Big Bazaar, India's largest retailer. Understand the retail strategy, marketing strategy, sales promotion and other retail aspect at Big Bazaar.
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Transcript
Retail Visit Report: Big Bazaar Sarang Banubakde Individual
Assignment-RMS Page 2 Guided By : Prof. Bibhas Basumatray Submitted
by: Sarang Bnaubakde 1361 MBA3
Retail Visit Report: Big Bazaar Sarang Banubakde Individual
Assignment-RMS Page 3 Table Of Content Sr.No Topic Page No. 1.
Indian Retial Industry: An Overview 4 2. About Brand: Big Bazaar 5
3. Socio Economic Importance of Big bazaar, Mulund, Mumbai 6 4.
Retail Type and Product/Service Categories 8 5. Key Strategic
Drivers Of Hypermarkets 11 6. Modern Technology Deployed by Big
Bazaar 13 7. Marketing Mix Strategy by Big Bazaar 15 8. Refrences
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Retail Visit Report: Big Bazaar Sarang Banubakde Individual
Assignment-RMS Page 4 Indian Retail Industry: An Overview India,
one of the most diversified and second largest populated nation in
world, have biggest number of consumer in world except China, which
tops the list. With 1.25 billion of population, India is hot market
for retail industry and great deal to cater for. Today Indias total
retail industry stands for $450bn. A large young working population
with median age of 24 years, nuclear families in urban areas, along
with increasing working women population and emerging opportunities
in the services sector are going to be the key factors in the
growth of the organized Retail sector in India. The growth pattern
in organized retailing and in the consumption made by the Indian
population will follow a rising graph helping the newer businessmen
to enter the India Retail Industry. Indian retail is expected to
grow 25 per cent annually. Modern retail in India could be worth
US$ 175-200 billion by 2016. The Food Retail Industry in India
dominates the shopping basket. The Mobile phone Retail Industry in
India is already a US$ 16.7 billion business, growing at over 20
per cent per year. The future of the India Retail Industry looks
promising with the growing of the market, with the government
policies becoming more favorable and the emerging technologies
facilitating operations. According to the Global Retail Development
Index 2012, India ranks fifth among the top 30 emerging markets for
retail.
Retail Visit Report: Big Bazaar Sarang Banubakde Individual
Assignment-RMS Page 5 About Brand: Big Bazaar Launched in August
2001, Big Bazaar a child of Future group India, has now become the
iconic destination of modern retailing for all sections of Indian
consumers. Big Bazaar is credited with bringing organized mega
retailing to India. Brand Big Bazaar stands for delivering value
for money. Customer service and shopping comfort are at the core of
Big Bazaars philosophy. Innovation and initiative define its brand
character. It strives to reach out to its customers by imbibing the
local flavour and melting into the local geography. The first Big
Bazaar store, with an area of about 24,000 square feet, opened on
VIP Road, Kolkata in August 2001. This was followed by stores in
Hyderabad, Bangalore, Mumbai and Gurgaon. Their vision is to
deliver everything, everywhere, every time for every Indian
consumer in the most profitable manner. Brand Associ- ation for Big
Bazaar After 2011 Till 2011
Retail Visit Report: Big Bazaar Sarang Banubakde Individual
Assignment-RMS Page 6 Socio-Economic Importance of BigBazaar
Mulund, Mumbai Mulund is a suburb in north-east of Mumbai, India
about 32 kilometers from it. It is also has a railway station on
the Central Railway line of the Mumbai Suburban Railway It is
nestled alongside the foothills of the Sanjay Gandhi National Park
with easy access to the Eastern Express Highway and Navi Mumbai
through the Mulund-Airoli Bridge. Mulund is known as "Prince of
Suburbs" due to its trendy lifestyle. Mulund is one of the few
suburbs of Mumbai to boast of a vibrant night life. The centre of
it all lies within Nirmal Lifestyles mall, near Nahur. This is
where Big Bazaar is located. Hence the footfall in Big Bazaar
atNirmal lifestyle is much highest among all the retailers in
Mulund. It has a population of more than 9 lakh. A cosmopolitan mix
