Big Bazaar 01 Oct 2009

BIG BSasta A ZOr AAcha A RKahi Is se Nahi

Retail In India Ø The Indian retail industry accounts for 10% of GDP and 8% of employment. Ø Ø India is being touted as the next big retail destination with an average three year compounded annual growth rate of 46.64%. Ø Ø The Indian economy is poised to take the third position in the world in terms of Purchasing Power Parity by the year 2010 

Retail In India  The Indian Retail Market is a Rs.1,200,000 million market as per the Images India Retail Report 2007.   Organized Retail market is zooming ahead with an annual growth rate of 30%   The country will have over 300 malls translating to over 100 million sq.ft. in available mall space by the end of 2007. 

Retail In India  Retailing in India is witnessing a huge revamping exercise as can be seen in the graph  India is rated the fifth most attractive emerging retail market: a potential goldmine.  Estimated to be US$ 200 billion, of which organized retailing (i.e. modern trade) makes up 3 percent or US$ 6.4 billion  As per a report by KPMG

Introduction  A chain of shopping malls in India currently with 31 outlet owned by Kishore Biyani’s Pantaloon Group.  Provides the best products at the best price.  Reflect the look and feel of Indian bazaars at their modern outlets .  All over India, Big Bazaar attracts a few thousand customers on any regular day.  The hypermarket chain was introduced in India in 2001 by Pantaloon Retail(India) Limited

Introduction  Pantaloon retail India Ltd was incorporated as Manz Wear private Ltd in the year 1987.  It became a public limited company in 1991 and was renamed Pantaloon Fashion Limited and then Pantaloon retail Ltd in 1999  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 a large format lifestyle retailing with the launch of “Pantaloons”,

Awards & Reorganization           

Indian Retail Forum Awards 2008 The INDIASTAR Award 2008 Retail Asia Pacific 500 Top Awards 2008 Coca-Cola Golden Spoon Awards 2008

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The Reid & Taylor Awards For Retail Excellence 2008

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Platinum Trusted Brand Award Images Retail Award 2005,06 DLF Award 04

Man Behind Big Bazaar  Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the Group Chief Executive Officer of Future Group.  He was born in August 1961.  Kishore founded Pantaloons in 1997  onsiders ‘Indianness’ as the core value driving the group  Kishore has won following awards and honors: • 2006 Ernst & Young Entrepreneur of the Year award. • 2006 Lakshmipat Singhania - IIM Lucknow Young Business Leader

7Ps Analysis Of Big Bazaar

Product Mix

Product Mix

7Ps Analysis  Price Ø Ø Ø Ø

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Value Pricing Promotional Pricing Differentiated Pricing Bundling

7Ps Analysis  Place 

7Ps Analysis  Promotion 

7Ps Analysis 

 People – They are the key assets of any organization  

The Salient Feature of Big Bazaar are:– Well Trained Staff – Staff Employed by Big Bazaar are well suited for modern retail – Well dressed staff – Employees are motivated to think out of the box

7Ps Analysis  Process 

7Ps Analysis  Physical Evidence 

3C’s Theory Big Bazaar is based on 3-C theory of Kishore Biyani. The 3-C symbolize Change, Confidence & Consumption, & according to this theory , “Change and Confidence is leading to rise in Consumption”.

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They divided Indian customer in three categories: India One  India Two  India Three   

SWOT Analysis STRENGTH High Brand Equity in evolving retails markets State-of-art infrastructure of Big Bazaar outlets POP to increase the purchase One stop shop for variety of products, increasing customer time and available choices OPPORTUNITY Organized retail is just 4.15%of total pie of Indian retail market Evolving Customer preferences in recent years

WEAKNESS Unable to meet store opening target so far Falling revenue per square feet 

THREAT Competitors, global big players planning to foray into market Unorganized retail market of India Government policies are not well-defined in India

Promotion The main idea behind every effort is to make a bulk purchase  “Saal ke sabse saste 3 din”

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Promotion  Hafte ka sabse sasta din “Wednesday bazaar”

Promotion  Exchange Offers “Junk swap offer” 

Promotion  Advertisement (print ad, TV ad, radio)

Promotion  Brand endorsement by M.S Dhoni and Asin 

Promotion  Latest Promotion technique in Diwali is “Gift Idea 2009”

Challenges Ahead  Exorbitant rentals , Lack of retail space  Real estate prices escalating  Local retailers (unorganized sector)  

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margin

Give things on credits Work on low profit

Huge taxes from organized sector favors small retailers Have personal relationship with customers still controls 97% of the retail market

 Shortage of trained man power  Increased FDI (welcoming competition from  Global retail giants like Wall Mart Tesco)  Does not appeal to elite.  Tough competition from players like Reliance,

Future