Big bazaar

PPT of Bigbazaar- Marketing Strategy- SWOT- Porters - Pestle

1. Group – 7

2. INTRODUCTION Big Bazaar is one of the oldest and largest hypermarket chains of India, housing about 101 stores across the country. Big Bazaar is a hyper market format, a part of Pantaloon and works on the same economy model as Walmart and has had considerable success in many Indian cities and small towns. A hypermarket is a retail store that combines a department store and a grocery supermarket. Often a very large establishment, hypermarkets offer a wide variety of products such as appliances, clothing, and groceries. Big Bazaar is on the verge of achieving a unique milestone in the history of world Retail- by being the first hypermarket format in the globe to rollout 101 stores fastest in a short span of seven years

3. HISTORY OF BIG BAZAAR Big Bazaar was founded in 2001 by Kishore Biyani , the founder and chief executive officer (CEO) of the parent company, the Future Group. Big Bazaar is also the parent chain of Food Bazaar, Fashion at Big Bazaar (abbreviated as fbb ) and eZone where at locations it houses all under one roof, while it is sister chain of retail outlets like Brand Factory, Home Town, Central, eZone , etc. The former captain of Indian cricket team, Mahendra Singh Dhoni have previously endorsed for the fashion vertical of Big Bazaar. In 2020, Big Bazaar was acquired by Reliance Retail, the retail division of the Reliance Industries, as part of a ₹24,713 crore ($3.36 billion) sale transaction of Future Group. Shopping is necessary for one and all. There are two basic types of shopping. One is done in retail stores, and the other one is done in malls and shopping complexes.

4. The retail stores are dedicated to a specific item, whereas the shopping complexes like Big Bazaar house many, many products in one place. The business model of Big Bazaar revolves around the retail chain of hypermarkets, grocery stores, and discount department stores. Big Bazaar is one of the largest shopping malls in India. They give some fantastic offers and discounts to their customers. These factors attract more and more customers to these stores. The wide range of products incorporated by the Big Bazaar Business Model is- Electronics, Movies and music, Home and furniture, Home improvement, Clothing, Footwear, Jewelry, Toys, Health and beauty, Pet supplies, Sporting goods and fitness, Auto, Photofinishing, Craft supplies, Party supplies, Grocery, etc.

5. INDIAN RETAIL SCENARIO India has emerged as one of the most favored retail destination countries. The development of large, modern store chains has been accelerated in the recent times by the investments made by the large-scale domestic and international players. As of 2007, organized retail forms just 3% of India’s retail industry which is roughly estimated at $330 billion and it is set to grow to 16% by 2015, according to estimated by Technopak Advisors, a New Delhi-based retail consulting company. To gain leverage in this growth trend, major players such as Future Group, Reliance Industries Ltd, Tata Group, Aditya Birla Group, K Raheja Corp., and Mahindra and Mahindra Ltd have announced mega investments in this sector.

6. The retailers have borrowed ideas from the organized western style retailing and have tried to offer a variety of product mixes and store formats such as supermarkets, hyper markets, malls etc., to effectively address the market needs. Organized retail makes up to 70% to 80% of all retail business in developed countries. In India, the organized retail sector comprises of only 3%, whereas US accounts for 85% and Japan accounts for 66%. The proliferation of hypermarkets and supermarkets has led to a growth in food and grocery retail. Impulse goods like books and music are also gaining a larger share in the organized retail market, with players making stores more accessible to consumers.

7. Indian retail or traditional retail is dominated by a large number of small retailers consisting of the local kirana shops, owner-manned general stores, chemists, footwear shops, hand-cart hawkers, etc. Since 2005-2006 organized retailers took entry in Indian market, who opened stores in various modern formats in metro cities and other locations. Still the overall share or organized retailing in total business has remained low. While total retail sales have grown from INR 10,591 billion in 2003-2004 to INR 14,574 billion in 2006-2007 with a compound annual growth rate of about 11%, the organized retail sales grew at higher rate about 20% per annum from INR 350 billion in 2003-2004 to INR 598 billion in 2006-2007. As a result, the share of organized retail in total grew, although slowly, from 3.3% to 4.1% at the end of 2007 FY.

8. BUSINESS MODEL OF BIG BAZAAR Many people believe that the Big Bazaar is the Indian version of Wal-Mart. Wal-Mart is the chain of retail stores which is very famous in the United States (US). The idea of Big Bazaar came from a local store called ‘Saravana.’ This store was a part of a family business. It worked on the principle of ‘low margin; high turnover.’ On the same lines, Big Bazaar has drafted its slogan to be ‘Issei Sasta Aur Achha Kahin Nahi .’ This means that they claim that you will not get better and cheaper products anywhere else.

