Description
It describes about Industry Trends, PEST Analysis of retail Industry, Competitor Analysis, SWOT analysis, Company Description, General Information about the future group, it's Finance performance, SWOT analysis of future group, competitor analysis and Various Strategies employed.
Report on Future Group
Industry Profile: Retail means selling goods and services in small quantities directly to customers. Retailing consists of all the activities involved in marketing of goods and services directly to consumer for their personnel family and household use. The Indian retail market is the fifth largest retail destination globally, has been ranked as the most attractive emerging market for investment in retail sector. A McKinsey report, “The rise of Indian consumer market”, estimates that the Indian consumer market is likely to grow four times by 2025. According to study by global management consulting firm AT Kearney India has emerged as the most attractive market destination for apparel retailers. The share of the retail trade in the country?s gross domestic product is around 10% with annual growth rate of around 30%.With rising consumer demand and greater income the US$ 400 billion Indian retail sector is not so far. Retail is India?s largest industry, accounting for over 13 percent of the country?s GDP. Retail industry in India is at the crossroads. It has emerged as one of the most dynamic and fast paced industries with several players entering the market. But because of the heavy initial investments required, break even is difficult to achieve and many of these players have not tasted success so far. However the future is promising; the market is growing, government policies are becoming more favourable and emerging technologies are facilitating operations. Retailing in India is gradually inching its way toward becoming the next boom industry. The whole concept of shopping has altered in terms of format and consumer buying behaviour, ushering in a revolution in shopping in India. Modern retail has entered India as seen in sprawling shopping centres, multi-storeyed malls and huge complexes offer shopping, entertainment and food all under one roof. The Indian retailing sector is at an inflexion point where the growth of organized retailing and growth in the consumption by the Indian population is going to take a higher growth trajectory. The Indian population is witnessing a significant change in its demographics. A large young working population with average age of 24 years, nuclear families in urban areas, along with increasing working-women population and emerging opportunities in the services sector are going to be the key growth drivers of the organized retail sector in India.India spends more than $350 Billion into retail sector divided into some key categories led by food, fashion and home products.
The percentagewise distribution can be given as follows: Category Food Fashion Fashion Accessories Consumer Durables Furniture Health, Beauty & Pharma Leisure & Entertainment Telcom Books & Music Approx. Percentage spending 62 9.5 5.5 4 3.4 3.8 7.9 1.8 1.1
As it can be observed from the above results, The Food Retail Industry in India dominates the shopping basket. The Mobile phone Retail industry in India is already above US$ 20 billion business, growing at over 20 per cent per year. Experts agree that apparel, along with food and grocery is leading the growth of organised retailing in India.
Competitor Analysis: Top retailers in India include: 1. Pentaloon Retail (India) Ltd. 2. K. Raheja Group 3.Tata Group 4.R P G Group 5.Landmark Group 6.Piramal Group 7.Subhiksha 8.Bharti – Walmart 9.Reliance 10. A V Birla Group
Major factors to consider for competition are: 1. Positioning It includes the Aisle space, In-store ambience, Plano gram, Visual mechandise, Parking facility, Facade, Advertisement, Membership Privileges, Signage, Trial rooms, Wash rooms, Alteration service, Air conditioning, Exchange Provisions, Billing Facility etc.
2. Product It includes Style options, varieties of product, colours, quality, their sizes, different trends available, presence of national brands, size of collection etc.
3. Price Maximum options should be available at a given price. Best possible quality should be delivered at reasonable price. Price of the product should be determined by taking into consideration the economic position of people in that geographical area. 4. Promotion It includes Festival promotions, End of seasons, Theme based, Brand endorsement, Media etc.
5. People Determining customer preferences and expectation is very important. Employees should be provided sales training to understand the customer temperament and convince them to buy.
