Marketing Management Report on Future Group

A MARKETING MANAGEMENT

PROJECT ON

PREPARED BY: - GROUP A-5

Batch:- 2011-13

Name Roll no.

Nikita Bali 11004

Sunny Bhuva 11010

Chandan Pahelwani 11047

Himani Parihar 11049

Sonia Dadlani 10022

SUBMITTED TO:-

Dr. Bhavesh Vanpariya

Tolani Institute of Management Studies, Adipur


DECLARATION

We Group: A-5 hereby declare that this project is the result of our

personal learning outcomes from the subject “Marketing

Management”. The analysis and data presented in the project is in

accordance with the subject Marketing Management.

The source of information collected is given in the references part at

the end of the project. We have not copied the project from any of the

internet source. This project is from our personal findings on the

company Future Group.

We are also grateful to Dr. Bhavesh Vanpariya for assisting and

guiding us throughout the project.


Sr no. Title Page no.

1 INTRODUCTION OF COMPANY 4

2 PRODUCT PORTFOLIO 10

3 COMPANY ORIENTATION TOWARDS

MARKET PLACE

11

4 ANALYZING THE

MACROENVIRONMENT

16

5 CUSTOMER PERCEIVED VALUE 19

6 ANALYZING CONSUMER BEHAVIOR 22

7 BASES FOR MARKET

SEGMENTATION

24

8 FIVE PATTERNS OF TARGET

MARKET SELECTION

29

9 BRAND ELEMENTS 30

10 PRODUCT LIFE CYCLE 34

11 PRODUCT STRATEGIES 40

12 PRICING STRATEGIES 52

13 DISTRIBUTION STRATEGIES 54

14 PROMOTION MIX 56

15 PACKAGING AND LABELING 57

16 VIDEO ADVERTISEMENTS OF FUTURE

GROUP

59

17 REFERENCES 60


INTRODUCTION OF COMPANY

Future Group is India’s largest retailer and one of the leading business

houses with a strong presence in retail. Its founder and Group CEO is Mr.

Kishore Biyani.

Future Group India was established in 1994 with a vision to provide

diverse services in Indian and Global markets. The business areas of Future

Group cover BPO (Business Process Outsourcing), New Media, Security

Management, and Construction. Through their strategic investment and

services, the future of Future Group shows a rising star in the business sky of

India.

Led by its flagship enterprise, Pantaloon Retail, the group operates

over 16 million square feet of retail space in 73 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.

Lines of Business

The company is present across several lines of business which have various

formats (stores) operational under it. These include:

Food - Food Bazaar, Chamosa, Spoon, Brew Bar, Sports Bar & Sports Bar

Express, Cafe Bollywood.


Fashion - Pantaloons, Central, aLL, Brand Factory, Blue Sky, Top 10,

Fashion Station, Big Bazaar, Lee Cooper (JV),

General Merchandise - Big Bazaar, Shoe Factory, Navras, Electronics

Bazaar, Furniture Bazaar, KB'S FAIR PRICE

Home & Electronics - Home Town, eZone, Collection i

E-tailing (Online Shopping) - www.futurebazaar.com

Books & Music - Depot

Leisure & Entertainment - Bowling Co., F123

Wellness - Star & Sitara, Tulsi

Telecom & IT - Gen M, M Bazaar, M-Port, ConvergeM

FUTURE RETAIL:

The retails businesses of Future Group in India are divided into three main

categories:

Retail forms the core business activity at Future Group and most of its

businesses in the consumption space are built around retail. Future Group’s

retail network touches the lives of more than 200 million Indians in 73 cities

and 65 rural locations across the country. The group currently operates

around 1,000 stores spread over 16 million square feet of retail space.

Present in the value and lifestyle segments, the group’s retail formats cater

to almost the entire consumption expenditure of a wide cross-section of

Indian consumers.

Pantaloon Retail India Limited

The leading retail formats under this include:

Pantaloons Stores -lifestyle segments and fashion segment.

Big Bazaar - a uniquely Indian hypermarket chain


Central - a chain of seamless destination malls

Food Bazaar - a supermarket chain that blends the look, touch and feel of

Indian bazaars with aspects of modern retail like choice, convenience

and quality

Home Town - , a large-format home solutions store

E Zone - consumer electronics

Depot - consumer electronics

Health & Beauty Malls

Online retail through futurebazaar.com

Aadhaar- India’s leading rural retailing chain, that is present in over 65

locations in rural India. Aadhaar, an agri-service cum rural retail initiative,

provides a complete solution provider for the Indian farmer.

Furniture Bazaar - specialized formats for home furniture and home

furnishing

Ethnicity - India's first concept store, which recreates the experience of a

traditional ethnic market in a modern retail format,

Joint Ventures with International Brands

Indus League Clothing that owns leading apparel brands like Indigo

Nation, Scullers and Urban Yoga

Galaxy Entertainment Limited that operates Bowling Co, Sports Bar, F123

and Brew Bar

French retailer ETAM group, US-based stationary products retailer, Staples

and UK-based Lee Cooper.

