big bazaar retail visit project report

RMS RETAIL ASSIGNMENT 1

Individual Retail Visit Report

OBSERVATIONS AND ANALYSIS OF BIG BAZAAR RETAIL STORE

BY:

MUSTAHID ALI


MBA-3, ROLL NO: 1334

UNIVERSAL BUSINESS SCHOOL

Contents

Introduction ……………………………………………………………………………………… 3

Brand Philosophy ……………………………………………………………………………… 4

Address of the Big Bazaar retail store ……………….……………………………… 5

Socio economic importance of Big Bazaar in Phoenix Mall, Lower Parel .. 6

Identifying the Retail Type and its Product/Service categories …………… 15

Strategic Drivers of the Retail Industry ………………………………………….. 18

Modern Technology deployed by Big Bazaar …………………………………. 26

Marketing Mix Strategy applied by Big Bazaar …………….…………………. 30

Bibliography …………………….……………………………………………………….. 38


INTRODUCTION

Pantaloons Retail (India) Limited, a subsidiary of FUTURE GROUP, is India’s leading

retailer that operates multiple retail formats

in both the value and lifestyle segment of the

Indian consumer market. Headquartered in

Mumbai (Bombay), the company operates

over 7 millions square feet of retail space, has

over 1000 stores across 53 cities in India and

employs over 25,000 people.

The company’s leading formats include

Pantaloons, a chain of fashion outlets, Big

Bazaar, a uniquely Indian Hypermarket chain,

Food Bazaar, a supermarket chain, blends the

look, touch and feel of Indian bazaars with aspects of modern retail like choice,

convenience and quality and Central, a chain of seamless destination malls. Some of

its other formats include, Depot, Shoe Factory, Brand Factory, Blue Sky, Fashion

Station, all, Top 10, bazaar and Star and Sitara. The company also operates an online

portal, futurebazaar.com.

Big Bazaar is not just another hypermarket. It caters to every need of your family.

Where Big Bazaar scores over other stores is its value for money proposition for the

Indian customers.


At Big Bazaar, you will definitely get the best products at the best prices - that’s what

they guarantee. With the ever increasing array of private labels, it has opened the

doors into the world of fashion and general merchandise including Home furnishings,

utensils, crockery, cutlery, sports goods and much more at prices that will surprise you.

And this is just the beginning. Big Bazaar plans to add much more to complete your

shopping experience.

Brand philosophy

The success of one of the largest retail shops, stores, and catalog companies can be

attributed to the vision and philosophies of their founders. For the companies

highlighted below, each name was a person before it was a world famous retail brand.

For these top retailers, business was not just business, and their enterprises moved to

the top of the retail industry powered by their own vision and personal philosophies.

From setting up the first Pantaloons store in Gariahat, Kolkata in August 1997 and then

the first Big Bazaar in Mumbai at the High Street Phoenix Mills in 2002, Kishore Biyani

has redefined a lot many rules. But as he better puts it across for us, “I based

everything on one philosophy: rewrite rules but retail values. Chase your dreams but

don’t compromise on your belief system.” Today, with a pan India presence, Future

Group is a well-known household name. From products to insurance to real estate, the

company has its wings spread far and wide. To come to think of it, end number of

accolades fall short for Kishore Biyani and his empire that he has built – right from

scratch that too!

Offers shoppers one stop shopping experience.

Wide range of variety

Price and quality conscious “Is se sasta aur acha kahin nai”

Now its “Naye India Ka Bazaar”

Providing a complete bazaar.

http://retailindustry.about.com/od/statisticsresearch/p/retailindustry.htm


ADDRESS

Big Bazaar

462 Phoenix Mills Cmpd, Lower Parel, Senapati Bapat Marg,

Mumbai - 400013

022-66626713, 66626714, 66626703, 66626704, 1800223050

[email protected]

mailto:[email protected]




Socio-Economic Importance of Big

Bazaar in Lower Parel, Mumbai

With upto 25 retail stores in the city of Mumbai ( Future Group., 2014) and still growing

at a fast pace Big Bazaar is setting its own benchmark for all the retailers in the retailing

industry. I have chosen the Big Bazaar store located in High Street Phoenix Mall, Lower

Parel,Mumbai as it is one the best and convenience region and also has a very

pressure free atmosphere.

