Buying behaviour A marketing firm must ascertain the nature of the customers buying behaviour, if it is to market its product properly. In order to entice and persuade a consumer to buy a product, marketers try to determine the behavioural process of how a given product is purchased. Buying behaviour is usually split in two prime strands, whether selling to the consumer, known as business-to-consumer (B2C) or another business, similarly known as business-tobusiness (B2B).  B2C buying behaviour This mode of behaviour concerns consumers, in the purchase of a given product. As an example, if one pictures a pair of sneakers, the desire for a pair of sneakers would be followed by an information search on available types/brands. This may include perusing media outlets, but most commonly consists of information gathered from family and friends.If the information search is insufficient, the consumer may search for alternative means to satisfy the need/want. In this case, this may be buying leather shoes, sandals, etc. The purchase decision is then made, in which the consumer actually buys the product. Following this stage, a post-purchase evaluation is often conducted, comprising an appraisal of the value/utility brought by the purchase of the sneakers. If the value/utility is high, then a repeat purchase may be bought. This could then develop into consumer loyalty, for the firm producing the pair of sneakers.  B2B buying behaviour Relates to organizational/industrial buying behavior. B2C and B2B behavior are not exact, as similarities and differences exist. Some of the key differences are listed below: In a straight re-buy, the fourth, fifth and sixth stages are omitted. In a modified re-buy scenario, the fifth and sixth stages are precluded. In a new buy, all aforementioned stages are conducted.
Retail in India
India has stepped in the exuberant age of retail. It ranks second after Russia as the most alluring destination for retailers among 30 emerging markets, according to the Global Retail Development Index developed by AT Kearney, a consultancy. The 10-12% increase in the economy’s disposable income can be seen clearly by the way goods and services are being brought and sold. Retail Trade contributes 10-11% of India’s GDP and currently employs over 4 crore people. THE DRIVE FOR RETAIL : The reason for the boom in retail is the gradual increase in disposable incomes of the middle and upper class household. Countries like US, Japan, U.K. have started out sourcing business activities and are willing to pay a handsome package to those who deserve. The out sourcing will create 10-24 million jobs by 2020. The Indian youth is zealous, Intelligence and has the will to work hard. This is attracted foreign business organizations in the country where by increasing the income levels and the purchasing power of consumers. The Indian consumer has a great amount of disposable income which has increased demand level of the country. This demand is accompanied by the desire to get the best quality. In India over 65% of the population is below 35 years of age and 54% are below 25 years. They have enough to pay for all their dream desires. Moreover there is a switch from joint family to nuclear family and DINK segment is making its presents felt. Driven by changing lifestyles, strong income growth and favourable demographic patterns, Indian retail is expanding at a rapid pace. Mall space, from a meager one million square feet in 2002, is expected to touch an estimated 60 million square feet by end-2008, says Jones Lang LaSalle's third annual Retailer Sentiment Survey-Asia. The Indian consumer wants the best . This has increased demand for exclusive brands . Now Nike has over 100 outlets and Reebok has over 400 outlets. Thus the increase consumption pattern is having a direct bearing on the growth of retail sector. The consumption in 2005-06 was Rs. 2124000 Crore (Approximately 480 billion.) THE INDIAN RETAILERS: 1. RPG:-It was the first to get into retail Business in India.Foodworld began as adivision of Spencer& Co., a part of RPG Group in May 1996,with supermarket in Chennai.Today Foood world is a separate company: a joint venture between Spencer & Co. and Dairy Farm international. 2. The TATA Group It has signed a joint venture for a new subsidiary, Infiniti retail, a large format multi brand chain for consumer durables. For lifestyle and the food and grocery
segment, it operates through its retail arm Trent. Trent forayed into the hypermarket business with Star India Bazar. 3. Pantaloons Retail: The Company’s value retailing includes includes Big Bazar which is a hypermarket, Food Bazar which is a supermarket and Fashion Station, popular fashion stores. Pantaloon Retail (India) Limited is part of the future Group. The Future Group operates through many verticals viz Future retail, Future Capital, Future Space, Future Logistics and Future Group. 4. Vishal Retail Group: The store has spread over 25000 Sqft. It offers fashion accessories, grocery product, apparel & Electrical gadgets. The Group entered the hypermarket segment with its first such store in Udaipur. 5. Reliance Retail: It has set a revenue target by 2010-11 which is about double of the present revenues of all organized retail business in India. Reliance operates Qwik Mart, quick transaction stores offering the convenience of buying household food and non-food merchandise, music, take-away café and convenience-oriented ancillary services without a price penalty. 6. Subhiksha: The stores are small sized and functional with average size of 1500-2000sqft. 7. Nilgiri’s: The Company’s strategy is backward integration with an increase focus on fresh fruit and vegetables. 8. Trinethra:- It is a South based grocery chain. The stores in Kerala to have a bakery attached for which the Company has tied up with Ann’s Bakery. A LOOK AT THE RETAIL FORMATS 1.Department Store : This represents retail outlets that stocks a wide range of merchandise. Stores often provide customers with exclusive membership cards on purchases up to a certain value. The major players are Ebony, Globus, Life Style, Shoper’s Stop and Westside.
