Marketing Strategy of Big Bazaar India

Marketing Strategy of w onlyoping fair IndiaIn this assignment, I cast off up described its merchandise strategies and onward motional activities.The assignment is based on the telling selling system which influences client to purchase a growth of humongous funfair helps to understand the effect of grocerying dodge which is responsible for attracting node towards gr make bazar.The research was carried forbidden as per the steps of Marketing Research. The fountainhead supportive objectives were set for the study. To meet the objectives primary research was undertaken. The data accumulation approach adopted was experimental research. considerable fair is the speedy festering and most boffo Retail set up in India. king-size bazaar is the first sell chain to be started in India and is the largest until straight. In the later(prenominal) part of the assignment I fuddle applied 4Ps trade strategy to show that how vainglorious bazar has reached from introduct ion exemplify to fruit st date and observed via some confidential informations that this company is right now in growth stage of Product disembodied spirit Cycle model. I choose excessively analyzed the SWOT showing how this company made its flaw much than effective. I have also described some suggestions to improve its brand image towards customers.ContentsINTRODUCTION expectant BAZAAR is a charge renowned in Retail. It is now a brand image in private retail sector. Wal-Mart is the retail come ins of USA and is known t break through ensemble e realwhere the world for its moodable and affordable materials and is known as wholeness of the surmount in its depicted object, big bazaar squirt be said as the Wal-Mart of India running a chain of more than 100 retail stores in India.People around the orbit calculates that big bazaar is inspired from Wal-Mart and it is electably obvious to think as Wal-Mart is world lede chain of retail obtain al unmatchable actu alt ogethery the idea of big bazaar came to the chief exe telescopedive officer Kishore Biyanifrom a 25 years one-time(a) store Saravana which was owned by a family and worked on the philosophy of imp all overished margin high criminalover. undermentioned its slogan of isse sasta or achha kahin nahi(Meaning female genitalianot find cheaper and better than this anywhere) it provides the consumer with the topper of the materials at a rate less than rest of the market. b dis shapeedn-up bazaar is the subsidiary of in store(predicate) Group, Pantaloons Retail India ltd.The brain behind big bazaar is the CEO of hereafter Group Mr. Kishore Biyani futurity group is has different brands standardized Pantaloons, F123, Copper Chimney, Etam, Staples, iodine Mobile, Urbana, Brand Factory, LootMart, central officeTown and Central. hulking bazaar covers all parts of India including the metro cities Kolkata, Delhi, Chennai, and Mumbai. better-looking bazaar started with its first store in Kolkata, west Bengal in 2001 and now owns more than 100 stores all over India making itself the fastest outgrowth retail chain in India and leaving all its foes behind.WHY BIG BAZAAR?Indian retail sector is witnessing one of the most hectic Marketing activities of all times. The companies atomic number 18 fighting to win the hearts of customer. there is ever so a first mover advantage in an future sector. This advantage goes to BIG BAZAAR in India. It has brought about many changes in the buying behavior of plenty as self-aggrandizing bazar provides all items in one roof at pitiable rank.The consumers preferences ar ever-changing they atomic number 18 moving from buy ats stores to youthful-fashioned Retail outlet. Its the main challenge to the Modern retail outlets to attract the customers towards them from that of competitors. To attract more customers companies have to give birth out the promotional activities in unique way. BIG BAZAAR has maintained that uni queness has succeeded in attracting customers.The promotional practise of the company, which famous as Less worth than antithetics as it saysNobody Sells Cheaper and Betteris made its place in minds of customer. As the contention is becoming stiff in the market the activities conducted by the company argon unique, that have brought fruitful result to the company. Among them sales Promotions is one of the leading activity or unique among all former(a) activities has high influence on the customer walk-in.OBJECTIVESTo know the effective marketing strategy which influence customer to purchase a product of massive bazar.To know the marketing and promotional strategy of big bazaar.How walloping bazar Establish and maintain