Introduction:

The Indian retail industry has emerged as one of the most dynamic and fastpaced industries due to the entry of several new players. It accounts for over
10 per cent of the countrys Gross Domestic Product (GDP) and around 8 per
cent of the employment. India is the worlds fifth-largest global destination in
the retail space.

Market Size:
Indias retail market is expected to nearly double to US$ 1 trillion by 2020
from US$ 600 billion in 2015#, driven by income growth, urbanisation and
attitudinal shifts.While the overall retail market is expected to grow at 12 per
cent per annum, modern trade would expand twice as fast at 20 per cent per
annum and traditional trade at 10 per cent#.
Indias Business to Business (B2B) e-commerce market is expected to reach
US$ 700 billion by 2020 whereas the Business to Consumer (B2C) ecommerce market is expected to reach US$ 102 billion by 2020.## Online
retail is expected to be at par with the physical stores in the next five years.
India is expected to become the worlds fastest growing e-commerce market,
driven by robust investment in the sector and rapid increase in the number
of internet users. Various agencies have high expectations about growth of
Indian e-commerce markets. Indian e-commerce sales are expected to reach
US$ 120 billion! by 2020 from US$ 30 billion in FY2016.Further, India's ecommerce market is expected to reach US$ 220 billion in terms of gross
merchandise value (GMV) and 530 million shoppers by 2025, led by faster
speeds on reliable telecom networks, faster adoption of online services and
better variety as well as convenience@.
Indias direct selling industry is expected to reach a size of Rs 23,654 crore
(US$ 3.51 billion) by FY2019-20, as per a joint report by India Direct Selling
Association (IDSA) and PHD.

Investment Scenario:
The Indian retail trading has received Foreign Direct Investment (FDI) equity
inflows totaling US$ 537.61 million during April 2000March 2016, according
to the Department of Industrial Policies and Promotion (DIPP).
With the rising need for consumer goods in different sectors including
consumer electronics and home appliances, many companies have invested
in the Indian retail space in the past few months.

International Finance Corporation (IFC), the investment arm of The

World Bank, plans to invest up to Rs 134 crore (US$ 19.86 million) in

Kishore Biyani's Future Consumer Enterprises Ltd, which is expected to

aid the company in driving its growth plans.

Amazon India has opened six new fulfillment centres across Chennai,
Coimbatore, Delhi, Jaipur and Mumbai, which will open up 5.5 million
square feet of storage space for sellers on the marketplace who use
the Fulfilled by Amazon service.

IKEA, the worlds largest furniture retailer, plans to invest Rs 10,500

crore (US$ 1.56 billion) to set up 25 stores across India and hire over
15,000 permanent employees and 37,500 temporary employees to
assist in running its stores.

Aditya Birla Fashion and Retail Limited (ABFRL) has announced that it
will acquire exclusive online and offline rights of Forever 21, an
American fast fashion brand, in the Indian market.

Massimo Dutti, a premium fashion brand from Spain offering

sophisticated womenswear, menswear, footwear and accessories, has
entered India by opening its first store at the Select Citywalk mall in
New Delhi.

KartRocket, a Delhi based e-commerce enabler has completed its US$

8 million funding round by raising US$ 2 million from a Japanese
investor, which will be used to enhance Kraftly, a mobile-first online-tooffline marketplace targeting small sellers, individuals and home-based
entrepreneurs in India in product categories such as apparel and
accessories.

PurpleTalkInc, a US based mobile solutions company, has invested US$

1 million in Nukkad Shops, a Hyderabad based uber-local commerce
platform that helps neighbourhood retail stores take their businesses
online through a mobile app.

Mumbai-based baby care and kids products e-tailer, Hopscotch.in, has

raised US$ 13 million in a Series C round of funding from Facebook cofounder Mr Eduardo Saverin, which will help the firm in growth and
expansion of its technology platform.

Gurgaon-based e-commerce firm Shopclues has raised US$ 150 million

from Singapore government's GIC and its existing investors Tiger
Global and Nexus Venture Partners, at a valuation of US$ 1.1 billion,
thereby becoming the latest among several e-commerce companies
from India reaching a billion dollar valuation.

Amazon India expanded its logistics footprint three times to more than
2,100 cities and towns in 2015, as Amazon.com invested more than
US$ 700 million in its India operations since July 2014.

Adidas AG, reknowned for its Adidas and Reebok sports brands, has
become the first foreign sports company to get government approval
to open 100 per cent foreign-owned stores in India.

Walmart India plans to add 50 more cash-and-carry stores in India over

the next four to five years.

Textile major Arvind Limited has announced a partnership with

Sephora, owned by LVMH Moet Hennessy Louis Vuitton, a French luxury
conglomerate, in order to enter into the beauty and cosmetics
segment.

Mobile wallet company MobiKwik has partnered with Jabong.com to

provide mobile payment services to Jabongs customers.

DataWind partnered with HomeShop18 to expand its retail footprint in

the country. Under the partnership, HomeShop18 and DataWind would
jointly launch special sales programmes across broadcast, mobile and
internet media to provide greater access to the latters tablet range.

