INTRODUCTION TO BIG BAZAAR

It is a chain of shopping malls in India currently with 31 outlet owned by Kishore

Biyanis Pantaloon Group. Big bazaar is not just another hypermarket, but also provides the best
products at the best price. It Reflect the look and feel of Indian bazaars at their modern outlets.
All over India, Big Bazaar attracts a few thousand customers on any regular day. Big Bazaar is a
chain of department stores in India, currently with 92 stores. It is owned by the Pantaloon Retail
India Ltd, Future Group. It has considerable success in many Indian cities and small towns.
A department store is a retail establishment which specializes in selling a wide range of
products without a single predominant merchandise line.

Department stores usually sells

products including apparel, furniture, appliances, electronics, and additionally select other lines
of products such as paint, hardware, toiletries, cosmetics, photographic equipment, jewelery,
toys, and sporting goods.
The idea was pioneered by entrepreneur Kishore Biyani, the CEO of Future Group.
Currently Big Bazaar stores are located only in India. It is the biggest and the fastest growing
chain of department store and aims to have 150 outlets by June 2015 and 350 stores by the end
of year 2016.

THE BIG BAZAAR PROMISE

1. MANUFACTURERS WARRANTIES ON ALL PRODUCTS:

Big Bazaar promises to sell only the original products from the authorized
dealers; so that all applicable products carry the original manufacturers warranty. To
service any product purchased at Big Bazaar, customer can visit the authorized service
centre of the manufacturer. The invoice accompanying the product is the warranty
document.
2. GUARANTEED DELIVERY:
Big Bazaar guarantees to deliver the exact product that has selected, without defects.
In case of receiving a different product, or if the product is damaged in transit, the customer
should contact it within the stipulated time period and Big Bazaar will ensure that it is replaced
or refunded.
3. SECURE PAYMENT:
It commits to ensure that no payment misuse happens, so we work with banks
and payment gateways to ensure that your information is protected.

Payments are

protected both by it and by the policies of customers bank, and the chances of fraud in
these channels are actually very low. Big Bazaar openly publishes its office addresses
and is part of Indias largest retail company with a presence all over India so you know
how to contact us in person, if required.

4. OUR SIMPLE 15-DAY RETURN POLICY:

If customer has purchased something at Future Bazaar and the product did not meet its
expectations or does not fit to his needs, then it can return the product to us; no questions asked,
as long as it is in its original packaging and accompanied by its invoice. We will even make the
return process simple for you just contact our customer support and well arrange to pick up
the product from your home. Alternately, you can drop it off at the nearest Big Bazaar.
5. PROMPT CUSTOMER SUPPORT:
Our customer support is manned by dedicated call centre personnel, who can take
decisions and resolve your problems. They are eager to solve your problems and are aware of
the processes and means to handle them. In case they cannot solve the problem at their end,
they will trigger the required action on your behalf or advise you the best possible method to a
successful fulfillment of all your queries/issues. Be assured that when you call us, your call is
being taken seriously.
BIG BAZAAR PROMISES-------

PORTFOLIO MANAGEMENT
The Future Group has built a strong portfolio of some of the fastest growing
consumer brands in India. This activity is led through Future Brands India Limited, a
specialized subsidiary company that was set up to create and build powerful brands that
address the aspirations of the new Indian consumer.
Some of the key brands in this portfolio include, John Miller, Lombard, Bare,
DJ&C, Buffalo and RIG in the fashion and apparel space. Dream line, present in the
home segment, offers a wide range of products in kitchenware, bed & bath linen, and
Home Dcor categories.

ETMLOSDNAGRPBU-I

In the food and home care segment brands include Tasty Treat, Premium
Harvest, Fresh & Pure, Care Mate and Clean Mate.

In consumer durables and electronics space, the groups brands include Koryo
and Sensei.

PRODUCT LINE

Here, one finds over 170,000 products under one roof that cater to every need
of a family, making Big Bazaar Indias favorite shopping destination. Where Big Bazaar
scores over other stores is its value for money proposition for the Indian customers. Big
Bazaar, one finds a huge variety of products to select from with a good price and quality.
With the ever increasing array of private labels, it has opened the doors into the world of
fashion and general merchandise including home furnishings, utensils, crockery, cutlery,
sports goods and much more at surprisingly low prices.
In recent years, Big Bazaar has adopted value pricing in which they win loyal
customers by charging a fairly low price for a high quality offering.

However,

consistent low price for the products is not only the universally desired characteristic.

