BIG BAZAAR

Is se sasta aur achcha kahin nahin

INTRODUCTION
Big Bazaar is a chain of retail stores, which was started in
2001 by Mr. Kishore Biyani. Its parent company is
Pantaloon Retail (India) Ltd. which is headquartered in
Jogeshwari, Mumbai. Big Bazaar, a uniquely Indian
hypermarket chain blends the look, touch and feel of Indian
bazaars with aspects of modern retail like choice,
convenience and quality. Big Bazaar is a value based retail
chain which works on the formula of Every Day Low
Prices. It currently has 116 outlets throughout the country.

WHY BIG BAZAAR?

Ever since its launch in 2001, Big Bazaar has stretched its
arms and existence throughout the country. It has become
the biggest brand in value retail chains, leaving far behind
its competitors.

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 FOR THE GREAT INDIAN MIDDLE
CLASS

It is a unit of Pantaloon Retail (India) Ltd and caters to the

Great Indian Middle Class. It was started as a hypermarket
format in Mumbai with approx. 50,000 sqft of space. Its
values and missions are to be the best in Value Retailing by
providing the cheapest prices and hence goes the tag-line

“Is se sasta aur achcha kahin nahin”

It sells variety of merchandise at affordable rates, the prices

of which it claims are lowest in the city but the level of
services offered is also very low. Usually the items are
clubbed together for offers as on the lines of Wal-mart and
Carrefour and it also offers weekend discounts. It currently
operates out of 64 stores and top 15 stores register a
cumulative footfall of 27 lakh a month on an average.

The following graph shows the retail life cycle and we can
say that Big Bazaar is currently at the Growth Stage.

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Cash flow
Flows

Maturity

Growth
Decline

Introduction

Time

OBSERVATION:

There were various observations made from the time I

entered the store. They can be summed up as follows:
• Verticals inside the store relates to each category of
product
o Food Bazaar
o Depot- books
o M-bazaar
o Electronic Bazaar
o Furniture Bazaar
o Footwear Bazaar
• Trolleys are not easily available, especially on other
than ground floor.

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• Little attention to cleanliness. Dust on shelves as well
as some product items.
• In-house packaging not efficiently done.
• Crowded store interiors. Items are arranged in a
cluttered way. Tried to stock maximum number in
limited area.
• Sign boards are not prominent. Lack of direction
creates confusion.
• Family crowd is evident. Youth comprises of only
around 10% of the crowd.
• Food Bazaar very efficiently managed. It is a bit over-
staffed but layout is very good. Shelf space is used
very well to stock products with clear distinction.

POSITIONING STRATEGY

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SWOT ANALYSIS

Strengths:
 High brand equity enjoyed by Big Bazaar
 State of the art infrastructure
 A vast variety of stuff available under one roof
 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

Weakness:
 Unable to meet store opening targets on time
 Falling revenue per sq ft
 General perception: ‘Low price = Low quality’
 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,

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Opportunity:
 A lot of scope in Indian organized retail as it stands at
approximately 4%.
 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.
 Unorganized retail also appears to be a threat to Big
Bazaar’s business. A large population still prefers to
visit local convenient stores for daily purchases
 Changing Government policies
 International players looking to foray India

MARKETING MIX

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

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etc. The various products offered by Big Bazaar are as
follows:

Big Bazaar also promotes a number of in house brands like:

 DJ & C
 Tasty Treat
 Clean Mate
 Sensei
 Care Mate
 Koryo and 44 other brands.

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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 available 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.
e.g. 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.
e.g. 3 Good Day family packs at Rs 60(Price of 1 pack
= Rs 22)
5kg oil + 5kg rice + 5kg sugar for Rs 599

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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 crore 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:
 “Saal ke sabse saste 3 din”

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  Hafte ka sabse sasta din “Wednesday bazaar”
 Exchange Offers “Junk swap offer”
 Future card(3% discount)
 Shakti card
 Advertisement (print ad, TV ad, radio)
 Brand endorsement by M.S Dhoni and Asin
Big Bazaar has come up with 3 catchy lines written on
hoardings taking on biggies like Westside, Shoppers stop
and Lifestyle. They are:
 “Keep West- aSide. Make a smart choice!”
 “Shoppers! Stop. Make a smart choice!”
 “Change your Lifestyle. Make a smart choice!”

People:

 Well trained staff at stores to help people with their

purchases
 Employ close to 10,000 people and employ around
500 more per month.
 Well-dressed staff improves the overall appearance of
store.
 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.

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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

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STRATEGY FOR THE YEAR ENDING
2009-2010

Quarter 1 (April’09 – June’09):

 Emphasis to be placed on coming up with new retail
outlets especially in Tier II Cities. 50 outlets to be
opened in Tier II cities.
 Plan to open up Big Bazaar supercentres (> 75,000 sq
ft) in Mumbai, Delhi and NCR.
 End of season sale in June.
 Festive offers during:

Festivals Date Day

Ramanavami 3/4/2009 Friday
Good Friday 9/4/2009 Friday
Baisakhi 13/4/2009 Monday
Maharashtra Day 1/5/2009 Friday

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Quarter 2 (July’09 – September’09):
 Monsoon wears to be available at stores at competitive
prices and good quality.
 Maintain hygiene and cleanliness even in monsoons.
 Timely delivery of products purchased.
th th
 ‘Saal ke sabse saste 3 din’ during 14 -16 August on
the occasion of Independence Day’.
 Festive offers during:

Festivals Date Day

Wednesda
Raksha Bandhan 5/8/2009 y
23/8/200
Ganesh Chaturthi 9 Sunday
21/9/200
Id-Ul-Fitar 9 Monday
19/9/200
Navaratri Start 9 Saturday
27/9/200
Navaratri Ends 9 Sunday
28/9/200
Vijay Dashami (Dasera) 9 Monday

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Quarter 3 (October’09 – December’09):
 Winter wear to be available at Big Bazaar outlets.
 More variety of clothes to be made available, more
emphasis on traditional dresses because of the festive
season.
 Advertisements during ICC Champions Trophy
(October 2009) by brand ambassador Mahendra Singh
Dhoni.
 Kids must be attracted by offering more products for
them such as toys, kids wear and games at Big Bazaar
outlets.
 Festive offers during:

Festivals Date Day

17/10/200 Saturda
Deepavali (Diwali) 9 y
28/11/200 Saturda
Id-Ul-Zuha 9 y
25/12/200
X-Mas Day 9 Friday

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Quarter 4 (January’10 – March’10):
 End of season sale in January.
 More offers and discounts in March because of the
end of the financial year.
 Festive offers during:

Festivals Date Day

14/1/201 Thursda
Makar Sankranti 0 y
28/2/201
Holi 0 Sunday

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