Aditya Birla Retail, a part of the US$ 40 billion Aditya Birla Group and
the fourth-largest supermarket retailer in the country, acquired Total
hypermarkets owned by Jubilant Retail.

With an aim to strengthen its advertising segment, Flipkart acquired

mobile ad network AdiQuity, which has a history of mobile innovations
and valuable experience in the ad space.

Government Initiatives:
The Government of India has taken various initiatives to improve the retail
industry in India.

Government of India has allowed 100 per cent Foreign Direct

Investment (FDI) in online retail of goods and services through the
automatic route, thereby providing clarity on the existing businesses of
e-commerce companies operating in India.

The Government of Andhra Pradesh signed pactsworth Rs 1,500 crore

(US$ 222.36 million) in a wide range of sectors including retail and
steel and gas with Walmart India, Future Group, Arvind Lifestyle Brands
Ltd and Spencers Retail, during the Partnership Summit in

Visakhapatnam, while also unveiling a retail policy aimed to attract

retail businesses to invest in the state.

The Ministry of Urban Development has come out with a Smart

National Common Mobility Card (NCMC) model to enable seamless
travel by metros and other transport systems across the country, as
well as retail purchases.

The Government of India has accepted the changes proposed by

RajyaSabha select committee to the bill introducing Goods and
Services Tax (GST). Implementation of GST is expected to enable easier
movement of goods across the country, thereby improving retail
operations for pan-India retailers.

The Road Ahead:

E-commerce is expanding steadily in the country. Customers have the ever
increasing choice of products at the lowest rates. E-commerce is probably
creating the biggest revolution in the retail industry, and this trend would
continue in the years to come. Retailers should leverage the digital retail
channels (e-commerce), which would enable them to spend less money on
real estate while reaching out to more customers in tier-2 and tier-3 cities.
Both organized and unorganized retail companies have to work together to
ensure better prospects for the overall retail industry, while generating new
benefits
for
their
customers.
Nevertheless, the long-term outlook for the industry is positive, supported by
rising incomes, favorable demographics, entry of foreign players, and
increasing urbanization.
The Indian retail industry is one of the fastest growing in the world. Retail
industry in India is expected to grow to US$ 1.3 trillion by 2020, registering a
Compound Annual Growth Rate (CAGR) of 16.7 per cent over 2015-20.
India is the fifth largest preferred retail destination globally. The country is
among the highest in the world in terms of per capita retail store availability.
Indias retail sector is experiencing exponential growth, with retail
development taking place not just in major cities and metros, but also in TierII and Tier-III cities. Healthy economic growth, changing demographic profile,
increasing disposable incomes, urbanization, changing consumer tastes and
preferences are the other factors driving growth in the organized retail
market in India.
Indias population is taking to online retail in a big way. The online retail
market is expected to grow from US$ 6 billion to US$ 70 billion during FY15FY20.

Future Group conglomerate:

Future Group:
Future Group is Indias leading business group that caters to the entire
Indian consumption space. Led by Mr. Kishore Biyani, the Future Group
operates through six verticals: operates through six verticals: Retail, Capital,
Brands, Space, Media and Logistics.
Apart from Pantaloon Retail, the groups presence in the retail space is
complemented by group companies, Indus League Clothing, which owns
leading apparel brands like Indigo Nation, Scullers and Urban Yoga, and
Galaxy Entertainment Limited that operates Bolwing Co, Sports Bar and Brew
Bar ,
The groups joint venture partners include French retailer ETAM group, USbased stationary products retailer, Staples and UK-based Lee Cooper. Group
Company, Planet Retail, owns and operates the franchisee of international
brands like Marks & Spencer, Next, Debenhams and Guess in India. The
groups Indian joint venture partners include, Manipal Healthcare,
Talwalkars, Blue Foods and Liberty Shoes.
Future Capital Holdings, the groups financial arm, focuses on asset
management and consumer credit. It manages assets worth over $1 billion
that are being invested in developing retail real estate and consumer-related
brands and hotels. The group has launched a consumer credit and financial
supermarket format, Future Money and soon plans to offer insurance
products through a joint venture with Italian insurance major, Generali.
The group is currently developing over 50 malls and consumption centers
across the country and has formed a joint venture company focusing on mall
management with Singapore-based CapitaLand, one of Asias largest
property companies Future Groups vision is to, deliver Everything,
Everywhere, Every time to Every Indian Consumer in the most profitable
manner. The group considers Indian-ness as a core value and its corporate
credo is - Rewrite rules, Retain values.