MARKETING STRATEGY

PROCESS FOLLOWED
Segmentation, targeting, and positioning together comprise a three stage process. We
Determine which kinds of customers exist,
Select which ones we are best off trying to serve,

Implement our segmentation by optimizing our products/services for that segment

and communicating that we have made the choice to distinguish ourselves that
way.

1) SEGMENTATION
Segmentation involves finding out what kinds of consumers with different needs exist. In
the auto market, for example, some consumers demand speed and performance, while
others are much more concerned about roominess and safety. In general, it holds true that
You cant be all things to all people, and experience has demonstrated that firms that
specialize in meeting the needs of one group of consumers over another tend to be more
profitable.

Several different kinds of variables can be used for segmentation: Demographic variables essentially refer to personal statistics such as income,
gender, education, location (rural vs. urban, East vs. West), ethnicity, and family
size. Campbells soup, for instance, has found that Western U.S. consumers on the
average prefer spicier soupsthus, you get a different product in the same cans at
the East and West coasts.

Facing flat sales of guns in the traditional male

dominated market, a manufacturer came out with the Lady Remmington, a more
compact, handier gun more attractive to women. Taking this a step farther, it is
also possible to segment on lifestyle and values.

 Some consumers want to be seen as similar to others, while a different segment

wants to stand apart from the crowd.
Another basis for segmentation is behavior. Some consumers are brand loyal
i.e. they tend to stick with their preferred brands even when a competing one is on
sale. Some consumers are heavy users while others are light users.

For

example, research conducted by the wine industry shows that some 80% of the
product is consumed by 20% of the consumerspresumably a rather intoxicated
group.
One can also segment on benefits sought, essentially bypassing demographic
explanatory variables.

Some consumers, for example, like scented soap (a

segment likely to be attracted to brands such as Irish Spring), while others prefer
the clean feeling of unscented soap (the Ivory segment). Some consumers use
toothpaste primarily to promote oral health, while another segment is more
interested in breathe freshening.

2) TARGETING

1. In the next step, we decide to target one or more segments. Our choice should generally
depend on several factors: First
How well are existing segments served by other manufacturers? It will be more difficult to
appeal to a segment that is already well served than to one whose needs are not currently being
served well.
Secondly
How large is the segment, and how can we expect it to grow?
Thirdly
Do we have strengths as a company that will help us appeal particularly to one group of
consumers?

2. Big Bazaar targets higher and upper middle class customers.

3. The large and growing young working population is a preferred customer segment.
4. Big Bazaar specifically targets working women and home makers who are the primary
decision makers. It is part of Big Bazaars new Guerrilla Marketing Strategy.
5. Guerrilla force is divided into small groups that selectively attack the target at its weak
points. Guerilla marketing is just one of the strategies and surely one can learn a lot from
the ongoing battle, especially people interested in marketing/marketing techniques.

3) POSITIONING

Positioning

involves implementing our targeting. For example, Apple Computer has

chosen to position itself as a maker of user-friendly computers.

4) MARKETING MIX

Main Aspects of Marketing MiX

The easiest way to understand the main aspects of marketing is through its more famous
synonym of "4Ps of Marketing". The classification of four Ps of marketing includes
marketing strategies of product, price, placement and promotion. The following diagram
is helpful in determining the main ingredients of the four Ps in a marketing mix.

PRODUCT:
In simpler terms, product includes all features and combination of goods and related
services that a company offers to its customers.
Product is the most important aspect of marketing mix for two main reasons. First, for
manufacturers, products are the market expression of the company's productive
capabilities and determine its ability to link with consumers. So product policy and
strategy are of prime importance to an enterprise, and product decisions dictate the scope
and direction of company activity. Moreover, the market indicators such as profits, sales,
image, market share, reputation and stature are also dependent on them. Secondly, it is
imperative to realize that the product of any organization is both a component and a

determinant of the marketing mix as it has a great influence on the other elements of the
mix: advertising, personal selling, channels of distribution, physical distribution and
pricing. So without proper product policy, a company can not pursue for further elements
of marketing mix.
PRICING:
Pricing is basically setting a specific price for a product or service offered. In a simplistic
to the concept of price as the amount of money that customers have to pay to obtain the
product. Setting a price is not something simple. Normally it has been taken as a general
law that a low price will attract more customers. It is not a valid argument as customers
do not respond to price alone; they respond to value so a lower price does not necessarily
mean expanded sales if the product is not fulfilling the expectation of the customers
Generally pricing strategy under marketing mix analysis is divided into two parts: price
determination and price administration (ibid).
Price determination is referred to as the processes and activities employed to arrive at a
price for a product including consideration of relative prices of products within the same
line, and differences in price for similar products of differing grades and qualities.
Price administration is referred to as the activities involved in fitting basic prices to
particular sales situations such as geographic locale, functions performed by customers,
position of distribution channel members, or special sales situations.

