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Report on Strategic Analysis and Management at

Report on Strategic Analysis and Management at National Institute of Industrial Engineering PGDIE 40, NITIE, Mumbai
Report on Strategic Analysis and Management at National Institute of Industrial Engineering PGDIE 40, NITIE, Mumbai

National Institute of Industrial Engineering

PGDIE 40, NITIE, Mumbai

Made by –

Rakesh Kumar (81)

Swapnil S Bhure (109)

Sanjay Kumar Jena (120)

Index

1 Company Profile

2 Environmental Appraisal

2 Environmental Appraisal

3 Industry Analysis (PEST Framework)

4 Industry Analysis (Porter’s five force)

5 Critical Success Factor

6 Analysis of Resources, Competence and Culture

7 Big Bazaar's Strategic options

8 Core Competencies

9 Challenges

10 Recommendations

11 References

…………………….Everything, Everywhere, Every time for Every Indian Consumer in the most profitable manner. 1.

…………………….Everything, Everywhere, Every time for Every

Indian Consumer in the most profitable manner.

1. COMPANY PROFILE

Kishore Biyani led the company’s foray into organized retail with the opening up of the Big Bazaar in the year 2001.

It is a unit of Pantaloon Retail (India) Ltd and caters to the Great Indian Middle Class. It was

started as a hypermarket format head quartered in Jogeshwari, Mumbai with approx. 50,000 sqft

of space. Its values and missions are to be the best in Value Retailing by providing the cheapest

prices and hence go the tag-line

“Is se sasta aur achcha kahin nahin”

It sells variety of merchandise at affordable rates, the prices of which it claims are lowest in the

city. Usually the items are clubbed together for offers as on the lines of Wal-Mart and Carrefour,

offer weekend discounts and works on the same economy model as Wal-Mart and has

considerable success in many Indian cities and small towns.

It currently operates out of more than 150 stores and top 25 stores register a cumulative footfall

of 30 lakh a month on an average.

There is always a ‘first mover advantage’ in an upcoming sector. In India, that advantage goes to

“Big Bazaar.” It has brought about many changes in the buying habits of people. It has created

formats which provide all items under one roof at low rates, or so it claims.

Also, with the ever increasing array of private labels, it has opened the doors into the world of

fashion and general merchandise including Home furnishings, utensils, crockery, cutlery, sports

goods and much more at prices that will surprise you. First Food Bazaar format was added as

Shop-In-Shop within Big Bazaar in the year 2002.Big Bazaar and Food Bazaar blend the look,

feel and touch of Indian Bazaar with modern retail concepts of choice, convenience and quality.

And this is just the beginning. Big Bazaar plans to add much more to complete your shopping

experience.

HIERARCHY FUTURE GROUP CAPITAL BRANDS SPACE RETAILS MEDIA LOGISTICS LIFE STYLES VALUE RETAILING RETAILING
HIERARCHY
FUTURE GROUP
CAPITAL
BRANDS
SPACE
RETAILS
MEDIA
LOGISTICS
LIFE STYLES
VALUE
RETAILING
RETAILING
VENTURE
FASHION
STATION

In India Big Bazaar is considered as WAL-Mart of India because of similarities in its strategies with those of Wal-Mart. Few characteristics and unique activities that has been successfully adopted and executed by Big Bazaar are:

TARGET AUDIENCE

Big Bazaar targets higher and upper middle class customers

The large and growing young working population is a preferred customer segment

Targets specifically working women and home makers who are the primary decision makers

BIG BAZAAR-USP:

1Billion population.

