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Vs Dmart
Nikunj Katkoria (38)
Shaili Baranwal (50)
Vrushali Avhad (60)
Role of Macro Environment in Retail Industry
• The macro environment includes economic, technological, societal and governmental influences
Government: Technology:
1) Laws, regulations and other government policies can 1) Technology not only creates new products for retail
have a number of positive or negative effects on the companies to sell, but also plays a major role in changing the
retail industry. way retail companies do business.
2) Government assistance, such as government-backed 2) Barcoding and computerized billing systems have improved
loans and subsidies, can help fledgling retailers grow or
the retail industry by allowing retailers to develop new
allow an established company to keep costs low for
processes that increase efficiency.
consumers.
3) However, government policies can also hinder 3) Point-of-sale systems increase sales by allowing retailers to
businesses by imposing regulations that increase costs process cash, check, credit- and debit-card payments.
Role of Macro Environment in Retail Industry
Economic: Social:
1) Retail sales are driven by the economic environment 1) Changes in social values and trends impact the goods
2) A robust economy correlates to an increase in retailers sell and how retailers relate to consumers
consumers' disposable income, increasing sales and
2) The retail industry is often under pressure to develop and
allowing retailers to sell more valuable goods, such as
implement socially responsible business practices, such as
high-end electronics
selling environmentally-friendly products, placing warnings or
3) On the other hand, a sluggish economy decreases
restrictions on potentially harmful goods, and removing
consumer confidence and can cause people to spend
recalled or controversial products from the shelves.
less, leading to declining sales and forcing retailers to
lower prices
Role of Micro Environment in Retail Industry
The micro environment includes suppliers, intermediaries, customers and competitors
Intermediaries:
1) Intermediaries are firms that aid the retail shop in
promoting selling and distributing its goods to final buyers
Suppliers:
2) Marketing service agencies-marketing research firms,
1) Developments in the ‘suppliers’ environment can have advertising agencies, media firms and marketing consulting
a substantial impact on the retailer’s marketing firms – assist the retailer in targeting and promoting its
operations products to the right markets
2) Supply shortages and other events can prevent 3) Financial intermediaries include banks, credit companies,
fulfilling delivery promises and lose sales in the short
insurance companies and other companies that help finance
run and damage customer goodwill in the long run
firm and / or insure risk associated with the buying and selling
goods
Role of Micro Environment in Retail Industry
Customers: Competition:
1) The level of competition also impacts your economic livelihood
1) Customers have the most direct microeconomic
impact on a business 2) A retailer rarely stands alone in its effort to serve a given customer
2) A retailer links himself with suppliers and middlemen, market. His efforts to build an efficient marketing system to serve the
so that he can efficiently supply appropriate products market are matched by similar efforts on the part of others.
and services to its target market 3) The retailer’s marketing system is surrounded and affected by a host of
competitors. These competitors have to be identified, monitored to
capture and maintain customer loyalty.
Competition
Rank Retailer No. of Stores Owned Sales in FY14-15 US$ Millions
1 Wall-Mart Stores Inc. (USA) 4178 $180,787
2 Carrefour Group (France) 8130 $61,047
3 The Kroger Co. (USA) 3445 $49,000
4 The Home Depot Inc. (USA) 1134 $45,738
5 Royal Ahold (Neatherlands) 7150 $45,729
6 Metro AG (Germany) 2169 $44,189
7 Kmart Corporation (USA) 2105 $37,028
8 Sears, Roebuck and Co. (USA) 2231 $36, 823
9 Albertson’s Inc. (USA) 2512 $36,726
10 Target Corporation (USA) 1307 $36,362
Marketing Goals of Big Bazaar
• To attract more and more customers at their
store
Manufacturers
Local Vendors
Local Vendors
Pricing Strategies @Big Bazaar
They work on the model of economics of scale. Their pricing objective is to get “Maximum
Market Share”.
The various techniques used at Big Bazaar are:
1. 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.
2. Promotional Pricing : Big Bazaar offers financing at low interest rate. The concept of psychological
discounting (Rs. 99, Rs. 49, etc.) is used as promotional tool. Big Bazaar also caters on Special
Event Pricing
3. Differentiated Pricing : Time 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
4. Price Bundling : Selling combo-packs and offering discount to customers. The combo-packs add
value to customer
5. Psychological Pricing/ Odd pricing: setting prices in 49, 99, 699 etc. i.e. slightly lower than
rounded numbers
BRAND PERSONALITY TRAITS OF BIG BAZAAR
It promises value for money, low prices, good deals and now claims to be the shopping
destination of the new generation
Brand Pyramid
One stop solution
Essence