BIG BAZAARIs se Sasta Or Acha Kahi Nahi

Retail In India

The Indian retail industry accounts for 10% of GDP and 8% of employment.

India is being touted as the next big retail destination with an average three year compounded annual growth rate of 46.64%.

The Indian economy is poised to take the third position in the world in terms of Purchasing Power Parity by the year 2010

Retail In India

• The Indian Retail Market is a Rs.1,200,000 million market as per the Images India Retail Report 2007.

• Organized Retail market is zooming ahead with an annual growth rate of 30%

• The country will have over 300 malls translating to over 100 million sq.ft. in available mall space by the end of 2007.

Retail In India

• Retailing in India is witnessing a huge revamping exercise as can be seen in the graph

• India is rated the fifth most attractive emerging retail market: a potential goldmine.

• Estimated to be US$ 200 billion, of which organized retailing (i.e. modern trade) makes up 3 percent or US$ 6.4 billion

• As per a report by KPMG the annual growth of department stores is estimated at 24%

Introduction

• A chain of shopping malls in India currently with 31 outlet owned by Kishore Biyani’s Pantaloon Group.

• Provides the best products at the best price.

• Reflect the look and feel of Indian bazaars at their modern outlets .

• All over India, Big Bazaar attracts a few thousand customers on any regular day.

• The hypermarket chain was introduced in India in 2001 by Pantaloon Retail(India) Limited

• The first store in Kolkata

Introduction

• Pantaloon retail India Ltd was incorporated as Manz Wear private Ltd in the year 1987.

• It became a public limited company in 1991 and was renamed Pantaloon Fashion Limited and then Pantaloon retail Ltd in 1999

• The company introduced the concept of The Pantaloon Shoppe, an exclusive men’s wear retail store which expanded across India from 1994-1998. In the year 1997, Pantaloon moved a large format lifestyle retailing with the launch of “Pantaloons”, India’s family store

Awards & Reorganization

• Indian Retail Forum Awards 2008

• The INDIASTAR Award 2008 • Retail Asia Pacific 500 Top Awards 2008

• Coca-Cola Golden Spoon Awards 2008 • The Reid & Taylor Awards For Retail

Excellence 2008 • Platinum Trusted Brand Award

• Images Retail Award 2005,06 • DLF Award 04

Man Behind Big Bazaar

• Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the Group Chief Executive Officer of Future Group.

• He was born in August 1961.• Kishore founded Pantaloons in 1997• onsiders ‘Indianness’ as the core value

driving the group• Kishore has won following awards and

honors:• 2006 Ernst & Young Entrepreneur of the Year award.• 2006 Lakshmipat Singhania - IIM Lucknow Young Business Leader Award.• 2006 CNBC First Generation Entrepreneur of the Year award.

7Ps Analysis Of Big Bazaar

Product Mix

Product Mix

7Ps Analysis

• Price Value Pricing Promotional Pricing Differentiated Pricing Bundling

7Ps Analysis

• Place

7Ps Analysis

• Promotion

7Ps Analysis

• People– They are the key assets of any organization

The Salient Feature of Big Bazaar are:-– Well Trained Staff– Staff Employed by Big Bazaar are well suited for modern retail– Well dressed staff– Employees are motivated to think out of the box

7Ps Analysis

• Process

7Ps Analysis

• Physical Evidence

3C’s Theory

Big Bazaar is based on 3-C theory of Kishore Biyani. The 3-C symbolize Change, Confidence & Consumption, & according to this theory , “Change and Confidence is leading to rise in Consumption”.

They divided Indian customer in three categories:- • India One• India Two• India Three

SWOT AnalysisSTRENGTH

•High Brand Equity in evolving retails markets•State-of-art infrastructure of Big Bazaar outlets•POP to increase the purchase•One stop shop for variety of products, increasing customer time and available choices

STRENGTH•High Brand Equity in evolving retails markets•State-of-art infrastructure of Big Bazaar outlets•POP to increase the purchase•One stop shop for variety of products, increasing customer time and available choices

WEAKNESS• Unable to meet store

opening target so far• Falling revenue per

square feet

WEAKNESS• Unable to meet store

opening target so far• Falling revenue per

square feet

OPPORTUNITY•Organized retail is just 4.15%of total pie of Indian retail market•Evolving Customer preferences in recent years

OPPORTUNITY•Organized retail is just 4.15%of total pie of Indian retail market•Evolving Customer preferences in recent years

THREAT•Competitors, global big players planning to foray into market•Unorganized retail market of India•Government policies are not well-defined in India

THREAT•Competitors, global big players planning to foray into market•Unorganized retail market of India•Government policies are not well-defined in India

Promotion

The main idea behind every effort is to make a bulk purchase• “Saal ke sabse saste 3 din”

Promotion

• Hafte ka sabse sasta din “Wednesday bazaar”

Promotion

• Exchange Offers “Junk swap offer”

Promotion

• Advertisement (print ad, TV ad, radio)

Promotion

• Brand endorsement by M.S Dhoni and Asin

Promotion

• Latest Promotion technique in Diwali is “Gift Idea 2009”

Challenges Ahead• Exorbitant rentals , Lack of retail

space• Real estate prices escalating• Local retailers (unorganized sector) Give things on credits Work on low profit margin Huge taxes from organized sector favors

small retailers Have personal relationship with

customers still controls 97% of the retail market• Shortage of trained man power• Increased FDI (welcoming competition

from Global retail giants like Wall Mart Tesco)• Does not appeal to elite.• Tough competition from players like

Reliance, RPG group

Future