BIG BAZZAR Mradul Raj Pachouri_Service Marketing _Sec B

8/9/2019 BIG BAZZAR Mradul Raj Pachouri_Service Marketing _Sec B

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SUBMITTED TO:Prof. ASHWINI SOVANI

Submitted by-Mradul Raj Pachouri08BS0001794Section B

BIG

BAZAAR-Isse sasta

aur acha

kahin

nahin


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BIG BAZAAR-Isse sasta aur acha kahin nahin 2009

SERVICE MARKETING Page 2

Table Of Content

S.NO Topic Page Num

1 Indian Retail Industry 32 Introduction-Big Bazaar 5

3 Observation & Analysis 7

4 Service Gaps 11

5 Recommendations 12

6 Other Holdings by the Future Group 14

7 References 15


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INDIAN RETAIL INDUSTRY

India retail industry is the largest industry in India, with an employment of around 8%

and contributing to over 10% of the country's GDP. Retail industry in India is expectedto rise 25% yearly being driven by strong income growth, changing lifestyles, and

favorable demographic patterns.

It is expected that by 2016 modern retail industry in India will be worth US$ 175- 200

billion. India retail industry is one of the fastest growing industries with revenue

expected in 2007 to amount US$ 320 billion and is increasing at a rate of 5% yearly. A

further increase of 7-8% is expected in the industry of retail in India by growth in

consumerism in urban areas, rising incomes, and a steep rise in rural consumption. It

has further been predicted that the retailing industry in India will amount to US$ 21.5billion by 2010 from the current size of US$ 7.5 billion.

Shopping in India have witnessed a revolution with the change in the consumer buying

behavior and the whole format of shopping also altering. Industry of retail in India

which have become modern can be seen from the fact that there are multi- stored malls,

huge shopping centers, and sprawling complexes which offer food, shopping, and

entertainment all under the same roof.

India retail industry is expanding itself most aggressively; as a result a great demandfor real estate is being created. Indian retailers preferred means of expansion is to

expand to other regions and to increase the number of their outlets in a city. It is

expected that by 2010, India may have 600 new shopping centers.

In the Indian retailing industry, food is the most dominating sector and is growing at a

rate of 9% annually. The branded food industry is trying to enter the India retail

industry and convert Indian consumers to branded food. Since at present 60% of the

Indian grocery basket consists of non- branded items.

India retail industry is progressing well and for this to continue retailers as well as the

Indian government will have to make a combined effort. Indian retail sector is

witnessing one of the most hectic marketing activities of all times. The companies are

fighting for mind share and heart share which can finally be converted to market share.


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Growth trend over 10years


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BIG BAZAAR

FOR THE GREAT INDIAN MIDDLE CLASS

There is always a first mover advantage in an upcoming sector. In India, that

advantage goes to Big Bazaar. It has brought about many changes in the buying

habits of people. It has created formats which provide all items under one roof at lowrates, or so it claims. It is a unit of Pantaloon Retail (India) Ltd and caters to the Great

Indian Middle Class. It was started as a hypermarket format in Mumbai with approx.

50,000 sqft of space. Its values and missions are to be the best in Value Retailing by

providing the cheapest prices and hence goes the tag-line Is se sasta aur achcha kahin

nahin


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PRODUCT MIXApparel Food Farm

Produce

Chill

Station

Home &

Personal

Care

Electronics

Bazaar

Furnitu

re

Bazaar

Fashion &

Jewellery

Child

Care &

Toys

Other

Services

Denims &

T-shirts

Staples Fruits Soft

Drinks

Shampoos Television Set Living

Rooms

Footwear

Bazaar

Kids

Wear

Mr.

