Description
Complete marketing and strategy analysis of Big Bazaar, It covers STP, 4 Ps , SWOT and Porter 5 forces for Big Bazaar brand.
Is se sasta aur accha kahin nahi !
FLOW
Background
Situational Analysis
• Scenario Analysis • Competition • SWOT • BCG matrix • Marketing Mix
Marketing Strategy
• Market Research • New Strategies
Financials
2
BACKGROUND
• Industry • Founded • Parent : Retail : 2001 : Pantaloon Retail India Ltd., Future Group : Mr. Kishore Biyani
• Founder
Currently 120 outlets
3
INDIA – LARGE CONSUMPTION MARKET
18 major languages, 8 major religions, 4000 different castes and communities celebrating 72 festivals, India is the most diverse country
India is a US$ 350 billion consumption market India - set to become US$ 450 billion market by 2015 Share of organized retail is estimated to be 4-5% i.e. US$18-20 billion market.
Expected to expand to 14-18% by 2015 i.e US$ 75 billion
4
5
COMPETITION
Organized sector 5% market share
e.g.- Trent (Star India Bazaar), Vishal MegaMart, RPG (Spencer)
6
Unorganized sector – 95% market share
e.g. - Local kirana stores
LIFE CYCLE OF BIG BAZAAR
S a l e s
7
Strengths
Weakness
SWOT
Opportunities Threats
8
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 9
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
10
BIG BAZAAR AT BCG MATRIX
B U S I N E S S G R O W T H R A T E H I G H
?
HIGH LOW
11
L O W
RELATIVE POSITION (MARKET SHARE)
MARKETING MIX
Product
Physical Evidence
Price
7 P’s
Process
Place
People
Promotion
12
Product Mix
APPARELS FOOD
• • • • • • • Formal wear Casual wear Night wear T-shirt Jeans Sarees Dress materials • Ethnic wears • Party wear • Ready to eat • Ready to cook • Spices • Staples • International foods • Tea & Cofee
HOME & PERSONAL CARE
CHILL STATIONS
•Shampoo •Detergent •Soap •Liquid Wash •Creams •Deodrant •Home cleaners •Utensils •Crockery
•Soft drink •Packaged juice •Milk Items •Frozen foods •Ice creams
13
Product Mix (contd..)
FASHION & JEWELLERY ELECTRONICS BAZAAR FURNITURE BAZAAR OTHERS SERVICES
• Television sets • Washing Machines • Refrigerator • Personal Care • mBazaar • Microwaves • Small Appliances • Laptops • Computer Accessories • Kitchen Appliances
• Footwear Bazaar • Beauty Care • Navara • Star Parivar • Meena Bindre
•Living Room •Bed Room •Kitchen •Dinning Rooms •Kids Room •Paintings •Decorative Items
• • • • •
Mr. right Bakery Loot Mart Tulsi Future Money • Future Generali
14
IN HOUSE BRANDS @ BIG BAZAAR
DJ & C
KORYO FRESH & PURE SARAPOLO
CLEAN MATE
STAR SITARA RENUKA and
SENSEI
CARE MATE MAJITHIA 40 more brands
FEW BRANDS @ BIG BAZAAR
15
Price
PRICING OBJECTIVE: Maximum Market Share ?Value Pricing (EDLP - Every Day Low Pricing) ?Promotional Pricing
•LOW INTEREST FINANCING • PSYCHOLOGICAL DISCOUNTING •SPECIAL EVENT PRICING (GUDI PADVA)
?Differentiated Pricing - TIME PRICING
?Bundling
16
BUNDLING PSYCHOLOGICAL PRICING
LOW-INTEREST FINANCING
TIME PRICING
17
Place
?Located in 59 cities ?Present in almost all the major Indian cities
•Number of outlets – 120. •Located in main city – tier I & tier II cities. •Area 10,000 sq ft – 1,20,000 sq ft.
•High street area of city.
•Approachable destinations.
18
Promotion
? ‘Saal ke sabse saste 3 din’ ? Wednesday – ‘Sabse sasta din’
? Future Card (3% Discount)
? Shakti Card (Women) ? Advertising (Print Ads, TV Ads, Radio, Hoardings)
? Brand Endorsement by M. S. Dhoni
? Exchange Offer – ‘Junk Swap Offer’ ? Point-of-Purchase Promotions
19
Promotion (contd..)
• Coupon Discount, more of the products at normal price, gift with purchase, competitions and prizes, money back offers and exchange offers, special occasions.
