Consumer

Behaviour
────
Comparative
Study
────
Case Analysis

A COMPARATIVE ────
Big Bazaar
STUDY OF ────
2006 vs 2018
BIG BAZAAR IN
2006 VS 2018
Big Bazaar

Group No. 1
Varsha Gupta (A018)
Harshita Rathi (A041)
Simeran Sharma (A050)
Nakul Shelgaonkar (A052)
Khushboo Sukhrani (A059)

Indian Retail In

dustry

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 TABLE OF CONTENTS
Introduction ............................................................................................................................................................... 1 - 15
Indian Retail Industry overview .................................................................................................................................... 3
History ........................................................................................................................................................................ 10
Growth in Indian Retail Sector ................................................................................................................................... 11
SWOT Analysis of Big Bazaar ....................................................................................................................................... 14
Porter’s 5 Forces Model of Indian Retail Industry ..................................................................................................... 15
Company Profile ..................................................................................................................................................... 16 - 26
Mission and Values ..................................................................................................................................................... 16
Major Milestones ........................................................................................................................................................ 17
Objectives.................................................................................................................................................................... 25
Scope ........................................................................................................................................................................... 25
Operation .................................................................................................................................................................... 25
Comparative Modules ............................................................................................................................................. 27 - 35
Categories .................................................................................................................................................................. 27
Cities ............................................................................................................................................................................ 28
Format ......................................................................................................................................................................... 30
Marketing Mix ............................................................................................................................................................. 30
Competitors ................................................................................................................................................................ 31
Business Model ........................................................................................................................................................... 32
Government Policies ................................................................................................................................................... 34
References................................................................................................................................................................... 37

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 INDIAN RETAIL INDUSTRY OVERVIEW

RETAIL INDUSTRY 2006

India’s GDP growth of 9.4 per cent in 2006-07 was the highest posted for over 18 years, reflecting the booming
economy of the country. Growing in tandem with the economy was the Indian retail sector. The sector was on
a high growth trajectory and was expected to grow by more than 27 per cent over the next 5 to 6 years. Retail
was one of India’s largest industries, contributing to about 10 per cent of the GDP and providing employment
to 8 per cent of the nation’s workforce. Indian retail business promises to be one of the core sectors of the
Indian economy, with organized retail sector estimated to grow by 400 per cent of its current size by 2007-08.

Retailing in India is evolving rapidly, with consumer spending growing by unprecedented rates and with
increasing number of global players investing in this sector. Organized retail in India was undergoing a
metamorphosis and was expected to scale up to meet global standards over the next five years.

India’s retail market had experienced enormous growth over the past decade, more than doubling in size to
US$ 311.7 billion in 2005-06. The market was estimated at US$ 1.1 trillion (in PPP terms) in 2005-06. The
most significant period of growth for the sector was between years 2000 and 2006, when the sector revenues
increased by about 93.5 per cent translating to an average annual growth of 13.3 per cent. The sector’s growth
was partly a reflection of the impressive Indian economic growth and overall rise in income levels of
consumers.

Even the introduction of Value Added Tax (“VAT”) in April 2005 has not severely impacted consumer
demand for retail goods. Greater exposure to western products and lifestyles has helped drive consumerism.

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TRADITIONAL AND MODERN RETAILING: THE INDIA STORY

Traditional retailing continued to be the backbone of the Indian retail industry, with traditional/unorganized
retailing contributing to over 95 per cent of total retail revenues. The quintessential mom-and-pop retailing
outlets or the corner- store formats constitute a major part of Indian retail store formats. Over 12 million small
and medium retail outlets exist in India, the highest in any country. More than 80 per cent of these are run as
small family businesses.

Prevalence of traditional retailing was highly pronounced in small towns and cities with primary presence of
neighborhood “kirana” stores, push-cart vendors, “melas” and “mandis”. Organised formats were only in the
initial stages of adoption in these regions. Leading retail players in the industry were beginning to explore
these markets and the rural consumers were slowly beginning to embrace the newer organised retail formats.

Modern/Organised retailing was growing at an aggressive pace in urban India, fueled by bourgeoning
economic activity. Organised retail revenues were expected to increase from an estimated US$ 12.9 billion
per annum in 2005-06 to more than US$ 43 billion by 2009-10. The sector was predicted to grow by 400 per
cent, in value terms, by 2007-08. A large number of domestic and international players were setting up base
and expanding their business with newer organised retail formats and intense competition driving innovation
in formats.

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ORGANISED RETAIL IN INDIA

Organised retail clocked revenues of US$ 12,927 million, compared to total retail sales estimated at US$
311,731 million in 2005-06.

The apparel industry contributed to the largest share of the organised retail pie, with revenues of US$ 4,756
million, owing to the rapidly rising number of malls and introduction of several domestic and international
apparel brands in the country.

The Food and Beverages segment recorded the highest growth over 2004-05, with the proliferation of
supermarkets, hypermarkets and the entry of major players like Reliance Fresh (promoted by Reliance Retail
Ltd). This segment is poised to gain traction, with several new players planning their entry and the existing
players expanding their business in this segment at a rapid pace. The Home Décor segment followed suit
growing at 18 per cent, with a boom in the real estate and housing sector.

Penetration of organised retail was at 4.15 per cent in 2005-06, an increase from the 3 per cent estimated for
2004-05, and was projected to increase to 9.52 per cent in 2009-10, with revenues from organised retail
expected to touch US$ 43,829 million in 2009-10.

Apparel is one of the fastest growing verticals, with the highest number of domestic and foreign brands
mushrooming in the market, and increasing consumer willingness to pay for brand and quality of products.

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FUTURE OUTLOOK

Retail sector revenues was pegged to reach US$ 460.6 billion by 2010-11, with the organized retail sector
projected to grow to US$ 43.8 billion in the said year. It is envisaged that modern retail will adapt and absorb
some of the traditional formats in the course of its expansion. Unorganized retail formats were expected to
converge and combine in formats such as mushrooming village malls and rural retailing ventures.

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RETAIL INDUSTRY 2018

 The retail sector in India is emerging as one of the largest sectors in the economy
 The total market size was estimated to be around US$ 672 billion in 2016, thereby registering a CAGR
of 7.74 per cent since 2000.
 Retail industry is expected to grow to US$ 1.3 trillion by 2020.
 By 2020, food and grocery segment is expected to account for 66 per cent of the total revenues in the
retail sector, followed by apparel segment
 Demand for Western outfits and readymade garments has been growing at 40–45 per cent annually.
 After 2017 being a favorable year for herbal-Ayurveda brands, new Indian organic labels in hair
care, cosmetics, food and apparel are gearing up to establish an organic niche in the growing herbal
segment.

