Marketing Strategy Of Big Bazaar

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Executive Summary

Marketing strategy is the comprehensive plan formulated particularly for achieving the
marketing objectives of the organization. It provides a blueprint for attaining these
marketing objectives. It is the building block of a marketing plan. It is designed after
detailed marketing research. A marketing strategy helps an organization to concentrate it’s
scarce resources on the best possible opportunities so as to increase the sales.

Big Bazaar is an Indian retail chain of hypermarkets, discount department stores, and
grocery stores. The retail chain was founded by Kishore Biyani under his parent
organization Future Group, which is known for having a significant prominence in Indian
retail and fashion sectors.

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 INTRODUCTION

Marketing Strategy

An organization's strategy that combines all of its marketing goals into one comprehensive
plan. A good marketing strategy should be drawn from market research and focus on the
right product mix in order to achieve the maximum profit potential and sustain the business.
The marketing strategy is the foundation of a marketing plan.

Marketing strategy provides an organization an edge over it’s competitors. Strategy helps in
developing goods and services with best profit making potential. Marketing strategy helps in
discovering the areas affected by organizational growth and thereby helps in creating an
organizational plan to cater to the customer needs. It helps in fixing the right price for
organization’s goods and services based on information collected by market research.
Strategy ensures effective departmental co-ordination. It helps an organization to make
optimum utilization of its resources so as to provide a sales message to it’s target market.

A marketing strategy helps to fix the advertising budget in advance, and it also develops a
method which determines the scope of the plan, i.e., it determines the revenue generated by
the advertising plan. In short, a marketing strategy clearly explains how an organization
reaches it’s predetermined objectives.

OBJECTIVES OF THE STUDY

 To understand the marketing strategy of Big Bazaar.

 To analyze how well the company’s marketing strategies attract customers.
 To understand the expectations and requirements of customers.
 To understand how Big Bazaar convert consumers into customers.

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SCOPE OF THE STUDY

Most business people agree that good planning is essential for business success. A
marketing plan is a detailed roadmap that outlines all your marketing strategies, tactics,
activities, costs and projected results over a period of time. The plan keeps your entire team
focused on specific goals - it's a critical resource for your entire company. It takes time to
develop a marketing plan. This study is moreover focused towards the marketing strategy of
big bazaar and the study is being confined to last 10 years.

Phases of Strategic Management:-

Strategic management is not a static concept, but an ongoing process. The strategic
management process encompasses four distinct phases. In order to succeed, a strategy must
succeed in each phase. h is important, therefore, that anyone planning a business strategy
understands these four phases and the roles that they play.

1. Formulation: Strategic management begins with the formulation phase, where the firm's
management develops an overall strategy for achieving the firm's objectives. Objectives
may include, for example, in using market share or reducing costs.

The top management team typically is saddled with the responsibility of developing the
firm's overall strategy. They may, however, seek the input of line managers and front-line
workers as they develop their strategy.

2. Implementation - With a clear strategy formulated, managers can then go about

implementing it. Strategies are usually implemented from the top down. To begin with, the
top management team will inform line managers about the strategic changes, and line
managers will, in turn pass this information on to their subordinates. Many strategies fail
due to poor implementation, but managers can avoid this by carefully introducing the new
strategy and listening to my employee concerns about the changes.

3. Evaluation- When a strategy is implemented, it will hopefully le successful but managers

cannot assume that every strategy will be. They will therefore, need to measure the success
of a strategy. To measure this success, the strategy must be evaluated against the firm's

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goals. A gap analysis is a useful tool for evaluating the success of a strategy. This measures
the gap that exists between the desired results and a firm's actual results.

4. Modification- Sometimes, strategies are successful on the first attempt but more often
than not, there is room for improvement. If the evaluation of the strategy shows that the firm
has not achieved all its desired goals, then it is necessary to modify the strategy. For
example, if the firm uses a cost-leadership strategy to increase sales, but the sales actually
decreased then the firm would need to modify this strategy.

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METHODOLOGY OF THE STUDY

 Observing the marketing mix adopted by the company.

 Preparing a questionnaire and distributing it to the customers of Big Bazaar and
knowing their responses.
 Analyzing the responses received by questionnaire method.
 The study is based on secondary data as well as primary data, which have been
collected from different journals, papers, bulletins, magazines, annual reports and
through internet also.
 The data is being analyzed with the help of important statistical techniques.
Primary Data:
Primary Data was collected from the feedback of the Big Bazaar with the help of
questionnaire.

Secondary Data:
Secondary Data was collected from the news papers,magzines and internet.

LIMITATION OF THE STUDY

 The study is based on a questionnaire method by including 50 people

 The study has been conducted within the boundaries of a particular branch of big
bazaar
 The study has not been related to any other supermarkets.

