04/11/23 1

Archit Soni (Roll No. 30) Shivani Joshi (Roll No. 8) Kunal Shah (Roll No.27) Mehul Raval (Roll No.22)Rubina Pathan (Roll No.20)

Submitted To :Prof. Rohita Dwivedi

Flow of Information

Company Background Core Values Target Audience Porter’s 5 forces Model SWOT Analysis BCG Matrix

7P’s Food Bazaar SCM Organization

Structure Financial Aspects

Type Hypermarket

Founded 2001

Headquarters Jogeshwari, Mumbai

Industry Retail

Products Department, Grocery store

Promoter Kishore Biyani

Parent Pantaloon Retail India Ltd.

Punch line ‘Is se sasta aur accha kahin nahin’

Stores Outlets 133 Nos.

Vision

Mission

“To deliver everything, Everywhere, Every time to Every Indian customer in most profitable manner ”

creating and executing future scenarios in the consumption space leading to economic development be the trendsetters in evolving delivery formats, creating retail realty, making consumption affordable for all customer segments

Core Values

Indian-nessLeadershipRespect and HumilityIntrospectionOpennessValuing and NurturingRelationshipsSimplicity and PositivityAdaptabilityFlow

Understands needs of Indian customers.

Traditional bazaar ambience.

One stop shopping at discounted prices.

Provides Best Products at the Best Prices.

Targets price conscious majority segment of customers.

Cater to every possible retail need of a consumer.

Economies of Scale.

Target Audience

Middle and upper-middle class customers.

The large and growing young working population.

working women and home makers who are the primary decision makers.

Porter’s 5 Forces Model

Analysis

Rivalry among the competitor: Reliance retail, Aditya Birla Group, Vishal retail

Threat of entrants: FDI policy not favorable for international players. Domestic conglomerates looking to start retail

chains. International players looking to foray India

Threat of substitutes: Unorganized retail

Analysis

Bargaining power of supplier:The bargaining power of suppliers varies depending upon the target segment.The unorganized sector has a dominant position.There are few players who have a slight edge over others on account of being established players and enjoying brand distinction.

Bargaining power of buyers:Consumers are price sensitiveAvailability of more choice.

SWOT Analysis

Strengths

• High Brand Equity in evolving Retail Markets

• State-of-Art Infrastructure of the outlets

• POP (to increase the purchase)

• Early entry in the Retail Market

• Diversified business in India

• One stop shop for variety of products, increasing customer time and available choices

Weaknesses

• High attrition rate

• Unable to meet store opening target so far

• Falling revenue per square feet

• Employees need more training in handling esteemed customer

• Very thin margin

• High cost of operation due to large fixed costs

Cont…SWOT Analysis

Cont…SWOT Analysis

Opportunities

• Organized retail is just 4.15% of the total pie

• Huge potential rural market to be trapped

• Evolving customer preferences in recent years

Threats

• Many major players are foraying in the retail sector

• Unorganized retail sector of India

• Government policies

• Customer may lose their trust on the company due to supply of substandard products

• Margin of business reducing all the time

Life cycle of Big Bazaar

SALES

MARKET

GROWTH

Market ShareHigh

LOW

HIGH

Low

Big Bazaar At BCG Matrix

MARKET

GROWTH

HIGH

LOW

MARKET

GROWTH

HIGH

Low

LOW

MARKET

GROWTH

HIGH

High Low

LOW

MARKET

GROWTH

HIGH

Market ShareHigh Low

LOW

MARKET

GROWTH

HIGH

HighMarket Share

High LowMarket Share

High

MARKET

GROWTH

LowMarket Share

High

LOW

MARKET

GROWTH

LowMarket Share

High

HIGH

LOW

MARKET

GROWTH

LowMarket Share

HighMarket Share

High LowMarket Share

High

MARKET

GROWTH

LowMarket Share

High

LOW

MARKET

GROWTH

LowHigh

HIGH

LOW

MARKET

GROWTH

LowHigh

HIGH

LOW

MARKET

GROWTH

LowHigh

7 P’s Of

•Shampoo•Detergent•Soap•Liquid Wash•Creams•Deodrant•Home cleaners•Utensils•Crokery•Bundles

•Soft drink•Packaged juice•Milk Items•Frozen foods•Ice creams

1.Product Mix

Living Room Bed Room Kitchen Dinning Rooms Kids Room Been Bags Paintings Decorative Items

Product Mix Cont..