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ORGANIZED RETAIL

 Organised Retail Penetration (ORP) in India is low (7 per cent) compared with that in other countries,
such as the US (85 per cent). This indicates strong growth potential for organised retail in India.
 The Indian retail market is in its nascent stage; unorganized players accounted for 7 per cent of the
market during FY 2016-17.
 There are over 15 million mom-and-pop stores
 The organised retail in India is growing at a CAGR of 20-25 per cent per year.
 In 2020, it is estimated that organised retail penetration share would reach 10 per cent and unorganized
retail penetration would hold a major share of 90 per cent.
 The unorganized retail sector in India has huge untapped potential for adopting digital mode of
payments, as 63 per cent of the retailers are interested in using digital payments like mobile and card
payments.

IMPACT OF GST STRUCTURE

INCOME GROWTH TO DRIVE DEMAND FOR ORGANISED RETAIL

 Multiple drivers are leading to strong growth in Indian retail through a consumption boom
 Significant growth in discretionary income and changing lifestyles are among the major growth drivers
 Easy availability of credit and use of ‘plastic money’ have contributed to a strong and growing consumer
culture
 Acceptance and usage of e-retailers by consumers are increasing due to convenience and secured financial
transactions
 Expansion in the size of the upper middle class and advertisement has led to greater spending on luxury
products and high brand consciousness

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FUTURE RETAIL - INDIA'S LEADING RETAILER

 Future Retail has seven key retail brands namely: Big Bazaar, Easyday, E-zone, FBB, Food Bazaar,
Foodhall and Home Town.
 It has a total of 901 stores across 240 cities with an annual customer footfall of 300 million and 33,467
employees.
 As of November 2016, the company bought retail business of Hyderabad-based ‘Heritage Foods Ltd.’
 January 2017, Future Lifestyle Fashions raised US$ 37.19 million in a subsidiary that houses Lee
Cooper brand of clothing.
 In February 2017, Future Retail has entered into an agreement to sell the UK based -- Laura Ashley’s
home furnishing merchandise, through their own operating stores and websites in India.
 In 2017, the company was awarded ‘Most Admired Multi Fashion Retailer of the Year’, ‘Most
Admired Brand of the Year – New Launch’, ‘Most Admired Fashion Brand of the Year in Men's
Western Wear'; Big Bazaar Profit Club was awarded Best Loyalty Program in Retail Sector under the
17TH Annual IMAGES Fashion Awards.
 A new expansion plan named 'Retail 3.0' has been unveiled by the Future Group, under which it has
partnered Google, Facebook, and Deloitte and will aim to become the largest integrated consumer
company in Asia with a trillion dollar revenue by 2047.
 The company’s discount chain, Brand Factory, is planning to open 40 new stores by October 2018 to
expand in Tier 2 cities.

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 HISTORY

Big Bazaars journey began in October 2001, when the young, first generation entrepreneur Kishore Biyani
opened the country’s first hypermarket retail outlet in Kolkata (then Calcutta). In the same month, two more
stores were added one each in Hyderabad and Mumbai, thus starting on a successful sojourn which began the
chapter of organized retailing in India.

Speaking on this momentous occasion and remembering the days of conceptualising the hypermarket idea Mr.
Kishore Biyani said, We initially decided to name the format as Bazaar because we had designed the store
keeping the Indian mandi style in mind. Since the size of the hypermarket was big than an average mandis,
the thought came to name it as Big Bazaar. However, we had freezed on the punch line Isse Se Sasta Aur
Achha Kahi Nahi much before we met the creative agency to design the final logo of Big Bazaar.
Though, Big Bazaar was started purely as a fashion format including apparel, cosmetics, accessory and general
merchandise, the first Food Bazaar format was added as Shop-In-Shop within Big Bazaar in the year 2002.
Today, Big Bazaar, with its wide range of products and service offering, reflects the aspirations of millions of
Indians.

The journey of Big Bazaar can be divided into two phases one pre and the other post January 26th, 2005, when
the company rewrote the retail chapter in India, with the introduction of a never-before sales campaign Sasbe
Sasta Din. In just one day, almost the whole of India descended at various Big Bazaar stores in the country to
shop at their favourite shopping destination.

Further, what followed was the time and again rewriting of the Indian Retail experience, wherein
understanding of the Indian consumers reflected in the products and services offered, creating innovative
deals, expanding in the tier II and tier III towns, tying up with branded merchandise to offer exclusive products
and services to its customers.

Big Bazaar is present today in 59 cities and occupying over 5 million sq.ft. retail space and driving over 110
million footfalls into its stores. The format is expecting the number of footfall in the storesto increase by over
140 million by this financial year. Over the years, Mr. Biyani for his vision and leadership, and Big Bazaar
for its unique proposition to its customers, have received every prestigious consumer awards both nationally
and internationally.

Says Rajan Malhotra, President, Strategy & Convergence, Big Bazaar, What is important in our journey is not
the number of stores, but the customers’ faith in us. Its the India and the Indians, which have helped us, reach
this feat in such a short time span and today our country is creating a history in the World organized Retail.

Rajan Malhotra, who is also the first employee of Big Bazaar, joining the organization in early 2001 adds,
Since beginning, we have kept Big Bazaar as a soft brand, which reflects the India and the Indianess. We
believed in growing with the society, participating and celebrating all regional and local community festivals,
giving customers preferences above everything else.

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RETAIL SECTOR
Retailing in India is one of the pillars of its economy and accounts for about 10 percent of its GDP. The
Indian retail market is estimated to be US$ 600 billion and one of the top five retail markets in the world by
economic value. India is one of the fastest growing retail markets in the world, with 1.2 billion people.
As of 2003, India's retailing industry was essentially owner manned small shops. In 2010, larger
format convenience stores and supermarkets accounted for about 4 percent of the industry, and these were
present only in large urban centers. India's retail and logistics industry employs about 40 million Indians (3.3%
of Indian population).

Until 2011, Indian central government denied foreign direct investment (FDI) in multi-brand retail, forbidding
foreign groups from any ownership in supermarkets, convenience stores or any retail outlets. Even single-
brand retail was limited to 51% ownership and a bureaucratic process
In November 2011, India's central government announced retail reforms for both multi-brand stores and
single-brand stores. These market reforms paved the way for retail innovation and competition with multi-
brand retailers such as Walmart, Carrefour and Tesco, as well single brand majors such as IKEA, Nike,
and Apple. The announcement sparked intense activism, both in opposition and in support of the reforms. In
December 2011, under pressure from the opposition, Indian government placed the retail reforms on hold till
it reaches a consensus.

In January 2012, India approved reforms for single-brand stores welcoming anyone in the world to innovate
in Indian retail market with 100% ownership, but imposed the requirement that the single brand retailer source
30 percent of its goods from India. Indian government continues the hold on retail reforms for multi-brand
stores.

In June 2012, IKEA announced it had applied for permission to invest $1.9 billion in India and set up 25 retail
stores. An analyst from Fitch Group stated that the 30 percent requirement was likely to significantly delay if
not prevent most single brand majors from Europe, USA and Japan from opening stores and creating
associated jobs in India.

On 14 September 2012, the government of India announced the opening of FDI in multi-brand retail, subject
to approvals by individual states. This decision was welcomed by economist] and the markets, but caused
protests and an upheaval in India's central government's political coalition structure. On 20 September 2012,
the Government of India formally notified the FDI reforms for single and multi brand retail, thereby making
it effective under Indian law.

