Posted at 12.15.2018
Future Group concentrates most in the retail segment and almost all of its companies are built about the same. Future Group's retail network performs 1, 000 stores for more than 200 million Indians in 73 metropolitan areas and 65 rural locations in the united states in 16 million rectangular feet of retail space.
Some of the most popular retail chains of India like Pantaloons (chain of fashion areas), Big Bazaar (hypermarket chain), Food Bazaar (supermarket chain) and Central (string of seamless vacation spot department stores) Brand Stock, Planet Sports activities, ALL, Top 10 10 and Legend and Sitara are managed by Future group. India's most popular online shopping portal www. futurebazaar. com is also held by the near future Group.
Home building and home improvement products and services are also led through the group's types, like the house Town (large-format home alternatives store), Collection i (formats specialized for household furniture and home furnishing) and Furniture Bazaar and gadgets through eZone and Electronics Bazaar.
Aadhaar, India's leading rural retailing chain has a existence in more than 65 rural locations. It acts as a full solution professional for the Indian farmer.
Pantaloon Retail (India) Small is one of the leading sellers in India. Mr. Kishore Biyani, is the creator and it is famously known as India's "King of Retail". Pantaloon has revolutionized the retail fraternity. With it's headquarter in Mumbai, Pantaloons runs multiple retail types in value and lifestyle segment. Pantaloons programs to increase it's retail space to 30 million sq. ft. by 2011. PRIL is sub-divided into:
2001 - India's first hypermarket chain - Big bazaar is launched
2002 - Food bazaar, a supermarket chain is launched
2006 - Future group's financial arm, Future capital holdings launches two real real estate funds
"High fashion" family division, aimed toward Indian midsection and higher classes. In 2005, pantaloons rolled out a fresh goods and brand communication plan to position itself as fashion trendsetter appeal to India's children.
It is put as a location for shopping, eat and enjoying.
Big Bazaar hypermarket theory was started in 2007 by PRIL. It was designed to integrate components of an Indian bazaar with recent retailing features like auto parking of vehicles, AC shopping environment and privilege of replacing merchandise.
The first shop of Food Bazaar opened up in June 2002, inside a Big Bazaar store, six month later the string had harvested to 42 retailers: 18 stand alone.
Future Group's main businesses are :
Futurebazaar. com, Pantaloons website has transformed the e-commerce business in India. An array of products are made offered by affordable prices. PC World has named the website as the Best Indian Website for 2007 in the Shopping category.
In the food section, a lot of options are available like -
Food Bazaar - String of large very markets
Brew Club - It's a beer bar
Caf Bollywood -It's a eateries string which is PAN India
Chamosa - Snack counter
Sports Bar - A Bistro which is dedicated to the sports activities world
Varieties of options are available in this section like Top 10, Central, Blue Sky, Etam, Fashion Station, Gini, Jony, Navaras and everything.
Furniture store called Collection i
Electronic goods and devices store called Electronics Bazaar
Electronics Items store called e-zone
Home furniture store called Furniture Bazaar
One vacation spot for all home needs called Home Town
A family entertainment center called Bowling Co.
A store offering games options from bowling, pool, video gaming to bumper vehicles called F 123
Health Village - From the yoga centre as well a spa
Star & Sitara: A cosmetic salon for men and women
Tulsi - Allopathic, holistic and ayurvedic therapeutic products are provided
Turmeric - Cosmetics like colour cosmetics, fragrances, organic and natural and specialty pores and skin items, hair products and bath tub accessories can be found.
Depot - It offers stationary, CD's and literature
2007 - International Dealer of the Year
2007 - Appearing market Dealer of the Year
2007 - Relating to Hewitt Best Employers Survey - Best Employers in India (Ranking 14th)
2006 - Best Managed Company in India (Mid-cap) for the year
2006 - Image Retail Honors for COST EFFECTIVE Retail Store, Best Retail Vacation spot, and Best Food & Grocery Store.
