BHAT – BHATENI The Leading Supermarket

Presented By:Kalpana RaiSagun ThapaRupak ShresthaPrakash GhimireKiran Gurung

About Bhat-Bhateni Hyper MartChain of development store in Nepal

Outlet 5 outlet Located in Kathmandu Valley & 1 in Pokhara

Owner Mr. Min Bahadur Gurung

Head Office Bhat-Bhateni Head Office, Bhat-Bhateni, Kathmandu

Web site http://bbsm.com.np

Industry Retail

What is BHAT - BHATENI

•The idea behind Bhat Bhateni was pioneered by a visionary entrepreneur Mr. Min Bhadaur Gurung.

•Established in 1986 with one room .

•Total Employee – 2,200.

•Total Sales/day – 2 Crore with more than 40,000 customer daily.

•Highest tax payer in the retail sector for the last five consecutive years.

•Offers full range of 120,000 products from 700 local and international suppliers

Some Interesting Facts

Strength•The one and only one leading supermarket of the country.

•Huge infrastructure with ample of parking space and secure locker system.

•Loyal Customers.

•Full range of 120,000 products with reasonable price.

•Prime Location of Store.

•Online order receiving system with home delivery facility and club card.

•Highly experienced manpower in retail sector . Contd……

SWOT Analysis

SWOT Analysis

Weakness•Limited number of stores.

•No central ware house and wholesale unit.

•It has been accused of providing low grade/Insufficient quality products.

• Queue Management is not so organized. Longcheck out lines especially at Saturday and holidays .

•Fewer choices of goods because it stock only those goods that likely to sell.

Contd……

SWOT Analysis

Opportunities

•Growing level of Incomes

•No big competitors till date

•Increasing trends of shopping in Mall and Department stores.

Contd……

SWOT Analysis

Threats•Intense Competition

•No proper rules and regulation form the government side regarding retail industry.

•Opportunity cost is high with high rate of bank loan.

•Political Instability that will hamper the expansion growth of the store

•Inflation rate is high

•Operating cost is high to operate the business as the store has to depend on diesel energy instead of hydro energy.

SWOT Analysis

09/22/12 8

Marketing Mix

09/22/12 9

1.Product Mix

09/22/12 10

2.Pricing

• Value pricing • Promotional pricing

Psychological discounting Special event pricing

• Differentiated Pricing• Bundling

09/22/12

3.Place

Number of out let- 6

Located at main city

Approachable destination.

09/22/12 12

4.Promotion

• BBSM has adopted price, product as core component for positioning strategies.

• for the full range of 120000 products from 750 local and

international suppliers

• 1st retail store to operate online shopping as bhatbhatenionline.com with the statement of Save Time Save Money

• As a 1st retail store with the history of 28 years, it has created an image in people’s mind as most wider range of quality goods on best price.

Positioning Strategies

Organization value and customer value

09/22/12 14

09/22/12 15

Frontal marketing strategy

Future strategy of

09/22/12 16

The new warehouse facility and wholesale unit in Baluwater is due to open by the end of 2012 and will enable Bhat-Bhateni to delivery further cost savings to loyal customers.

Mr. Min B. Gurung has truly visionary long-term goals and aim to establish farmer co-operatives in Nepal which is estimated to give employment to 50,000 people in total once the store expansion programme is complete, and is likely to position Bhat-Bhateni as the largest corporate tax payer in the country.

09/22/12 17

Porter’s five force model

09/22/12 18

Analysis 5 Forces Analysis

Rivalry among the competitor •Namaste , CG Mart, Big Mart, Saleways etc

Threat of entrants • High threat of entrance•FDI policy is favorable.

Bargaining power of supplier •The bargaining power of suppliers varies depending upon the target segment.•The un organized sector has a dominant position.• There are few players who have a slight edge over others on account of being established players and enjoying brand distinction.

Bargaining power of buyers • Consumers are price sensitive..•Availability of more choice.

Threat of substitutes •Unorganized retail

Life Cycle of

The sustainable competitive advantage requires value creating products, processes and services that cannot be matched up by competitors and the plan to maintain it for future.

If it is the case, can Bhatbhateni boast about it?

SCA

YES!!!

YES !!!!• Over the years Bhatbhateni has created a solid SCA against its

competitors. It has thousands of loyal and satisfied customers.

Challenges in future: With the slow increase in the number of new players in retail

sector, Bhatbhateni will find it difficult in future. Also the advancement in the technology it has to keep upgrading the service to maintain its SCA.

• The meteoric growth of Bhatbhateni has showed the strength of the company. The retail industry in Nepal is growing and hence has opportunities.

• To maintain its growth as a corporate Bhatbhateni group has to go for business diversification. And they are going for agro-business and farmers co-operatives.

• The legal prohibition has barred the foreign players coming in Nepal and cannot see any plans by Bhatbhateni in foreign countries in near future.

Growth, Diversification & Global Strategy