9. The Network of Big Bazaar Business Any store grows to become highly successful only when it establishes a good network in the prime areas of the country where it can garner huge responses. Starting from Kolkata and West Bengal in 2001, Big Bazaar has now formed an excellent network of more than 250 stores in more than 120 cities across India. This has facilitated the reach of this store and has made it possible for almost every person to go and shop at Big Bazaar.

10. Tapping Into the Retail Industry in India India is known for its immense and ever-growing population. This is a boon for the retail industry in India. The retail sector is the one which sells goods, products, and services in lesser quantity to suffice the need of every individual. There are more than 12 million retail outlets in the country. The goods sold here are diverse and different. Out of these 12 million, around 5 million stores sell food items and eatables. The rest of them sell utility products like clothes, household items, and much more. The Future Group decided to tap into this and unify these different avenues of retail shopping. The stores like Big Bazaar, which are sprawled across the country, offer food items, electronic goods, necessary utility products, and entertainment all under one roof.

11. How does Big Bazaar Make Money? Big Bazaar Business Model is based upon giving so many lucrative offers, yet they make good profits. The reasons are- Big Bazaar business model eliminates mediators, as they directly make their purchases from the manufacturers or producers. This removes the middlemen and their profits to help Big Bazaar have better margins. The business model of Big Bazaar functions on such a large scale that they make profits from the wholesale discounts Economies of scale are also a key factor behind the money-making of Big Bazaar. Because of significant scale functioning, Big Bazaar business model cuts down different other costs such as advertisement, transportation, etc. They can purchase huge amounts simultaneously that let the costs get spread over different items

12. Marketing Strategy used by Big Bazaar

13. Price & Product Price Whenever you go shopping at Big Bazaar, you are sure to find discounts on almost all the products. This is because it works on the low margin principle. Big Bazaar blocks the stock from the manufacturers and hence, has no losses in giving discounts to the buyers. This strategy works in favor of the company because huge crowds gather here to buy these products. Hence, even though the margin the less, the turnover is enormous. Product Even though the prices are attractive, the products also need to be of excellent quality. Big Bazaar has a wide range of wonderful products. They sell products of other manufacturers and also have a series of products of their own. This wide range attracts buyers and customers in huge numbers.

14. Place & Promotions Place The next crucial point is the location of the store. If the store is located in a remote place where there is not much accessibility, the store will not get that much attention despite the wide range and fair pricing. That is why Big Bazaar has always found locations that are easily accessible and easily reachable for almost everyone This network of stores has led to the growth in profits of the company. Promotions Promotions are essential for the success of any public venture. Big Bazaar has allocated a massive budget for the promotions. It has started special days like ‘ Sabse Saste Din, ‘ which has attracted millions of buyers. Also, it has taken celebrities, actors, and sportspersons for their endorsements. This has created a lot of noise for them in the market. They have grown into a significant and successful chain of stores.

15. Competitive Advantages of Big Bazaar Variety of Products: The main competitors for Big Bazaar are Tata Hypermarket, More, and Reliance Fresh. Big Bazaar sells almost everything in the retail sector. From Big Bazaar, you can buy packed food, vegetables, fish, apparels, toys, footwear to hi-tech electronic goods such as TVs, cameras, iPods, etc. They even have entertainment zones and hotels inside their stores. This offers the family a comfortable place to do shopping and to spend time. When Big Bazaar offers every thing under a single store, its main competitors offer only specialized products. For example, Reliance Fresh mainly sells vegetables and food items. Tata Hypermarket sells mainly apparels. Large Chain of Stores: Big Bazaar has 98 stores in 71 locations in India. This offers great accessibility for customers. As they have many stores, they purchase product in bulk for cheap price from the suppliers. This enables Big Bazaar to sell their products for low price. Apt Locations: Big Bazaar has its stores in 71 cities in India. Their store locations are either city centers or huge residential areas. This gives Big Bazaar a great advantage over its competitors. Instead of making the customers come to their store by travel, Big Bazaar established their stores in easily accessible locations. Low Price: All the products sold in Big Bazaar are priced lower when compared with its competitors. In India, the price is the main factor that attracts customers. With a right mix of marketing and procuring the products, Big Bazaar is offering the products and services for the lowest price.

