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PRESENTATION ON BIG BAZAAR

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Title: PRESENTATION ON BIG BAZAAR


1
PRESENTATION ON BIG BAZAAR
  • Presentation by
  • Gurdeep Singh
  • Pushpak Pandey
  • Shaleen Agarwal
  • Rohan Tandon
  • Richa Kohli

2
Agenda
Retailing An overview
Indian retail
The change factor
FDI in Indian retailing
Why FDI ?
How FDI ?
Big Bazaar- Company Profile - Customer
Segment - Vision and Mission -
Swot analysis - BCG Matrix -
Porter 5 Forces Model
3
Retailing An overview
  • Retailing
  • Worlds largest private industry
  • US 6.6 trillion sales annually
  • Fortune 100
  • 9 Retailers
  • Carrefour, Ahold, Home Depot, Kroger, Metro,
    Kmart-Sears, Target, Albertsons
  • Indian Retailing
  • Largest employer after agriculture - 8 of
    population
  • Highest outlet density in world
  • Around 12 mn outlets
  • Still evolving as an industry
  • Long way to go

An overview
4
Evolution of Indian retail
Modern Formats/ International
Traditional/Pervasive Reach
Government Supported
Historic/Rural Reach
Exclusive Brand Outlets Hyper/Super
Markets Department Stores Shopping Malls
Khadi Stores Cooperatives
Convenience Stores Mom and Pop/Kiranas
Weekly Markets Village Fairs Melas
Source of Entertainment
Availability/ Low Costs / Distribution
Shopping Experience/Efficiency
Neighborhood Stores/Convenience
5
Evolution of Indian retail
  • Informal retailing Sector
  • Typically small retailers.
  • Evasion of taxes
  • Difficulty in enforcing tax collection
    mechanisms
  • No monitoring of labor laws
  • Formal Retailing Sector
  • Typically large retailers
  • Greater enforcement of taxation mechanisms
  • High level of labor usage monitoring

Indian retail
6
Categories of Indian retail
  • Corporate Houses
  • Tatas Tata Trent
  • RPG group Food World, Health and Glow, etc
  • ITC Wills Life Style
  • Rahejas(ShoppersStop), Hiranandani(Haiko),
    DLF(DT cinemas) etc.
  • Dedicated brand outlets
  • Nike, Reebok, Zodiac etc
  • Multi-brand outlets
  • Vijay Sales, Viveks etc
  • Manufacturers/ Exporters
  • Pantaloons, Bata, Weekender

Indian retail
7
Classifying Indian retail
  • Modern Format retailers
  • Supermarkets (Foodworld)
  • Hypermarkets (Big Bazaar)
  • Department Stores (S Stop)
  • Specialty Chains (Ikea)
  • Company Owned Company Operated
  • Traditional Format Retailers
  • Kiranas Traditional Mom and Pop Stores
  • Kiosks
  • Street Markets
  • Exclusive /Multiple Brand Outlets

Indian retail
8
Large Indian retailers
  • Hypermarket
  • Big Bazaar
  • Giants
  • Shoprite
  • Star
  • Department store
  • Lifestyle
  • Pantaloons
  • Piramyds
  • Shoppers Stop
  • Trent
  • Entertainment
  • Fame Adlabs
  • Fun Republic
  • Inox
  • PVR

Indian retailers
9
The changing Indian consumer
  • Greater per capita income
  • Increase in disposable income of middle class
    households
  • 20.9 growth in real disposable income in
    99-03.
  • Growing high and middle income population
  • Growing at a pace of over 10 per annum over
    last decade
  • Affordability growth
  • Falling interest rates
  • Easier consumer credit
  • Greater variety and quality at all price points

Indian consumer
From Euromonitor Retail Survey
10
The changing Indian consumer
  • The urban consumer
  • Getting exposed to international lifestyles
  • Inclined to acquiring asset
  • More discerning and demanding than ever
  • No longer need-based shopping
  • Shopping is a family experience
  • Changing Mindset
  • Increasing tendency to spend
  • Post Liberalization children coming of age
  • 100 mn 17-21 year olds. Tend to spend freely.
  • Greater levels of education

Indian consumer
Data from NCAER
11
Anticipated growth
  • Market size
  • Current market size is roughly US 286 bn
  • 96 of the 12 Million stores are less than 500
    Sq. ft.
  • Forecast Growth rate for the retailing industry
    is roughly 8.3 for 2003-2008
  • Sales from large format stores would rise by
    24-49
  • Formal and modern format retailing would enjoy
    rapid growth

Anticipated growth
12
Industry dynamics
  • Low domestic competition
  • Because of fragmented nature of industry
  • Lack of exposure to global best practices
  • Low entry barriers for unorganized retailing
  • Moderate entry barriers for organized retailing
  • Wholesale system under-invested leading to 20-40
    wastage
  • Non level playing field issues
  • Wide differences in treatment of small and large
    retailers

Industry dynamics
13
Industry dynamics
  • Real Estate Costs
  • Supply Chain Inconsistency
  • Poor Infrastructure
  • Lack of Skilled Manpower

issues
14
Growth factors
  • Growth determining factors
  • Government Policy
  • Infrastructure development
  • GDP growth
  • Employment generation and job creation
  • In several new sunrise industries
  • Implies greater purchasing power

Growth factors
15
The Indian advantage
  • India ranked 1st in the Global A.T Kearney Retail
    Development Index
  • India
  • Russia
  • China