On 7 December 2012, the Federal Government of India allowed 51% FDI in multi-brand retail in India. The
government managed to get the approval of multi-brand retail in the parliament despite heavy uproar from the
opposition (the NDA and leftist parties) Some states will allow foreign supermarkets
like Walmart, Tesco and Carrefour to open while other states will not.

Growth over 1997-2010

India in 1997 allowed foreign direct investment (FDI) in cash and carry wholesale. Then, it required
government approval. The approval requirement was relaxed, and automatic permission was granted in 2006.
Between 2000 to 2010, Indian retail attracted about $1.8 billion in foreign direct investment, representing a
very small 1.5% of total investment flow into India.
Single brand retailing attracted 94 proposals between 2006 and 2010, of which 57 were approved and
implemented. For a country of 1.2 billion people, this is a very small number. Some claim one of the primary
restraint inhibiting better participation was that India required single brand retailers to limit their ownership
in Indian outlets to 51%. China in contrast allows 100% ownership by foreign companies in both single brand
and multi-brand retail presence.

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Indian retail has experienced limited growth, and its spoilage of food harvest is amongst the highest in the
world, because of very limited integrated cold-chain and other infrastructure. India has only 5386 stand-alone
cold storages, having a total capacity of 23.6 million metric tons. However, 80 percent of this storage is used
only for potatoes. The remaining infrastructure capacity is less than 1% of the annual farm output of India,
and grossly inadequate during peak harvest seasons. This leads to about 30% losses in certain perishable
agricultural output in India, on average, every year.
Indian laws already allow foreign direct investment in cold-chain infrastructure to the extent of 100 percent.
There has been no interest in foreign direct investment in cold storage infrastructure build out. Experts claim
that cold storage infrastructure will become economically viable only when there is strong and contractually
binding demand from organised retail. The risk of cold storing perishable food, without an assured way to
move and sell it, puts the economic viability of expensive cold storage in doubt. In the absence of organised
retail competition and with a ban on foreign direct investment in multi-brand retailers, foreign direct
investments are unlikely to begin in cold storage and farm logistics infrastructure.
Until 2010, intermediaries and middlemen in India have dominated the value chain. Due to a number of
intermediaries involved in the traditional Indian retail chain, norms are flouted and pricing lacks transparency.
Small Indian farmers realise only 1/3rd of the total price paid by the final Indian consumer, as against 2/3rd
by farmers in nations with a higher share of organised retail. The 60%+ margins for middlemen and traditional
retail shops have limited growth and prevented innovation in Indian retail industry.
India has had years of debate and discussions on the risks and prudence of allowing innovation and
competition within its retail industry. Numerous economists repeatedly recommended to the Government of
India that legal restrictions on organised retail must be removed, and the retail industry in India must be opened
to competition. For example, in an invited address to the Indian parliament in December 2010, Jagdish
Bhagwati, Professor of Economics and Law at the Columbia University analysed the relationship between
growth and poverty reduction, then urged the Indian parliament to extend economic reforms by freeing up of
the retail sector, further liberalisation of trade in all sectors, and introducing labour market reforms. Such
reforms Professor Bhagwati argued will accelerate economic growth and make a sustainable difference in the
life of India's poorest.
A 2007 report noted that an increasing number of people in India are turning to the services sector for
employment due to the relative low compensation offered by the traditional agriculture and manufacturing
sectors. The organised retail market is growing at 35 percent annually while growth of unorganised retail
sector is pegged at 6 percent.
The Retail Business in India is currently at the point of inflection. As of 2008, rapid change with investments
to the tune of US$25 billion were being planned by several Indian and multinational companies in the next 5
years. It is a huge industry in terms of size and according to India Brand Equity Foundation (IBEF), it is valued
at about US$395.96 billion. Organised retail is expected to garner about 16-18 percent of the total retail market
(US$65–75 billion) in the next 5 years.
India has topped the A.T. Kearney’s annual Global Retail Development Index (GRDI) for the third
consecutive year, maintaining its position as the most attractive market for retail investment. The Indian
economy has registered a growth of 8% for 2007. The predictions for 2008 is 7.9%. The enormous growth of
the retail industry has created a huge demand for real estate. Property developers are creating retail real estate
at an aggressive pace and by 2010, 300 malls are estimated to be operational in the country.

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Growth after 2011
Before 2011, India had prevented innovation and organised competition in its consumer retail industry.
Several studies claim that the lack of infrastructure and competitive retail industry is a key cause of India's
persistently high inflation. Furthermore, because of unorganised retail, in a nation where malnutrition remains
a serious problem, food waste is rife. Well over 30% of food staples and perishable goods produced in India
spoils because poor infrastructure and small retail outlets prevent hygienic storage and movement of the goods
from the farmer to the consumer.
One report estimates the 2011 Indian retail market as generating sales of about $470 billion a year, of which
a minuscule $27 billion comes from organised retail such as supermarkets, chain stores with centralised
operations and shops in malls. The opening of retail industry to free market competition, some claim will
enable rapid growth in retail sector of Indian economy. Others believe the growth of Indian retail industry will
take time, with organised retail possibly needing a decade to grow to a 25% share. A 25% market share, given
the expected growth of Indian retail industry through 2021, is estimated to be over $250 billion a year: a
revenue equal to the 2009 revenue share from Japan for the world's 250 largest retailers.
The Economist forecasts that Indian retail will nearly double in economic value, expanding by about $850
billion by 2020. The projected increase alone is equivalent to the current retail market size of France.
In 2011, food accounted for 70% of Indian retail, but was under-represented by organised retail. A.T.
Kearney estimates India's organised retail had a 31% share in clothing and apparel, while the home supplies
retail was growing between 20% to 30% per year. These data correspond to retail prospects prior to November
announcement of the retail reform.

