Customer Preference Towards Big Bazaar
Indian retail sector is witnessing one of the most hectic Marketing activities of all
times. The companies are fighting to win the hearts of customer. There is always a
first mover advantage in an upcoming sector. This advantage goes to Big bazaar in
India. It has brought about many changes in the buying behavior of people as Big
bazaar provides all items in one roof at low [Link] consumers preferences are
changing & they are moving from shops stores to Modern retail outlet. Its the main
challenge to the Modern retail outlets to attract the customers towards them from that
of competitors. To attract more customers companies have to carry out the
promotional activities in unique way. Big bazaar has maintained that uniqueness &
has succeeded in attracting customers.
The promotional activity of the company, which famous as Less Price than others as it
says Nobody Sells Cheaper and Better! is made its place in minds of customer. As
the competition is becoming stiff in the market the activities conducted by the
company are unique, that have brought fruitful result to the company. Among them
sales Promotions is one of the leading activity or unique among all other activities &
has high influence on the customer [Link] brand through challenge:
In 2001, Pril opened its first 'Big bazaar,' a 30,000 square feet store in Kolkata. The
major USP of the 'Big bazaar,' store was low pricing. These stores offered the best
price proposition to customers.
As part of this, the stores focused less on branded items and more on unbranded
products with the same quality as branded ones, at a much cheaper rate. Commenting
on this, Biyani said, "We are not in the business of selling ambience, but in the
business of giving the best possible deals to our consumers.".The first Food bazaar
was set up in Lower Parel in suburban Mumbai in 2001. Food bazaars represent Pril's
foray into yet another value retailing business, focusing on food and grocery products.
These stores were designed based on Pril's understanding of the emotional and
rational needs of Indian housewives...
The tremendous success of the 'Pantaloons,' 'Big bazaar' and 'Food bazaar' retailing
formats, easily made Pril, the #1 retailer in India by the early 2004, in terms of
turnover and retail area occupied by its [Link] the fiscal year ended June 30, 2003,
PRIL increased its retail area by 66% to 586,000 sq. ft and reported revenues of Rs
4.45 billion, a 56% increase over fiscal 2002. Its net profits rose by 63% to Rs. 114.1
million in fiscal 2002-03, over the previous [Link] Bazaar has positioned itself as a
value for money proposition for Indian family retail store. They wanted to promote
Big Bazaar as a retail store which gives its customers maximum advantage over other
retail stores by catering to all their needs budget wise and income level wise.
Sabse Saste 3 Din (the cheapest 3 days) brain child of Mr. Sadashiv Nayak,
President Big Bazaar and Rajan Malhotra, President - Strategy and Convergence, Big
Bazaar, believe that Consumers are always looking for best value for their money. Big
Bazaar's Sabse Saste 3 Din is a great opportunity for them to save money and gets
best products at the best possible prices. These three days have come to truly signify
freedom from high prices for consumers in the country.
Maha Bachat ( save money) was introduced five years back ( in the year 2006 ) and
it is still running very successfully. It is known as one of Indias mega shopping
campaign. Continuing its efforts to provide the best shopping deals and savings to
Indian consumers, Big Bazaar is always set to make Republic Day and Independence
Days shopping, truly memorable, with rock bottom prices, best possible discounts
and mega [Link] from the flagship Big Bazaar and Food Bazaar stores, other
future group retail formats like Furniture Bazaar, Electronic Bazaar, Depot, and Home
Bazaar stores are also a part of this mega campaign. From daily household needs of
food and grocery to apparels,
Retail Format in India
Hyper marts /supermarkets: large self-servicing outlets offering products from a
variety of categories.
Mom-and-pop stores: they are family owned business catering to small
sections; they are individually handled retail outlets and have a personal touch.
Departmental stores: are general retail merchandisers offering quality products
and services.
Convenience stores: are located in residential areas with slightly higher prices
goods due to the convenience offered.
Shopping malls: the biggest form of retail in India, malls offers customers a
mix of all types of products and services including entertainment and food
under a single roof.
E-trailers: are retailers providing online buying and selling of products and
services.
Discount stores: these are factory outlets that give discount on the MRP.
Vending: it is a relatively new entry, in the retail sector. Here beverages,
snacks and other small items can be bought via vending machine.