Future the word which signifies optimism, growth, achievement, strength,

beauty, rewards and perfection. Future encourages us to explore areas yet
unexplored, write rules yet unwritten; create new opportunities and new
successes. To strive for a glorious future brings to us our strength, our ability
to learn, unlearn and re-learn our ability to evolve.
The motto of Future Group, to not to wait for the Future to unfold itself but
create future scenarios in the consumer space and facilitate
consumption because consumption is development. Thereby, it will effect

socio-economic development for their customers, employees, shareholders,

associates and partners. Their customers will not just get what they need,
but also get them where, how and when they need. They are not just
posting satisfactory results, they are writing success stories.
Future Group has six business pillars:
Future Retail:
All the retail lines of business like food fashion and home will come under this
vertical.
Future Brand:
Custodian of all the present and future brands that are either developed or
acquired by the group.
Future Space:
Will have a presence in property and mall management.
Future Capital:
Will provide consumer credit and micro finance services, including marketing
of MFs and insurance policies, and management of real estate and consumer
fund.
Future Media:
Will focus on revenue generation through effective selling of retail media
spaces.
Future Logistic:
To drive efficiencies across businesses via better storage and distribution.

Group Vision:
Future Group shall deliver Everything, Everywhere, Every time for Every
Indian Consumer in the most profitable manner.

Group Mission:
Future Group shares the vision and belief that their customers and
stakeholders shall be served only by creating and executing future scenarios
in the consumption space leading to economic development.

They will be the trendsetters in evolving delivery formats, creating retail

realty, making consumption affordable for all customer segments - for
classes and for masses.
They shall infuse Indian brands with confidence and renewed ambition.
They shall be efficient, cost- conscious and committed to quality in whatever
they do.
They shall ensure that their positive attitude, sincerity, humility and united
determination shall be the driving force to make them successful.

Core Values:
Indian ness: Confidence in themselves.
Leadership: To be a leader, both in thought and business.
Respect and Humility: To respect every individual and be humble in their
conduct.
Introspection: Leading to purposeful thinking.
Openness: To be open and receptive to new ideas, knowledge and
information.
Valuing and Nurturing Relationships: To build long-term relationships.
Simplicity and Positivity: Simplicity and positivity in their thought,
business and action.
Adaptability: To be flexible and adaptable, to meet challenges.
Flow: To respect and understand the universal laws of nature.

Company overview:

Big Bazaar is a chain of hypermarket in India, which caters to every familys

needs and requirements. This retail store is a subsidiary of Future group,
Future value retail LTD. and is an answer to the United States Wal-Mart. Big
Bazaar has released the doors for the fashion world, general merchandise
like sports goods, cutlery, crockery, utensils, and home furnishings etc. at
best economical prices.
Big Bazaar group offers more than 240 stores all over the country with an
amalgamation of Indian bazaars feel and touch with a convenience and
choice of the modern retail facilities. The retail format of the Big Bazaar
group includes Aadhar, Rural & Home-Town retail chain, Ezone homeimprovement chain, sportswear retailer, depot and music chain is few among
others.

History of Big Bazaar:

Big Bazaar, is formed by CEO of Future Group, Mr. Kishore Biyani. The group
do not promises more than what it delivers. Their basic attraction associated
with reasonable prices is their Unique Selling Price.
Though, the products Big Bazaar stores stocks might not be advanced, but
the customers are assured to avail the worth of the money spent by them. In
2001, the group opened its first store on the VIP Road, Calcutta, which was
the primary departmental store offering regulated services of parking, steel
vessels, apparel, electronics etc under the one roof at the competitive prices.
Big Bazaar has become a massive hit with lower middle-class and middle
class people as a major client base.
At present, the Future Group comprises various formats and brands like
Copper Chimney, Etam, Staples, One Mobile, Urbana, Brand Factory,
LootMart, HomeTown and Central. The Big Bazaar has several stores located
all over the India, among that Chennai, Hyderabad, Ahmedabad, Bangalore,
Kolkata, Pune, Mumbai and Delhi is those metro cities where the stores of Big
Bazaars are located.

Facilities offered by Big Bazaar:

Online shopping: Big Bazaar has an official website, FutureBazaar.com,
which is one of the most favorite sites among people of India for online
shopping. FutureBazaar is an online business venture of Future Group, which
sells an assortment of products such as fashion, which includes merchandise
for men and women, mobile accessories, mobile handsets and electronics
like home theatres, video cameras, digital camera, LCD TVs, kitchen
appliances and many more.
Discounts: Hfte ka sabse sasta din was introduced by the Big Bazaar,
wherein extra and special discounts were offered on Wednesday every week,
to attract the potential buyers into their store.

Security check: At each exit of Big Bazaar, they use alarm systems or
Electronic Article Surveillance system, which detects the products that has
attached tags or not.

Theme for a mall:

Although the retail sector in India highly fragmented and consists
predominantly of small, independent, owner- managed shops, it happens to
be the countrys second largest employer after agriculture. The country is
currently is currently witnessing a boom in retailing, thanks mainly on
account of an increase in the disposable incomes of middle and upper-middle
class households.
More and more corporate house, including large real estate companies, are
now entering the retail business directly or indirectly. One sign of the
modernization of Indian retailing is the rapid growth in the number of
specialty malls and theme malls. The Piramals, Tatas, Rahejas, ITC,
S.kumars, RPG Enterprises, Aerens, Omaxe and mega retailers like
Crosswords, Shoppers Stop and Pantaloon have taken the lead in organized
retailing.