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 SWOT ANALYSIS
The SWOT analysis of Big Bazaar discusses the strength, weaknesses, opportunities and threats for one of
the major retailers of India – Big bazaar
SWOT OF BIG BAZAAR (2006)
Strengths
 High Brand equity
 PoP promotions
 Variety of stuffs under a single roof
 State of art infrastructure Big Bazaar
had turned into from “discount store”
to fashion led, family oriented, happy
shopping destination.
Weaknesses
 Unable to meet store opening targets
on time
 Falling revenue per sq ft
 General perception: ‘Low price = Low
quality’
Opportunities
 A lot of scope in Indian organized
retail as it stands at approximately
4.15%.
 Evolving customer preferences
 Improving experiences of the
shoppers
Threats
 Lots of unorganised retailers
 Stricter government policies
 Increasing competition
 Economic condition of the country
SWOT OF BIG BAZAAR (2018)
Strengths
 State of the art infrastructure
 Everyday low prices, which attract
customers
 Maximum percent of footfalls
converted in sales
 Huge investment capacity
 Biggest value retail chain in India
 It offers a family shopping experience,
where entire family can visit together.
 Available facilities such as online
booking and delivery of goods
Weaknesses
 Overcrowded during offers
 Long lines at billing counters which
are time consuming
 Limited only to value offering low
price products. A no of branded
products are still missing from Big
Bazaar’s line of products. E.g. Jockey,
Van heusen
Opportunities
 Increasing mall culture in India.
 More people these days prefer to visit
big stores where they can find large
variety under one roof
Threats
 Competition from other value retail
chains such as
Shoprite, Reliance (Fresh and trends),
Hypercity and D mart.
 A large population still prefers to visit
local convenient stores for daily
purchases
 Changing Government policies
 International players looking to foray
India
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 PORTER’S FIVE FORCES MODEL OF INDIAN RETAIL INDUSTRY
PORTER’S 5 FORCES OF INDIAN
RETAIL INDUSTRY (2006)
Rivalry among competitors - High
The rivalry of Big bazaar in 2006 was still
high. Reliance retail, Aditya Birla Group,
Vishal’s Retail, Bharti, Walmart etc. were few
of the competitors for Indian retail industry
Threat of new entrants - Moderate
Due to stricter FDI policy, the threat of new
entrants was quite moderate for international
players. But on the other hand, domestic
conglomerates were looking to start retail
chains.
Threat of substitutes - Moderate
The threat to Indian retail industry in 2006 was
unorganised retailers.
Bargaining power of suppliers - High
Since there was comparatively lesser
competition, the bargaining power of the
suppliers varied depending upon the target
segment. The unorganised sector had
dominant position. There were a few players
who had edge over others on account of being
established players and enjoying brand
distinction.
Bargaining power of buyers - Less
Since there were already a few major players
in Indian retail industry, customer service and
low prices were still maintained, but the
quality of goods and services increased over
the years.
PORTER’S 5 FORCES OF INDIAN
RETAIL INDUSTRY (2018)
Rivalry among competitors - Intensive
There are price wars happening among the
internal competitors of the Indian retail
industry. Continuous investments in
innovations new products is been seen (sales
promotion and higher spending on
advertising). All these activities are likely to
increase the costs and lower the profits.
Threat of new entrants - High
The number of chain stores in India is
increasing since a decade now. While the
barriers to start up a store is possible to
overcome, to possibility of getting lesser
contracts and leases in becoming impossible
Threat of substitutes - High
Since there is higher competition in the market
and there are many alternatives to a product,
threat of substitute products are more.
Bargaining power of suppliers - Moderate
Bargaining Power of the suppliers in moderate
because of the size and concentration of major
retailers. To reduce power and to retain
customers, retailers seek to differentiate
products and create strong brands. The
supplier power of the retail industry can be
altered in these ways, by differentiation of
inputs and switching costs for transferring to
other suppliers
Bargaining power of buyers - Less
The bargaining power of buyers in retail
industry is usually very less. Consumers are
price sensitive and they have availability of
more choices.
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 MISSION AND VALUES

Mission
 We share the vision and belief that our customers and stakeholders shall be served only by creating
and executing future scenarios in the consumption space leading to economic development.
 We will be the trendsetters in evolving delivery formats, creating retail realty, making consumption
affordable for all customer segments – for classes and for masses.
 We shall infuse Indian brands with confidence and renewed ambition.
 We shall be efficient, cost- conscious and committed to quality in whatever we do.
 We shall ensure that our positive attitude, sincerity, humility and united determination shall be the
driving force to make us success

Values
1. RESPECT AND HUMILITY in dealing with everyone within and outside the organization
2. FLOW by constantly learning and being inspired from the universal laws of nature
3. INDIANNESS by believing in oneself and doing things the Indian way
4. INTROSPECTION for continuous learning, self-development and personal excellence
5. OPENNESS AND ADAPTABILITY by accepting new ideas and knowledge, and being proactive in
meeting challenges emerging from changing business scenarios
6. VALUING AND NURTURING RELATIONSHIPS with customers, business associates
stakeholders, communities and the society LEADERSHIP in thought and in business
7. SIMPLICITY AND POSITIVITY to foster innovation, speed and imagination

Launched in 2001 with the belief:

Give to Ordinary Indians, What Only the Rich Can Afford
Since then, have kept with times, catering to needs and aspirations of Indians
And more importantly, creating new categories and new occasions for a fast changing India

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 MAJOR MILESTONES OF BIG BAZAAR (2001-2018)

2005:
2004: 1. Initiates the
implementation
1. Wins its first of SAP and pilots
award and national a RFID project
2003: recognition
1. Enters Tier II 2. Big Bazaar
2. Lower Parel Exchange Offer
cities Store - the first to
3. Electronic
2002: 2. 10 million touch Rs 10
customers million turnover Bazaar and
1. Launches on a single day Furniture Bazaar
Big Bazaar - are launched
ICICI Bank 4. Launched
2001: Card ICICI Bank-Big
Three stores 2. Food Bazaar Bazaar Gold
-Kolkata, becomes part of credit card
Bangalore Big Bazaar program
and
Hyderabad

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 2010:
2009: 1. Wins CNBC
Awaaz Consumer
1. Maha Awards for the
Annasantarpane in third consecutive
2008: South India year.
1. The fastest 2. Captures almost
growing 2. Ranked 6
one-third share in among the Top 50
hypermarket food and grocery
2007: format in the Service Brands in
products sold India.
1. 50th store - world through modern
Kanpur 2. Launches 101st retail in India
2. Partners with store 3. Mahendra
2006: Futurebazaar. 3. Introduces Singh Dhoni and
1. National 3. Pantaloon Fashion@Big Asin, -brand
record -Rs Retail wins the Bazaar ambassadors
1,37,367 International 4. Becomes 4. Launches of
shopping bill Retailer of the India’s Business 'The Great
2. Launches Super brands Exchange Offer'
Shakti 5. Mega Saving 5. Joint venture
3. Launches "Monthly Bachat with Hidesign to
Navaras – Bazaar" campaign launch Holii
the jewellery
store

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 2015:
2014: 1. FBB - style
partner of
1. Big Bazaar and Sunburn
Ezone - the Top 50
2013: Most Trusted 2. First Big
1. Big Bazaar Brands in the Bazaar GEN
Direct country in the NXT store
2. April Utsav survey conducted 3. Tie-up with
2012: by Nielson. MobiKwik
1. Five year 3. Big Bazaar
Profit Club 2. Big Bazaar - 4. Katrina Kaif
multi-million 4th Most Trusted and Varun
dollar deal with Service Brand of Dhawan - brand
Cognizant the country ambassadors
2011: Technology
1. Rural 3. FBB ties up 5. 'Crazy
2. Partnered
wholesale with India's largest Weekend’
with Disney to Beauty Pageant campaign
and launch "Kidz
distribution - Femina Miss India
Cookies 2014
‘Aadhaar
Wholesale’ 4. Big Bazaar
store at Family Centre was
Kalol, launched in
Gujarat. Kolkata
2. ‘Naye
India Ka
Bazaar’.
3. 200th
store opened
in India
4. Free
shipping on
all orders
above Rs.
1000
5. Agreement
with HUL

