big bazaar case analysis

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BIG BAZAARCase Analysis : 

BIG BAZAARCase Analysis

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Introduction

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Mission And Vision VISION Future Group shall deliver Everything, Everywhere, Every time for Every Indian Consumer in the most profitable manner. MISSION We share the vision and belief that our customers and stakeholders shall be served only by creating and executing future scenarios in the consumption space leading to economic development.

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Positioning And Establishment Customers Segmentation Big Bazaar targets higher and upper middle class customers. The large and growing young working population is a preferred customer segment. Big Bazaar specifically targets working women and home makers who are the primary decision makers.

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Organization value and customer value

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Positioning

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Swot Analysis

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Marketing Mix

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Product Mix

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Product Mix continued….

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2. Price mix Value pricing Promotional pricing Low interest financing Psychological discounting Special event pricing Differentiated Pricing Time pricing Bundling

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Value Pricing Big bazaar promises its consumers the lowest available price without coupon clipping, waiting for discount promotions, or comparison shopping

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Promotional Pricing Big bazaar offers financing at low interest rate. The idea of using psychological discounting (at rs. 99 , rs. 49) is used as promotional tool. They also caters on special event pricing. ( close to diwali, gudi padwa etc.)

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Differentiated Pricing Time pricing i.e. difference in rates based on peak and non peak hours or days of shopping is also a one kind of pricing strategy.

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3. Place BIG BAZAR INDIA Number of out let- more than 100. Located at main city-tier I & tier city-II; Area-10,000sq ft- 120000 sqft; High street area of city; & Approachable destination.

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4. Promotion

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5. People well trained staff; well suited for retail industry. employees are motivated to think out of the box, to take innovative steps. employees close to 10000 people and recruits nearly 500 people every month. Use of technology like scenario planning for decision making.

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6. Process The good dispatch and purchasing area has certain silent feature: multiple counters with available trolleys to carry item purchased. Proper display/ posters of the place. Home delivery counters are now opened at many place.

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7. Physical evidence It deals with the final deliverable or the display of written facts. This includes current and available facilities.

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Brand Extension Actually Made And Future Possibilities

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Consumer Insights And Perceptions Big bazaar is based on 3-C theory of Kishore Biyani. The 3-C determines change, confidence and consumption, and according to this theory, “change and confidence is leading to rise in consumption”, They divided Indian customers into 3 categories: India one: Consuming class, constitutes only 14% of Indian population. Upper middle class and most of the customers have substantial disposable income. Initial focus of big bazaar

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India two: Serving class which includes people like drivers, house-hold helps, office peons, etc. For every India One there are at least India Two and have 55% of Indian population. India three: Struggling class, remaining population of India. Cannot afford to inspire for better living. Need cannot be addressed by current business model. The potential customers of big bazaar are India One and India Two.

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The customer insights were developed by close observation of the target set. The insights that came out were: The clean and shiny environment of modern retail stores creates the perception that such store are too expensive and exclusive, and are not meant for India Two. India two finds moves and find a lot of comfort in crowds, they are not individualistic. They prefer to be in queues. Indian-ness is not about being swadeshi, it’s about believing in Indian ways of doing things. Advertisements about schemes and offers through local news paper, radio in local language inspires more customers more than the traditional ways. Hypermarkets in India should be situated in the city unlike western countries where they are situated away from city.

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Advertising Advertising is the essential component of brand building . the advertisement is done through various ways, techniques used are: Tag-line Print-ads TV-ads Road side hoarding Radio ads Fashion shows Brand endorsement by celebrity.

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Life Cycle Of Big Bazaar

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Factors that shaped the brand during its life cycle are: Influence of Sarvana Stores located in Theyagraya Nagar in Chennai Observing customers regularly. Imbibed entrepreneurial spirit in the organization. Building on core values.

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Strategic Decision Taken To Build Big Bazaar Brand Real-estate game: According to kishore biyani, real estate cost should be lesser than 5% of total sales of store in order to provide maximum benefits to customer The strategic decisions to secure spaces before other retailers join in have resulted in cost saving. Nurturing relationship: Kishore Biyani follows the strategy to develop trust and nurture relationship with suppliers. Whoever works with Future Group, either leaves in initial deals or continues forever.

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Use of technology, scenario-planning & story telling: scenario planning and story telling techniques used for store design layout and store-location selection. Design management Design-led thinking helped Big Bazaar to achieve ‘customer-first’ objective and ultimately led to financial performance. Back-end operations, supply chain: India may not have a modern supply chain but it definitely has a cost-effective one i.e. Pantaloon's supply chain.

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THANK YOU