2.Pricing

Value pricing Promotional pricing

Low interest financing Psychological discountingSpecial event pricing

Differentiated Pricing Time pricing

Bundling

Value Pricing (Every Day Low Pricing) Promises customer the lowest available price without coupon clippings,

waiting for discount promotions or comparison shopping

Psychological Pricing Low Interest Financing

Special Event Pricing Big Bazaar also caters on Special Event Pricing on festival season like Diwali, Gudi Padwa, etc.

Time pricing Difference in rates based on peak and non-peak hours or days of shopping

Bundling

Selling combo-packs and offering discount to customers. The combo packs add value to customer

3.Place

Number of out let- 133 till Aug 2010

Located at main city-tier I & tier city-II;

Area-10,000sq ft- 120000 sqft;

High street area of city

Approachable destination.

4.Promotion

Below the line PromotionAbove the line PromotionBrand endorsementsAdvertisementsExchange offerWednesday bazaarSab se saste teen dinShakti cardFuture card

27

Promotional Offers

5.People

Well trained staff. Appearance. Empowered individual. Encouraged to think out of

box. Use Scenario Planning as

a tool for Quick Decision Making.

It deals with the final deliverable or the display of written facts. This includes the current system and available facilities.

6.Physical Evidence

7.Process

The goods’ dispatch and purchasing area has certain salient features

Multiple counters with trolleys to carry the items purchased. Proper display / posters of the place like (DAL, SOAP, etc.).Home delivery counters also started at many places.

Process

Positioning High

service

low service

Low price High price

Big BazaarSupercenteres(>75,000 sq ft)

Future Strategy of

“Itna bada a/c shop, trolleys jisme apna

samaan aur chote bacche dono sama jate hain,

thakaan to zara bhi nahin hota”

“Kya variety hain! Jo kahin bhi na

mile idhar zaroor milega”

“We always get extra bags from Big

Bazaar…gives a good impression to be seen with the

bag”

“There is something for myhusband, my kid

and me”

“Superior quality at a reasonable

price”

“Khaali haath nahin

lautenge!!!”

All visitors-women

“Discounts are always on”

“Pahle baar dar laga… socha bahut

expensive hoga. But reasonable

Prices dekhe bahut khushi hui”

kapde bhi reasonable hain…T-Shirts, trousers itne bhi mehenge nahin hain”

What Customer Love About The Store

Parking Ambience & Decor

Encouraging Loyalty

Launched ICICI bank co-branded credit cardFor every Rs.100 spent, 4 points are rewardedThen, loyalty points converted to a gift voucher at every 500 markEach gift voucher is accompanied with another one worth Rs 100Personalise offers based on the aboveOffer free home delivery and special discount on occasions like Birthdays & anniversaries to the card holders

Private Label Brands

Food Bazaar

Food Bazaar

Average area, 5000 square feet of retail spaceModelled on the Indian MandliSo, Customer can touch, feel and choose productsLocal flavours and varieties are made availableLaunched Food Bazaar masalas, tea and premium harvest pulsesPlanning to expand independently as a part of Future Group

Product Categories

Processed Food & Non processed foodContribute 60% of salesIncludes large no. of FMCG productsImported products, Health food, Speciality food

Dry StaplesContributes 30% of salesDry groceries like rice, wheat, dal, spices, etc

Wet StaplesContributes 10% of salesFruits and vegetables

- SUPPLY CHAIN BIG BAZAAR

Supplier

Warehouse

Inspection

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Supplier

Supplier

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Shelves

Quality Check

Inspection

Managing the Supply Chain

Supply Chain Management

An indent will be kept by the front end team of a particular department to category team of central office. The category team will raise a Stock Transfer Out(STO) and send it to the Delivery Centre(DC) or Warehouse.The DC will generate stock picks & starts picking, Stock Transfer Note(STN) and Gate pass. DC will transfer the stock to stores. Here starts the part of logistics.

Logistics

Logistics is a part of supply chain management which deals with the In warding and out warding of goods as well as non saleable items.

