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India Large Consumption Cosmos

India at present is a US$ 350 billionconsumption market

India is set to become a US$ 450

billion market by 2015

Current share of organized retail isestimated to be 4-5% i.e US$18-20

billion market.

It is expected to expand to 14-18%by 2015 i.e US$ 75 billion

India Opportunity continues to be a very attractive proposition for organised retail

With over 28 states, 18 major languages, 8 major religions, 4000 different castes andcommunities celebrating 72 festivals, India is the most diverse country.

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Product Mix

FOOD

Ready toeat

Ready to

cookSpices

Staples

Int. foods

Tea &Coffee

CHILLSTATION

Soft drink

Packagedjuice

Milk ItemsFrozenfoods

Ice creams

HOME &PERSONAL

CARE

Shampoo

Detergent

Soap

Liquid Wash

Creams

Deodorant

Homecleaners

Utensils

Crockery

APPARELS

Formal

Casual

Night wear

T-shirt

Jeans

Sarees

Dressmaterials

Ethnic

Party wears

FASHION&

JEWLLERY

Footwear

BeautyCare

Navara

Star Parivar

MeenaBindre

FURNITUREBAZAAR

Living Room

Bed Room

Kitchen

DinningRooms

Kids Room

Been Bags

Paintings

DecorativeItems

ELECTRONICBAZAAR

Television sets

Washing M/C

Refrigerator

mBazaar

Microwaves

Laptops

ComputerAccessories

KitchenAppliances

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Price

y Value Pricing

y Promotional Pricing Low Interest Financing

Psychological Discounting Special Event Pricing

y Differentiated Pricing Time Pricing

y

Bundling Combo-packs

Value to customer.

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Place

Number of out let- 133;

Located in - Urban & tiercity-I;

Avg. Area-10,000sq ft-120000 sqft / store

High street area of city

Approachabledestination.

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Promotion

Gift Coupon, discount, more ofthe product at normal price, gift

with purchase, competition ,prizes, exchange offer, specialoccasion, Loyalty Program.

Below theLine

Promotion

Advertising in Print media, TV,

Radio (FM) , Online, Bill-Boards

Endorsement by M. S. Dhoni

Above theLine

Promotion

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PromotionGuerilla Marketing

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IOC

Reliance Retail,Aditya Birla Group

,Vishal Retails,

Bharti and

Walmart,

O

I policy not favora

le for

international players.

conomies of scale (minimum sizere

uirements for profita

le

operations)

ih initial investments and fixed costs

Cost advantaes of existin

players due

to experience curve

carcity of important resources, e.

.

ualified expert staff

BPOB

O P

BPO

PORTER Analysis

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y Analysis

y 5 F orces

y Analysis

y Rivalry among the competitor

y Reliance Retail, Aditya Birla Group ,Vishal Retails,

y Bharti and Walmart, etc

y Threat of entrants

y FDI policy not favorable for international players.

y Economies of scale (minimum size requirements for profitable

y operations)

y

High initial investments and fixed costsy Cost advantages of existing players due to experience curve

y effects of operation with fully depreciated assets

y Scarcity of important resources, e.g. qualified expert staff

y Bargaining power of supplier

y The bargaining power of suppliers varies dependingupon the target segment.

The unorganised sector has a dominant position. There are few playerswho have a slight edge overothers on account of being established players and

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SWOT Analysis

Organized retail is just 5%of total pie of Indian retailmarket

Evolving Customerpreferences in recent years

Competitors, global bigplayers planning to forayinto market

Unorganized retail marketof India CustomerConvenience

Government policies are not

well-defined in India

Unable to meet storeopening target so far

Falling revenue per squarefeet

Lacks in Branded Products

High Brand Equity inevolving retails markets

State-of-art infrastructureof Big Bazaar outlets Cheap Prices One stop shop for variety of

products and varied choiceavailable.

Strength Weakness

OpportunityThreat

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Segmentation

Segmentation

Geographic

Urban

Tier 1

Demographic

Upper MiddleClass

Lower MiddleClass

Psychographic

Self Expression

Interest

Life Style

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TargetingTargets higher and middle class customers.

Young working professional is a preferred customersegment.

Big Bazaar especially targets working women and homemaker.

People who looking for products offering value for money.

People who prefer to complete shopping under one roof.

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Positioning

Low

Price High Price

Low

Service

High

Service

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Positioning

Indian personification of retail

Value for money

Variety and availability of brands against prices

One Stop shopping

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Differentiation

Big bazaar tagline Is se sasta aur accha kahin nahin!

Big Bazaar High Turnover,Low Margin and Massivevolume retailers.

Value Retailing-Hypermarket Discount Store

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Product Life Cycle

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Observations

Wholly owned subsidiary FutureV

alue Retail Ltd Created tofocus on Value Retail

Successfully positioned as Value for Money Store - Is se sastaaur acha kahin nahi

Successful in targeting mass aspirational consumer byproviding the huge variety at affordable rates

Successful in physiologically positioning the image to get thecheapest rate for any product specially during the offer period

Need to focus on building the branded products portfolio

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Thanks

Presented by - Nakshatra