Below the line Promotion
Above the line Promotion
• Giving advertisement in news papers, TV, Internet, (own website which gives online shopping services) • Partnership with Bigflix, Big FM 92.7
20
People
? Makes for a customer-friendly atmosphere ? Employs close to 10,000 people and recruits nearly 500 people every month ? Well-dressed staff ? Use of technology like scenario planning for decision making ? Staff at store to keep baggage ? Security guards at every gate
21
Process
? Multiple counters ? Trolleys to carry the items purchased ? Proper display / posters of the place
22
Physical Evidence
It deals with the final deliverable or the display of written facts. This includes the current system and available facilities.
23
Positioning
High Service
Low Price
High Price
Organizational & Customer Value Matrix
Low Service
24
Key Features
• Optimum Pricing • Product Mix • Large stock of cheap & local products
• Establishment as a Brand
• Reduce rental budget
25
Primary Research
Age group
15-20 21-25 26-30 30-40 40-45 45+ 4 126 24 2 2 6 2% 77% 15% 1% 1% 4%
Gender
26
Primary Research
Household Income
50,000 150,000 150,000300,000 300,001500,000 500,000+ 47 29% 50 30% 49 30% - 18 11%
27
Research Findings
How often do you go to malls/supermarket?
2-3 times a week Only on Weekends Monthly As and when requires I have never gone
10 38 24 91 1
6% 23% 15% 55% 1%
28
Research Findings
From where do you buy groceries/food items?
Roadside vendors Local Shops Departmental Stores Supermarkets Others 66 5 40% 3% 78 48% Kirana 90 55% 50 30%
*People may select more than one checkbox, so percentages may add up to more than 100%
29
Research Findings
Which Supermarkets do you know of?
Hypercity Vishal Megamart D-mart Big bazaar Sahkari bhandar Others
108 74 113 157 75 9
30
Research Findings
How often do you go to Big Bazaar?
Weekly
8
5% 13% 40% 13%
Fortnightly 22 Monthly Once in 6 months Rarely 48 65 21
29%
31
Research Findings
Why do you go to Big Bazaar?
Buying Clothes 62 38% and accessories
Buying Electronics Buying Items Buying Furniture
14
9%
Food 100
61%
7
4% 51% 6%
Window shopping 84 Other 10
*People may select more than one checkbox, so percentages may add up to more than 100.
32
Research Findings
What do you like about Big Bazaar?
One-Stop Shop Large number 86 of Choices Sabse Sasta 84 51% 52% 78 48%
(reasonable prices)
Efficient
crowd management Others
8
5%
8
5%
*People may select more than one checkbox, so percentages may add up to more than 100.
33
Research Findings
Which promotional strategies of Big Bazaar do you know of?
Sabse sasta din 120 73% (Wednesday) Sabse saste 4 din 103 63% (26th Jan., 15th Aug. Etc.) Others 14 9% *People may select more than one checkbox, so percentages may add up to more than 100%
34
Research Findings
How do you come to know of different promotional offers of Big Bazaar?
Television Ads Newspapers Hoardings Radio Word of Mouth Others 59 124 51 27 53 9 36% 76% 31% 16% 32% 5%
*People may select more than one checkbox, so percentages may add up to more than 100%
35
Research Findings
Are you aware of the Online Shopping Store of Big Bazaar?
Yes No
28 136
17% 83%
36
Research Findings
If Yes, how often do you shop using this online portal of Big Bazaar
Once a Week Fortnightly Monthly Rarely Never online
3 4 0 12
3% 3% 0% 10% 84%
shopped 98
37
Research Findings
• Problems faced by the customers at Big Bazaar
– Some times the right size is difficult to identify. during the 'Sales' offers when there is a huge crowd – The Staff sometimes don’t behave properly – Assistance regarding searching a particular item is poor – Long queues on the payment counters – Irritating staff announcements
38
39
Phase 1
1.Indentify Potential cities e.g. Mumbai etc
3.Create awareness through advertisement 4. Provide best facility to customers
2. Implement child care in those 3 centers
Phase 2
1. Check increase in footfall and sales after 6 months. 2. Conduct surveys and if successful then implement in 10 cities.
Phase 3
1. Check performance and sales of new stores.
2. Implement at all the stores.
40
Child Care Centre
• It will be located near kids section. • Help families to shop without worrying about their children.
