge and information
6. Valuing and Nurturing relationships – To build long term
relationship
7. Simplicity & positivity-Simplicity and positivity in our
thought, business and action
8. Adaptability – To be flexible and adaptable to meet
challenges
9. Flow – To respect and understand the universal laws of
nature.
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Different Customer services:

 Online shopping: Big Bazaar has an official website,
FutureBazaar.com, which is one of the most favorite sites
among people of India for online shopping. Future Bazaar is
an online business venture of Future Group, which sells an
assortment of products such as fashion, which includes
merchandise for men and women, mobile accessories, mobile
handsets and electronics like home theatres, video cameras,
digital camera, LCD TVs, kitchen appliances and many more.
 Discounts: ‘Hfte ka sabse sasta’ din was introduced by the

Big Bazaar, wherein extra and special discounts were offered
on Wednesday every week, to attract the potential buyers
into their store.
 Security check: At each exit of Big Bazaar, they use alarm

systems or Electronic Article Surveillance system, which
detects the products that has attached tags or not.
Customer Relationship Management of Big Bazaar:

The Big Bazaar first tries to determine likely prospects i.e.
the people who have a strong potential interest in the product and
ability to pay for it. The Big Bazaar hopes to convert many of its
qualified prospect into first time customers and then to convert
those first time customers into repeat customers. Then the Big
Bazaar tries to convert these repeat customers into clients – they
are those people who buy only from the Big Bazaar in the relevant
product categories. The next challenge for the Big Bazaar is to
convert these clients into advocates. Advocates are those clients
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who praise the Big Bazaar and encourage others to buy from it. The
ultimate challenge is to convert these advocates into partners
where the customers and the clients work actively together to
discover ways of getting mutual benefit. Thus in CRM the key
performance figure is not just current market share but share of
life time value by converting customers into partners. In CRM the
Big Bazaar identified that small percentage of key account holders
whose contribution to the Big Bazaar revenues is high. So from this
point of view, CRM is also known as key account management.6
Innovative Management Practices of Big Bazaar:

Big retail chains such as Future Group have set up their own
mall management divisions that operate as their subsidiary
companies. Big Bazaars are focused the following areas under the
innovative management practices.
 Infrastructure Management: Infrastructure management

refers to the management of facilities provided to the tenants
within the mall. This includes provision of adequate power
supply, safety issues in case of emergency and miscellaneous
issues related to signage, water supply, sanitation, etc. These
form an integral part of mall management as they are the basic
amenities that any tenant would look for in a mall.
Infrastructure management also includes risk management
issues such as essential safety measure asset liability and
environmental audits as well as emergency and evacuation
training. It also means optimal utilization of resources to meet
organizational needs.
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 Ambience Management: The overall shopping experience

provided for consumers becomes an important factor for the
success of any mall. Ambience management includes
management of parks, fountains and overall look of the mall. A
mall is not just a place for shopping but is also a place where
people spend their leisure time. In favourable, lush green
landscaping with seating facilities and the presence of food
and beverage inside or outside the mall can increase foot
traffic.
 Traffic Management: Traffic management includes

managing foot traffic into the mall and parking facilities. Foot
traffic management involves crowd management inside the
operational area of a mall. The flow of people is related to the
design of the mall and the spatial distribution of its tenants.
For example, a star-shaped mall tends to have a problem of
crowding in the centre of the mall, as everyone has to pass
through the centre while moving from one side to the other.
Circular malls, on the other hand, would not have this
problem. They tend to have better pedestrian flow and less
congestion. Managing parking facilities includes provision of
ample parking and maneuverings of cars in the parking lot. Big
Bazar is an example of a successful mall led by good facility
management practices.
 Finance Management: Professional financial management

of a mall as a business venture is a must. Mall management
also covers financial management, which involves monitoring
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and controlling of various issues such as: cash receipts and

collection of income including rentals, service charges, car
park receipts, electricity and other utility income developing
accounting systems to track the ageing of debts, payment delay
patterns, bad debts and payment of all invoices and expenses
developing standard financial templates so that a detailed
annual property budget is prepared at times, organizing
resources to deliver an efficient and effective annual external
audit
Strategic Objectives of the Company:

Strategic objectives of a company can be short term and long
term. The short term objectives are the goals that a company plans
to achieve in one or less than one year. The objectives can range
from the products and services they offer to the management
objectives such as enlarging the human capital or more
investment, etc. The Long term objectives refer to the goals that a
company wants to achieve in the long run, more than one year. The
short term goals help the company to reach its long term
objectives. Typically, long term objects lay out what a company
wants to become. Big Bazaar wants to become number one retailer
of fast moving consumer goods. This is a long term business
objective which can be achieved by achieving the short term
objectives. When the market requirements and customer
requirements change, companies review their objectives and
change or update their business objective to suit the market and
customer requirements
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Innovative Marketing Strategies of Big-Bazaar:

Exterior Presentation:
The quality of a store front is a major determinant for a
customer and the store appearance should never be compromised.
The exterior appearance silently announces what customers can
expect inside. Good exterior visual merchandising attracts
attention, creates interest and invites the customer into business.
Generally the exterior presentation should be progressive, lavish or
discount image to the customer. The important point to be noted is
that how a store visually welcomes a customer has to do a lot,
whether they enter or not.7
Exterior Signs:
An effective sign is a silent sales person. A sign must attract
attention of customers in less than ten seconds and should convey
what the business is and what it has to sell. The size of the letter
used in signs should be large enough to be read from a distant
place. Elegant design and expensive sign material will convey a
business of luxury goods and services. A design of the sign conveys
a great deal about the business. Signs can also be used to target a
specific market segment such as youth, women, singles etc. Logo is
also very important and plays a major role in attracting customers.
They should be unique and noticeable. To put it in simple words
simple brief, well designed, well lettered and easy to read signs will
attract more customers and convey a feeling of welcome to the
customers. A stores signs is its identity. It is with the sign that the
public recognize the store. Hence it should create an image that
can be consistently carried out as an identity of the store.
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Marquees:
Marquees are special type of signs used to display stores
name. Effective marquees should be designed so as it is different
from others and attracts the attention of customers.
Banners:
Banners are economical but colorful and eye catching means
of promotion. They can be changed frequently to create different
appearances which will in turn attract customers to the store. It
will be more effective when the colour scheme and design concept
used in the banners are the same as what is used in the store, on
promotional materials and newspaper ads.
Entrance and Aisles:

Most of the first time customers remember the store
entrance. This goes on with the quote ‘first impression is the best
impression’. Giving the best impression to the customer’s right at
the entrance is mandatory for any store. Cluttered aisles makes the
shoppers feel uncomfortable and hence leave to a bad shopping
experience. Entrances that allow shopping to come into a store
without being aware of their entering are also becoming very
popular.
Window Displays:
The display at shop windows is becoming increasingly
popular as far as visual merchandising stands. Changing window
displays to suit themes and moods and seasons is gaining
popularity. Special emphasis has to be placed on a store’s window
displays because they are the information link to the potential
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customer. It is reckoned that as many as one in every four sales

could be the result of a good window display. Window display
should attract attention, create interest and invite people into the
store to purchase goods. The average amount of time an individual
spends looking at a window display is about eleven seconds, and
that is the maximum time available to achieve this. Too much of
merchandise must not be crowded at a window, as customers find
it difficult to determine the message and what items are being
promoted.
Interior Presentation:
Selling space is the most important part of a store and
therefore, efforts to utilize each square foot will help to maximize
sales. When planning interior displays, it should be kept in mind
that the theme and image presented on the exterior must be
carried throughout the interior of the store to provide consistency
for the customer. The purpose of interior display is to develop
desire for the merchandise, show what is available, and encourage
both impulse and planned buying. Three major goals of a store
should be to motivate the customer to spend money, project the
image of the store and keep expenses to a minimum. Well-
designed displays and in-store promotions are essentials for a
consistent theme and to help the customer find advertised items.
Display Design:
An effective way of attracting customers to a store is by
having good displays, both exterior and interior. A customer will be
attracted to a display within three to eight seconds, which is the
time a customer spends to determine interest in a product. Every
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display should be planned and must have a theme. Good design