Availability of Liquid Cash \Disposable Income among Young Generation

Affordable man power

Craze, Passion among Mr. Customer (Consumer)

More products ….Under ONE roof

Affordable price

Sentiments -To infuse confidence in Indian brands

Schemes-Buy 01 gets one free, 20% dis

etc

2. ENVIRONMENTAL APPRAISAL

EXTERNAL ENVIRONMENTAL FACTORS (4Ps OF MARKETING):

"Marketing" is the promotion of products, especially advertising and branding. Marketing practice tends to be seen as a creative industry, which includes advertising, distribution and selling. Marketing mix is a deciding factor in formulating marketing techniques for the success of a particular brand, commodity or company. The components of marketing mix are:

Product

Price

Promotion

Place

PRODUCT

Big Bazaar offers the maximum variety for each category of product. The product is the same in every store in the city but the brand options are more in Big Bazaar. Also, the quantity for each product is not limited to large packs only. The commodities sold by the retail chain also includes its “own products” (Private Labels) which get a ready distribution network. The own products of Big Bazaar include My World fashion magazine which is not available anywhere else. So costs are low for such products. Also Big Bazaar has adopted different customized products with diverse merchandise.

PRICE

Price is the critical point in a competitive industry. Big Bazaar works on a low cost model. It considers its discounted price as its USP. There is an average discount of 7-8% on all items in respect to their MRP. Prices of products are low because it is able to secure stock directly from the manufacturer. There are huge synergies in terms of bulk purchasing, central warehousing and

transportation. These all factors help this retailer to keep low prices. The startegies followed at Big Bazaar are:

Low margin, High sales volumes

Low Interest Financing

Centralized sourcing

Discount pricing

Value pricing

Promotional pricing-Psychological discounting

-Special event pricing (Republic day)

Differentiated pricing-Time pricing

Bundling

PLACE

Place means the location of the business. Big Bazaar has always worked on low-cost locations. It targets semi-urban population with its placement. Its strategy is to find a cheap location and it never goes for hot spots in the city. It relied on promotional activities to make up for unattractive locations. Another strategy used by Big Bazaar to overcome location disadvantage is use of internet. It has launched a merchandise retailing website www.futurebazaar.com which targets high-end customers ready to use credit cards. The promotion of this website is done through advertisement on Google. The website is put as sponsored link. Startegies adopted for facility allocation are

Initially identifies future/potential development areas

Acquires such areas at an early phase before the real estate value booms

Designed to look crowded

PROMOTION:

Big Bazaar has huge promotion budgets. The biggest idea behind all advertisements is to make people do bulk shopping. There are 2 types of promotional strategies of big bazaar. One is the holistic advertisement which promotes the brand and creates awareness among people. It is not

targeted at promoting each store but only creates an image of Big Bazaar as low-cost shopping option. The store has advertised through TV, road shows and also started reality show-typed promotional campaign “The Big Bazaar Challenge.” Promotions like “Sabse Sasta Din” are a very successful strategy to get footfall. In these products across categories such as apparels, furniture, electronics, utensils and food products at the lowest possible prices, coupled with attractive promotional schemes. Some of the most attractive offers being a 20-litre branded microwave oven with grill for Rs 2,499, jeans and trousers for Rs 199 and HCL laptops for Rs 22,990.

Other type of promotion is the particular store oriented promotion which includes speaking on the loudspeaker in nearby blocks. Leaflets are given in local newspaper. There are promotional efforts even inside the store. Buy 2 Get 1 Free types of promotions are very common. Original prices are cut down and new prices are shown, of which customer takes quick notice. There are loyalty schemes which reward regular clients. Promotion is also done through co-branded credit cards with ICICI bank. Promotional strategies followed at Big Bazaar are:

Monthly Bachat Offers (Offer available at Big Bazaar stores in Hyderabad):

Big Bazaar is offering monthly bachat offers and some of them are:

- Charminar Basmati Rice + Aadhar Sunflower Oil + 5 kgs of refined sugar, each worth Rs.

1080 -

for Rs. 659 only

- Tilda Khush Long Grain Rice (5 kgs) worth Rs. 440 - for Rs. 159 only

- Fortune Sunflower Oil (5 litres) worth Rs. 450 - for Rs. 262 only

- Cow Ghee worth Rs. 200 - For Rs. 189 only

- Britannia Marie Gold (370 grams) Rs. 25 - Buy 1 get Rs. 3 off or Buy 2 get Rs. 8 off