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 2018:
1. World's first 24hrs of
Facebook Live Shopping
Carnival
2. Created a mobile game 'Deal
Skyfall – Sabse Saste 5 Din'
2016:
3. FBB launched ' Watch Now
1. Big Bazaar Direct ied-up with Buy Now'
Oxigen Services
4. Dropped prices of 1,500
Everyday Items with the 'Har
Din Lowest Price' Promise

Page | 20
DETAILED TIMELINE

2001
 Three Big Bazaar stores launched within a span of 22 days in Kolkata, Bangalore and Hyderabad
2002

 Big Bazaar – ICICI Bank card is launched

 Food Bazaar becomes part of Big Bazaar with the launch of the first store in Mumbai at High Street
Phoenix

2003

 Big Bazaar enters Tier II cities with the launch of the store in Nagpur
 Big Bazaar welcomes its 10 million-th customer at its new store in Gurgaon

2004

 Big Bazaar wins its first award and national recognition. Big Bazaar and Food Bazaar awarded the
country’s most admired retailer award in value retailing and food retailing segment at the India Retail
Forum
 A day before Diwali, the store at Lower Parel becomes the first to touch Rs 10 million turnover on a
single day

2005

 Initiates the implementation of SAP and pilots a RFID project at its central warehouse in Tarapur
 Launches a unique shopping program: the Big Bazaar Exchange Offer, inviting customers to exchange
household junk at Big Bazaar
 Electronic Bazaar and Furniture Bazaar are launched
 Big Bazaar and ICICI Bank launched ICICI Bank-Big Bazaar Gold credit card program to reward its
loyal customers.

2006

 Mohan Jadhav sets a national record at Big Bazaar Sangli with a Rs 1,37,367 shopping bill. The Sangli
farmer becomes Big Bazaar’s largest ever customer.
 Big Bazaar launches Shakti, India’s first credit card program tailored for housewives
 Navaras – the jewellery store launched within Big Bazaar stores

2007

 The 50th Big Bazaar store is launched in Kanpur

 Big Bazaar partners with Futurebazaar.com to launch India's most popular shopping portal
 Big Bazaar initiates the "Power of One" campaign to help raise funds for the Save The Children India
Fund

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  Pantaloon Retail wins the International Retailer of the Year at US-based National Retail Federation
convention in New York and Emerging Retailer of the Year award at the World Retail Congress held
in Barcelona.

2008

 Big Bazaar becomes the fastest growing hypermarket format in the world with the launch of its 101st
store within 7 years of launch
 Big Bazaar dons a new look with a fresh new section, Fashion@Big Bazaar
 Big Bazaar joins the league of India’s Business Super brands. It is voted among the top ten service
brands in the country in the latest Pitch-IMRB international survey
 Big Bazaar initiated the Mega Saving "Monthly Bachat Bazaar" campaign, to provide exceptional
deals on groceries and food items during the first week of every month.

2009

 Big Bazaar opens its second store in Assam at Tinsukia

 Big Bazaar initiates Maha Annasantarpane program at its stores in South India – a unique initiative to
offer meals to visitors and support local social organizations
 Big Bazaar captures almost one-third share in food and grocery products sold through modern retail
in India
 Mahendra Singh Dhoni and Asin, youth icons of India, were chosen as the brand ambassadors of Big
Bazaar
 Big Bazaar announced the launch of 'The Great Exchange Offer'
 Formed a joint venture with Hidesign to launch Holii, a new brand of handbags, laptop bags and other
accessories.

2010

 Future Value Retail Limited is formed as a specialized subsidiary to spearhead the group’s value retail
business through Big Bazaar, Food Bazaar and other formats.
 Big Bazaar wins CNBC Awaaz Consumer Awards for the third consecutive year. Adjudged the Most
Preferred Multi Brand Food & Beverage Chain, Most Preferred Multi Brand Retail Outlet and Most
Preferred Multi Brand One Stop Shop
 Big Bazaar connects over 30,000 small and medium Indian manufacturers and entrepreneurs with
around 200 million customers visiting its stores
 Big Bazaar opens its third store in Kanpur at Z Square Mall
 Big Bazaar opens its fourth store in Kanpur at Jajmau which is the largest leather tannery garrison of
Asia
 Vidya Balan was chosen as the brand ambassador of Big Bazaar's Price Challenge exercise
 Ranked 6 among the Top 50 Service Brands in India.

2011

 Big Bazaar forays into the rural wholesale and distribution business through ‘Aadhaar Wholesale’
store at Kalol, Gujarat.
 Big Bazaar has come up a new logo with a new tag line: ‘Naye India Ka Bazaar’.

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  200th store opened in India
 Future Group has launched its latest venture, Foodhall – a premium food destination across 10 metros
in India
 For the convenience of the online customers, Big Bazaar has started free shipping on all orders above
Rs. 1000
 Entered into an agreement with Hindustan Unilever to co-develop and co-brand bakery products,
which would be sold exclusively at Big Bazaar stores.

2012

 Big Bazaar entered into a five year multi-million dollar deal with Cognizant Technology Solutions for
IT infrastructure services that support Future Group's network of stores, warehouses, offices, and data
centers.
 Partnered with Disney to launch "Kidz Cookies", exclusively for kids across India.
 Big Bazaar is planning to add further value to its retail services by offering Value added services like
grinding, de-seeding, vegetables cutting at free of cost.

2013

 Future Group successfully introduced 'Big Bazaar Direct' an assisted shopping concept where
franchises will sell Big Bazaar products through a catalogue on a 'tablet'.
 Big Bazaar introduced an exciting occasion for shopping 'April Utsav'.
 Big Bazaar introduced a unique customer membership program 'Big Bazaar Profit Club

2014
 Big Bazaar and Ezone were voted as one of the Top 50 Most Trusted Brands in the country in the
Brand Equity Survey 2013 conducted by Nielson. The survey also revealed that Big Bazaar is the 4th
Most Trusted Service Brand of the country
 fbb ties up with India's largest Beauty Pageant Femina Miss India 2014
 A New Generation Big Bazaar, Big Bazaar Family Centre was launched at Alcove in Kolkata on
January 6, 2014

2015
 FBB becomes the style partner of Asia’s largest music festival, Sunburn
 Big Bazaar and Ezone made to the Brand Equity’s Top Retailers List
 First Big Bazaar GEN NXT store designed for smart and easy shopping experience opened in Infinity
Mall, Malad, Mumbai
 Big Bazaar announced an exlusive tie-up with a leading mobile wallet company, MobiKwik
 The most affordable fashion destination, FBB signed youth style icons Katrina Kaif and Varun
Dhawan as its brand ambassadors
 Big Bazaar redefines weekends with the launch of a never-seen-campaign, “Crazy Weekend”

2016

Big Bazaar Direct tied-up with Oxigen Services to sell the wide assortment of the franchisees

Page | 23
2018
 Big Bazaar organised one of the world's first 24hrs of Facebook Live Shopping Carnival to celebrate
the 12th anniversary of Sabse Sasta Din
 Big Bazaar for the first time ever created a mobile game 'Deal Skyfall – Sabse Saste 5 Din' that has
transformed the shopping experience in India
 FBB launched ' Watch Now Buy Now', India's first ever LIVE online fashion event
 Big Bazaar dropped prices of 1,500 Everyday Items with the 'Har Din Lowest Price' Promise (big
bazaar timeline, n.d.)

