Swot & Marketing Mix

7/30/2019 Swot & Marketing Mix

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Big Bazaar: Serving The Classes

Presented by:

Aakanksha Mathur

Mounika Palreddy

Neha Saini

Nikhil Deshmukh

Ravindra Pal MarwalTeena Bansal

Vinay Pratap Singh

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Agenda

Introduction

STP

Marketing Mix Porters five force model

SWOT

Questions for discussion Recommendations

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Introduction

About Big Bazaar Hyper mart Chain

Founded 2001

Owner Kishore Biyani

Parent Group Future Group

Head quarter Mumbai

Outlet 161 in 90 cities

Tag line Is se Sasta Aur Accha Kahin Nahi

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STP

Divided Indian consumers in three Categories:

India 1:

Upper Middle & Lower Middle (14 % Indian population)

India 2:

Serving Class : include people like drivers, office peons

55% of India population

India 3:Struggling Class ( remaining 31 % population)

Segmentation

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Targeting

Big Bazaar targeted population across India one

and India two

Aadhaar Wholesale is aimed to target population

across India Three Big Bazaar specifically targets working women and

home makers who are the primary decision makers.

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Positioning

Is se sasta aur accha kahin nahi

High service

Low service

Low price High price

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Marketing Mix

Retail is Part ofService so it

consist of 7 Ps in

marketing mix.

Physical

Evidence

People

Place Promotion

Price

Product

Process

7 P

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Product Mix Apparels

Food items

Farm Products Home & Personal Care

Electronics Baazar

Fashion & Jewellary

Furniture Bazzar

Private Labels

DJ & C

Tasty Treat

Clean mate, Care mate

Sensei, Koryo and other 44 brands

Big Baazar offers awide range of

products.

Product ranges are

as follows:

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Price Mix Value Pricing

Offers lowest available price

Promotional Pricing

Special festive offers

Psychological Discounting

Differentiated Pricing

Difference b/w peak & non peak hrs Sabse Saste 5 Din

Hafte ka sabse sasta Din

Bundling

Combo pack

Buy 3 get 1 free

The pricing objectiveat Big Bazaar is to

get Maximum

Market Share.

Pricing at Big Bazaar

is based on the

following

techniques:

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Place Big Bazaar stores are operational

across three formats:

Hypermarkets (40000 45000 sq ft)

Express Format(15000 - 20000 sq ft)

Super Centers ( over 1 lakh Sq ft)

Number of outlets 161 across 90

cities.

Located at tier- I and tier- II cities.

launched a online store

www.futurebazaar.com

store located at high traffic areas. Designed to look overcrowded.

First Big Bazaar wasopened in VIP Road,

Kolkata in

October2001.

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http://www.futurebazaar.com/http://www.futurebazaar.com/


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Promotion Mix Saal ke sabse saste 5 din

Hafte ka sabse sasta din

Wednesday bazaar

The Great Exchange Offer

Future card(3% discount)

Advertisement in news paper, TV.

Internet partnership with Big FM 92.7

M.S. Dhoni for Brand

endorsement.

The variouspromotion schemes

used at Big Bazaar

include:

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People Well trained staff at stores to help

people

Using dress code for staffimproves the overall appearance

of store.

Employees close to 36000 people

and recruit nearly 500 peopleevery month.

staff at store to keep baggage and

security guards at every gate

Staff present at thepremises of Big

Bazaar also help to

improve efficiency.

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Process Multiple counters with available

trolleys to carry item purchased.

There are multiple counters for

billing.

At the billing counter keep many

daily usage item for random

picking.

Proper display of the posters with

the price at place.

Staff available for guidance

Home delivery counters are nowopened at many place.

Big Bazaar places alot of importance on

the process right

from the purchase to

the delivery ofgoods.

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Physical Evidence Products in Big Bazaar are

properly stacked in appropriate

racks.

Provide touch and feel concept to

consumers.

Written displays above the

products for information

Departments where similar kind

of products are displayed.

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Porters Five Force Analysis

The Five Forces are :-

Threat of New Entrants.

Threat Of Substitutes.

Bargaining Power of Buyers.

Bargaining Power of Suppliers.Competitive Rivalry.

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Threat of New Entrants : Moderate

High Fixed Costs.

Cost of Real Estate.

Efficient Supply Chain.Sustainable Business Model.

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Threat Of Substitutes : High

Unorganized Retail Sector.

Other Hypermarkets and Supermarkets.

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Bargaining Power of Buyers : Moderate

Customers are Price Sensitive.

Availability of Choices.

Discounts or Promotional Offers are oftenused to pull the customer.

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Bargaining Power of Suppliers : Low

Suppliers have Low Margins.

Organized retailers are big customers.

Have to maintain long term relations.

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Competitive Rivalry : High

High competition for offering lowest prices.

To gain price leadership so that to bargain

with suppliers.

To gain customers loyalty.

Competition from unorganized players.

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Outcomes of Analysis

The business model should be concentrated

more on volumes rather on margins.

Retail industry is dominated by unorganized

sector.

Its a price sensitive market and retaining a

customer is very difficult due to high

competition.

Necessary to negotiate with the suppliers to

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Contd.

Irrespective of low entry barriers It is difficult

for a new player to enter in organized retail.

The focus should be on gaining price

leadership and customers loyalty in the long

run.

Attractive promotional schemes should be

provided to attract new customers.

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Internal Analysis

Strengths

High brand Equity

Huge display area

Product diversity

Promotional efforts

Customer retention

Low price

Weaknesses

Long lines at billing

counters at special

occasions

General perception:

Low price = Low

quality

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External Analysis

Opportunities

Untapped Tier II/Tier III

cities

Increasing Disposable

Income

A lot of scope in Indian

organized retail as itstands at approximately

4%

Threats

FDI in India

Unorganized Sector

High real estate price

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Questions for discussion

How did Big Bazaar offer the best possible deals,

and discounted prices to its consumers?

Biyani opined that Biz Bazaar was focused on givingthe best possible deals to its customers, rather than

focusing on the ambience of the store. Is ambience

irrelevant for discount stores?

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Value Proposition

Bulk Purchase (Transfer of margins to the customers)

Maintain long term relation with supplier

SAP Implementation

Efficient Supply Chain

Ware houses to outlets ( Private Labels)

Local Distributers to outlets ( Branded)

Gaining margins from private labels.

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Ambience Matters.?

Indian Psyche Good Ambience ---> High Prices

Initially started as:

Warehouse pattern

To give the feel of Melas & Mandis. Designed to look crowded.

Present Scenario

Established brand name in organized retail.

Changed Indian Psyche : Good Ambience good

qualityat low price.

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Recommendations

Set additional counters at special occasions.

Should concentrateTier II/ Tier III cities

Should purchase land in tier II/ tier III cities to cope

with increasing real estate price.

Should create a promotional campaign for private

labels.

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Documents

Swot & Marketing Mix