- Buy a Bournvita pouch pack (500 grams) worth Rs. 124 and get a free Britannia Good Day

packet

- Buy Super Cup Tea (1 kg) worth Rs. 240 and get 500 kg worth Rs. 105 free

- Buy Bambino Vermicelli (1 kg) worth Rs. 40 for Rs. 35; and get Bambino Macaroni (180

grams) worth Rs. 12 free

- Buy onions (1 kg) worth Rs. 17 - for Rs. 14.90 only

- Buy potatoes (1 kg) worth Rs. 9.50 - for Rs. 7.90 only

- Buy Surf Excel (2 kg) worth Rs. 280 and get free Vim bar

worth Rs. 12

- Buy Head & Shoulders Shampoo (400 ml) worth Rs. 215 and get a free Head & Shoulders

90 ml men's shampoo worth Rs. 69

Future card (3% Discount)

Baby registry and marriage registry-targeted towards married couple, waiting for marriage

Shakti card

Advertising (Print ads, TV ads, radio)

Tying up with IPL targeting sports lovers

Celebrity endorsements-Brand endorsement by M.S.Dhoni

Exchange offers

Weekend discounts

Point of Purchase promotions

‘Junk’ swap offer-“Exchange anything old for something new”

3. INDUSTRY ANALYSIS (PEST FRAMEWORK)

Political and Legal Factors

A stable government at the centre will facilitate speedy economic recovery and create an encouraging investment climate

Problems of getting subsidy from Octrai and on different taxes like land, water taxes

Problems of taking over properties and real estate

Economical

India, one of the fastest growing economies(6-6.5% GDP growth rate)

Retail Industry to grow to 300 billion by 2010

Increase in the percentage contribution of the service sector to GDP

Increase in the investment on IT with focus on cost minimization

Socio-Cultural Factors

Increase in Nuclear families

People prefer to shop in local stores with the reasonable prices

Increase in working women’s proposition

Life style changes

Shift in Product and service preferences

Increase in Young population

Technological

Technological development for fast billing and the service

Better applications of information technology in the modern retail industry, like in supply chain management, store management, point of sale and customer relationship management

4. INDUSTRY ANALYSIS (PORTER’S FIVE FORCES)

In India, the retail industry accounts for about $350 billion and is growing at a rate of 7% per annum. The organized retail sector or modern retail as it is popularly known, comprises less than 2% of this currently. However, things are changing and rapidly at that. After Kishor Biyani’s foray and tremendous success in this sector almost all the major industrial houses have followed suit. The industry is witnessing tremendous growth and there seems to be enough room for all the players in this attractive industry. For any player in this segment, whether it is small or big it has to undergo threat analysis for its sustenance as described below:

Fig: Porter’s five force framework Rival Threat of Power of Power of Threat of intensity

Fig: Porter’s five force framework

Rival

Threat of

Power of

Power of

Threat of

intensity

entrants

Suppliers

buyers

substitutes

High

High

High

High

Low

Rival intensity

BMI India Retail Report forecasts that total retail sales will grow from INR18.85trn

(US$392.63bn) in 2011 to INR26.64trn (US$674.37bn) by 2014. Strong underlying economic

growth, population expansion, the increasing wealth of individuals and the rapid construction of

organised retail infrastructure are key factors behind the forecast growth. India’s retail market is

growing at a faster rate of 7% and is expected to increase to 15% in 2015. These faster growing

retail segment has attracted many major players like Future group, Reliance Retail, Aditya Birla

Group , Vishal Retails,Bharti and Walmart, Godrej, ITC etc. Big Bazzar which is a part of Future

group will face a tough competition from the other players.

Threat of entrants

Allowing 100% FDI in single brand retailing and 51% FDI in multibrand retailing has attracted many foreign players as well as domestic players to enter into retail industry. The key growth areas include the urban, luxury segment on one end of the spectrum and serving the rural sector

on the other. In addition, government policy encouraging FDI in the segment has resulted in a plethora of international retailers keen on entering the market; American retail giant Wal-Mart has tied-up with Bharti Enterprises and global coffee giant Starbucks' has tied up with PVR Limited. In addition, Carrefour, Boots and others are also expected to come in. The top retail companies in India include the Raheja Group, Reliance Retail, Tata Trent, Future Group, RPG Retail, and Ebony Retail Holdings.