Emergence of specialty retailing:

Though organized retailing is still at a nascent stage accounting for only
around two percent of the $180 billion retail market in India it is likely to
touch 10 percent by the end of this decade. Four product categories have led
the organized retailing wave: foods, apparel, lifestyle products, consumer
durables and electronics. In recent times, several theme malls such as gold
souk (jewellery malls), Wedding Mall, Electronic Mall, Auto Mall,etccatering to
specific needs and occasions have been completed or announced.
Many top developers are now toying with the idea of developing specialty
malls. Specialty malls are already a success in the West, whereas the
concept is in its infancy in india. One could venture so far as to say speciality
and theme based retailing will drive the growth of organized retailing in
india.

Organized Retailing:
Organized retailing got a leg up during 2004 with the opening of new format
stores, rapid growth of existing players, start-up of new generation shopping
malls, the Governments intention of allowing a certain level of foreign direct
investment in retail and the formation of the a retailers association. With
consumer sentiment positive during most of 2004, it led to substantial
spending across a number of categories such as consumer durables, clothing
and lifestyle, automobiles and telecom product. At the beginning of this
decade, organized retailing account for a mere $2.9 billion in India. This is
only 1.25 percent of the estimate total retail market. This share has already

grown to 2 percent. Growth projections for retail business vary widely. Some
studies estimated that by 2007, the share of organized retail in the retail pie
will jump three times to reach 5-6 percent.

Retail in India largest industry accounting for over 10% of the country GDP
and around 8% of the employment. Retail industry in India is at the cross
road. It has emerged as one of the most dynamic and fast paced industries
with several player entering the market. The future is promising the market
is growing government policies are becoming more favorable and emerging
technology and facilitating operations.
Some key facts retail in India largest industry accounting accounting for over
10% of the country GDP and around 8% of the employment.

Objective of Big Bazaar:

The central objective for earlier businesses of Big Bazaar w was to
bring in stability and consolidation. They were built to enforce order.
However, in the new era where nothing remains constant, the
dominant theme for businesses needs to be speed and imagination.
The new macro-differentiator can be design. Design is helping
companies to sell differentiated experiences and solutions that connect
with the consumers emotions. Its no longer about selling products
and services alone. Nor is it just about completing transactions. Every
time a customer walks in, it is an opportunity to build a relationship
and invite the customer to become a part of the transformational
scenario. Design management is helping us position the customer at
the center of every decision we take and also operate with true
entrepreneurial spirit.

Target customers:
Big Bazaar targets higher and upper middle class customers because there
has been growth in Indian middle class that has so far been used to buying
apparel and groceries from small and cluttered neighborhood market shops
is fast realizing the joys of visiting malls that have redefined the freedom to
shop and entertain. Such malls are the new temples of leisure and weekend
entertainment. Indias National Council for Applied Economic Research
estimates that the nations middle class population currently comprises
about 17 million households 90 million people with annual earnings
ranging between $4,500 (2,400) and $22,000 (11,736). An additional 287
million could be termed as aspirers or those that hope to join the middle
class in the near term. Rising incomes, particularly in the lower and middleincome households, are impacting retail growth in India as these groups tend

to spend more on upgrading and diversifying their lifestyles, eating out and
moving on to processed and convenience foods.

Targeting young working class:

The large and growing young working population is a preferred customer
segment for Big bazaar. These young people are early adopters of most
modern product lines.
The ongoing boom in sectors such as information technology and business
process outsourcing has created a clientele with high disposable income and
a increased demand for lifestyle merchandise such as watches, cosmetics
and perfumes. This is a much-travelled and brand-savvy urban population.
Interestingly, an estimated 40-50% of the Indian working womans salary is
spent on apparel and footwear. Eating out, mobile phones and accessories
make up the other leading spending options. Big Bazaar specifically target
young, working professionals, home makers who are primary decision maker.

Value for money:

All our lines of business are consumer centric and I believe that if we are to
be in the larger consumer space, we would need to keep changing, evolving
and accordingly be flexible in our business plans. Consumers are the same
everywhere; we are only bound by our social systems. Their desires, greeds
and needs are similar. The value for money proposition is so ingrained in the
Indian consumers mind that he needs to be shown true value all the time.
Therefore, all our current and future businesses would necessarily have the
common
denominator
as
the
consumer.
All our alliances and relationships with many companys have been built,
keeping the synergies of business and consumer offerings in mind.
Image:
Is se sasta aur accha kahin nahi Nothing captures the sprit of Big Bazaar
better than this one liner. It is a simple statement and yet it positioned at the
top of Indian customers mind. It shows that big bazaar was built on the
foundation of entrepreneurship and simplicity. They believe in service and
value for the customers. They consider that it is their only duty to keep
customer in mind at every step, they go that extra mile and buy directly from
source in bulk so that they can get best rates by keeping the margin low
Big Bazaar is constantly on the lookout for finding new ways and means to
improve the current state of affairs. Thus, innovation is a very important
aspect of their working strategy. The other very important philosophy is that
of Indianness. All the concepts and formats as well as the way of doing
things are very Indian. The way Big Bazaar is designed and the way the
whole concept has developed reflects a sense of Indianness.