its lieu in retailing through promotion.LITERATURE REVIEWRELATED strip STUDYA lot of case studies have been done in the first place on this topic and its different aspects as my focus is on leading towards success through the depleted cost strategy which is followed by big bazaar, one of them is described belowBuilding brand through challengeIn 2001, PRIL opened its first Big bazar, a 30,000 squ are feet store in Kolkata. The major USP of the Big carnival, store was low pricing. These stores abideed the beaver expenditure hint to customers.As part of this, the stores focused less on brand items and more on un mark products with the same superior as brand ones, at a much cheaper rate. Commenting on this, Biyani said, We are not in the business of selling ambience, scarcely in the business of giving the top hat possible deals to our consumers.The first forage Bazaar was set up in Lower Parel in suburban Mumbai in 2001. Food Bazaars re show up PRILs denude into yet another value retailing business, focusing on provender and grocery products. These stores were designed based on PRILs understanding of the emotional and coherent needs of Indian housewivesThe tremendous success of the Pantaloons, Big Bazaar and Food Bazaar re tailing formats, easily made PRIL, the 1 retailer in India by the early 2004, in terms of turnover and retail scene of action occupied by its outlets.In the fiscal year ended June 30, 2003, PRIL change magnitude its retail area by 66% to 586,000 sq. ft and reported revenues of Rs 4.45 zillion, a 56% increase over fiscal 2002. Its net profits rosaceous by 63% to Rs. 114.1 million in fiscal 2002-03, over the old year.Big Bazaar has positioned itself as a value for money proposition for Indian family retail store. They wanted to recruit Big Bazaar as a retail store which gives its customers maximum advantage over other retail stores by catering to all their needs budget sharp and income level wise.Sabse Saste 3 Din(the cheapest 3 days) brain child ofMr. Sadashiv Nayak, President Big Bazaar and Rajan Mal sulphurousra, President Strategy and Convergence, Big Bazaar, believe that Consumers are always looking for best value for their money. Big Bazaars Sabse Saste 3 Din is a great opportunity for them to save money and gets best products at the best possible prices. These three days have come to truly correspond freedom from high prices for consumers in the country.Maha Bachat ( save money) was introduced five years jeopardize ( in the year 2006 ) and it is still running very boomingly. It is known as one of Indias mega discoverping campaign.Continuing its efforts to provide the best revealping deals and nest egg to Indian consumers, Big Bazaar is always set to make nation Day and Independence Days shopping, truly memorable, with rock bottom prices, best possible discounts and mega offers.Apart from the flagship Big Bazaar and Food Bazaar stores, other future group retail formats like Furniture Bazaar, Electronic Bazaar, Depot, and Home Bazaar stores are also a part of this mega campaign. From daily family line needs of food and grocery to apparels,RETAIL INDUSTRY IN INDIAIndia has one of the largest numbers of retail outlets in the world. Of the 12 mi llion retail outlets give way in the country, nearly 5 million sell food and think products. Thought the market has been dominated by un create players, the entry of municipal and international organized players is set to change the scenario. Organized retail plane section has been growing at a blistering pace, exceeding all antecedent estimates. According to a study by Deloitte Haskins and Sells, organized retail has change magnitude its share from 5 % of sum total retail sales in 2006 to 8 % in 2007. The fastest growing segments have been the wholesale cash and carry stores (150%) followed by supermarkets (100%) and hypermarkets (75-80%). Further, it estimates the organized segment to account for 25 per cent ofthe total sales by 2011. India retail manu incidenture is the largest industry in India, with an date of around 8% and contributing to over 10% of the countrys GDP. Retail industry in India is pass judgment to rise 25% yearly being dictated by buckram income grow th, changing life styles, and favorable demographic patterns. It is expected that by 2016 modern retail industry in India will be worth US$ 175 -200 billion. India retail industry is one of the fastest growing industries with revenue expected in 2007 to amount US$320 billion and is increasing at a rate of 5% yearly. A nevertheless increase of 7-8% is expected in the industry of retail in India by growth in consumerism in urban areas, rising incomes, and a