INDIA KA NAYA BAZAR

GROUP-1ANUBHI RAIKWAR

OBJECTIVE OF THIS PRESENTATION

TO UNDERSTAND RETAILING AND RETAIL FORMATS

UNDERSTAND BUSINESS MODEL OF “BIG BAZAR”

PORTAL’S FIVE FORCES MODEL

LEARNINGS FROM THE CASE

RETAILING FINAL STEP IN THE DISTRIBUTION OF MERCHANDICE

BULK PRODUCER RETAILING

FINAL CONSUME

R

RETAIL FORMATSORGANISED

SPECIALITY STORES

DEPARTMENT STORES

CONVENIENCE STORES

HYPERMARKETS

SUPERMARKETS

MALLS

CATEGORY KILLERS

E-TAILORS

VENDING MACHINES

UN-ORGANISED

MOM AND POPPEDDLERS AND

HAWKERSMARKET

TRADERS 7 STREET TRADERS

INDIAN RETAIL

Highly fragmented 10% contribution to GDP of India World’s 8th largest market Transformation from

TRADITIONAL(KIRANA)

ORGANISED(SUPER

MARKET)

BIYANI

“RAJA OF RETAIL”

ABILITY TO PULL CUSTOMERS FROM TRADITIONAL BAZARS TO HIS SUPER MARKETS

BIG BAZAR

TYPE OF MARKET

HYPERMARKET/ SUPERMARKET

BUSINESS MODEL

SUCCESS

PRODUCT

PRICES

PROMOTION

PLACEPHYSICAL EVIDENCE

PROCESS

PEOPLE

7 P’S

SUCCESS BEHIND TRADITIONAL RETAIL

CONTRIBUTION TO LARGE AMOUNT OF INDIAN RETAIL SALES

WHY? LOW SHOP RENT LOW LABOUR COST LESS EMPLOYEES MORE SALES OF VARIED PRODUCTS CONVENIENT TO CUTOMER’S REACH TRADITION OF OFFERING CREDIT

MODERN RETAIL

OPPORTUNITY FOR RAPID GROWTH IN INDIA

WHY? INCREAS IN DEMAND OF CONSUMER GOODS LIBERALISATION ON IMPORT OF CONSUMER GOODS BY REDUCING IMPORT

TARRIF ENABLING LOCAL RETAILERS TO PROVIDE INTERNATIONAL PRODUCTS TAEGET - LAGEST BIG CITIES WHY?

• DIFFICULTIES IN OPERATIONS ANS SUPPLY LOGISTICS IN SMALL CITIES

• POOR INFRASTRUCTURE

ANALYSIS

1. Rivalry among existing firms

2. Threats of new entrants

3. Bargaining power of buyers

4. Threats of substitute products or services

5. Bargaining power of suppliers

INDUSTRY COMPETITO

RS

POTENTIAL ENTRANTS

BUYERS

SUBTITUTES

SUPPLIERS

PORTER’S FIVEFORCE MODEL

31

4

2

5

Company promised that they provide lower cost than other stores

and bazars

Reliance announced major retail plansWal-mart - if FDI introducedExecutives may shift from the company

No threat of substituteAs consumers love bargains- company’s tagline was “isse sasta aur accha kahin nahin”

Global retailersReliance-India’s largest business house

1 25

4 3

LEARNINGS

Involvement in the business Understanding your customer Ability to pull customers from Not just delegation is important sometimes responsibility with

position should be given Trust in the management team Effective promotion