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BHAT BHATENI The Leading Supermarket

Presented By: Kalpana Rai Sagun Thapa Rupak Shrestha Prakash Ghimire Kiran Gurung

What is BHAT - BHATENI


About Bhat-Bhateni Hyper Mart Chain of development store in Nepal
5 outlet Located in Kathmandu Valley & 1 in Pokhara Mr. Min Bahadur Gurung Bhat-Bhateni Head Office, BhatBhateni, Kathmandu http://bbsm.com.np Retail

Outlet Owner Head Office Web site Industry

Some Interesting Facts


The idea behind Bhat Bhateni was pioneered by a visionary entrepreneur Mr. Min Bhadaur Gurung.
Established in 1986 with one room .

Total Employee 2,200.


Total Sales/day 2 Crore with more than 40,000 customer daily. Highest tax payer in the retail sector for the last five consecutive years. Offers full range of 120,000 products from 700 local and international suppliers

SWOT Analysis
Strength
The one and only one leading supermarket of the country.
Huge infrastructure with ample of parking space and secure locker system.

Loyal Customers.
Full range of 120,000 products with reasonable price. Prime Location of Store. Online order receiving system with home delivery facility and club card. Highly experienced manpower in retail sector .
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SWOT Analysis SWOT Analysis


Weakness
Limited number of stores. No central ware house and wholesale unit. It has been accused of providing low grade/Insufficient quality products. Queue Management is not so organized. Longcheck out lines especially at Saturday and holidays . Fewer choices of goods because it stock only those goods that likely to sell.

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SWOT Analysis
Opportunities
Growing level of Incomes No big competitors till date Increasing trends of shopping in Mall and Department stores.

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SWOT Analysis
Threats
Intense Competition No proper rules and regulation form the government side regarding retail industry. Opportunity cost is high with high rate of bank loan. Political Instability that will hamper the expansion growth of the store Inflation rate is high Operating cost is high to operate the business as the store has to depend on diesel energy instead of hydro energy.

Marketing Mix

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1.Product Mix
APPARELS Denims & T-Shirts Fabric & Cut piece Formal Wear Casual Wear Party Wear Ethnic Wear Accessories Under Garments Night Wear Dress Materials Sarees
FOOD FARM PRODUCT CHILL STATION HOME & PERSONAL CARE

Staples Ready to eat Ready to cook International Food Spices Tea & Coffee

Fruits Vegetables Imported Fruits Dairy Products

Soft Drinks Packaged Juices Milk Items Frozen Foods Ice Creams

Shampoos Detergents Soaps Liquid wash Creams Deodorants Home cleaners Utensils Plastics Crockery Electronic Appliances

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2.Pricing
Value pricing Promotional pricing
Psychological discounting Special event pricing

Differentiated Pricing Bundling

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3.Place

Number of out let- 6 Located at main city Approachable destination.

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4.Promotion
Below the Line Promotion
Coupon, discount, more of the product at normal price, gift with purchase, competition, and prizes, money back offer, exchange offer, special occasion, Club Card.

Above the Line Promotion

Giving advertise in news paper, TV. Internet (own website which give online shopping service).

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Positioning Strategies
BBSM has adopted price, product as core component for positioning strategies. for the full range of 120000 products from 750 local and international suppliers

1st retail store to operate online shopping as bhatbhatenionline.com with the statement of Save Time Save Money As a 1st retail store with the history of 28 years, it has created an image in peoples mind as most wider range of quality goods on best price.

Organization value and customer value


*High organization value *Low customer value Bhat Bhateni *High organization value *High customer value

*Low organization value *Low customer value

*Low organization value *Low customer value

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Frontal marketing strategy

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Future strategy of
The new warehouse facility and wholesale unit in Baluwater is due to open by the end of 2012 and will enable Bhat-Bhateni to delivery further cost savings to loyal customers. Mr. Min B. Gurung has truly visionary long-term goals and aim to establish farmer co-operatives in Nepal which is estimated to give employment to 50,000 people in total once the store expansion programme is complete, and is likely to position Bhat-Bhateni as the largest corporate tax payer in the country.

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Porters five force model

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Analysis
5 Forces
Rivalry among the competitor

Analysis
Namaste , CG Mart, Big Mart, Saleways etc

Threat of entrants High threat of entrance FDI policy is favorable.

Bargaining power of supplier

The bargaining power of suppliers varies depending upon the target segment. The un organized sector has a dominant position. There are few players who have a slight edge over others on account of being established players and enjoying brand distinction. Consumers are price sensitive.. Availability of more choice. Unorganized retail

Bargaining power of buyers

Threat of substitutes
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Life Cycle of

SCA
The sustainable competitive advantage requires value creating products, processes and services that cannot be matched up by competitors and the plan to maintain it for future. If it is the case, can Bhatbhateni boast about it?

YES!!!
YES !!!!
Over the years Bhatbhateni has created a solid SCA against its competitors. It has thousands of loyal and satisfied customers.

Challenges in future:
With the slow increase in the number of new players in retail sector, Bhatbhateni will find it difficult in future. Also the advancement in the technology it has to keep upgrading the service to maintain its SCA.

Growth, Diversification & Global Strategy


The meteoric growth of Bhatbhateni has showed the strength of the company. The retail industry in Nepal is growing and hence has opportunities. To maintain its growth as a corporate Bhatbhateni group has to go for business diversification. And they are going for agro-business and farmers co-operatives. The legal prohibition has barred the foreign players coming in Nepal and cannot see any plans by Bhatbhateni in foreign countries in near future.