launch rise in rural consumption. It has further been predicted that the retailing industry in India will amount to US$21.5 billion by 2010 from the current surface of US$ 7.5 billion. Shopping in India has witnessed a revolution with the change in the consumer buying behavior and the whole format of shopping also altering. perseverance of retail in India which has become modern can be seen from the fact that there are multi- stored malls, considerable shopping centers, and sprawling complexes which offer food, shopping, and whoop it upment all under the same roof.India retail industry is progressingwell and for this to continue retailers as well as the Indian government will have to make a combined effort.4PS OF MARKETINGMarketing is the promotion of products, especially advertize branding. Marketing practice tends to be seen as a creative industry, which includes advertising, diffusion and selling.Marketing unite is a deciding factor in formulating marketing techniques for the success of a particular brand, commodity or company. The components of marketing mix areProductPricePlacePromotionhttp//marketingroi.robinsonmaites.com/wp-content/uploads/2010/01/4ps.gif point of reference http//notesdesk.com/notes/marketing/the-marketing-mix-4-ps-of-marketing/PRODUCTBig Bazaar offers the maximum change for every sept of product. The product is the same in every store in the city but the brand options are more in Big Bazaar and the quantity for each product is not limited to large packs only. The commodi ties change by the retail chain includes its own products which get a install distribution network. The own products of Big Bazaar include My World fashion magazine which is not available anywhere else. So costs are very low for such(prenominal) products.PRICEPrice is the critical point in a competitive industry. Big Bazaar works on a low cost model. It considers its discounted price as its USP. in that position is an clean discount of 6-8% on all items in respect to their MRP. Prices of products are low because it is able to secure stock directly from the manufacturer. There are huge synergies in terms of bag purchasing, transportation and central warehousing. These all factors are very helpful for the retailers to keep low prices.PLACEPlace kernel the location of the business. Big Bazaar has always worked on cheap locations. It targets semi-urban cosmos with its placement. Its strategy is to find a low-cost location and it never goes for hot spots in the city. It relied on promotional activities to make up for ugly locations. Another strategy used by Big Bazaar to spank location disadvantage is use of internet. It has launched a merchandise retailing website www.futurebazaar.com which targets high-end customers establish to use credit cards. The promotion of this website is done through advert on Google. The website is put as sponsored link.PROMOTIONBig Bazaar has huge promotion budgets. The biggest idea behind all advertisements is to make people do bulk shopping. There are 2 types of promotional strategies of big bazaar. One is the advertisement which promotes the brand and creates awareness towards people. It is not targeted at promoting each store but only creates an image of Big Bazaar as low-cost shopping option. The store has advertised through TV, road shows and also started reality show-typed promotional campaign The Big Bazaar Challenge. Promotions like Sabse Sasta Din(Cheapest Day) are a very successful strategy to get good results. In this products across categories such as furniture, electronics, utensils, apparels and food products at the net possible prices, coupled with kind promotional schemes. Some of the most attractive offers being a 20-litre branded microwave oven with grill for Rs 2,399, jeans and trousers for Rs 199 and HCL laptops for Rs 22,800.Buy 2 Get 1 set free types of promotions are very common. Original prices are cut down and newly prices are shown, of which customer takes quick notice. There are loyalty schemes which final lucrement regular clients.CURRENT POSITIONING STRATEGY OF BIG BAZAARBig Bazaar is holding a strong position in the market and is growing very fast. It captures the maximum Indian market and with a strong financial solid ground and it has to go a gigantic way through.The low price strategy it is successfully running its business all over India and is still growing bigger and bigger. The following graph shows the Product Life Cycle of Big Bazaar which is currently at the growth stage.Source http//www.coolavenues.com/know/mktg/ravi-big-bazaar-14.phpLooking at the product life cycle of big bazaar it can be seen that it is in the growth stage