2.Super market : They are self service stores which concentrate on the prize aspect to attract customers like Food Bazaar, Subhiksha and Fab-mall. Supermarket is a self-service store offering a range of food and household articles. 3.Hyper market : It is a department store combined with super market although in India the hyper markets are not well developed still we have a few player like Reliance retail, Big Bazaar and a few more. The latest to make a big splash in the retail scene is the Aditya Birla Retail (ABRL), the retail arm of the $24-billion Aditya Birla Group, which plans to invest between Rs 250 and Rs300 crore for setting up a dozen hypermarkets under the brand name
'More Megastore' in the country. The hypermarkets will offer 60,000 products sourced through over 500 suppliers say company officials. The group also plans to open 'Family Stores' stocking apparel from Madura Garments, the owner Louis Philippe, Van Heusen, Allen Solly and Peter England brands and also distributes the international brand Esprit in India. 4. Discount Store : It is a department store except that it sells products at a lower prize for example The Loot and My Dollar Store. 5. Specialty Store : They offer a large range of selections within a single merchandise category for example The Gold Souk in Gurgaon and the Music World and Planet M. 6. Conveyance Store : The stock most essential and FMGC products like food items and several products of daily use. The major players are Red Shop and My Mart. Although world wide they are open through out the day and night but this is not so all the palyers within this format in India. 7.Kiosk : they are small retails outletswhich are open on all sides and sell consumer goods like edibles and snacks, newspapers and so on. emphasis is on designing the kiosk façade-thet sport attractrive colour schemes. Some of the players are Mr. Orange , Cookie Man, Corn Man ,Kidz on Wheelz and so on. TIE-UPS IN RETAIL Indian retailers are trying to tie-up with global brands through franchise and licensing agreement because they benefits both the partners. The global companies have funds expertise and goodwill while the Indian companies have the right feel of the domestic market.
? India has global retail giants like Bharti-Wal-Mart. Wal-Mart's (the world's biggest retailer) tie up with Bharti Enterprises for cash & carry operations, seems to have encouraged French retailer Carrefour, to enter the Indian market through the wholesale route. ? Mukesh Ambani-controlled Reliance Retail is entering into talks with UK fashion retailer Marks & Spencer (M&S) to float an equal joint venture for apparel, gourmet food and cafes. The gourmet food format may be integrated with Reliance Fresh wherever possible. This would help M&S attain immediate scale in food business as Reliance Fresh has 491 stores selling foods, fruits and vegetables, and may be scaled up to 1,400 stores by the end of next fiscal. Marks & Spencer is present in India through a franchisee arrangement with Planet Retail since 2001 and operates more than 20 stores in India out of its 760-strong global network. Within four months of rolling out its first store in November 2007, Reliance Retail opened 500 stores in various formats, spanning 3-million square ft of occupied space in various cities.
