RETAIL INDUSTRY

MARKETING ASSIGNMENT ON

RETAIL INDUSTRY (BIG BAZAAR)

Name- RAHUL CHANDRA Enrollment no. - 11BSP1 840 Section- A

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INTRODUCTION ........................................................................................................................................ 3 FORMAT DEFINITION .............................................................................................................................. 3 Target Audience ........................................................................................................................................ 4 Major Competitor in India ............................................................................................................................ 4 MARKETING MIX ...................................................................................................................................... 4 7P Analysis of Big Bazaar ........................................................................................................................ 4 MARKETING STRATEGY ......................................................................................................................... 7 BRANDING ................................................................................................................................................. 7 Advantages of branding ............................................................................................................................ 7 GROUP OF COMPANIES ........................................................................................................................... 9 SWOT ANALYSIS .................................................................................................................................... 10 STRENGTH............................................................................................................................................ 10 WEAKNESS ........................................................................................................................................... 10 OPPORTUNITY ..................................................................................................................................... 10 THREAT ................................................................................................................................................. 10

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INTRODUCTION
The Indian retail industry is the fifth largest in the world. Comprising of organized and unorganized sectors, India retail industry is one of the fastest growing industries in India, especially over the last few years. Though initially, the retail industry in India was mostly unorganized, however with the change of tastes and preferences of the consumers, the industry is getting more popular these days and getting organized as well. With growing market demand, the industry is expected to grow at a pace of 25-30% annually. The India retail industry is expected to grow from ` 35,000 crore in 2004-05 to ` 109,000 crore by the year 2010. Big bazaar is a chain of shopping malls in India. Currently, there are 150 big bazaar stores across 80 cities and towns in India. Big Bazaar is designed as an agglomeration of bazaars or Indian markets with clusters offering a wide range of merchandise including fashion and apparels, food products, general merchandise, furniture, electronics, books, fast food and leisure and entertainment sections. Big Bazaar is part of Future Group, which also owns the Central Hypermarket, and is owned through a wholly owned subsidiary of Pantaloon Retail India Limited. Big-sized Indian Mandi- Big Bazaar. Started purely as a fashion format including apparel, cosmetics, accessory and general merchandise. First Food Bazaar format was added as Shop-In-Shop within Big Bazaar in the year 2002 Big Bazaar and Food Bazaar -blend the look, feel and touch of Indian bazaars with modern retail concepts of choice, convenience and quality.

FORMAT DEFINITION
Hypermarket- A large superstore, combining a supermarket and departmental store, offering full lines of grocery and general merchandise all under one roof. Key categories retailed- Food, groceries, apparel, furnishings, consumer durables. Typical size Sq. ft.- 15,000-100,000.

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Target Audience
Big Bazaar targets higher and upper middle class customers .The large and growing young working population is a preferred customer segment . Big Bazaar specifically targets working women and home makers who are the primary decision makers.

Major Competitor in India

Tata Group
Tata group is another major player in Indian retail industry with its subsidiary Trent, which operates Westside and Star India Bazaar. Established in 1998, it also acquired the largest book and music retailer in India Landmark in 2005. Trent owns over 4 lakh sq. ft retail space across the country.

RPG Group
RPG Group is one of the earlier entrants in the Indian retail market, when it came into food & grocery retailing in 1996 with its retail Foodworld stores. Later it also opened the pharmacy and beauty care outlets Health & Glow.

RELIANCE
Reliance is one of the biggest players in Indian retail industry. More than 300 Reliance Fresh stores and Reliance Mart are quite popular in the Indian retail market. It's expecting its sales to reach ` 90,000 crores by 2010.

AV BIRLA GROUP
AV Birla Group has a strong presence in Indian apparel retailing. The brands like Louis Phillipe, Allen Solly, Van Heusen, Peter England are quite popular. It's also investing in other segments of retail. It will invest ` 8000-9000 crores by 2010

MARKETING MIX
7P Analysis of Big Bazaar
7P Marketing Mix is more useful for services industries and knowledge intensive industries. Successful marketing depends on number of key issues. The seven keys issues are explained as: -

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PRODUCT
Big Bazaar offers a wide range of products which range from apparels, food, farm products, furniture, child care, toys, etc. Products of all the major brands are available at Big Bazaar .Also, there are many in house brands promoted by Big Bazaar. Big Bazaar sold over 300,000 pairs of jeans, 50,000 DVD-players and 25,000 microwave-ovens. In all, the fashion, electronics and travel segments made up about 70% of sales. Last year, these categories made up only about 60%.