at this point of time and still have a lot cranial orbit to grow.It is said thatCheap prices are a luxury for the rich but a necessity or a need for the poor.So Big bazaar has understood the need of a vast hold outence of the hurrying middle kinsperson and middle class people of the country and in fact no matter how rich a person is wheresoever he/she can get good brands at a cheaper rates they will be attracted towards it whether an average or a rich person.property STRATEGYBig Bazaar strive to foster a aroma of well-being in their employees through care and respect, Big Bazaar have several structured processes including employee mentoring and grievance management programmers which are intended to ease a friendly and cohesive organization culture. Off -site activities are advance to improve interperso nal relationship. Big Bazaar also acknowledge the efforts exerted by their employees by organization an annual celebration called Pantaloon Day where Big Bazaar recognize employees who have shown exceptional talent, sincerity and dedication. Big Bazaar have implemented an employee suggestion programme called Prerna wherein the employee can give their suggestions. Every butt the best suggestion received per zone per format is awarded prize called halcyon Cap.BIG BAZAARS NEW MARKETING STRATEGYBig Bazaar has launched new marketing strategy which is based on Guerrilla Marketing. Guerrilla marketing warfare strategies are a type of marketing warfare strategy designed to outwear-down the enemy by a long series of meek attacks, using principles of surprise and hit-and-run tactics. Attack, retreat, hide, and then do it again and again, until the competitor moves on to other markets. Guerrilla force is divided into small groups that selectively attack the target at its weak points. In t he world of cut throat competition, corporate use extension of the same strategy in marketing. Corporate like Pepsi, Coke etc have been using the same for kinda some time now and the latest entrant is our very own future Group- Big Bazaar, Future Bazaar, Pantaloons, e Zone are all part of this group and they are taking on the biggies like Shoppers Stop, Lifestyle, and Tatas Westside. In order to do the same, Future Group have come up with 3 assurey and cheeky ad campaigns which surely do catch our eyes and surely one cant resist appreciating the same.ADVERTISING THE intrinsic OF BRAND BUILDING PROCESS-Advertising is an essential component of brand edifice. The advertisement and brand buildingis done through diverse ways, the techniques used areTag-lineBig Bazaar tag-lines are the key components of advertising. These tag-lines aremodified harmonise to demographic profile of customers. These catch-phrases appeared onhoardings and newspapers in every city where Big Bazaar was la unched.Print AdsBig Bazaar newspaper advertisements are present just before launch of any newscheme.TV AdsKishore Biyani spends a lot of money in brand building exercise. Big Bazaar commercials are shown on various channels in India. Presently, Fashion at Big Bazaar commercial is aired.Road-side AdvertisementsBig Bazaar bill-boards are displayed on prime locations in variouscities as a brand building exercise. They display the catch-phrases now-a-days.Radio AdsThis technique is used in cities like Sangli (Tier 1 / Tier 2 cities).Now-a-days, it is replaced by advertisements on FM channels. This informs customers about all new happenings atBig Bazaar.For exampleThe departmental store chain Big Bazaar has launched a commercial sometime back to promote The Great Exchange Offer. The commercial portrays how customers can exchange any old and broken items (junk) and get new products at a discounted price from Big Bazaar.Customer can get the amazing prices for junk. The month of January and February is generally a low-key affair in terms of customer footfalls and revenue generation. Innovative, out of the box promotions is one of the effective ways to draw customer financial aid and shore up the revenue. Historically Exchange schemes have been used to prepare better sales it also has a strong appeal with the Indian mindset of getting value even for their junk, states an official release from Big Bazaar.SWOT ANALYSISStrengthsMaximum number of varieties People prefer those places where they can get the maximum products they need and Big Bazaar provides vast diverge of products under one roof helping in attracting customer and their family to shop together and enjoy the experience.High brand equity Big Bazaar has created high brand equity through its promotions and marketing it has created a different image for its products as the cheap and best.Largest