big bazaar_salesmen of year

7/28/2019 Big Bazaar_Salesmen of Year

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{

Big BazaarTeam Name: Salesman Of the YearGajendra Sisodia

Shouvik Das

Tejas Deshpande

Viral Patel

Yagnesh Desai

Chiranjeev Dhar

Mohit Sangwan


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Launched in 1987 as mens apparel manufacturer. By 1990s, company launched The Pantaloon Shoppe In 1997, PRIL introduced Pantaloons, 1st store in Kolkata. Major advantages:

o Unique understanding of the Indian organized retail marketo Derived and implemented strategies from westo Experimented with as many retail formats, product-mixes and

brands as was possible in order to gain maximum knowledgeabout the uncertain Indian mindset.

What did Pantaloons do right?o Retail Experiment: experimented with every retail format,

introduced number of private brands.o Right JV at the right time: Key JVs with popular names like

Staples, Starbucks.o Versatile Retailing: Consumer see it as exclusive brand retailer,

discount retailer and specialty retailer.o Strengthening Supply Chain: Robust supply chain works as its

backbone.

Success Story-PRIL (Pantaloons)


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About Big Bazaar Hyper mart

Chain of development store in India

Out let More than 100 outletsLocated in India

Parent group Future group

Owner Kishore Biyani (CEO)

Founded 2001

Head quarter Jogeswari , Mumbai

Industry Retail

website www.bigbazar.com

Tag line Is se sasta aur achha kahin nahi.

About Big Bazar


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Mission And Vision

VISION

Future Group shall deliver Everything, Everywhere, Every time for Every

Indian Consumer in the most profitable manner.

MISSION

We share the vision and belief that our customers and stakeholders shall be

served only by creating and executing future scenarios in the consumption

space leading to economic development.


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Customers Segmentation

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.

Positioning And Establishment


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*Highorganization

value

*Lowcustomervalue

*Highorganization

value

*High customervalue

*Low

organizationvalue

*Lowcustomer value

*Low

organizationvalue

*Lowcustomer value

Organization Value and Customer Value


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Positioning

Highservice

low

service

Low priceHigh

price


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What is Retailing

The term Retailingrefers to any activitythat involves a sale to

an individual customer.

Retailing is theinterface between theproducer and the

individual consumerbuying for personalconsumption.

RETAIL

ORGANISED UNORGANISED


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As per the AT Kearney GRDI 2012, India is ranked 5th thus falling 1 rank compared to 2011 It has been China which has taken a giant leap of 3 ranks and is placed 3rd in 2012 While China scores 53.4 in terms of market attractiveness, Indias low score of 31 on this

parameter has pulled it down Both India and China are now in the maturing stage in the GRDI Window of-opportunity

analysis India remains high potential market with accelerated retail growth of 15-20% expected over

next 5 years Strong macro-economic conditions, higher disposable income and rapid urbanization a

catalyst for India Grocery remains Indias largest source of retail sales

AT Kearney report 2012

First-time modern trade shoppers and urban Indias poorest households willadd around $3 billion (around Rs.16,710 crore) to the sales of the consumerpackaged goods industry by 2015.

The first-time modern trade shoppers will triple their spend on consumerpackaged products from the current $280 million to $1 billion in three years.

Nielsen report assumes significance as 10% of overall sales at Pantaloon Retailcomes from first-time shoppers.

Due to large discounts offered by Big Bazaar, high number of consumers fromlow-income groups shop during the biannual shopping fests and are first-time

shoppers

AC Nielsen report 2012


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Threat of Substitutes(Local Kirana Stores, open air

markets and retailers) Convenient proximity Tradition of credit Perception of low prices

Rivalry among competitors(Reliance retail, Aditya Birla

Group, Spencers, Mom n Popstores)

Low switching cost Price elasticity of demand

Threat of new entrants(Walmart, Costco, K-Mart,Tesco, Ikea)

FDI consideration Strong cash flows Modern supply chain

Bargaining Power of Supplier(Local suppliers, big companieslike HUL, home grown brands) Efficient Flexible