Category killers: small specialty stores that offer a variety of categories. They
are known as category killers as they focus on specific categories, such as
electronics and sporting goods. This is also known as Multi Brand Outlets or
MBO's.
Specialty stores: are retail chains dealing in specific categories and provide
deep assortment. Mumbai's Crossword book store and RPG's music world is a
couple of examples.
Tagging Pattern at Big Bazaar
There are three types of tag
Soft tag
Hard tag
String tag
Types of tag
Soft tag
Soft tags are the flat paper tags.
Must always be used on flat clean surfaces.
A tag must be bent, do not bend any of the pink area of the circuit. bend 1 cm on
one side only & no more than 90 degrees.
They should not be used on garments, as they will leave a stain.
These tags should not be put on metal or foil products unless there is at least 1 cm
space between the security tag and the product, or else they wont work.
These tags get deactivated on the deactivation pad.
Hard tag
Has got two specific parts- The pin and the tag.
Used for apparels above Rs.400 and in certain categories on all the items.
Tags will ring only if the pin is inserted properly Never use bent, damaged or rusty
pins while tagging.
The pins can be removed only using a detacher, thus care should be
String Tag
These tags are the hard plastic tags or could be paper sandwich
Tags with a non-deactivable soft tag placed inside.
These tags are reusable like the hard tags
Use only the non-deactivating soft tags
Used on all items below Rs.400 in value and have been
Developed as an alternative to hard tags.
The tags are attached to the item using a hard nylon fastener.
To check if the tags are working, simply place them on
The deactivating pad. If the tag does not beep stop use of the tag.
Reason for success of big bazaar
Sometimes accused of being a Wal-Mart wannabe, Big Bazaar is surely not a Desi
copying an Angrez for sure. It has received great success on its own steam and can be
called our own home grown Indias Wal-mart, even though the comparison is outof-place and unnecessary.
How could Future Groups Big Bazaar achieve what many Angrez companies still
dream to do? There are some very good reasons and learning lessons for all those
who aspire to earn from the buying potential of swelling middle class of India.
1. Big Bazaar has given freedom of choice to those who did not have it in their
life:
Big Bazaars founder Kishore Biyani has popularized the very logical categorization
of India in 3 divisions. India-1 is the Upper middle class, about 14% of the population
that is the actual consuming class. Serving to this India-1 is India-2, forming about
55% of the countrys population. These are drivers, peons, cleaners, maid servants etc.
etc. who have very meager salaries and live a hand-to-mouth existance. The third part
is the balance 31% of India-3, which is struggling for the existence.
The Kirana shops which sell goods, do not offer the choice, ambience, service and of
course the discounts Big Bazaar offers to customers. You imagine going to your
nearby friendly grocer to buy a toilet soap. He will ask you Which one do you
want?. If you know, you get what you what. But, if you want to know how many
new brands, types, sizes are there to choose from, grocer will not be very happy to tell
you or show you all this. Such situation is even worse for those from India-2. They
are not treated very well if asked such questions or trying to get more information,
trying to get a choice.
Big bazaar gave them choice. A freedom to choose. It offers a very wide range of
goods required for daily needs. They can have a look, touch and feel them, compare
and then decide to buy. With the plethora of FMCG items occupying the shelves of
stores, such choice is really convenient and facilitating the buyers. This choice, I
think, is one very important reason for Big Bazaars success.
[Link] Bazaar connects with the masses effectively:
The communication of brand Big bazaar is sharply focused and to-the-point. Big
Bazaar talks in local language. Observe Big bazaars communication.
Isse Sasta Aur Accha Kahin Nahin
Saal Ka Sabse Sasta Din
Hafte ka Sabse Sasta Din
Sell your Bhangar at great rates
Purana Do Naya Lo Badal Dalo
Stall ke Bhaav Balcony
Chane ke Bhaav Kaju
Paise Jodo Kaam Aayenge
All this smart communication has worked wonders. Today also, you observe any of
the advertisements of Big Bazaar competitors. Their tag lines are still in English. This
Angrez attitude does not connect with Indians. Big Bazaar has understood it clearly
and others have not yet woken upto this simple fact, giving Big Bazaar a clear,
distinctive position in customers mind. Big Bazaar is perceived as a store which
knows India and Indians well. Its communication has been successful in achieving
this objective.