RightFabrics &

Cut Piece

Ready To

eat

Imported

Fruits

Package

d Juices

Detergent Washing

M/Cs

Bed

Room

Beauty

Care

Toys

Bazaar

Bakery

Formal

Wear

Ready to

Cook

Dairy

Products

Milk

Items

Soaps Refrigerators Kitchen Navaras Stat ionar

y

Loot

Mart

Casual

Wear

Internatio

nal Food

Frozen

food

Liquid

Wash

Personal

Care(Shave

etc)

Dining

Hall

Star

Parivar

Child

Care

Tulei

Party Wear Spices Ice

Creams

Creams mBazaar Kids

Room

Meena

Bindre

Future

Money

Ethnic

Wear

Tea &

Coffee

Deodoran

ts

Microwaves Bean

Bags

Future

Genralli

Accessorie

s

Home

cleaners

Small

Appliances

Painting

s

Under

Garments

Utensils Laptops Decorati

ve items

Nights

Wears

Plastics Computer

Appliances

Dress

Materials

Crockery Kitchen

Appliances

Sarees Sundries

It sells variety of merchandise at affordable rates, the prices of which it claims are

lowest in the city but the level of services offered is also very low. Usually the items are

clubbed together for offers as on the lines of Wal-mart and Carrefour and it also offersweekend discounts. It currently operates out of 64 stores and top 15 stores register a

cumulative footfall of 27lakh a month on an average. Big Bazaars main competitors areother business houses which are planning to enter the market as well as long

established Kirana stores which feel threatened by huge retail chains. Kirana stores are

indispensible part of everyday life which provide major necessities just around the

corner of the street. So we will study the customer preferences as well as their buying

patterns.

Big Bazaar has been the pioneer of retail revolution. Its first fight was against localKirana stores. The task was to change the mindset of consumer to bring about changes

in their shopping patterns. It wanted people to do bulk shopping for their monthly

ration instead of going to the shop each week.


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Strategies Saving is the key to the Indian middle class consumer. The concept of Bazaar, As the store offers large mix of products at a discounted

price, the name Big Bazaar was finalized

The idea was to recreate a complete bazaar, with a large product offering andoffer a good depth and width in terms of range

Price was the basic value proposition at Big Bazaar. The Big Bazaar outlets sold a variety of products at prices, which were 5 to 60%

lower than the market price.

The catch line Isse sasta aur acha kahin nahin emphasised this tagline.

OBSERVATION & ANALYSIS OF BIG BAZAAR Trolleys are not easily available, especially on other than ground floor. Little attention to cleanliness. Dust on shelves as well as some product items. In-house packaging not efficiently done. Crowded store interiors. Items are arranged in a cluttered way. Tried to stock

maximum number in limited area.

Sign boards are not prominent. Lack of direction creates confusion.


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Family crowd is evident. Youth comprises of only around 10% of the crowd. Food Bazaar very efficiently managed. It is a bit over-staffed but layout is very

good. Shelf space is used very well to stock products with clear distinction.

If we thing according to 7 P of marketing. Then we can broadly classify as below.Product

Big Bazaar scores high on the product part of marketing mix. Customer has more choices of brand in Big Bazaar rather than kirana store. Customers like touching the product and selecting it themselves before buying. The customers trust retail chains with quality of the product. They feel food

products of Big Bazaar will have no adulteration. This quality is not assured in a

kirana store.

Cheap and local brands are heavily stocked in Big Bazaar which makes it easierto attract lower-middle class category of customers.

Price Almost everything has some kind of discount in Big Bazaar. It clubs small quantities to make bigger packs and then lower prices which

kirana stores are unable to do.

It considers price to be the biggest attraction for all customers. Consumers accept the fact that they come from faraway places because it is

cheap in Big Bazaar for bulk shopping.

Customers feel same price for all customers as a plus point of Big Bazaar ascompared to differential price policy of kirana stores.

Some customers feel cash discount is fine but bulk offer deals are of no usebecause you end up getting more than you want which is a waste.


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Promotion

Retail chain Big Bazaar cannot survive without promotions on national orregional level.

A big ad budget helps it to get large scale of operations. Customers accept the fact that advertisement campaign of Big Bazaar did

influence them in their buying behavior.

Its Buy 2 Get 1 Free strategy influences the customer mindset a lot once theyenter the store.

