Re: Big Bazaar - August 31st, 2008 Retailing in India Retailing in India The Indian retail industry accounts

s The Indian retail industry accounts for 10% of GDP and 8% of for 10% of GDP and 8% of employment. India is being touted as the next big India is being touted as the next big retail destination with an average retail destination with an average three year compounded annual three year compounded annual growth rate of 46.64%. The Indian economy is poised to take The Indian economy is poised to take the third position in the world in the third position in the world in terms of Purchasing Power Parity by terms of Purchasing Power Parity by the year 2010. The Indian Retail Market is a The Indian Retail Market is a Rs.1, 200,000 million market as per the Images India Retail Report 2007. Organized Retail market is zooming Organized Retail market is zooming ahead with an annual growth rate of ahead with an annual growth rate of 30% The country will have over 300 malls translating to over 100 million sq.ft. in available mall space by the end of in available mall space by the end of 2007.

Recent trends

Retailing in India is witnessing a huge witnessing a huge revamping exercise as can be seen in the graph be seen in the graph

India is rated the fifth most attractive emerging retail market: a potential market: goldmine. Estimated to be US$ 200 billion, of which organized retailing (i.e. modern trade) makes up 3 percent or US$ 6.4 billion As per a report by KPMG the annual growth of department stores is estimated at

24%

Mission & Vision

Future Group shall deliver everything, everywhere, everytime for every Indian Consumer the most profitable manner 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.

Introduction to Big Bazaar

A chain of shopping malls in India currently with 31 outlet owned by Kishore Biyanis Pantaloon Group. Pantaloon Group. Big bazaar is not just another hypermarket. Provides the best products at the best price.

 Reflect the look and feel of Indian bazaars at their modern outlets. All over India, Big Bazaar attracts a few thousand customers on any regular day.

Target Audience 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. It is part of Big Bazaars (owned by Biyanis Future Group) new Guerrilla Marketing Strategy. Guerrilla force is divided into small groups that selectively attack the target at its weak points. Wah lah, enter the future and in the world of cut throat competition, corporate use extension of the same strategy in marketinghmmmm never imagined this while we were in our shorts!! Corporate like coke, pepsi, etc have been using the same for quite some time now and the latest entrant is our very own Future Group- Big Bazaar, Pantaloons, Future Bazaar, eZone are all part of this group and they are taking on the biggies like Shoppers Stop, Lifestyle, and Tatas Westside. With retail market in India especially in metros where standard of living and disposable income is at an all time high, competitors will vie for the market share and can stoop to any levels

while marketing their products. Guerilla marketing is just one of the strategies and surely one can learn a lot from the ongoing battle, especially people interested in marketing/marketing techniques. Different elements of retail mix Merchandise assortment Merchandise assortment Location Price Visual merchandising Visual merchandising

Retail-mix contd. Store atmosphere Store atmosphere Customer service Customer service Advertising Promotion Personal selling Personal selling

Internal Attributes

 Envelope lope Internal layout Methods of display Methods of display Visual merchandising

Distribution

Distribution is one of the 4 aspects of marketing.marketing. Traditionally, distribution has been seen as dealing with how to get the product or service to the customer. the customer Distribution is done by distributor who is is the middleman between the manufacturer and retailer the manufacturer and retailer

Logistics Logistics is the art and science of managing and controlling the flow of goods , energy, information and other resources like products, services and people from the source of production to the marketplace. marketplace. Its Important to have professional logistical support logistical The operating responsibility of logistics is the geographical repositioning of raw

materials, work in process and finished inventories where required at the lowest cost possible.possible.

Supply Chain Supply chain, is a coordinated system of organizations, people, activities, information and resources involved in moving a product or service in physical or virtual manner from supplier to customer. Supply chain activities transform raw materials and components into a finished product that is delivered to the end customer.