1. Future group: The Walmart of India
Group no-3
Nasir Malik
Khalilullah
Deepu shaw
Hrushikesh
Lisha Rafeek
Subodh Kumar
2. Objective of this case
Understand
the issues and challenges faced by Walmart
and Future Group.
Analyze
the retail formats and promotional strategies
adopted by Walmart and Future Group.
Analyze
the potential for growth for Walmart and Future
Group.
Examine
how Walmart and Future Group would combat
competition from other leading retailers.
3. Company Profile
Founded
by Mr. Kishore Biyani.
Incorporated
In
in 1987 as Manzs wear Pvt. Ltd.
2006 its name changed as Future Group.
Head
quarters in Mumbai.
Employees
Has
over 30,000 people.
over 1000 stores in 61 cities of India.
Spread
of 1.3 million square feet.
5. Retail format
E-CommerceFood
offers wide range of product to doorstep.
Baazar- chain of large supermarkets, Brew Bar..
FashionHome
and Electronics, General merchandise.
Leisure
Books
brand includes- all, blue sky, etc.
and entertainment, wellness & beauty
and music and communication.
Pantaloon
retail chain, Hypermarket- Big Bazar
Supermarket
and departmental stores.
7. Retail formats of walmart
Discount
To
stores, supercenters, specialty stores.
meet growing demand for one shop family purchase.
Neighborhood
Online
Small
markets- selling ltd drugs and groceries.
music store, merchandise stores, food and drugs
markets(bodegas), cash and carry stores
Membership
warehouse clubs, apparel stores.
8. Promotions
Direct
selling model- to touch and feel the product.
Walmart
slogan- always low price.
BigbazarBigbazar
Saal
isse sasta aur achcha kuch nhi.
to maximize market share used slogan-
k sabse saste teen din.
Innovative
Hafte
days.
offers like wednesday bazaar.
ka sabse sasta din to attract customers on week
9. Promotions
Exchange
Slogan-
bring anything old and take something new.
Bigbazaar
Low
offers called the junk swap.
also advertise on T.v, radio and print bill board.
price proposition- chane k bhaw kaaju.
Celebrity
endorsement- M.S. Dhoni, gurella marketing.
Termed
as value for money stores, 6 day biannual
compaign.
Psychological
Special
discounting like 99, 49
offers on festivals, buy one get one offers.
10. Technology deployment
Operational
Bar
strength of walmart was info. Sys.
code reader and EDI (electronic data interchange) for
information sharing with suppliers with in & across the stores
Retail
link to study POS data & product inventories.
Introduced
RFID to have more visibility in S&C.
Implemented
Walmart
Future
SAP to build transact. Mgt. sys.
launched e-commerce stores .
group also launched e- commerce.
11. Human capital
Walmart
High
employee turnover, low pay.
Relying
Benefits
But
known for giving importance to its employees.
on temporary labor.
package, especially health care coverage.
criticized for its employee relation.
PRIL
used its employees as assets.
Implemented
several T&D programs to encourage..
Implemented
Happy index program.
12. International ventures
In
1990, walmart started international expansion.
By
2004 it had 4900 locations in US, europe & asia.
Entered
In
in canada in 1994 with acquisition of 122stores.
2004, walmart purchased supermarket chains in Brazil.
And
later entered into china and japan.
Entered
Future
India into joint venture with Bharti enterprises.
group did not have international market.
However
player.
entered into joint venture with several foreign
13. Competition
Walmart
faced competition from departmental stores-
eg- Target, Kmart, costco, & BJ”s wholesale club.
Dollor
stores- to combat walmart launched walmart
express, a mini version of its discount stores.
Furute
group faced competition from organized retailers
Such
as reliance retail-marks and spencer,
RPG
group-spencer, bharti-walmart, shopper’s stop
Tata
tesco star bazaar, lifestyle international, and trent.
14. Competition
walmart and future group has to face biggest competition
with unorganized sectors.
As
in India mare than 95% retail market is unorganized.
Inspite
of competition with organized retail sector-
Walmart
and future group managed to successfully launch
new retail formats and it tried to cover entire retail ambit.
15. Looking ahead
PRIL
offered discount on a continuing basis.
Observer
opined that walmart and future group used
innovative add strategies to attract customers.
Future
group still have to compete with foreign and
domestic players to retain its market leadership.
Walmart
launched 5 year strategy to offer more healthier
and affordable food choices.
PRIL
also had a plan to achieve a turnover of Rs. 300bn.