TYPE PRIVATE

INDUSTRY RETAIL
FOUNDER AND KISHORE BIYANI -2001
FOUNDED
NUMBER OF STORES 295 (2019)
PRODUCTS AND Electronics, Home and
SERVICES furniture, Home improvement
Clothing, Footwear, Jewelery,
Toys, Health and beauty,
Grocery, ETC.

OWNER RELIANCE RETAIL

REVENUE (2018-19) RS-20165 CRORE
 FACTS

The inspiration to set up big bazaar came not from any foreign super
market, but from a relatively small family run shop in Chennai, called
“Saravana Stores”.

The first big bazaar store was set up in Kolkata and second and third were
at Koramangala, Bangalore and Abids, Hyderabad.

The biggest customer for big bazaar till date is a farmer in Sangli whose
bill amount was Rs. 1,37,367.
 REVENUE STREAMS

• X+Y=Z and Z > X, always.

• Manufacturing cost of Rs.50. Transportation Rs 10. Company will expect a

margin of 20%.

• So, Big Bazaar will get the product at Rs 70. On that, Big Bazaar will add
an Operational+Storage+Billing cost of 20%. The final price : INR 84.

• Finally, when the product is sold at INR 100, Big Bazaar makes a profit of INR 16
or 16% of MRP.

• Now, even if Big Bazaar gives a 10% discount, it will still make a profit of 6%.
Win Win!
 DIRECT CONTACT WITH
MANUFACTURERS

• For example, Big Bazaar will directly buy Maggi noodles from Nestle
rather than buying from local wholesaler. So there would be a 2–5%
difference in the margin.

• Here we can see elimination of middle man which automatically helps in

earning more profit.
 LOSS LEADERS STRATEGY

• In layman language, companies like retail/e-commerce/electronics manufacturers

would deliberately put price of some products very low so as to attract customers
to their store/website/brand.

BULK BUYING
• One of the most common and useful strategy in every business is bulk buying.

• Bulk buying is a very simple concept, it refers to buying in bulk and getting huge
discount on total purchase made.
• Example:5kg oil + 5kg rice + 5kg sugar for Rs 599
DEPARTMENT PREFERENCE

This graph shows a survey of 300 people.

• Big bazaar should deal in clear cut no-frills groceries.

• Big bazaar should target more of tier ii and tier iii cities.

• Own property.

• More billing counters.

• Big bazaar is lacking in bigger packaging.

 CONCLUSION

• As we all know Reliance is now the official owner of Big Bazaar, it is

possible for Big Bazaar to again acquire a good place in the market and
become a leading retail store all over the country by acquiring maximum
market share.

• There is no official statement by Reliance company regarding the future

plans for Big Bazaar but they are definitely working on the business model
and we will soon see Big Bazaar competing in the market.
 REFERENCE

• WWW.WIKIPEDIA.COM

• WWW.QUORA.COM

• WWW.BLOG.FINOLOGY.IN