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STRATEGY FOR BIGBAZAAR

 Submitted by-
 Deepak Kumar
 Deepali Mathur
 Honey Gupta
 Lalit Choudhary
 Sayed Fazal Husain
 Upendra Kumar
 Vindya Malviya

AGENDA(BEST PRICE&BIG BAZAAR)
 Corporate profile
 Swot analysis
 Typical quotes
 Market penetration strategy
 Product/services strategy
 Existing supply chain
 Distribution strategy
 Pricing strategy
 Promotion strategy
 Pest analysis

AA DEKHE JARA KISME KITNA HAI DUM
WAL-MART PROFILE(BEST PRICE)
 Wal-Mart Stores is an American public corporation
 Founded by - Sam Walton in 1962
 Slogan - "Save Money Live Better,”
 Head Quarter- Bentonville, Benton County, United
 Vision- to ordinary folk that the chance to buy the same
thing as rich people
SWOT ANALYSIS OF WAL-MART

Strengths
 Weakness

 It has a reputation for value  Weak in some areas due to


for money, convenience the huge span of control.
and a wide range of  Lack of focus
products all in one store.
 Presence in few country
 The company has a core

competence involving its
use of information
technology to support its
international logistics
system.

SWOT CONT…
Opportunity Threat

 

 Expanding consumer
markets.  Being a global retailer
 To take over, merge with, means that you are
exposed to political
or form strategic alliances
problems in the countries
with other global
that you operate in.
retailers, focusing on
specific markets such as  Critical consumer behavior.
Europe.  Huge competition with
 New locations and store Indian retailer.
types offer Wal-Mart 
opportunities to exploit
market development.

BIG BAZAAR PROFILE

 Type-hyper market
 India’s first hyper market retail market
 Vision-Everything ,Everywhere, Every time for every Indian
consumer in the most profitable manner
 Industry-retail
 Founded by - Kishore Biyani in 2001.
 Headquarter - Jogeshwari, Mumbai, India.
 Parent group - Future Group
 Website - www.bigbazaar.com
 Tag line- “Isse sasta aur accha
 kahin nahin”

CORE COMPETENCY OF BIG BAZAR

 A choice of more than 20000 products


 Delivery across more than 1500 cities covering around
16000 pin codes
 A dedicated customer care helpline for any queries
 Special emphasis on apparels and life style
products(27% Vs 17%)
 Fast delivery-tie up with world leader logistic &
transportation services
SWOT ANALYSIS OF BIG BAZAAR

Strengths
 Weakness

 High brand equity  Unable to meet store


 opening targets
 State of art infrastructure 
  Falling revenues/sq.ft.
 Pop promotion 
  General perception
 Variety of stuff under 
single roof

SWOT Cont…..

Opportunity Threat

 Organized retail (4.16%)  Competitors domestic


 Evolving consumer and foreign
preferences  Government policies
 In Store Experience  Unorganized retail
Improvements  Economic condition
 New formats and 
consumption space
 Looking at expansion

PEST ANALYSIS

POLOTICAL
 ECONOMICAL

 Government is stable  Economy is


 Government policy growing(7.2%)
towards investment is  Recovery from recession
liberal(49%)  Monetary policy
 Labor law 
 Restriction for MNC’s

CONTD….

ENVIRONMENT
 TECHNOLOGY

 According to mckinsey  Rapid expansion of IT


report Indian sector
consumer goods  New trends are coming
market is expected to 
reach $400 bl. By
2010

TYPICAL QUOTES

 "He doesn't realize it, but I know everything about


him," says Indian retail magnate Kishore Biyani




 Will Wal-Mart Succeed in India? Perhaps...But
It Won't Be Easy

PRODUCT/SERVICE STRATEGY

 Create positioning for FAMILY


 Keep more branded products
 More focus towards FMCG products
 Penetrate the RURAL market with FMCG products
 Divide store into two different category, turn small
competitors into customers
 Keep north India girls for sales forces
 India’s first community connection outlet
 at maleshwaram in Bangalore



CONTD……

 Understand variation of how frequently they go for


shop which types of products they purchase
frequently
 Collaboration with shopper stop to tap higher
segment customers
 As big bazaar focusing on cultural aspects (ex- at the
season of festival they keep products according to
festival) so, keep focusing on this services.
 Full line of festival materials

PRICING STRATEGY

 Existing pricing strategy is right


 Apply market penetration strategy
 Promotional pricing-
 Low interest financing
 Psychological pricing
 Special event pricing
 Time pricing
 Bundling
CUSTOMER SERVICE STRATEGY

 Future card program


 Billing system improvement
 Huge variety of products
 Future money provide financing system
 Night shopping

