Big-Bazaar- S A U R A B H A R O R A ( D M 1 8 2 4 6 )

- A J AY N O R M A N ( D M 1 8 2 0 2 )- A N K U R K I S L AYA ( D M 1 8 2 0 6 )

- M E L I SS A M A R I A M ( D M 1 8 2 3 3 )- S H I VA M S H U K L A ( D M 1 8 2 4 8 )

Introduction Industry – Retailing (Hypermarket)

It’s part of future group and founded in 2001

Headquarters in Mumbai

Major Promoter – Kishor Biyani

Offers wide range of merchandise including apparels, furniture, electronics, books etc.

Perception Map

Big Bazaar

High service

Low service

High PriceLow Price

Retailing Scene in India2005 2016

Indian retail market was at $250 billion Retail market is at $600 billion

Retails sales represents about 33% of GDP

In 2016, retail sales present about 10% of Gross Domestic Product

Was mostly unorganized and organized retail constitute of around 4%

Organized retail constitute around 10%

2 Segments of Retailing Value Retailing Lifestyle Retailing

Focus on ROIs rather than desires Generally sold aspirational merchandise

Consists of Hyper Markets and Food Super Markets

Consists of Single Brand Outlets and Franchises

Its moto is everyday low price Prices are reduced, depending on discounts

Prices are generally low with discounts provided

Prices are relatively high

Products are bundled more Relatively less bundling is seen

Formats of Big Bazaar Value retailing segment Selling areas greater than 8000 square ft. It offers low prices for goods of comparable qualities.

Also offers greater variety of goods Provided touch and feel of merchandise Also offered parking, Air Condition shopping and merchandise return privileges.

Typical Indian consumer shopping behavior

They got a habit of shopping in “Bazar like atmosphere”.

In Indian Families domestic workers often shopped for there employers

Consumers were price sensitive and often opted for low cost products

Indian shoppers would like to have touch and feel the goods before purchasing

General perception – Low price, low quality

How Big-Bazaar leveraged this behavior

It offered value retailing in hypermarkets. It positioned itself as “Traditional Bazaar” with convenience of organized retail

Like traditional bazaar, it offered wide variety of products and personalized consumer service.

Also offered products in loose, like traditional Kirana stores. Customers were given liberty and choice to pick up the products on there own, more convenient than Kirana store.

Contracted with “raddiwala” and offered schemes of selling old goods, to lure customers.

Traditional Indian Channel & Physical distribution model

Big bazaar being a large retailer fits in Hypermarket

Factory

C&F Agent

Distributor

Wholesaler Large Retailer Modern Trade Retailer

Small Retailer

Big-Bazaar into Supply Chain Management

Pros –

- High stocks can be maintained and shipping can be done promptly

Cons –

-Would lead to more expenses and financial disadvantage

-Had to pay taxes