16. SWOT ANALYSIS STRENGHTS High Brand Equity: Brand equity indicates the position of the brand in the market. The business model of Big Bazaar has given it high brand equity. Largest Chain of Retail Stores: The retail stores across the country are diversified concerning the products they sell and the variety they offer. However, Big Bazaar has brought all of the retail selling facilities on the same page. It has created a uniform chain of retail stores. High Capacity of Investment: The investments made by Big Bazaar are huge. That is why they buy goods in bulk and store them in their warehouses. This enables them to give great discounts and attract millions of customers daily. Online Booking and Delivery: Big Bazaar provides online services. It has a platform for buying goods and products online and also pay through payment gateways.

17. SWOT ANALYSIS WEAKNESSES Overcrowded : During offers, promotions and even on weekends the place is overcrowded with people and sometime even there is the situation of closing the store due to it. Checkout can be extremely slow: There can be seen a long queue on the billing counters making the consumer wait for hours due to the slow service and the crowd. Perception of low price = low quality: Generally, people think that if any product has low price, then the quality of the product will be low as they think quality comes with price. Targets at the middle class and upper middle class only: It targets at the middle and upper middle class due to which it ignores the upper and elite class people as they are the cream of the society who are ready to pay any price for the quality and product they need.

18. SWOT ANALYSIS OPPORTUNITIES Big Bazaar can enter into production of various products due to its in depth understanding of customers' tastes and preferences. Nowadays people prefer going to one big store and buy everything instead of visiting different places for different items and waste time. So Big Bazaar can expand the business in smaller cities as there is a lot of opportunity. Lot of potential in the rural market.

19. SWOT ANALYSIS THREATS High business risk involved: Big Bazaar investment is very large, so it is obvious that there is high business risk involved. Lot of competitors: There are a lot of countries which are planning to enter the Indian market like Wal-Mart, Carrefour and Tesco which is a big threat to Big Bazaar. Less Parking Space: Customers are not satisfied with the parking space availability provided by Big Bazaar. Hence, it's a threat of Big Bazaar as it may lose its customers because of less parking space availability. In holidays it will be very difficult for customers to park their vehicle in Big Bazaar. Unorganized retailing: Unorganized retail stores are a threat to the business of big bazaar as now also people prefer to go to the local stores which are convenient enough for them.

20. Porter’s Five Forces Model Big Bazaar Competitiveness: There is extreme competition in the market of food and beverages. Big Bazaar is among the top business in this competitive market with a variety of strong rivals like Unilever, Kraft foods and Group DANONE. Big Bazaar is running well in this race for last 150 years. Each business has a definite share of market. This rivalry is not just limited to the price of the product however also for quality, innovation and variation. Every industry is making every effort hard for the maintenance of their market share. However, the competitors of other business with Big Bazaar is quite high. Threat of New Entrants: A variety of barriers are there for the new entrants to happen in the customer food market. Only a few entrants be successful in this market as there is a requirement to understand the customer need which needs time while recent rivals are aware and has advanced with the consumer commitment over their products with time. There is low danger of brand-new entrants to Big Bazaar as it has rather large network of distribution globally dominating with well-reputed image.

21. Porter’s Five Forces Model Big Bazaar Bargaining Power of Buyers: There is high bargaining power of the buyers due to excellent competitors. Switching cost is quite low for the customers as many business sale a number of comparable products. This appears to be a great risk for any company. Thus, Big Bazaar makes sure to keep its customers pleased. This has actually led Big Bazaar to be one of the loyal company in eyes of its buyers. Threat of Substitutes: There has actually been a great risk of replacements as there are replacements of some of the Nestlé's products such as boiled water and pasteurized milk. There has actually also been a claim that some of its items are not safe to utilize leading to the reduced sale. Therefore, Big Bazaar started highlighting the health advantages of its items to cope up with the replacements. Competitor Analysis: It has ended up being the second biggest food and drink market in the West Europe with a market share of about 8.6% with just a difference of 0.3 points with Big Bazaar. Big Bazaar brings in regional customers by its low cost of the item with the regional taste of the products keeping its first location in the worldwide market. Big Bazaar business has about 280,000 employees and functions in more than 197 nations edging its rivals in lots of regions.

22. Pestel Analysis Big Bazaar Political Factors: Big Bazaar being a retailer should be benefitted the most if government is looking forward to growth in such industries or not. The present economic situation affects the government’s budget which includes the fiscal and monetary policy, thereby affecting the consumers purchasing powers and the growth of the industry. Government that encourages new technology will be beneficial for the company as it would allow them to operate efficiently. Political stability and government policies may also affect Big Bazaar to a great extent. This includes abiding by laws when setting prices, doing marketing and overall business operations in general for its smooth running. The consumer protection measures taken by the government should also be well analyzed. Level of restriction on foreign goods by government also plays a major role in measuring the ease of serving variety to Indian market. Apart from this, a stable government would also encourage investment thereby making the shareholders happy.