Franchisee of international brands like Marks & Spencer, Next,

Debenhams and Guess in India.


Indian Joint Venture Partners

Manipal Healthcare

Talwalkar's

Blue Foods

Liberty Shoes.

FUTURE CAPITAL HOLDINGS

The financial services of Future Group are taken care by Future Capital

Holdings. These include:

Asset Management and consumer credit are the prime focus financial

services. Around 1 billion USD have been invested in retail real estate and

consumer brands outlets and hotels.

Future Money - It is a financial supermarket format providing consumer

credit

Joint venture with Italian insurance major General Insurance for

providing general insurance services.

Venture Capital Funds and Private Equity Funds through

kshitijfund.com

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.

BPO (BUSINESS PROCESS OUTSOURCING)

Future Group has made major investments in BPO industry as a venture into

the Information Technology Enabled services (ITES) industry. Future Group

has subsidiaries offering IT based solutions. These include:


Language Services

Software Development

Content Engineering

NEW MEDIA

Future Group has invested in digital media and computer technology for

creating innovative and interactive multimedia presentations. These include:

Multimedia Production

Broadcasting

Publishing

Designing

SECURITY MANAGEMENT

Future Group is considered as a reliable tailor-made business and security

services provider. They develop their own software and machines for

security services. These include:

Access Control Systems

Time Attendance Systems

CCTV

Alarm Management Systems


CONSTRUCTION

Future Group brings to you their past experience in quality construction for

building and renovating buildings for leasing to business. Future Group is

also involved in the designing, financing and legal considerations of the

project undertaken. The construction activities of Future Group in India

include:

Leasing

Landscaping

SUPPLY CHAIN

Future Supply Chain Solutions Limited (FSCS), a specialized subsidiary,

offers strategic, focused and consolidated approach to meet the group’s

large supply chain requirements as well as those of select supply and

business partners.

The Future Supply Chain Solutions team currently oversees the

operations of an existing fleet of over 600 dedicated trucks, contracted from

established regional and national transport carriers, most of which are now

equipped with GPS sets.

In addition it provides integrated end-to-end SCM, warehousing and

distribution, multi-modal transportation and container freight station.

The total consolidated warehouse space that the company intends to

have operational by 2010-11 is nearly 7.50 million square feet.


PRODUCT PORTFOLIO OF FUTURE GROUP

As mentioned in the introduction of the company, Future Group’s core

business activity is retail, along with BPO (Business Process Outsourcing),

New Media, Security Management, and Construction. So here below are the

logos of their various brands.

Please see the IMPORTANT NOTE given below the brand images.

IMPORTANT NOTE:- From the various brands of the company we

have mainly focused on BIG BAZAAR in relating the marketing

management concepts.


COMPANY ORIENTATION TOWARDS MARKET PLACE

There are mainly five concepts related to company orientation towards

market place which are:

1. The Production concept

2. The Product concept

3. The Selling concept

4. The Marketing concept

5. The Holistic marketing concept

The concept which applies to Big Bazaar is The Selling concept.

The concept says that the consumer if left alone will not buy enough. This

is true and Big Bazaar applies this concept by displaying all the product of

different brand and its private brand on the shelves.so that the customer

have a huge variety of products and can select the best out of it and

some schemes are also available which attracts the customer to buy more

and even purchase other product.

Their need to be aggressive communication with the customer. There is

sales person at the counter which helps the customer in finding out the

best product for himself. Sometimes the customer might be in confusion

whether to buy a product or not, at that time the salesperson tell them

about the product and its requirement in their lives. After communicating

all this about the product the customer then finally makes a decision of

making a purchase. So aggressive communication is required with the

customer.

This concept also says that their needs to be aggressive marketing of the

product so that buyer make a purchase.

The main purpose of this concept is to sell more and earn more.


This concept overall means that sell what you want to instead of what the

customer want to buy.

Another concept which relates to Big Bazaar is The Marketing concept.

The concept says that “Create the best and deliver the best” and Big

Bazaar does the same through their SACH brand. They try to create the

best by the name of Sachin Tendulkar and deliver the quality product.

Next concept comes the “HOLISTIC MARKETING” which means

“Everything matters in this market”

It is an approach to recognize the scope of Marketing Activities.

These are the four major themes on which any companies' overall

position can be judged.


Holistic Marketing

Integrated

Marketing

Relationship Marketing

Performance Marketing

Internal Marketing

This concept helps companies to have a complete approach towards

their requirement.