? Home Solutions Retail India (HSRIL), a part of the Kishore Biyani-owned Future Group, will soon start retailing lightings and electrical products under the Bijli Ghar brand. This is the first time a major corporate retailer has unveiled plans to enter the unorganised Rs80,000 crore lighting market dominated by small and medium city and region-specific players across the country. The company already has a joint venture with Asian Electronics and Idiom Design & Consulting to launch the products. The lighting stores will open in 80 Big Bazaar outlets across the country and, in the next six to nine months, the company is planning of opening standalone stores, targeting revenues of Rs100 crore in the first year of operations. FUTURE AHEAD IN RETAIL Merrill Lynch which is a an advisory firm, expects the Indian Retail industry to grow to US$300 billion by 2010. • Spencer's is planning to set up 500 more stores by June 2008 with an investment of nearly US$ 125.89 million. • Hypercity is planning to set up 250 Expresscity stores in the convenience store format across the country in the next five years. • DLF plans to invest US$ 4.02 billion over four years to develop about 20 large shopping malls across the country. • Israeli mall developer Plaza Center NV plans to invest US$ 1.25 billion over the next fiveseven years to set up 50 malls in India. The domestic retail sector is picking up pace with more and more Indian companies entering the sector either on their own or in alliance with foreign retailers to set up premium or niche outlets. While Indian companies such as Bharti, Reliance Retail, Essar, Future Group, Shoppers Stop and the Aditya Birla Group are still trying to consolidate their markets, others such as Mahindra & Mahindra, realty groups like Parsvnath and DLF, two-wheeler maker Hero Honda, chemicals and foods firm Jubilant group and brokerage and realty firm Indiabulls have announced plans to enter the retail sector. Tobacco major ITC is planning to set up more of its Wills Lifestyle, John Players and Miss Players stores across the country. The company plans to increase the number of Wills Lifestyle stores from 250 to 400 by the end of 2008-09. These stores will come up on the lines of the concept store, designed keeping cultural context and customer profile in mind. Kishore Biyani–owned Future Group, India’s largest Retailer has planned to investRs. 3,600 crore in 100 stores in 30 cities.
ORGANISED RETAILING According to industry estimates, the overall size of the retail sector in India is expected to touch $427 billion by 2010 and $637 billion by 2015 with the organised segment expected to account for 22 per cent by 2010. An additional 700 million Sqft of quality retail space over and above what is currently available will be required by 2011. Consulting firm Ernst & Young predicts that the organised retail market in India will touch approximately $30 billion by 2010. Presently the share of organized retailing in India is abysmally low .The bulk of retailing is carried out by 12 m kirana which are mostly family owned. According to McKinsey, a consultancy about 96% of these kirana have 500 sq ft or less space The advent of foreign rivals is viewed with some trepidation by India Retailers The small retailers fear being wiped out while the large ones feel their shared eroded. It is definitely true that Foreign retailers can help improve efficiency among local organized retailers. The entry of foreign competition can lower prices. We cannot, in fact should not hurt the interest of the local retailers We need to size up the retail market into segments and then decide as to which segment can be organized and which one need to be left unorganized for the time being. FDI in Retail will destroy employment in the kirana stores and create retail monopolies. India has the highest shop density in the world with 11 shops per 1000 persons, much higher than European and other Asian countries. We need to think of these small retailers before trying to enforce organized retailing in the country. The giant organized retailers may start using their monopoly and stampede the unorganized small retailers. Acceleration in organized retailing would make business unviable for the several such retailers. As there is great unemployment in the country and the small scale retailing provides livelihood security to about 20 million urban workers and 12 million rural workers, we cannot afford to put an end to it. The introduction of organized retailing would snatch the bread and butter and jeopardize the livelihoods of the millions in our country. We cannot encourage the entry of large retailers unless we have planned a livelihood for the vast majority. KEEP THE RETAIL GOING
There is great competition in the retails sector. Thus arises the need of competent work force accompanied by Technology. Employees in the Retail Sector should be given proper training to deal with the customers. Those working in the retail sector should have a cheerful
disposition because they may have to encounter short tempered customers. • Store Employees should be empowered so that they are under no pressure to deal with the customers. • All retailers should have consumer advisory boards. • There should be customer research . Those employees who provide good service should be rewarded . • Indian retails should follow the example of JC Penny whose sales associates give questionnaires to shoppers which are later analyzed to improve service. • Retailers should always be ready to devise innovative ways to over come the problems of customize. • Retails brands get built by developing personal relationship with consumer the important and frequent customers should be recognized and should be given free gifts and guaranties. • The retailer should be able to display their product very beautifully in order to attract the side of the customer. The Indian retails sector is in a state of evolution. The Indian retailers should understand that retailing has to be taken as a brand in a self. More than 99% of the Indian retailers function in less than 500 Sqft of shopping space. It is a challenge for the Indian Retails Industry to create a scenario making job exciting to the younger generation so as the attract them. It is difficult but not impossible to satisfy the culturally diverse consumers of the country. CONCLUSION:India is an enormous market, of which we are seeing only the tip of the iceberg. If the changes which are taking place in the metros retail start to percolate in the all the urban settlements then there will be a real revolution in the Indian Retail. Indian Retail market is worth a mammoth 350 billion dollars. Such is the underlying potential for Retail trading in the country. A single large retailer should not be allowed to capture the large market share. The Indian Government should not make haste in inviting the foreign retailers instead it should wait to see the great power of the Indian retailers. Indian retailers have to learn both the art and science of retailing by looking at the way the giant retailers are organizing and managing their activities . Indian retailer needs to be innovative and needs to understand the regional variations in consumer tastes We Indians can celebrate our spending power and also channelise our spending towards