This is first big bazaar retail store which was opened in Mumbai at High Street Phoenix

To start off with, the Big Bazaar in Lower Parel is a freestanding or a stand-alone store.

It is isolated and has no adjacent retailers with which they have to share traffic,

however mall also has other electronics retails like Tata Croma, Reliance Digital but

what I observe Big Bazaar has its unique identity and has its location advantage with

all in under one roof forte. This type of store have quite a few advantages which works

in the favour of Big Bazaar, Phoenix Mall, Lower Parel. They are:

Main location with a lot of front space.

No competition in close proximity.

High flexibility in terms of timings and larger space may be obtained.

Better road and traffic visibility is possible.

Adaptation of facilities according to individual specification.

Easy parking can be arranged.

Reduction in costs are possible, leading to lower prices

The disadvantages that Big Bazaar- Phoenix Mall face being a freestanding store are:

Relatively high rental costs.

Competition with other electronics retails like Tata Croma, Reliance digital

within the mall.

Continuous and consistent traffic will not flow long distances to visit a specific

store.

Internally they have a limited trade area.

High advertising expenses.

Cost such as outside lighting, security, ground maintenance, trash collection is

to be borne by Big Bazaar.


Big Bazaar boasts of having most of the hypermarkets brands that are not available in

that particular area. Though there are competitors only in electronic consumer

durables like Tata Croma , Reliance digital but apart from this big bazaar is all in one

retail store which attracts the customers. This calls for youth, newly married couples,

house wives and all other segments traffic in the store.

$350 Billion consumption spending provides the single biggest business opportunity in

India and is divided into some key categories led by food, fashion and home products.

Market size-

Earlier the Size of Indian Retail was 194% i.e. 2, 30,000 cr. Now it is 18% i.e. 416353

Size of retail in India (in $billion).

Big bazaar formats are household names in more than 63 cities and 65 rural centers

through our rural retailing format, Aadhar. These formats cover over 11 million square

feet of retail space and attract around 200 million customer footfalls in a year. In 2011

Big Bazaar opened its 200th store opened in India.

INDIA – LARGE CONSUMPTION MARKET

18 major languages, 8 major religions, 4000 different castes and communities celebrating 72 festivals, India is the most diverse country


Some stats of modern retail industry.


In the 2000s, states raced against each other on per capita GDP. While almost all

states grew well, not all of them could keep pace with others close to them. The

chart below shows you how state rankings have changed between 2004-05 and

2011-12.

The incidence of poverty has declined from 45.3% in 1993-94 to 37.2% in 2004-05 and

further to 21.9% in 2011-12. The percentage of persons below the Poverty Line in

2011-12 has been estimated as 25.7% in rural areas, 13.7% in urban areas and 21.9%

for the country as a whole.


Charts of Indian economy and Maharashtra state growth GDP, 1999-2014


When both growth and poverty reduction are looked at in concert, Maharashtra and

Andhra Pradesh come off as the best perfomers, well above the national average on

both parameters. It is also noteworthy that while Gujarat grew faster than

Maharashtra in terms of its GSDP during the 7 year period under consideration,

Maharashtra did slightly better on a per person basis.


India today has a large middle class, a youth population which is happy spending. The

figure below shows Mumbai’s (MMR – Mumbai Metropolitan Region) high GDP

growth as compared to that of Maharashtra.


Overall big bazaar stores in India at a glance, Low cost is not the only thing that people

are looking for today. Bundle offers, discounts, exchange sales are also a great way to

sell your product. Big bazaar targets these offers and bundles them along with the sale

of selected goods. Many people fall for the offer and buy the product. These offers

entice customers to impulse buying thinking the offer might get discontinued.


Identifying the Retail Type and its

Product/Service Categories

Big Bazaar comes under the category of hypermarket retail store. Big Bazaar sell

everything from apparel to Kitchen tools, from kids wear to toys and many more. They

offer it in a way which makes them special. They are available everywhere. Big Bazaar

is a hypermarket store means a large superstore, combining a supermarket and

departmental store, offering full lines of grocery and general merchandise all under

one roof. Their key categories retailed are food, groceries, apparel, furnishings and

consumer durables.