The integrated marketing includes all the following:

The integrated marketing includes the four P’s i.e. Product, price, Place

and Promotion. Big Bazaar takes due care of its product quality, it provide

the product lower than its cost to the customer, Big Bazaar is set up at

such a place which is convenient for the customer and for the business

and it does promotion through different media i.e. television, print etc.


Integrated

Product

Price

Place

Promotion

Performance marketing :-

Performance includes sales revenue of Big Bazaar, Legal that is the legal

aspects of the business, ethics which they follow and environment of the

business.


Performance

Sales Revenue

Legal

Environment

Ethics

Relationship marketing :-

Relationship:- which includes maintaining relationship with the customers,

employees, partners and the channel.

Internal marketing :-

Internal :- which means one department share profit with other departmental

of same organisation is called profit internal sharing.


Relationship

Customers

Employees

Channel

Partners

Internal

Marketing Department Senior Management Other Departments

ANALYZING THE MACROENVIRONMENT

NEEDS and TRENDS

Successful companies recognize and respond profitably to needs and

trends which could not be carried out earlier.

Enterprising individuals and companies manage to create new solutions to

unmet needs. Similarly, Big Bazaar identified the need for cheap and

discounted products. They started the operation with the tag line “Is se

sasta aur accha kahin nahin” by providing best products at best price.

We distinguish among fads, trends and megatrends.

A fad is unpredictable, short-lived, and without social, economic, and

political significance. A company can cash in on a fad, but this is more a

matter of luck and good timing than anything else. E.g. Beanie Babies.

A trend is a direction or sequence of events that has some momentum

and durability. Trends are more predictable and durable than fads. A

trend reveals the shape of the future and provides many opportunities.

The percentage of people who value physical fitness and well-being has

risen steadily over the years, especially in the under-30 group, the young

women and upscale group.

Mega trends have been described as large social, economic, political

and technological changes that are slow to form, and once in place, they

influence us for some time between seven and ten years, or longer.


From the above, study we would say that the concept of Mega Trends

applies to Big Bazaar as people of India are not used to Big Bazaar (Retail

Model). It takes time to adopt it. People are still buying the products from

the open market in traditional way.

Identifying the Major Forces

Companies and their suppliers, marketing intermediaries, customers,

competitors, publics all operate in a macro environment of forces and

trends that shape opportunities and pose threats. These forces are not

controllable but the company must monitor and respond timely to these

forces. In the economic arena, companies and consumers are increasingly

affected by global forces.

The beginning of the new century brought a series of new challenge: the

steep decline of the stock market, which affected savings, investment,

and retirement funds; increasing unemployment; corporate scandals; and

of course, the rise of terrorism. These dramatic events were accompanied

by the continuation of other, already-existing longer-term trends that

have profoundly influenced the global landscape.

Within the rapidly changing global picture, the firm must monitor six

major forces: demographic, economic, social-cultural, natural,

technological, and political-legal.

Technological:

One of the most dramatic forces shaping people’s lives is technology.

Technology has released such wonders as penicillin, open-heart surgery,

and the birth-control pill.


Big Bazaar planning and design used advance technologies like scenario-

planning and story-telling. 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.

Social Cultural:

Society shapes our beliefs, values, and norms. People absorb, almost

unconsciously, a worldview that defines their relationship to themselves,

to others, to organizations, to society, to nature, and to the universe.

Similarly, Big Bazaar launched a campaign Des Badla Ab Vesh Badlo

(nation is changing, so change the way you dress), Sone ki Chidiya two

years ago. It also follows consumer segmentation according to social-

cultural factors. It also promotes environment friendly carry bags with

easy to dispose. It also undertakes various activities for the welfare of the

society popularly known as corporate social responsibility.

Political-Legal:

Marketing decisions are strongly affected by developments in the political

and legal environment. This environment is composed of laws,

government agencies, and pressure groups that influence and limit

various organizations and individuals. Sometimes these lows are creating

new opportunities for business.

Big bazaar is following various laws like labour law and consumer law. It

also regulates various safety measures in the store.

Big bazaar is also following various government policies, tax policies with

regularly paying tax and filling return.


CUSTOMER PERCEIVED VALUE

Consumers are more educated and informed than ever, and they have

the tools to verify companies’ claims and seek out superior alternatives.

How then do customers ultimately make choices ? they tend to be

value maximizers, within the bounds of search costs and limited knowledge,

mobility and incomes. Customers estimate which offer will deliver the most

perceived value and act on it. Whether the offer lives up to the expectations

affects customer satisfaction and the probability that the customer will

purchase the products again.

Customer-perceived value is the difference between the

prospective customer’s evaluation of all the benefits and all the costs of an

offering and the perceived alternatives.

Total customer benefits is the perceived monetary value of the

bundle of economic, functional and psychological benefits customers expect

form a given market offering because of the products, services, personnel

and image involved.

