Commerce Project On:-

Is se sasta aur accha kahin nahi !

By : ALISHA JAIN

Type : Hypermarket Founded : 2001 Headquarters : Jogeshwari, Mumbai Industry : Retail Products : Department, Grocery store Promoter : Kishore Biyani Parent : Pantaloon Retail India Ltd. Punch line : “Is se sasta aur accha kahin nahi !” Currently 214 outlets

• Chain of department stores in India with 214outlets. •Owned by Pantaloon Retail India Ltd, Future Group.• Works on the same economy model as Wal-Mart • Successful in many Indian cities and small towns. •Products available at prices lower than the MRP•Setting a new level of standard in price, convenience and quality.•Opened the doors into the world of fashion and general merchandise including home furnishings, utensils, crockery, cutlery, sports

Man Behind Big Bazaar

Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and Group Chief Executive Officer of Future Group.

He was born in August 1961. Kishore founded Pantaloons in 1997Considers ‘Indianness’ as the core value driving the group

LESSONS LEARNT : Values, Innovation, Flexibility and Ambition

leads to success.

“To Deliver Everything, Everywhere, Every time, to Every Indian Customer in the most profitable manner.” One of the core values at Future Group is, ‘Indianess’ and its corporate credo is – “Rewrite rules, Retain values.”

Vision

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. We will be the trendsetters in evolving delivery formats, creating retail realty, making consumption affordable for all customer segments

Mission

Indianness : confidence in ourselves.

Leadership: to be a leader, both in thought and business.

Respect & Humility: to respect every individual and be humble in our conduct.

Introspection: leading to purposeful thinking.

Openness: to be open and receptive to new ideas, knowledge and information.

Valuing and Nurturing Relationships: to build long term relationships.

Simplicity & Positivity: Simplicity and Positivity in our thought, business and work.

Adaptability: to be flexible and adaptable, to meet new challenges.

Flow: to respect and understand the universal laws of nature.

Core Values

7 P’s Of

7P Analysis of

7P Marketing Mix is more useful for services industries and knowledge intensive industries. Successful marketing depends on number of key issues. The seven keys issues are explained as: -

• Offers a wide range of products which range from apparels, food, farm products, furniture, child care, toys, etc.• Products of all the major brands are available at Big Bazaar. Also, there are many in house brand promoted by Big Bazaar.

Product

•Shampoo•Detergent•Soap•Liquid Wash•Creams•Deodrant•Home cleaners•Utensils•Crokery•Bundles

•Soft drink•Packaged juice•Milk Items•Frozen foods•Ice creams

Product Mix

Living Room Bed Room Kitchen Dinning Rooms Kids Room Been Bags Paintings Decorative Items

Product Mix Cont…

The tag-line is “Is se sasta aur accha aur kahin nahi”. They work on the model of economics of scale. There pricing objective is to get “Maximum Market Share”. The various techniques used at Big Bazaar are: -

Value Pricing (EDLP - Every Day Low Pricing): Big Bazaar promises consumers the lowest available price without coupon clipping, waiting for discount promotions, or comparison shopping.

Promotional Pricing: Big Bazaar offers financing at low interest rate. The concept of psychological discounting (Rs. 99, Rs. 49, etc.) is used as promotional tool. Big Bazaar also caters on Special Event Pricing (Close to Diwali and Durga Pooja).

Differentiated Pricing: Time pricing, i.e., difference in rate based on peak and non-peak hours or days of shopping is also a pricing technique used in Indian retail, which is aggressively used by Big Bazaar.

· Bundling: Selling combo-packs and offering discount to customers. The combo-packs add value to customer.

Price

Psychological Pricing

Value & Time Pricing

Big Bazaar stores are located in 90 cities with 214 outlets. Big Bazaar has presence in almost all the major Indian cities. They are aggressive on their expansion plans.

Place

INDIAN •Number of outlets – 214.

•Located in main city – tier I& tier city II.

•Area 10,000 sq ft – 1,20,000 sq ft.

•High street area of city.

•Approachable destinations.

Promotion

•Big Bazaar started many new and innovative cross-sell and up-sell strategies in Indian retail market. The various promotion techniques used at Big Bazaar include “saal ke sabse saste teen din”, Future Card (the card offers 3% discount), Shakti Card, Wednesday bazaar.etc,.

•Brand Endorsement by M. S. Dhoni, Exchange Offer - ‘Junk Swap Offer’, Point-of-Purchase Promotions.

•Advertising has played a crucial role in building of the brand. Big Bazaar advertisements are seen in print media, TV, Radio (FM) and road-side bill-boards.

PR

OM

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AL O

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They are one of the key assets for any organization. The salient features of staff of Big Bazaar are: -· Well-trained staff, the staff employed by Big-Bazaar are 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.