PEST Analysis of Retail Industry:
Political: ? ? ? ? ? ? ? Strong opposition to FDI in India?s retail sector Taxation policy Interest rates & monetary policies Low access to banking facilities Environment regulations and policies Consumer protection Employment laws
Economic: ? ? ? ? ? ? GDP growth Foreign Investment Money supply Inflation rates Recession Exchange rates
Social: ? ? ? ? ? ? ? ? ? ? ? Corporate social responsibility Income distribution Demographics, Population growth rates, Age distribution Labour / social mobility Lifestyle changes Work/career and leisure attitudes Entrepreneurial spirit Education Fashion, hypes Health consciousness & welfare, feelings on safety Living conditions
Technological: ? ? ? ? ? ? ? Online shopping Retail media networks New inventions and development Rate of technology transfer Life cycle and speed of technological obsolescence Energy use and costs Changes in Information Technology
SWOT Analysis of Retail Industry:
Strengths: ? ? ? ? ? Demographic favour Increase in spending per capita Income Increase in number of people in earner category Urbanization Shopping convenience
Weaknesses: ? Policy related issues -lack of industry status for retail -numerous licence, permits requirement ? Inadequate human resources -lack of trained personnel at all level -stringent employment and industry laws
? Taxation hurdle -vat and multiple taxation issues -inconsistent octroi and entry tax structure ? Underdeveloped supply chain -underdeveloped logistics infrastructure -lack of national distributional network s and hubs Opportunities: ? ? ? ? Threats ? ? ? ? ? ? Poor monsoons and low GDP growth could affect consumer spending drastically Increase in competition Price sensitive market Security concerns Recession Inflation Potential for investment Huge untapped market Fastest growing formats E-retailing
Company Description: Future Group is one of the country?s leading business groups present in retail, consumer finance, services, asset management, insurance, retail media, retail spaces and logistics. While retail forms the core business activity of Future Group. Through over 15 million square feet of retail space Future Group serve customers in 85 cities and 60 rural locations across the country. Future Group was founded on a simple idea: Rewrite rules, retain values. Future Group?s vision is to, “deliver Everything, Everywhere, Every time to Every Indian Consumer in the most profitable manner. Some of its leading retail formats include, Pantaloons - Fresh fashion store, Big BazaarHypermarket chain, Central - Seamless department store, Food Bazaar - Supermarket chain, Home Town - Home improvement and building materials store, eZone-Electronics superstore, Aadhaar - Rural retail chain, Planet Store - Sportswear retailer, Future Money and online retail format, futurebazaar.com - Shopping portal. Key group companies in various fields: Retail ? Pantaloon Retail (India) Limited ? Future Value Retail Limited. Finance ? ? ? ? Future Generali Life Insurance Company Limited Future Generali (India) Insurance Company Limited Future Capital Holdings Limited Future Ventures (India) Limited
Services ? ? ? ? Future Supply Chains Limited Future Human Development Limited Future Media (India) Limited Future Corporate Resources Limited
The group?s joint venture partners include Italian insurance major, Generali, French retailer ETAM group, US-based stationary products retailer, Staples Inc and UK-based Lee Cooper and India-based Talwalkar?s, Blue Foods and Liberty Shoes. Future Group help India shop, save and realize dreams and aspirations to live a better quality of life every day.
Company Profile: Company is headquartered in Mumbai, India. It is founded by Kishore Biyani in 1987. Future Group employs 35,000 people across the country.
.
Around 220 million customers walk into our stores each year and choose products and services supplied by over 30,000 small, medium and large manufacturers from across India. And this number is set to grow. Pantaloon Retail (India) Limited is the Flagship company of Future Group. Out of all the Group companies listed above most of them are privately held corporations. Pantaloon Retail (India) Limited, Future Capital Holdings Limited and Future Ventures (India) Limited are the 3 Public Limited Companies listed in the National Stock Exchange and Bombay Stock Exchange.