healthy consumption for overall development of the country. REFEENCES:Books:• Retailing Management,5th Edition, Michael Levy and Barton A Weitz, Tata McGraw-Hill Publishing Company • Retail Management - A Strategic Approach ,9th Edition, Berry Berman and Joel R. Evans, Prentice Hall Links:• www.imagesretail.com • www.indiaretailforum.in • www.retailindia.typepad • www.ibef.org
A recent Times Private Treaties campaign showcased the power of brand campaigns for the retail high street including Provogue, Gitanjali Jewellery and Pantaloon. The Indian retail market, which is the 5th largest in the world and one of the fastest growing sectors in the country, comprises of organized and unorganized players and thereby presents unique challenges to the entrants. Pantaloon Retail, Provogue and Gitanjali, leading brands in fashion clothing & accessories and branded jewellery are examples of recent Indian retail entrants that have successfully overcome these challenges with their business acumen and branding strategies reports www.justinvested.com. Gitanjali Retail, recognized as one of the leading Indian jewellery retail brands, was launched when the concept of branded jewellery was unheard and unfamiliar. Jewellery segment, at that time, was dominated with unorganized players and largely driven by relationship with family jewellers. Therefore, the challenge was two-fold. One, to create the brand Gitanjali and two, to bring a paradigm shift in the approach of customers towards branded jwellery. Brand campaigns were created jointly with Times Private Treaties addressing both issues. Today, the company has become a definitive word in luxury jewellery and retail jewellery amongst Indian customers. Provogue, another retail entrant has become a benchmark for fashionable yet affordable clothing. With some of the leading Bollywood stars as its brand ambassadors including
Hrithik Roshan, Provogue is recognized as the retail brand success story. Their association with Times Private Treaties has enabled them to build a strong retail brand by creating and executing successful advertising strategies without putting stress on their cash flow. The Times Private Treaties business model is designed to share risk, accelerate growth and create value for the brand in the long term. Adding to the list of successful retail companies associated with Times Private Treaties is Pantaloon Retail. Pantaloon Retail is the flagship brand of Future Group. The company with brands across various retail segments such Big Bazar, Food Bazar, Central and Pantaloons, enjoys high recall across categories. With over 15 million sq feet of retail space in 73 cities and revenue of over $ 1 billion in the latest financial year, it is recognized as one of the biggest retail chains with more than 1000 stores across the country.
Big Bazaar: Brand's Identity, Personality & Symbolism Big Bazaar is Indian personification of retail. It's like an Indian bazaar or mandi or mela, the environment created by traders to give shoppers a sense of moment. Its personality is of being an entity away from fancy or pretty and being authentically "no-frills". Kishore Biyani never hired any foreign consultant for Big Bazaar which is evident from Indian-specific personality of the brand. The brand's personality is self-explanatory by its tag-line only. This statement places Big Bazaar at the top of customer's mind. It reflects that entrepreneurship and simplicity are the essence of character of Big Bazaar. To use predatory pricing is not in the personality of Big Bazaar, they never sell goods below the price they have purchased it. Big Bazaar, the "Indian Wal-Mart", is the modern Indian family's favorite store. Big Bazaar symbolizes modern retail, the business which isn't looked up to in our country, is now in the eyes of many multi-national biggies. Big Bazaar has shown a robust growth in recent years (. Demerits of Marketing a Commodity Market Brands evolve from ‘unbranded commodities' to references, where the name is used for identification. This is also evident from the Goodyear's (1996) chronological brand categorization There is lack of differentiation if marketing of commodity is done. Commodities and differentiated products are the two ends of the product spectrum. Each unit of a commodity is exactly like every other unit. A product is a commodity when all units of production are identical, regardless of who produces them. Commodities tend to be raw materials like corn, wheat, copper, crude oil, etc. The stone marble is mined and sold by many companies in
Rajasthan; it's like an unbranded commodity, where each producer is selling identical product. People that produce commodities are referred to as "price-takers". This means that an individual producer has no control over his/her price. On the other hand, people who are owners of brands or differentiated products are "price-makers". Producer of a differentiated product creates a separate market for his/her individual product. Value of Branding Branding plays a crucial role for all the products and services. A successful brand is an identifiable product or service, and buyers or users perceive values in it which matches their needs. There are certain advantages of branding. They are: -
Product dies but a good brand never dies: The first car T-model is no more but the brand 'FORD' is still alive. 'Pears' soap that was launched somewhere in the end of 1800 is still alive although they have changed the product. Even they are looking for line extension but basic brand names are the same. Sales or market share: A brand generates familiarity and trust, and hence, leads to greater sales. Branded products have an edge over unbranded products. Premium price: Brands generate trust, a brand manager can charge extra price and people pay for that trust. Differentiation: Creating a brand is nothing but creating a strong association. This association clearly differentiates the branded product from the rest.
