Vignesh-Bibin-Sharique-Kowshik-Madhumati

About Big BazaarLargest hypermarket chain in India.Brain-child of Kishore Biyani, first generation entrepreneur.First store opened in Kolkata in October 2001.Two more stores opened in same month at Hyderabad and Mumbai.

Market Segmentation Market is not just ANY people, they have to have Willingness to buy Purchasing power (money) Authority to buy.

Market Segment is, Set of potential customers Who have similar needs Who reference each other when buying.

Big Bazaar in this context have won the hearts of the customer and also changed the buying behavior of people as Big Bazaar provides all items in one roof at low rates.

"We are not in the business of selling ambience, but in the business of giving the best possible deals to our consumers.“ This how the Big bazaar segmented itself from others and captured the market share.

More Insights on Segmentation

Segmentation is grouping people who think/are alike into one.

The segment which Big Bazaar caters to is middle class consumer. It sets its marketing, prices and products for this consumer the image that it creates is being cheap with quality.

Big Bazaar started off with metro cities Kolkata, Hyderabad, Bangalore and eventually has moved to Tier-2 and Tier-3 cities .The Indian middle class consumer is more price-sensitive than service-sensitive

Essentials of Segmentation – Size and Profile

Essentials of effective Segmentation can be Measurable aspects like Size, Profile.

Big Bazaar in this aspect is spot on. It identified the size of the market for the better products at a lower price was huge and entered into the hyper market segment which gives different products in a single roof.

Being the first largest retail store in India high brand equity through this Market Segmentation and it has created a different image for its products as the cheap and best.

PROFILES OF SEGMENTATION

Profiles of segmentation may include Geographic, Psychographic, and Demographic Segmentation. The market and its boundaries in each category has been clearly identified by Big Bazaar

Based on the Attractiveness and Estimated profitability of each group stores in each location has been segmented and made sure that Need of the people in each part has been clearly addressed.

Big Bazaar has been spread through North, South, East, West catering and making accessible for different needs of different people,.

Conceptually it makes itself distinguishable and respond differently to marketing mix elements and programs

Big Bazaar establishes its stores in the heart of city and if in malls the store is in the Ground Floor facing the entrance of the Mall to attract Customers.

Contd., Psychographic Segmentation of Big Bazaar is according to Lifestyles of people in a particular Zone. Interests and Values of people in the Zone is given importance.

For Example Big Bazaar has agricultural Equipments in some districts where the Market size of Farmers and Agriculturalist is high.

Attitude of the people is also evaluated thoroughly and strategies, promotions are designed according to it.

Some may be value conscious, brand loyal. Also there may be region whose disposable income can be high.

Based on the Demographic Segmentation they have different sections for different ages. In particular “Fashion Bazaar” that has new, stylish, fashionable clothes for all age groups at nominal price.

TARGETING Targeting is generally by evaluating market segments, Level of competitors, Power of buyers and suppliers.

Generically it targets price conscious customers.

It targets semi-urban population with its placement of stores,.

Big Bazaar has found that children and women are primary decision makers and it specifically targets that category.

Growing young working professionals and Middle class category is also a preferred category.

For high end population it has launched a merchandise retailing website www.futurebazaar.com which targets high-end customers ready to use credit cards.

POSTIONING Big Bazaar generally Positioned itself as a low-cost retail outlet and believed in low pricing strategy. This has been a main factor in attracting the customers.

Decision ProcessProblem recognition & Problem Awareness

Information Search

Evaluation OF Alternatives

Purchase

Post Purchase Evaluation

Decision Making Process Active Problem recognition by the consumer Internal and External search of information for choosing Big Bazaar. Eg: search for offers

Evaluation of alternatives:

• Recommendations of Friends ad Family•Best deals and offers available• Proximity from home• Availability of products required• Price Sensitivity

Purchase:• Repeated Purchase•Long term commitments

Post Purchase:• Dissonance barely occurs.

Decision Making Process

High Involvement ↔ Low Involvement RPS LPS

1. Problem recognition Actual state type toDesired State Actual state type

2. Information Limited Minimumsearch Restricted to

Mostly internal internal sources sources only.

a) Number of

Several

brands considered One

b) Number of Several

sellers considered One/Few

3. Evaluation of alternatives

Number of product/service attributes evaluated

Moderate

Moderate

Simple (if at all)

One/None

4. Purchase Not so gradual Immediate

5. Post purchase processes Cognitivedissonance would be rare

Brand loyalty.Repeat purchase.

6. Time spent in purchase Moderate/Little Small/Minimal

7. Types of goods Mixed Convenience

FACTORS INFLUENCING CONSUMER BEHAVIORCultural Factors

Culture

Sub Culture

Social Class

Social Factors

Reference groups

Family

Roles & Status

Personal Factors

Age and Life Cycle Occupation Economic Circumstances Lifestyle Personality and Self Concept

Psychological

Factors

Motivation

Perception

Learning

Beliefs and

Attitudes

Buyers

Learning

• Motivation: The low prices and constant offers

• Cues: Advertisements, posters, in store promotions

• Response: People choosing Big Bazaar over other departmental stores

• Reinforcement: The offers and deals lead to repeat visits to the stores.

