Big Bazar case study future group

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					                      Retail In India
 The Indian retail industry accounts for 10% of GDP and 8% of
  employment.

 India is being touted as the next big retail destination with an
  average three year compounded annual growth rate of
  46.64%.

 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 the
  annual growth of department
  stores is estimated at 24%
                            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
• The first store in Kolkata
                          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”, India’s family
  store
                   Awards & Reorganization
•   Indian Retail Forum Awards 2008

•   The INDIASTAR Award 2008

•   Retail Asia Pacific 500 Top Awards 2008

•   Coca-Cola Golden Spoon Awards 2008

•   The Reid & Taylor Awards For Retail
    Excellence 2008

•   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
                 Award.
  • 2006 CNBC First Generation
  Entrepreneur of the Year award.
7Ps Analysis Of Big Bazaar
Product Mix
Product Mix
                            7Ps Analysis

• Price
      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”.

They divided Indian customer in three categories:-
• India One
• India Two
• India Three
                       SWOT Analysis
            STRENGTH                         WEAKNESS
•High Brand Equity in evolving
retails markets                       • Unable to meet store
•State-of-art infrastructure of Big     opening target so far
Bazaar outlets
•POP to increase the purchase         • Falling revenue per
•One stop shop for variety of           square feet
products, increasing customer
time and available choices


          OPPORTUNITY                              THREAT
•Organized retail is just 4.15%of     •Competitors, global big players
total pie of Indian retail market     planning to foray into market
•Evolving Customer preferences        •Unorganized retail market of
in recent years                       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”
                      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)
         Give things on credits
         Work on low profit margin
         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, RPG group
Future