2. DEVELOPMENT AND EVOLUTION OF
RETAIL
Weekly Markets Shopping &
Traditional
entertainment
Village Fairs, Melas
Local Kiranas Neighborhood &
Daily Reach
Convenience
PDS
Low Price
Govt. Support Cooperatives
Rural Retail Adhaar, Hariyali etc New Experience
Hypermarkets,
Modern Shopping
Supermarkets,
Formats experience&
Departmental Stores etc
efficiency
8. ORGANISED RETAIL IN INDIA
2010 2008 2006 2000
M & A and
Consolidations
PHASE IV PHASE III PHASE II PHASE I
Supply Chain,
Strong Backend
support,
Technology',
Sourcing
Range, Formats,
Increase in Portfolio
per capita
retail Space
Phase III and IV Entry, Growth,
are merging at Expansion, Topline
this point of Focus
time.
9. Current Market Scenario
• Economic Slowdown and retail is
also not untouched.
• Retrenchments and Layoffs in both
Western and Eastern world.
• Working capital crunch across
industries.
• Planning and working on the limited
resources. Managing of working
capital is very important.
10. CHALLENGES IN RETAIL
• Taxation laws that favor small retailers
• Different structure of sales taxes in
different states
• Multi point octroi collection
• Problems of supply chain and logistics
• High cost of real estate
• Limited land availability in prime locations
11. RETAIL STRATEGY IN CURRENT SCENARIO
• Bringing out efficiency
• Expansion and
Consolidation decisions
• Capturing the maximum
share of entire
consumption spend.
• Increasing consumption
12. THE BIG BAZAAR STORY
…….With a choice of around 1,70,000 products
and discounts ranging from 6 to 60 %, Big
Bazaar has managed to bring in both masses
and classes. The reason it has emerged as
India’s largest hypermarket, while so many other
stores have floundered, is due to clarity of the
company’s mission and the soundness of its
strategy. Store format, location, layout,
merchandizing policies, and a host of other
elements of the company’s offer to the customer
reflect a deep appreciation of the customers
preferences and purchase behaviour.
13. Things you would like to know
• The biggest customer for Big Bazaar till date is a farmer in Sangli
whose bill amount was Rs. 1,37,367
• The inspiration to set up big bazaar came not from any foreign
super market, but from a relatively small family run shop in Chennai,
called “Saravana Stores”.
• The first big bazaar store was set up in Kolkata and second and
third were at Koramangala, Bangalore and Abids, Hyderabad
• If you thought big bazaar outlets are crowded, they are
intentionally designed to look that way.
• Soon you can expect sales people inside big bazaar outlets trying to
sell you insurance, personal loan and other products and services
• Only apparels and clothing related items are sourced primarily from
Pantaloon’s manufacturing units.
• Big bazaar runs SAP which is one of the leading ERP solution
provider.
15. SERVICES
• Big Bazaar customer expect a low price
model of things but a high standard of
services is still expected.
• standard are known by the word of mouth
rather than advertising.
• gap between the consumer expectations
has been efficiently managed
18. Pricing Method
• Value Pricing
• Promotional Pricing
• Loss-Leader Pricing
• Special Event Pricing
• Other pricing strategies:
Buy more, save more
Prices reduced on a combination
Holding special discounts
Highlighting the savings possible
The Price Challenge Offer
19. PROMOTIONS AND
ADVERTISING
• Keep West-aSide. Make smart choice !
• Shoppers! Stop. Make a smart choice !
• Change Your Lifestyle. Make a smart
choice !