Reforms by India in opening up its economy have greatly improved trade prospects, but major barriers still exist such as regulatory issues, supply chain complexities, inefficient infrastructure, and automatic approval not being allowed for foreign investment in retail. But, some of these are set to change with FDI in multi-brand retail set for approval. So for all retail players in India threat of new entrants is very high.

Bargaining Power of Suppliers

The bargaining power of suppliers varies depending upon the target segment, the format followed, and products on offer. The unorganized sector has a dominant position, still contributing 95% of the total retail market. There are few players who have a slight edge over others on account of being established players and enjoying brand distinction. Since it is a capital intensive industry, access to capital also plays an important part for expansion in the space. Big Bazaar has many local suppliers which provide it flexibility. Due to entry of big players like Wal-mart and other Indian players suppliers are getting more options. So they are demanding more price for their product which is a threat towards Big Bazaar if they are not maintaining long term relationship with their suppliers. Also Big Bazaar has very big suppliers like P&G and HUL which requires different strategy for maintaining relationship. As they have huge market share in FMCG products and most of the retail players want their product, so they play a monopolistic role. So we can say that the bargaining power of supplier is very high.

Bargaining power of customers

Indian customers are very much price sensitive. Along with that because of more number of

players in the market they are getting more options ot

they have wide option available with them easily. Because of wide availability of internet, Indian young population is showing more interest towards e-shopping which also provide them free home delivery. So bargaining power of customers is very high.

Switching cost is very low as

Threat of substitutes

The major threat to organized retail sector is the unorganized retail sector wich still continues to

be 90% of total retail market. Mom and Pop stores present at convenient places help easy access

to customers. Along with that unorganized retail stores provide the credit facility which is not

available in the organized retail sector. Unorganized retial sector also provide free home delivery

to the customers. All these facilities attract customers. But as now a days organized retail sector is expanding at faster rate with wider option available at convenient place and price, which is attracting customers. Hence this threat is considered as low. Availability of bank credit cards has attracted more young customers to shop from organized retails. Statistics says that 25-30% annual growth in retail loans and credit cards in 2011.

5. CRITICAL SUCCESS FACTORS

Present years are the high growth years in retail sphere as market has high potential to sustain growth. The sales are increasing, more and more firms are coming to market, foreign players are entering into retail sector, and pie of organized retail is increasing in retail sector. After completing SWOT analysis about Big Bazaar and market research about the retail industry we concluded certain factors that should be consideredd as critical success factor at Big Bazaar. The critical success factors are:

Branding and Reputation:

Big Bazaar is Indian personification of retail. It's like an Indian bazaar or mandi or mela, the environment created by traders to give shoppers a sense of moment. Its personality is of being an entity away from fancy or pretty and being authentically "no-frills". Kishore Biyani never hired any foreign consultant for Big Bazaar which is evident from Indian-specific personality of the brand. The brand's personality is self-explanatory by its tag-line only. This statement places Big Bazaar at the top of customer's mind. It reflects that entrepreneurship and simplicity are the essence of character of Big Bazaar. To use predatory pricing is not in the personality of Big Bazaar, they never sell goods below the price they have purchased it. Big Bazaar, the "Indian Wal-Mart", is the modern Indian family's favorite store. Big Bazaar symbolizes modern retail, the business which isn't looked up to in our country, is now in the eyes of many multi-national biggies. Big Bazaar has shown a robust growth in recent years.

Building on Core Values:

Core values of Indian-ness, valuing and nurturing relationships, and simplicity shaped the brand. Kishore Biyani always believes in long-term relationships, with customers, suppliers and employees. Once thinking about offering gifts to employees close to Diwali, Kishore Biyani suggested giving them wall-paints to keep their house clean. The paint is used in Indian culture

to keep house clean and brings freshness. The motive behind this was to keep everything clean and bring freshness in organization.

Imbibed Entrepreneurial Spirit in Organization

Decision making power is given to every level of employees at Big Bazaar. Kishore Biyani has given risk-taking power, which led to exposure of entrepreneurial spirit in every employee. Everybody in Big Bazaar operates with speed and confidence when it comes to decision making.