Swot Analysis Of Big Bazaar:

A SWOT analysis is done to know the strengths, weaknesses, opportunities

and threats of any company. This analysis will explain about the strengths,
weaknesses, opportunities and threats of big bazaar.
Strengths of Big bazaar:

Large variety option

Cheap price
Huge customer Base
Volume sales

Weaknesses of Big bazaar:

Lacks in branded products
Low in product quality
Unable to provide enough parking space to its customers
Threats for Big bazaar:
Opening up of other discounted stores like Vishal mega mart
Convenience of customers to nearby kirana stores
Availability of products in other retail outlets
Opportunities for Big bazaar

To open up more and more number of big bazaars in different

cities of the country.
To grab the rural market
To bring in the customers of other retail outlet by dealing with
branded products.
Add more products to its product category

Marketing Mix Of Big Bazaar:

Product:- Big Bazaar offers a wide range of products which range from
apparels, food, farm products, furniture, child care, toys, etc. of various
brands like Levis, Allen Solly, Pepsi, Coca-Cola, HUL, ITC, P&G, LG, Samsung,
Nokia, HP etc. Big Bazaar also promotes a number of in house brands like:1.DJ&C
2.TastyTreat
3.CleanMate
4.Sensei
5.Care Mate
6.Koryoand44otherbrands.

Pricing:- The pricing objective at Big Bazaar is to get Maximum Market

Share.
Pricing

at

Big

Bazaar

is

based

on

the

following

techniques:-

Value Pricing ( EDLP Every Day Low pricing ):- Big Bazaar promises
consumers the lowest vailable price without coupon clipping, waiting for
discount promotions, or comparison shopping
Promotional Pricing:- Big Bazaar offers financing at low interest rate. The
concept of psychological discounting ( Rs.99, Rs.49, etc. ) is also used to
attract customers. Big Bazaar also caters on Special Event Pricing ( Close to
Diwali, Gudi Padva and Durga Pooja ).
Differentiated Pricing:- Differentiated pricing, i.e., difference in rate based
on peak and non-peak hours or days of shopping is also a pricing technique
used in Indian retail, which is aggressively used by Big Bazaar. For example,
Wednesday Bazaar.
Bundling :- It refers to selling combo-packs and offering discount to
customers. The combo-packs add value to customer and lead to increased
sales. Big Bazaar lays a lot of importance on bundling. For example 3 Good
Day family packs at Rs.60 ( Price of 1 pack = Rs.22 ), 5 kg oil + 5 kg rice + 5
kg sugar for Rs.599.

Place:- The Big Bazaar stores are operational across three formats
hypermarkets spread over 40,000 - 45,000 sq.ft. , the Express format over
15,000 - 20,000 sq.ft. and the Super Centers set up over 1 lakh sq.ft.
Currently Big Bazaar operates in over 34 cities and towns across India with
116 stores. Apart from the metros these stores are also doing well in the tier
II cities. These stores are normally located in high traffic areas. Big Bazaar
aims at starting stores in developing areas to take an early advantage before
the
real estate value booms. Mr. Biyani is planning to invest around Rs.350
crores over the next one year expansion of Big Bazaar. In order to gain a
competitive advantage Big Bazaar has also launched a website
www.futurebazaar.com, which helps customers to orders products online
which will be delivered to their doorstep. This helps in saving a lot of time of
its customers.

Promotion:- The various promotion schemes used at Big Bazaar include:1. Saal ke sabse saste 3 din.
2. Hafte ka sabse sasta din Wednesday bazaar.
3. Exchange Offers Junk swap offer.
4. Future card ( 3% discount ).
5. Shakti card.
6. Advertisement ( print ad, TV ad, radio ).
7. Brand endorsement by M S Dhoni and Asin.
8. Big Bazaar has come up with 3 catchy lines written on hoardings taking on
biggies like Westside, Shoppers stop and Lifestyle. They are:a) Keep West - aSide. Make a smart choice!
b) Shoppers! Stop. Make a smart choice!
c) Change your Lifestyle. Make a smart choice!

People:1. Well trained staff at stores to help people with their purchases.
2. Employ close to 10,000 people and employ around 500 more per month.
3. Well - dressed staff improves the overall appearance of store.
4. Use scenario planning as a tool for quick decision making multiple
counters for
payment, staff at store to keep baggage and security guards at every gate,
makes
for a customer friendly atmosphere.
Process:- Big Bazaar places a lot of importance on the process right from
the purchase to the delivery of goods. When customers enter the stores they
can add the products they which to purchase in their trolley from the racks.
There are multiple counters where bill can be generated for purchases made.
Big Bazaar also provides delivery of products over purchases of Rs.1000.
Physical Evidence:- Products in Big Bazaar are properly stacked in
appropriate racks. There are different departments in the store which display
similar kind of products. Throughout the store there are boards/written
displays put up which help in identifying the location of a product. Moreover
boards are put up above the products which give information about the
products, its price and offers. Big Bazaar stores are normally U shaped and
well planned & designed.