Customers feel loyalty card schemes make them come again and again to thestore.

Advertising: The Essential of Brand Building Process

Advertising is an essential component of brand building. The advertisement and brandbuilding is done through various ways, the techniques used are: -

Tag-line: Big Bazaar tag-lines are the key components of advertising. These tag-lines are

modified according to demographic profile of customers. These catch-phrases appearedon hoardings and newspapers in every city where Big Bazaar was launched. Everybodyunderstood and connected easily with these simple one-liners. The catch-liners include

"Hindi - Chane ke bhaw kaaju", "Bengali - Rui erdame illish", "Hindi - Stall ke bhawbalcony", etc.

Print Ads: Big Bazaar newspaper advertisements are present just before launch of any

new scheme.This creates aura about the Big Bazaar brand in the minds of customers.

TV Ads: Kishore Biyani spends a lot of money in brand building exercise. Big Bazaar

commercials are shown on various channels in India. Presently, Fashion@Big Bazaarcommercial is aired.

Road-side Advertisements: Big Bazaar bill-boards are displayed on prime locations invarious cities asa brand building exercise. They display the catch-phrases now-a-days.

Radio Ads: This technique is used in cities like Sangli (Tier 1 / Tier 2 cities). Now-a-

days, it is replaced by advertisements on FM channels. This informs customers about allnew happenings at Big Bazaar.


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Fashion Shows: "FASHION @ BIG BAZAAR - Desh Badla, Bhesh Badlo" is the latest

invention of the Indian iconic brand. In an effort to take the Fashion to the masses, BigBazaar, the flagship hypermarket brand of retail chain of Future Group, organized athree-day Fashion Show on the streets of Bandra, Mumbai.

Brand Endorsement by Celebrity: Big Bazaar is always associated with celebrities foradvertising and marketing of its brand name. The current campaign is starred by BrandAmbassador and Indian Cricket ODI Captain Mahendra Singh Dhoni. Earlier HimeshReshammiya and Sanath Jaisuriya were associated with Big Bazaar.

Place

Location is something which is permanent. So cautious decisions are taken whileselecting place.

Big Bazaar refrains from high-end locations for its business. Some customers travel from far places to the store. So place factor has less influence

on them.

Semi-urban customers still prefer kirana shops, so location of retail chain should benear to them because they will not travel too far.

People

They are one of the key assets for any organization. The salient features of staff of

Big Bazaar are: -

The staff employed by Big-Bazaar is well-trained and well-suited for modern retail. Well-dressed staff improves the overall appearance of store. Employees are motivated to think out-of-the-box. Retail sector is in growth stage, so

staff is empowered to take innovative steps.

Employs close to 10,000 people and recruits nearly 500 people every month. Use of technology like scenario planning for decision making. Multiple counters for payment, staff at store to keep baggage and security guards at

every gate, makes for a customer-friendly atmosphere.

ProcessThe goods' dispatch and purchasing area has certain salient features which include:

Multiple counters with trolleys to carry the items purchased. Proper display / posters of the place like (DAL, SOAP, etc.). Home delivery counters also started at many places.


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Physical Evidence

It deals with the final deliverable or the display of written facts. This includes thecurrent system and available facilities.

Service Gaps

Gap 1: Expected Service V/S Management Perception of ConsumerExpectation Big Bazaar is claiming that it is providing high value to customer money. On

daily utility items rates are low but for utility items like utensils etc. Big Bazaar ispricing higher than lower market. This comment is by one of the customer of bigbazaar and when i confirmed it, it comes true.

Customer is expecting a peaceful place with good ambience but few big bazaarsoutlets are very much congesteddue to the overflowing racks and lack space.

Sometimes vegetable is cheap but on the compromise of quality which issomething that creates the dissatisfied customer. If you go early in the morningyou can get choose or select best vegetable from there but as time progressquality degrades because as the passing time every customer choose best out oflot.

Some essential ingredients like kadhipatta, hara dhaniya is out of stock and notreplenished quickly.