The Black gap model is also called The Retail EST Model. It was developed by J. C Williams Group. Corresponding to this model a shop can gain if he's the best in another of the several retail offerings i. e to say that the business is clearly positioned in one or more preferred locations to gain and therefore they are the proper differentiators. The losers gravitate to central position, aren't best at anything and are sucked into the black gap of retailing
"We have a store opening virtually every fortnight; I have lost count up now of how many I have opened"
Big Bazaar - A paradigm transfer to the Modern Retail
Big Bazaar is a device of Pantaloon Retail (India) Ltd and suits the fantastic Indian MIDDLE INCOME. It is like an Indian bazaar or mandi or mela, the surroundings created by traders to give buyers a feeling of moment in time. The personality of big bazaar is one of any entity being authentically "no-frills". The personality of the brand is self portrayed by its tagline -
'Is se sasta aur accha kahin nahi'
It sells a number of items at affordable rates, the prices of which it says are minimum in the town. Usually the items are clubbed collectively for offers as on the lines of Wal-Mart and Carrefour, offer weekend discounts and works on a single overall economy model as Wal-Mart and has considerable success in many Indian locations and small cities.
Food Bazaar format was added as Shop-In-Shop within Big Bazaar in the entire year 2002. Big Bazaar and Food Bazaar combine the appearance, feel and touch of Indian Bazaar with modern retail principles of choice, convenience and quality.
Higher and top middle income customers will be the target portion of Big bazaar.
Another preferred customer portion is the young and growing population of the country.
Big bazaar mainly targets the women folk and home makers who they feel will be the primary decision designers.
Product range comprising more than 20, 000 products.
Has a solid supply chain spanning one thousand five hundred cities and towns in India.
Big bazaar has tie ups with world leaders in logistical services.
Big bazaar has generated a helpline for handling the inquiries of customers.
Offers manufacturer's guarantee as opposed to seller's guarantee.
Good quality at acceptable cost.
Minimize retailing cost.
Minimize operating bills by employing fewer floor personnel -one person for each and every 500 sq ft.
Keep furniture cost to minimum.
Cut down bills related to sourcing by almost 25-30%.
Increasing the overall efficiency of logistics by creating mother-hubs all over India for the intended purpose of sourcing products from local/local sellers.
Slashing channel cost by up to 25%.
Economizing Shelf Space
Dealing with unsold stock in a powerful manner.
Ensuring enough draw to snatch away customers from the neighbourhood.
Introducing the idea of 'today's price' wherein a products is chosen on a regular basis and sold at lower than common price.
Big Bazaar's New Marketing Strategy: A fresh marketing strategy, based on guerrilla marketing has been launched by big bazaar. The guerrilla pressure is split into small categories to selectively harm the prospective at its weak points. As part of this plan Future group has come up with three catchy and cocky advertising campaign campaigns.
Keep West-a-Side. Make a smart choice!
Shoppers! Stop. Make a good choice!
Change Your Lifestyle. Make a smart choice!
A stable federal at the centre creates an motivating investment climate
Problems of getting subsidy from Octrai and on different fees like land, normal water taxes
A less complicated taxation structure(GST) on the horizon.
Problems regarding taking over properties and real property.
Easing restrictions on FDI by the government leading to easier transfer of foreign consumer goods, therefore delivering variety to the Indian market place.
India is one of the fastest growing economies, next and then China (7-7. 5% GDP growth rate).
Retail Industry to expand leaps and bounds by 2015 due to the consumption driven economy of the united states.
Increase in the percentage contribution of the service sector to GDP.
Increased focus on infrastructural growth in the current 5 year plan will help reduce a few of the bottlenecks in the retail section.
Increase in Nuclear families
Increase in working women's proposition
Life style changes
Shift in Product and service preferences
Increase in Young population giving the united states a demographic advantage
Technological development for fast billing and the service
Better applications of it in the modern retail industry, like in resource chain management, store management, point of sale and customer romantic relationship management
There is an array of products on offer at Big-bazaar, ranging from apparels, food, farm products, furniture, child care, toys, etc. Products of all the major brands can be found at Big Bazaar. A lot of internal brands (private product labels) are also advertised by Big Bazaar.