Big Bazaars 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. In the world of cut throat competition,
corporate use extension of the same strategy in marketing. Corporate
likeCoke, Pepsi, etc. have been using the same for quite some time now and
the latest entrant is our very own 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 Tatas Westside. In order to do the
same, Future Group have come up with 3 catchy and cheeky ad campaigns
which surely do catch our eyes and surely one cant resist appreciating the
same.
1. Keep West-aSide. Make a smart choice!
2. Shoppers! Stop. Make a smart choice!
3. Change Your Lifestyle. Make a smart choice!

Advertising:- The departmental store chain Big Bazaar has launched a

commercial sometime back to promote 'The Great Exchange Offer'. The
commercial portrays how customers can exchange any old and broken items
(junk) and get new products at a discounted price from Big Bazaar. The 30
seconds film unfolds through the eyes of a cabbie in a busy city street, he is
intrigued by the disruptive visual of a well-dressed office executive carrying a
bundle of old newspaper and walking through a crowded place. The cabby
then notices a young office going lady in western wear carrying a rusty
bucket filled with broken utensils, the cabbie is absolutely confounded but
continues to follow her with a broken tyre in his hand and comes across
another absurd situation of a highly placed executive in a chauffeur driven
car with a broken commode on the top of the car. Penultimate situation
reveals everybody is heading towards Big Bazaar for the exchange offer; the
cabbie comes out of the store happy and excited after getting an amazing
deal for his junk tyre. Moving images are interspersed with supers that hilight the amazing prices a consumer can get for his junk. The sound track
uses a typical kabada guy's shout as he walks through city street calling for
junk. The month of January and February is generally a low-key affair in
terms of customer footfalls and revenue generation. Innovative, out of the
box
promotions
is
one
of
the
effective ways to draw customer attention and shore up the revenue.
Historically exchange schemes have been used to induce better sales, it also
has a strong appeal with the Indian mindset of getting value even for their
junk, states an official release from Big Bazaar.
Brand Ambassador:- A brand ambassador is a celebrity ( or an attractive
or interesting person ) used to help advertise a product or services. Big
Bazaar, has roped in cricketer Mahendra Singh Dhoni as the brand
ambassador for its new range of fashion apparel. Dhoni would feature in a
series of advertisements across all media. Dhoni and Big Bazaar have a lot of
synergies as the Indian one-day international teams captain stands for the
aspirations of youths, while Big Bazaar is looked up to by millions of Indians
to fulfill their aspirations. In this way, Big Bazaar make full use of the
marketing mix for a new venture hich earlier belongs to the unorganized
retail sector, i.e., kirana stores. Application of the best marketing practices
helps Big Bazaar in a great way.
SPECIAL STRATEGIES:1. To minimize retailing cost.
2. Operating:- Fewer staff on the floor; one person for every 500 sq.ft.
3. Minimize the furniture cost.
4. Saving shelf space.
5. Way to deal unsold stock off.
6. Todays Price:- Everyday a chosen product is being sold at lower than

usual
price

Customer Satisfaction:Satisfaction is an overall psychological state that reflects the evaluation of a

relationship between the customer/consumer and a company-environmentproduct-service. Satisfaction involves one of the following three
psychological
elements:cognitive
(thinking/evaluation),
affective
(emotional/feeling) and behavioral. "Satisfaction" itself can refer to a number
of different facts of the relationship with a customer. For example, it can refer
to any or all of the following:1. Satisfaction with the quality of particular produc or service
2. Satisfaction with on going business with relationship
3. Satisfaction with the price performance ratio of a product or service

Expectations And Consumers Satisfaction:Expectations are beliefs (likelihood or probability) that a product/service
(containing certain attributes, features or characteristics) will produce certain
outcomes (benefits values) given certain anticipated levels of performance
based on previous affective, cognitive, and behavioral experiences.
Expectations are often seen as related to satisfaction and can be measured
as follows:1. IMPORTANCE:- Value of the product/service fulfilling the expectation.
2. OVERALL AFFECT-SATISFACTION EXPECTATIONS:- Like/Dislike of
the product/service.
3. FULFILLMENT OF EXPECTATIONS:- The expected level of
performance vs. the desired expectations. This is Predictive
Fulfillment and is a respondent-specific index of the performance level
necessary to satisfy.
4.EXPECTED VALUE FROM USE:- Satisfaction is often determined by
the frequency of use. If a product/service is not used as often as
expected, the result may not be as satisfying as anticipated. For
example a motorcycle that sits in the garage, an unused year
subscription to the local fitness center/gym, or a little used season
pass to a ski resort would produce more dissatisfaction with the
decision to purchase than with the actual product/service.