23. Pestel Analysis Big Bazaar Economic Factors: The pace of growth of the economy is a major lookout for a retail store like Big bazaar. This is because that is what would help to decide the range of products that should be stored in larger quantities. It also helps in determining the cost of doing business and thereby estimating profits. This would further help in analyzing feasibility and prospects of long-term sustainability. Employment rates, inflation rates, price fluctuations in the markets, Availability of capital at reasonable rates, level of household incomes and saving rates and consumer disposable income are some of the major factors that could affect the operations of the company. The level of income inequality in an economy also depicts the level of crime that can take place and can lead to uncertainty of consumption. Thus, all these factors are very important for long-term analysis of growth prospects for the company.

24. Pestel Analysis Big Bazaar Social Factors: Having such a vast category of products, various social factors would affect Big Bazaar. Starting from birth-rate to estimate future demand, analysis of average age, gender ratio, culture and diversity would all have an impact on what the consumers would expect from the brand. State of health and the type of products people would like to buy constitutes one of the most important macro-economic factors affecting the company. Lifestyle changes, shift in product and services preferred are changing at increasing pace and Big Bazaar needs to ensure to chase down the same pace in order to sustain, serve and maintain its loyal customer base. The attitude of people towards saving their money for future or investing in different industries must also be looked upon. All these factors need to be considered not only for determining business operations but also for choosing the right marketing campaigns to position the brand in the minds of potential customers.

25. Pestel Analysis Big Bazaar Technological Factors: Accepting all modes of payments would be one technological factor that would affect Big Bazaar a lot with the increase in number of upcoming applications, UPI’s, Wi-Fi cards and various other methods of payments. Adapting to the speed of technological innovations is thus a major factor. Developing a fast-billing system would also involve using the latest and the best technology to maintain operational efficiency. Providing online services through well-developed applications is also a key pointer for Big Bazaar to survive in the long run. Other facilities like home delivery, ease of shopping, ambience, and supply chain management must be taken care of. Technology would be impacting the company in two ways, directly via the technological factors affecting the industry and indirectly via the affect of technological factors on the individual brands which it sells. Technological trends awareness is another factor that could help to boost sales by taking the first mover advantage or quickly adapting to industry trends via digital marketing and various other sources.

26. Pestel Analysis Big Bazaar Legal Factors: Employee laws and consumer protection laws would have major impact on Big Bazaar as the business model requires engagement of large number of employees and it needs to take care of its customers and their problems even after sales. The expiry dates of products and quality check of products should be done on regular basis depending on the requirement of each category. Business laws need to be analyzed before opening stores in certain areas. As there are several customers who would be visiting the stores on daily basis, safety regulation and protective measures must be in place. Trade practices of the location they are operating in must be abided by and ensure best service, quality and products to obtain a competitive advantage over competitors. This would help them avoid any legal challenges which in turn also take a lot of time to conclude.

27. Pestel Analysis Big Bazaar Environmental Factors: Proper waste management is one of the major environmental macro-economic factors affecting Big Bazaar. Regular assessments of products expiry must be done, and products not sold must be disposed in an organized manner. Focus must shift to spending on renewable technologies and adapt to eco-friendly methods. The selection of location must also be appropriate such that the environment is not affected. Another major area to focus for the brand is in the type of carry bags it provides and the bills it prints. It should discourage excess printing. Big bazaar should also convince the brands that they sell to adapt to greener packaging and contribute to corporate social responsibility as a result. This could be mostly directed towards the fast-moving consumer goods sector so as to minimize non-degradable wastes.

28. Conclusion On the concluding note, we hope you would have understood how India’s one of the oldest and largest hypermarket chains channelize its business model adeptly. Big Bazaar is undoubtedly the number one retailer in India. It has built a very emotional and cordial relationship with its customers. It is also very intending to built long-term relationship with all its stakeholders, which is very essential for a successful business venture. It is observed that the organization hierarchy is professional as all the departmental Managers directly report to the store manager who in turn reports to the Zonal Head. Big Bazaar, with 25 years of experience in the field of weaving fabrics, is the leading Apparels and fashion design fabric company. The company is reaching out to all the sections of the society as it is creating a hypermarket where not only the rich people shop but also the middle and the lower-class customers come to enjoy the whole shopping experience. Moreover, the customer friendly ambiance and the organized retailing of products also make Big Bazaar one of the successful retail industries in India.

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