Assumption
• Increase in 0.5% of sales
Advantages: Parents shopping freely Children will demand more toys Disadvantages: Opportunity cost of space
41
Child care centre
Monthly Expenditure Ambience Toys Employees(2) Advertisement Total 10000 5000 14000 5000 34000 Yearly 10000 20000 168000 60000 258000
Cost per store Cost for 120 store
Revenue
258000 30960000
Total sales in FY 08-09 Total Expected sales as per current projections Kids section forms 12% of total Sales Sales for .5% increase with the Child care centre Profit
63420000000 70000000000 8400000000 42000000 11040000 42
Onion-Potato Scheme
• Purchase for 1,000 INR, and get free 1kg onion and Potato for 52 weeks • Offer can be claimed on weekdays only • Assumptions – 1kg potato, onion - Rs14/kg – 25% of the total weekly footfalls come, on weekdays – 5% increase in shoppers availing of this offer
43
Case1 (Rs.) Average Bill for each new weekly customer Average Cost of 1 kg potato and Onion for 52 weeks Average No of Customers Expenditure Average Cost for 250 customers for 52 weeks Total cost for 156 food bazaar stores per year 375000 58500000 50 1500 250
Case 2 (Rs.) 100 1500 250
Case3 (Rs.) 200 1500 250
375000 58500000
375000 58500000
Revenue Average Sales per week per store Sales per year for 156 food bazaar stores 12500 101400000 25000 202800000 50000 405600000
Profit
4,29,00,000
14,43,00,000
34,71,00,000
44
Billing counters
• We suggest changing the placement of the billing counters to manage crowd. • We can have cash counters at every section and few at exit.
Billing Counter Arrangement
Section ASSUMPTION: By implementing this plan their sales can increase by 0.5% Grocery Apparels Furniture Kids Electronics Kitchenware Exit Total Counters 4 3 1 3
2
3 4 20
45
Billing Counter Re-arrangement
Expenditure
Cost of rearrangement of counters per store(existing store) Cost for 120 big bazaar stores 1000000 120000000
Revenue
Total sales in FY 08-09 Total Expected sales as per current projections of the company Sales for .5% increase with the rearrangement 63420000000 70000000000 350000000
Profit
230000000
46
CONSOLIDATED FINANCIALS
Particulars COST Child care
Onion-Potato Scheme Billing counters TOTAL COST
Amount (Rs.)
3,09,60,000.00
5,85,00,000.00 12,00,00,000.00
20,94,60,000.00
REVENUE Child care
Onion-Potato Scheme Billing counters TOTAL REVENUE TOTAL PROFIT
4,20,00,000.00 20,28,00,000.00
35,00,00,000.00 59,48,00,000.00
38,53,40,000.00
47
Customers enjoying their shopping experience
48
49
doc_702860526.pptx
Complete marketing and strategy analysis of Big Bazaar, It covers STP, 4 Ps , SWOT and Porter 5 forces for Big Bazaar brand.
Is se sasta aur accha kahin nahi !
FLOW
Background
Situational Analysis
• Scenario Analysis • Competition • SWOT • BCG matrix • Marketing Mix
Marketing Strategy
• Market Research • New Strategies
Financials
2
BACKGROUND
• Industry • Founded • Parent : Retail : 2001 : Pantaloon Retail India Ltd., Future Group : Mr. Kishore Biyani
• Founder
Currently 120 outlets
3
INDIA – LARGE CONSUMPTION MARKET
18 major languages, 8 major religions, 4000 different castes and communities celebrating 72 festivals, India is the most diverse country
India is a US$ 350 billion consumption market India - set to become US$ 450 billion market by 2015 Share of organized retail is estimated to be 4-5% i.e. US$18-20 billion market.
Expected to expand to 14-18% by 2015 i.e US$ 75 billion
4
5
COMPETITION
Organized sector 5% market share
e.g.- Trent (Star India Bazaar), Vishal MegaMart, RPG (Spencer)
6
Unorganized sector – 95% market share
e.g. - Local kirana stores
LIFE CYCLE OF BIG BAZAAR
S a l e s
7
Strengths
Weakness
SWOT
Opportunities Threats
8
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 9
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
10
BIG BAZAAR AT BCG MATRIX
B U S I N E S S G R O W T H R A T E H I G H
?
HIGH LOW
11
L O W
RELATIVE POSITION (MARKET SHARE)
MARKETING MIX
Product
Physical Evidence
Price
7 P’s
Process
Place
People
Promotion
12
Product Mix
APPARELS FOOD
• • • • • • • Formal wear Casual wear Night wear T-shirt Jeans Sarees Dress materials • Ethnic wears • Party wear • Ready to eat • Ready to cook • Spices • Staples • International foods • Tea & Cofee
HOME & PERSONAL CARE
CHILL STATIONS
•Shampoo •Detergent •Soap •Liquid Wash •Creams •Deodrant •Home cleaners •Utensils •Crockery
•Soft drink •Packaged juice •Milk Items •Frozen foods •Ice creams
13
Product Mix (contd..)