Top management committee Board includes the following: ? ? ? ? ? ? ? ? ? Kishore Biyani - M.D. Mr. Ved Prakash Arya - Director Mr. Gopikishan Biyani - Wholetime Director Mr. Rakesh Biyani - Wholetime Director Mr. Shailesh Haribhakti - Independent Director Dr. D O Koshy - Independent Director Ms. Anju Poddar - Independent Director Ms. Bala Deshpande - Independent Director Mr. Anil Harish - Independent Director
Future Group has a vibrant culture, dedicated to customer service excellence and high ethical standards to deliver great value to customers. Although Future Groups business is spanning across various fields, retail is always the core business activity of Future Group. In retail Big Bazaar is one of the most important zones. Big Bazaar is hypermarket format that combines the look, touch and feel of Indian bazaars with choice and convenience of modern retail. The first set of Big Bazaar store opened in 2001 in big cities. After that it marked the fastest ever expansion of a hypermarket.
Financial Results for the Year Ended 30th June, 2010 (Rs. In Crores) Sr. No. 1 2 Particulars Year ended 30th June, 2010 8926.08 (336.89) 35.48 6606.99 394.04 212.32 1407.36 8319.30 606.78 85.73 692.51 391.28 301.23 12.93 288.30 48.69 12.63 (3.17) 230.15
3 4 5 6
7 8
9 10
Net Income from Operations Expenditure a)(Increase)/Decrease in stock in trade & Work in progress b)Consumption of Raw Materials c)Purchases of Trading Goods d)Employee cost e)Depreciation f)Other Expenditure Total Profit from Operations before other Income and Interest Other Income Profit before Interest Interest Profit/(Loss) before Exceptional items Exceptional items Profit before Tax Tax expenses a)Fringe Benefit Tax b)Current Tax c)Deferred Tax Earlier years Income Tax Net Profit for the year
SWOT Analysis of Big Bazaar: Strengths: ? Better understanding of customers helping the company to serve them better ? Vast range of products under one roof helping in attracting customer and their family to shop together and enjoy the experience ? Benefit of early entry into the retail industry ? Diversified business operating all over India in various retail formats ? Ability to get products from customers at discounted price due to the scale of business. Weaknesses: ? High cost of operation due to large fixed costs ? Very thin margin ? High attrition rate of employees Opportunities
Opportunities: ? Lot of potential in the rural market ? Can enter into production of various products due to its in depth understanding of customers? tastes and preferences ? Can expand the business in smaller cities as there is a lot of opportunity Threats: ? ? ? ? ? ? High business risk involved Lot of competitors coming up to tap the market potential Margin of business reducing all the time Inflation, Recession Domestic Geo-Political Scenarios FDI in retail may arrive at any time.
Future Groups principles are focussed on two main areas: ? Integrating sustainable development into business activities and ? promoting sustained economic development for the country.
Business Divisions: Retail: Future Group?s founder Kishore Biyani has analyzed Indian retail market and Indian consumer. He knows behaviour of Indian consumer. Big Bazaar has spread in all over India. They know India from depth. They know how to get best employees and how to manage them. Big Bazaar has good relationship with many big companies like HUL. Big Bazaar gets products at lower cost and facilities because of good relationship with suppliers. Suppliers get good sale from Big Bazaar. Suppliers have to make good relationship with Big Bazaar. The Big Bazaar is the discount store, which offers a wide range of products under one roof. Big Bazaar has been given good responses to threat of substitution. Big Bazaar has threats from new formats. Big Bazaar has many products under one roof. It had threat that other retailers can open speciality stores for each category. This speciality stores can be substitute for Big Bazaar. Future group has been launched many new retail formats like central mall, food Bazaar, staples, Furniture bazaar, Home town, E zone etc for responding threat of speciality stores. The products include apparels and non-apparels such as utensils, sports goods and footwear. The company also has its presence into gold retailing by launching Gold Bazaar.
The company?s Food Bazaar provides a range of food and grocery products ranging from fresh fruits and vegetables, staples, FMCG products and ready to cook products. The Central offers a chain of stores including books and music stores, global brands in fashion, sports and lifestyle accessories, grocery store and restaurants. The Pantaloon retail stores focus largely on apparels and accessories. Design-led thinking helped Big Bazaar to achieve „customer-first? objective and ultimately lead to better financial performance. Low price and High services is the key feature of Big Bazaar. It is cleverly planned by considering the major percentage of middle class people in India.