chain of retail marketing in India Big Bazaar is the first retail chain to be started in India and is the largest an d successful until now.High capacity investment Big Bazaar offers 1,70,000 products and owns more than 100 retail stores all over India and has the strong financial background as being the subsidiary of future groups which owns the pantaloons which is one of the biggest the industries in mens wear in India and have its work is spread all over India. Future group is one of the leading groups in India.Everyday new promotions and schemes of low prices and discounts Big Bazaar always offers new schemes of low prices and gives discounts in products like Big Bazaar offers the sabse saste 3 din ( the cheapest 3 days) in which it offers the lowest of prices than other days.Facilities like online booking and delivery of goods It is not just a chain of retail shopping but also provides online shopping speediness to the consumers.WeaknessesOvercrowded During offers, promotions and even on weekends the place is overcrowded with people and sometime even there is the situation of closing the sto re collectable to it.Checkout can be extremely check There can be seen a long queue on the charge counters making the consumer wait for hours due to the slow service and the crowd.Perception of low price=low lumber mainly people think that if any product has low price then the quality of the product will be low as they think quality comes with price.Targets at the middle class and upper middle class only It targets at the middle and upper middle class due to which it ignores the upper and elite class people as they are the option of the nightclub who are ready to pay any price for the quality and product they need.OpportunitiesBig Bazaar can enter into production of various products due to its in depth understanding of customers tastes andpreferences.Nowadays people prefer going to one big store and buy everything instead of see different places for different items and waste time. So Big Bazaar can expand the business in smaller cities as there is a lot of opportunity.Lot of potential inthe rural market.ThreatsHigh business happen involved Big Bazaar investment is very large so it is obvious that there is high business risk involved.Lot of competitors There are a lot of countries which are planning to enter the Indian market like Wal-Mart, Carrefour and Tesco which is a big curse to Big Bazaar.Less Parking Space Customers are not satisfied with the put space availability provided by Big Bazaar. Hence its a threat of Big Bazaar as it may loose its customers because of less pose space availability. In holidays it will be very difficult for customers to viridity their vehicle in Big Bazaar.Unorganized retailing Unorganized retail stores are a threat to the business of big bazaar as now also people prefer to go to the local stores which are convenient enough for them.COMPARITIVE ANALYSISBIG BAZAAR V/S VISHAL MEGA MARTVishal Mega Mart ( FOR DETAILS REFER APPENDIX)FieldsBig bazaarVishal mega martPriceBig Bazaar prices are very low because its adopt the low price marketing strategy.Vishal Mega Mart prices are not low because they give whatever is market price.ServiceBig Bazaar services are not quite good as billing problem due to crowd and less parking space.Vishal Mega Mart does not face these kind of problems as its not overcrowded.AmbienceProduct varietyBig Bazaar has lots of variety in every division of products. In Big Bazaar people can find virtually everything.Vishal Mega Mart dont have so much varieties as it is smaller than Big Bazaar.ConvenienceBig Bazaar has always worked in cheap location so that it is very convenient for the people to go to the Big Bazaar rather than going outer of the city.Vishal Mega Mart also works in low cost loacation but it is not so much best-selling(predicate) in comparison of Big Bazaar as showrooms of Vishal Mega Mart are less than Big Bazaar.Shopping experienceIn Big Bazaar people can buy the maximum variety of products of every family unit under one roof helping in attracting customer a nd their family to shop together and enjoy the shopping experience.Vishal Mega Mart also provides the products under one roof but there is not so much varieties so that customers dont attract so they can not enjoy their shoppingsProduct qualityThe product quality is good in Big Bazaar because people can find cheap and best things in Big Bazaar.The product quality is also good in Vishal Mega Mart but the prices are very high.RECOMMENDATIONSBig bazaar should keep offers in regular intervals so that there should not be a long term gap, because offer is the most influencing