of Gujaratis, Maharashtrians , Tamils, Malayalis, Kannadigas,
Sindhis and Punjabis live in Mulund. Big bazaar has a great
opportunity to serve this cater the demand of this cosmopolitan
population. As Mulund is known for its trendy culture, Big bazaar
has adopted its store pattern here and hence serves all the
category possible. Not only Indian, but its the only place in
Mulund where you will get Chinese, Thai, Mexican, Italian and other
continental food ingredients. Mulund have large number of low
income group, who mostly stays in area like Gawanpada, Kindi Pada
etc. Also this it is very proximate to Thane and Bhandup where also
large number of low income group lives. Big bazaar Mulund have
staff of around 170, which include cashiers, attendees, helpers,
box boys, skilled labors for various sections, security guards and
back office management. When 50 of those employees were enquired,
32 of them were from Mulund and surrounding area and others were
from rest of the Mumbai. Total number of Employees in Big Bazaar
Mulund Employees from Mulund and surrounding suburbs (117)
Employees from Rest Mumbai(54) Picture below showing the
continental food rack in Big Bazzar
Retail Visit Report: Big Bazaar Sarang Banubakde Individual
Assignment-RMS Page 7 Thus Big Bazaar provide a good opportunity
for habitants of Mulund and surrounding suburbs. It is part of
Nirmal Lifestyle mall, which is a social hub for Mulundites. Nirmal
also have their residential apartments in same campus of mall.
There are total 150 plus flats and all are occupied. Hence it is
readily catering 150 households daily. Other than this, as big
bazzar is one stop shop for most of the household amenities, many
household gives it a first preference, over other hyper markets.
According to socio economic indicators of change in India, the per
capita consumption of food grains in KG has increased from 182 in
1991-92 to 225 in 2006-07. This figure clearly indicates the
increase in spending and consumption of food and related services
has grown in India. India has the largest growing middleclass. The
per capita income of middleclass in last two decade has increased
many folds. Big Bazaar with its offering of cheapest and best in
the range, targets directly to this ever increasing middleclass.
The following figure shows that among the most rising nation of the
world, India has the maximum of more tham 75% of its population as
middleclass. Hence with its more than 250 stores all around India,
Big Bazaar has emerged as one of the most important and a trend
setter player in organized retail sector in India, with high score
on socio-econominc quotient pertaining to its employment generation
and service offering to all social classes in India.
Retail Visit Report: Big Bazaar Sarang Banubakde Individual
Assignment-RMS Page 8 Retail Type and Product/Service Categories
Big Bazaar is credited with bringing organized mega retailing to
India. The project was conceived as a uniquely Indian hypermarket
in a format that combined the look, touch and feel of Indian
bazaars with the comfort, convenience and quality that modern
retailing brings. Attracting over 100 million customers every year,
it has democratized shopping in India and become synonymous with
great promotions that offer quality products at affordable prices.
On a typical weekend evening, a Big Bazaar store plays host to over
10,000 customers from moms along with their demanding kids to
senior citizens with their grand children in tow. Built on an
inclusive platform that welcomes consumers from all socio-economic
strata, a visit to Big Bazaar is not only about shopping but also
about pending quality time with the family. Format Products
Category Value Added Services ->Hypermarket. ->30,000 square
feet to 160,000 square feet ->Big Bazaar Mulund size 55,000
square feet ->Apparel -> General merchandise -> food &
beverages ->cosmetics -> Home needs & dcor (FMCG non
food) ->electronics -> Furniture ->communications
->books & entertainment ->consumer credit -> beauty
->salons -> gyms & health services -> travel
services
Retail Visit Report: Big Bazaar Sarang Banubakde Individual
Assignment-RMS Page 9 Other than those mentnioned above Big Bazaar
have several other brands like Pepsico, Philips, Britannia,
Tupperware, Wipro, Sula, Puma, Bombay dying, Parle Agro etc.
