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CONSUMER PERCEPTION ABOUT IN HOUSE BRANDS OF BIG BAZAAR

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Private labels of Big Bazaar

• Apparels: Bare, DJ&C, Indigo Nation, RIG ,KnightHood etc

• FMCG: Tasty Treat, Fresh n Pure • General merchandise: Dream-line • Consumer durables & electronics: Sensei and

Koryo • Future Brands, the group’s wholly-owned

subsidiary, plans to launch sportswear, lingerie and beauty products in the next 3-4 months along with FMCG products such as toothpaste, soaps and detergents among others.

Big Bazaar Consumer

• India One• Consuming class, constitutes only 14% of Indian

population. • They are upper middle class and most of customers

have substantial disposable income. • Initial focus of Big Bazaar. • India Two• Serving class which includes people like drivers,

house-hold helps, office peons, washer-men, etc. • For every India One, there are at least India Two and

have around 55% of Indian population.

• India Three

• Struggling class, remaining population of India.

• Cannot afford to inspire for better living, have hand-to-mouth existence.

• Needs cannot be addressed by current business models.

Benefits of Private label

• Private labels provide an opportunity to differentiate from existing retail store’s brands and offer variety in the product category .

• They help in gaining customer loyalty in a situation where one can avoid comparisons.

• Private labels aid in positive image building.

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• With in-store brands retailers can also leverage a certain freedom in pricing strategy.

• Gain positive control over inventory and better bargaining position in economy.

• In-store labels are imbued with generating higher profit margins for supermarket operators, which in turn allows them to boost bottom line performance

Benefits of Private Label

ANALYSIS

Consumer survey

• Sample size: 30

• Sex Ratio:60:40

• Age group: Diverse

• Location: Big Bazaar, Food Bazaar

Motivating factor for buying

Findings and

Suggestions

Reasons for Lack of Confidence for Private label

• Customers are generally wary of straying away from their usually followed manufacturer’s brands.

• Apart from this most shoppers are not aware of better choice, quality and price offered by retailer’s private labels.

• They still consider private labels as poor cousins of manufacturer’s

brands, compromising upon quality.

Measures for promotion

• Retailers need to manage the psychology of customers and justify their acceptance to new in-store brands.

• Retailers should focus on promotional tools for their private brands to compete with other branded players in the category.

• Retailers can distribute pamphlets and brochures telling about their assured quality, low priced private labels among the people living with in the vicinity of their store.

Promotion…

• Retailers should introduce attractive offers on the purchase of the private labels -all private labels at better quality and at 15 percent lesser price in comparison to other branded players.

• Retailers should offer 100 percent replacement in case of any defect in the product; they should also employ all other advertising tools used by the manufacturer’s brands