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OBJECTIVES
1. To create the environment of a bazaar in a modern retail setting (Indian-ness) to make the customers more
comfortable
2. Making consumption affordable and available across all middle class in India
3. The company believes in empowering the customers by providing most items at low prices and good
quality.

SCOPE
The Next-Gen Big Bazaar- Big bazaar can attract more customers by different variety and assortments. They
can improve customer satisfaction by providing home delivery services

OPERATIONS
Future Group Manifesto
“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.

We, in Future Group, will not wait for the Future to unfold itself but create future scenarios in the consumer
space and facilitate consumption because consumption is development. Thereby, we will affect socio-
economic development for our customers, employees, shareholders, associates and partners.

Our customers will not just get what they need, but also get them where, how and when they need. We will
not just post satisfactory results, we will write success stories. We will not just operate efficiently in the
Indian economy, we will evolve it. We will not just spot trends, we will set trends
by marrying our understanding of the Indian consumer to their needs of tomorrow. It is this understanding
that has helped us succeed. And it is this that will help us succeed in the Future. We shall keep relearning.
And in this process, do just one thing: Rewrite Rules. Retain Values.

In order to survive in the market, the company should earn a considerable amount of profit. It is needed to
expand the business of the company. But making profit should not be the only motto of the company. The
company in order to increase its profits and sales should spend much time and money in search of new
customers. Just the skill of attracting new customers is not enough. It should also maintain good relationship
with them and customers are likely to enter those shops, where they get a friendly environment and high-
quality goods.

The two important tools used by retailers to attract and retain customer are visual merchandise and effective
store layout. This can have a better impact on the sale of the company. The atmospherics which include the
effective use of space, colour, pillars and floor coverings, music, lighting, etc. influence the customers.
Atmospherics are selected by the combination of all series and stimulates to produce the desired ambience
and emotional response from the group of target customers. So it is necessary on the part of the retailer to
know the factors influencing and pleasing the customers. The key principles on which the modern stores are
designed are Attraction, Productivity and Consistency.

Big Bazaar stores are designed to attract customers as well as to facilitate easy movement of customers. The
entire store is well planned and neatly arranged for the convenience of the customers and smooth functioning
of the store. Procurement at Big Bazaar happens from Central Distribution Centre and local vendors. The
stock in the store is managed by Automated Replenishment System (ARS). The CDC are located in such
strategic positions that it can easily cater to the nearby Big Bazaar needs. Warehousing at Big Bazaar is divided
into two parts, that is, Inward Processing and Outward Processing. For the inward processing, the PO is first
generated by the ARS, and it is received by the vendor. The vendor then delivers the goods and an IRN is
Page | 25
issued by the warehouse management team. The stock is tallied and in case of any discrepancies the note is
generated. Post that, the GRN is generated and then the goods are either piled up in the warehouse or are sent
to the floor for sale. The outward processing begins with the raising of the PO to the vendor by the CDC, after
which the stock is delivered to the CDC. After the receipt of goods, they are weighed and counted and the
IRN is generated. The information is transferred to SAP and GRN is generated. The stocks are pilled in the
CDC warehouses. The PO is generated from stores to CDC post which the outward movement of goods from
CDC starts. And the goods are received at the Big Bazaar Stores. The stocks entered into the floor can only
come out with the customer unless damaged or defective. The stock management on the floor depends on the
foot fall of the customers. The stock management is effectively analysed by the department manager. The
concerned DM requests for the replenishment when the sales are high. The requests are received by the
warehouse team and accordingly replenishment happens.

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 CATEGORIES

Big Bazaar in 2009 Big Bazaar in 2018

Parent Company of Food Parent Company of Food Bazaar, FBB, Navras &
Bazaar and Navras Ezone
Products Products
1. Clothing 1. Electronics
2. Kitchenware 2. Movies and music
3. Sporting goods 3. Home and furniture
4. Luggage 4. Home improvement
5. Jewellery 5. Clothing
6. Grocery 6. Footwear
7. Jewellery
8. Toys
9. Health and beauty
10. Pet supplies
11. Sporting goods and fitness
12. Auto
13. Photo finishing
14. Craft supplies
15. Party supplies
16. Grocery

Services Services
None Future Pay

Page | 27
 CITIES

In 2006, Big Bazaar’s presence was in over 40 cities, which is one third of the presence in current number of
cities. (future group, 2006)

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Founded in 2001, Big Bazaar is one of the oldest and largest hypermarkets chain of India, housing about 256
stores in over 120 cities and towns across the country (Wikipedia big bazaar, n.d.)

These are the list of cities where currently the list of cities are present in 2018

Agra Ahmedabad Allahabad Ambala Bangalore

Bhubaneshwar Calcutta Chennai Coimbatore Delhi
Durgapur Gurgaon Haldia Hyderabad Indore
Kolkata Lucknow Mangalore Mumbai Nagpur
Nashik New Delhi Pune Rajkot Sangli
Surat Thane Vizag

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FORMAT
India’s modern retail sector was comprised of two formats: value and lifestyle retailing. The lifestyle format
consisted of department stores and single-brand outlets and franchises which sold “aspirational” merchandise
while value retail formats included hypermarkets, food supermarkets and discount retailers who focused on
offering low prices. (future retail milestones , n.d.)

MARKETING MIX
Marketing Mix of Big Bazaar analyses the brand/company which covers 4Ps (Product, Price, Place,
Promotion) and explains the Big Bazaar marketing strategy.

Product: The product in the marketing mix of Big Bazaar can be classified into the following categories –
Apparels, Food, Farm Produce, Home and Personal Care and Chill Station. Apparels usually comprise denims
and T shirts, fabrics and cut pieces, casual clothing, party clothing, ethnics wear, accessories, under garments,
dress materials, sarees and the likes. Big Bazaar offers food which comprises ready to eats, ready to cook
packages, spices, chilled drinks, tea and coffee etc. Farm products include vegetables, fruits, dairy products
and imported fruits/vegetables and luxury fruits. Chill stations are at Big Bazaar offering soft drinks, packages
juices, milk and milk products, frozen foods and ice creams. Home and personal care include detergents,
soaps, creams, deodorants, plastic products and crockery. Other than these Big Bazaar also offers Electronics,
Fashion and Jewellery items and Kids and Child products.