Following table shows the price comparison of private label Kroyo
of Big Bazaar v/s other local label of Croma, Zine and National
Brands like Samsung, LG, Bajaj and Morphy Richards
Retail Visit Report: Big Bazaar Sarang Banubakde Individual
Assignment-RMS Page 10 With a better understanding of consumer
behaviour across various cultures and classes, Big Bazaar has put
together a stunning range of over 160,000 SKUs. Private labels of
Big Bazaar are among the largest apparel and fashion brands in the
country. These include, DJ&C mens casual wear range and
Knighthood mens formal wear range; Pink & Blue are exclusive
garments designed for modern kids; Srishti, a label of ethnic wear
for women; Haute N Spicy, fashionable western wear for teenage
girls; Dreamline, a label that caters to an entire range of home
linen, utensils and crockery and Dtachi, a luggage label that
offers outstanding value for money. Big Bazaar has also tied up
with a host of well-know brands which offer exclusive lines created
especially for the store. These include Levis, Lee Cooper, Wrangler
and Disney. As a hypermarket, Big bazaar have everything to offer.
It has adopted well according to indian customer past behaviour
pattern, which would help them to increse the footfall and repeate
purchase. Thus big bazaar has left an impression in Indian
customers.
Retail Visit Report: Big Bazaar Sarang Banubakde Individual
Assignment-RMS Page 11 Key Strategic Drivers Of Hypermarkets There
has been much consolidation in the hypermarket industry in recent
years. The surviving players have realized that they cannot be all
things to all people. Instead, they are attempting to do the things
they do best better than their competition. Nearly every survey
consistently indicates what today's customers are looking for in
their shopping experience: Sell what they need and have it in stock
when they want it. Make it easy for them to shop and find what they
are looking for. Provide all the information they need in order to
quickly decide what to buy. Have friendly helpful people available
to make the shopping experience a pleasant one. Controlling
operational costs is certainly one of the biggest challenges that
any retailer faces. Since hypermarkets typically run on extremely
low profit margins, the need for a lean and efficient operation is
critical. Labor costs are the single greatest controllable expense.
Some hypermarket operators have a tendency to cut labor during
tough times. If labor cost reduction is not managed properly,
customer service and store conditions may suffer. This, of course,
results in lost customers and sales. Retailers that do not properly
budget for necessary training programs will most likely see both
increased employee turnover, which becomes very costly over time,
as well as reduced customer service, due to a lack of training.
Some key drivers in hypermarket industry that Big Bazaar could
implement are: 1. Delivering maximum value: Successful retailers
are developing strategies that offer customers greater value over
competitors and are sustaining them over time. To do so, they are
focusing their energies on creating centers of excellence, such as
connecting with their customers, being a leader in terms of the
merchandise and assortment that they provide, and having excellent
operations in place. Although retailers that provide value dont
always do so at a low price, extreme value retailers are expected
to continue to take share of wallet from the retailers that have
traditionally appealed to lower income, treasure hunting, and
otherwise value conscious consumers. 2. Being Innovative: Retailers
are more and more experimenting with their store formats.
Additionally, they are effectively designing and managing the
various strategic levels to enhance the overall customer shopping
experience. The problem with being known as an innovative retailer
is that it can only remain innovative as long as its customers
believe the innovations are fresh and exciting. Department stores
were once thought of as being an innovative retail format. Thus,
innovative retailers must continuously implement new ideas or else
their customers will begin to view them as being old hat.