Finance: Similar to the retail concept of Future Group retail stores, Future Capital aims at providing holistic financial solutions by being a one stop shop for all retail financial products ranging from loans, payment solutions, wealth management and equity broking solutions, insurance offerings, real estate broking and money changing. Future Capital Holdings is an NBFC and is in the business of providing financial services across wholesale and consumer businesses. The company offers business in two segments - Retail Financial Services and Wholesale Credit. Under Retail, it offers Consumer Durable loans, Loans against property, Security and Gold and is in the process of launching new products in the consumer finance and wealth management segments. In the Wholesale Credit category, its bouquet covers corporate loans for acquisitions, project financing and other wholesale businesses. The company has more than 50000 customers, nearly 40 full service branches, around 600 employees and net worth more than Rs. 750crores. Future Group more than 200 large stores across the formats of Big Bazaar, Hometown, E Zone, Pantaloon and Central?s with over 15 million square feet of retail space and over 200 million customer footfalls annually. Thus, the strategic tie up with Future Group?s retail stores has offered Future Capital the magnanimous bandwidth of large format retail stores namely Big Bazaar, E zone and Hometown. A financial services company integrated with a retail chain makes a great combination, as the two entities provide complementary services.
Functional Departments of Future Group in Retail: 1. Human Resource Department The HR department of Big Bazaar is very dynamic. Employees are the biggest strength and asset of any organization and the HR dept realises this very well. This is very evident from the way the HR department handles all its employees. They take utmost care to select, train, motivate and retain all the employees. They have continuous developmental programmes for all the employees. The salary of an employee includes basic pay, HRA, special allowance, PF, ESI, Mediclaim etc. Annual bonus will be given at the time of Diwali. They selects and recruits employees through various sources such as consultancy services, walk-ins, Referrals, Campus recruitment.
2. Marketing Department The Marketing department is responsible for marketing of Big Bazaar?s products through different media like TV, radio, newspapers, banners, placards etc. Marketing concept is a customer orientation backed by integrated marketing aimed at generating customer satisfaction as the key to satisfying organizational goals. Good customer service is the life blood of any business. Good customer service is all about attending to existing and potential customers. Maintaining good relationship with the customers is the key to business success and hence the concept relationship marketing. Relationship marketing is based on the idea that people prefer to do business with people who they know and like. After all, it's easier to buy from a friend, than from someone you've never heard of before. It's a matter of building trust. Category management: Another concept that was incorporated in Big Bazaar from the beginning was that of „Category management? as opposed to the brand merchandising practice that is followed by many retailers. Category management is based on the belief that a customer walks into a store looking for party shirt or a formal trouser, rather than a particular brand. Therefore the store is designed according to the categories like men?s formal wear, women?s western wear or a casual wear etc. 3. Logistics Logistics is a very important department of Big Bazaar. It is responsible for procuring the stock of all the products of the different departments. The logistics department receives the goods from the warehouse. The logistics department works in complete coordination with all the other departments to ensure that the stocks are received and maintained properly and continuously for the smooth functioning of Big Bazaar and avoid any inconvenience to the customers.
4. Sales Department This department is responsible for the collection of sales amount i.e., cash sales. There are number cash counters in the Store for customer to get quick access. In addition to cash all leading credit and debit cards are accepted at no extra charge. Also Big Bazaar vouchers and Sodexho coupons are also accepted. The cashier has to ensure that all the offers applicable on respective products are given to the customer in his/ her bill. Also if any free items are given on some purchases, it should be informed to the customer clearly. After the billing is done, the cashier has to pack the products neatly in a plastic cover according to the customer?s needs. 5. Customer Service Desk As the name suggests this is the separate dept which mainly focuses on customer service like if a customer finds difficulty in finding any product, if there are any customer complaints, they are also looked into, any customer assistance etc. is also provided. The dept also collects customers? opinion / feedback for continuous improvement in their service. The ultimate aim of this department is to help and satisfy the customer in every possible manner and makes the customers? experience memorable.
doc_523602471.docx
It describes about Industry Trends, PEST Analysis of retail Industry, Competitor Analysis, SWOT analysis, Company Description, General Information about the future group, it's Finance performance, SWOT analysis of future group, competitor analysis and Various Strategies employed.