Perceptual SelectionNature of Stimulus

Advertising-Isse Sasta aur Acha Kahi nahi, Naye India ka Naya Bazaar, Wednesday bazaar-

HAFTE KA SABSE SASTA DIN, Exchange Offers

Brand name- largest Hypermarket Chain in

India

Expectations Low Price , Helping Staff

All products under one roof

All brands of products available

Motives Clothes, Food Items Grocery, Accessories

Motivation

Big Bazaar caters to the basic needs of a consumer

Maslow’s hierarchy

Elements of Diffusion

Diffusion

Innovation

Social System

Time

Communication

Innovation – Continuous Innovation

Social System – Middle class people

Time – Early Adopters, Early Majority, Late Majority

Communication – Print, TVC campaign, Social Media

InnovationContinuous Innovation

Wednesday Bazaar Sabse Sasta Din (Sabse Sasta, Sabse Acha)

6 days Maha Bachat The Great Exchange Offer

Social Media

Market Research on Big Bazaar Research Type: Descriptive Research Respondents: 50 Location: Express Avenue Collection Method: Primary-Questionnaire Tool used: IBM SPSS

47.41%52.59%

Gender

MaleFemale

16%

24%

20%

41%

Profession

BusinessServiceHome makerStudents

The proportion of women visiting Big Bazaar is slightly more than the men

TARGET SEGMENTStudents make the largest part of the population visiting Big Bazaar because of the low prices. The reason why home-makers are not at the 1st rank is probably because they tend to make most of their purchases from vendors near their residence.

below Rs.10000Rs. 10000-20000Rs. 20000-40000above RS. 40000

Dependent

23.70%14.30%14.50%

10.00%33.00%

Income of people

Number of respondents

12%

31%

11%

46%

Frequency of Visit

Weekly

Monthly

Quarterly

On Un-planned basis

BRAND PERSONALITYhighest people-dependents , least-high income group. positioning of “Sabse Sasta, Sabse Acha” worked out for Big Bazaar and depicted the brand as ‘SINCERE’

BRAND LOYALTYThe highest number of people said that their visits were unplanned.Brand Loyalty- weak.

22.81%

40.93%

18.76%

17.48%

Marts where people shop other than Big Bazaar

HeritageNilgirisStar BazaarReliance Mart

Nilgiris is the most popular Mart where people like to shop other than Big Bazaar.This shows that they are not brand loyal to Big Bazaar.

Weekday

s

Weekends

Wednesday

s0.00%

20.00%

40.00%

60.00%

20.50%

60.20%

19.25%

Preferred days

Preferred days

10 am-

1 pm

1 pm-

3 pm

3 pm-

6 pm

6 pm-10 pm

0.00%10.00%20.00%30.00%40.00%50.00%60.00%

2.70%

15.50%

28.40%

53.30%Preferred time of the Day

Preferred time of the Day

people preferred to shop on weekends inspite of the “Wednesday bazaar- HAFTE KA SABSE SASTA DIN”Offer. This shows that the Wednesday campaign was not much of a success

The highest number of people said, their visits were in the period of 6pm-10pm i.e after work hours

Clothes29%

Accessories15%Grocery

18%

Food Items28%

Electronic Items

7%

Others3%

Types of products purchased

MOTIVES OF PERCEPTUAL SELECTIONpeople visit Big bazaar for not only groceries, but also other items such as- Clothes, food items and accessories

Mode of Payment

Cash Credit Card Debit Card0

50100150200250300350 316

7217

Mode of Payment

Mode of Payment

Nearly 80% of the consumers of Big Bazaar preferred to pay their bills through cash. Only a little more than 20% paid through credit or debit cards.

ATTRIBUTE RANK

Price 1st

Variety 2nd

Quality 3rd

Service 4th

Ambience 5th

Price is the main factor why people visit Big Bazaar.Cognitive components: Variety (2nd), Service (4th)Affective components: Ambience (5th)Conative components: Price (1st)

< 30 mins

30mns-1 hr

1 hr-2 hrs

> 2 hrs

0.00% 10.00% 20.00% 30.00% 40.00% 50.00%

5.90%

31.80%

45.00%

17.30%

Time Spent per Visit

Time Spent per Visit

Less than 6% people said that they spend less than 30 mins at Big Bazaar. This is a motivating revelation from the people.

40

138

154

73

Money Spent per visit

< 500500-10001000-2000> 2000

More than 50% of Big Bazaar customers pay a bill of more than 1000 rupees per visit. This is another motivating point to make note of.

Brand Personality

• Sincerity-Provides a complete shopping experience- Lives upto the promises communicated through ads.

• Competence:-Availability of products-Best offers and deals-Stores widely spread-Reliable

• Ideal Self Image

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