PROMOTION STRATEGY

 Wednesday bazaar scheme


 Festive season shopping
 Partnership with BIG fix and BIG FM 92.7
 Road show in residential colony
 Outdoor campaign(hoarding, banner)
MALL LOCATION AND DESIGN

 Existing location strategy is right


 Play music according to region
 Keep focus where working people live and keep
walking


DISTRIBUTION STRATEGY

 Contract with small vendors


 Do not change many vendors
 Currently company is going to finance$830 million
to its vendors

WAL-MART SUPPLY CHAIN

Existing Distribution
channel

Cross docking
distribution
WAL-MART SUPPLY CHAIN

 EXISTING  PROBLEM IN INDIA

 Transportation of  Starts supply chain


goods from from scratch
distribution centre  Transportation,
to retailers is 2 days warehousing and
 More than 4000 own distribution
trucks infrastructure
 Most trained drivers  Cold chain
 Cross docking distribution
distribution  Real estate
Himalaya ahead for Wal-Mart

 India has 3rd largest network in terms of (roads) with


3,38344(k.m).
 India has total 65,569 k.m of National Highways.
 State Highways total length only 137771 9(k.m)
 Largest National highway no-7(2369k.m)
 Reality check
 According to Goldman Sachs, India need to spend $1.7 trillion,
but NHAI planned to expand $70 billion over next three year.
 Only 2500 (k.m)of national Highway are of international
Standard.
 National Highway represent only 20% of total network length.
 Only 16%Of India’s road are 4 lane or above.
 Approx.quarter of India 'Highway are Congested.
C0nt..

 U.S has the largest road network in the World with 6,430,366
(k.m)
 Number of Trucks U.S have 68,06,630.(6 tier or more)
 In some cases Bus Speed (30-40 k.m.ph) reduced to (19-25 k.m.
ph)
 Goods transport from Gurgaon to the port of in Mumbai can take
upto 10 days.
 The main roads are under huge pressure and required
modernization.
 India has only 1% of World Vehicles.
 In India 1300 truck per million .


CHALLENGES OF WAL-MART(opportunity
for big bazaar)
 How it perceived by Indian consumers
 According to Wharton marketing faculty- customer
perception (In U.S consumer understands big store
means low price and small store means high prices,
Reversely in India)
 India has 6000 castes and sub-castes in 28 states with
their own taste, with 23 languages and also it keep
changing.
 Typical Indian consumer does not travel more than 6-
7km for its shopping
 Opening new stores in big cities

MARKET PENETRATION STRATEGY
 Existing targeted segment is middle class
 More people are coming in middle class
 Emerging market Jharkhand & Orissa
 No. Of BIG BAZAR in Jharkhand & Orissa

STATE PER CAPITA(in Rs.) GROWTH RATE(%)

CHANDIGRAH 99262 6.3

GOA 82903 6
DELHI 49172 6.9
JHARKHAND 14990 16.6
ORISSA 14795 11.5
Focus to capture Nav Bharat Customer
(Rural Market)
 Why focus on Rural customer?
 73% of population live in 6,00000 villages out of Total
population 106 billion.
 Minimum support price.
 NREGS -100 days employment.
 Income from farm products is Tax free.
 Purchasing power in FMCG-$17 billion.
 In Durable $2.5 billion.
 How Big Bazaar can tap this?
 Core Competency in FMCG Product(32-33% in total sale).
 Apparel and Durable.


Cont….

 Why FMCG in Rural Market?


 In financial year 2009-(April –March ) FMCG Rural Volume
Growth is estimated to be 5 % to 12 % higher than urban
market.
 Big Bazaar can have small Cinthol ,Godrej 50 gm packs price
Rs.4.
 They can focus on Customization by keeping durable products
like
 Philip India’s VARDAAN T.V
 Philips POWER RADIO .
 LG Electronics SAMPOORNA T.V

Collaboration with Shoppers Stop

 Why Collaboration with Shoppers stop?


 Shoppers stop presence with 27 stores in 12 cities
 Their focus on Luxury market.
 They keep National as well as International Brands like
Pepe, Gini, Carbon, Austin Reed (London)
 Connection with Youth
 Why:-India is very Young India In percentage Age group
 Source:-
54 Below 24
 Census of India . year
35 0-14 year
19 15-24 year
Cont…

 The Changing Spends on Consumption


 items 2005-06 2006-07 2007-08 2008-09
 Beverage 1.78 1.89 1.92 2.85
 Clothing 5.17 5.48 5.95 6.02
&Footwea 3.43
Appliance 3.86 4.02 4.86

rFood 35.38 34.28 33.21 32.89


 Source:-CMIE
 Introduced Café coffee day

 Provide conducive environment.

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