Archit Soni (Roll No. 30) Kunal Shah (Roll No.27) Rubina Pathan (Roll No.

20)

Shivani Joshi (Roll No. 8) Mehul Raval (Roll No.22)

07/16/11

Submitted To :Prof. Rohita Dwivedi

Flow of Information
Company Background Core Values Target Audience Porters 5 forces Model SWOT Analysis BCG Matrix 7Ps
Food Bazaar SCM Organization Structure Financial Aspects

Type Founded Headquarters Industry Products Promoter Parent Punch line Stores Outlets

Hypermarket 2001 Jogeshwari, Mumbai Retail Department, Grocery store Kishore Biyani Pantaloon Retail India Ltd. Is se sasta aur accha kahin nahin 133 Nos.

Vision
To deliver everything, Everywhere, Every time to Every Indian customer in most profitable manner

Mission
creating and executing future scenarios in the consumption space leading to economic development be the trendsetters in evolving delivery formats, creating retail realty, making consumption affordable for all customer segments

Core Values
Indian-ness Leadership Respect and Humility Introspection Openness Valuing and Nurturing Relationships Simplicity and Positivity Adaptability Flow

 Understands needs of Indian customers. Traditional bazaar ambience. One stop shopping at discounted prices. Provides Best Products at the Best Prices. Targets price conscious majority segment of customers. Cater to every possible retail need of a consumer. Economies of Scale.

Target Audience
Middle and upper-middle class customers. The large and growing young working population. working women and home makers who are the primary decision makers.

Porters 5 Forces Model

Analysis
Rivalry among the competitor:
Reliance retail, Aditya Birla Group, Vishal retail

Threat of entrants:
FDI policy not favorable for international players. Domestic conglomerates looking to start retail chains. International players looking to foray India

Threat of substitutes: Unorganized retail

Analysis
Bargaining power of supplier:
The bargaining power of suppliers varies depending upon the target segment. The unorganized sector has a dominant position. There are few players who have a slight edge over others on account of being established players and enjoying brand distinction.

Bargaining power of buyers:

Consumers are price sensitive Availability of more choice.

SWOT Analysis

ContSWOT Analysis
Strengths High Brand Equity in evolving Retail Markets State-of-Art Infrastructure of the outlets POP (to increase the purchase) Early entry in the Retail Market Diversified business in India One stop shop for variety of products, increasing customer time and available choices
Weaknesses High attrition rate Unable to meet store opening target so far Falling revenue per square feet Employees need more training in handling esteemed customer Very thin margin High cost of operation due to large fixed costs

ContSWOT Analysis
Opportunities Organized retail is just 4.15% of the total pie Huge potential rural market to be trapped Evolving customer preferences in recent years
Threats Many major players are foraying in the retail sector Unorganized retail sector of India Government policies Customer may lose their trust on the company due to supply of substandard products Margin of business reducing all the time

Life cycle of Big Bazaar

S A L E S

Big Bazaar At BCG Matrix

M A R K E T H I G H

G R L O O W W T H High Market Share Low

7 Ps Of

1.Product Mix

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

Soft drink Packaged juice Milk Items Frozen foods Ice creams

Product Mix Cont..

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

2.Pricing
Value pricing Promotional pricing
Low interest financing Psychological discounting Special event pricing

Differentiated Pricing Time pricing Bundling

Value Pricing (Every Day Low Pricing)

Promises customer the lowest available price without coupon clippings, waiting for discount promotions or comparison shopping

Psychological Pricing

Low Interest Financing

Special Event Pricing

Big Bazaar also caters on Special Event Pricing on festival season like Diwali, Gudi Padwa, etc.

Time pricing
Difference in rates based on peak and non-peak hours or days of shopping

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

3.Place
Number of out let133 till Aug 2010 Located at main city-tier I & tier city-II; Area-10,000sq ft120000 sqft; High street area of city Approachable destination.

4.Promotion
Below the line Promotion Above the line Promotion Brand endorsements Advertisements Exchange offer Wednesday bazaar Sab se saste teen din Shakti card Future card

Promotional Offers

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5.People
Well trained staff. Appearance. Empowered individual. Encouraged to think out of box. Use Scenario Planning as a tool for Quick Decision Making.