PRODUCT MIX:-

APPARELS FOOD

PRODUCTS

CHILL

STATION

HOME

&

PERSONAL

CARE

FASHION

&

JEWELLERY

CHILD

CARE

&

TOYS

Formal Wear Staples Soft drinks Shampoos Footwear Kids wear

Denim

T- shirts

Ready to eat Packaged

Juices

Detergent

Soap

Beauty Care Toy Bazaar

Fabrics

&

Cut piece

Ready

to cook

Milk items Liquid wash Bindre Stationery

Accessories Spices Frozen

foods

Cream Child Care

Under garment Imported

Bazaar

Ice-cream Deodorants

Night wear Tea & Coffee Utensils

Party wear Plastics

Sarees Crockery


APPARELS

• Denims

• T-Shirts

• Fabric & Cut piece

• Formal Wear

• Casual Wear

• Party Wear

• Ethnic Wear

• Accessories

• Under Garments

• Night Wear

• Dress Materials

• Sarees

FOOD

• Staples

• Ready to eat

• Ready to cook

• International Food

• Spices

• Imported Bazaar

• Tea & Coffee

FARM PRODUCT

• Fruits

• Vegetables

• Imported Fruits

• Dairy Products

CHILL STATION

• Soft Drinks

• Packaged Juices

• Milk Items

• Frozen Foods

• Ice Creams

HOME & PERSONAL CARE

• Shampoos

• Detergents

• Soaps

• Liquid wash

• Creams

• Deodorants

• Home cleaners

• Utensils

• Plastics

• Crockery

• Sundries

Product Mix

Product Mix Cont..

ELECTRONICS BAZAAR

• Television sets • Washing

Machines • Refrigerator • Personal Care • mBazaar • Microwaves • Small

Appliances • Laptops • Computer

Accessories • Kitchen

Appliances

FASHION & JEWELLERY

• Footwear Bazaar • Beauty Care • Navara • Star Parivar • Meena Bindre

FURNITURE BAZAAR

• Living Room • Bed Room • Kitchen • Dinning Rooms • Kids Room • Been Bags • Paintings • Decorative Items


EVALUATE THE KEY STRATEGIC

DRIVERS OF THE RETAIL INDUSTRY

3-C THEORY

According to Kishore Biyani's 3-C theory, Change and Confidence among the

population is leading to rise in Consumption, through better employment and

income. Big Bazaar has divided India into three segments:

India one: The Consuming class which includes upper middle and lower middle

class (14% of India's populatn).

India two: The Serving class which includes people like drivers, household helps,

office persons, liftmen, and washermen (55% of Indiaio's population) and

India three: The Struggling class (31% of India's population).

With the economy in place today, a new revolution is taking place. It is becoming highly

difficult for the retailers to survive this competition, on and off the web. Revolutionary

thinking needs to be possessed by the retailers to thrive in today’s world. There need

to be a few changes that have to be made by the retailer to sustain him.

A focused approach to strategic planning.

Advanced marketing skills.

A stronger customer focus.

Enhanced exposure on the Internet.

THE STRATEGY:-

Savings is the key to the Indian middle class consumer.

The Concept of Big 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 &

offer a good depth & width in terms of range.

Price was the basic value proposition at Big Bazaar.

http://en.wikipedia.org/wiki/Kishore_Biyani


Big Bazaar outlets sold a variety of products at prices; which were 5 to 70%

lower than the Market Price.

The catch line “Is se sasta aur acha kahi nahi” emphasized the value of the Mall.

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 & it was found that for a store like Big Bazaar, a

large catchment area is needed.

In Mumbai they have around 20 stores located at all prime locations.

THE MERCHANDISE MIX:-

Large Product mix offered by Big Bazaar was the main attachment.

The World stocked about 105000 items in over 18 product Categories.

In first year apparel accounted for 70% of the off take & the price was largely

responsible for the success.

Price range starts from Rs 49 to Rs 250,000 according to the needs of customers.

Buying Process for most of the categories at big Bazaar is largely price driven.