Advantage India
16
THE SIZE OF THE OPPORTUNITY
Products     Total Retail Organised Organised
Products     Rs. Billion Retail Retail as
Products       Rs. Billion of Total
Food Grocery 6422 50 1
Textiles Apparel 980 185 19
Jewelry Watches 554 30 5
Consumer durables 415 43 10
Pharmaceuticals 364 10 3
Home Solutions 351 32 9
Books, Music Gifts 115 15 13
Others 1159 111 10
Total 10360 476 5
17
FDI in Indian retailing
  • Current Indian FDI Regime
  • FDI not permitted in retail trade sector, except
    in
  • Private labels
  • Hi-Tech items / items requiring specialized
    after sales service
  • Medical and diagnostic items
  • Items sourced from the Indian small sector
    (manufactured with technology provided by the
    foreign collaborator)
  • For 2 year test marketing (simultaneous
    commencement of investment in manufacturing
    facility required)

FDI in Retail not permitted
18
FDI in Indian retailing
  • Metro Group of Germany
  • Cash-and-carry wholesale trading
  • Proposal faced strong opposition
  • Entities established prior to 1997
  • Allowed to continue with their existing foreign
    equity components.
  • No FDI restrictions in the retail sector pre-1997
  • Foodworld
  • 5149 JV between RPG and Dairy Farm
    International,
  • Leading food retailer in India now
  • Mc Donalds

Current FDI
19

20
Hypermarket The chain of retail stores of
the Pantaloon Retail (India) Ltd. 89 outlets in
India Headquarter in Mumbai Focusing on Value of
Money
21
COMPANY PROFILE
  • Future Group, led by its founder and Group CEO,
    Mr. Kishore Biyani, is one of Indias leading
    business houses with multiple businesses spanning
    across the consumption space. While retail forms
    the core business activity of Future Group, group
    subsidiaries are present in consumer finance,
    capital, insurance, leisure and entertainment,
    brand development, retail real estate
    development, retail media and logistics.
  • 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.

22
  • 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 groups speciality 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 groups 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.

23
Customer Segment
  • Big Bazaar target to upper middle class and
    higher customers.
  • The large and growing young working population is
    a preferred customer segment.
  • Big Bazaar specially target working women and
    home maker who are the primary decision maker.

24
Mission Vision
  • Future Group shall deliver Everything,
    everywhere, every time for every Indian Consumer
    in the most profitable manner.
  • 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

25
SWOT ANALYSIS
  • STRENGTHS
  • EVERY DAY LOW PRICING
  • GOOD INFRASTRUCTURE
  • CONSUMER PREFERENCES
  • DIVERSE MARKET COVERAGE
  • AWRENESS ABOUT THE BRAND HIGH AMONG MASSES
  • OPPORTUNITIES
  • SUB URBAN UNTAPPED MARKET
  • ONE STOP CONCEPT UNKNOWN YET
  • EVOLVING CONSUMER ORIENTATION
  • CO BRANDING AND FRANCHISING FOR FASTER GROWTH

26
SWOT ANALYSIS
  • WEAKNESS
  • LOW PERCEPTION AMONG CONSUMERS
  • LESS AVAILABILITY OF STORES
  • SUPPLY CHAIN BOTTLENECKS-(FRAGMENTED MARKETS)
  • THREATS
  • NEW ENTRANTS AND FOREIGN PLAYERS
  • UNORGANISED RETAIL MARKET

27
5 FORCES PORTER MODEL
  • RIVALRY AMONG COMPETITORS
  • RELIANCE,MORE,VISHAL,NEXT,SPENCERS
  • NEW ENTRANTS
  • WALMART,CARREFOUR,METRO,IKEA
  • FOREIGN PLAYERS ALLOWED TO SOME EXTENT
  • BARGAINING POWER OF SUPPLIERS
  • SUPPLIERS HAVE A HUGE UNORGANISED SECTOR TO
    CATER TO

28
Contd
  • BARGAINING POWER OF CONSUMERS
  • PRICE SENSITIVE CONSUMERS
  • MORE AVAILABLE CHOICES
  • THREAT OF SUBSITUTES
  • UNORGANIZED RETAIL

29
BCG MATRIX
30
MARKETING
  • 7 Ps ANALYSIS

31
(No Transcript)
32
PRICING Value Pricing (EDLP) Promotional
Pricing Low Interest Pricing Psychological
Pricing Special Event Pricing (Republic Day)
Differentiated Pricing Time Pricing Bundling
33
PRICING COMPARISION
34
TIME PRICING
35
PSYCHOLOGICAL PRICING
LOW INTEREST FINANCING
36
PROMOTION SAAL KE SABSE SASTE 3 DIN FUTURE
CARD (Discount Upto 3) SHAKTI CARD JUNK SWAP
OFFER BRAND AMBASSADOR M.S. DHONI
ADVERTISMENT (Print Ads, T.V., Radio) POINT OF
PURCHASE PROMOTION GIFT TO EVEY 100th CUSTOMER
(Seasonal)
37
BANNERS AND POSTERS
38
PEOPLE People Are The Customers Which Are
The Biggest Asset Of A Company. Well Trained
Staff. Appearance. Presently Around 10000
Workers Are Working And Around 500 Workers Are
Recruited Every Month. High Security For Safety
Of Customers.
39
Problems ahead Reduction in consumer
spending Slow construction of malls Difficulty in
raising working capital High rentals Lowering
margins New emerging competitors
40
THANK YOU
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