Observing Customers Regularly

Regular customer feedback is also an influential factor for the success of Big Bazaar. The Big Bazaar has a separate team that looks for customer's purchasing pattern and how they like or dislike products, how they approach particular products. For example, unlike other stores where the most expensive and catchy item is placed at the front display, Big Bazaar places the "Value for Money" items at check-out points.

Supplier Management

Big Bazaar, like many other grocery chains companies, sources its goods from local manufacturers who are more competitive on price and volumes. For many years Big Bazaar has been supporting Indian jobs and expertise by encouraging large branded suppliers to develop exclusive production facilities. As a major retailer selling diverse product range, they work with many different suppliers around the world, with employees from many different cultures and ethnic groups. Therefore, it is the company policy and company's main approach to have unique relationships with suppliers. Applying advanced technology in its communications and cooperation with the suppliers, the company aims to control the work of its suppliers and heavily relies on their efficiency. The direct suppliers use a number of sub-contracted suppliers, selected to be best in class in their country. Tesco has established close relationships with the contractors believing that regular and long term orders promote the investment necessary to improve conditions in the supply chain.

6.

ANALYSIS OF RESOURCES, COMPETENCE AND CULTURE

SWOT ANALYSIS

STRENGTHS

LOW PRICE/Different discount scheme: The Big Bazaar Outlets sold a variety of products at prices which is lower than the market price. Almost everything has some kind of discount in Big Bazaar. Consumers accept the fact that they come from faraway places because it is cheap in Big Bazaar for bulk shopping. Big Bazaar is able to secure stock directly from the manufacturer which they are selling as Private label. Big Bazaar gets some extra benefits from manufacturer like display income, Manufacturer discount and Extra Distributor Discount. There are huge synergies in terms of bulk purchasing, central warehousing and transportation. Big Bazaar provides discounts ranging from 6-8%to the market and offers special discounts and offers up to 60% of 1,60,000 products 365 days a year. Price is the basic value propositions at Big Bazaar.

HUGE DISPLAY AREA, avg 30,000sq/ft: Big Bazaar displays all their grocery and all other product that customer can touch and feel the quality. They offer self service.

PRODUCT DIVERSITY: Big Bazaar offers the maximum variety for each category of product and this is cited by the customers as one of the main reasons why they like shopping at the Big Bazaar (Range of apparels, accessories, baby accessories, cosmetics, grocery, vegetables, crockery, dress material, suiting, shirting, footwear, toys, house hold appliances, home textiles, luggage, linens, saris, large product mix. Stocks about 30000 items in over 20 product categories). The product is the same in every store in the city but the brand options are more in Big Bazaar. They have a huge carpet area in an average of 30,000 square feet.

Huge promotional activities undertaken to ensure enough footfall

Infrastructure

Ambience of the Big Bazaar is not like the hypermarket in West, which follows liner layout. It is not only providing good parking ,AC ambience to create a “ no hassle “shopping experience but also designed in a way that it provides a traditional bazaar like environment, where the most Indian feel comfortable.

The customers trust retail chains with quality of the product. They feel food products of Big Bazaar will have no adulteration. This quality is not assured in a kirana store.

High Brand Equity

WEAKNESSES

Store unable to meet the growing consumer demand. General Perception of consumer.

Depend on distribution channel of Brands for products like FMCG.

Lack of strong supply chain like other big player

Perception among consumers

OPPURTUNITIES

Early Entry in Indian Retail

Organized retail

Evolving consumer preferences

Targeting area more prone to developments

Global Expansion

In-Store Experience improvements

THREATS

Government policies like complex sales and excise policies.

Unorganized retail.

Large Foreign Competitors like Wal-Mart, Metro and Domestic player like Reliance.

Burgeoning real estate prices which leads to high rentals.

Economic Conditions

Lowering Margins

7.

Big Bazaar’s STRATEGIC OPTIONS: GENERIC STRATEGIES

The strategic decisions that lead to building of Big Bazaar were:-

Real Estate Game

For a retailer, location is one of the most important things. According to KB, real estate cost should be less than 5 % of total sales of store in order to provide maximum benefits to customer. The strategic decisions to secure spaces before other retailers join in have resulted in cost- saving.

