DIRECT MARKETING

PROJECT BY:-

Raza Ansari- 01

Hamid Khan- 09

Shahroz Khan- 11

Umesh Yadav- 29

Danish Sayed- 33

Big Bazaar

Big Bazaar

Type Public

Industry Retailing

Founded 2001

Headquarters Mumbai, Maharashtra, India

Products Department store

RevenueRs 6000 crores (in 2011) (Big Bazaar and Food Bazaar combined)

Employees ~ 36000 people

Parent Future Group

Divisions ~ 100

Website Big Bazaar

Big Bazaar is a chain of hypermarket in India. Currently, there are 214 stores across 90 cities and towns in India. Big Bazaar is designed as an agglomeration of bazaars or Indian markets with clusters offering a wide range of merchandise including fashion and apparels, food products, general merchandise, furniture, electronics, books, fast food and leisure and entertainment sections.

Big Bazaar is part of Future Group, which also owns the Central Hypermarket, Brand Factory, Pantaloons, eZONE, Hometown, KB's Fair Price to name a few and is owned through a wholly owned subsidiary of Pantaloon Retail India Limited(BSE: 523574 523574), that is listed on Indian stock exchanges.

History

Big Bazaar was launched in September, 2001 with the opening of its first four stores in Calcutta, Indore, Bangalore and Hyderabad in 22 days. Within a span of ten years, there are now 152 Big Bazaar stores in 90 cities and towns across India.

Big Bazaar was started by Kishore Biyani, the Group CEO and Managing Director of Pantaloon Retail. Though Big Bazaar was launched purely as a fashion format including apparel, cosmetics, accessory and general merchandise, over the years Big Bazaar has included a wide range of products and service offerings under their retail chain. The current formats includes Big Bazaar, Food Bazaar, Electronic Bazaar and Furniture Bazaar. The inspiration behind this entire retail format was from Saravana Stores, a local store in T. Nagar, Chennai

The stores are customized to provide the feel of mandis and melas while offering the modern retail features like Quality, Choice and Convenience. As the modern Indian family's favorite retail store, Big Bazaar is popularly known as the "Indian Walmart".

On successful completion of ten years in Indian retail industry, in 2011, Big Bazaar has come up a new logo with a new tag line: ‘Naye India Ka Bazaar’, replacing the earlier one: 'Isse Sasta Aur Accha Kahin Nahin'.

Strategy

3-C Theory

According to Kishore Biyani's 3-C theory, Change and Confidence among the entire population is leading to rise in Consumption, through better employment and income which in turn is creating value to the agricultural products across the country. Big Bazaar has divided India into three segments:

India one: Consuming class which includes upper middle and lower middle class (14% of India's population).

India two: Serving class which includes people like drivers, household helps, office peons, liftmen, washer men, etc. (55% of India's population) and

India three: Struggling class (remaining 31% of India's population).

While Big Bazaar is targeted at the population across India one and India two segments, Aadhaar Wholesale is aimed at reaching the population in India three segment. With this, Future Group emerged as a retail destination for consumers across all classes in the Indian society.

Operations

Most Big Bazaar stores are multi-level and are located in stand-alone buildings in city centers as well as within shopping malls. These stores offer over 200,000 SKUs in a wide range of categories led primarily by fashion and food products.

Food Bazaar, a supermarket format was incorporated within Big Bazaar in 2002 and is now present within every Big Bazaar as well as in independent locations. A typical Big Bazaar is spread across around 50,000 square feet (4,600 m2) of retail space. While the larger metropolises have Big Bazaar Family centres measuring between 75,000 square feet (7,000 m2) and 160,000 square feet (15,000 m2), Big Bazaar Express stores in smaller towns measure around 30,000 square feet (2,800 m2).

Big Bazaar has the facility to purchase products online through its official web page, and offers free shipping on some of their products.

Innovations

Wednesday Bazaar

Big Bazaar introduced the Wednesday Bazaar concept and promoted it as “Hafte Ka Sabse Sasta Din”. It was mainly to draw customers to the stores on Wednesdays, when least number of customers are observed. According to the chain, the aim of the concept is "to give home makers the power to save the most and even the stores in the city don a fresh look to make customers feel that it is their day".

Sabse Sasta Din

With a desire to achieve sales of Rs 26 Crore in a one single day, Big Bazaar introduced the concept of "Sabse Sasta Din". The idea was to simply create a day in a year that truly belonged to Big Bazaar. This was launched on January 26, 2006 and the result was exceptional that police had to come in to control the mammoth crowd. The concept was such a huge hit that the offer was increased from one day to three days in 2009 (24 to 26 Jan) and to five days in 2011 (22-26 Jan).

Maha Bachat

Maha Bachat was started off in 2006 as a single day campaign with attractive promotional offers across all Big Bazaar stores. Over the years it has grown into a 6 days biannual campaign. It has attractive offers in all its value formats such as Big Bazaar, Food Bazaar, Electronic Bazaar and Furniture Bazaar - catering to the entire needs of a consumer.