Gap 2: Management perception of Consumer expectation ServiceStandard Big Bazaars Management perceives that Indian consumer want an economic

deal every time. Management also perceives that Indian customer is very muchfond of bargain and discount. But generally the products our project mix onwhich there is a discount easily become out of stock.

Management perceive that people are very much ready to buy huge quantity ifsome discount is provided but Some customers feel cash discount is fine but bulk

offer deals are of no use because you end up getting more than you want which

is a waste.

Gap 3: Service Delivery v/s Service Standards

As Big Bazaar is creating a service which is focused on convenience ofpurchasing process, bulk purchases and wide range of products under a singleroof. But I have noticed that no of trolleys are not sufficient for busy hours and itcreates inconvenience.


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Sometimes racks are so close and price tags are not placed properly which leavesconfused customer. Sign boards are not prominent. Lack of direction creates

confusion.

As customers are generally coming for monthly purchasing they generally comewith their cars so that they can easily load their purchased material, but at fewoutlets at busy hours parking becomes a problem.

RECOMMENDATIONSIn terms of 4 Ps to feeling those service gaps:

PLACE

The new store should have a central location in the market because customers will not

prefer one store over the other. They would simply go the most accessible one. Proximity

of location to places like coaching institutes, offices etc would be an added advantage. The

store should be spread over an area of at least 900 square feet. The store should be such

where customers can roam around and feel the products for themselves. Survey revealed

that many customers consider shopping as time pass, hence they take their time in selecting

items. So there should be enough walking space in between product racks. Over the

counter purchase is not desired anymore. The place should be well lit and air conditioned.

All the products in all sizes should be on display.

PRODUCTProduct variety is a big factor in determining customer response. The owner should not

limit itself to brands of few companies only. The range of items available should suit the

local requirements. There should be a balance between branded goods and local products.

The shelf space should be efficiently utilized to give maximum exposure of the product to

the public. The store should include beauty products in its display because women are

chief buyers in departmental stores. The products should be clearly categorized as high-

end or low-end. The customers should be assured of quality of non-branded items like

loose packs of wheat flour, pulses etc. Diversification of product type is recommended. It

should stock perishable food items, instant eatables, FMCG goods like toiletries.

PRICEPrice of goods depends on the success of the store over a period of time. Margins are very

tight. It is not possible for the owner to match the prices and discount schemes of retail


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chains. The store should start off with inaugural discounts to get attention. These

discounts should be slowly discarded. The owner should recognize high potential

customers and give some relief off the MRP mentioned to gain loyalty. This will help the

store in long term. One way to offer better prices is by having local products like biscuits

etc which are of assured quality. This satisfies the demands of low-end customers andlocal products also give better margins. The store needs to make sure that no other kirana

shop is offering considerable discount compared to its own prices.

PROMOTIONA departmental store which operates in a particular locality does not need full fledged

promotional campaigns. But for a start up, the store should distribute leaflets in local

newspapers to create awareness among residents. The leaflet should include special

features of stores with maximum emphasis on inaugural discounts on items. This shouldhelp it create a favorable word of mouth scenario. Another way is to talk to general

public and ask for their suggestions on improving the layout. In this way, people will feel

happy about going to the shop and shopping. The store should use in-store advertising to

make best use of large floor space by putting up discount boards inside the store above a

particular product as well as just outside the shop.

In this way, we can make use of the marketing mix for a new venture which belongs to the

unorganized retail sector. Application of the best marketing practices of organized retail

stores combined with benefits of accessibility of local kirana shops helps to ensure success.


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Other Powerful holdings of Future Group


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References

1. David A. Aaker & others , Marketing Research-(9th Edition) ,

2. Zeithaml Valarie A, Service Marketing, 3rd edition, Tata McGraw-hill

3.http://bigbazaar.com/
http://bigbazaar.com/http://bigbazaar.com/http://bigbazaar.com/http://bigbazaar.com/

Documents

BIG BAZZAR Mradul Raj Pachouri_Service Marketing _Sec B