Big Bazaar Retail Strategy

Sohel M Jamadar - Retail Management Strategy Assignment of 11

Individual Retail Visit Report OBSERVATIONS AND ANALYSIS OF BIG BAZAAR, BHARUCH, GUJARAT.


Cardiff Metropolitan University

Karjat, Mumbai.

Retail Management Strategy

MODULE TUITOR: Mr. Bibhas Basumatary

Semester 2: 2014 -15

Assignment – 1:

Observations and Analysis of a Retail Store

Prepared BY

Name: Sohel Jamadar

Batch: CMBA 4

Cardiff Student Id: st20076738


Contents

Brand Philosophy .................................................................... 4

Socio-Economic Importance of Big Bazaar in Bharuch,

Gujarat ..................................................................................... 5

Retail Type and its Product/ service Categories .................... 6

Merchandise Mix .................................................................. 6

Servicing ................................................................................ 6

Evaluation of the Key Strategic Drivers of Retail Industry .... 7

Strategy ................................................................................. 7

Modern Technology Deployed by Big Bazaar .......................... 8

Marketing Mix Strategy Adopted By Big Bazaar to Gain

Competitive Advantage .......................................................... 9

Bibliography ........................................................................... 11


Brand Philosophy

“Retail involves the sale of goods from a single point (malls, markets, department stores etc.)

directly to the consumer in small quantities for his end use (Management Study Guide,

2013)”.

“Retailing is defined as a conclusive set of activities or steps used to sell a product or service to consumer for their personal or family use (Shinde, Khaparde and Kazi, 2013-14)”.

The Retail Sector of Indian Economy is going through the phase of tremendous

transformation. The retail sector of Indian economy is categorized into two segments such as

organized retail sector and unorganized retail sector with the latter holding the larger share

of the retail market. With the onset of a globalized economy in India, the Indian consumer's

psyche has been changed. People have become aware of the value of money. The retail

industry is one of the biggest money spinners in the world, notching up US$ 6.60 trillion (Rs. 2.64 crore

crore) in turnover (Source: Euromonitor Study).

Naye India Ka Bazaar, it clearly signifies the youth population of India. Big Bazaar is on constant

innovation of its offering as it has to maintain low level margin that caters different sector of society in India. Big Bazaar as a hyper market is designed to be for Indian customers.


Socio-Economic Importance of Big Bazaar in Bharuch, Gujarat

The discount retailers which has spent last 3 years to re-position themselves as the modern retailers

as more hip and trendy, with 52 week of social media campaign pushing everything from linen shirt to denim jeans and all grocery items and homeware products.

With one store in Bharuch freestanding or standalone store was the convenient palace for me to visit

as for others, as it is situated at the centre of the city which catches the eye of almost every individual

in the city. With its new and exciting offers big bazaar is able to attract more and more footfalls to visit

their stores, Sabse saste 5 din The Wednesday Bazaar been the great hit for big bazaar success. The

advantage big bazaar enjoys as the only hyper market in the city also there are no retailer nearby to whom it has to share their traffic with. They are

Main location with lot of front space

No close/far competition in close proximity

High flexible timing with lower irritation of traffic

First mover advantage as the only hyper market in the current location

Reduction in cost is important to maintain low prices.

No rental fee as the place and the building is owned by the same owner

Structure of building is to store basically to divide grocery and apparels market

Store is accompanied with inox multiplex theatre which works as the attracting point for them.

With eye catching advantages with retail industry there are also disadvantages that play a vital role

which help this hyper market to improve their strategies and maintaining long term advantage s. They are

High competition with regard to consumer durable products with reliance digital and other

small electronic players.

With high product variety there has been space problem arising that works as hurdle in time

of seasonal sales.

Cost of operation that are required to run store are borne by bug bazaar that add to the cost to the final consumer.

Big bazaar takes over its disadvantage as it is the only hyper market catering to different need of

different customer which are not fulfilled by others retailers in that particular area. There is

competition mainly in electronic products which are offered by some of the national and local players.


Retail Type and its Product/ service Categories

Big Bazar comes under hyper market retail format. It sells everything from apparels to kitchenware,

from kids wear to men and women wear. Big bazaar is a hyper market combining super market and

departmental store providing all range of products of grocery and general merchandise all under one roof. They are mainly in food, grocery, apparels, furnishing, and consumer durables retail.