Also, it has created early presence in market.

Nurturing relationships

KB follows strategy to develop trust and nurture relationships with suppliers. This trust led to strategically correct decisions most of the time. Whoever works with Future Group, either leaves in initial deals or continues forever. Use of technology, scenario planning and story- telling Big Bazaar planning and design used advance technologies like scenario planning and storytelling. These techniques were mainly used for store-design layout, store-location selection. The strategy to use user-focused, prototype-based development tool made the brand adapt to the fast-changing external environment.

Design management

Design-led thinking helped Big Bazaar to achieve ‘customer-first’ objective and ultimately lead to better financial performance. Big Bazaar strategy to focus on design led to creation of Idiom, an independent design and consultancy firm, based in Bangalore. They are one of the few organizations in India having economist, ethnographers and sociologists working across various teams as a part of Design management team. Back-end operations, supply chain Harvard Business School just did a case study on Pantaloons' supply chain and it says that Pantaloons' is the most cost-effective supply chain in the world. India may not have a modern supply chain but it definitely has a cost-effective one. Retailers have made use of the existing supply chain.

Big Bazaar’s New Marketing Strategy

Big Bazaar has launched new marketing strategy which is based on Guerrilla Marketing. Guerrilla marketing warfare strategies are a type of marketing warfare strategy designed to wear-down the

enemy by a long series of minor attacks, using principles of surprise and hit-and-run tactics. Attack, retreat, hide, then do it again, and again, until the competitor moves on to other markets. Herein guerrilla force is divided into small groups that selectively attack the target at its weak points. Corporate like Coke, Pepsi, etc have been using the same for quite some time now and the latest entrant is ‘Future Group’- Big Bazaar, Pantaloons, Future Bazaar, eZone are all part of this group and they are taking on the biggies like Shoppers Stop, Lifestyle, and Tata’s Westside.

In order to do the same, Future Group have come up with 3 catchy/cocky and cheeky ad campaigns which surely do catch our eyes and surely one can’t resist appreciating the same.

Keep West-aSide. Make a smart choice!

Shoppers! Stop. Make a smart choice!

Change Your Lifestyle. Make a smart choice!

choice!  Change Your Lifestyle. Make a smart choice!  To minimize Retailing cost:  Operating:

To minimize Retailing cost:

Operating: Fewer staff on the floor-one person for every 500 sq ft

Minimize the Furniture cost

Sourcing: Cut Down 25-30 %

Channel-Cut Down 15-20%

Saving Shelf Space

Way to deal unsold stock off

Plans to have In-Store promotions as well slow-moving products off

To ensure enough pull to snatch away customers from the neighborhood

“Today’s Price”:Everyday a chosen product is being sold at lower than usual price

Big Bazaar Wholesale Club:

Now Save, Even more:

The Big Bazaar Wholesale Club brings to an opportunity to save in bulk as the customers

buy in bulk. In line with the Big Bazaar tradition of providing best deals at best prices, the

Big Bazaar Wholesale Club provides the customers bulk deals at wholesale prices.

An extension of Big Bazaar, the Big Bazaar Wholesale Club offers multi-packs and bulk packs of a select range of merchandise at wholesale prices. The merchandise categories range from Food & FMCG to Home Linen and many more. Customers will not find any merchandise being sold loose/single unit (except fresh) at a Big Bazaar Wholesale Club.

A typical Big Bazaar Wholesale Club is located adjacent to a Big Bazaar in the form of a separate section. The look and feel of a wholesale market is evident in the stores from the stacking styles and use of a lot of hand written signage by chalks on black slates.

It has created ‘Fashion @ Big Bazaar’, a sub-brand, to position the format as much more than food or general merchandise.