PRICE
The tag-line is Is se sasta aur accha aur kahin nahi. They work on the model of economics of scale. There pricing objective is to get Maximum Market Share. The various techniques used at Big Bazaar are: -

Value Pricing (EDLP Every Day Low Pricing): Big Bazaar promises consumers the
lowest available price without coupon clipping, waiting for discount promotions, or comparison shopping.

Promotional Pricing: Big Bazaar offers financing at low interest rate. The concept of
psychological discounting (Rs. 99, Rs. 49, etc.) is used as promotional tool. Big Bazaar also caters on Special Event Pricing (Close to Diwali, Gudi Padva, and Durga Pooja).

Differentiated Pricing: Time pricing, i.e., difference in rate based on peak and non-peak
hours or days of shopping is also a pricing technique used in Indian retail, which is aggressively used by Big Bazaar.

Bundling: Selling combo-packs and offering discount to customers. The combo-packs add
value to customer.

PLACE
Big Bazaar stores are located in 50 cities with 75 outlets.Big Bazaar has presence in almost all the major Indian cities. They are aggressive on their expansion plans.

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PROMOTION
Big Bazaar started many new and innovative cross-sell and up-sell strategies in Indian retail market. The various promotion techniques used at Big Bazaar include saal ke sabse saste teen din, Future Card (the card offers 3% discount), Shakti Card, Brand Endorsement by M. S. DHONI, Exchange Offer Junk Swap Offer, Point-of-Purchase Promotions. Advertising has played a crucial role in building of the brand. Big Bazaar advertisements are seen in print media, TV, Radio (FM) and road-side bill-boards.

PEOPLE
They are one of the key assets for any organization. The salient features of staff of Big Bazaar are: Well-trained staff, the staff employed by Big-Bazaar are well-suited for modern retail. Well-dressed staff improves the overall appearance of store. Employees are motivated to think out-of-the-box. Retail sector is in growth stage, so staff is empowered to take innovative steps. Employees close to 10,000 people and recruits nearly 500 people every month. Use of technology like scenario planning for decision making. Multiple counters for payment, staff at store to keep baggage and security guards at every gate, makes for a customer-friendly atmosphere.

PROCESS
The goods dispatch and purchasing area has certain salient features which include: Multiple counters with trolleys to carry the items purchased. Proper display / posters of the place like (DAL, SOAP, etc.). Home delivery counters also started at many places.

PHYSICAL EVIDENCE
It deals with the final deliverable or the display of written facts. This includes the current system and available facilities.

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MARKETING STRATEGY

BRANDING
Branding plays a crucial role for all the products and services. A successful brand is an identifiable product or service, and buyers or users perceive values in it which matches their needs.

Advantages of branding
They are: Product dies but a good brand never dies: The first car T-model is no more but the brand 'FORD' is still alive. 'Pears' soap that was launched somewhere in the end of 1800 is still alive although they have changed the product. Even they are looking for line extension but basic brand names are the same. Sales or market share: A brand generates familiarity and trust, and hence, leads to greater sales. Branded products have an edge over unbranded products.

PREMIUM PRICE: Brands generate trust, a brand manager can charge extra price and
people pay for that trust.

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DIFFERENTIATION: Creating a brand is nothing but creating a strong association. This
association clearly differentiates the branded product from the rest. According to brand evolution model developed by Kunde (2000) (as the value of brand becomes stronger and more relevant to customers, the brand becomes more involving, and thus, managers need to make their brand values more relevant to increase customer's involvement. This is explained by religion model also. The model distinguishes 5 types of brands: -

PRODUCT BRAND: Products without any form of added value connected to the generic
element.

CONCEPT BRAND: Brands that are driven by emotional values - as opposed to product
characteristics.

CORPORATE CONCEPT BRAND: Brands that merge with the company and present
themselves in a sustained and consistent way.