STRATEGIES OF BIGBAZAAR TO SATISFY AND ATTRACT:

CUSTOMERS:1. WednesdayBazaar: -Big Bazaar introduced the Wednesday Bazaar
concept and Promoted it as Hafte Ka Sabse Sasta Din. It was mainly to
draw customers to the stores on Wednesdays, when least number of
customers are observed. According to the chain, the aim of the concept
is "to give homemakers the power to save the most and even the stores
in the city don a fresh look to make customers feel that it is their day".
2. Sabse Sasta Din:- With a desire to achieve sales of Rs.26 crores in a
one single day, Big Bazaar introduced the concept of "Sabse Sasta Din".
The idea was to simply create a day in a year that truly belonged to
Big Bazaar. This was launched on January 26, 2006 and the result was
ceptional that police had to come in to control the mammoth crowd.
The concept was such a huge hit that the offer was increased from one
day to three days in 2009( 24 to26Jan) and to five days in 2011 ( 22 - 26
Jan ).

3. Maha Bachat: - Maha Bachat was started off in 2006 as a single day
campaign with attractive promotional offers across all Big Bazaar stores. Over
the years it has grown into a 6 days bi-annual campaign. It has attractive offer
sin All its value formats such as Big Bazaar, Food Bazaar, Electronic Bazaar
and Furniture Bazaar - catering to the entire needs of a consumer.
4.
The Great Exchange Offer: - On February 12, 2009 Big Bazaar launched
The Great Exchange Offer", through which the customers can exchange their old
goods In for Big Bazaar coupons. Later, consumers can redeem these coupons
for brand New goods across the nation.

Retention Strategy:
Big Bazaar strive to foster a feeling of well-being in their employees
through care and respect, BigBazaar have several structured processes
including employee mentoring and grievance management programmers
which are intended to facilitate a friendly and cohesive organization
culture. O -site activities are encouraged to improve interpersonal
relationship. Big Bazaar also acknowledge the e orts exerted by their
employees by organization an annual celebration called 'Pantaloons Day'
where Big Bazaar recognize employees who have shown exceptional
talent, sincerity .
Pay-back Card: - At Future Group Big Bazaar, we believe in building longlasting relationships with customers. We encourage repeat customer visits
through our unique offers and special sale days. Future Group has taken the
whole concept of
Customer loyalty to the next level by joining hands with PAYBACK. PAYBACK
is Indias largest and one of Europes most successful multi-partner loyalty
programs. With PAYBACK, customers can shop, save and get rewarded. This
program enables consumers to collect millions of points across online and
offline partners with just a single card. Customers can accumulate points
across Future Group formats, thereby making shopping rewarding. Our
formats Big Bazaar, Food Bazaar, Pantaloons, Central, Home Town, zone,
Brand Factory and Future Bazaar are a part of the PAYBACK loyalty program.
T24 Program: - T24 will provide customers with a dual advantage all 24
hours of the day - Shop More, Talk More and Talk More, Shop More.
Shopping and talking on our mobile phones are among the two favorite
activities for all of us in India. With T24, we have been able to develop a
unique customer value proposition that combines these interests of the
aspirational Indian. Customers will get shopping benefits for talking and
talk-time benefits each time they shop. We believe that with our partners,
Tata Teleservices Limited, we have been able to develop a differentiated
offering in the crowded telecom space and also increase the loyalty we
enjoy among the millions of customers who patronize our stores. T24 ( Talk
24 ) tariff plans reflect the competitive per-second rates being offered for
pre-paid customers on Tata Teleservices Limiteds GSM network. In
addition,

Integrated Marketing Communication (IMC):Integrated

marketing

communications (IMC) is an approach to brand communications where

the different modes work together to create a seamless experience
for the Customer and are presented with a similar tone and style that
reinforces the brands core message. Its goal is to make all aspects of
marketing communication such as advertising, sales promotion, public
relations direct marketing, online communications and social media work
together as a unified force, rather than permitting each to work in
isolation, which maximizes their cost effectiveness. IMC is becoming more
significant in marketing Practice
because
of
the
reduced
cost
effectiveness of mass media and media Fragmentation. As consumers
spend more time online and on mobile devices all
Exposures of the brand need to tie together so they are more likely to be
remembered. Increasingly the strategies of brands cannot be understood by
looking solely at their advertising. Instead they can be understood by seeing
how all aspects of their communications ecosystem work together and in
particular how communications are personalized for each customer and
react in real time, as in a conversation. Brand strategies and their tactics
can be viewed on the integrated brands site.

IMC Components of Big Bazaar:1.