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

7.Process
The goods dispatch and purchasing area has certain salient features 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

Positioning
High service

Low price

High price

low servic e

Future Strategy of

Big Bazaar Supercent eres (>75,000 sq ft)

What Customer Love About The Store

There is something for my husband, my kid and me Superior quality at a reasonable price
Itna bada a/c shop, trolleys jisme apna samaan aur chote bacche dono sama jate hain, thakaan to zara bhi nahin hota

kapde bhi reasonable hainTShirts, trousers itne bhi mehenge nahin hain Pahle baar dar laga socha bahut expensive hoga. But reasonable Prices dekhe bahut khushi hui

Kya variety hain! Jo kahin bhi na mile idhar zaroor milega

Khaali haath nahin lautenge!!! Discounts are always on

We always get extra bags from Big Bazaargives a good impression to be seen with the bag

All visitors-women

Parking

Ambience & Decor

Encouraging Loyalty
Launched ICICI bank co-branded credit card For every Rs.100 spent, 4 points are rewarded Then, loyalty points converted to a gift voucher at every 500 mark Each gift voucher is accompanied with another one worth Rs 100 Personalise offers based on the above Offer free home delivery and special discount on occasions like Birthdays & anniversaries to the card holders

Private Label Brands

Food Bazaar

Food Bazaar
Average area, 5000 square feet of retail space Modelled on the Indian Mandli So, Customer can touch, feel and choose products Local flavours and varieties are made available Launched Food Bazaar masalas, tea and premium harvest pulses Planning to expand independently as a part of Future Group

Product Categories
Processed Food & Non processed food
Contribute 60% of sales Includes large no. of FMCG products Imported products, Health food, Speciality food Contributes 30% of sales Dry groceries like rice, wheat, dal, spices, etc Contributes 10% of sales Fruits and vegetables

Dry Staples

Wet Staples

Managing the Supply Chain

Supply Chain Management

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 & starts picking, Stock Transfer Note(STN) and Gate pass. DC will transfer the stock to stores. Here starts the part of logistics.

Logistics
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

Checks for seal condition & number as mentioned in the Gate pass, delivery note Informs particular department about reception of good Checks the items in front of particular depts team members stock transfer number wise if any discrepancy has occurred & informs to supply site Enter all the details in Inward register as well as in the systems moves the stocks to the floor

Reception of Goods from Vendor

Check for TAX, Invoice & Purchase Order Vendor himself has to go to the respective department & takes permission for the submission of goods in Logistics Prepares GRN note in 3 copies for logistics, respective department, DC/Vendor departments have to Collect their respective goods from logistics. All the above process is for In-warding also

Few Cases In Which Out warding is done

Home Delivery Store to Store Transfer Damager or Expiry Stock Transfer to Warehouse or Vender Return of Salable items

Registered Maintained By Logistics

Food Bazaar Outward Big Bazaar Outward Vendor Schedule Register Bar Code Register Free Gift Register Scrap Register Vendor Security Register Warehouse Security Register

Organisation Structure

Flat Structure
Store Manager

Asst Store Manager

Deputy Manager

Administration Info HR Manager Maintenance

Sales Manager

Asst. DM

Marketing
Visual Merchandising Team Leader CSD Team Member Asst. DM Security Cashier House Keeping

Financial Aspects

52

Balance Sheet
S u e o fu d o rc s f n s O n r's fu d we n E u s a ca ita q ity h re p l S a a p tio m n y h re p lica n o e P fe n s a ca ita re re ce h re p l R s rve &s rp s e e s u lu L a fu d on ns S cu d lo n e re a s

Profit & Loss Account

(R s.Crore)

Jun ' 09

Jun ' 08 5,295.88 3,556.21 100.66 275.78 372.54 527.28 4,832.47 463.41 30.93 494.34 201.45 83.39 209.50 69.68 139.82 (13.88) 0.03 125.97 341.73 10.67 1.81 329.25

Jun ' 07 3,393.47 2,239.53 78.15 207.74 291.72 358.38 3,175.52 217.95 4.36 222.31 95.93 36.86 89.52 60.96 28.56 91.49 (0.06) 119.99 236.58 7.54 1.28 227.76

Jun ' 06 1,960.86 1,268.15 58.96 112.72 170.07 198.69 1,808.58 152.28 3.93 156.21 43.22 20.82 92.18 27.67 64.52 (0.25) (0.11) 64.16 130.66 6.72 0.94 123

Jun ' 05 1,084.11 716.49 37.48 50.75 90.71 104.20 999.63 84.48 3.31 87.78 26.08 13.33 0.12 48.24 14.54 33.71 4.79 0.05 38.55 76.63 5.50 0.77 70.36

Income
O perating income 6,661.42 4,481.95 115.91 275.94 443.36 672.01 5,989.17 672.25 12.08 684.33 317.76 140.05 226.52 75.38 151.14 (10.29) (0.27) 140.58 408.14 11.57 1.97 394.6

Expenses
M atrial C onsum ed M anufacturing expenses Personnel expenses Selling expenses Adm instrativ expenses e Expenses capitalised C of sales ost O perating profit O ther recurring incom e Adjusted PBD IT Financial expenses D epreciation O ther w offs rite Adjusted PBT T charges ax A djus ted PA T N recurring item on s O ther non cash adjustm ents R eported net profit Earnigs before appropriation Equity div idend Preference div idend D idend tax iv R etained earnings

Happy Shopping!!!