PLACEMENT:
Placement under marketing mix involves all company activities that make the product
available to the targeted customer while planning placement strategy under marketing
mix analysis, companies consider six different channel decisions including choosing
between direct access to customers or involving middlemen, choosing single or multiple
channels of distributions, the length of the distribution channel, the types of
intermediaries, the numbers of distributors, and which intermediary to use based on the
quality and reputation .
PROMOTION:
Promotional strategies include all means through which a company communicates the
benefits and values of its products and persuades targeted customers to buy them . The
best way to understand promotion is through the concept of the marketing
communication process. Promotion is the company strategy to cater for the marketing
communication process that requires interaction between two or more people or groups,
encompassing senders, messages, media and receivers
Limitation of Marketing Mix Analysis (4Ps of Marketing)

Despite the fact that marketing mix analysis is used as a synonym for the 4Ps of
Marketing, it is criticised on the point that it caters seller's view of market analysis not
customers view. To tackle this criticism, attempted to match 4 Ps of marketing with 4 Cs
of marketing to address consumer views:
Product Customer Solution
Price CustomerCost
Placement Convenience
Promotion Communication

5) RETAIL MIX

1. Merchandise assortment
The company was looking for a solution that would bring all of its businesses and
processes together. After a comprehensive evaluation of different options and software
companies, the management at Pantaloon decided to go in for SAP.
Some of the qualities of SAP retail solutions are that it supports product
development, which includes ideation, trend analysis, and collaboration with partners in
the supply chain; sourcing and procurement, which involves working with manufacturers
to fulfil orders according to strategic merchandising plans and optimise cost, quality, and
speedvariables that must be weighted differently as business needs, buying plans, and
market demand patterns change; managing the supply chain, which involves handling the
logistics of moving finished goods from the source into stores and overseeing global
trade and procurement requirements; selling goods across a variety of channels to
customers, which requires marketing and brand management; managing mark-downs and
capturing customer reactions, analysing data, and using it to optimise the next phase of
the design process.

2. Place
In the channels of distribution, the physical facilities point of location.

3. Price

4. Visual merchandising

Visual merchandising supports:-

Sales
Retail strategies
Communicates with customers
Communicates image
Supports retailing trends.
Visual merchandising includes:1. Interior merchandising
Sufficient visual merchandizing within the store that included danglers, signage,
standees, distribution of pamphlets, which gave details of the offer.
Display, point of purchase, fixture, equipment and furnishings store layout.
Product packaging and labels.
2. Exterior merchandising
TVC on popular entertainment channels like Star Plus, Sony, Set Max, and Star One.
Road shows carried out by the Big Bazaar staff with announcements about the offer to
make people aware.
Newspaper ads in almost all the local dailies like Sakal, The Times of India, on
different days during the period of the offer.

Store atmosphere.

6) RETAIL PROMOTION MIX

1) ADVERTISING
Advertising is recognized as an indispensable tool of promotion. It has acquired a
lot of significance in the national and international markets.

With the advent of

globalization and liberalization its imperativeness in the Indian retail sector has increased
as a result of competitions, latest technologies, and the rapidly changing consumer
lifestyles.
A. Objectives of Advertising:
The fundamental objective of advertising is to sell something a product,
service,or an idea.
The Major Objectives of advertising are:
1. To promote a new product.
2. To warn the public against imitation of the retailers product.
3. To manage competition in the market.
B. Benefits of Advertisements:
1. Advertisement helps in creating awareness among the customer about the existence,
price, and availability of product.
2. Increases the utility of existing products.
3. It educates customer about new product and their diverse

uses.

C. Types of advertising:
1. Informative Advertising:
Purchases of durable products are generally erratic and often too expensive to buy,
so the retailer spends a huge amount

on

informative

advertising.

2. Corporate Advertising:
Its main motive is to build a corporate image. Corporate Advertising builds up
retailer image. It increases goodwill towards

the

retail

organization.

3. Financial Advertising:
It refers to advertisements by various financial institutions. Big Bazaar has also
tied up with ICICI bank, which provide information about the investment opportunities
and the risks and benefits.
4. Classified Advertising:
It refers to messages, which are placed under specific headings and columns in
various magazines and newspapers.

2) PROMOTION:
Promotion can be loosely classified as "above the line" and "below the line"
promotion. The promotional activities carried out through mass media like television,
radio, newspaper etc. is above the line promotion. The terms 'below-the-line' promotion
or communications refers to forms of non-media communication, even non-media
advertising. Below-the-line promotions are becoming increasingly important within the
communications mix of many companies, not only those involved in fmcg products, but
also for industrial goods.