The tag-line of Big Bazaar is "Is se sasta aur accha aur kahin nahi". The model which Big bazaar works is one of 'economies of size'. "Maximum Market Share" (market penetration charges) is the major aim of costing at Big bazaar.
Big-bazaar has a pan India presence with an increase of than seventy-five outlet stores spread across fifty locations. Big Bazaar has presence in almost all the major Indian locations. Kishore Biyani is very extreme as it pertains to expansion ideas of Big bazaar. According to Biyani, the price of real house should preferably be less than 5% of total sales of store if one needs to provide obtain the most to customers. Securing areas before other merchants join in has been a strategic decision of Big bazaar which includes led to cost-saving.
Many novel cross sell and upsell strategies have been developed by Big bazaar in Indian retail market. Big Bazaar uses various promotional techniques such as "saal ke sabse saste teen din", Future greeting card, Shakti credit card, using M. S. Dhoni as brand ambassador, Exchange offers such as 'junk swap' offer, POP promotions.
Print media, TV, Radio (FM) and road-side bill-boards are some of the countless means utilized by Big bazaar for advertizing and effective communication.
People are considered to be one of the key assets in virtually any corporation and their importance is even more serious in the service sector. Big bazaar's personnel has some salient features such as: -
The personnel is well trained for modern retail.
Innovative thinking among the employees is motivated at Big bazaar.
Multiple payment counters, option of store's staff for keeping baggage and existence of security shield at every gate.
Some of the salient top features of dispatch and purchasing area of goods include : -
Trolleys are for sale to hauling purchased items & sufficient nos of counters for easy check-out can be found.
Information hoardings/banners for efficient id of items at store
It handles the final deliverable or the exhibit of written facts.
The staff has standardized dress code to enhance the overall look of the store (atmospherics).
FINANCIAL Research of PRIL -
Total earnings have constantly been increasing. This is partially due to the increasing sales caused by aggressive expansion plans (checking of outlet stores) of PRIL.
PAT in addition has been on steady rise though it has flattened a bit in recent years probably due to raised operating costs, inability to transfer the increased expense to the customer etc.
EPS in addition has been on a reliable rise aside from a single occasion in 2007 when it went down. The reason could be a rights concern or other similar action resulting in collateral dilution.
The return on capital applied has been lessening YoY. This could because of matter for the business.
The debt equity ratio has not been too volatile and has always been below 2 which is an indication of reasonable financial position of the business.
Aggressive Marketing: Promotions
The promotional activity of the business, which says 'No person Offers Cheaper and Better!' has differentiated Big-Bazaar (as a brand) in the minds of the client. The punch-line has made its place in minds of customer. As your competition is becoming stiff in the market the actions conducted by the business are unique, that have brought fruitful lead to the company. Among them sales Special offers is one of the leading activity or unique among all other activities & has high affect on the client walk-in.
As sales promotions is the major push for Big-Bazaar, Big Bazaar take it very significantly & especially during celebrations & special situations by focussing aggressively on internal & emotional advertising strategies according to the demographic profile of the many consumers.
About 60-70% of shopping for clothes, consumer durables, and home furnishing, among other activities, happen during celebrations. At least 40-50% takes place through the peak celebration season, between September and November.
According to Ashni Biyani, 23, a team is established half a year ago comprising experts on Indian mythology and faith, retail and even a specialist on "days", "seriously targeted" one-third of the 150 auspicious times in the Hindu calendar.
They map all the areas in India about how they shop and how these calendars work. They focus to understand intuitively, their customs, their rituals, adding that is the part of a more substantial strategy to employ customers and to attract "that India which lives in the deep-rooted communities".
The best watershed for brand Big Bazaar was the launch of the "Sabse Sasta Din" in January 2005, when the Indian Republic Day trip was utilized to make certain that hordes of consumers descended on all Big Bazaars across the country to buy all types of home items - cheap. There were scenes of customers actually vigorously struggling over items in-store & long queues were seen in the store.
Big Bazaar like prior years, captivated large crowds during its three day 'sales' event called 'Sabse Saste 3 Din' organised to celebrate the Republic Day. Depending on the results, the function is sometimes lengthened to 5-6 days and nights as it happened in 2008.
