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Big Bazaar

PRESENTED BY- GROUP 7

MEMBERS ARE: AJAY KUMAR(07)


SAHIL BHATIA(24)
KETKI JAIN(09)
KARAN THAKUR
RAJU
BIG BAZAAR-THE ROUTE TO THE INDIAN
MASS MARKET
“Jo bazaar mein milta hai, who sab
yahan milta hai”
About Ad
• Inspired by the season color and texture so Launched
fashionable products .

• Fashion has always been seen to be somethingh for the


elite. -Rajan Malhotra,CEO BIG Bazar

• In 2008, ad signed by M S Dhoni who is known as youth


icon of india and became brand ambassador of Big Bazaar.

• Till 2009, sales turnover reached at rs.8000 crore.


INTRODUCTION
 Introduced by Pantaloon Retail (India) ltd in
2001.
 First store was opened in Kolkata and then
with in 22 days other stores were opened in
Hyderabad & Bangalore
 In 2006-2007, 27new stores were launched in
22 cities.
 By May 2008, 89 Big Bazaars spread across
country.
Pantaloon Retail (India) Ltd. Background

 In 1987, was incorporated as Manz Wear Private Limited


 In 1991, became Public Limited and was renamed Pantaloons
Fashions (India) Limited
 In 1999, was again renamed as Pantaloon Retail (India)
Limited
 1987-1993, launched three successful brands – Pantaloon
trouser, Bare denims and John Miller Shirts
 1994-1998, the company introduced the concept of the
Pantaloon Shopee, an exclusive men’s wear retail store
 In 1997, company moved to large format lifestyle retailing by
opening Family Store
THE STRATEGY
• To offer value to the customers
• As the store would offer a large mix of
products at a discounted price, the name Big
Bazaar was finalised
• Price was the basic value proposition at Big
Bazaar
• Prices of the product were 5 to 60 lower than
the market price.
Selecting the Right Location
 They opened stores within the city
 They took land on lease for a period of 12-20
years. The rentals varied from Rs.30 per
square foot to Rs.50 per square foot,
depending on the city and location.
The Merchandise Mix
 Big Bazaar stocked about 1,30,000 items in over 20 product
categories
 The classification was done in terms of apparel and non-
apparel
 In the first year, apparel accounted for 70% of the off-take.
 The price ranged from Rs.99 to Rs.799
 Non – apparel included plastic items, footwear, toys, luggage,
and stationery. It accounted for 30% of the off-take in the first
year.
 Also launched Food Bazaar in the first year of operations.
Pricing Strategy
 Value Pricing and maintenance of good quality
were the key factors influencing the pricing
decision.
 Price that will offer value to the customer was
first determined.
Food Bazaar
Launched in 2002 and it was modeled on Indian mandi.
Processed Food & Non Food ( contributed 60%)
Dry Staples (contributed 30 %)
Wet Staples (contributed 10%)
Company Launched:
Food Bazaar Masalas
Food Bazaar Tea
Premium Harvest Pulses
While apparel still continues to be the largest selling category at
BB, (40%)but the share of the food sale has increased rapidly to
25.74%
Managing The Supply Chain
 Distribution is decentralized.
 Warehouse attached to each store.
 Initially, the stock turnover was three month which is
now down to two month.
Organization Structure of Big
Bazaar
 Structure is flat in nature
 Division are apparel, non apparel and the new
business division which include gold, footwear and
the shop in shops.
 1800 people work for Big Bazaar directly.
 Another 400 people for support and ancillary
services.
 Training program for new employee.
 Evaluation is done every six month.
Encouraging Loyalty

 Launched the Big Bazaar ICICI bank co-


branded credit card.
 On purchase of Rs. 1500 or more, customer
has the option of making payment by three
EMI with out any charges.
 For every Rs. 100 spent on shopping, 4 reward
points are rewarded
 Free home delivery to card holders.
Information Technology
• End no. of opration are done at and internet transfers
the data to the head office.

• This data is processed overnight and an auto


replenishment system is in operation and on the basis
of that forecasting is done at the store level and week
level.

• In 2004 Big bazaar comes with “FOOD BAZAAR ON


CALL”
CONCLUSION
 As most of the retail industries did market
research before entering into market same
thing was done by big bazaar. Location,
market, consumer perception analysis was
done was done by big bazaar. In one year
much more diversification was done in it. And
to retain customers they use many loyalty
programs and I.T. techniques were used.

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