The Great Exchange Offer

On February 12, 2009 Big Bazaar launched "The Great Exchange Offer", through with the customers can exchange their old goods in for Big Bazaar coupons. Later, consumers can redeem these coupons for brand new goods across the nation.

PROMOTIONAL SCHEMES:

The Future Group has created a category for the growing media industry called Future Media, which is to be a medium through which advertisers can communicate with shoppers in the store. On the effectiveness of this method of reaching the customer, ParthoDasgupta, Chief Executive Officer, Future Media, says “You are communicating to the consumer when and where it matters — at the time of making a purchase decision.” The company is considering all types of ways to reach the customer, including digital signage, audio, video and blue-tooth technology etc. The Future Group has switched its media agency and has selected Starcom to handle its account which is around Rs. 2-2.5 billion and is said to be one of the largest accounts in the past five years. The company was earlier with Carat for the past two years. As Pantaloon expands across all formats and is rapidly increasing its sqft space from 4 million sqft to 30 million sqft, the company is also looking for creative agencies. At present the company uses Mudra for its value retail segment and Percept for its lifestyle retail segment. The various promotional schemes undertaken by big bazaar are as follows:

The punch line of Big Bazaar says “IS SE SASTA AUR ACCHA KAHI NAHI”. This line gives the feeling that Big Bazaar gives merchandise which is cheapest in the market or in other words the value for money which a customer will be getting here will be more than anywhere else.

Wednesday is the cheapest day. This is done to divert some of the crowd coming on weekends to a relatively free day. Big bazaar advertises Wednesdays as the cheapest day in all the leading dailies across the capital. This offer targets housewives and encourages them to purchase groceries and vegetables because no one purchases vegetables on a weekly basis, they purchase it at least two times a week.

Big Bazaar has announced a unique exchange offer `Bring anything old and take anything new’. Under the exchange offer, old garments, utensils, furniture, plastic ware, newspapers or just about anything will be weighed and valued and customers will be given exchange coupons. There is also a direct exchange on mobile and electronic goods during the period with attractive discounts on new purchases.

Big Bazaar’s `The Great Exchange Offer’ has mobilized more than two lakh families to actually carry the junk of the house and offload it at the nearest Big Bazaar. Retail analysts say that generally February and March are dull months for consumer buying in the country and therefore this kind of a promotion campaign is needed to boost sales during the period.

PANTALOON group’s hypermarket chain, Big Bazaar, celebrated Republic Day as the Maha Savings Day, when shoppers at Big Bazaar and Food

Bazaar outlets across the country, were offered merchandise at rock bottom prices.

The Maha Savings Day saw shoppers got deals they have never seen or heard before. The offers spread across categories from electronics to utensils, from apparel to furniture and also food. For example pressure cooker for Rs 299, two Ruf n Tuf Jeans for Rs 499, and a Motorola C115 for Rs 1,399.

SEGMENTATION:

What is Segmentation ?

Segmentation refers to a process of bifurcating or dividing a large unit into various small units which have more or less similar or related characteristics.

Market Segmentation

Market segmentation is a marketing concept which divides the complete market set up into smaller subsets comprising of consumers with a similar taste, demand and preference.

A market segment is a small unit within a large market comprising of like minded individuals.

One market segment is totally distinct from the other segment.

A market segment comprises of individuals who think on the same lines and have similar interests.

The individuals from the same segment respond in a similar way to the fluctuations in the market.

Customer Segmentation:

Big Bazaar mainly targets Higher and Upper Middle class customers. The large and young working population is a preferred customer segment. Big Bazaar specifically targets working women and home makers who are

the primary decision makers.

Positioning:

Big Bazaar ensures that no other kirana store / departmental store are offering considerable discount compared to its own price. This helped Big Bazaar in being the "value for money" store.

Big Bazaar scores high on product mix as compared to kirana store.

Cheap and local products are heavily stocked in Big Bazaar which make it easier to attract lower middle class category of customers.

Promotion of kirana is rare event but Big Bazaar used this channel efficiently to establish itself as national brand.

Direct Marketing:

What is direct marketing?

Direct marketing is a channel-agnostic form of advertising that allows businesses and nonprofits to communicate straight to the customer, with advertising techniques such as mobile messaging, email, interactive consumer websites, online display ads, fliers, catalog distribution, promotional letters, and outdoor advertising.

Direct marketing messages emphasize a focus on the customer, data, and accountability. Characteristics that distinguish direct marketing are:

1. Marketing messages are addressed directly to customers. Direct marketing relies on being able to address the members of a target market. Addressability comes in a variety of forms including email addresses, mobile phone numbers, Web browser cookies, fax numbers and United States and international postal addresses.

2. Direct marketing seeks to drive a specific "call to action." For example, an advertisement may ask the prospect to call a free phone number or click on a link to a website.