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COMPANY PROFILE

BIG BAZAAR

Parent Group Future Group

Owner Kishore Biyani (CEO)
Founded 2001
Headquarter Jogeshwari, Mumbai
Industry Retail

Big Bazaar is an Indian retail store that operates as a chain of hypermarkets, discount
department stores, and grocery stores. The retail chain was founded by Kishore
Biyani under his parent organization Future Group, which is known for having a significant
prominence in Indian retail and fashion sectors. Big Bazaar is also the parent chain of Food
Bazaar, Fashion at Big Bazaar (abbreviated as fbb) and eZone where at locations it houses
all under one roof, while it is sister chain of retail outlets like Brand Factory, Home Town,
Central, eZone, etc.

Founded in 2001,[3] Big Bazaar is one of the oldest[4] and largest hypermarkets chain[5][6] of
India, housing about 250+ stores in over 120 cities and towns across the country. BIG
BAZAAR is a public type of retailing industry Founded in 2001 Headquarters in Mumbai
Maharashtra, India Product :- Hypermarket Revenue :-11000 crore (US$1.7 billion) cores
(in 2012) (Big Bazaar and Food Bazaar combined) Employees :- 36000 people Parent.

Big bazaar is a chain of shopping malls in India. Big bazaar offers a wide range of
merchandise including fashion and apparels, food products, general merchandise, furniture,
electronics, books, fast food and leisure and entertainment sections

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Food Bazaar, a supermarket format was incorporated within Big bazaar in 2002 and is now
present within every Big Bazaar as well as in independent locations.

A typical Big Bazaar is spread across around 50000 sq. feet of retail space. While the larger
metropolises have Big Bazaar family centers measuring between 75000 sq. feet and 160000
sq. feet. Big bazaar express stores in smaller towns measure around 30000 sq. feet. Led by
its flagship enterprise, Pantaloon Retail, the group operates over 12 million square feet of
retail space in 71 cities and towns and 65 rural locations across India. Headquartered in
Mumbai (Bombay), Pantaloon Retail employs around 30,000 people and is listed on the
Indian stock exchanges. The company follows a multi-format retail strategy that captures
almost the entire consumption basket of Indian customers. In the lifestyle segment, the
group operates Pantaloons, a fashion retail chain and Central, a chain of seamless malls. In
the value segment, its marquee brand, Big Bazaar is a hypermarket format that combines the
look, touch and feel of Indian bazaars with the choice and convenience of modern retail.

In 2008, Big Bazaar opened its 100th store, marking the fastest ever organic expansion of a
hypermarket. The first set of Big Bazaar stores opened in 2001 in Kolkata, Hyderabad and
Bangalore. The group’s specialty retail formats include, books and music chain, Depot,
sportswear retailer, Planet Sports, electronics retailer, eZone, home improvement chain,
Home Town and rural retail chain, Aadhaar, among others. It also operates popular
shopping portal.

Future Capital Holdings, the group’s financial arm provides investment advisory to assets
worth over $1 billion that are being invested in consumer brands and companies, real estate,
hotels and logistics. It also operates a consumer finance arm with branches in 150 locations.

The central objective for earlier businesses of Big Bazaar w was to bring in stability
and consolidation. They were built to enforce order. However, in the new era where
nothing remains constant, the dominant theme for businesses needs to be speed and
imagination. The new macro-differentiator can be design. Design is helping
companies to sell differentiated experiences and solutions that connect with the
consumer’s emotions. It’s no longer about selling products and services alone. Nor is
it just about completing transactions. Every time a customer walks in, it is an
opportunity to build a relationship and invite the customer to become a part of the

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transformational scenario. Design management is helping us position the customer at
the center of every decision we take and also operate with true entrepreneurial spirit.

The large and growing young working population is a preferred customer segment for Big
bazaar. These young people are early adopters of most modern product lines. The ongoing
boom in sectors such as information technology and business process outsourcing has
created a clientele with high disposable income and a increased demand for lifestyle
merchandise such as watches, cosmetics and perfumes. This is a much-travelled and brand-
savvy urban population. Interestingly, an estimated 40-50% of the Indian working woman’s
salary is spent on apparel and footwear. Eating out, mobile phones and accessories make up
the other leading spending options. Big Bazaar specifically target young, working
professionals, home makers who are primary decision maker.

MISSION & VISION OF BIG BAZAAR

1. Future Group shall deliver everything, everywhere, every time for every Indian
Consumer in the most profitable manner.
2. We share the vision and belief that our customers and stakeholders shall be served only
by creating and executing future scenarios in the consumption space leading to
economic development
3. Big Bazaar target to upper middle class and higher customers.
4. The large and growing young working population is a preferred customer segment.
5. Big Bazaar specially target working women and home maker who are the primary
decision maker.

MARKETING MIX OF BIG BAZAAR:

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  Product:- Big Bazaar offers a wide range of products which range from apparels,
food farm products, furniture, child care, toys, etc. of various brands like Levis.
Allen SollyPepsi. Coca-Cola, HUL ITC, P&G, LG, Samsung, Nokia, HP ete. Big
Bazaar also promotes a number of in house brands like:
1. DJ & C
2 Tasty Treat
3. Clean Mate
4. Sensei
5Care Mate

 Pricing; The pricing objective at Big Bazaar is to get Maximum Market Share"

Pricing at Big Bazaar is based on the following techniques:

1. 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.