Report on Future Group
Industry Profile: Retail means selling goods and services in small quantities directly to customers. Retailing consists of all the activities involved in marketing of goods and services directly to consumer for their personnel family and household use. The Indian retail market is the fifth largest retail destination globally, has been ranked as the most attractive emerging market for investment in retail sector. A McKinsey report, “The rise of Indian consumer market”, estimates that the Indian consumer market is likely to grow four times by 2025. According to study by global management consulting firm AT Kearney India has emerged as the most attractive market destination for apparel retailers. The share of the retail trade in the country?s gross domestic product is around 10% with annual growth rate of around 30%.With rising consumer demand and greater income the US$ 400 billion Indian retail sector is not so far. Retail is India?s largest industry, accounting for over 13 percent of the country?s GDP. Retail industry in India is at the crossroads. It has emerged as one of the most dynamic and fast paced industries with several players entering the market. But because of the heavy initial investments required, break even is difficult to achieve and many of these players have not tasted success so far. However the future is promising; the market is growing, government policies are becoming more favourable and emerging technologies are facilitating operations. Retailing in India is gradually inching its way toward becoming the next boom industry. The whole concept of shopping has altered in terms of format and consumer buying behaviour, ushering in a revolution in shopping in India. Modern retail has entered India as seen in sprawling shopping centres, multi-storeyed malls and huge complexes offer shopping, entertainment and food all under one roof. The Indian retailing sector is at an inflexion point where the growth of organized retailing and growth in the consumption by the Indian population is going to take a higher growth trajectory. The Indian population is witnessing a significant change in its demographics. A large young working population with average age of 24 years, nuclear families in urban areas, along with increasing working-women population and emerging opportunities in the services sector are going to be the key growth drivers of the organized retail sector in India.India spends more than $350 Billion into retail sector divided into some key categories led by food, fashion and home products.
The percentagewise distribution can be given as follows: Category Food Fashion Fashion Accessories Consumer Durables Furniture Health, Beauty & Pharma Leisure & Entertainment Telcom Books & Music Approx. Percentage spending 62 9.5 5.5 4 3.4 3.8 7.9 1.8 1.1
As it can be observed from the above results, The Food Retail Industry in India dominates the shopping basket. The Mobile phone Retail industry in India is already above US$ 20 billion business, growing at over 20 per cent per year. Experts agree that apparel, along with food and grocery is leading the growth of organised retailing in India.
Competitor Analysis: Top retailers in India include: 1. Pentaloon Retail (India) Ltd. 2. K. Raheja Group 3.Tata Group 4.R P G Group 5.Landmark Group 6.Piramal Group 7.Subhiksha 8.Bharti – Walmart 9.Reliance 10. A V Birla Group
Major factors to consider for competition are: 1. Positioning It includes the Aisle space, In-store ambience, Plano gram, Visual mechandise, Parking facility, Facade, Advertisement, Membership Privileges, Signage, Trial rooms, Wash rooms, Alteration service, Air conditioning, Exchange Provisions, Billing Facility etc.
2. Product It includes Style options, varieties of product, colours, quality, their sizes, different trends available, presence of national brands, size of collection etc.
3. Price Maximum options should be available at a given price. Best possible quality should be delivered at reasonable price. Price of the product should be determined by taking into consideration the economic position of people in that geographical area. 4. Promotion It includes Festival promotions, End of seasons, Theme based, Brand endorsement, Media etc.
5. People Determining customer preferences and expectation is very important. Employees should be provided sales training to understand the customer temperament and convince them to buy.