Merchandise Mix

Apparels Food Product Chill station Home & personal care

Fashion & Jewellery

Child care & toys

Formal wear Staple Soft drinks Shampoo Footwear Kids wear

Denim Ready to cook Packed juice Detergent Beauty care Toys

t-shirts Ready to eat Milk items Liquid wash Accessories Sanitary care Fabrics Spices Frozen food Beauty

product

Party wear Beverages Ice cream Utensils Sarees Tea & coffee Crockery

Kids wear Plastic items Seasonal wear

Servicing

Big bazaar provides a wide range of service to its customer like trial room, elevator, car parking,

security, baggage counter, customer help desk. They provide a wide range of product and after sales

service by providing on stop shop for their buyer especially in electronic goods. They provide a very

convenient shopping experience to their customer, there are sales people who are trained to help the

customer to find their way, also the store layout plays a significant role in arranging product which are fast moving to slow moving.


Evaluation of the Key Strategic Drivers of Retail Industry The global retail landscape is changing in some dramatic ways. Retail sales are currently improving. At

the same time, competitiveness of both the U.S. retail and global marketplace is escalating. Whereas

category dominant retailers were once the store of choice for a variety of products, chains like Wal-

Mart, Carrefour, METRO Group, Tesco and Target have taken over in most categories ranging from

toys to jewellery. Costco is the sixth largest retailer in the U.S. and the ninth largest in the world. A

critical component of their strategy is value-based pricing. They generally do not mark-up merchandise

more than 14 %, compared to most supermarkets and department stores who mark-up products 25

and 50%, respectively (Krafft and Mantrala , 2010). With current economic scenario it is clear that

there is a significant increase in consumer expenditure, with the increase in future demand retailer

will have to be more flexible in terms of delivery and after sales services.

Strategy

Store Location: - store location is very important for the store like big bazaar as they play as

the discount retailers where cost reduction is the primary function to maintain profitability.

In city like Bharuch occupying place in the centre of the city is difficult and expensive, however

being single hyper city market maintains monopoly in this business.

Product Mix: - Big bazaar offers large range of product mix. General perception in the mind

of the big bazaar customer is value for money driven.

Store Design: - it creates an image in the mind of the customer what the store is all about.

Exterior as well as interior design of store is attractive to customer giving a sense of freedom

to choose.

Target consumer: -

Geographic: - Bharuch, Gujarat

Demographic: - housewife’s, Young boys and girls, Kids (12-15 years), indulge buyer, snackers, and working class people.

Psychographic: - Stylish, self-esteemed, status oriented, self-conscious, price conscious.

Behavioural: - quality, weekly buyer, monthly buyer, style conscious.


Modern Technology Deployed by Big Bazaar

With the increasing customer base and number of stores it has become compulsory for each and every

retailer to invest in IT for the smooth functioning of their organisation. With the evolving technological

use retailers and e-commerce players are able to track the customer behaviour, their shopping trends,

most importantly they can offer right product to the right customer at the right time which help them to be more competitive (Forbes, 2015).

India’s future group Big Bazaar has made its operation completely IT base by deploying EPOS and retail

software from a German based Wincor Nixdorf a leading Innovative IT solution provider for retail

stores and retail bank to streamline their operation and to increase the customer experience at the store.

Deployment of Information system code reader and EDI (electronic data interchange) for sharing

order procurement detail information with the suppliers and within all stores. Implemented future

SAP system and RFID system to manage the consignment arrived at every store and to get information

of the store inventories (Wincor Nixdorf, 2010).

EPOS AND SAP System Implementation


Marketing Mix Strategy Adopted By Big Bazaar to Gain Competitive

Advantage

An effective marketing strategy combines the 4 Ps of the marketing mix. It is designed to meet the

company’s marketing objectives by providing its customers with value. The 4 Ps of the marketing mix

are related, and combine to establish the product’s position within its target markets. (Kotler, Armstrong and Cunningham, 2005).