2.Promotional Pricing Big Bazaar offers financing t low interest rate. The concept of
psychological discounting (Rs.99, Rs 49, etc) is also used to attract customers. Big Bazaar
also caters on Special Event Pricing Close to Diwali, Gudi Padva and Durga Pooja

3. Differentiated Pricing. Differentiated pricing i.e., difference in Rome based on peak and
non-peak hours or days of shopping is ace a pricing technique used in Indian retail, which is
aggressively used by Big Bazaar. For example, Wednesday Bazaar

 Place; The Big Bazaar stores are operational cross three formats-hypermarkets
spread over 40000450 XX0 sq.ft. the Express format over 15.000-20.000 sq.ft. and
the Super Centers set up over 1 lakh sq.ft. Currently Big Bazaar open areas in over
34 cities and towns across India with 116 stores Apart from the meets these stores
are also doing well in the all 1l cities These stores are normally located in high
traffic areas Big Bazaar is at start stoves in developing areas to take an early

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 advantage before the real estate value homes. Mr Biyani is planning to invest annual
Rs.350 cores over the next one year expansion of Big Bazaar

 Promotion: The various promotion schemes used at Big Bazaar include-

1. Saal ke sabse saste 3 din

2 Hafte ka sabse sasta din "Wednesday bazaar’’

3. Exchange Offers Junk we offer

4. Future card 3% discount

5. Shakti card

6.Advertisement

7. Brand endorsement by MS Dhoni

 People

1.Well trained staff at stores to help people with their purchases.

2 Employ close to 10,000 people and employ around 500 more per month.

3. Well -dressed staff improves the overall appearance of store.

4. Use scenario planning as a tool for quick 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: Big Bazaar places a lot of importance on the process right from the
purchase to the delivery of goods. When customers enter the stores they can add
the products they which to purchase in their trolley from the racks. There are
multiple counters where bill can be generated for purchases made. Big Bazaar
also provides delivery of products over purchases of Rs.1000.

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  Physical Evidence:- Products in Big Bazaar are properly stacked in appropriate
racks. There are different departments in the store which display similar kind of
products. Throughout the store there are boards/written displays put up which
help in identifying the location of a product. Moreover boards are put up above
the products which give information about the products its price and offers. Big
Bazaar stores are normally ‘Ushaped ‘and well planned & designed.

STRATEGIES OF BIG BAZAAR TO SATISFY AND ATTRACT CUSTOMERS:

1. Wednesday Bazaar- Big Bazaar introduced the Wednesday Bazaar concept and
promoted it is "Hafte Ka Sabse Sasta Din" It was mainly to draw customers to the
stores on Wednesdays, when least number of customers are observed According to the
chain, the aim of the concept is "to give homemakers the power to save the most and
even the stores in the city don a fresh look to make customers feel that it is their day.
2Sabse Sasta Din- With a desire to achieve sales of Rs.26 cores in a one single day.
Big Bazaar introduced the concept of "Sabse Sasta Din" The idea was to simply create
a day in a year that truly belonged to Big Bazaar. This was launched on January 26,
2006. And the result was exceptional that police had to come in to control the
mammoth crowd.

3. Maha Bharat:- Maha Bharat was started off in 2006 as a single day campaign with
attractive promotional offers across all Big Bazaar stores. Over the years has grown
into a 6 days bi-annual campaign. It has attractive offers in all its value formats such as
Big Bazaar Food Bazaar Electronic Bazaar and Furniture Bazaar - catering to the entire
needs of a consumer.

4.The Great Exchange Offer:. On February 12, 2009 Big Bazaar launched The Great
Exchange Offer. through which the customers can exchange the old goods in for Big
Bazaar coupons Later consumers can redeem the coupons for brand-new goods across
the nation.
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 Questionnaire

1. Name

2. Gender
Male
Female
Other

3. How frequently do you visit big bazaar

Twice in a week

Once in a week

During special offers

Whenever the need arises

4. Are you happy with the location of big bazaar

Yes

No

5. Does the Wednesday sale really affects your purchasing style

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Agree

Strongly agree

Disagree

Not really

6. Which media influence you to buy from big bazaar?

Hoardings

Newspapers

Television

Brochures

7. How is the customer assistance in big bazaar?

Good

Satisfied

Average

Any other

6. What is your satisfaction level rate about “services” provided by Big bazaar
7. Hghly satisfied

Satisfied

Neutral

Not satisfied at all

8. Do you think that the service of discount offered by big bazaar attracts you for
impulsive buying?

Yes
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No

9. Do you feel that the goods sold in big bazaar are relatively more costly than that of
other malls?

Yes

No

10. Rank the following features that encourage your purchase in bigbazaar on a scale
of 1-10

Quality goods

Price

Promotional tools used

Location

Facilities

Good brand

Ambience

Convenience

11. What is your overall satisfaction level rate about services of big bazaar?

Highly satisfied

Satisfied

Neutral

Dissatisfied

12. Which promotional offers do you expect from big bazaar in the near future?
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Discount offer

Coupons

Free gifts

Credit card discount

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