PEST Analysis of Retail Industry:
Political: ? ? ? ? ? ? ? Strong opposition to FDI in India?s retail sector Taxation policy Interest rates & monetary policies Low access to banking facilities Environment regulations and policies Consumer protection Employment laws
Economic: ? ? ? ? ? ? GDP growth Foreign Investment Money supply Inflation rates Recession Exchange rates
Social: ? ? ? ? ? ? ? ? ? ? ? Corporate social responsibility Income distribution Demographics, Population growth rates, Age distribution Labour / social mobility Lifestyle changes Work/career and leisure attitudes Entrepreneurial spirit Education Fashion, hypes Health consciousness & welfare, feelings on safety Living conditions
Technological: ? ? ? ? ? ? ? Online shopping Retail media networks New inventions and development Rate of technology transfer Life cycle and speed of technological obsolescence Energy use and costs Changes in Information Technology
SWOT Analysis of Retail Industry:
Strengths: ? ? ? ? ? Demographic favour Increase in spending per capita Income Increase in number of people in earner category Urbanization Shopping convenience
Weaknesses: ? Policy related issues -lack of industry status for retail -numerous licence, permits requirement ? Inadequate human resources -lack of trained personnel at all level -stringent employment and industry laws
? Taxation hurdle -vat and multiple taxation issues -inconsistent octroi and entry tax structure ? Underdeveloped supply chain -underdeveloped logistics infrastructure -lack of national distributional network s and hubs Opportunities: ? ? ? ? Threats ? ? ? ? ? ? Poor monsoons and low GDP growth could affect consumer spending drastically Increase in competition Price sensitive market Security concerns Recession Inflation Potential for investment Huge untapped market Fastest growing formats E-retailing
Company Description: Future Group is one of the country?s leading business groups present in retail, consumer finance, services, asset management, insurance, retail media, retail spaces and logistics. While retail forms the core business activity of Future Group. Through over 15 million square feet of retail space Future Group serve customers in 85 cities and 60 rural locations across the country. Future Group was founded on a simple idea: Rewrite rules, retain values. Future Group?s vision is to, “deliver Everything, Everywhere, Every time to Every Indian Consumer in the most profitable manner. Some of its leading retail formats include, Pantaloons - Fresh fashion store, Big BazaarHypermarket chain, Central - Seamless department store, Food Bazaar - Supermarket chain, Home Town - Home improvement and building materials store, eZone-Electronics superstore, Aadhaar - Rural retail chain, Planet Store - Sportswear retailer, Future Money and online retail format, futurebazaar.com - Shopping portal. Key group companies in various fields: Retail ? Pantaloon Retail (India) Limited ? Future Value Retail Limited. Finance ? ? ? ? Future Generali Life Insurance Company Limited Future Generali (India) Insurance Company Limited Future Capital Holdings Limited Future Ventures (India) Limited
Services ? ? ? ? Future Supply Chains Limited Future Human Development Limited Future Media (India) Limited Future Corporate Resources Limited
The group?s joint venture partners include Italian insurance major, Generali, French retailer ETAM group, US-based stationary products retailer, Staples Inc and UK-based Lee Cooper and India-based Talwalkar?s, Blue Foods and Liberty Shoes. Future Group help India shop, save and realize dreams and aspirations to live a better quality of life every day.
Company Profile: Company is headquartered in Mumbai, India. It is founded by Kishore Biyani in 1987. Future Group employs 35,000 people across the country.
.
Around 220 million customers walk into our stores each year and choose products and services supplied by over 30,000 small, medium and large manufacturers from across India. And this number is set to grow. Pantaloon Retail (India) Limited is the Flagship company of Future Group. Out of all the Group companies listed above most of them are privately held corporations. Pantaloon Retail (India) Limited, Future Capital Holdings Limited and Future Ventures (India) Limited are the 3 Public Limited Companies listed in the National Stock Exchange and Bombay Stock Exchange.