Retail Visit Report: Big Bazaar Sarang Banubakde Individual
Assignment-RMS Page 12 3. Cost Control : Successful retailers,
particularly those competing in the low price segment and many in
The Big Middle, are efficient and effective in integrating their
suppliers, manufacturers, warehouses, stores, and transportation
intermediaries into a seamless value chain, in order to minimize
system-wide costs, while satisfying the service levels required by
its customers. They are seeking out and using innovative technology
throughout their supply chains, to reduce costs and provide value
for their customers. 4. Credit Facility : The Indian consumers are
gradually accepting plastic money. Indians spend just 1% of their
total purchases through credit cards, while the Koreans make one
fifth of their total purchases through credit cards. The world
average hovers around 9%. From a mere 3.2 mn in 2000, the number of
credit cards has grown to 22.6 mn in 2012. This increase boosts
retail spend, as it enables impulse buying and big ticket
purchases. In a decade there has been almost 100 % gowth in number
of credit card users. Big bazaar has its tie up with SBI, ICICI,
IndusInd bank where it offers 5% cash back if purchased from these
credit cards. 0 5 10 15 20 25 30 2003-04 2004-05 2007-08 2012 No.
of credit Card holders in India (in millions) No. of credit Card
holders in India (in millions)
Retail Visit Report: Big Bazaar Sarang Banubakde Individual
Assignment-RMS Page 13 Modern Technology Deployed by Big Bazaar
Modern technology has enabled hypermarkets to serve better with
accuracy, unambiguity and in smart way. Smarter software is the
muscle behind IT solutions for Big Bazaar. Together with
comprehensive technology and cost-effective methodologies, help Big
Bazaar thrive in the fast- paced global economy and help them to:
Deliver a smarter shopping experience Build smarter operations
Create smarter merchandising and supply networks Various
technologies implemented at Big Bazaar : Information technology
Infrastructure Library describes procedures, tasks and checklists
that are not organization-specific, used by an organization for
establishing a minimum level of competency. It allows the Big
Bazaar to establish a baseline from which it can plan, implement,
and measure. It is used to demonstrate compliance and to measure
improvement in IT Services. SOA is system oriented architecture
which help to encourages maximum reuse of business logic and
services across retail processes.supports closer integration with
retail trading partners and fosters more responsive, optimized
operations Send exactly the right merchandise to the right store.
Track the status of all merchandise through shipping, receiving,
and distribution.Allocate items directly to your stores using a
fully integrated Allocation and Replenishment module to balance
both merchandise plans and store-level sales activity.
Retail Visit Report: Big Bazaar Sarang Banubakde Individual
Assignment-RMS Page 14 With implementation of all these modern
technologies it led to workload management and prioritization hence
optimized performance across all business processes. With grid
computing and SAS applications, Business Analytics are done faster,
better and cheaper. It distributes computing- intensive SAS
application across hardware resources across Big Bazaar. Grid
computing provides parallelization of Business Analytics job for
improved performance. They were able to reduce a record 150% on the
cash out time in about 40 stores with help of technology in cash
counter management and has been successively rolled out the similar
systems in the all the 132 Big Bazaars in the country. To manage
the high volume of footfalls, in big format outlets, 26 cash
counters with touch screens and multiple scanners had been
installed. Apart from this, Big Bazaar has also implemented RFID.
All pallets and boxes are having RFID. It helps checking material
has gone missing during the transport. Auto checking of correct
boxes into correct vehicles with the help of RFID is done. It alarm
users if wrong loading is done. It helps identification of product
movement. Identifies which products moves faster on Friday or
Wednesday Helps in calculating stocks . There has been 16%
reduction in product stock outs since adoption of RFID. It has been
found that RFID equipped shops are 63% more efficient in
replenishing out-of-stock items. At Big Bazaar Out-of-stock items
are replenished 3 times faster with RFID and cost of excess
inventory was reduced by more than 10%. Picture: The cash out time
was reduced by record 150% in about 40 stores with help of
technology and IT implementation in cash counter management.
Retail Visit Report: Big Bazaar Sarang Banubakde Individual
Assignment-RMS Page 15 Marketing Mix Strategy by Big Bazaar Big
Bazaar competes in highly competitive retail industry, where there
is large market share of mom & pop stores. The neighborhood
grocery stores are still a first preference by an average Indian
middle class customer. Although per capita income of middle class
in India is increasing and middle class contributes most to the
national income, but their spending habits are still weak and
mostly have traditional approach while shopping. In Mulund, Big
Bazaar have a tough competition with D-mart which is also in
vicinity of Big Bazaar and hence there is always a race to grab a
customer. In such situations marketing efforts would help to
increase awareness and create interest in customers with help of
promotions which would compel them to step into store. Big bazaar
right from its establishment has adopted various marketing tactics.
