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Company History
Biyanistarted with his family bussiness intextiles in the year 1987.
He launched the 1st branded ready made
trousers brand known as Pantaloon.With
the help of his companyPantaloon fashions,
later it named as Pantaloon Shoppe stores.
In 1992, Biyani reached to customer level
with its 60 exclusive shops.
Initial brand wasJohn Miller and Bare.
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Present Overview
Pantaloons
Central
Big bazaar
Food bazaar
Brand factory Home Town
Furniture bazaar
Ezone
Electronics bazaar
Lee cooper
Future money
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Who is the
brainchild for allthese malls are???
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Mr.Kishore biyani
He is coined as:Father of retailing in India
Rajah of retail
Indias retail CZAR
The unstoppable Indian
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1000 stores in 71 cities with 30,000
people employed.
Today the company has almost 14,000
shareholders.
He now has about 22different retailformats.
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Q.1 The layout of big bazaar
stores is radically different fromthose in West. Do you think this
layout would be successful in the
wake of the entry of big players
such as Wal-Mart in India
market?
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Brief History The hypermarket chain was introduced in Indiain
2001 by Pantaloon Retail(India) Limited. The first store in Kolkata
The discount store waslaunched in the year 2001, to
meet theaspirations of the middle class. In thespan
of two years, it has added a FoodBazaar and GoldBazaar to its range of offering.
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The Strategy
Biyanis Vision- To give the Indian customer the feelof a local market place-narrow lanes, crowdedmarket place and customers bumping into eachother and into commodities.
Saving is the key to the Indian middle classconsumer.
The concept of Bazaar, As the store offers largemix 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 andwidth in terms of range
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To remove Myth in the mind of Indian
consumer that big shopping stores charge more
prices for commodities,compared to the localkirana stores.
Selecting the Location
Ability to pull crowds. Positive economies of scale.
Large catchment area is needed.
Generally, those stores in which builders are readyto provide fully-furnished stores that enables them
to start there operation immediately.
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Elements of store environment
Store
Environment
StoreImage
StoreTheme
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Merchandise MIX
Large product mix offered by Big Bazaar was
the main attraction.
Big Bazaar stocked about 1,30,000items in
over 20 product categories.
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Threats
In long run Big bazaar layout will face
problems, in the wake of entry of
big players such as Wal-Martin Indian .
Then what will be the impact?????
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PotentialEntrance
Suppliers Buyers
Substitute
product
Switching
Cost
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Where the problem lies with
??
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Biggest problem lies with Big Bazaar is the
Inventory level Management.
Still they follow Traditional supply chain.
Low in Technological upgradation.
Delivery not in Time.
High Debt exposure.
In-house brands occupy 40% of equity.
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Strength of
Low cost leadership:
Wal-Mart uses legendary inventory replishment system
Through this system Wal-Mart continuously sends orders for new
merchandise directly to suppliers as soon as customer pays for
purchases at cash register.
By this Wal-Mart does not have to spend money on maintaining large
inventories of goods in its own warehouse and can adjust with
customer demand.
By this customer response system Wal-Mart easily manages to keep its
operational costs low.
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Q2.Using the traditional supply
chain has worked for Biyani so far.
Do you think it would work in the
future as Reliance has chosen to
follow the exclusive supply chainroute for its stores?
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Using traditional supply chain Biyani cant
sustain in the long run.....
Traditional supply chain
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i i d d i d i f h
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1.Biyani succeeded in reduction of the expenses
incurred, while occupying store from 75million to
40 million for a 50,000 sq.ftstores but fails to
maintain the inventory level management.2. Biyani has often tied up with manufacturersto
bring down the selling price of the products sold in
big bazaar, on the other sideBiyani fails to reducethe ovherhead cost due to the traditional supply
chain.
3.Though Biyani has a clear communication withthe public through their advertising campaign but
fails to maintain two waycommunication between
the supply chain.
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Q3. Do you think having a
farm near Big bazaar is agood idea? Do you think this
concept would beoperationally viable?
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Having a farm near Big Bazaar is a good
idea.
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Advantage To Biyani
He easily can focus on the concept, "farm toplate.
He can maintain freshness in his food
commodities.
The Food Bazaar at Ahmedabad has a full-
fledged dairy and produce 1000 litres a day and
produces its own paneer and pasteurised milk.
Through this biyani has created in-house labelsfor certain products.
Low price commodity
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Advantage to operational activities
Narrow the supply chain.
Reduction in overhead cost.
More customer attraction.
High Inventory Managemnet.
EasyInput Process.
High production capacity.
Control over demand.Will give scope for low prices,discounts
and promotional gifts.
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Q4.Biyani is targeting to
occupy 60% of self space inhis stores with in-house
brands. Do you think it is agood idea?
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Occupying 60% of shelf space with in-housebrands is not a good idea.
Reasons In the long run, Big bazaar may face the
problem related to the verities of MerchandiseMix.
It will merge the equity of other products.
It will incurred switching cost.
Low substitute product.
Offerings by Rivalry. It may have a negative impact over the brand
image.
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