Total customer cost is the perceived bundle of costs customers

expect to incur in evaluating, obtaining, using and disposing of the given

market offering, including monetary, time, energy and psychological costs.

CONSUMER INSIGHT AND PERCEPTION

Big Bazaar is based on 3-C theory of Kishore Biyani. The three 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:-

India One

Consuming class, constitute only 14% of Indian Population

They are upper middle class and most of customers have substantial

disposable income

Initial focus of Big Bazaar

India Two

Serving Class which includes people like drivers, household helps, office

peons, washer man etc.

For every India One, there are at least India two and have around 55% of

Indian population.

India Three

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 find 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.

Purchased Bags/goods should be sealed at checkout 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 to every section of family. That also led separate section for

clothes, vegetables, food etc. i.e. Multiple clusters within a bazaar.

Developed a diversity tracing.


ANALYZING CONSUMER BEHAVIOR

Consumer behavior is the study of how individuals, groups and

organizations select, buy, use, and dispose of goods, services, ideas, or

experiences to satisfy their needs and wants.

A consumer’s buying behavior is influenced by cultural, social, and

personal factors. Cultural factors exert the broadest and deepest influence.

Factors affecting consumer behaviour :-

Cultural factors :-

Culture, subculture and social class are particularly important influences

on consumer buying behaviour.

In the case of big bazaar, the frequency of visits by the customer and the

kind of products they buy influence their buying behaviour pattern.

The cultural values of the customer also influence their visit to buy the

required products at the big bazaar.

Social factors :-

Social factors such as reference groups, family and social roles, statuses

affect our buying behaviour.

Reference groups involve family, friends and neighbours.

Customers of big bazaar might influence others persons of their reference

groups to buy products from big bazaar.

Social status of the people influences their buying behaviour.

For example, high class people go to big bazaar for shopping.

Personal factors :-

Age and stage in the life cycle are the personal factors which influence

customer buying behaviour.


Children will buy different products from big bazaar according to their

choice and middle-aged persons and old-aged persons buy different

products.

So the products for all the groups of the family are available at big bazaar,

this influence their buying behaviour.

Lifestyles of the people also influence buying behaviour.

Some people are uneasy to go to the small kiryana shop for their

shopping.

Buying Behaviour process :-

The above chart shows the buying behaviour process of the customers.

From the total set of Big bazaar, V-mart, Star bazaar, Reliance super and

a local departmental store.

The customers are aware about Big bazaar, Reliance super, V-mart and

Star bazaar.

To buy their required products and for shopping they consider Big bazaar,

Reliance super and V-mart.

Finally customers have a choice to make either to visit Big bazaar or

Reliance super.

At last consumers take the decision to visit Big Bazaar for the shopping.


Total setBig BazaarV-martReliance superStar BazaarLocal departmental store

Awareness setBig BazaarV-martReliance SuperStar Bazaar

Consideration setBig BazaarReliance SuperV-mart

Choice set

Big BazaarReliance Super

Decision

BIG BAZAAR

BASES FOR MARKET SEGMENTATION

1. GEOGRAPHIC SEGMENTATION:- In this segmentation company calls

for division to the market into different geographical units such as nation,

state, regions, countries, cities, or neighborhoods. As we are taking one

product of our company future group we are going to discuss various

segmentations on big bazaar.

I. City:- big bazaar is situated in different city like it is in Ahmedabad,

Vapi, Vadodara, Rajkot, Surat, Nashik, Nasik, Bharuch, Bhopal,

Hyderabad. It is most of situated in metro city where the population

is more.

II. Rural areas and Urban area:- future group has segmented its

retail into two area rural and urban area for rural area they made

aadhaar retail by this they targeted that market also those people

who all are living over there.


Now in urban area big bazaar is there so that people can get all

things in one place by saving their precious time and by giving

attractive discount on so much durable and non-durable goods plus

they are offering service also.

These two segmentations are related with future group so that

they can target mass of people easily.

2. DEMOGRAPHIC SEGMENTATION :- Big bazaar has done full

segmentation on demographic bases they are as follows:-

Age

Family size

Gender

Income

Occupation


Rural area

EXPLANATION:-

Age:-

Big bazzar has targeted there customer age wise for kids like they

have different section for kids toys, shoes, garments etc. For teenagers

they have different section they have café shops in big bazzar malls so

they that can refresh them self by doing shopping. For house wife they

give different discount or they have different type days like sabse

sastein 4 din or 5 din maha bachat. In this way they segmented it age

wise.

Family size:- big bazaar also consider family size in its segmentation

they provide all quantity of product there were 10 kgs bags are also

available and 5 kgs 1kgs bags are also available so that neutral family

can also fulfill their need and joint family people will also satisfied

there need and if customer want more quantity then they also give

different discount our they give buy one get one free offer to them.

