kishore biyani and big bazaar

KISHORE BIYANI AND

BY:HUSSAIN MUSTAFA AZAD MBA 2ND SEM,ROLL-

29

OperartionsManagement Case Study on

Company History

Biyani started with his family bussiness in textiles in the year 1987. He launched the 1st branded ready made trousers brand known as Pantaloon. With the help of his company Pantaloon fashions, later it named as Pantaloon Shoppe stores. In 1992, Biyani reached to customer level with its 60 exclusive shops.Initial brand was John Miller and Bare.

Present Overview Pantaloons Central Big bazaar Food bazaar Brand factory Home Town Furniture bazaar Ezone Electronics bazaar Lee cooper Future money

Who is the brainchild for all these malls are???

Mr.Kishore biyani

He is coined as:‘Father of retailing in India’‘Rajah of retail’‘India’s retail CZAR’‘The unstoppable Indian’

1000 stores in 71 cities with 30,000 people employed.

Today the company has almost 14,000 shareholders.

He now has about 22 different retail formats.

Q.1 The layout of big bazaar stores is radically different from those in West. Do you think this layout would be successful in the wake of the entry of big players such as Wal-Mart in India market?

Brief History The hypermarket chain was introduced in

Indiain 2001 by Pantaloon Retail(India) Limited.

The first store in Kolkata The discount store waslaunched in the

year 2001, to meet theaspirations of the middle class. In thespan of two years, it has added a FoodBazaar and Gold Bazaar to its range of offering.

The Strategy

Biyani’s Vision- ‘To give the Indian customer the feel of a local market place-narrow lanes, crowded market place and customers bumping into each other and into commodities’.

Saving is the key to the Indian middle class consumer.

The concept of “Bazaar”, As the store offers large mix of products at a discounted price, the name “Big Bazaar” was finalized

The idea was to recreate a complete bazaar, with a large product offering and offer a good depth and width in terms of range

To remove Myth in the mind of Indian consumer that big shopping stores charge more prices for commodities,compared to the local kirana stores.

Selecting the Location Ability to pull crowds. Positive economies of scale. Large catchment area is needed. Generally, those stores in which builder’s

are ready to provide fully-furnished stores that enables them to start there operation immediately.

Elements of store environment

Store

Environment

Store Image

Store

Theme

Merchandise MIXLarge product mix offered by Big

Bazaar was the main attraction.Big Bazaar stocked about

1,30,000items in over 20 product categories.

Threats

In long run Big bazaar layout will faceproblems, in the wake of entry ofbig players such as Wal-Mart in Indian ….

Then what will be the impact?????

Potential Entrance

Suppliers

Buyers

Substitute product

Switching Cost

Where the problem lies with

?

?

Biggest problem lies with Big Bazaar is the Inventory level Management.

Still they follow Traditional supply chain.

Low in Technological upgradation.Delivery not in Time.High Debt exposure. In-house brands occupy 40% of

equity.

Strength of

Low cost leadership: Wal-Mart uses legendary inventory replishment system

Through this system Wal-Mart continuously sends orders for new merchandise directly to suppliers as soon as customer pays for purchases at cash register.By this Wal-Mart does not have to spend money on maintaining large inventories of goods in its own warehouse and can adjust with customer demand.By this customer response system Wal-Mart easily manages to keep its operational costs low.

Q2.Using the traditional supply chain has worked for Biyani so far. Do you think it would work in the future as Reliance has chosen to follow the exclusive supply chain rout