They have launched various schemes to lure customers. By using IMC
tools, they reached every household posibble where they have
presence. From purchasing the whole fromt page of time of india to
distributing flyers inside newspaper. From TVCs to radio
commercials. With advent of social media Big Bazaar is using this
tool effectively. Following table shows various IMC tools used by
Big Bazaar. TVCs, cards, Newspapers, Social media Outdoor Media
Flyers & Radio
Retail Visit Report: Big Bazaar Sarang Banubakde Individual
Assignment-RMS Page 16 According to customer behavior and past
purchases analysis, it is observed that when customer turns right,
he tends to spend more. Big bazaar Mulund, have a compulsory right
turn. Soon after entrance there is fresh vegetables and fruits
shelves. As we move future right there are some nested stores. A
chemist, Pharma Cross, Hair Expresso a unisex hair saloon, mini
Vodafone store and a Kodak outlet. There is also a special counter
for loose Girnar tea, where one can have tea of his own combination
(leafy, granules, dust). Just infront of all these nested stores
there is home dcor section and beside it apparels, luggage and
footwear. There were in house promoters for Prestige Induction
cooker, Horlicks oats and Colgate. Big Bazaar, Mulund charges these
promoter on per day basis. At the extreme left there were
electronic goods like microwave ovens, grillers, food processors.
The local brands like Koryo were kept at left where national brand
like LG was at right. Behind this there was kitchen ware and
cutlery section. Adjacent to it was live bakery and meat counter.
To the right of kitchen section there was frozen food section and
then from right to extreme right there was full range of FMCG food
& non food & beverages. At the end of FMCG section, there
begins apparel section. Lighting in this section was completely
different from rest store. All lights were of yellow shades. The
whole store has a grid format. This whole arrangement was done
keeping in mind customer behavior. There were several indoor
promotion by Big Bazaar. Following were some of the indoor
promotions. Indoor promotions at Big Bazaar
Retail Visit Report: Big Bazaar Sarang Banubakde Individual
Assignment-RMS Page 17 The end caps were mostly occupied by local
labels like Kamani oils, Saini fresh, Balaji Wafers, etc. At the
cash counter there were many small racks which provokes customer to
have impulse buying. Most of these products were those which
genrally consumed due to indulgence, like chocolates, magazines,
DVDs etc. Following picture shows cash counter and end cap of
Nilons pickle. Big Bazaar has been credited with some of the
biggest consumer campaigns in the history of Indian retail. In
celebration of Republic Day, Big Bazaar created a three-day
shopping bonanza called Sabse Saste Teen Din. This has now become a
national event that attracts millions of customers eager to benefit
from the once-in-a year smart deals. In January 2008, the three-day
event generated sales worth over Rs. 240 crore (US$ 60 million) in
80 Big Bazaar stores. Wednesday Bazaar is the Hafte ka Sabse Sasta
Din. It was initially created with the intent of decongesting
weekends and driving footfalls on weekdays. As it transpired, most
Big Bazaar stores now attract as many customers on Wednesdays as
they do on weekends. In-store communications in Big Bazaar are
unique and rather novel. To ensure that no one misses out on an
opportunity to gain from special offers, service boys ferry around
a trolley with the product inside, announcing the scheme. Not only
is this entertaining it also helps customers pick up the product
from the trolley instead of walking up to the rack where it is on
display. To make sure that non-English speaking customers dont feel
alienated the communication is also conducted in the local
language. The communication is always unambiguous and direct. Big
Bazaar being first one in its category to come in market, it enjoys
the status of being synonymous with most of the other
hypermarket.
Retail Visit Report: Big Bazaar Sarang Banubakde Individual
Assignment-RMS Page 18 References
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