Gender:- big bazaar fulfill the need of both gender they get things

whatever they need whether they are male or female they had also

celebrate some special days for male and female that is “sabse chikna

kaun campaign”, “ detergent mela”, “ india beverage league”, “ dal

chawl mela” etc.


Income:- big bazaar target higher, middle and lower class people

so that all kind of people come in there segmentation in India higher

class people are less then lower class people so for them big bazaar

brings some days so that mass of people get attracted and buy

many things from there retail shop. Like sabse sastein 3 din, 5 din

maha bachat.


Occupation:- big bazaar specifically targets working women and

home makers who are the primary decision makers. The large and

growing young working population is a preferred customer segment.

So that they get convenience goods for them easily and at one

place.

3. Psychographic:-

Lifestyle:- big bazaar enrich the life style of the people they can

fulfill needs of whole life in less price by getting different discounts

nd skims for them and they fell their status has also been increase

by doing shopping in mall.

4. Behavioral:-

Occasions

User status

EXPLANATION:-

Occasions:- big bazaar celebrates days and give special offer for the

customer like on every last week of the year the clear there stock or

they give special winter or summer offer for their customer to buy

more and spend less.

User status:- there were some user status who came to big bazaar

for first time and there were some people who go many time big

bazaar. Like they go every weekend or some go in one month.


FIVE PATTERNS OF TARGET MARKET SELECTION

Single segment concentration

Selective specialization

Product specialization

Market specialization

Full market coverage

In big bazaar there prevails full market coverage and market

specialization. They cover full market by income, age, gender, family size.

Full Market Coverage:-

M1 M2 M3

Age

Gender

Income

Market Specialization:-

M1 M2 M3

Retail

In market specialization big bazaar has their market specialization in

retail.


BRAND ELEMENTS

Meaning of Brand:-

“A brand is a name, term, sign, symbol or design or combination of

them, intended to identify the goods or services of one seller or group

of sellers and to differentiate them from those of competitors”.

A brand is a product which has earned a place in consumer’s life

through perception, experience and beliefs .It is the sum of how

consumers feel about a product.

Brand Elements:-

Brand elements are those trademark devices that identify and

differentiate the brand.

Brand elements are mainly brand name, slogan, character, symbols,

URL, person and logos.

Our company “FUTURE GROUP” consists of the following brand

elements which differentiate it from others.

1. Brand Slogan: ‘India Tomorrow’ and ‘Udna hai aj, abhi’ of Future Group

and ‘Is se sasta aur accha kahin nahi!, of Big bazaar.

2. Character: Future group, Big Bazaar

3. Logo: Bird


4. Person: Cricketer M.S Dhoni and Bollywood actress Asin for Fashion at

big bazaar.

There are some private brands of future group which includes FUTURE

GROUP’s tie up with Sachin Tendulkar for the brand “SACH” and some

of its private brands.

Future Group has successfully launched a series of private brands

ranging in foods with Tasty Treat, Home and personal care range

with Clean mate & Care mate, staples with Fresh & Pure and Premium

Harvest, and Sach is a big leap for the company in the direction

building its private brands portfolio through its association with an

iconic figure like Sachin Tendulkar, will be setting the tone based on

Sachin’s values and mass appeal.


Future Group private brands have always launched their products

keeping “Indianness” in mind through consumer insights. Launch of

Tasty Treat soups with a mug and Tasty Treat Cornflakes with a bowl

are some of the success stories in past . Past one year has seen

aggressive roll-outs from private brands with products like Sach

toothbrush, Clean mate Diapers, Tasty Treat noodles and soups with

both classic and Chinese range, Fresh and pure Desi ghee which has

helped in giving consumer quality products at great value.

Future group also have tie up with other companies which are as

follows:


PRODUCT LIFE CYCLE

A company’s positioning and differentiation stratergy must change as the

product, market and competitors change over the Product life cycle (PLC).

Prodcut life cycle is made up of four things:

1) Products have a limited life.

2) Product sales pass through distinct stages, each posing different

challenges, opportunities and problems to the seller.

3) Profit rise and fall at different stages of the product life cycle.

4) Products require different marketing, financing, manufacturing,

purchasing and human resource stratergies in each life-cycle stage.

The life of a product passess through four different stages

mainly:-

1. INTRODUCTION STAGE:-

The seller tries to stimulate demand regarding his product.

He makes promotion campaigns to increase public awareness

regarding his product.

He tries to explain the consumers how the product is to be used and

also explains the product features, advantages and benefits (FAB).

The seller at this stage might lose money, but can expect to make

profits in the future. As the product is just introduced in the market

there are chances that it might be a failure or a winner.

Sales are low and profits are below the line because the costs incurred

by the seller on the product at this stage are greater than the amount

of money he makes after selling the product.