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According to brand evolution model developed by Kunde (2000) (as the value of brand becomes stronger and more relevant to customers, the brand becomes more involving, and thus, managers need to make their brand values more relevant to increase customer's involvement. This is explained by religion model also. The model distinguishes 5 types of brands: • • • • •
Product Brand: Products without any form of added value connected to the generic element. Concept Brand: Brands that are driven by emotional values - as opposed to product characteristics. Corporate Concept Brand: Brands that merge with the company and present themselves in a sustained and consistent way. Brand Culture Brand: Brands that are so strong that they - in the eyes of the consumer - have become equated with the function they represent. Brand Religion Brand: The ultimate brand position is that of brands that - in the eyes of the consumer - have become a "must", a faith to which they profess.
Big Bazaar: Positioning & Establishment
Big Bazaar has established itself in the first quadrant of Organization Value and Customer Value Matrix (Exhibit 5). The SWOT Analysis (Exhibit 6) of current strategy of Big Bazaar elaborates the core competencies and areas of improvement. The key features that have shaped in establishing of brand includes: •
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Big Bazaar ensures that no other kirana store / departmental store are offering considerable discount compared to its own price. This helped Big Bazaar in being the "value for money" store. Big Bazaar scores high on product mix as compared to kirana store. Cheap and local products are heavily stocked in Big Bazaar which make it easier to attract lower middle class category of customers. Promotion of kirana is rare event but Big Bazaar used this channel efficiently to establish itself as national brand.
Customer loyalty resulting in high up sell, i.e., selling to existing customers. Big Bazaar refrains from high-end locations for business which reduces its rental budget and provides competitive advantage over competitors. Kishore Biyani has taken "early movers advantage" in many retail spaces.
[removed][removed] [removed][removed] [removed]// <! [CDATA[ google_protectAndRun("ads_core.google_render_ad", google_handleError, google_render_ad); // ]]>[removed] 7P Analysis of Big Bazaar 7P Marketing Mix is more useful for services industries and knowledge intensive industries. Successful marketing depends on number of key issues. The seven keys issues are explained as: Product Big Bazaar offers a wide range of products which range from apparels, food, farm products, furniture, child care, toys, etc. . Products of all the major brands are available at Big Bazaar .Also, there are many in house brands promoted by Big Bazaar. Big Bazaar sold over 300,000 pairs of jeans, 50,000 DVD-players and 25,000 microwave-ovens. In all, the fashion, electronics and travel segments made up about 70% of sales. Last year, these categories made up only about 60%. Price The tag-line is "Is se sasta aur accha aur kahin nahi". They work on the model of economics of scale. There pricing objective is to get "Maximum Market Share". The various techniques used at Big Bazaar are: •
Value Pricing (EDLP - Every Day Low Pricing): Big Bazaar promises consumers the lowest available price without coupon clipping, waiting for discount promotions, or comparison shopping.
Promotional Pricing: Big Bazaar offers financing at low interest rate. The concept of psychological discounting (Rs. 99, Rs. 49, etc.) is used as promotional tool. Big Bazaar also caters on Special Event Pricing (Close to Diwali, Gudi Padva, and Durga Pooja). Differentiated Pricing: Time pricing, i.e., difference in rate based on peak and nonpeak hours or days of shopping is also a pricing technique used in Indian retail, which is aggressively used by Big Bazaar. Bundling: Selling combo-packs and offering discount to customers. The combopacks add value to customer.
