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OperartionsManagement Case Study on

KISHORE BIYANI AND

BY:HUSSAIN MUSTAFA AZAD MBA 2ND SEM,ROLL-29

Company History
Biyani started with his family bussiness in textiles in the year 1987. He launched the 1st branded ready made trousers brand known as Pantaloon. With the help of his company Pantaloon fashions, later it named as Pantaloon Shoppe stores. In 1992, Biyani reached to customer level with its 60 exclusive shops. Initial brand was John Miller and Bare.

Present Overview
Pantaloons Central Big bazaar Food bazaar Brand factory Home Town Furniture bazaar Ezone Electronics bazaar Lee cooper Future money

Who is the brainchild for all these malls are???

Mr.Kishore biyani

He is coined as: Father of retailing in India Rajah of retail Indias retail CZAR The unstoppable Indian

1000 stores in 71 cities with 30,000

people employed. Today the company has almost 14,000 shareholders. He now has about 22 different retail formats.

Q.1 The layout of big bazaar stores is radically different from those in West. Do you think this layout would be successful in the wake of the entry of big players such as Wal-Mart in India market?

Brief History
The hypermarket chain was introduced in Indiain 2001 by Pantaloon Retail(India) Limited.

The first store in Kolkata


The discount store waslaunched in the year 2001, to meet theaspirations of the middle class. In thespan

of two years, it has added a FoodBazaar and Gold Bazaar to its range of offering.

The Strategy
Biyanis Vision- To give the Indian customer the feel of a local market place-narrow lanes, crowded market place and customers bumping into each other and into commodities. Saving is the key to the Indian middle class consumer. The concept of Bazaar, As the store offers large mix of products at a discounted price, the name Big

Bazaar was finalized The idea was to recreate a complete bazaar, with a large product offering and offer a good depth and width in terms of range

To remove Myth in the mind of Indian

consumer that big shopping stores charge more prices for commodities,compared to the local kirana stores.

Selecting the Location


Ability to pull crowds.
Positive economies of scale. Large catchment area is needed.

Generally, those stores in which builders are ready to provide fully-furnished stores that enables them to start there operation immediately.

Elements of store environment


Store Environment Store Image Store Theme

Merchandise MIX
Large product mix offered by Big Bazaar was

the main attraction. Big Bazaar stocked about 1,30,000items in over 20 product categories.

Threats
In long run Big bazaar layout will face problems, in the wake of entry of big players such as Wal-Mart in Indian .

Then what will be the impact?????

Suppliers

Buyers

Potential Entrance

Substitute product

Switching Cost

Where the problem lies with

??

Biggest problem lies with Big Bazaar is the

Inventory level Management. Still they follow Traditional supply chain. Low in Technological upgradation. Delivery not in Time. High Debt exposure. In-house brands occupy 40% of equity.

Strength of
Low cost leadership: Wal-Mart uses legendary inventory replishment system

Through this system Wal-Mart continuously sends orders for new merchandise directly to suppliers as soon as customer pays for purchases at cash register. By this Wal-Mart does not have to spend money on maintaining large inventories of goods in its own warehouse and can adjust with customer demand. By this customer response system Wal-Mart easily manages to keep its operational costs low.

Q2.Using the traditional supply chain has worked for Biyani so far. Do you think it would work in the future as Reliance has chosen to follow the exclusive supply chain route for its stores?

Using traditional supply chain Biyani cant sustain in the long run..... Traditional supply chain

Exclusive supply chain

1.Biyani succeeded in reduction of the expenses incurred, while occupying store from 75million to 40 million for a 50,000 sq.ft stores but fails to maintain the inventory level management. 2. Biyani has often tied up with manufacturers to bring down the selling price of the products sold in big bazaar, on the other side Biyani fails to reduce the ovherhead cost due to the traditional supply chain. 3.Though Biyani has a clear communication with the public through their advertising campaign but fails to maintain two way communication between the supply chain.

Q3. Do you think having a farm near Big bazaar is a good idea? Do you think this concept would be operationally viable?

Having a farm near Big Bazaar is a good idea.

Advantage To Biyani
He easily can focus on the concept, "farm to

plate. He can maintain freshness in his food commodities. The Food Bazaar at Ahmedabad has a fullfledged dairy and produce 1000 litres a day and produces its own paneer and pasteurised milk. Through this biyani has created in-house labels for certain products. Low price commodity

Advantage to operational activities

Narrow the supply chain. Reduction in overhead cost. More customer attraction. High Inventory Managemnet. Easy Input Process. High production capacity. Control over demand. Will give scope for low prices,discounts and promotional gifts.

Q4.Biyani is targeting to occupy 60% of self space in his stores with in-house brands. Do you think it is a good idea?

Occupying 60% of shelf space with in-house brands is not a good idea. Reasons In the long run, Big bazaar may face the problem related to the verities of Merchandise Mix. It will merge the equity of other products. It will incurred switching cost. Low substitute product. Offerings by Rivalry. It may have a negative impact over the brand image.