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Big Bazaar
Big Bazaar
Owner
Founded Headquarter Industry
Kishore Biyani
2001 Jogeshwari, Mumbai Retail
Website
Tag Line
www.bigbazar.com
is se sasta aur achha kahin nahi
Main Features
Understanding needs of Indian Consumers Traditional bazaar ambience Create a Shopping experience Low Pricing of products Value for your Money Cater to every possible retail need of a consumer Economies of Scale
Products
Food
Apparels Child Care and Toys Furniture
Farm Products
Chill Station
Other Services
Fashion and Jewellery
Electronics
2001
2002
2003
2004
2005
41.65
65.80
58%
EBITD
3.39
5.29
8.79
13.15
20.90
Walmart Statistics
Traditional Retail
Traditional Outlets
Modern Supermarkets
The Retail supermarkets and hypermarket had only 0.4% 3.5% share of the retail sales in 2003 - 2005. Even though there was high volume of foot traffic the conversion ratio was less than 5% which lead to store closure due to high rentals. With the government easing restrictions on the FDI, it became easier to import consumer goods which added more variety to the Indian market. Still a long way to go due constraints of complex taxes, high supply chain cost, infrastructure problems, inflexible labor laws.
FDI continued..
In Feb 2005 Indian Govt. passed 100% FDI in construction and development sector paving the way for the foreign investments to develop shopping malls and warehouses. A year later, the cabinet approved policy allowing Single Brand retailers to operate. Analyst believe that entry of foreign retailers is just a matter of time citing 2005 2009 as a window of opportunity for domestic retailers to shape up
Big Bazaar Innovative promotions allowed Big Bazaar to draw in consumers who had not yet shopped at organized retailers.
Big Bazaar also organize its Big Day specially on local religious festivals to provide look and feel of organized stores for aspirational consumers
In August, 2005, PRIL management noted same store growth of 30% in the value retailing segment and 19% in the lifestyle In march 2006, PRIL sold merchandise in 5 segments fashion, food, general merchandise, leisure and entertainment. Fashion was the companys leading category and accounted 50% of its revenue
PRIL responds to the market with their well diverse retail portfolio consists of four retail category : department stores, discount hypermarkets, grocery stores and seamless malls.
Pantaloons
High fashion family department, geared toward Indian middle and upper classes. In 2005, pantaloons rolled out a new merchandise and brand communication campaign to position itself as fashion trendsetter appeal to Indias youth.
Central Mall
Positioned as destination where consumers could shop, eat and celebrate.
Big Bazaar
In 2007, PRIL debuted its Big Bazaar hypermarket concept, designed to blend elements of a typical Indian bazaar with modern retailing features such as parking, and air conditional shopping environment and merchandise return privileges.
Food Bazaar
Food Bazaar, a grocery retailer, opened its first outlet in June 2002, within a Big Bazaar store, six month later the chain had grown to 42 outlets: 18 stand alones.
Attractive tag lines like Umeed se dugna , pahela sasta, doosra usse bhi sasta and Joona do, naya lo are used to attract more aspirational consumers Pantaloons vision is to capture as much share of the customers wallet as possible by retailing.
The Indian consumer is not yet ready for a store with clean linear layouts, Kishore Biyani, Owner Bigbaazar, Pantaloon group.
We have to convince the consumer that we understand his or her needs the way the neighborhood retail does Arvind singhal of Technopak, a retail consultancy.
Food bazaar stores were located within big bazaar stores occupying 15,000 sqf in a 50,000 sqf store
Biyani thought that Food bazaar & Big bazaar were the crown jewels In PRILs portfolio
Company planned to grow to over 100 FB stores by 2008 and annual revenues of $350 million
To rent properties from shop owners in exchange of profits generated from store
purchase food grains directly from manufactures to develop private label brands and devote 60 % shelf space to it.
C & F AGENT
DISTRIBUTOR
Wholesaler
Small retailer
Shroff concern....
In case of a Product-specific promotion, volumes would swamp a distributors capabilities Wall mart & Reliance were likely to enter market with modern supply chain
(Reliance to invest $2.2 in billion hyper markets with 60 supply centres) Project is expensive and financial returns are uncertain Cannot achieve economics of scale by operating in diff states Biyani likely to remain loyal to TSC
OPPORTUNITY Organized retail is just 4.15%of total pie of Indian retail market Evolving Customer preferences in recent years
THREAT Competitors, global big players planning to foray into market Unorganized retail market of India Government policies are not well-defined in India
Life Cycle
INTRODUCTORY GROWTH STAGE STAGE MATURITY STAGE DECLINE STAGE
TOTAL MARKET SALES
S A L E S
TIME
4P Marketing Mix
Product
Offers wide range of products, range from apparels, food, farm products, furniture, child care, toys, etc. All Major Brands Fashion, electronics and travel segments made up about 70% of sales. Many In-house brands promoted by Big Bazaar.
Promotion..
Is se sasta aur accha kahin nahi
Umeed se duguna
pehla sasta, doosra usse bhi sastaa Joona do naya lo Saal ka sabse sasta 3 din- Republic Day Promotion
Sabse Saste 3 Din Republic Day Sales Images 25-26-27 Jan 2009
Future Challanges
Need Infrastructure Development, Own Logistic Solutions Global Big Players and Competitors Planning to foray into Market Bharti-Wal-Mart, Carrefour is all set to gain its foothold in India Government Regulations and Taxation FDI, Taxes & Duties