The seller might have “negative” profit i.e loss. Mainly the product at

this stage faces more of loss then earning profit for as the product is

just introduced and people are unaware regarding the product.

Need to spend a lot of money on promotion. For the product which is

just introduced in the market it is impossible to compete which the

similar type of product, so it is important to make people aware of the

product by promoting it through different mediums and heavy

expenditure is incurred on promotion at this stage.

Limited Product Model

At this stage their might be penetration pricing which means low price

of the product or skimming pricing which means high price of the

product at its introduction stage.

2. GROWTH STAGE:-

Next comes the growth stage wherein the cosumers are aware of

the product, its usage, benefit, features etc.

At the growth stage the seller tries to sell a lot and he tries to sell

as much as he can to cover up his loss incurred at the introduction

stage .

As the product is well known by the consumer other competitor

companies watch it and tries to introduce a competitor product.

E.g. Men’s Cosmetic. When the company firstly introduce the

Men’s Cosmetic cream many people were not aware of it but

slowly and gradually as people became aware another company

launched the competitor product of it to capture the market.

Growth of a product continues until too many competitors are in

the market - and the market is saturated.


At the end of the growth stage, profits start to decline because

when competition arises seller spends more money on promotion

to keep sales going.

Spending money on promotion cuts into your profit. As a

competitor product comes in the market its important to keep our

product sales go and for that promotion of it becomes important

which ultimately cuts our profit.

Large company may acquire small pioneering firms.

Gaining wide distribution is a key goal.At this stag it is important

that our product is available at every place, so that our consumer

don’t find any difficulty in getting it.

At this stage the product achieves sales volume which

createseconomies of scale.

3. MATURITY SATGE:-

When a product achieves the growth which includes increase profit

and sales the next stage from which it passes through is the MATURITY

STAGE.

At this stage there are many competitors who have joined and the

market is saturated.

The only way to sell the product is to lower the price and so the profits

decrease.

It is difficult to tell the difference in our product since most of the

competitor product has the same F.A.B. - Features, Advantages &

Benefits.

At this stage competition can get “Horrible” and commercials are

intense.

That is to say, we have commercials almost begging the customer to

still buy your product because you still make it just as good.

An emphasis on product style rather than function.


The marketplace is approaching saturation.

4. DECLINE STAGE:-

Newer products are now more attractive - even a low-low price

does not make consumers want to buy.

Profit margin declines - and so the only way to make money is to

sell a high volume.

The rate of decline is governed by:

How rapidly consumer testes change or

How rapidly substitute product are adopted

To increase volume you try to

Increase the number of customers - get new customers

Increase the amount each customer uses


The above is the chart showing the four stages of product life cycle. Big

Bazaar comes under the RETAIL head of Future Group and it is at the

maturity stage. The following points can be considered:-

1. Big Bazaar keeps many offers to attract its potential customer like

“Buy one, get one free”, ‘Best deals’ and ‘sabse saste 3 din’.

2. It does more of promotional campaigning through print media,

television media to get it customer aware regarding the offers

available by them. It also does promotion through celebrities like Dhoni

and Asin for the fashion at big bazaar which help them to increase

their sales and the other points are explained above.


3. There’s an increased competition of big bazaar with its competitors.

4. Big bazaar after coming at this stage want to stabilize it profit without

making any losses.


PRODUCT STRATEGIES

Product Levels: customer value Hierarchy

Product is not only an offering but it is something beyond that. Is is

something which can satisfy the wants and need, which includes

special services or goods, events, persons, etc.

Product Levels are categorized in five levels which any marketer has to

follow which adds more value to customers and these five create

customer value hierarchy.

These four are the first four levels of customer value hierarchy. Core

Benefit is what actually a customer wants. It is also known as

fundamental level. Marketers have to see themselves as benefit

providers and thus this first step is called core benefit.


Augmented Product

Expected Product

Basic Product

Core Benefit

Basic Product is the job of marketer to convert core benefit into basic

requirement. Providing any service or product with more facility is the

role of basic product.

The third level is Expected Product. Wherein marketer is serving the

product with those particular conditions & expectations which

customer have when they buy any product.

At the fourth level stands Augmented Product. It is that level where it

exceeds all the expectations of the customers. On this level tough

competition starts and the main focus of marketers is to survive in this

competition and give their product a position in the market.

The fifth level is Potential Product. This stage is where a product

exceeds even augmentation. It transforms the product in the future in

such a way that customer had never expected or even thought of it.

Potential Product is a stage where companies have to continuously find

something new for the customers to be served so as to satisfy them. In

the above mentioned chart we have not shown potential product as

still many companies are trying to reach this level. Future Group’s Big

Bazaar is on the fourth level. Let us see in more detail:-


Here we can see that the first level core benefit of Big Bazaar is to

provide daily needs of the people at one place. As we know that Big

Bazaar is very wide and has all products like food items, perishable

products, clothing, apparels etc.