Price: Big Bazaar has always endeavoured to strike a good balance between profitability and value pricing of
its products. Since major target audiences for Big Bazaar comprises middle class homemakers, value for
money and competitive pricing is the strategy adopted. This in conjunction with multiple offers, sales, special
discounts, season offs etc make purchasing from Big Bazaar lucrative. Besides this Big Bazaar also offers
certain goods at low interest rates and uses psychological model of pricing as well as differential and bundling
price strategies. Hence, the pricing strategy in the marketing mix of Big Bazaar is not solely dependent upon
competition and regulatory authorities.
Place: Big Bazaar’s strategy of correctly identifying areas which have high potential development and
growing purchasing power and invests in real estate for the opening of their retail stores. These are usually
areas high in population and traffic movement. Their Express format has an area of roughly 15-18000 square
feet, their hypermarkets usually have an area of 40-45000 square feet while the super centres have upto 1 lakh
square feet. Big Bazaar currently have 100+ stores spread across 34 cities. There are plans of expanding stores
to other tier 2 cities with an infusion of Rs 350 crore

Promotion: Big Bazaar is known for promoting its products in very catchy, easy to remember ways using
memorable punchlines. For below the line promotion, they offer discounts and coupons along with money
back guarantees and several exchange offers. For Above the line promotion Big Bazaar run advertising
campaigns on television and radio while also publishing print ads in newspapers and magazines, besides online
promotion. Hence the promotional strategy in the marketing mix of Big Bazaar is mostly a 360 branding
technique.

Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of Big
Bazaar.

People: Very well trained and knowledgeable staff assists people in purchasing the right things which Big
bazaar has in spades (roughly 10,000 employees). The people strategy in the marketing of Big Bazaar is
primarily having the right people trained in the right way to serve the customers. The uniform and overall
grooming, smartness of their employees helps achieve a professional outlook implying that they mean
business and are serious about the choices that their customers make through assists. Baggage counters and
security guards also help check foul play and ensure safety.

Process: From the free delivery of goods purchased for over Rs 1000 to streamlining of the cash counter
processes through technological application and more efficient queueing systems in place, Big Bazaar realizes
Page | 30
the importance processes play in the sale of merchandize and understands the implications this has on
customer retention and satisfaction.
Physical Evidence: Big Bazaar prominently displays tags/name slips and readouts for all its products and
merchandize. This helps in better search and navigation and reduces buyer purchase time, thereby generating
more profits. The stocking of goods is done systematically and in proper stacks so as to make them visually
appealing. Thus, all this provides an overview on the marketing mix of Big Bazaar.

COMPETITORS (2006):

Competitor Parent Company /

Name Group
Reliance Fresh Reliance
Spencer's Retail Sanjiv Goenka Group
Subhiksha C.R. Subramaniam
Trent Tata Group
Vishal Mega
Partners Group AG
Mart
Bharti Walmart

COMPETITORS (2018):

Competitor Parent Company /

Name Group
Lifestyle Landmark Group
Pantaloons Aditya Birla Group
Shoppers Stop K Raheja Corp
Spencer's Retail Sanjiv Goenka Group
Reliance Retail Reliance Industries Ltd
Westside Tata Group
Reliance Fresh Reliance Industries Ltd
HyperCity Future Group
Subhiksha Subhiksha Retail
D Mart Avenue E- Commerce
Foodworld RPG Group
Easy Day Future Group
More Aditya Birla Group

Page | 31
GOVERNMENT POLICIES
Immense potential. This phrase has been used to describe the Indian retail sector for as long as one can
remember. A large population base, young upwardly-mobile and affluent middle class, rapid urbanization and
growing internet and smartphone penetration are among the many reasons for that. Sadly, the optimism has
been followed by a long list of challenges and hurdles that needed to be overcome to turn this potential into
actual growth. However, all of that could be about to change. India’s retail sector now stands at the cusp of
fast-paced growth, one that could see it emerge as one of the fastest growing retail markets across the world.
In fact, India has been ranked number one in A.T. Kearney’s 2017 Global Retail Development Index, which
ranks the top 30 developing countries for retail investment worldwide. There are three key factors that are
triggering this change.
Foreign Direct Investment
The Indian government has been opening up the retail sector to foreign investors. The Narendra Modi-led
government has allowed 100 percent foreign direct investment (FDI) in multi-brand retail for food products
as compared to 51% in 2006. However, what is more important are the small tweaks to the overall conditions
for FDI in the sector, which will make these investments financially feasible for companies. For example,
initially the government had stipulated that any foreign multi-brand outlet operating in India needed to source
30 percent of all products from local MSME suppliers in India. That had seen many leading companies delay
their investments as they concluded that this mix was difficult to work with. This has now been changed and
foreign owned outlets retailing Food, now need to have 30 percent of goods ‘manufactured in India’. This
means they can still choose the product range, and the brands, they want to carry as long as they are being
manufactured in India. Further, it appears that some amount of household items may be allowed to be retailed
in this format (to be confirmed by the Govt.), which we believe will make this format economically feasible.
This is likely to ease concerns of those who were sitting on the side lines and result in an increase in foreign
investment in the sector. This is a game changer as food and grocery account for around a third of India’s
consumption basket.

Valuing quality and service

There is a slow but sure change in the “value equation” taking place amongst the masses: there is a growing
trend among Indian consumers to “uptrade” to branded products from those sold “loose”, paying for service
(look at how the salon or local grocer market has transformed) and paying more for value (split AC share in
is 90%+ of the market) and for more premium brands. This is being driven by a variety of factors including
urbanization, increased awareness about global trends, quest for better products and focus on healthier living
and valuing one’s own time. India’s urban population has expanded from 340 million in 2006 to 430 million
in 2016, according to the United Nations’ World Cities report. India’s leading cities, as well as tier 2 and tier
3 cities, have also seen a big increase in media and internet penetration. That has made consumers more aware
of global fashion and food trends, driving up demand for packaged products, premium brands.
All of this is eventually being underpinned by the ability of customers to afford premium products &
services, across all categories – from food to fashion.
India’s economic expansion over the past few years has resulted in higher income levels. Per capita income
in India has nearly quadrupled since the start of the century, rising from US$452.4 in 2000 to US$1593.3 in
2015, according to the World Bank. This has put more disposable cash in pockets of consumers who are not
shy of spending it. The growing consumption power of Indian urban consumers backed by a consistently
growing economy should create a “deeper” market across categories and set the foundation for
further modernising Retail

Skilling & Employing India

The retail sector is among the top three employers in India. The government’s move to allow FDI in various
forms, coupled with the growing consumer demand, is expected to see it create even more jobs in the coming
years. According to the National Skill Development Corporation, India’s retail sector will need around a
workforce of around 56 million. The sector will have one of the highest incremental human resource
requirements - of 17.35 million till the year 2022.
These jobs are likely to be created at all levels. With companies looking to open up more stores, there were
will be need for staff at the customer service level. Meanwhile, as companies look to make the most of the
Page | 32
digital evolution and launch their e-commerce offering, high-end jobs will also be in demand. As multinational
companies enter the country post the easing of FDI regulations they are likely to invest in back-end
infrastructure such as warehouses, logistics, accounting, customer services etc. creating ancillary jobs across
the country. With more people employed, they are likely to see their income levels go up, which in turn will
give them more cash to spend, which will create even more jobs. It’s the vicious cycle many economies across
the globe can only hope for. Before we know, the most used phrase to describe India’s retail sector could well
be: Top performer.

