Big Bazaar

Store Design & Promotion “Jo bazaar mein milta hai, woh sab yahan milta hai”

Big bazaar Brief History The hypermarket chain was introduced in India in 2001 by Pantaloon Retail(India) Limited The first store in Kolkata 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 2

 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”, India’s family store

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The management was aware that in retail size mattered . The targeted large Indian middle class market waiting to tapped. Big Bazaar – the discount store was launched in the year 2001, to meet the aspirations of the middle class. In the span of two years, it has added a Food Bazaar and Gold Bazaar to its range of offering 4

The strategy  Saving

is the key to the Indian middle class consumer.  The concept of “Bazaar”, As the store offers large mix of products at a discounted price, the name “Big Bazaar” was finalized  The idea was to recreate a complete bazaar, with a large product offering and offer a good depth and width in terms of range

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 Price

was the basic value proposition at Big Bazaar.  The Big Bazaar outlets sold a variety of products at prices, which were 5 to 60% lower than the market price.  The catch line “Isse sasta aur acha kahin nahin” emphasised this

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Selecting the location  The

main consideration while selecting the location was ‘whether the low margin on the products would allow the company to sustain growth’.  The group conducted a study and it was found that for a store like Big Bazaar a large catchment area is needed  In Kerala they have three stores located at Thiruvananthapuram, Thrissur, Palakkad 7

The Merchandise mix  Large

product mix offered by Big Bazaar was the main attraction  Big Bazaar stocked about 1,30,000 items in over 20 product categories.  In the first year apparel accounted for 70 % of the off-take and the price was largely responsible for the success.  The prices ranged from Rs 99 to Rs 799

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 Buying

process for most of the categories at Big Bazaar was largely price driven

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Food bazaar  It

stocked on an average, 10000SKU’s and occupied 5,00square feet of retail space. It was modeled on the Indian mandi system where customer can feel, touch, choose products  The products sold were categorized as 3. Processed food& Non food(hungry kya) 4. Dry staples( golden harvest) 5. Wet staples(chill station) 10

Hungry Kya contributes 60% of Food Bazaar sales.This category includes a mix of products from a large number of FMCG companies and wide range of imported products Golden harvest includes dry groceries like rice, wheat, dal, spices. This contributes 30% of their sales Chill station includes fruits and vegetables and contributes 10% of the sales

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Why store design? It tells the customer what the store is all about It creates an image in the minds of customers It is the starting point of all marketing effort For a customer store needs to be easy to navigate, it must appeal to his sensory perceptions and must create a sense of belonging, sense of relationship . The environment created in the retail store is a combination of exterior look, store interiors, the atmosphere in the store and the events promotions and themes which form a part of retail store

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Elements of store environment

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Exterior design It is a function of location of the store site and other facilities like parking and ease of access Store front is another important factor, it should be inviting and it should have good lighting and other facilities in total it should entice potential customers into the store. Big Bazaar Thrissur is ideally located at the heart of Thrissur town half a km distant from Thrissur round PIC

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 It

is easily accessible either from Shornur road or from Vadakkanchery road  It has got a spacious parking lot also  It has got massive appeal, exterior look justifies its name “THE BIG BAZAAR”

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Interior store design  It

is a function of aesthetics within the store, the merchandise sold within, the space used, and the overall layout of the store  Space planning –the amount of space allocated within the store 1.Location of various departments 2. Creation of planogram 3. Relationship of space to profitability 16

Merchandise mix

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Merchandise mix

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Space planning  Floor

plan It is a schematic that shows:  where merchandise and customer service departments are located,  how customers circulate through the store, and how much space is dedicated to each department 20

promotion

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promotion  The

main idea behind every effort is to make a bulk purchase  “Saal ke sabse saste 3 din”  Hafte ka sabse sasta din “Wednesday bazaar”  Exchange Offers “Junk swap offer”  Advertisement (print ad, TV ad, radio)  Brand endorsement by M.S Dhoni  Point of purchase promotion  Faida zones 22

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Junk swap offer 

The customer can bring anything old, such as newspaper, and get coupons issued in exchange of the junk. The customer can redeem the coupons before the due date on the condition that he/she shops four times the value of the coupon.  The prices fixed by Big Bazaar are: clothes (Rs 200 per kg), newspaper (Rs 25 per kg), plastics/utensils/leather goods (Rs. 75 per kg), footwear/luggage (Rs. 100 per kg), Pet/beer bottles (Rs 15 per kg), tyres (Rs 50 per kg), furniture (Rs 75 per kg) and others (Rs 20 per kg).  "This offer will help the housewife clean out the junk while getting a good value for it," says Mr. Sanjeev Agarwal, President (Marketing), Pantaloon Retail (India) Ltd.

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