The promotional event being organised by Big Bazaar yearly has assumed great relevance over time. A large number of customers look forward to this event as hefty discounts on a variety of products can be found to the customers in partnership with the retail chain's sellers at this juncture.
This is, perhaps, the biggest sales event being organised by any dealer in the country. Big Bazaar, which sold products well worth Rs 140 crores in 2007, garnered earnings of over Rs. 280 crores during the yr 2008 & the development still proceeds unexpectedly.
As talked about by Kishore Biyani, the complete concentration is "low margins & pressing volumes" aggressively of these times which make the Big-Bazaar stick to its center Brand-Personality.
One of the very most popular events Thursday Bazaar presents terrific offers and irresistible discounts on most the merchandise.
The Theory was to target at supplying the homemakers the energy to save the most on this day of the week.
Even on weekends when the footfall is the highest, eye-catching discounts and offers are marketed. The weekend marketing promotions differentiated from the Wed bazaar in conditions of the offers & cross-selling and not on reducing the price tag on a specific product.
This way they were able to differentiate both the concepts & give attention to avoiding distress while promoting it to the consumers and also draw in different kind of consumers of these durations.
Maha Bachat Deal: Big Bazaar's incorporates such as on Self-reliance day insurance firms Maha Bachat Sales which did a company of 1 1. 5 crores in its Bangalore store alone. Maha Bachat focuses on further reducing the purchase price when compared with the Thursday Bazaar.
Also on auspicious situations such as Akshaya Tritiya which again do a small business of 150Cr on a single day in Mumbai & Ahmedabad this past year.
An event offering special discounts, benefits and privileges' to older persons were created and marketed on the Senior Citizens Day.
Monthly Bachat Bazaar: Big Bazaar comprehends clearly the behaviors of Indian consumers. In Regular monthly Bachat Bazaar the prices are reduced in the beginning of every month in order to focus on those consumers who mass purchase the products and especially the goods on a monthly basis.
Reinforcing Big Bazaar's USP of value proposition, "Is se sasta aur accha kahin nahi" scheme was launched. The challenges guarantee to offer double the price difference, if the price of the item within the store is available to be greater than the market price.
This doesn't mean that the buyer actually go to other retailers in order to compare the prices, but because of this task of Big-Bazaar, the consumers experienced more faith & trust on the Big-Bazaar and therefore were confident seeing the confidence degree of Big-Bazaar which again built a strong brand differentiation of Big-Bazaar for low pricing.
This promotion primarily focused on making people disposing off their junk and also to gain something out of it in exchange i. e. "Bring anything old & take anything new". They could exchange their products and shop from an enormous spectrum of discounted products.
This offered the inspiration factor to consumers to give their old possessions for something well worth & hence their old is not getting throw away or is unvalued. Since the Indian consumers are very much value mindful, this strategy resolved perfectly. Big-Bazaar also made it sure the campaign is actually not fooling the consumers around and is in fact giving the required value concentrating on the actual fact that "beliefs thrashed is never retrieved" in India.
To ensure that no person misses from an possibility to gain from special offers, service young boys ferry around a trolley with the product inside, announcing the structure. Not only is this entertaining it also helps customers pick up the merchandise from the trolley rather than walking up to the rack where it is on display.
To ensure that non-English speaking customers don't feel alienated, the communication is also conducted in the neighborhood dialect. The communication is often unambiguous and direct.
This initiative induces customers to include One Rupee with their invoice towards donation to a public cause. Big Bazaar makes an equal contribution and donates the complete proceeds for an NGO called Save the Children India. This is a selfless body which has been doing work for the welfare of children from marginalized sections of society.
Big Bazaar has recently launched a commercial campaign which revolves around a family group having an enjoyable experience collectively. The brand anthem "Khushiyon se Bhari Jholi" connects with the clients at an mental level setting Big Bazaar within the happy occasions.