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BUSINESS MODEL (2006)
In 2006-2007, more Indians discovered the value of shopping in Big Bazaar. And with the launch of each
store, Big Bazaar discovered more value in terms of operational efficiency. It launched 27 new stores in 22
cities, covering over 1.40 million square feet. As of June 2007, there were 56 Big Bazaar stores across 43
cities. While Big Bazaar continued to expand in the large cities, it also tapped consumption potential in smaller
cities like Agra, Allahabad, Coimbatore, Surat, Panipat, Palakkad, Kanpur and Kolhapur. The year under
review also witnessed realigning of business teams with shared experience in category management, sourcing,
front-end operations and business planning. In addition, separate teams had been formed to look into all
aspects of new store launches and to manage mature stores. This provides more flexibility and focus in
expansion plans. The increase in SKUs in existing categories and the introduction of new categories
encouraged the opening of larger stores or Super Centres, measuring 100,000 square feet or more. Considering
this scale of expansion, technology played a significant facilitating role. The introduction of SAP in 2005-06
and its roll out during the year, positively impacted the business. Big Bazaar had initiated the process of Auto
Replenishments Systems, thus improving operational efficiencies and productivity. The company has also
rationalized nearly 250 vendors through better vendor management in terms of potential to expand, and for
inclusion and upgradation to the online B2B platform. The company planned to open over 60 stores across
India in FY 2008, and the opening of the 100th Big Bazaar store marked the fastest ever expansion by a
hypermarket format.

The Company's turnover has increased from Rs. 1758.50 crores to Rs. 3031.44 crores, an increase of 72.39 %
over the previous year. The Company has also recorded same store growth of 16.88% during the year.
Operating profit of the Company for the year 2006-2007 stood at Rs.218.74 crores as compared to Rs. 149.64
crores in the previous year, an increase of 46.18% over the previous year. The operating margin has come
down to 6.76% in the current year as compared to 8.01% in the previous year. The reported figure is exclusive
of extraordinary gain of Rs. 88.88 crores. The fall in margin is the result of change in sales mix with an
increasing share of low margin products as well as due to marginal increase in personnel cost.
Net profit of the Company for the year under review stood at Rs. 119.99 crores as compared to Rs. 64.16
crores in the previous year, an increase of Rs. 55.83 crores and 87.01% over the previous year.

Page | 34
During the year, your Company recorded growth in both top line as well as bottom line. Income from
operations went up from Rs.1868.97 Crores in FY05-06 to Rs.3236.74 Crores in FY06-07 recording a growth
of 73.18 percent. Profit before Depreciation, Interest and Tax stood at Rs.307.62 Crores in 06-07, an increase
of 105.58 percent over the preceding year. Profit after Tax for FY06-07 was Rs.119.99 Crores, an increase of
87.03 percent over FY05-06. The Company has doubled its retail space from 2.50 million square feet to 5.2
million square feet during FY06-07. The company has increased its presence from 23 cities to 42 cities during
FY06-07.
BUSINESS MODEL (2018)
Further to the success of the Big Bazaar Gen Nxt stores launched in Delhi and Mumbai, the chain has been
focussing on improving the consumer experience and making customer service its key proposition across all
stores in the network. Big Bazaar as a brand started with providing quality products at an extremely affordable
price. As the chain grew, price, along with best range and depth of merchandize became the primary customer
proposition. While price and the width and depth of the merchandize range will continue to be the strengths
of the brand, Big Bazaar is moving towards becoming a service-led retail brand that provides an unparalleled
shopping experience to every segment of customers. A continuous process of improvement has been initiated
across the chain with particular focus on helping customers choose their fashion needs better, superior trial
rooms, a wider and better quality range in homewares and home fashion and ensuring the best assortment in
the food section. With its growing footfalls, especially during peak shopping season, faster checkouts have
been a constant area for improvement. A new scanning and billing system is being introduced even as a
number of stores now have sit-down checkout areas. Speed and agility continue to be primary drivers for
customer service at Big Bazaar. Soon after the demonization was announced in the evening, the chain was
able to live up to the challenge in helping customers. All stores were kept open past midnight, for customers
to stock up. Multiple payment options were introduced and an army of sales associates helped customers learn
usage of credit and debit cards and how to download mobile wallets. Within a week, technology and systems
were upgraded to enable customers’ access cash from their debit cards through the stores’ point of sales
machines that were dubbed as mini ATMs. The 26th January holiday season is associated with thousands of
customers coming over to Big Bazaar for the low prices and discounts offered at the change. This was the first
year when Big Bazaar not just promised low prices but the best shopping experience for customers visiting
the stores.

The Company’s Sales and Other Operating Income has increased from Rs. 6,845.13 Crore in previous
financial year to Rs. 17,075.09 Crore with YOY growth of 149.45% for the financial year ended March 31,
2017. The Company has also recorded Same Store Sales growth of 12% for financial year ended March 31,
2017.
Net Profit of the Company for financial year ended March 31, 2017 stood at Rs. 368.28 Crore as compared to
Rs. 15.09 Crore in the previous financial year with an increase of Rs. 353.19 Crore and with YOY increase of
23.40 times over the previous financial year.
Page | 35
The country’s second largest retail conglomerate, Future Group has said, they are thinking of a better business
model for Big Bazaar Direct and hence called off the present existing model for Big Bazaar Direct. A Future
Group company official aware of this development told ET today. As per the company website Big Bazaar
used to run on a B2B model where the kiranas and the common men used to get an opportunity of starting
business by becoming a Big Bazaar franchisee. As franchisee, one could sell Big Bazaar products across India
using the Big Bazaar website. Here, the franchisee needed to just take orders from consumers and Big Bazaar
used to deliver it. So, the entire pain of delivering products to consumers’ doorstep was lying with Big Bazaar
Direct and the franchisee used to get commission on every order that took place.

It appears that the entire system on which the business model was built did not work for the Future Group and
hence the company called it off. Future Group official said, “We don’t have big pockets. We are not saying
that Big Bazaar Direct has been changed to so and so. We are in a transition process and thereby want to share
details when everything is finalised.” Vivek Biyanai, Director for the group who was heading Big Bazaar
Direct said, “I would not like to comment more on this and want to go ahead with the company statement.”
Big Bazaar Direct first opened its door in the year 2013.

Page | 36
References
big bazaar timeline. (n.d.). Retrieved from liquisearch: http://www.liquisearch.com/big_bazaar/timeline
(2006). future group.
Future Retail. (2016, Sep 1). Future Retail Limited. Retrieved from futureretail.in:
http://www.futureretail.in/pdf/Future_Retail_Limited_Presentation_Sep_16.pdf
future retail milestones . (n.d.). Retrieved from future retail : http://www.futureretail.in/about-
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