Big Bazaar stores are located in 50 cities with 75 outlets.Big Bazaar has presence in almost all the major Indian cities. They are aggressive on their expansion plans.
Promotion Big Bazaar started many new and innovative cross-sell and up-sell strategies in Indian retail market. The various promotion techniques used at Big Bazaar include "saal ke sabse saste teen din", Future Card (the card offers 3% discount), Shakti Card,
Brand Endorsement by M. S. Dhoni, Exchange Offer - ‘Junk Swap Offer', Point-of-Purchase Promotions. Advertising has played a crucial role in building of the brand. Big Bazaar advertisements are seen in print media, TV, Radio (FM) and road-side bill-boards. People They are one of the key assets for any organization. The salient features of staff of Big Bazaar are: • • • • • •
Well-trained staff, the staff employed by Big-Bazaar are well-suited for modern retail. Well-dressed staff improves the overall appearance of store. Employees are motivated to think out-of-the-box. Retail sector is in growth stage, so staff is empowered to take innovative steps. Employs close to 10,000 people and recruits nearly 500 people every month. Use of technology like scenario planning for decision making. Multiple counters for payment, staff at store to keep baggage and security guards at every gate, makes for a customer-friendly atmosphere.
Process The goods' dispatch and purchasing area has certain salient features which include: •
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.
Physical Evidence It deals with the final deliverable or the display of written facts. This includes the current system and available facilities. Big Bazaar: Brand Extensions Actually Made & Future Possibilities Future Group is planning to split Big Bazaar into two entities. One will be front-end consumer-oriented entity and other will be for back-end operations. Back-end entity may enter into joint venture with leading international cash and carry retailers. Foreign partners like Carrefour, Metro, Costco, etc., are in the race, and their role will be to improve efficiency in sourcing and logistics, which will help drive down prices and boost margins. The front-end operations will be further divided in three categories, Big Bazaar Express with store area less than 40,000 sq. ft., Standard Big Bazaar with store area between 40,000 to 75,000 sq. ft., and Big Bazaar Supercentres with store area more than 75,000 sq. ft. . Future Group is also planning to distribute financial products like consumer loans and insurance through Big Bazaar outlets.
Consumer Insights & Perceptions Big Bazaar is based on 3-C theory of Kishore Biyani. The 3-C symbolize Change, Confidence and Consumption, and according to this theory, "Change and confidence is leading to rise in Consumption". They divided Indian customers in three categories: [removed][removed] [removed][removed] [removed]// <! [CDATA[ google_protectAndRun("ads_core.google_render_ad", google_handleError, google_render_ad); // ]]>[removed] India One
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Consuming class, constitutes only 14% of Indian population. They are upper middle class and most of customers have substantial disposable income. Initial focus of Big Bazaar.
Serving class which includes people like drivers, house-hold helps, office peons, washer-men, etc. For every India One, there are at least India Two and have around 55% of Indian population.
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Struggling class, remaining population of India. Cannot afford to inspire for better living, have hand-to-mouth existence. Needs cannot be addressed by current business models.
The potential customers of Big Bazaar are India One and India Two. The customer insights were developed by close observation of the target set. The insights that came out were: • • • •
The clean and shiny environment of modern retail stores creates the perception that such store are too expensive and exclusive, and are not meant for India Two. India Two finds moves and find a lot of comfort in crowds, they are not individualistic. They prefer to be in queues. Indian-ness is not about swadeshi, it's about believing in Indian ways of doing things. Indian customers prefer to purchase grains, grams, etc., after touching them, so it's better not to sell in polythene packs. Big Bazaar has counters where you can touch wheat, rice, sugar, etc., before purchasing. Advertisements about schemes and offers through local newspapers, radio in local languages, inspires customer more than the traditional ways. The guards, salesman at the Big Bazaar outlets should not look smarter than customer, so they prefer not to have tie, etc., in their uniform. Hypermarkets in India should be situated in city unlike western countries where they are located away from city.
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Purchased bags / goods should be sealed at check-out as customer can enter and exit multiple times. For Indians, shopping is an entertainment; they come in groups, with families so Big Bazaar should offer something for every section of family. That also led separate section for clothes, vegetables, food, etc., that is multiple clusters within a bazaar.