7 Ps of Marketing Mix

Product : -There is no point in developing product which no one wants to buy, yet many

business find a way to offer the product and then to find the market. Perfect product must

provide value to the customer by providing what customer and not what we think they

want. Big Bazaar being the super market offers a variety of products and service to its huge

base of customer by helping those offering goods they want to buy at low price. High margin

product are kept on top selves of the rack keeping in mind the psychology of catching eye

level attraction. Product Width, Breath, Length are wide as there are number of branded and

in house brand product are offered by big bazar.

Price: - Price is an integral part of any business marketing mix. As a discount retailer’s big

bazaar is famous for its low pricing policy. Price of merchandise is kept at minimal or at the

market price, there are bundle offers and cash discount offered in order to be more

competitive. Product is only worth what customer are ready to pay for it. Product price need

to be competitive but that does not necessarily mean cheapest, small business may compete

with large business by providing extra benefits, service and value for money.

Place: - The place where customer buy your product and mean of distributing your product

to that place must be appropriate and convenient to customer. The product must be

available to right customer at the right time right place and in the right quantity. Place also

mean the medium through which you reach to your customer, big bazaar has its online


presence helping its customer base to reach them fast and allowing them the convenience

of purchase from their home.

Promotion: - Promotion is the company communicates what is does and what is can offer

to the customer. Good promotion strategy is not one way communication rather its two way

process opting to get respond of its promotional strategy. Promotion communicates the

benefits that a customer obtains from the product not the feature of the product. Some of

the promotional strategy adopted by big bazaar are: -

Promotional offers (i) Saal k sabse saste 3 din

(ii) Wednesday Bazaar

(iii) Future Card (3% discount)

(iv) Shakti card(women)

(v) Advertisement (T.V, Radio, Print, etc)

(vi) Exchange Offer

(vii) Point of purchase promotion

People: - Anyone who comes in contact with the customer makes an impression

whether it be positive or negative, reputation of your brand depends upon your

peoples hand therefore it is very important to train your staff in customer handling.

Big bazaar has customer service desk which help the lost or undecided customer to

purchase their right product.

Physical Evidence: - Product are displayed on the rack where people have security

that the product act as the physical evidence in order to exchange of money. All the

products are kept at a distance and the store is spaciously laid out. The physical

evidence demonstrated by the organisation must confirm the assumption of the

customer.

Process: - The delivery of your service is usually done with the customer present so

how the service is delivered is once again part of what the consumer is paying for. In

Big bazaar customer are free to roam and select the product of their choice which is helped by the shopping kart then the checkout is carried out by final payment desk.


Bibliography

1. Forbes (2015) 5 Tech Trends That Will Hit Every Retail Store By 2020, March,

[Online], Available: http://www.forbes.com/sites/centurylink/2015/04/03/5-tech-

trends-that-will-hit-every-retail-store-by-2020/ [April 2015].

2. Kotler, P., Armstrong, G. and Cunningham, P.H. (2005) Principles of Marketing, 1st

edition, Toronto: Pearson Education Canada.

3. Krafft , M. and Mantrala , M.K. (2010) Retailing in the 21st Century: Current and

Future Trends, 1st edition, Pringer-Verlag Berlin Heidelberg.

4. Management Study Guide (2013) Understanding Retail - What is Retail ?, [Online],

Available: http://www.managementstudyguide.com/what-is-retail.htm.

5. Shinde, D.G.P., Khaparde , D.R.D. and Kazi, N.S. (2013-14) Retail Management, 1st

edition, Pune: Thakur Publicztion pvt. ltd.

6. Wincor Nixdorf (2010) India’s Future Group invests in Wincor Nixdorf’s retail

software and point-of-sale technologies as part of its country-wide store growth

strategy, 10 October, [Online], Available: http://www.wincor-

nixdorf.com/internet/site_TH/ASP/WincorNixdorf/Press_ASP/pressreleases/2010/Fu

ture%20Group.html?nn=602366 [2015].

http://www.forbes.com/sites/centurylink/2015/04/03/5-tech-trends-that-will-hit-every-retail-store-by-2020/

http://www.forbes.com/sites/centurylink/2015/04/03/5-tech-trends-that-will-hit-every-retail-store-by-2020/

http://www.managementstudyguide.com/what-is-retail.htm

http://www.wincor-nixdorf.com/internet/site_TH/ASP/WincorNixdorf/Press_ASP/pressreleases/2010/Future%20Group.html?nn=602366



Big Bazaar Retail Strategy

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