Top management committee Board includes the following: ? ? ? ? ? ? ? ? ? Kishore Biyani - M.D. Mr. Ved Prakash Arya - Director Mr. Gopikishan Biyani - Wholetime Director Mr. Rakesh Biyani - Wholetime Director Mr. Shailesh Haribhakti - Independent Director Dr. D O Koshy - Independent Director Ms. Anju Poddar - Independent Director Ms. Bala Deshpande - Independent Director Mr. Anil Harish - Independent Director
Future Group has a vibrant culture, dedicated to customer service excellence and high ethical standards to deliver great value to customers. Although Future Groups business is spanning across various fields, retail is always the core business activity of Future Group. In retail Big Bazaar is one of the most important zones. Big Bazaar is hypermarket format that combines the look, touch and feel of Indian bazaars with choice and convenience of modern retail. The first set of Big Bazaar store opened in 2001 in big cities. After that it marked the fastest ever expansion of a hypermarket.
Financial Results for the Year Ended 30th June, 2010 (Rs. In Crores) Sr. No. 1 2 Particulars Year ended 30th June, 2010 8926.08 (336.89) 35.48 6606.99 394.04 212.32 1407.36 8319.30 606.78 85.73 692.51 391.28 301.23 12.93 288.30 48.69 12.63 (3.17) 230.15
3 4 5 6
7 8
9 10
Net Income from Operations Expenditure a)(Increase)/Decrease in stock in trade & Work in progress b)Consumption of Raw Materials c)Purchases of Trading Goods d)Employee cost e)Depreciation f)Other Expenditure Total Profit from Operations before other Income and Interest Other Income Profit before Interest Interest Profit/(Loss) before Exceptional items Exceptional items Profit before Tax Tax expenses a)Fringe Benefit Tax b)Current Tax c)Deferred Tax Earlier years Income Tax Net Profit for the year
SWOT Analysis of Big Bazaar: Strengths: ? Better understanding of customers helping the company to serve them better ? Vast range of products under one roof helping in attracting customer and their family to shop together and enjoy the experience ? Benefit of early entry into the retail industry ? Diversified business operating all over India in various retail formats ? Ability to get products from customers at discounted price due to the scale of business. Weaknesses: ? High cost of operation due to large fixed costs ? Very thin margin ? High attrition rate of employees Opportunities
Opportunities: ? Lot of potential in the rural market ? Can enter into production of various products due to its in depth understanding of customers? tastes and preferences ? Can expand the business in smaller cities as there is a lot of opportunity Threats: ? ? ? ? ? ? High business risk involved Lot of competitors coming up to tap the market potential Margin of business reducing all the time Inflation, Recession Domestic Geo-Political Scenarios FDI in retail may arrive at any time.
Future Groups principles are focussed on two main areas: ? Integrating sustainable development into business activities and ? promoting sustained economic development for the country.
Business Divisions: Retail: Future Group?s founder Kishore Biyani has analyzed Indian retail market and Indian consumer. He knows behaviour of Indian consumer. Big Bazaar has spread in all over India. They know India from depth. They know how to get best employees and how to manage them. Big Bazaar has good relationship with many big companies like HUL. Big Bazaar gets products at lower cost and facilities because of good relationship with suppliers. Suppliers get good sale from Big Bazaar. Suppliers have to make good relationship with Big Bazaar. The Big Bazaar is the discount store, which offers a wide range of products under one roof. Big Bazaar has been given good responses to threat of substitution. Big Bazaar has threats from new formats. Big Bazaar has many products under one roof. It had threat that other retailers can open speciality stores for each category. This speciality stores can be substitute for Big Bazaar. Future group has been launched many new retail formats like central mall, food Bazaar, staples, Furniture bazaar, Home town, E zone etc for responding threat of speciality stores. The products include apparels and non-apparels such as utensils, sports goods and footwear. The company also has its presence into gold retailing by launching Gold Bazaar.
The company?s Food Bazaar provides a range of food and grocery products ranging from fresh fruits and vegetables, staples, FMCG products and ready to cook products. The Central offers a chain of stores including books and music stores, global brands in fashion, sports and lifestyle accessories, grocery store and restaurants. The Pantaloon retail stores focus largely on apparels and accessories. Design-led thinking helped Big Bazaar to achieve „customer-first? objective and ultimately lead to better financial performance. Low price and High services is the key feature of Big Bazaar. It is cleverly planned by considering the major percentage of middle class people in India.
