INTRODUCTION

Big Bazaar, now known as Smart Bazaar, is an Indian retail chain of hypermarkets, discount department stores,
and grocery stores, often compared to Walmart for its extensive reach and affordability. Originally a subsidiary
of Future Group under CEO Kishore Biyani, Big Bazaar was part of a portfolio including Pantaloons, Urbana,
and HomeTown. It began with a store in Kolkata in 2001 and expanded to over 300 stores nationwide.

Business Model

Big Bazaar offers a wide range of products at low prices, acting as a one-stop shop for Indian consumers. They
achieve this through bulk buying, direct purchase from manufacturers, and strategic promotions. Big Bazaar
also uses loyalty programs and private labels to boost sales. Recognizing the changing retail landscape, they've
also invested in building a digital presence.

Target Audience

Big Bazaar targets middle and upper-middle-class consumers, focusing on urban and semi-urban areas. It
caters to families seeking one-stop shopping for groceries, apparel, homeware, and more. The market includes
young professionals and working individuals who prioritize convenience, as well as value-conscious and budget
shoppers attracted to competitive pricing, promotions, and everyday low prices. Additionally, festival and
seasonal shoppers take advantage of special sales, while loyal customers benefit from programs like Future
Pay.

Market Analysis

Analysis of the retail market:

India's retail industry is dynamic, contributing significantly to GDP and employment. Ranked 63rd in the World
Bank’s Doing Business 2023, it is poised for 9% growth, reaching over US$ 1.8 trillion by 2030 from US$ 779
billion in 2019. E-commerce is booming, expected to reach US$ 350 billion in GMV by 2030, with the digital
economy projected at US$ 800 billion by the same year.

Key Trends in the Indian Retail Market

India's retail landscape is evolving with rapid e-commerce growth, expected to reach a GMV of US$ 350 billion
by 2030. Omni-channel retailing integrates online and offline shopping experiences. Direct-to-consumer
brands are gaining prominence, catering directly to customers. There's a rising preference for eco-friendly and
ethical products, alongside increasing demand for branded goods due to rising incomes. Retailers are also
targeting Tier 2 and Tier 3 cities for expansion, capitalizing on growth opportunities in smaller markets.

Competition in the Indian Retail Market

Domestic Players:

• Reliance Retail: Largest retailer with diverse formats in groceries, electronics, and fashion. Achieved a
revenue of ₹1.99 trillion (US$ 26.3 billion) in FY 2022.
• Future Group: Known for Big Bazaar and fbb, recently acquired by Reliance Retail. Revenue of ₹20,332
crore (US$ 2.7 billion) in FY 2021.
• Tata Group's Trent: Operates Westside and Zudio, focusing on fashion and lifestyle. Reported ₹3,154
crore (US$ 420 million) revenue in FY 2021.
E-commerce Platforms:

• Amazon and Flipkart: Leading players in the e-commerce market.

• Myntra (Fashion): acquired by Flipkart, dominating online fashion retail with about 35% market share.
• BigBasket and Grofers (Groceries): Leading online grocery platforms, with BigBasket valued at US$ 2.7
billion in 2021.

Consumer preferences

• Consumer preferences in India are shifting towards convenience and competitive pricing, with 75%
favoring e-commerce for its variety and affordability.
• Rising incomes are driving significant demand for branded products in apparel, electronics, and
personal care, growing annually at 30%.
• Daily e-commerce transactions reached 7.8 billion in December 2022, highlighting the sector's rapid
growth.
• The number of online shoppers in India is projected to increase from 150 million in 2020 to 500 million
by 2030.
• Interest in health and wellness products, such as organic foods and supplements, is on the rise, with
sales up by 20%.

Discuss how Big Bazaar has positioned itself in this market and its competitive advantages.

Aggressive promotional campaigns like "Sabse Saste Din" and loyalty programs such as "Profit Club" boost foot
traffic and customer retention. Economies of scale from parent company Future Group enable lower prices.
Private labels like Tasty Treat and Clean Mate offer affordable, high-quality alternatives, enhancing margins
and loyalty. Technology integration in inventory management and CRM improves efficiency, and the online
presence through Big Bazaar Direct caters to the growing e-commerce trend.
Marketing Strategies for customer retention:

Big Bazaar engages customers with loyalty programs, targeted promotions, and enhanced in-store experiences
to encourage repeat visits. Special events and product samplings boost customer engagement, while
integrating online and physical shopping through omnichannel options ensures a seamless experience.
Emphasizing value and everyday low prices reinforces Big Bazaar's appeal as a preferred shopping destination.

Big Bazaar enhances its appeal through bank tie-ups, offering additional discounts and cashback with specific
credit/debit cards. It also collaborates with popular brands for exclusive launches and promotions, further
attracting customers

Big Bazaar's Operational Efficiency

Big Bazaar's stores are designed for easy navigation with clear signage and wide aisles. Strategic product
placement maximizes visibility, including high-margin items. Automated inventory management minimizes
stockouts, with tailored strategies for various product categories. Centralized warehousing and robust supplier
relationships ensure efficient logistics and timely product availability. These operational efficiencies drive cost
reduction, improve customer experience, and boost profitability for Big Bazaar.

Customer Experience at Big Bazaar

Big Bazaar is enhancing customer satisfaction through improved customer service and product availability.
They focus on staff training, digital integration, and feedback mechanisms to build long-term relationships.
Ambience improvements and omnichannel strategies further enhance the shopping experience.

Big Bazaar: Navigating Challenges

Big Bazaar, once a dominant player in the Indian retail landscape, faces significant challenges in the face of a
dynamic market. Here's a breakdown of key hurdles and potential strategies for future growth:

Challenges

Big Bazaar faces challenges amidst India's e-commerce boom, projected to reach $350 billion by 2030, as
consumers increasingly Favor online convenience and wider product selection. Shifting consumer preferences
towards convenience and personalization, highlighted by studies, suggest a need for Big Bazaar to adapt its
offerings. The projected economic slowdown with India's GDP growth expected to drop to 6.5% in 2024 could
impact consumer spending and Big Bazaar's sales. Additionally, the burden of significant debt limits the
retailer's capacity to invest in necessary upgrades and innovation.

Future Growth Strategies

Big Bazaar could enhance its strategy by focusing on hyperlocal needs through tailored product assortments
and promotions. Investing in store upgrades and additional services like in-store cafes or click-and-collect
options can improve the overall shopping experience. Exploring partnerships with e-commerce firms or
logistics providers could also leverage expertise and expand reach in the competitive market.

Resources

Marketing91: https://www.marketing91.com/business-model-of-big-bazaar/

MBA skool: https://www.mbaskool.com/marketing-mix/services/16972-big-bazaar.html

IBEF: https://www.ibef.org/industry/retail-india

IIDE: https://iide-co.webpkgcache.com/doc/-/s/iide.co/case-studies/business-model-of-big-bazaar/