FASHION & JEWELLERY ELECTRONICS BAZAAR FURNITURE BAZAAR OTHERS SERVICES
• Television sets • Washing Machines • Refrigerator • Personal Care • mBazaar • Microwaves • Small Appliances • Laptops • Computer Accessories • Kitchen Appliances
• Footwear Bazaar • Beauty Care • Navara • Star Parivar • Meena Bindre
•Living Room •Bed Room •Kitchen •Dinning Rooms •Kids Room •Paintings •Decorative Items
• • • • •
Mr. right Bakery Loot Mart Tulsi Future Money • Future Generali
14
IN HOUSE BRANDS @ BIG BAZAAR
DJ & C
KORYO FRESH & PURE SARAPOLO
CLEAN MATE
STAR SITARA RENUKA and
SENSEI
CARE MATE MAJITHIA 40 more brands
FEW BRANDS @ BIG BAZAAR
15
Price
PRICING OBJECTIVE: Maximum Market Share ?Value Pricing (EDLP - Every Day Low Pricing) ?Promotional Pricing
•LOW INTEREST FINANCING • PSYCHOLOGICAL DISCOUNTING •SPECIAL EVENT PRICING (GUDI PADVA)
?Differentiated Pricing - TIME PRICING
?Bundling
16
BUNDLING PSYCHOLOGICAL PRICING
LOW-INTEREST FINANCING
TIME PRICING
17
Place
?Located in 59 cities ?Present in almost all the major Indian cities
•Number of outlets – 120. •Located in main city – tier I & tier II cities. •Area 10,000 sq ft – 1,20,000 sq ft.
•High street area of city.
•Approachable destinations.
18
Promotion
? ‘Saal ke sabse saste 3 din’ ? Wednesday – ‘Sabse sasta din’
? Future Card (3% Discount)
? Shakti Card (Women) ? Advertising (Print Ads, TV Ads, Radio, Hoardings)
? Brand Endorsement by M. S. Dhoni
? Exchange Offer – ‘Junk Swap Offer’ ? Point-of-Purchase Promotions
19
Promotion (contd..)
• Coupon Discount, more of the products at normal price, gift with purchase, competitions and prizes, money back offers and exchange offers, special occasions.
Below the line Promotion
Above the line Promotion
• Giving advertisement in news papers, TV, Internet, (own website which gives online shopping services) • Partnership with Bigflix, Big FM 92.7
20
People
? Makes for a customer-friendly atmosphere ? Employs close to 10,000 people and recruits nearly 500 people every month ? Well-dressed staff ? Use of technology like scenario planning for decision making ? Staff at store to keep baggage ? Security guards at every gate
21
Process
? Multiple counters ? Trolleys to carry the items purchased ? Proper display / posters of the place
22
Physical Evidence
It deals with the final deliverable or the display of written facts. This includes the current system and available facilities.
23
Positioning
High Service
Low Price
High Price
Organizational & Customer Value Matrix
Low Service
24
Key Features
• Optimum Pricing • Product Mix • Large stock of cheap & local products
• Establishment as a Brand
• Reduce rental budget
25
Primary Research
Age group
15-20 21-25 26-30 30-40 40-45 45+ 4 126 24 2 2 6 2% 77% 15% 1% 1% 4%
Gender
26
Primary Research
Household Income
50,000 150,000 150,000300,000 300,001500,000 500,000+ 47 29% 50 30% 49 30% - 18 11%
27
Research Findings
How often do you go to malls/supermarket?
2-3 times a week Only on Weekends Monthly As and when requires I have never gone
10 38 24 91 1
6% 23% 15% 55% 1%
28
Research Findings
From where do you buy groceries/food items?
Roadside vendors Local Shops Departmental Stores Supermarkets Others 66 5 40% 3% 78 48% Kirana 90 55% 50 30%
*People may select more than one checkbox, so percentages may add up to more than 100%
29
Research Findings
Which Supermarkets do you know of?
Hypercity Vishal Megamart D-mart Big bazaar Sahkari bhandar Others
108 74 113 157 75 9
30
Research Findings
How often do you go to Big Bazaar?
Weekly
8
5% 13% 40% 13%
Fortnightly 22 Monthly Once in 6 months Rarely 48 65 21
29%
31
Research Findings
Why do you go to Big Bazaar?
Buying Clothes 62 38% and accessories
Buying Electronics Buying Items Buying Furniture
14
9%
Food 100
61%
7
4% 51% 6%
Window shopping 84 Other 10
*People may select more than one checkbox, so percentages may add up to more than 100.
32
Research Findings
What do you like about Big Bazaar?
