Presenting Case Study on Casas Bahia

Presented by
Rahul Malgundkar Ravi Malviya Mahesh Marathe Nitesh Mehata Neelam Merai Paresh Mhatre Tejashri Mirgal Guruprasad Nabar 8069 8070 8071 8072 8073 8074 8075 8076

Definition of Marketing

Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

Definition of Retail Marketing

Retail marketing is comprised of the activities related to selling products directly to consumers through channels such as stores, malls, vending machines or other fixed locations.

Casas Bahia: Retail for the Poor

Founded by Samuel Klein in 1958. Consisted of largest retail chain in Brazil, selling electronics, appliances & furniture. Annual revenue- 4.2 billion real with 330 stores, 10 million customers & 20,000 employees.

Function of Credit Analysis

Brands Sold
Sony Toshiba JVC Whirlpool

Business Model

Credit financing was the core business model To finance purchases customers are required to submit to an SPC credit check All the information collected was centralized and made available at all the stores To maintain records on the personality traits of its customers for future references

Contd

Cross Selling constituted another reason for the impressive sales figure Aggressive marketing was considered another reason for the success of and popularity

Criticism

Casas Bahia came under criticism that it is exploited the poor in the name of selling them branded products in easy installments.
Casas Bahia targeted the poor working class people by taking advantage of their vulnerabilities and yearning for expensive consumer goods

Traditional Values Meets Modern IT Solutions

All store are linked and monitored in real time Customer relationship o Before 1995 customer wait for the pay their bill o After 1995 developed system printed passbook from a computer o Currently all customer related materials will be optically scanned and digitized o In the short run, they also introduction of credit cards system for bill payment

Current Scenario
- Amount of stores in Brazil: 565 stores. - Invoicing Foreseen for the year of 2007: R$ 12.5 billion of Real. - Biggest store area (Super Casas Bahia): 151600 square meters in the Anhembi (So paulo). - Net profits: R$ 250 million of Real. - Amount of employees: 57518 employees, being 16800 salesmen. - Amount of customers registered in the system of Casas Bahia: 26.3 million.

Contd
- Average Amount of monthly deliveries: 908000 deliveries per month. - Products more traded in 2007 (January to November): 918,000 furniture for kitchens 657,000 cellular telephones 500,000 furniture for room 410,000 beds 345000 Television Sets