Buyer Power Low switching cost Price sensitive Demand seasonality Customer Preferences and

options

Porters 5 Forces Analysis : Indian Retail


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Size 2008 2010 PercentageChange

Estimated size of retail in India(in $bn)

353 416 18

Share of organized retail (%) in

India

7 12 71

Size of organized retail in India(in Rs)

78,300 Cr 2,30,000Cr

194

Size of Indian Retail

Source: http://www.indiaretailing.com/india-retail-report.asp


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Traditional Retailing Contemporary RetailingHighly fragmented retail sector Low fragmented market

Kirana stores employing fewer than4 people

Convenience stores employing morethan 10 people

Local retailers selling from stalls andhandicrafts Organized retailers selling fromhypermarkets, supermarkets anddiscount retailers

Proximity to consumers Well defined locality but lacksproximity to consumers

Consumer perception of low pricesand long-standing tradition of offeringcredit

Consumer perception of relativelyhigh prices, better ambience, dcor,display, facilities, product packagingand services.

No formal scorecard to measuremanufacturers

Have a formal scorecard to measuremanufacturers like shelf availability,

inventory levels etc.

Traditional Vs. Contemporary Retailing


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Indian govt. has allowed FDI in retail up to alevel of 51%

Twofold impact

New supply chains & logisticalcapabilities - drive significantimprovements in infrastructure

needed to source, store anddeliver products

Increased domestic competition better in-house quality products& increased competition

The current Indian retail industry is poisedat $500 Billion

Expected to reach $1.3 trillion by 2020 with aCAGR of 40%

Organized Retail contributes to only 7% ($35billion) whereas 93% ($465 Billion) is in

unorganized retail

Current trends in FDI (2012)

500 575

$661 $760$875

$1,006$1,157

$1,330$1,530

0

500

1000

1500

2000

2012 2013 2014 2015 2016 2017 2018 2019 2020

Indian Retail Industry

Retail Industry

Organized Retail Unorganized Retail


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Taxation laws varies from State to State

Tax laws favours small establishments

Multi octroi / entry tax and other taxation for movement ofgoods

Problems in supply chain and logistics Very high real estate cost

High electricity cost

Limited availability of land in prime locations

Challenges in Retail


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Reduce wastage

Improve tax revenues for ex-chequerer

Bring efficiency

Increasing consumption to boost growth

Provide convenient shopping experience for customers ataffordable price

Opportunities in Retail


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Pentagon Price

Place

Product

Value

Communication

Triangle of Retail

Customer Supplier

Logistics

Pentagon and Triangle of Retail


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Online Sales

Tele-booking Service

Home Delivery

Future Bazaar.com

High Technology Items

Bulk Orders

Product & Brand Diversification

Cash On DeliveryAmerican Express

Credit Card EMI

New Payment Options

Redeption Points scheme

E-Gift Vouchers

Loyalty Program

New Features : Big Bazaar 2012


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Promotions : Big Bazaar 2012


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Focus on Current Products

Vertical Integration

Acquisition of Distributors Warehouse Development

Exclusivity

Agri Farmers

Increased Penetration

Tier II Cities SAMs Club Model

Alliances with Existing Vendors / Retailers

Investment in SCM

Possible Growth Strategies

Redefine Channels

Create New Channels

Product Availability

Brand CommunicationIncreased Brand Experience


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Focus on New Products Brand Extension

Home Furnishing Technology Food Court

Increase Brand Experience Mela Theme Game Zone

Increase Brand Communication OOH Unique Ad Strategy

Possible Growth Strategies


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As the threat of new competitors due to the FDI rule, wewould suggest to go for the following steps

Focus on Existing Product Lines

Food Category (70% of Sales)

Strengthen Supply Chain Target Tier II Cities

Warehousing ( SAMs Club) Model

Online Purchase

Increase Brand Experience

Mela Theme

Game Zone

Recommendations


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Apply Cross Docking Techniques Reduced Cost

Increased Efficiency

Hub & Spoke Model

Electronic Data Interface

Logistic software Integration b/w Vendors / Suppliers

Customers

(Increase Customer & Vendor Intimacy)

SCM Explained


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Thank You

big bazaar_salesmen of year

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