factor which is responsible for customer purchase decision.Big bazaar should start emphasizing more on internet shopping along with the formal retail shopping because a large population of the country likes to shop online in order to save time.Along with the different discounts and offers it should pay attention towards the students and provide some offers for them also because half of the Indian population is of you ths and students.It should work on its billing counters and customer service in order to solve the problem of long queues and waiting customers.CONCLUSIONBig Bazaar is undoubtedly the number one retailer in India. It has built a very emotional and cordial relationship with its customers. It is also very intending to built long-term relationship with all its stakeholders, which is very essential for a successful business venture. It is observed that the organization hierarchy is professional as all the departmental Managers directly report to the store manager who in turn reports to the Zonal Head. Big Bazaar, with 25 years of experience in the field of weaving fabrics, is the leading Apparels and fashion design fabric company.There exist a healthy and positive relationship between employees and managers. The employees induce their responsibilities wholeheartedly, accept that it is their responsibilities to carry out a part of the activities of the company and they will be held acc ountable for the quality of their work. It is found that more than 60% of employees are of the age group of 20-35. Fromthis it reveals thatcompany is having young and energetic workforce who are very creative, desirous and also very determined to grow in their career and in turn helping the company to grow. Working environmentis good and also the various facilities provided helps in motivating the employees. The company is reaching out to all the sections of the society as it is creating a hypermarket where not only the rich people shop but also the middle and the lower class customers come to enjoy the whole shopping experience.Moreover the customer friendly ambiance and the organized retailing of products also make Big Bazaar one of the successful retail industries in India.REFRENCESAbhay, 2008. Big Bazaar. Online accessible at http//ekikrat.in/Big-Bazaar Accessed 23 marchland 2011.Admin, 2009. Marketing Mix. Online usable at http//notesdesk.com/notes/marketing/the-marketing-mi x-4-ps-of-marketing/ Accessed 18 touch 2011.Berry, T., 2008. How to fulfill SWOT Analysis. PaloAltoSoftware,Inc.Bhasin, R., n.d. Big Bazaar Case Analysis. Online easy at http//www.slideshare.net/pushpa14/big-bazaar-case-analysis Accessed 29 parade 2011.Bhatia, H., 2010. Big Bazaar. Online Available at http//business.mapsofindia.com/india-retail-industry/companies-growth/big-bazar.html Accessed 21 March 2011.Cook, S., 2011. Big Bazaar India. Online Available at http//goindia.about.com/od/shopping/gr/big-bazaar.htm Accessed 20 March 2011.FutureBazaar.com, 2010. Future Bazaar India Ltd. Online Available at http//bigbazaar.futurebazaar.com Accessed 24 March 2011.Group, F., 2008. Future Group. Online Available at http//www.futuregroup.in/home.asp Accessed 22 March 2011.Gupta, N., 2010. Big Bazaar Maha Bachat. Online Available at http//www.indiasummary.com/2010/08/11/big-bazaar-5-days-maha-bachat-sale-from-big-bazaar-india-august-2010-for-independence-day/ Accessed 25 March 2011.Kotle r, P., n.d. In Marketing Management. twelfth ed.Kumar, V., 2010. Promotional Strategy of Big Bazaar Maintaining the image in Retailing. Online Available at http//www.skylinecollege.com/blog/dissertation/promotional-strategy-of-big-bazaar-maintaining-the-image-in-retailing Accessed 19 March 2011.Malhotra, R., 2008. Big Bazaar Indias Real Retail Story. Online Available at http//www.moneycontrol.com/news/business/big-bazaar-%E2%80%93-india%E2%80%99s-real-retail-story_358768.html Accessed 26 March 2011.Mital, D., 2010. Big Bazaar a Review. Online Available at http//www.chillibreeze.com/articles/Big-Bazaar.asp Accessed 27 March 2011.Rakesh, 2011. Big Bazaar. Online Available at http//www.pantaloonretail.in/fashion-bigbazaar.asp Accessed 20 March 2011.Raman, A. Winig, L., 2006. Big Bazaar. Harvard Business Review, p.23.Rao, V.S.R., 2010. Big Bazaar. Online Available at http//www.citeman.com/11184-big-bazaar/ Accessed 28 March 2011.Sankar, M., 2009. Big Bazaar The hypermarket. Online Av ailable at http//articles.besttofind.com/a-1462/business--finance/big-bazaar-the-hypermarket.html Accessed 26 March 2011.Sumesh, 2008. Sasta Shopping. Online Available at http//www.sastashopping.com/search.aspx?search=big-bazaarallwords=true Accessed 25 March 2011.