Future group: The Walmart of India

Group no-3Nasir MalikKhalilullahDeepu shawHrushikeshLisha RafeekSubodh Kumar

Objective of this case

Understand the issues and challenges faced by Walmart

and Future Group. 

Analyze the retail formats and promotional strategies

adopted by Walmart and Future Group. 

Analyze the potential for growth for Walmart and Future

Group. 

Examine how Walmart and Future Group would combat

competition from other leading retailers. 

Company Profile

Founded by Mr. Kishore Biyani.

Incorporated in 1987 as Manzs wear Pvt. Ltd.

In 2006 its name changed as Future Group.

Head quarters in Mumbai.

Employees over 30,000 people.

Has over 1000 stores in 61 cities of India.

Spread of 1.3 million square feet.

Retail format

Retail format

E-Commerce- offers wide range of product to doorstep.

Food Baazar- chain of large supermarkets, Brew Bar..

Fashion- brand includes- all, blue sky, etc.

Home and Electronics, General merchandise.

Leisure and entertainment, wellness & beauty

Books and music and communication.

Pantaloon retail chain, Hypermarket- Big Bazar

Supermarket and departmental stores.

Retail formats of walmart

Retail formats of walmart

Discount stores, supercenters, specialty stores.

To meet growing demand for one shop family purchase.

Neighborhood markets- selling ltd drugs and groceries.

Online music store, merchandise stores, food and drugs

Small markets(bodegas), cash and carry stores

Membership warehouse clubs, apparel stores.

Promotions

Direct selling model- to touch and feel the product.

Walmart slogan- always low price.

Bigbazar- isse sasta aur achcha kuch nhi.

Bigbazar to maximize market share used slogan-

Saal k sabse saste teen din.

Innovative offers like wednesday bazaar.

Hafte ka sabse sasta din to attract customers on week

days.

Promotions

Exchange offers called the junk swap.

Slogan- bring anything old and take something new.

Bigbazaar also advertise on T.v, radio and print bill board.

Low price proposition- chane k bhaw kaaju.

Celebrity endorsement- M.S. Dhoni, gurella marketing.

Termed as value for money stores, 6 day biannual

compaign.

Psychological discounting like 99, 49

Special offers on festivals, buy one get one offers.

Technology deployment

Operational strength of walmart was info. Sys.

Bar code reader and EDI (electronic data interchange) for

information sharing with suppliers with in & across the stores

Retail link to study POS data & product inventories.

Introduced RFID to have more visibility in S&C.

Implemented SAP to build transact. Mgt. sys.

Walmart launched e-commerce stores .

Future group also launched e- commerce.

Human capital

Walmart known for giving importance to its employees.

High employee turnover, low pay.

Relying on temporary labor.

Benefits package, especially health care coverage.

But criticized for its employee relation.

PRIL used its employees as assets.

Implemented several T&D programs to encourage..

Implemented Happy index program.

International ventures

In 1990, walmart started international expansion.

By 2004 it had 4900 locations in US, europe & asia.

Entered in canada in 1994 with acquisition of 122stores.

In 2004, walmart purchased supermarket chains in Brazil.

And later entered into china and japan.

Entered India into joint venture with Bharti enterprises.

Future group did not have international market.

However entered into joint venture with several foreign

player.

Competition

Walmart faced competition from departmental stores-

eg- Target, Kmart, costco, & BJ”s wholesale club.

Dollor stores- to combat walmart launched walmart

express, a mini version of its discount stores.

Furute group faced competition from organized retailers

Such as reliance retail-marks and spencer,

RPG group-spencer, bharti-walmart, shopper’s stop

Tata tesco star bazaar, lifestyle international, and trent.

Competition

walmart and future group has to face biggest competition

with unorganized sectors.

As in India mare than 95% retail market is unorganized.

Inspite of competition with organized retail sector-

Walmart and future group managed to successfully launch

new retail formats and it tried to cover entire retail ambit.

Looking ahead

PRIL offered discount on a continuing basis.

Observer opined that walmart and future group used

innovative add strategies to attract customers.

Future group still have to compete with foreign and

domestic players to retain its market leadership.

Walmart launched 5 year strategy to offer more healthier

and affordable food choices.

PRIL also had a plan to achieve a turnover of Rs. 300bn.