BRAND CULTURE BRAND: Brands that are so strong that they - in the eyes of the
consumer - have become equated with the function they represent.

BRAND RELIGION BRAND: The ultimate brand position is that of brands that - in the
eyes of the consumer - have become a "must", a faith to which they profess.

ADVERTISING: The Essential of Brand Building Process

Advertising is an essential component of brand building. The advertisement and brand building is done through various ways, the techniques used are: -

TAG-LINE: Big Bazaar tag-lines are the key components of advertising. These tag-lines are
modified according to demographic profile of customers. These catch-phrases appeared on hoardings and newspapers in every city where Big Bazaar was launched. Everybody understood and connected easily with these simple one-liners. The catch-liners include Hindi Chane ke bhaw kaaju, Bengali Rui er dame illish, Hindi Stall ke bhaw balcony, etc.

PRINT ADS: Big Bazaar newspaper advertisements are present just before launch of any new
scheme. This creates aura about the Big Bazaar brand in the minds of customers.

TV ADS: Kishore Biyani spends a lot of money in brand building exercise. Big Bazaar
commercials are shown on various channels in India. Presently, Fashion@Big Bazaar commercial is aired.

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ROAD-SIDE ADVERTISEMENTS: Big Bazaar bill-boards are displayed on prime
locations in various cities as a brand building exercise. They display the catch-phrases now-adays.

RADIO ADS: This technique is used in cities like Sangli (Tier 1 / Tier 2 cities). Now-a-days,
it is replaced by advertisements on FM channels. This informs customers about all new happenings at Big Bazaar.

FASHION SHOWS: FASHION @ BIG BAZAAR Desh Badla, Bhesh Badlo is the
latest invention of the Indian iconic brand. In an effort to take the Fashion to the masses, Big Bazaar, the flagship hypermarket brand of retail chain of Future Group, organized a three-day Fashion Show on the streets of Bandra, Mumbai.

BRAND ENDORSEMENT BY CELEBRITY: Big Bazaar is always associated with

celebrities for advertising and marketing of its brand name. The current campaign is starred by Brand Ambassador and Indian Cricket ODI Captain Mahendra Singh Dhoni. Earlier Himesh Reshammiya and Sanath Jaisuriya were associated with Big Bazaar.

GROUP OF COMPANIES
The Future Group
Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one of India's leading business houses with multiple businesses spanning across the consumption space. While retail forms the core business activity of Future Group, group subsidiaries are present in consumer finance, capital, insurance, leisure and entertainment, brand development, retail real estate development, retail media and logistics. Led by its flagship enterprise, Pantaloon Retail, the group operates over 12 million square feet of retail space in over 71 cities and towns and 65 rural locations across India. The group owns several leading formats including Pantaloons, Big Bazaar, Food Bazaar, Home Town, eZone and Central. Pantaloon Retail was awarded the International Retailer of the Year - 2007, by the USbased National Retail Federation, the largest retail trade association and the Emerging Market Retailer of the Year 2007 at the World Retail Congress in Barcelona. Future Group believes in developing strong insights on Indian consumers and building businesses based on Indian ideas.

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FutureBazaar.com
FutureBazaar.com is the e-commerce arm of the Future Group. FutureBazaar provides an integrated shopping site where consumers are able to buy products from our flagship stores including eZone, Pantaloons and Big Bazaar online and get home delivery of products. FutureBazaar delivers across more than 1500 cities and towns in India covering 16,000 pin codes. FutureBazaar carries genuine products and offers manufacturer's warranty (as opposed to Seller's warranty) which most other sites offer. FutureBazaar offers products where the complete supply chain is managed by Future Group entities unlike other sites that are market places.By the virtue of being a part of Future Group, FutureBazaar is able to offer a wide range of genuine products at very competitive prices, confidence of buying from a trusted source and the convenience of returning in our physical stores.

SWOT ANALYSIS
STRENGTH
High brand equity -state of art infrastructure -EDLP -pop promotions -variety of stuff under single roof

WEAKNESS
Unable to meet store opening targets -falling revenue/sq. ft -General perception

OPPORTUNITY
Organized retail(4.15%) -Evolving consumer preferences

THREAT
Competitors -Government policies -Unorganized retail

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