Marketing Management - 2 Big Bazaar

MARKETING MANAGEMENT - 2
ABIJITH R , AFSAL SAMEER A , BHARANI VIJAYAKUMAR , VISVVESH

INTRODUCTION
:
Type Private
Industry Retail
Founded 2001; 19 years ago
Founder Kishore Biyani
Headquarters Mumbai, India.
295 stores
Number of locations nationwide (August
25, 2019)
Area served India
Sarvesh Shivnath
Shukla (Founder).
Sadashiv Nayak
PRODUCT: PROMOTION:
Maximum variety for every category of product. Big Bazaar has huge promotion budgets. The biggest idea behind all advertisements
Products are same in every store in the city, but the brand options are more in is to make people do bulk shopping. There are 2 types of promotional strategies of
Big Bazaar and the quantity for each product is not limited to large packs big bazaar. One is the advertisement which promotes the brand and creates
only. awareness towards people. It is not targeted at promoting each store but only
The commodities sold by the retail chain includes its "own products" which creates an image of Big Bazaar as low-cost shopping option. The store has
get a ready distribution network. advertised through TV, road shows and also started reality show-typed promotional
The own products of Big Bazaar include My World fashion magazine which is campaign "The Big Bazaar Challenge." Promotions like "Sabse Sasta Din"(Cheapest
not available anywhere else. So costs are very low for such products. 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
lowest possible prices, coupled with attractive promotional schemes. Buy 2 Get 1
Free types of promotions are very common. Original prices are cut down and new
prices are shown, of which customer takes quick notice. There are loyalty schemes
which reward regular clients.
4 Ps OF MARKETING
PLACE: PRICE:
Place means the location of the business. Big Bazaar has always Price is the critical point in a competitive industry. Big Bazaar works on a low
worked on cheap locations. It targets semi-urban population with its cost model. It considers its discounted price as its USP. There is an average discount
placement. Its strategy is to find a low-cost location and it never goes for hot of 6-8% on all items in respect to their MRP. Prices of products are low because it is
spots in the city. It relied on promotional activities to make up for able to secure stock directly from the manufacturer. There are huge synergies in
unattractive locations. Another strategy used by Big Bazaar to overcome terms of bulk purchasing, transportation and central warehousing. These all factors
location disadvantage is use of internet. It has launched a merchandise are very helpful for the retailers to keep low prices.
retailing website www.futurebazaar.com which targets high-end customers
ready to use credit cards. The promotion of this website is done through
advertisement on Google. The website is put as sponsored link.
PRODUCT
MIX:
HOME & PERSONAL FASHION &
APPARELS FOOD PRODUCTS CHILL STATION CARE JEWELLERY
Formal Wear Staples Soft drinks Shampoos Meena Bindre
Denim T- shirts Ready to eat Packaged Juices Detergent Soap Beauty Care
Fabrics and Cut piece Ready to cook Milk Items Liquid Wash Bindre
Accessories Spices Frozen foods Cream Star Parivar
CHILD CARE & ELECTRONICS

TOYS FARM PRODCUT BAZAAR FURNITURE BAZAAR
Kids wear Fruits Home applicances Home Furnitures
Toy Bazaar Vegetables Office appliances Workplace furnitures
Stationery Imported Fruits Small applicances Paintings
Child care Dry Products Kitchen Applicance Decoratives

Major In House Brands Major External Brands
DJ & C Coco - Cola
Clean Mate ITC
KORYO HUL
RENUKA LG
CARE MATE HP
FRESH & PURE P&G

POSITIONING:
High service
Low Price High Price
Low service
FAILURE IN OPERATIONS PRESPECTIVE:
 Expansions in the size of Big Bazaar operations:

These changes must be rolled out nation-wide in long term perspective.
 Private Labels:
Race among the rivalries.
 Developing standards for suppliers:

Lack of knowledge transfer about the standards that are to be followed.
But in short run these will incur loss and provides decreased efficiency. In this current situation it is
not advisable to help their suppliers to meet their standards.
FAI L UR E I N F I NANC I AL
P ER S P EC T I VE :
• Big bazaar is facing losses nearly $80

billion in 2014-2015, four times that of
previous year due to deep discounts.
• 50% company’s total expenditure is

doing business online, expert say it is
much more higher when compared
with competitors.
• Spending more on customer

acquisition and fulfilment cost such
as advertising and delivery- $10-11
billion which also one of the reason
for the failure.
FAILURE IN MARKETING PERSPECTIVE:
• Reason for Big bazaar failure is the direct
lack of differentiation in crowded market as
well as the unique selling proposition.
• Lack of brand awareness and emergence of

Flipkart, Amazon, Snapdeal is also one of
the reason for their failure.
• Big bazaar known for its physicality and

value for money, their absence in direct
market results in poor sales.
STRENGHTS: WEAKNESS:
• Everyday low Prices, which attract • Lack of crowd control in offer days.
customers. • Unable to meet store opening at time.
• Biggest value retail chain in India. • Quality fails.
• Huge Investment Capacity. • Rising real estate cost.
• Online booking and delivery available.
S
SW W
SW
T OT
OT
O
T H R E AT: O P P O RT U NI T I E S:
• Changing government policies. • Increasing mall culture in India.
• Window shopping increased among • Coming generations are expecting to buy
people. everything in a one roof.
• Competition arises from Reliance, D- • Indians are budget constraint.
mart.
• International Investors looking to foray
India.
DEBT
ANALYSIS:
• Even though Big Bazaar fails their
market, they lost their market
value too.
• This pandemic made a company

much more to suffer.
• Nearly a decade ago, in FY12, he

was in an identical Rs 12,000 crore
debt.
• With profits dipping 11.24 per cent

to Rs 619 crore in the first nine
months of Financial year 2020, the
group's woes came out into the
open in the last quarter of FY20.

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MARKETING MANAGEMENT - 2

ABIJITH R , AFSAL SAMEER A , BHARANI VIJAYAKUMAR , VISVVESH

Founded 2001; 19 years ago

Founder Kishore Biyani

Headquarters Mumbai, India.

Area served India

CHILD CARE & ELECTRONICS

Toy Bazaar Vegetables Office appliances Workplace furnitures

Stationery Imported Fruits Small applicances Paintings

Child care Dry Products Kitchen Applicance Decoratives

DJ & C Coco - Cola

Clean Mate ITC

FRESH & PURE P&G

Low Price High Price

 Expansions in the size of Big Bazaar operations:

 Developing standards for suppliers:

• Big bazaar is facing losses nearly $80

• 50% company’s total expenditure is

• Spending more on customer

• Lack of brand awareness and emergence of

• Big bazaar known for its physicality and

• This pandemic made a company

• Nearly a decade ago, in FY12, he

• With profits dipping 11.24 per cent

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