makes a visual presentation come together. This means the design
attracts attention in a way that strengthens the store image, as well
as introducing merchandise to the customer. Sale or promotional
good in front of the store should be placed for short period of time
only. If the sale or promotion lasts for several weeks, merchandise
should be moved to the rear of the store. The customer should
always get to see new exciting and creative merchandise with
display at the front of the store.
Use of music:
The store image and the mood of the customers can be
changed dramatically by the use of music. Music establishes
moods, helps to motivate the subconscious mind and create long
lasting impression on the customers. Specific music for particular
merchandise can create a good shopping experience and can be an
important tool for creating a brand.
Perfumes and Scent:

The other use of stimulation can be use of stimulating the
olfactory lobe of the brain. i.e. use of perfumes and scents. Layout
having fresh breads and buns, can entice the customers by the
aroma. Segments of the store having soaps and toiletries can
enchant the customers by the use of perfumes and scents. A
pleasing scent can create a wonderful ambience and add to the
customers shopping experience. Scent can also be a major factor in
determining which product to buy. Everything from perfumes,
scented candles, toiletries, cleaning products are all bought while
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keeping scent in the mind. The scent generally determines which

product the customer purchases.
Impact of Big Bazaar on the Consumers Retailers:

1. Keeping the stock of the different verities of goods.
2. Applying various methods of demand creation.
3. Helping in the effective distribution of consumer goods.
4. Extending credit facilities to the consumers.
5. Providing many personal services to the consumers.
6. Providing essential data and information to the manufacturers
about the trend in marketing changes in fashion, tests, etc.
7. Making available the good according to the season.
8. Gives proper advice to the customer.
Big Bazaar’s New Marketing Strategy:

Big Bazaar, a part of the Pantaloon Group, is a hypermarket
offering a huge array of goods of good quality for all at affordable
prices. Big Bazaar with number of outlets in different parts of India
is present in both the metro cities as well as in the small towns. Big
Bazaar has no doubt made a big name in the retail industry of
India, moreover shopping here is further made a memorable
experience with the varied rates of discounts on products as well as
discount vouchers available in a variety of amounts. Big Bazaar is a
chain of shopping malls in India owned by the Pantaloon Group.8
The idea from the very beginning was to make Big Bazaar very
comfortable for the Indian customer. Big bazaar is not just another
hypermarket. It caters to every need of the family. Where Big
Bazaar scores over other stores is its value for money proposition
for the Indian customers. At Big Bazaar, the customer will
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definitely get the best products at the best prices - that’s what they
guarantee. With the ever increasing array of private labels, it has
opened the doors into the world of fashion and general
merchandise including home furnishings, utensils, crockery,
cutlery, sports goods and much more at prices that will surprise
you. Big Bazaar plans to add much more to complete their
customers shopping experience.
Big Bazaar has launched new marketing strategy which is

based on Guerrilla Marketing. Guerrilla marketing warfare
strategies are a type of marketing warfare strategy designed to
wear-down the enemy by a long series of minor attacks, using
principles of surprise and hit-and-run tactics. Attack, retreat, hide,
then do it again and again, until the competitor moves on to other
markets. Guerrilla force is divided into small groups that
selectively attack the target at its weak points. In the world of cut
throat competition, corporate use extension of the same strategy in
marketing. Corporate like Pepsi, Coke etc have been using the
same for quite some time now and the latest entrant is our very
own ‘Future Group’- Big Bazaar, Future Bazaar, Pantaloons, e Zone
are all part of this group and they are taking on the biggies like
Shoppers Stop, Lifestyle, and Tata’s Westside. In order to do the
same, Future Group have come up with 3 catchy and cheeky ad
campaigns which surely do catch our eyes and surely one can’t
resist appreciating the same.
2015
SWOT Analysis of Big Bazar:

Strengths:
 Maximum number of varieties: People prefer those
places where they can get the maximum products they need
and Big Bazaar provides vast range of products under one roof
helping in attracting customer and their family to shop
together and enjoy the experience.
 High brand equity: Big Bazaar has created high brand

equity through its promotions and marketing it has created a
different image for its products as the cheap and best.
 Largest chain of retail marketing in India: Big Bazaar

is the first retail chain to be started in India and is the largest
and successful until now.
 High capacity investment: Big Bazaar offers 1,70,000

products and owns more than 100 retail stores all over India
and has the strong financial background as being the
subsidiary of future groups which owns the pantaloons which
is one of the biggest the industries in men’s wear in India and
have its work is spread all over India. Future group is one of
the leading groups in India.
 Everyday new promotions and schemes of low prices

and discounts: Big Bazaar always offers new schemes of low
prices and gives discounts in products like Big Bazaar offers
the sabse saste 3 din ( the cheapest 3 days) in which it offers
2015
the lowest of prices than other days. Facilities like online

booking and delivery of goods: It is not just a chain of retail
shopping but also provides online shopping facility to the
consumers.
Weaknesses:
 Overcrowded: During offers, promotions and even on
weekends the place is overcrowded with people and sometime
even there is the situation of closing the store due to it.
 Checkout can be extremely slow: There can be seen a

long queue on the billing counters making the consumer wait
for hours due to the slow service and the crowd.
 Perception of low price=low quality: Generally people

think that if any product has low price then the quality of the
product will be low as they think quality comes with price.
 Targets at the middle class and upper middle class

only: It targets at the middle and upper middle class due to
which it ignores the upper and elite class people as they are the
cream of the society who are ready to pay any price for the
quality and product they need.
Opportunities:
Big Bazaar can enter into production of various products due
to its in depth understanding of customers’ tastes and preferences.
Nowadays people prefer going to one big store and buy everything
2015
instead of visiting different places for different items and waste

time. So Big Bazaar can expand the business in smaller cities as
there is a lot of opportunity. Lot of potential in the rural market.
Threats:
 High business risk involved: Big Bazaar investment is
very large so it is obvious that there is high business risk
involved.
 Lot of competitors: There are a lot of countries which are

planning to enter the Indian market like Wal-Mart, Carrefour
and Tesco which is a big threat to Big Bazaar.
 Less Parking Space: Customers are not satisfied with the

parking space availability provided by Big Bazaar. Hence it’s a
threat of Big Bazaar as it may loose its customers because of
less parking space availability. In holidays it will be very
difficult for customers to park their vehicle in Big Bazaar.
 Unorganized retailing: Unorganized retail stores are a threat

to the business of big bazaar as now also people prefer to go to
the local stores which are convenient enough for them.
Challenges to organized retail development in India:

Organized retail in India is little over a decade old. It is
largely an urban phenomenon and the pace of growth is still slow.
Some of the reasons for this slow growth are:9
2015
1. The Kiranas continue: The very first challenge facing the

organized retail industry in India is competition from the
unorganized sector. Traditionally retailing has established in
India for centuries. It is a low cost structure, mostly
owner operated, has negligible real estate and labor costs
and little or no taxes to pay. Customer familiarity that runs
from generation to generation is one big advantage for the
unorganized sector. On the other hand, organized sector have
big expenses to meet and yet have to keep prices low enough
to compete with the traditional sector.
2. Retail not being recognized as an industry in India:

lack of recognition as an industry hampers the availability of
finance to the existing and new players. This affects growth
and expansion plans.
3. The High Costs of Real Estate: real estate prices in