[Link] Bazaar has understood its target customer very well:
If you go to a super store in any mall, we may find some very smart boys and girls
greeting us. This may be good for some, but people like me sometimes get frightened
by these fine and smart people, because they are so much better looking than me.
They speak so much better than me. They are dressed much better than me. I get put
off by all this and hence avoiding such stores who have very smart people greeting
me. At Big bazaar, the staff is helpful, but not overtly smart. You dont get frightened
by their style. This is very practical. The customer coming to Big bazaar is of the
middle class If they are greeted by people smarter than them, they feel uncomfortable.
So, Big Bazaar has ensured that customers are not made to feel small by overbearing
staff members. This is one very smart strategy of Big bazaar and it reflects its deep
understanding of the customer psyche.
4) Big Bazaar has understood changes reshaping India very well
With increasing urbanization, more and more people are migrating to cities from
villages. In villages, there are no big stores, but in nearby towns there are
weekly mandi e.g. Somwaari Bazaar, Budhwaaar Bazaar, Ravivaar Bazaar etc. In
such mandi set up, one gets to look, see, touch and feel all the ware that is for sale.
This is what the village customers are habituated to do. When they come to cities,
they had to buy from small kirana shops, where the goods were not displayed freely.
They had to ask for what they want and get away from there. Big Bazaar recreates
that mandi environment for them. It gives them the same open display of all that is
available, and that too, in elegant, clean, air conditioned ambiance with helpful staff to
support the customer.. And I think, this is profoundly important from a customers
point of view. The current demographic shifts happening in India are understood very
well by Big Bazaar and are implemented profitably.
The mythical 50 Crore Indian middle class is a part of many smart projections of
world leader retail giants willing to enter India. But, Kishore Biyani and Big Bazaar
have succeeded in getting to the true understanding of Indian middle class. This a very
important learning lesson for all those who wish to succeed in retail in India.
The Role of macro environment in retail industry
All retail companies operate within a macro environment, or the sphere of influence
outside the company that shapes how companies do business. Unlike the micro
environment of a retail store, companies in the retail industry usually cannot influence
or change the macro environment and must adapt to changes as they arise. The macro
environment includes economic, technological, societal and governmental influences.
A retailer must understand the role of each to compete within the retail industry.
The Role of Technology in the Macro Environment
Technology not only creates new products for retail companies to sell, but also plays a
major role in changing the way retail companies do business. Technological
advancements such as the Internet offer retail customers additional shopping options.
Technology also opens new retail markets, such as the Home Shopping Network and
web-based retailers such as [Link]. Barcoding and computerized billing
systems have improved the retail industry by allowing retailers to develop new
processes that increase efficiency. Point-of-sale systems increase sales by allowing
retailers to process cash, check, credit- and debit-card payments.
The Role of Government
Laws, regulations and other government policies can have a number of positive or
negative effects on the retail industry. Government assistance, such as governmentbacked loans and subsidies, can help fledgling retailers grow or allow an established
company to keep costs low for consumers. However, government policies can also
hinder businesses by imposing regulations that increase costs, such as requiring the
development and integration of new systems or procedures or establishing a minimum
wage that small retailers may not be able to afford. The retail industry also relies
heavily on government-supported road, rail and water transport infrastructure to move
goods and bring customers to retail locations.
The Role of Economic Factors
Retail sales are driven by the economic environment. A robust economy correlates to
an increase in consumers' disposable income, increasing sales and allowing retailers
to sell more valuable goods, such as high-end electronics. On the other hand, a
sluggish economy decreases consumer confidence and can cause people to spend less,
leading to declining sales and forcing retailers to lower prices. Economic and
governmental factors often overlap in areas such as corporate taxation, import and
export laws, and inflation, which can decrease consumer purchasing power.
The Role of Social Factors
Changes in social values and trends impact the goods retailers sell and how retailers
relate to consumers. The retail industry is often under pressure to develop and
implement socially responsible business practices, such as selling environmentallyfriendly products, placing warnings or restrictions on potentially harmful goods, and
removing recalled or controversial products from the shelves. Again, government and
social factors overlap in many areas including employment discrimination and, in
some states, the recognition of same-sex partners as legally entitled to employerprovided benefits. Retailers that fail to conform to new social norms often lose
business to companies that are willing to adapt to changing societal values
Big Bazaar Payback Card
At Future Group, we believe in building long-lasting relationships with customers. We
encourage repeat customer visits through our unique offers and special sale days.