Finance: Similar to the retail concept of Future Group retail stores, Future Capital aims at providing holistic financial solutions by being a one stop shop for all retail financial products ranging from loans, payment solutions, wealth management and equity broking solutions, insurance offerings, real estate broking and money changing. Future Capital Holdings is an NBFC and is in the business of providing financial services across wholesale and consumer businesses. The company offers business in two segments - Retail Financial Services and Wholesale Credit. Under Retail, it offers Consumer Durable loans, Loans against property, Security and Gold and is in the process of launching new products in the consumer finance and wealth management segments. In the Wholesale Credit category, its bouquet covers corporate loans for acquisitions, project financing and other wholesale businesses. The company has more than 50000 customers, nearly 40 full service branches, around 600 employees and net worth more than Rs. 750crores. Future Group more than 200 large stores across the formats of Big Bazaar, Hometown, E Zone, Pantaloon and Central?s with over 15 million square feet of retail space and over 200 million customer footfalls annually. Thus, the strategic tie up with Future Group?s retail stores has offered Future Capital the magnanimous bandwidth of large format retail stores namely Big Bazaar, E zone and Hometown. A financial services company integrated with a retail chain makes a great combination, as the two entities provide complementary services.
Functional Departments of Future Group in Retail: 1. Human Resource Department The HR department of Big Bazaar is very dynamic. Employees are the biggest strength and asset of any organization and the HR dept realises this very well. This is very evident from the way the HR department handles all its employees. They take utmost care to select, train, motivate and retain all the employees. They have continuous developmental programmes for all the employees. The salary of an employee includes basic pay, HRA, special allowance, PF, ESI, Mediclaim etc. Annual bonus will be given at the time of Diwali. They selects and recruits employees through various sources such as consultancy services, walk-ins, Referrals, Campus recruitment.
2. Marketing Department The Marketing department is responsible for marketing of Big Bazaar?s products through different media like TV, radio, newspapers, banners, placards etc. Marketing concept is a customer orientation backed by integrated marketing aimed at generating customer satisfaction as the key to satisfying organizational goals. Good customer service is the life blood of any business. Good customer service is all about attending to existing and potential customers. Maintaining good relationship with the customers is the key to business success and hence the concept relationship marketing. Relationship marketing is based on the idea that people prefer to do business with people who they know and like. After all, it's easier to buy from a friend, than from someone you've never heard of before. It's a matter of building trust. Category management: Another concept that was incorporated in Big Bazaar from the beginning was that of „Category management? as opposed to the brand merchandising practice that is followed by many retailers. Category management is based on the belief that a customer walks into a store looking for party shirt or a formal trouser, rather than a particular brand. Therefore the store is designed according to the categories like men?s formal wear, women?s western wear or a casual wear etc. 3. Logistics Logistics is a very important department of Big Bazaar. It is responsible for procuring the stock of all the products of the different departments. The logistics department receives the goods from the warehouse. The logistics department works in complete coordination with all the other departments to ensure that the stocks are received and maintained properly and continuously for the smooth functioning of Big Bazaar and avoid any inconvenience to the customers.
4. Sales Department This department is responsible for the collection of sales amount i.e., cash sales. There are number cash counters in the Store for customer to get quick access. In addition to cash all leading credit and debit cards are accepted at no extra charge. Also Big Bazaar vouchers and Sodexho coupons are also accepted. The cashier has to ensure that all the offers applicable on respective products are given to the customer in his/ her bill. Also if any free items are given on some purchases, it should be informed to the customer clearly. After the billing is done, the cashier has to pack the products neatly in a plastic cover according to the customer?s needs. 5. Customer Service Desk As the name suggests this is the separate dept which mainly focuses on customer service like if a customer finds difficulty in finding any product, if there are any customer complaints, they are also looked into, any customer assistance etc. is also provided. The dept also collects customers? opinion / feedback for continuous improvement in their service. The ultimate aim of this department is to help and satisfy the customer in every possible manner and makes the customers? experience memorable.
doc_523602471.docx