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Developed a diversity tracing cell to cater local patterns, demands, festivals, as every region of customers has unique demands.
Advertising: The Essential of Brand Building Process Advertising is an essential component of brand building. The advertisement and brand building is done through various ways, the techniques used are: Tag-line: Big Bazaar tag-lines are the key components of advertising. These tag-lines are modified according to demographic profile of customers. These catch-phrases appeared on hoardings and newspapers in every city where Big Bazaar was launched. Everybody
understood and connected easily with these simple one-liners. The catch-liners include "Hindi - Chane ke bhaw kaaju", "Bengali - Rui er dame illish", "Hindi - Stall ke bhaw balcony", etc. Print Ads: Big Bazaar newspaper advertisements are present just before launch of any new scheme. This creates aura about the Big Bazaar brand in the minds of customers. TV Ads: Kishore Biyani spends a lot of money in brand building exercise. Big Bazaar commercials are shown on various channels in India. Presently, [email protected]
Bazaar commercial is aired. Road-side Advertisements: Big Bazaar bill-boards are displayed on prime locations in various cities as a brand building exercise. They display the catch-phrases now-a-days. Radio Ads: This 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 at Big Bazaar. Fashion Shows: "FASHION @ BIG BAZAAR - Desh Badla, Bhesh Badlo" is the latest invention of the Indian iconic brand. In an effort to take the Fashion to the masses, Big Bazaar, the flagship hypermarket brand of retail chain of Future Group, organized a three-day Fashion Show on the streets of Bandra, Mumbai. Brand Endorsement by Celebrity: Big Bazaar is always associated with celebrities for advertising and marketing of its brand name. The current campaign is starred by Brand Ambassador and Indian Cricket ODI Captain Mahendra Singh Dhoni. Earlier Himesh Reshammiya and Sanath Jaisuriya were associated with Big Bazaar. Factors that Shaped Big Bazaar During its Life Cycle The Big Bazaar brand name is in its growth stage Pantaloon Group faced various small and large scales troubles in the introductory stage of the brand.
Present years are the high growth years in retail sphere as market has high potential to sustain growth. The sales are increasing, more and more firms are coming to market, foreign players are entering into retail sector, and pie of organized retail is increasing in retail sector.
The factors that shaped the brand during its life cycle are: •
Influence of Sarvana Stores Located in Theyagraya Nagar, Chennai Many people think that Big Bazaar was inspired by Wall-Mart but the truth is that Kishore Biyani and his team members are neither inspired by US ways of doing retailing nor they have been to US much. The credit for foundation and inspiration goes to Saravana Store, a family-run 25-years-old store, whose philosophy was - low
margin, high turnover. In that store, food, groceries, clothes, everything had a separate section. It had around 120 people just to manage crowd. The single shop was doing business of more than INR 200 Crore per year. This shop was the template for Big Bazaar. Observing Customers Regularly Regular customer feedback is also an influential factor for the success of Big Bazaar. The Big Bazaar has a separate team that looks for customer's purchasing pattern and how they like or dislike products, how they approach particular products. For example, unlike other stores where the most expensive and catchy item is placed at the front display, Big Bazaar places the "Value for Money" items at check-out points. Imbibed Entrepreneurial Spirit in Organization Decision making power is given to every level of employees at Big Bazaar. Kishore Biyani has given risk-taking power, which led to exposure of entrepreneurial spirit in every employee. Everybody in Big Bazaar operates with speed and confidence when it comes to decision making. Building on Core Values Core values of Indian-ness, valuing and nurturing relationships, and simplicity shaped the brand. Kishore Biyani always believes in long-term relationships, with customers, suppliers and employees. Once thinking about offering gifts to employees close to Diwali, Kishore Biyani suggested giving them wall-paints to keep their house clean. The paint is used in Indian culture to keep house clean and brings freshness. The motive behind this was to keep everything clean and bring freshness in organization.
Strategic Decisions Taken to Build the Big Bazaar Brand The strategic decisions that lead to building of Big Bazaar were: -
Real Estate Game For a retailer, location is one of the most important things. According to Kishore Biyani, real estate cost should be less than 5% of total sales of store in order to provide maximum benefits to customer.