One-Stop Shop Large number 86 of Choices Sabse Sasta 84 51% 52% 78 48%
(reasonable prices)
Efficient
crowd management Others
8
5%
8
5%
*People may select more than one checkbox, so percentages may add up to more than 100.
33
Research Findings
Which promotional strategies of Big Bazaar do you know of?
Sabse sasta din 120 73% (Wednesday) Sabse saste 4 din 103 63% (26th Jan., 15th Aug. Etc.) Others 14 9% *People may select more than one checkbox, so percentages may add up to more than 100%
34
Research Findings
How do you come to know of different promotional offers of Big Bazaar?
Television Ads Newspapers Hoardings Radio Word of Mouth Others 59 124 51 27 53 9 36% 76% 31% 16% 32% 5%
*People may select more than one checkbox, so percentages may add up to more than 100%
35
Research Findings
Are you aware of the Online Shopping Store of Big Bazaar?
Yes No
28 136
17% 83%
36
Research Findings
If Yes, how often do you shop using this online portal of Big Bazaar
Once a Week Fortnightly Monthly Rarely Never online
3 4 0 12
3% 3% 0% 10% 84%
shopped 98
37
Research Findings
• Problems faced by the customers at Big Bazaar
– Some times the right size is difficult to identify. during the 'Sales' offers when there is a huge crowd – The Staff sometimes don’t behave properly – Assistance regarding searching a particular item is poor – Long queues on the payment counters – Irritating staff announcements
38
39
Phase 1
1.Indentify Potential cities e.g. Mumbai etc
3.Create awareness through advertisement 4. Provide best facility to customers
2. Implement child care in those 3 centers
Phase 2
1. Check increase in footfall and sales after 6 months. 2. Conduct surveys and if successful then implement in 10 cities.
Phase 3
1. Check performance and sales of new stores.
2. Implement at all the stores.
40
Child Care Centre
• It will be located near kids section. • Help families to shop without worrying about their children.
Assumption
• Increase in 0.5% of sales
Advantages: Parents shopping freely Children will demand more toys Disadvantages: Opportunity cost of space
41
Child care centre
Monthly Expenditure Ambience Toys Employees(2) Advertisement Total 10000 5000 14000 5000 34000 Yearly 10000 20000 168000 60000 258000
Cost per store Cost for 120 store
Revenue
258000 30960000
Total sales in FY 08-09 Total Expected sales as per current projections Kids section forms 12% of total Sales Sales for .5% increase with the Child care centre Profit
63420000000 70000000000 8400000000 42000000 11040000 42
Onion-Potato Scheme
• Purchase for 1,000 INR, and get free 1kg onion and Potato for 52 weeks • Offer can be claimed on weekdays only • Assumptions – 1kg potato, onion - Rs14/kg – 25% of the total weekly footfalls come, on weekdays – 5% increase in shoppers availing of this offer
43
Case1 (Rs.) Average Bill for each new weekly customer Average Cost of 1 kg potato and Onion for 52 weeks Average No of Customers Expenditure Average Cost for 250 customers for 52 weeks Total cost for 156 food bazaar stores per year 375000 58500000 50 1500 250
Case 2 (Rs.) 100 1500 250
Case3 (Rs.) 200 1500 250
375000 58500000
375000 58500000
Revenue Average Sales per week per store Sales per year for 156 food bazaar stores 12500 101400000 25000 202800000 50000 405600000
Profit
4,29,00,000
14,43,00,000
34,71,00,000
44
Billing counters
• We suggest changing the placement of the billing counters to manage crowd. • We can have cash counters at every section and few at exit.
Billing Counter Arrangement
Section ASSUMPTION: By implementing this plan their sales can increase by 0.5% Grocery Apparels Furniture Kids Electronics Kitchenware Exit Total Counters 4 3 1 3
2
3 4 20
45
Billing Counter Re-arrangement
Expenditure
Cost of rearrangement of counters per store(existing store) Cost for 120 big bazaar stores 1000000 120000000
Revenue
Total sales in FY 08-09 Total Expected sales as per current projections of the company Sales for .5% increase with the rearrangement 63420000000 70000000000 350000000
Profit
230000000
46
CONSOLIDATED FINANCIALS
Particulars COST Child care
Onion-Potato Scheme Billing counters TOTAL COST
Amount (Rs.)
3,09,60,000.00
5,85,00,000.00 12,00,00,000.00
20,94,60,000.00
REVENUE Child care
Onion-Potato Scheme Billing counters TOTAL REVENUE TOTAL PROFIT
4,20,00,000.00 20,28,00,000.00
35,00,00,000.00 59,48,00,000.00
38,53,40,000.00
47
Customers enjoying their shopping experience
48
49
doc_702860526.pptx