Second is Basic Product wherein Big Bazaar tries to serve all these with

wide range of options to choose. For e.g. If a customer wants to buy a

shampoo, in Big Bazaar they will have lots of choices of all the brands

like Head & Shoulders, Pantene, Dove etc… Customer here gets wide

range of any product what they want to buy.

The third is Expected Product. Here the customer expects discounts,

allowances, additional benefits as they think that this is such a big

place wherein all the products are available, so some discounts can be

offered to them. For e.g. If a customer purchases many items of his


Exceeding the expectations

Discounts & Allownaces

Serving them more widely

Providing Daily Needs

home needs and personal needs, then they will expect to get some

discounts and off on some products.

Fourth is Augmented Product. Here Big Bazaar is on the level of

serving the Augmented Product. As we know something which exceeds

customer expectations that is known as Augmented Product. Here Big

Bazaar give the facility of home delivery to the customers at their

convenient time at their home. This is something which customers of

Big Bazaar had never expected. And they are very well satisfied with

this service provided to them.

And now Potential Product, which is not shown in that diagram because

still Big Bazaar has not yet reached that level of exceeding the

Augmented service provided by them to their customers. In future they

can undergo some more transformations of their products and services

and then it can reach the fifth level.

There many companies including Big Bazaar who are trying to find

something new for the customers. Potential Product is something very

different from what they provide. Companies are still between

Expected & Augmented product level. As any company including Big

Bazaar reaches the Augmented Level that is very soon accepted by the

customers and they start expecting to get this service for the lifetime

and thus this augmented product turned into expected product. Thus

again they have to search for new Augmented product to be served to

the customers which exceed their expectation.

On this level continuous competitions is to be faced by the marketers

to sell their product and maintain their position in the market. Also

they have to maintain trust and expectations of their customers. They

cannot afford to lose their customers on this level.


Product Classifications

Marketers have classified the product into different categories:-

As we can see in the above diagram that products are classified in

three categories that is Durability, Tangibility and Consumer or

Industrial. All these have an appropriate marketing strategy.


Product

Durability Tangibility Consumer or Industrial

Nondurable Goods: These are tangible goods and are consumed in one

or few uses, for e.g. Soft Drinks, Juices, Soaps, Shampoos, Milk etc…

These goods are purchased more frequently and therefore marketers

decide to make them available in lots of quantity and with lots of

options available to customers. This helps customers to choose from

wide range available.

Durable:- These also are tangible and survive for many uses. Like

Refrigerator, tools, clothing etc…

Services :- These are intangible.

Big Bazaar provides all the kind of products durable and non durable.

Food items, perishable products, clothing, apparel etc…

Then use of goods that is consumer or industrial. Big Bazaar provides

goods which are Consumer goods. Convenience goods are purchased

more frequently by customers as it takes minimum effort to buy. Also it

provides shopping goods which customers buy after comparing the

price, quality, style. Then comes unsought goods which customer

knows about but they don’t think much of buying those kind of goods.

For e.g. Life Insurance.


Durability

Durable Nondurable Service

Tangibility

Product Mix

A product system is a group of different but related items that function

in a compatible manner. Under this product system there is product

mix.

A Product Mix is set of all the product and items a particular seller

offers to sell. It is also called Product Assortment. A company’s product

mix has certain length, width & depth of its products.


Product Mix

Length Width Depth

Firstly let us see what is length, width and depth of the product with an

example. Here we will take the example of Future Group.

As we can see in the above diagram that there are four things in width

of future group.


Width of Future Group

Retail

Services

Finance

Partnership

Now let us see Length of each:-

Length of Retail:

Lifestyle includes Brand Factory, Central, Home Town, Planet Sports,

Pantaloons fresh fashion.

Value includes Big Bazaar, Food Bazaar, Fairprice.

Digital includes Future Bazaar.com. This is online shopping facility

provided to the customers to get more benefit.


Lifestyle

Value

Digital

Length of Finance:-

Finance has different section that is Future capital holdings. In this

capital is provided to small companies who require finance.

Future Generali has two sectors General Insurance & Life Insurance.

Future Venture has tie ups with many other brands to make it more

popular and give customers a wide range to choose from. The most

popular venture of Future Group was with Aadhar Retailing Limited.

This was a venture for rural areas and to serve people of rural areas.


Finance

Future Capital

Holdings

Future Generali

Future Venture

.

Length of Services:-

Future Group has many learning programs for the people in tie up with

IGNOU.

It has also launched India’s first owned retail channel named Future Tv

Also it has launched a magazine named My World.

It has tie up with many Brands to widen the range and give people

many options.

It has tie up with Tata Docomo and is serving T24.

Length of Partnership:- This is different types covered of future group in

which ways they carry over their partnerships.