Specifically for Big Bazaar shops these credit-cum-loyalty greeting card which offer customers a slew of special discounts and benefits across Future Group stores are co-branded with ICICI Bank or investment company. Customers get four loyalty tips for each and every Rs 100 spent at Future group's retail stores and one commitment point for each Rs 200 spent outside the group's retail stores. This creates a vicious cycle for the clients to duplicate their buys and is especially done by the consumers during special occasions.
Providing Discounts College related requirements & accessories like college bags, water containers, lunchboxes, shoes etc.
Pencil Case for sale of above Rs 500.
- Free shopping trip well worth Rs 1000/- for Mailing ones experience of the "Best day you had in school" - the most humorous & the best some may be selected as successful and also to avail the offer.
- Lucky get for the lucky kids - shop for Rs 1, 000 & above, drop in your kids name into the drop package - 10 lucky kids were given the offer 30% off by using an NIIT course
- Motivational offer for Kids: Shop for Rs 500 or above, Parents are informed to drop in the youngsters painting, the best painting is sponsored for an art course.
Individual are asked with friends - "more the merrier" - shopping with 1 good friend entitles the average person with 10% discount, arriving with two friends - get 20% discount etc on the full total bill.
Friendship group to every walk-in
A good friend indeed -people were told to drop their finest friends name in the drop-box and in blessed draw the champion could earn the major award - A Car!!
Special treatment & mental connect for the average person & his/her friend -free massage, tattoos, horoscope etc were provided for purchases above Rs 500/- & above during the a friendly relationship day.
This campaign especially remains wide open for longer duration
Huge discounts are seen in the board
If purchase is above Rs 300/- two pairs of diya were provided to the customers
Tie up with known mithaiwala: if one acquisitions above 1000/- people can avail discounts of 45% or above on the mithai purchased from that mithaiwala.
Motivating the house made mithai recepies: Purchasing goods worthy of Rs 500 & above, females were taken to send the formula of their top secret mithai & the best judged formula gets an entire set of Sanjeev Kapoor's cook-books
Diwali Manao Abroad - receiving through lucky sketch on purchases price Rs 1, 000 or above.
Across the plank discounts.
Big Bazaar's special shock Christmas present on purchase of over Rs 1000/- or above.
Christmas-Card Design Competition: Design next year's Christmas cards for children and a present voucher worthy of Rs. 500 were given to the best credit card winner.
Big Bazaar Holiday party focussing on tips & vouchers through celebration focussed games.
All the special discounts/offers were hiked up in a fixed hr of the day eg: Buy X and get Rs 10 off on that day can be Rs 15 off.
Everyday, one individual is tagged as the unknown shopper i. e. a) 100th person walking through the door putting on all red b) 1st person walking through the door using all red - These person provides the discount of 50% on the total bill.
"Apke kismat mein hai khushi": Lucky is happy
Based on damage card
Get all that you select in 60 seconds till reaching the billing counter
Assured gift idea for the bulk takers:
Choose a surprise from the posted items if the charge is above 1000/-
This is used especially to push the non-moving goods which is usually devote the listed free gift items.
Toy drop package was occur the big-bazaar store and the idea was promoted to require the toys from the young families & then your toys were delivered to the public organisations doing work for underprivileged children's.
This has helped the underprivileged, generate goodwill, and also have also attracted the floor traffic to store at the top scale.
Supporting a charity
Support through charity: Donation to the charity on the individual's name for purchasing above a given amount.
Customers were given an ornament with his or her name on it to hold signifying the donation by the individual.
Advertising for Big-Bazaar is an essential component of brand building.
The advertisement concentrating on brand building of Big-Bazaar is performed through other ways, A number of the techniques applied are: -
Tag Line: One of the key the different parts of Big Bazaar is its Label Lines.
Designed in line with the demographic account of customers to be able to get linked easily with simple one-liners. The capture liners includes "Chane ke bhaw kaaju", "Stall ke bhaw balcony" etc.
Holistic Advertisement: Encourages the brand and creates recognition among people. It isn't targeted at promoting each store but only creates a graphic of Big-Bazaar as low-cost shopping option. The store has publicized through Television set, road-shows and also started truth show typed promotional marketing campaign "The Big Bazaar Challenge" Promotions like "Sabse Sasta Din" is very successful plan to get footfall.