The Foundation - is based on a strategic understanding of the
product and market. This includes changes in technology, buyer attitudes
and behavior and anticipated moves by competitors.
2. The Corporate Culture - increasingly brands are seen as indivisible from
the vision, capabilities, personality and culture of the corporation.
3.
The Brand Focus - is the logo, corporate identity, tagline, and style
and core message of the brand.
4. Consumer Experience - includes the design of the product and its
packaging, the product experience (for instance in a retail store) and service.
5. Communications Tools - includes all modes of advertising, direct
marketing and online communications including social media.
6. Promotional Tools - trade promotions, consumer promotions, personal
selling, database marketing and customer relations management, public
relations and sponsorship programs.
7. Integration Tools - software that enables the tracking of customer behavior
and campaign effectiveness. This includes customer relationship
management (CRM) software, web analytics, marketing automation and
inbound marketing software.

Importance of IMC for Big Bazaar: - Several shifts in the

advertising and media industry have caused IMC to develop into a primary
strategy for marketers:-

1. From media advertising to multiple forms of communication.

2. From mass media to more specialized (niche) media, which are centered on
specific target audiences.
3. From a manufacturer - dominated market to a retailer - dominated,
consumer controlled market.
4. From general - focus advertising and marketing to data - based marketing.
5. From low agency accountability
particularly in advertising.

to

greater

agency

accountability,

6. From traditional compensation to performance - based compensation

(increased sales or benefits to the company).
7. From limited internet access to 24/7 internet availability and access to
goods and services.
8. It can create competitive advantage, boost sales and profits, while saving
money, time and stress
9.
IMC wraps communications around customers and helps them move
through the various stages of the buying process. The organization
simultaneously consolidates its image, develops a dialogue and nurtures its
relationship with customers.
10.
This 'Relationship Marketing' cements a bond of loyalty with
customers which can protect them from the inevitable onslaught of
competition. The ability to keep a customer for life is a powerful competitive
advantage.
11.

IMC also increases profits through increased effectiveness.

12.
Carefully linked
reminders, updated

messages

also

help

buyers

by giving

timely

information and special offers which, when presented in a

planned sequence, help
The move comfortably through the stages of their buying process.

13.Finally, IMC saves money as it eliminates duplication in areas such

as graphics
And photography since they can be shared and used in say,
advertising, exhibitions and sales literature.
14. IMC also makes messages more
consistent and therefore more
credible. This reduces risk in the mind of the buyer which, in turn,
shortens the search process And helps to dictate the outcome of
brand comparisons

Porters five forces:

Suggestions For Customer Satisfaction:1.

Store Layout: - The store layout and the assortment of goods is not
the best at Big Bazaar, as the quantity of goods sold is more, the
arrangement and Assortment of goods in the store is the greatest. Hence at
times customers find it hard to find what they require, this leads to is
satisfaction of customers.
2.
Lower Quality of Goods: - As Big Bazaar aims more toward the middle
income group, the quality of goods is not of the highest quality, and
this is sometimes a Disadvantage as some would prefer better quality to the
price, making customers to search for different places.
3. Does Not Appeal to the Elite: -As mentioned above, the main customers
are middle Income and a few high income groups. The elite do not like to
shop at big
bazaar
as the quality of goods is lower and
they would prefer a higher price and get a better brand, this decreases sales
from the elite class
4. Not Acclaimed for Very Good Service: - Big Bazaar is not known for
high class service. The staff recruited is not very well trained and the
billing queues take a long time to move, this irritates customers which
makes them visit the store more seldom.
5. Lower Quality of Goods:- As the store is trying to concentrate
on the middle Income group the type
of products used is not of the
most superior quality and Most of the times nor branded, may this
dissatisfy certain customers.

6. Consumer Satisfaction: - Long queues and lower quality leads to

dissatisfaction of customers. Due to factors mentioned above Big
Bazaar shoppers are not always satisfied, this is not positive for the
company.
Growth:

During the year we added 102 new stores covering 1.5 million square feet of
space and expanded our presence in more than 100 cities across the country.
The total number of customer visits during the year touched 204 million and
same store sales growth in value retailing was 10.2% while in home retailing
was 9.1%.

While business was growing, so has been the profitability. Over the past nine
quarters, both gross margins and operating margins has shown a significant
and consistent improvement. Operating margins have grown from 7.7% to
11% during this period, while gross margins have gained 390 basis points to
28.5%. This has resulted in our EBIDTA growing by

29% during this financial year to ` 1143 crore from 12 months of previous
financial year.

I am also happy to share that not only our standalone retail business, but also
our key subsidiary and joint ventures showed steady transformation and have

become positive. Your company had incubated these companies with

management bandwidth and investments. Almost all of them have now

Started yielding financial returns. Leading the pack among the non-listed
entities is our general insurance joint venture that posted a net profit of

` 60 crore and our supply chain subsidiary that posted a net profit of ` 25
crore.
As we look ahead, we are sure that we will still pursue growth, we will still aim
for audacious growth, but profitable growth. For us, growth from now on will
be disciplined growth. Growth from now on will come from playing on our
strengths. Growth not just from adding space but from a judicious mix of
organic and inorganic growth. Growth will come from partnerships, from
allocating resources in the optimum manner that generates higher return on
capital. We have created the plinth and the foundation. Every stage of growth
from now on will create incremental returns.