Future Group has taken the whole concept of customer loyalty to the next level by
joining hands with payback. Payback is Indias largest and one of Europes most
successful multi-partner loyalty programs. With payback, customers can shop, save
and get rewarded. This program enables consumers to collect millions of points across
online and offline partners with just a single card. Customers can accumulate points
across Future Group formats , thereby making shopping rewarding.
Payback
Payback is Europe"s leading customer loyalty program, headquartered in Germany ,
with a total of 25.5 million active cardholders in Germany and Poland. In India,
payback consolidated its position after taking a major stake in I-Mint. Today, with
more than 30 partners with 1,500 outlets and 10 million card members, its the only
program which works with market leading pan-India players from the banking, travel,
petroleum and online sectors such as ICICI Bank, HPCL, Univercell, BookMyShow
and MakeMyTrip.
Now that Future Group has become a part of this bandwagon, customers are bound to
earn points at every step from formats like Big Bazaar, Food Bazaar, Pantaloons,
Central, Home Town, eZone, Brand Factory and Future Bazaar.
These points can then be redeemed for air miles, movie tickets, air tickets and vice
versa. With Future Group and PAYBACK Shopping is Rewarding.
Benefits of payback
Our formats Big Bazaar, Food Bazaar, Pantaloons, Central, Home Town, eZone,
Brand Factory and Future Bazaar are a part of the PAYBACK Loyalty program.
Now, shopping is rewarding!
A revolutionary new Rewards Program from Future Group, especially created for
frequent Big Bazaar shoppers like you. It is simple and convenient to use. It gives you
exciting rewards of your choice What is more, you do not have to pay anything
separately for it. Join now and discover a great new way to making your shopping an
even more exciting experience!
Features payback card
It is simple:
Now you do not have to carry multiple loyalty cards. This one Big Bazaar PAYBACK
card will work for all Big Bazaar orany future group stores anywhere in India, and
also at other PAYBACK partners.
Convenient:
This program enables you to shop at all Big Bazaar orany future group stores and earn
PAYBACK points on shopping for almost everything.
Rewarding:
You can now redeem your PAYBACK points for exciting rewards on every purchase
at Big Bazaar
Terms and Conditions:
Do not forget to provide your card number on the cart while shopping, if missed
points cannot be given at a later stage.
Shipping Policy :
Big Bazaar does not charge its customers any shipping charges for orders above INR
500 however on some products shipping charges is applicable and the same will be
specified on the Product Description Page. For Products below INR 500 we charge
the customer INR 50 per order.
Octroi charges, wherever applicable, is prepaid by us and not to be borne by the
customer. It is our endeavour to ship all items in your Order together; however this
may not always be possible due to product characteristics, or availability. There may
be restrictions on accepting orders for delivery in certain pin codes as a product
cannot be shipped to those destinations due to legal restrictions or due to the lack of
availability of a reliable courier partners to that destination. In such a scenario, the
order will not be accepted and a message will be displayed requesting you to provide
an alternate pin code.
Currently, each order may be shipped only to a single shipping address. If you wish to
ship products to different addresses, you will need to place different orders.
Schemes and Innovations of Big Bazaar
Wednesday Bazaar
The concept of Wednesday Bazaar was promoted as 'Hafte Ka Sabse Sasta Din'
(Cheapest Day of the Week). Initiated in January 2007, the idea behind this scheme
was to draw customers to stores on Wednesdays, the day when consumer presence is
usually less. According to the chain, the aim of the concept was 'to give home makers
the power to save the most'.
Maha Bachat
The concept of 'Maha Bachat' (Mega Saving) was introduced in the year 2006 as a
single day campaign with promotional offers across the company outlets. Over the
years, the concept has grown to become a six-day biannual campaign. During the
campaign, offers are given in all the value formats including Big Bazaar, Food
Bazaar, Electronic Bazaar, Furniture Bazaar, Fashion bazaar.
The Great Exchange Offer
Introduced on 12 February 2009, 'The Great Exchange Offer' allows customers to
exchange their old goods for Big Bazaar coupons. The coupons can be redeemed later
for buying brand new goods from Big Bazaar outlets across the nation.