some cities in India are amongst the highest in the
world. The lease or rent of property is one of the major areas
of expenditure. A high lease rental reduces the profitability
of a project. It is difficult to find suitable properties in central
locations for retail, primarily due to fragmented private
holdings, infrequent auctioning of large government owned
vacant lands and litigation disputes between owners.
4. High Stamp Duties: in addition to the high cost of real

estate the sector also faces very high stamp duties on transfer
of property, which varies from state to state.
2015
5. Lack of Adequate Infrastructure: poor roads and the

lack of a cold chain infrastructure hamper the development
of food and grocery retail in India.
6. Price War: There is a price war between different retail

organizations. Every one is saying to provide goods at low
cost and offers various promotional schemes. In such a case
it is difficult to keep one’s customers with oneself.
7. Shortage of Skilled Manpower: Front-end/retail

assistant profiles in stores form a major proportion of the
employment in the retail sector while store operations
accounts for 75-80% of the total manpower employed in the
organized retail sector. Unfortunately, there are very few
courses specific to the retail sector and graduates/post
graduates from other streams are recruited.
8. Policy Induced Barriers: organized retail in India is

managed by both the Ministries of Commerce &
Consumer Affairs. While the Ministry of Commerce takes
care of the retail policy, the Ministry of Consumer Affairs
regulates retailing in terms of licenses and legislation. There
is a need to govern retail operations through a single apex
body. A single agency can take care of retail operations more
effectively.
9. Channel Conflicts: Globally, retailers maintain a direct
relationship with their suppliers. Due to the complex
taxation structure and geographical spread of the
country, most FMCG companies have developed regional
2015
distribution and re-distribution network. Cutting out

the distribution network will hurt the operating structure of
distributors.
10. Unique Indian Customer: the Indian consumer

experiencing modern retail has now warmed up to this idea.
Buying habits have still not changed, where people prefer to
buy most of the fruits and vegetables on a daily basis. The
Indian consumers have a strong preference for freshly
cooked food over packaged. Food mainly attributed to dietary
patterns, poor electricity supply, low penetration of
refrigerators and a family structure where one of the primary
roles of the housewife’s is feeding the family. There is also an
impact on the basket size because of non-availability of
personal transport facilities, due to which the consumers
prefer to buy smaller quantities from stores conveniently
located near their homes.
Suggestions for overcomethe challenges for

Organised Retail:10
1. Acceptance of Industry Status to Retail: industry
status should be given to improve retail development, to
facilitate organized financing and to establish insurance
norms.
2. Incentives for Investments: Tax holiday norms for

cold storage chains, infrastructure and investment in
supply chain should be enacted.
2015
3. Comprehensive Legislation: comprehensive

legislation should be drafted and enacted with futuristic
approach.
4. Eliminating Archaic Laws: Laws, essential

Commodities Act APMC acts, licensing restrictions,
differential taxes, stamp duties, should be simplified and put
in proper place so that it would not hinder growth of retail
sector.
5. Proper Tax Structure: The current multipoint taxation

should be rationalized. The government should introduce a
uniform taxation system across the country to relax the law
that hinders interstate flows of goods.
6. Establishment of national commission on retail: the

national commission on retail must be established. The
functions should be:
 To set clear target for giant retailers for procurement.
 Enforce uniform quality standards.
 Setup a regulatory body for the governing the operations
of retail sector.
2015
References:
1. Puneeet Shweta (2008) - Technology The Heart of
Organized Retail - Marketing Mastermind, May, p.p. 45-48.
2. Kishore Biyani (2007) - It Happened in India: The Story of
Pantaloons, Big Bazaar, Central and the Great Indian
Consumer - Rupa Publication, Mumbai.
3. Interview: Kishore Biyani, CEO, Future Group -
http://www.bestmediainfo.com
4. Kumar, V., (2010) - Promotional Strategy of Big Bazaar &
Maintaining the image in Retailing. [Online] -
http://www.skylinecollege.com
5. Gupta, N., (2010) - Big Bazaar Maha Bachat -
http://www.indiasummary.com
6. Pandey Sanjay and Henry Amit Stieve (2013) - A study on
customer relationship management (CRM) with reference to
Big Bazaar in Bilaspur City - International Journal of
Management, IT and Engineering, Volume 3, Issue 8
7. Sujith Potu (2010) - Impact Of Visual Merchandising On
Sales At Big Bazaar, Hubli - SCMS Campus, Prathap Nagar,
Muttom, Aluva, Cochin
8. Chetan Bajaj et al (2008) - Retail Management -
Oxford Publishers, New Delhi.
9. Sunder K Shyama & Ramji (2000) – Coming Closer to the
Customer - Indian Management, December. p.p. 49-51.
10. Banerjee Arindam (2002) - Roadmap for Successful CRM
Implementation - Indian Management, July, p.p. 48-52.

