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On the occasion of completion of ten (10) years in the Indian retail industry (in
2011) Big Bazaar came up with a new logo for the company with a tag line that
says: 'Naye India Ka Bazaar' (Market for New India). This replaces the earlier tag
line: 'Isse Sasta Aur accha Kahin Nahin' (Nothing is Cheaper and good than Here).
Small Change for Big Bazaar
Posted November 28th, 2011 by jayanth
Organised retail is a very young story in India and Kishore Biyani has become one
of its biggest poster boys, introducing various concepts and formats including
Central, Pantaloons, Food Bazaar and Big Bazaar under the Future group banner.
Big Bazaar has 150+ stores across India, selling almost every household need.
Known for its mass products and prices that attract massive crowds (especially
on offer days), Big Bazaar refreshes itself on completing 10 years. And, perhaps
getting ready for the FDI coming soon!
Official speak : The new logo stands for a dynamic forward movement and a more
modern outlook designed for Indian family. With the new change we are moving
on to a more emotional positioning, The new logo and tagline are contemporary
and reflect changing India and ethos of shoppers here, says Director, Future
Group Strategy and Customer, Vibha Rishi
The old logo designed by Idiom (agency invested by Kishore Biyani) did not need
any uplift. Not because it was great, but it was as generic as it gets. It was
something you always notice but never take note of. The superscript Sone ki
Chidiya, borrowed from the groups identity, was the only thing of beauty and
meaning in it. But the most important part was its promise of low prices and good
quality; an extremely tangible benefit when you are targeting the real Indian
middle class that will never shell out a single extra rupee.
The new logo designed by the same agency has minor, cosmetic visual changes.
The real change is in its positioning, though. Naye India ka bazaar, literally
means a market for modern India. So a real, tangible benefit (cost & quality)
makes an exit and an emotional tug comes in. Will an emotional tug work in a
category where every rupee is made to work hard?
Branding theory says creating an emotional connect works. Yet, in this category,
these are uncharted waters and the emotional line appears a gamble Big Bazaar is
playing for.
Overall
70%
30%
40% on execution
on
on
strategy
creativity
NEW DELHI: Kishore Biyani-led Big Bazar and mobile payments platform
MobiKwik has inked an exclusive tie-up to allow the retail firm's customers to pay
for purchases using mobile wallet facility.
The tie-up will be extended to other Future Group entities like Central, Brand
Factory, Home Town and e-Zone in the coming quarter.
"MobiKwik wallet users can pay through their mobile at any Big Bazaar payment
counter by sharing their registered MobiKwik mobile number and an one-timepassword (OTP) for verification of the transaction," MobiKwik said in a statement.
This cashless and card-less shopping experience is now live across over 240 Big
Bazaar stores across India, it added.
"In the coming quarter, MobiKwik also plans to extend this partnership to other
offline stores under the Future Group umbrella that includes Central, Brand
Factory, HomeTown, e-Zone, among others and is expected to total close to 150
million transactions annually," it said.
The tie-up is a part of MobiKwik's offline retail expansion strategy, under which
the company aims to tie up with 1.5 lakh offline stores and facilitate payments for
100 million users by 2015-2016.
MobiKwik's partners include names like Cafe Coffee Day, WHSmith, PVR,
Domino's, Pizza Hut, Myntra, Jabong, MakeMyTrip, Yatra, BookMyShow, JustEat,
eBay, ShopClues and Pepperfry.
"The MobiKwik Wallet integration will bring us closer to millions of consumers
and is an integral part of our multi-channel payments strategy. The operational
efficiencies will create significant value for our customers," Future Group Founder
and CEO Kishore Biyani said.
MobiKwik claims to have over 17 million mobile wallet users and 50,000
merchants on board.
"With the rapid adoption of smartphones, mobile internet, and e-commerce
services by users in India, mobile wallets are now ready more than ever before to
disrupt how payments are done in the country," MobiKwik founder and CEO Bipin
Preet Singh said.
Kishore Biyani's Big Bazaar to launch app next month, to take on e-tailers
and offer instant credits
Rasul Bailay & Chaitali Chakravarty, ET Bureau May 7, 2015, 07.00AM IST
NEW DELHI: Kishore Biyani is taking the discount battle to the enemy. Big
Bazaar will go live next month with an app to combat the rapid adoption of
ecommerce in India to try and beat online retailers at a price-cutting strategy that
brick-and-mortar stores have been struggling to come to terms with.