People

The 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.

Process

Physical Evidence

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

SALES

Life cycle of Big Bazaar

Functional Departments of

Human Resource Finance Marketing Logistics Sales Customers Service Administration

Selects & recruits employees Trains & develops Employees are retainedRegular and periodic performance appraisal

Human Resource

Prepares the budget for expenditure at all levels. Decides and gives the sales targets for all the departments periodically. Maintains the books of accounts Collects & deposits the cash received daily through sales in the Company’s bank account

Finance Department

Designs creative and attractive advertisements through which the company’s products can be promoted to the customers. Decides the different marketing channels to be used to increase the sales. Creates a very pleasant and feel good environment in the Store to attract more customers. Also responsible for the arrangement of products in each department to help easy availability of products to the customers.

Marketing Department

Is responsible for procuring the stock of all the products of the different departments. Receives the goods from the warehouse located at Hosakate and then verifies whether it adheres to the particulars given in the Goods received statement. Despatches the goods to the respective department after recording it in the Goods inward register If there is a damage in the goods or if the goods do not match the details given in the Goods Received Statement, it enters in the Stock Outward Register and sends it back to the warehouse along with a Goods Returned Note.

Logistic Department

An indent will be kept by the front end team of a particular department to category team of central office.

The category team will raise a STOCK TRANSFER OUT(STO) and send it to the DELIVERY CENTRE(DC) or WAREHOUSE.

The DC will generate stock picks and starts picking.

DC will generate STOCK TRANSFER NOTE(STN) and Gate pass.

DC will transfer the stock to stores.

Here starts the part of logistics.

Supply Chain Management

Logistics is a part of supply chain management which deals with the In warding and out warding of goods as well as non saleable items.

RECEPTION OF GOODS FROM DC:

As soon as we receive the goods we check for seal condition and number as mentioned in the gate pass, delivery note. Then the security in the logistics department will randomly check the number of cartons. Then we will inform the particular department regarding the reception of goods.we will check the items in front of that particular department’s team member in stock transfer number wise. With the help of department member we will find out any discrepancy(shortage/damage/expiry) and inform it to supply site. There will be a inward register in which we enter all the details of in warding ,the entry will also be done in the system. Then the department member will move the stocks to the floor.

LOGISTICS

If the goods are from vendor we will check for

Here the vendor himself has to go to the respective department and has to take permission for the submission of goods in logistics. After that we will prepare (GRN) Goods Receive Note of three copies. i.e. for logistics, for respective department and for D.C or vendor.

Finally it is the duty of the department to Collect their respective goods from logistics.

Reception of goods from the Vendor

TAX INVOICE and PURCHASE ORDER.

Sales Department

Responsible for the collection of sales amount i.e., cash sales.

Wednesday Bazaar is a very important and popular event in Big Bazaar. Every Wednesday fabulous offers and great discounts are given on most of the products.

Weekends attract most of the customers as such good offers and discounts are given .

Big Bazaar celebrated Independence Day by having ‘Maha Bacchat Sale’ from August 12-16 and did a business of 1.5 Crores

Focuses on customer service like if a customer finds difficulty in finding any product, if there are any customer complaints etc.

Exchange counter for dissatisfied customers.

Responsible for announcing all the offers

Also does gift wrapping

Collects customers’ opinion / feedback

Customer Service Department

The Store administration comes under the Store Manager. Its functions are store maintenance, housekeeping, security etc.

The store maintenance is concerned with the proper running of the store in co- ordination with all the departments.

The Housekeeping is concerned with keeping all the departments of the Store clean and neat all the time .

The Security section is concerned with the security of the entire store. Security department keeps a vigilant check on all the people entering and departing at the various entry and exit points in the store.

They also maintain all the registers like employees’ attendance register, stock register, visitors’ register etc.

They ensure orderliness in the store and prevent shrinkage or pilferage of goods to minimise the loss arising out of it.

Administration Department

SWOT Analysis Of Big Bazaar

StrengthsBetter understanding of customers helping the company to serve them better.

Vast range of products under one roof helping in attracting customer and their family to shop together and enjoy the experience.

Benefit of early entry into the retail industry.

Diversified business operating all over India in various retail formats.

Ability to get products from customers at discounted price due to the scale of business

WeaknessesHigh cost of operation due to large fixed costs.

Very thin margin.

High attrition rate of employee.

Lot of potential in the rural market.

Can enter into production of various products due to its in depth understanding of customers’ tastes and preferences.

Can expand the business in smaller cities as there is a lot of opportunity .

Opportunities

High business risk involved.

Lot of competitors coming up to tap the market potential. Margin of business reducing all the time.

Threats