Print-Ads: Just before the introduction of any new strategies Big-Bazaar spends greatly on advertisements on the net media especially papers.
This is performed in order to create a buzz about the big-bazaar brand & its approaching schemes.
TV-Ads: various programs are used properly, also according to the demographics & cultural channels & the strategies, promotions & especially the common brand tag-line is aired in order to produce the surface of the mind awareness
Road side Adverts: As a brand building exercise, big-bazaar shows bill-boards in perfect locations according to the prospective people. Concentrate is more on the phrases which is targeted to the needs of the customers as per the marketplace & conditions at that one point of your energy.
Radio-Ads: The major emphasis through radio advertising is in Tier-1&2 cities. Plus the prime emphasis is given on radio ads for promotions to be able to see customers for all your new happenings & plans at Big-Bazaar.
Fashion-Shows: The latest technology of the Indian iconic brand is "FASHION @ BIG BAZAAR - Desh Badla, Bhesh Badlo". To make an effort to have the style to the masses, a three-day fashion show was prepared by Big-Bazaar on the pavements of Bandra, Mumbai.
Brand Endorsement by Star:
For advertising its brand name, value endorsement co-branding is used by Big Bazaar. Previously Himesh Reshammiya & Sanath Jaisuriya was associated with Big-Bazaar.
Also, recently the existing promotions are being associated & advertised with the Indian cricket ODI captain Mahendra Singh Dhoni.
Heavy spending is completed for proper position of Big Bazaar through the several mediums. Paper advertising are released just before the release of any new system, billboards are exhibited on perfect locations, consistent TVCs are shown in prime amount of time in various Indian channels for the mass, advertisements on FM programs about the existing happenings are aired etc.
Coupon, discount, more of the product at normal price, surprise with purchase, competition, and awards, money back offer, exchange offer, special occasion.
Big Bazaar, in colaboration with Superstar India Pvt Ltd, has launched a assortment of designer ethnic wear under the brand "Star Parivaar".
Advertisements in Newspaper, Tv set, Internet (own website which give online shopping service),
Partnership with Bigfilx, Big FM 92. 7.
Aggressive Costing Strategy
The tag-line is "Is se Sasta aur accha aur kahin nahi" make Big-Bazaar to differentiate itself from competition in conditions of only prices & the worthiness at that price. Hence it creates it very important for the Big-Bazaar to always give attention to the its charges strategies to keep the prices always low compared to the competitors whatever the marketplace, current economic climate or the external conditions is.
They focus on the model of economics of level. There pricing objective is to get "Maximum Market Share".
The various prices techniques used at Big Bazaar are: -
EDLP - EACH DAY Low Pricing:
Big-Bazaar as a brand is differentiated through low costing strategies. Hence it promises & delivers the cheapest available price without stressing on discount clipping, discount special offers ready time, or comparability shopping.
Low interest rate financing is being proposed by Big-Bazaar. Emotional discounting (Rs. 99, Rs. 49, etc. ) strategy can be used as a promotional tool. Special Event pricing (Close to Diwali, Gudi Padva, and Durga Pooja) is also the primary emphasis of big-bazaar for the reasons mentioned in the previous topic.
Big-Bazaar sets prices on the recognized value to the customer, rather than on the actual cost of the merchandise, the marketplace price, rivals' prices, or the historical price.
Also referred to as Time costing, i. e. difference in rate predicated on maximum and non-peak time or days and nights of shopping. This again as a rates technique is utilized in Indian retail, & hence aggressively employed by Big Bazaar.
In order to catch the attention of status-conscious customers and also to push status-consciousness among the middle-class people, psychological pricing idea was undertaken by Big-Bazaar which provided the best package searching for the products which are market-buzz-creators and highly interesting & long-lasting products such as LCD Tv sets, Washing Machines etc.
In order to add more value & provide more benefits to the clients, combo-packs with heavy discounts are served to the customers.
In order to promote the rates differentiation & to gain faith off their customers and hence to increase commitment, Price challenge plan was set up as discussed in the last topic.