"We are launching a price-match offer where if you shop from us and anybody else
is selling cheaper than us at that moment, we will automatically give credits in
your account anything online or offline," Biyani said in an interview. Apart
from this, Biyani's Future Group is also seeking to harness its presence on the
ground to complement its push to counter online retail.
In the past two years, Flipkart, Amazon, Snapdeal and others have been offering
lower prices to lure consumers, hurting organised retailers, already feeling the
squeeze of an economic slowdown. Flush with funding, ecommerce firms have the
kind of cash needed to persist with this strategy. E-tailers may have shelled out
discounts worth hundreds of millions of dollars around Diwali alone, according to
the trade.
Amazon has just launched a Summer Sale, offering "deals that'll make you dance".
Biyani , who's just struck a deal to take over Bharti Retail, said he doesn't worry
too much about ecommerce, because it won't be able to match real-world stores in
terms of overall volume.
"Who is afraid of ecommerce?" Biyani asked. "Even if you open 10 sites in 10
years, it will be 10% (of the total organised retail market). Secondly, worldwide,
multichannel is the way. Traditional retailers doing multichannel is a bigger thing
than pure online in any which way."
Big Bazaar, a hypermarket that sell brands across categories from smartphones,
electronics and furniture to grocery and general merchandise, is testing the app that
will let consumers compare prices offered by online and other offline retailers.
Customers will have a week from the date of purchase to make the price
comparison.
Apart from this, Future will soon conduct an omni-channel pilot programme in
which its Big Bazaar and Food Bazaar stores will deliver goods to customers in
Mumbai an hour after they place their orders.
The price comparison app is currently being tested by Future Group employees at
the Food Bazaar store in Vikhroli in Mumbai.
The so-called FutureOfMarketing initiative "will give customers the confidence to
shop at Big Bazaar without worrying if any competition is advertising products
cheaper than us," said an internal e-mail sent to Future Group employees.
The app, which will be available for public use in Mumbai in the coming weeks,
will go nationwide in the coming months. Future's acquisition of Bharti Retail in
an all stock deal valued the latter at Rs 500 crore.
Big Bazaar on an expansion spree
PTI Jun 30, 2008, 02.57pm IST
NEW DELHI: Country's leading retail chain Future Group is going for a major
expansion of its Big Bazaar chain of outlets, with the company planning to take the
total number of stores to 150 by June 2009.
Big Bazaar presently has 92 outlets across the country and has plans to add over 45
stores by the end of June 2009, Future Group Director Rakesh Biyani said.
Besides, the company is also exploring for a 50:50 joint venture with International
Group for its kids wear segment.
"We are exploring various proposals and options to maximise our efficiency and
operations," he said on the sidelines of the Pure & Play Retail Summit here.When
asked about the media reports regarding Future Group plans' to split the company
into two specialised segment consisting of front-end and back-end retail, Biyani
refused to comment on the issue.
"The company cannot comment on speculated stories run by sources. There is no
official announcement or decision in this regards," Biyani said.He added that the
company's expansion will be fully funded, with its own capital.
"The funding plans is being done by preferential allotment and we have already
decided about the amount," he said. Future Group is also starting its own ethnic
women's wear stores and the first one will start by August this year.
"A total ethnic in the women' wear category will come up in various cities and the
stores will be on 15,000-16,000 sq feet," Biyani added that the company is
planning to grow by 15-20 per cent in apparel wear and double its sales of ethnic
women wear in the next few years. The company is also looking for an increase of
50-55 per cent in its total sales over the next five years.
Big Bazaar tries to move the social needle with this campaign the father isn't
dressed soberly and settling in for an evening at home. He saunters past his stunned
son with the line, "Kyun?Valentine's Day sirf tumhara hai kya?"
Sonal Dabral, chairman and chief creative officer, DDB Mudra, says this change in
mindset came about for two reasons. First, consumers had evolved and Big Bazaar
itself had grown from a market with great deals into newer more evolved products
and categories. "From a discounted hypermarket to a value departmental store,
these changes warranted a different discourse for the brand," he adds.
According to marketers and ad execs, Big Bazaar has a steep climb ahead. "This
brand could have been delivered better," says Rajesh Mehta, former marketing
chief of Western Union who runs Agora Consultancy.
