Future Retail The Indian Way

Future Group has integrated the traditional bazaar

into modern day retail, forever transforming Indian retail. It consists of : Value Helping India Save Lifestyle Style for Every Occasion Digital Connecting the Youth of India

Value

Big Bazaar is Indian personification of retail. Its like an Indian bazaar or mandi or mela. Big Bazaar, which has become a household name by now, has emerged as one of the prominent organised retailing player in Indian arena.

It is like Indian markets with clusters offering a wide range of merchandise including fashion and apparels, food products, general merchandise, furniture, electronics, books, fast food and leisure and entertainment sections.

Pricing

The pricing objective - to get Maximum Market Share. Pricing at Big Bazaar is based on the following techniques: 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 also used to attract customers. Big Bazaar also caters on Special Event Pricing (Close to Diwali, Gudi Padva, and Durga Pooja). Differentiated Pricing: Differentiated 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. e.g. Wednesday Bazaar

Bundling: It refers to selling combo-packs and offering

discount to customers. The combo-packs add value to customer and lead to increased sales. Big Bazaar lays a lot of importance on bundling. e.g. 3 Good Day family packs at Rs 60(Price of 1 pack = Rs 22) 5kg oil + 5kg rice + 5kg sugar for Rs 599

Promotion:

The various promotion schemes used at Big Bazaar include: Saal ke sabse saste 3 din Hafte ka sabse sasta din Wednesday bazaar Exchange Offers Junk swap offer Future card(3% discount) Shakti card Advertisement (print ad, TV ad, radio)

Bargaining power of buyers

Rivalry among competitors

Bargaining power of of supplier

Industry competitiveness

Threats of substitutes

Threat of new entrant

5 Forces
Rivalry among competitor

Analysis
Reliance Retail,Aditya Birla Group,Vishals retails , Bharati and Walmart etc FDI policy not favorable for international players High domestic competition and International competition

Threats of entrants

Bargaining Power of Supplier

The unorganized sector has a dominant position. First movers advantage established players

Bargaining Power of Buyers

Availability of more choice Consumers are price sensitive

Some Innovative Ideas

Sabse Sasta Din introduced in January 2005

where Indian Republic Day holiday was utilized to make sure that hordes of consumers descended on all Big Bazaars across the country to buy all kinds of household items cheap

Khoj lab - The Future Group has also signed an MoU with
National Innovation Foundation, Department of Science and technology, Government of India, giving shape to an innovation lab

 India ka Idea - peoples innovative idea

ex. Mitticool, a clay refrigerator that works without electricity and mitti cool non-stick pan - a non-stick tava made out of clay layering

MITTI COOL

Big Bazaar launches 'Star Parivaar' Designer Ethnic Wear Collection - An innovative
catalog at Big Bazaar will showcase the line, and a complementary fashion book will be launched on the occasion.

empowerment through Big Bazaars platform Yatra. This has provided women from self-help groups across Maharashtra with an opportunity to market their food and non-food products.

YATRA - the Group has contributed significantly to womens

Six-day Maha-Bachat attracting customers

heavy discount and low prices.

by offering

Big Bazaar launched and sold NANO cars

It is dubbed the most brilliant move in terms of push market strategy for sales to pick up for Tata Nano. This falls into a unique distribution model innovation for Tata Motors.

Big Bazaar's 'The Great Indian Kitchen Awards Juna do aur naya lo - where customers were

encouraged to bring in their old clothes, utensils, furniture and electronics, sell them at a predetermined price and receive coupons that enabled them to receive a discount on goods in store.

Future Card to be launched by Future Group

Future Group is planning to launch a credit card aptly named as the Future Card. This credit card will offer reward points to customers who shop at both the Future Group's retail outlets (Pantaloons, Central, Big Bazaar and Food Bazaar) or at any other store .

Future Group already has a few co-branded credit card with ICICI Bank. The ICICI Bank Big Bazaar Shakti Credit Card is a especially designed for women. The ICICI Bank Big Bazaar Silver Credit Card and Gold Credit Card are another such co-branded credit card.

KBs FairPrice

KBs FairPrice are neighbourhood stores, spread across an average area of 1,000 to 1,500 sq. ft. These are simple but modern, self service ration shops. These stores retail only 300 essential products, at simply the lowest prices in town. A cluster approach is used to open these stores, as it helps build awareness in the locality. Costs for logistics, transportation of products to the stores etc., also get spread out in a similar fashion. KBs FairPrice are no frills stores. They are not airconditioned, products are displayed in cartons and not even the ubiquitous shopping bag is provided free of cost to shoppers.

This format with a tagline Bachat Hi Bachat (Savings and Savings), is structured in a fashion that allows it pass on maximum savings to the customers. KBs FairPrice, with its innovative pricing and locations, is a completely new face of modern retail touching the lives of scores of people.

Fair price give competition to kirana store- targeting the mid segment and lower segment, they are the best bargain hubs.

Aadhar Retailing Limited

It operates as a rural retail chain selling farm outputs like wheat and paddy. The company also provides farmers with solutions to problems regarding their agricultural output, which includes what kind of crop can they plant and when, along with technocommercial suggestions to help them give a better output. It also offers insurance products to cover their risk and supermarkets for their daily needs.

Aadhar Retailing Limited formerly operated as a subsidiary of Godrej Industries Ltd. As of March 31, 2008, Aadhar Retailing Limited operates as a subsidiary of Pantaloon Retail (India) Ltd.

FOOD BAZAAR
Ab Ghar Chalaana Kitna Aasaan

The retail outlet has on offer 12,000 SKUs (stock keeping units), which it claims is larger than the normal 4,500 SKUs practised by other retail outlets. To adhere to the touch-and-feel habit of Indians, when it comes to buying products, Food Bazaar has recreated a sabzi mandi (vegetable market) kind of ambience for vegetables and fruits. Thus the customers are able to pick and choose the vegetables instead of just having the option of packaged products

Innovations

Hindustan Unilever, Future Group to co-brand bakery products, items to be sold at select Big Bazaar stores.
The bakery products will sport both Hindustan Unilever's 'Modern' and Future Group's 'Freshly Baked' brands on their packs

With the all-new concept, Foodhall wants to tap the urban Indian consumer who wants to experiment with both imported food items like wines and chocolates, and grocery regulars like exotic spices and organic lentils.