1. BELOW THE LINE SALES PROMOTION

Some of the examples of BTL (below the line) promotions are by exhibitions,
sponsorship activities, public relations and sales promotions like giving freebies with
goods, trade discounts given to dealers and customers, reduced price offers on products,
giving coupons which can be redeemed later etc.
Below the line sales promotions are short-term incentives, largely aimed at
consumers.

With the increasing pressure on the marketing team to achieve

communication objectives more efficiently in a limited budget, there has been a need to
find out more effective and cost efficient ways to communicate with the target markets.
This has led to a shift from the regular media based advertising.
Methods of below the line sales promotion:a. Price promotions
Price promotions are also commonly known as" price discounting". These can be

done

in two ways:1. A discount to the normal selling price of a product, or more of the

product at

thenormal price.

2. Price promotions however can also have a negative

reputation or just a temporary sales

effect by spoiling the brand

boost (during the discounts).

b.Coupons
Coupons are very versatile, way of offering a discount. Following are the examples of the
use of coupons: On a pack to encourage repeat purchase
In coupon books sent out in newspapers allowing customers to redeem the coupon
at a retailer.
A cut-out coupon as part of an advert.
On theback of till receipts.
The key objective with a coupon promotion is to maximize the redemption rate this is
the proportion of customers actually using the coupon. It must be ensured when a
company uses coupons that the retailers must hold sufficient stock to avoid customer
disappointment. Use of coupon promotions is often best for new products or perhaps to
encourage sales of existing products that are slowing down.
c. Gift with purchase
The "gift with purchase" is a very common promotional technique. In this the customer
gets something extra along with the normal good purchased.
d. Competitions and prizes
This is an important tool to increase brand awareness amongst the target consumer. It can
be used to boost up sales for temporary period and ensure usage amongst first time users.

e. Money refunds

Here, a customer receives a money refund after submitting a proof of purchase to the
manufacturer. Customers often view these schemes with some suspicion particularly if
the method of obtaining a refund looks unusual or onerous.

f.Frequent user / loyalty incentives

Repeat purchases may be stimulated by frequent user incentives.
g. Point-of-sale displays
A data collection system that electronically receives and stores bar code information
derived from a sales transaction. This could the zip codes for library users, facilitating
the library in determining geographic market are that users reside in. Most of the big
brands are following the suit of BTL promotion because of rising prices of media based
promotion,advertising clutter and increased impulse purchasing.
BTL promotions are gaining popularity among all big companies nowadays considering
their effectiveness because of the "individual customer promotion" at a price, which is
much lesser than the normal media promotions.
E.g.
Big

Bazaar's `junk' swap

offer

Big Bazaar is launching a promotional offer from Saturday, with the slogan, "Bring
anything old and take something new".
The prices fixed by Big Bazaar are: clothes (Rs 200 per kg), newspaper (Rs 25 per kg),
plastics/utensils/leather goods (Rs. 75 per kg), footwear/luggage (Rs. 100 per kg),
Pet/beer bottles (Rs 15 per kg), tyres (Rs 50 per kg), furniture (Rs 75 per kg) and others
(Rs 20 per kg).

"This offer will help the housewife clean out the junk while getting a good value for it.

3. PERSONAL SELLING:
Persuasive communication between a representative of the company and one or
more prospective customers, designed to influence the person's or group's purchase
decision.

4. PUBLICITY OF PRODUCT:
Publicity non-personal communication in news story form about an organization,
its products or both, that is transmitted through a mass medium at no charge.

5. PUBLIC RELATION:
Public relations the planned and sustained effort to establish and maintain
goodwill and mutual understanding between an organization and its target publics.

6.INTERNAL ATTRIBUTES:
Envelope Something that envelops; a wrapping. A products wrapping affects a
lot on its sale. More customers are attracted if envelope is very attractive.
7. LOGISTICS:
Logistics is the art and science of managing and controlling the flow of goods ,
energy, information and other resources like products, services and people from the
source of production to the marketplace. Its Important to have professional logistical
support logistical.

The operating responsibility of logistics is the geographical

repositioning of raw materials, work in process and finished inventories where required at
the lowest cost possible.
8. SUPPLY CHAIN:
Supply chain, is a coordinated system of organizations, people, activities,
information and resources involved in moving a product or service in physical or virtual
manner from supplier to customer. Supply chain activities transform raw materials and
components into a finished product that is delivered to the end customer.