"The brand and its products should have been more visible throughout the
campaign." After spending over a decade positioned as a price warrior, it won't be
easy for Big Bazaar to make a move up the value chain, he adds. "Success will
depend on how categories are chosen and how campaigns are deployed.
The brand has to attract customers who have stayed away." Manish Bhat, founderdirector, Scarecrow says that Big Bazaar is trying too hard, given it is a brand that
isn't cool. "It is a brand which is positioned sharply as a commodity retailer and its
moves to scale the value chain remain a lip service so far. Upscaling is a big
challenge."
The problem, he contends, is that it isn't really identified with any of the
merchandise it wants to sell and will struggle to be noticed. "They need a complete
makeover, I am not sure this campaign will be enough," he adds. This campaign
however works because it tries to shift Big Bazaar's positioning light heartedly
rather than belabour the point about moving up the value chain. The ads are sharp
and try very hard to look hip.
The campaign will have ads showing men lending a helping hand at home, a style
makeover and healthier living all appealing to younger, more aware Indian
consumers. This is plenty for a brand that has hitherto appealed to an audience
more keen on finding the cheapest staples. "Our customers experience our brand
almost every month. It is a fresh new way to connect and this campaign can change
the way retailers, brands and customers interact with each other," says Biyani.
Big Bazaar wants to build on this ongoing social change. "So whether it is products
for home, fashion, food or beauty, each have been carefully selected by our
merchandising teams and form a part of a storyline that captures the social change
that is evident in the country," he adds. Despite this bombast, he is holding on to
the vestiges of his low-cost heritage the linen shirts are priced at Rs 799, half or
less than competing brands outside.
Big Bazaar, Food Bazaar boycott Kelloggs over margin row
Kala Vijayraghavan & Ratna Bhushan, ET Bureau Nov 12, 2009, 12.28am IST
With the cereal maker refusing to bulge, Future Group is now looking at pushing
its own labels Tasty Treat range of cereals in place of Kellogg's, he said.
A person close to negotiations between the two parties, however, said the talks
were still on and that Future Group was yet to throw out the brand that commands
more than 70% share in the country's breakfast cereal market estimated at close to
Rs 400 crore. Future Group will boycott Kellogg's only if the talks fail, he said.
Defending the demand for higher margins, he said the cost of holding Kellogg's
stocks was high because of its large-sized packages take up significant shelf space
in stores. Also, only a few of the breakfast cereal maker's several variants do well,
he added.
This is the latest development in a series of conflicts between modern retailers and
fast-moving consumer goods (FMCG) companies. While retailers are demanding
higher margins, consumer product firms accuse the retail industry of pushing its
own labels at the expense of established brands.
In retaliation, manufacturers are working closely with the traditional trade that is
contributing higher growth in recent months, according to industry estimates.
"Companies are passing on a lot of margins to the traditional formats through
discounts and promotions, which may have upset modern retailers," said an analyst
tracking the retail sector in a leading foreign brokerage house.
Like other FMCG companies witnessing healthy growth in smaller towns and
cities, Kellogg too is bullish on tier-two and tier-three towns and cities riding on
localised variants and low-priced packs, especially the Rs 10-packs that account
for more than 10% of its overall volumes.
The cereal maker is planning to scale up its distribution footprint to reach about
2,000 towns and cities in the next couple of years, up from around 1,400 now. The
company recently rolled out a new breakfast cereal for kids, Honey Loops,
nationally.
The Indian subsidiary of the $13-billion, Michigan, US-based Kellogg Company, is
among the fastest growing units for the company worldwide, although on a smaller
base.
Future Group had last year boycotted Cadbury India on the premise that the
chocolates maker did not cut uniform deals with all modern retailers and gave
better deals to international retailers who may have larger stakes in global markets.
The issue was sorted out later.
The country's largest retailer is yet again showing off its growing clout. Now it's
playing a cereal killer.
Big Bazaar goes for new logo,tag line on 10th yr of operations
PTI Nov 17, 2011, 09.06pm IST
NEW DELHI: After completing ten years of existence, India leading retail chain
Big Bazaar is going for an image makeover with a new logo and a tag line that
targets modern Indian consumers.
"The logo and tag line will become a part of all our communication. With the new
change we are moving on to a more emotional positioning," Future Group Strategy
and Customer Director Vibha Rishi told PTI.