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A Study of Innovative Marketing Practices In Retail Marketing Sector with

Special Reference to Big Bazaars in Maharashtra State.

Chapter No. 05:

With the onset of a globalized economy in India, the Indian

and international products, with the help of print and electronic

country’s shoppers. He and his team studied this section of

Kishore Biyani is best known for bringing in the great Indian

Big Bazaar owned by Pantaloon Retail India Limited, the

down its expansion plans despite many other retailers slowing

At the time of the launch of Big Bazaar there was no real

Big Bazaar offers a wide range of products which range from

25,000 microwave-ovens. In all, the fashion, electronics and

Marketing Techniques used by Big Bazaar:

 Promotional Pricing: Big Bazaar offers financing at low

 Differentiated Pricing: Time pricing, i.e., difference in

 Bundling: Selling combo-packs and offering discount to

Big Bazaar is aggressive on their expansion plans. Big Bazaar

Big Bazaar Hyper mart chain in India

of merchandise and passage to draw customers’ attention on

Loyalty Program in Big Bazaar:

Different Retail Marketing Schemes Offered By Big

 Sabse Sasta Din: On the ‘Republic Day’ and ‘Independent

influenced a day’s routine of thousands of people in different

 Wednesday Bazaar: Big Bazaar has introduced a

 Monthly Bachat Bazaar: Big bazaar has scheme of

 Special offer before college or school start: Big Bazaar

 Sampling of new product: Big Bazaar arranges a sampling

Customer Services of Big Bazaar:

Big Bazaar provides a customer help desk at entrance of the

of any customer can be solved within 24 hrs by a person who

Basic Marketing Strategy of Big Bazaar:

 We shall ensure that our positive attitude, sincerity, humility

4 P’S of Big Bazaar:

Customer Segmentation of Big Bazaar:

 The large and growing young working population is a

Big bazaar uses 8 golden rules to deal with Customer

Competitors of Big Bazaar with regard to services:

Big Bazaar targets to be achieved

Core Values in Big Bazaar:

Different Customer services:

 Discounts: ‘Hfte ka sabse sasta’ din was introduced by the

 Security check: At each exit of Big Bazaar, they use alarm

Customer Relationship Management of Big Bazaar:

Innovative Management Practices of Big Bazaar:

 Infrastructure Management: Infrastructure management

 Ambience Management: The overall shopping experience

 Traffic Management: Traffic management includes

 Finance Management: Professional financial management

and controlling of various issues such as: cash receipts and

Strategic Objectives of the Company:

Innovative Marketing Strategies of Big-Bazaar:

Entrance and Aisles:

customer. It is reckoned that as many as one in every four sales

display should be planned and must have a theme. Good design

Perfumes and Scent:

keeping scent in the mind. The scent generally determines which

Impact of Big Bazaar on the Consumers Retailers:

Big Bazaar’s New Marketing Strategy:

Big Bazaar has launched new marketing strategy which is

SWOT Analysis of Big Bazar:

 High brand equity: Big Bazaar has created high brand

 Largest chain of retail marketing in India: Big Bazaar

 High capacity investment: Big Bazaar offers 1,70,000