8. CORE COMPETENCIES

Big Bazaar faces competition from all the quarters of RPG Spencer Super stores, Reliance fresh stores, Trinethra stores, Food Bazaar. But the main threat and the strategies of Big Bazaar is around the local neighborhood Kirana Stores because this is where the big potential for growth lies. Core competencies of Big Bazaar that enabled it to succeed in this competitive market are:

A choice of more than 20,000 products

Delivery across more than 1500 cities and towns in India covering around 16,000 pin codes

Fast deliveries – tie ups with world leaders in logistics & transportation services

A dedicated Customer Care helpline for any queries

Always offering Manufacturer’s guarantee as opposed to Seller’s guarantee, which most of the other online shopping sites offers

Talks of Quality and Cost

Special emphasis on apparels and life style products

Providing interesting discounts

CORE VALUES

Indian-ness: Confidence in ourselves

Leadership: To be a leader, both in thought and business

Respect & Humility: To respect every Individual and be humble in conduct

Introspection: Leading to purposeful thinking

Openness: To be open and receptive to new ideas, knowledge and information

Valuing and Nurturing relationship: To build and maintain long term relationships

Simplicity & Positivety: Simplicity and positive approach in though, business and actions

Adaptability: To be flexible and adaptable, to meet challenges

9. CHALLENGES

Waiting time in terms of Billing at Big Bazaar outlets is a concern and more so during the weekends. And during our personal observation while observing the operations(Though it was for 3-4 hours which is a short period of time),it was noted that few customers who had little to purchase, left their trolleys due to long queue at the counter.

Long Queues at the Billing counters  The store has too many things at the

Long Queues at the Billing counters

The store has too many things at the same place. The floor plan has to be structurally laid out so that merchandising can be efficiently handled and displayed.

Availability of most exclusive brands under all categories

Product Uniqueness- Offer merchandise of highest quality

After Sale Service

Uniqueness Shopping Experience: The Store personnel should be more friendly and easy approachable, you should also offer drinking water, lime soda or tea to the customers once they enter in the store

Introduce best Promotional campaigns which make sense and also understandable to attract distant city crowd

sense and also understandable to attract distant city crowd Different In-store Promotions  Introduce Best loyalty

Different In-store Promotions

Introduce Best loyalty programs.

10.

RECOMMENDATIONS

After analysing the retail market in India as well as understanding the consumer buying behavior as well as sonsumer understandings few recommendations made which can help big retail players to make sustainable existance in near and far future in the highly cometitive market.

Retailing through Internet & web based technologies.

Big Bazaar needs to focus more on Customer Relationship Management {CRM} and

improved in-store assistance (Building loyal customers base and developing a more

profitable – loyalty cycle).

Customer Care Centre to guide and counsel about customer loyalty program.

Training must be provided to sales personnel not only of their counters but for other

functions also. Job rotation and training will enhance their knowledge, job profile and

boost the morale of employees to effectively perform their duties and the responsibilities.

Stress Buster Exercises must be organized during evenings in sessions as employees have

to stand all throughout the day.

More hoardings could be placed that could bring awareness to people (at metro station).

More brands should be included.

Exchange offers must be made clear as the consumers are often not clear about how to

use them.

Seating arrangements must be made for customers as well as for employees also.

Customers usually face problem in billing their purchased goods. Waiting in long queues

forces them to leave certain products thereby loss of sale to Big Bazaar. So billing

counters must be increased and employees at the billing should be given training so that

they could bill the products in much lesser time and the people at the billing stations

should have the information about the special offers and the events that are being conducted at the store so that the customer inflow can be accordingly handled.

Care to be taken to maintain proper inventory levels and the varieties and offer the customer what is needed rather than offering what is available.(Brands like Nike, Adidas, Reebok,etc)

Invest in supply chain infrastructure

Ease distribution – infrastructure creation

Aggressive expansive plans in II tier cities will open up new world of opportunities

Added on facilities like Home Delivery and to an extent credit it plays an important role in Customer Acquisition and retention programs.

Offer most exclusive brands under all categories

11.

References

1. http://www.articlesbase.com/advertising-articles/big-bazaar-the-brand-building-

challenge-2008037.html

2. http://www.slideshare.net/hemanthcrpatna/a-projects-report-on-effectiveness-of-retailing-

mix-in-big-bazaar

3. IT Happened In India : Kishore Biyani

4. http://www.Flowingdata.com

5. http://www.slideshare.net/theRedIndian/india-retail-2008-big-bazaar-scen