Logistics & supply

Learning & Development Media

Brands Telephony

Here they Collaborate with many service providers & other big names

of products. They join hands to build the brand and widen the range of

their product list.


Collaborations

Assistnace

Brand Building

PRICING STRATEGIES

PRICE MIX:-

Value pricing

Psychological pricing

Loss leader

Explanation:-

Value pricing:- value pricing means company wants to win loyal

customers by changing a fairly low price for a high-quality offering.

Same way big bazaar do the same thing big bazaar give lots of

discount to attract the customer so that they can get good quality

product in low price.

Psychological value:- psychological value pricing means that the

seller use this to attract its customer by keeping less numerical value

so that psychologically customer thing that there they are saving some

amount then other place eg they are getting thing in 111,999,9999 or

they use that by giving high and low price of the commodity and

saying save Rs 2 or 3 there they are playing with the mind of the

customer very easily.


http://saleraja.com/wp-content/uploads/2008/06/furniture-bazaar.png

Loss leader:- big bazaar is also applying loss leader value in loss

leader the company is bearing loss of one product for selling the

another product like big bazaar give so many time offer like buy one

get one free and they are doing this because some time they have to

clear there dead stock so that by not getting any price of the

commodity at least they get something of the commodity or product.


http://saleraja.com/wp-content/uploads/2008/11/big-bazaar4.png


http://www.saleraja.com/wp-content/uploads/2008/03/bigbazzar.png

http://saleraja.com/wp-content/uploads/2008/12/big-bazaar.png

DISTRIBUTION STRATEGIES

The producer and the final customer are part of every channel. We will

use the number of intermediary levels to designate the length of a

channel. Figure illustrates several consumer-goods marketing channels of

different lengths.

A zero-level channel (also called a direct-marketing channel) consists of a

manufacturer selling directly to the final customer through Internet

selling, door-to-door sales, home parties, mail order, telemarketing, TV

selling, manufacturer-owned stores, and other methods.

A one-level channel contains one selling intermediary, such as a retailer.

A two-level channel contains two intermediaries; a three-level channel

contains three intermediaries. From the producer’s point of view,

obtaining information about end users and exercising control becomes

more difficult as the number of channel levels increases.

Big Bazaar is following one level distribution channel in which it performs

role of retailer and purchase goods directly from producer and then sell it

to the customer. Distribution channel is one of the reason why Big Bazaar

is able to sell product at lower cost. The chart given below shows the

following:-


PROMOTION MIX

Promotion Mix is a system wherein different types of methods are

followed to promote a product and make it popular. Future Group also

undertakes Promotion Mix for Big Bazaar. There is thin line difference

between Advertisement and Promotion. Let us see each in detail:-

For Advertisement Big Bazaar choose Television Ads, pamphlets, FM

radio in metro cities. They keep showing about new offers for the

customers. Also with the help of Internet, Brochures & Direct Mail Big

Bazaar try to attract their customers more and more.

The second is Promotion of the product. It has to be decided how to

promote the product in what ways and with different tools available.

Big Bazaar choose to promote themselves by providing its customers

discount coupons, Membership Cards, On time Home Delivery, cash

refund offers, Price Packs, Gifts, Points redeem option to get more

discount, Organizing different contest, Product warranties. All these are

opted by Big Bazaar to promote themselves.

Big Bazaar provides some or other scheme and offers for the customer

every time one after other to attract the customers and maintain their

value with them.

Promotion Mix plays a very important role for any companies

development. This helps to establish themselves and maintain their

position in the market.


PACKAGING AND LABELING

PACKAGING:-

Packaging is defined as all the activities of designing and producing

the container for a product. Packages might include up to three levels of

material. Like big bazaar have their packaging of their polybag which they

give to their customer when they shop from there store and go home

packaging is also a sign of remembrance or for promotion of the shopping

centre name or product name. For some company they take packaging very

seriously and they say that packaging is very crucial part of their product.

LABELING:-

The label may be a simple tag attached to the product or an

elaborately designed graphic that is part of the package. It might carry only

the brand name, or a great deal of information. Even if the seller prefers a

simple label, the law may require more. As big bazaar has some of their

brands name sach, treat etc. They also contains label on the back side which

is shown in picture of sach toned milk label helps the customer to now that

whether the product is healthy or not and what kind of ingredients it contain.


REFERENCES

Search engine :- WWW.GOOGLE.COM

WEBSITES :- WWW.FUTUREGROUP.IN

HTTP://EN.WIKIPEDIA.ORG/WIKI/FUTURE_GROUP


http://EN.WIKIPEDIA.ORG/WIKI/FUTURE_GROUP

http://WWW.FUTUREGROUP.IN/

http://WWW.GOOGLE.COM/


Thank

You

Marketing Management Report on Future Group

Education

Transcript of Marketing Management Report on Future Group