STORES DESIGN:-

It tells the customer what the store is all about. It creates an image in the minds of

Customer .It is the starting point of all marketing efforts. For a customer store needs

to be easy to navigate, it must appeal to his sensory Perceptions & must create a sense

of belonging sense of relationship. The environment created in retail store is a

combination of exterior look, store interiors, the atmosphere in the store & events

promotions & themes which form a part of retail store.


Standard store design size

INTERIOR STORE DESIGN:-

It is a function of aesthetics within the store, the merchandise sold within the

space used & the overall layout of the store.

Space planning: the amount of space allocate within the store.

Location of Various department.

Creation of planogram.

Relationship of space of profitability.

Big Bazaar is the three storied building, the ground floor with food & beverages.

The first floor is completely apparels & home & personal care. The Second floor

is completely with jewellery & decoration materials & the third floor is all about

shoes, casuals, child care & toys.


MARKETING STRATEGY:-

Minimize Retailing Cost

Operating

Fewer Staff on the floor one person for every 500sq ft.

Furniture cost-Rs. 800 sq ft unlike the Rs. 1600 sqft.( Life style, Shoppersstop)

Giving discount offers, working women by monthly saving bazaar and home

makers by providing a wide range of food, non food, fruits and vegetable.

TARGET CUSTOMER PROFILE

Geographic :

Target Region : Mumbai, Lower Parel.

Areas : Residential & Commercial areas.

Demographic :

Young working population.

Women folk & Home makers.

Young & growing population of nearby areas.

Higher & Upper Middle class people.

Recently married couple.

Psychographic :

Status conscious

Price conscious

Behavioral :

Quality conscious

Weekly & monthly shoppers


Life cycle of Big Bazaar

PORTER FIVE FORCES MODEL:-

Five force Analysis Rivalry among competitors Reliance Retail

Vishal Retails Bharti & Wal-Mart etc.

Threats of the entrants FDI policy not favorable for international buyers.

Domestic conglomerates looking to start retail chain.

International players looking to foray India.


Bargaining power of the supplier The bargaining power of supplier varies depending upon the target segment.

The unorganized sector has a dominant position.

There were few players who have a slight edge over others on account of being established players & enjoying brand distinction.

Bargaining power of buyer Consumers are price sensitive. Availability of more choice.

Threat of substitutes Unorganized retail.

SWOT ANALYSIS:-

Strengths Weakness

Opportunities Threats

SWOT


Strengths

• One stop shop

• Benefit of early entry into the retail industry

• Cheap goods as no middleman

• Diversified business

• Better understanding of customers

Weaknesses

• High cost of operation due to large fixed costs

• Sub standard Quality of goods

• Very thin margin

• High attrition rate of employee

Opportunities

• Organized retail (4-5%)

• Rural market

• Evolving consumer preferences

• Business in smaller cities

Threats

• Unorganized retail

• Lot of competitors coming up to tap the market potential

• Margin of business reducing all the time


KEY STRATEGIC DRIVERS ARE:-

Maha Bachat

The Great Exchange Offer

Discounts – “Hafte ka sabse din was introduced by the Big Bazaar, where in

extra and special discounts were offered on Wednesday every week, to attract

the potential buyers into their store.

Junk swap offer

Cheaper price

All things available in a single store

Brand endorsement

Weekend discounts

Catchy tagline – Isse sasta aur accha kahin nahin

Wednesday bazaar


Identify all the modern technology

deployed by the big bazaar :-

The evolution of technology within the retail and e-commerce space is shaping

how consumers behave and interact with brands and savvy, smart retailers

know that understanding shoppers’ behavior is key for success. These retailers

realize they can utilize technology to capitalise on consumer needs and

customised offerings to help significantly increase their bottom lines.

SAP Point-Of-Sale (SAP POS)

India’s retail giant Future Group is installing the latest point-of-sale (POS)

technology and retail software from Germany-based Wincor Nixdorf, a leading

provider of innovative IT solutions to retailers and retail banks, to streamline its

retail store processes and improve the customer experience across its outlets.