As part of the exercise, the retailer will have a tagline 'Naye India Ka Bazaar',
replacing the earlier 'Isse Sasta Aur Accha Kahin Nahin'.
She said the new logo and tagline are contemporary and reflect changing India and
ethos of shoppers here.
A television, print and social media communication initiative is also being
launched to mark this change.
The new logo has been developed by Bangalore-based design house Idiom and the
media campaign has been developed by Mudra Communication.
At present 151 Big Bazaar stores are operational in 90 cities across the country.
"Big Bazaar provides a platform for over 15,000 small, medium and large
producers and manufacturers to sell their products to Indian consumers," a
company statement added.
BigBazaar Direct
Clearly it is a great business for Big Bazaar because they are targeting 1 lac
franchisees across India and are asking for an investment of Rs 3 lacs (Rs 1 lac as
Assuming the franchisee gets 10-12% margins on the goods sold which will give
Big Bazaar Direct also margins of 13-15% [25%-10%=15%]
*Rationale: Big Bazaar in its retail format has EBITDA margins of 8-9%, so i am
assuming higher margins of 13-15% for Big Bazaar Direct since real estate costs
will be significantly lower but employee costs may increase as they will have more
delivery men.
*Source
Now going back to calculations:
Monthly average value of goods sold per franchisee = Rs 3-4.5 lacs
Annually each franchisee could potentially sell goods worth Rs 36-54 lacs.
Margins of 10-12%= Rs30,000-54,000/- per month
So, a franchisee can make an income of Rs 30,000-50,000 per month or Rs3.66
lacs
per
annum!
So basically on an investment of Rs2 lacs (since Rs 1 lac is deposit), you can start
making Rs3.6 lacs annually.
I believe Big Bazaar Direct will have a strong focus on Tier II/III cities where
internet penetration and credit-card penetration is much lower and therefore a
direct door-to-door selling by a brand could be hugely successful.
Since each franchisee is going to sell Rs3-4.5 lacs of goods per month. Imagine
what 1 lac franchisees would do!
YesRs3,000-4,500 crores per month or Rs36,000-54,000 crores per year~ US$510
billion!!
The fact is that this is not additional/incremental consumption in the economyso
who is going to LOSE!
I believe this business model may turn out to be one of the major shifts in a
massively fragmented retail market where the mom-and-pop/kirana stores are
going to lose market share to an organised Big Bazaar Direct scheme. Therefore I
feel it would be BEST if local kirana store owners themselves become Big Bazaar
These stores, six of which have opened in cities like Chennai, Hyderabad and
Delhi, are in the pilot stage currently but will eventually become a pan-India
model, said an official from the group. The new model of Big Bazaar stores will
have an upgraded sense of space, furniture, fixture along with an increased focus
on fresh farm produce, fruits and vegetables, bakery products and live kitchen.
These changes are also being made to Food Bazaar, the food retail outlet from the
Future
Group.
"The Big Bazaar brand is a decade old and in this time our consumers have
undergone changes. The next version of the brand is going to cater to the new
aspirations of the Indian consumer. We are assessing how far this is going to work
with our customer base. We will analyze every catchment area before determining
the profile of each of the stores going forward," said Damodar Mall, president,
integrated food strategy, Future Group. This is an attempt to make the brand more
inclusive and attract a wider spectrum of customers, Mall added.
"Big Bazaar being the first modern retailer needs to reinvent itself as the newer
players like Tata's Star Bazaar or Aditya Birla's More have learned from the
experiences of the first mover. But the store has a certain positioning which caters
to the middle end of the market which will not change as it is the biggest revenue
generator for the retailer," said Arvind Singhal, chairman, Technopak Advisors, a
retail
consultancy.
Besides having a fuller range in the food category, another big focus area for Big
Bazaar will be to expand its line of international brands that it stocks currently in
its stores. At present, typically 10-15% of food products are from imported
international brands but now the retailer is looking to take it up to as much as 30%.
Mall said the retailer was talking to a number of importers to strengthen its
international
line
of
products
at
Big
Bazaar.
The Future group recently launched a gourmet food retail concept, Foodhall, to
cater to the high-end of the consumer chain. Mall said segmentation is the way
ahead for the retailer and Foodhall will target the mature consumer with its mix of
products.
Big Bazaar currently has around 150 stores while there are 35 stand alone Food
Bazaar stores across the country.