L/O/G/O

THE FUTURE GROUP

Contents
CORPORATE PROFILE HOW DID IT GROW CORPORATE PORTFOLIO CORPORATE CHAIN COMPANIES VISSION MISSION VALUES PORTERS 5 FORCE MODEL SWOT PEST PRODUCT MIX

CORPORATE PROFILE
Future Group is Indias largest retailer and one of the leading business houses. Its founder and Group CEO is Mr.Kishore Biyani . Future Groups retail network touches the lives of more than 200 million Indians in 73 cities and 65 rural locations across the country. Currently operates around 1,000 stores spread over 16 million square feet of retail space.

HOW DID IT GROW

1987 Company incorporated as Manz Wear Private Limited.
Launch of Pantaloons trouser, Indias first formal trouser brand. 1992 Initial public offer (IPO) was made in the month of May. 1994 Future Group India was established with a vision to provide diverse services in Indian and Global markets. 1997 Pantaloons Indias family store launched in Kolkata. 2001 Big Bazaar, Is se sasta aur accha kahi nahin - Indias first hypermarket chain launched in Jogeshwari,Mumbai. 2002 Food Bazaar, the supermarket chain is launched. 2007 Future Group crosses $1 billion turnover mark.

CORPORATE PORTFOLIO

CORPORATE CHAIN
CHAIN..

Vision

MISSION
We share the vision and belief that our customer and stakeholders shall be served only by creating and executing future scenarios in the consumption space leading to economic development. 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 should ensure that our positive attitude , sincerity , humility and united determination shall be the driving force in making us a success We will be the trendsetter in evolving delivery formats creating retail reality making consumption affordable for all customer segment for classes and for masses.

VALUES
Indianness Leadership Respect & Humility Introspection Openness Valuing and Nurturing Relationship Simplicity Adaptability Flow

STRATEGIES
Future Group has come with the following Three catchy Ad Campaigns for Big Bazaar :

Big Bazaars New Marketing Strategy Shoppers! Stop. Make a smart choice! Change Your Lifestyle. Make a smart choice! Keep West-aside. Make a smart choice! The sales target of 60.62 lakhs/week has been given to every Big Bazaar branch in Bangalore till 24th Mar 2011.

PORTERS 6 FORCE MODEL

Complements

Threat of new Entrant (HIGH)

Competitive Rivalry within Industry (HIGH)

Bargaining power of Suppliers (LOW)

Bargaining power of buyers (HIGH)

Threat of Substitutes (HIGH)

PORTERS FIVE FORCES

Threat of new entrant

ANALYSIS
FDI policy not favorable for international players Domestic conglomerates looking to start retail chain International player looking to foray India

Bargaining power of the Supplier

The bargaining power of supplier depending upon target segment The unorganized sector has a dominant potential There were a few players who have a slight advantage over others on account of being established players and enjoying brand distinction

PORTERS FIVE FORCES

Bargaining power of Buyer

ANALYSIS
Consumers are price sensitive Availability of more choice

Threat of Substitute

Unorganized retail

Rivalry among competitors

Reliance Retail Vishal Retail Bharti & Walmart etc.

STRENGTH
High brand equity State of the art infrastructure POP promotion Variety of stuff under one roof

WEAKNESS
Unable to meet store opening target Revenue declining/ sq. ft General perception

OPPURTUNITY
Emerging concept of organized retail Evolving customer preference Weak competition: Vishal retail and Reliance fresh

SW OT
THREAT
Government policy Other formats Super markets and Speciality stores with upcoming MNC retailers Unorganized retailers

POLITICAL
Properties of taking over properties and real estate Problems of getting subsidy from Octroi(local tax) and on different taxes like land,water etc. A stable govt at the center will facilitate speedy economic recovery and create an encouraging investment climate.

ECONOMIC
India one of the fastest growing economies Retail industry to grow increasing income of people Increase in percentage of service contribution to GDP

SOCIAL CULTURAL
Increase in nuclear families People prefer to shop in local store with reasonable price Increase in working women proposition Life style changes Shift in product and service preferences Increase in young population

P Stable even during recession E Growth stage:High revenue but high expenditure on promotion S TECHNOLOGICAL T Technological development for faster
service Better application of IT in the modern retail industry, like in supply chain management , store management and CRM Electronic billing Use ERP module for handling inventory and finance.

BCG MATRIX
BIG BAZAAR FOOD BAZAAR E-ZONE
BRAND FACTORY STAPLES, HOME TOWN,FU TURE BAZAAR, CENTRAL

PANTAL OON

FUTURE GENERA LI INSURA NCE

ANSOFFS MATRIX
PRESENT MARKET PENETRATION: 8 new stores in AP. PRODUCT/SERVICE New PRODUCT/ SERVICE DEVELOPMENT
Launched EKTAA branded rice in 5 variants in AP. Future Knowledge Services Limited (FKSL) Future Supply Chain Solutions Limited (FSCS)

PRE SEN T
M A R K E T

STAPLES,FUTURE BAZAAR

NEW

MARKET DEVELOPMENT: Brand Factory Central mall, Cosmos Planning to start wholesale stores in rural markets.

DIVERSIFICATION Launched T24 mobile facility in Hyderabad, GSM mobile service. BPO INDUSTRY, SUPPLY CHAIN SOLUTIONS,MEDIA, INSURANCE

MAJOR RESOURCES
TANGIBLE RESOURCES INTANGIBLE RESOURCES

Examples- Big Bazaar, Central,Ezone, Pantaloons, home town, food bazar, Brand Factory.

Widespread sales and distribution network and effectively managed supply chain.

Websites such as www.pantaloonretail.in www.futuregroup.com www.bigbazaar.com www.e-zone.com

Services like - Future Generali Insurance, FUTURE LOGISTICS SOLUTIONS Ltd., Future Knowledge Services

Capabilities and Core Competencies

> Effective and efficient Inventory control
> Diverse Industries > Volumes / Economies

CORE COMPETENCY
Best pricing throughout the year. A choice of more than 20,000 products Delivery across more than 1500 cities and towns in India covering around 16,000 pin codes Fast deliveries tie ups with world leaders in logistics & transportation services A dedicated Customer Care helpline for any queries Always offering Manufacturers guarantee as opposed to Sellers guarantee, which most of the other online shopping sites offers Talks of Quality and Cost Special emphasis on apparels and life style products Providing interesting discounts

ROCE & PROFIT MARGIN

YEAR 2008-2009 2009-2010

Profit Margin(ROS)

10.67%

11.36%

ROCE

14.73%

16.69%

Business Level Strategy

Cost Leadership
Big Bazaar & Food Bazaar

Focused Differentiation
Aadhaar : agri-service cum rural retail Brand factory- factory outlets for particular market segment

CURRENT GLOBAL STRATEGY

Improved product margins Reduced inventory throughout the business Co-operative strategy by doing joint ventures like with Staples Inc., U.S. in 2007, Generali Group, Italy to form Future Generali. Increased demand visibility across all the businesses

Recommendations for big bazaar

Retail through internet and web based technologies Need to focus more on CRM and improve in store assistance Invest in supply chain infrastructure More brands should be included Exchange offers should be made clear as customers are not clear of how to use them Aggressive expansion plan to open in tire II cities Facilities like free home delivery.

REFERENCES
www.bigbazaar.com www.ezone.com www.futurebazaar.com www.scribd.com www.googleimage.com www.slideshare.net www.authorstream.com www.retailrise.com www.pantaloonretail.in www.futuregroup.com