The strategic decisions to secure spaces before other retailers join in have resulted in costsaving. Also, it has created early presence in market. [removed][removed] [removed][removed] [removed]// <! [CDATA[ google_protectAndRun("ads_core.google_render_ad", google_handleError, google_render_ad); // ]]>[removed] Nurturing Relationships
Kishore Biyani follows strategy to develop trust and nurture relationships with suppliers. This trust led to strategically correct decisions most of the time. Whoever works with Future Group, either leaves in initial deals or continues forever. Use of Technology, Scenario-Planning & Story-Telling Big Bazaar planning and design used advance technologies like scenario-planning and storytelling. These techniques were mainly used for store-design layout, store-location selection. The strategy to use user-focused, prototype-based development tool made the brand adapt to the fast-changing external environment. Design Management Design-led thinking helped Big Bazaar to achieve ‘customer-first' objective and ultimately led to better financial performance. Big Bazaar strategy to focus on design led to creation of Idiom, an independent design and consultancy firm, based in Bangalore. They are one of the few organizations in India having economists, ethnographers and sociologists working across various teams as a part of Design Management team. Back-end Operations, Supply Chain Harvard Business School just did a case study on Pantaloons' Supply Chain and it says that Pantaloons' is the most cost-effective supply chain in the world. India may not have a modern supply chain but it definitely has a cost-effective one. Retailers have made use of the existing supply chain. References
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· Buyer Behavior: http://buyerbehaviour.blogspot.com/2008/01/big-bazaar-freedomsale-change-in.html · Indian Retail Scenario: http://www.slideshare.net/theRedIndian/india-retail-2008big-bazaar-scenario/ · Wikipedia: www.wikipedia.org "IT Happened in India" by Inshore Biyani
Executive Summary Indian retail sector is witnessing one of the most hectic Marketing activities of all times. The companies are fighting to win the hearts of customer who is God said by the business tycoons. There is always a ‘first mover advantage’ in an upcoming sector. In India, that advantage goes to “BIG BAZAAR”. It has brought about many changes in the buying habits of people. It has created formats, which provide all items under one roof at low rates, or so it claims. In this project, we will study its marketing strategies and promotional activities. The research titled ‘A Study on the effective promotional strategy which influences customer to purchase a product of Big Bazaar’ helps us to understand the effect of promotional strategy which is responsible for attracting customer towards big bazaar This study helpful to top level management to improve the present promotional strategy of BIG BAZAAR. The report deals with the impact of promotional activity which attracting customer towards big bazaar. The research was carried out as per the steps of Marketing Research. The well supportive objectives were set for the study. To meet the objectives primary research was undertaken. The data collection approach adopted was experimental research & survey research. The instrument used for the data collection was observation & questionnaire. The target respondents were the visitors of BIG BAZAAR, with the sample size of 90 for the study of sales management of the company. Tables & charts were used to translate responses into meaningful information to get the most out of the collected data. Based on those the inferences have been drawn with peer supportive data.
Objectives: To know the effective promotional strategy which influence customer to purchase a product of Big Bazaar. Sub-objectives: 1. 2. To know the promotional strategy of big bazaar How Big Bazaar Establish and maintain the in retailing through promotion
Big 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.
And they also concentrate on T V advertisement they should show ads and
promotional offers in a regular interval in three languages like Kannada Hindi English.
Hoarding should be placed uncovered area.
The study was restricted to only the customers of BIG BAZAAR, Gurgaon. The time constant was a limiting factor, as more time required carrying out The result and analysis based on the customer survey method and small Findings are related to particular areas
study on other aspects of the topic.
sample size has taken only 90
Conclusion: Indian retail sector is witnessing one of the most hectic Marketing activities of all times. The companies are fighting to win the hearts of customer who is God said by the business
tycoons. There is always a ‘first mover advantage’ in an upcoming sector. In India, that advantage goes to “BIG BAZAAR”. It has brought about many changes in the buying habits of people. It has created formats, which provide all items less than one roof at low rates. The consumer’s preferences are changing & they are moving from Traditional Kirana stores to Modern Retail outlet. It’s 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 carry out the promotional activities in unique way. BIG BAZAAR has maintained that uniqueness & has succeeded in attracting customers. The promotional activity of the company, which famous as Less Price than others as it says ‘Nobody Sells Cheaper and Better!’ is made its place in minds of customer. As the competition is becoming stiff in the market the activities conducted by the company are unique, that have brought fruitful result to the company. Among them sales Promotions is one of the leading activity or unique among all other activities & has high influence on the customer walk-in.