Reception of Goods from DC

Checks for seal condition & number as mentioned in the Gate pass, delivery noteInforms particular department about reception of goodChecks the items in front of particular dept’s team members stock transfer number wiseif any discrepancy has occurred & informs to supply siteEnter all the details in Inward register as well as in the systemsmoves the stocks to the floor

Reception of Goods from Vendor

Check for TAX, Invoice & Purchase OrderVendor himself has to go to the respective department & takes permission for the submission of goods in LogisticsPrepares GRN note in 3 copies for logistics, respective department, DC/Vendor departments have to Collect their respective goods from logistics. All the above process is for In-warding also

Few Cases In Which Out warding is done

Home DeliveryStore to Store TransferDamager or Expiry Stock Transfer to Warehouse or VenderReturn of Salable items

Registered Maintained By Logistics

Food Bazaar OutwardBig Bazaar OutwardVendor Schedule RegisterBar Code RegisterFree Gift RegisterScrap RegisterVendor Security RegisterWarehouse Security Register

Organisation Structure

Flat Structure

Store Manager

Asst Store Manager

Deputy Manager

Asst. DM

Team Leader

Team Member

HR Manager

CSD

Visual Merchandising

Asst. DM

Administration

Maintenance

House Keeping

Info

Security

Marketing

Sales Manager

Cashier

50

Financial Aspects

Balance Sheet(Rs.Crore)

Owner's fundEquity share capital 38.06 31.86 29.35 26.88 22.00Share application money 22.88 63.26 0.01 - 3.00Preference share capital - - - - -Reserves & surplus 2,211.48 1,751.50 1,062.82 500.02 196.53Loan funds

Secured loans 2,525.53 1,991.77 951.93 428.1 256.17Unsecured loans 324.86 200.01 347.65 173.29 30.04

Fixed assetsGross block 1,876.45 1,368.76 767.07 366.01 251.1Less : revaluation reserve - - - - -Less : accumulated depreciation 307.69 170.59 92.47 56.58 37.36Net block 1,568.76 1,198.17 674.6 309.43 213.74Capital work-in-progress 345.23 330.64 131.13 86.06 15.79Investments 954.03 586.52 252.01 140.62 31.92Net current assets

Current assets, loans & advances 3,285.51 2,655.76 1,751.44 884.12 405.17Less : current liabilities & provisions 1,030.72 732.69 417.42 291.94 159.16Total net current assets 2,254.79 1,923.07 1,334.02 592.18 246.01Miscellaneous expenses not written - - - - 0.28

Book value of unquoted investments 875.42 507.91 243.12 131.73 23.08Market value of quoted investments 928.58 1,114.04 27.44 38.99 31.8Contingent liabilities 139.94 133.44 160.57 36.66 5.06Number of equity sharesoutstanding (Lacs) 1903.21 1592.92 1467.51 268.85 219.98

5,122.81Total

5,122.81 4,038.40

507.731,128.292,391.764,038.40

Uses of Funds

Total 2,391.76 1,128.29 507.73

Sources of funds Jun ' 09 Jun ' 08 Jun ' 07 Jun ' 06 Jun ' 05

Profit & Loss Account(Rs.Crore)

Jun ' 09 Jun ' 08 Jun ' 07 Jun ' 06 Jun ' 05

IncomeOperating income 6,661.42 5,295.88 3,393.47 1,960.86 1,084.11

ExpensesMatrial Consumed 4,481.95 3,556.21 2,239.53 1,268.15 716.49Manufacturing expenses  115.91 100.66 78.15 58.96 37.48Personnel expenses 275.94 275.78 207.74 112.72 50.75Selling expenses 443.36 372.54 291.72 170.07 90.71Adminstrative expenses 672.01 527.28 358.38 198.69 104.20Expenses capitalised - - - - -Cost of sales 5,989.17 4,832.47 3,175.52 1,808.58 999.63Operating profit 672.25 463.41 217.95 152.28 84.48Other recurring income 12.08 30.93 4.36 3.93 3.31 Adjusted PBDIT 684.33 494.34 222.31 156.21 87.78 Financial expenses 317.76 201.45 95.93 43.22 26.08 Depreciation  140.05 83.39 36.86 20.82 13.33 Other write offs - - - - 0.12 Adjusted PBT 226.52 209.50 89.52 92.18 48.24 Tax charges  75.38 69.68 60.96 27.67 14.54 Adjusted PAT 151.14 139.82 28.56 64.52 33.71Non recurring items (10.29) (13.88) 91.49 (0.25) 4.79 Other non cash adjustments (0.27) 0.03 (0.06) (0.11) 0.05 Reported net profit 140.58 125.97 119.99 64.16 38.55Earnigs before appropriation 408.14 341.73 236.58 130.66 76.63 Equity dividend 11.57 10.67 7.54 6.72 5.50 Preference dividend - - - - -Dividend tax 1.97 1.81 1.28 0.94 0.77 Retained earnings 394.6 329.25 227.76 123 70.36

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