Technology deployment Operational Bar strength of big bazaar was info. Sys.

code reader and EDI (electronic data interchange) for information sharing with

suppliers with in & across the stores

Retail link to study POS data & product inventories.

Introduced RFID to have more visibility in S&C.

Implemented Future SAP to build transact. Mgt. sys

Launched e-commerce stores

.


Other technologies are:

Existing architecture of it system(hardware)

Billing system

Inventory replenishment

Order tracking

Vendor selection process

SANCHAYAN AND SAMADHAN- These is the applications used for cash

transactions, also any error in transaction related to cash are corrected through

these applications.

SAMPRADAN- this software is used for pay back membership card i.e. used for

checking points on card and redemption of voucher.

SAP – They uses this software in warehouse for inventory purpose.

SPARSH – This software contains all the staff information regarding their wages,

attendance, Timings etc.


Online website

Store Warehouse

Store

Store

Warehouse

Datacenter

DR

All Branches / Retail Stores

Web Server

DNS Server

Proxy Server

Application Server

Application Server

Application Server

Route

Firewall

Switch

Web Server

DNS Server

Proxy Server

Application Server

Application Server

Application Server

Route

Firewall

Switch

Leased lines

Leased lines Leased

lines

Leased lines

Private Cloud

Big Bazaar Network Ssys Design


Online website is one of the most powerful sourcing system which is direct to the

customer, customer can check the available items/products , prices, offers, bundle

offers and beside they can directly buy online through the website.


IDENTIFY THE MARKETING MIX

STRATEGY APPLIED BY THE big

bazaar, TO GAIN COMPETITIVE

ADVANTAGE

Retail Marketing

Mix

Price

Place

Product

PromotionPeople

Process

Physical Evidence


How does a retailer inform his customers about the product he has an offer on?

How does he lure them to visit his store and shop?

How does he achieve his sales target?

The answer to all the above questions lie in the retail marketing mix strategy the

retailer follows to pursue his marketing objectives. All these strategies are explained

below.


Bibliography

1. Source: CSO, RBI, EAC to PM, Ministry of Finance; 10th March, 2014

2. Databook for DCH; 10th March, 2014

3. Source: Rural Urban Distribution of Population - India, Census of India

2011 (PCA Final Data) #: Refers to Union Territory

4. Source : Reserve Bank of India, Central Statistical Organisation, Finance

Ministry, EAC to PM etc.

5. http://en.wikipedia.org/wiki/Indian_economic_census

6. http://censusindia.gov.in/Census_And_You/economic_activity.aspx

7. http://censusindia.gov.in/2014-Circulars/Socio_Economic_Circular.html

8. https://unstats.un.org/unsd/newsletter/unsd_workshops/country/India

n%20Economic%20Census.pdf

9. Bajaj, C., Tuli, R. and Srivastava, N.V. (2010) Retail Management, 2nd

edition, New Delhi: Oxford University Press.

10. http://www.futurebazaar.com/

11. http://bigbazaardirect.com/

12. http://khojguru.com/mumbai/big-bazaar-big-retail-store-in-phoenix-

mall-lower-parel-mumbai_3mm47

13. http://en.wikipedia.org/wiki/Big_Bazaar

14. http://www.bplans.com/samples/sba.php

15. Pantaloon Retail India Limited

16. "Future Group trims workforce". Times of India. 21 February 2012.

Retrieved 24 February 2012.

http://en.wikipedia.org/wiki/Indian_economic_census

http://censusindia.gov.in/Census_And_You/economic_activity.aspx

http://censusindia.gov.in/2014-Circulars/Socio_Economic_Circular.html

http://www.futurebazaar.com/

http://bigbazaardirect.com/

http://khojguru.com/mumbai/big-bazaar-big-retail-store-in-phoenix-mall-lower-parel-mumbai_3mm47

http://khojguru.com/mumbai/big-bazaar-big-retail-store-in-phoenix-mall-lower-parel-mumbai_3mm47

http://en.wikipedia.org/wiki/Big_Bazaar

http://www.bplans.com/samples/sba.php

http://timesofindia.indiatimes.com/business/india-business/Future-Group-trims-workforce/articleshow/11970771.cms

big bazaar retail visit project report

Education