3. Direct marketing emphasizes trackable, measurable responses from customers — regardless of medium.

Direct marketing is practiced by businesses of all sizes — from the smallest start-up to the leaders on the Fortune 500. A well-executed direct advertising campaign can prove a positive return on investment by showing how many potential customers responded to a clear call-to-action. General advertising eschews calls-for-action in favor of messages that try to build prospects’ emotional awareness or engagement with a brand. Even well-designed general advertisements rarely can prove their impact on the organization’s bottom line.

Direct Marketing by Big Bazaar:

The Shakti Card:-

Specially designed for women

Get vouchers worth Rs 250 to be redeemed against purchase of Rs 500 or more

Special payment counters for women

1 kg sugar free every month for 12 months

Exclusive offers for card holders from time to time

Big Bazaar silver credit card:

No finance charges on EMI purchase at Big Bazaar.

You also get 1 rewar point per Rs 100 of EMI purchase

Get Voucher worth Rs 250 to be redeemed against purchase of Rs 500

4 Reward points on every purchase worth Rs 400 Special payment counters for cardholders Zero lost card liability Exclusive offers for cardholders from time to time Comprehensive travel benefits.

Big Bazaar Gold Credit Card

No finance charges on EMI purchase at Big Bazaar.On a purchase of Rs 1500 and above in single transaction.

6 Reward points on every purchase worth Rs 400 Special payment counters for cardholders Priority entry for card holders from time to time Exclusive offers for cardholders from time to time Special payment counters for cardholders Terms and conditions of ICICI Bank Big Bazaar credit card airline voucher

offer Zero lost card liability

Pamphlets:

Big Bazaar has a tie up with local newspaper vendors who supply newspaper to homes. The vendors insert pamphlets with offers n discounts in the newspapers and supply it to each and every home. Here they don’t need any database. They target all the house in the locality who has subscribed for newspapers.

Recommendations:

Big bazaar should keep offers in regular intervals so that there should not

be a long term gap, because offer is the most influencing factor which is

responsible for customer purchase decision.

And they also concentrate on T V advertisement they should show ads

and promotional offers in a regular interval in three languages like

Kannada Hindi English.

Hoarding should be placed uncovered area.

They should purchase the database and send sms and direct mail to the

customers of the nearby locality.

Timeline

2001

Three Big Bazaar stores launched within a span of 22 days in Kolkata, Bangalore and Hyderabad

2002

Big Bazaar - ICICI Bank Card is launched. Food Bazaar becomes part of Big Bazaar with the launch of the first store in

Mumbai at High Street Phoenix

2003

Big Bazaar enters Tier II cities with the launch of the store in Nagpur Big Bazaar welcomes its 10 million-th customer at its new store in Gurgaon

2004

Big Bazaar wins its first award and national recognition. Big Bazaar and Food Bazaar awarded the country’s most admired retailer award in value retailing and food retailing segment at the India Retail Forum

A day before Diwali, the store at Lower Parel becomes the first to touch Rs 10 million turnover on a single day

2005

Initiates the implementation of SAP and pilots a RFID project at its central warehouse in Tarapur

Launches a unique shopping program: the Big Bazaar Exchange Offer, inviting customers to exchange household junk at Big Bazaar

Electronic Bazaar and Furniture Bazaar are launched Big Bazaar and ICICI Bank launched ICICI Bank-Big Bazaar Gold credit card

program to reward its loyal customers.

2006

Mohan Jadhav sets a national record at Big Bazaar Sangli with a Rs 1,37,367 shopping bill. The Sangli farmer becomes Big Bazaar’s largest ever customer.

Big Bazaar launches Shakti, India’s first credit card program tailored for housewives

Navaras – the jewellery store launched within Big Bazaar stores

2007

The 50th Big Bazaar store is launched in Kanpur Big Bazaar partners with Futurebazaar.com to launch India's most popular

shopping portal Big Bazaar initiates the "Power of One" campaign to help raise funds for the

Save The Children India Fund Pantaloon Retail wins the International Retailer of the Year at US-based

National Retail Federation convention in New York and Emerging Retailer of the Year award at the World Retail Congress held in Barcelona.

2008

Big Bazaar becomes the fastest growing hypermarket format in the world with the launch of its 101st store within 7 years of launch

Big Bazaar dons a new look with a fresh new section, Fashion@Big Bazaar Big Bazaar joins the league of India’s Business Super brands. It is voted among

the top ten service brands in the country in the latest Pitch-IMRB international survey

Big Bazaar initiated the Mega Saving "Monthly Bachat Bazaar" campaign, to provide exceptional deals on groceries and food items during the first week of every month.

2009

Big Bazaar opens its second store in Assam at Tinsukia Big Bazaar initiates Maha Annasantarpane program at its stores in South India

– a unique initiative to offer meals to visitors and support local social organizations

Big Bazaar captures almost one-third share in food and grocery products sold through modern retail in India

Mahendra Singh Dhoni and Asin, youth icons of India, were chosen as the brand ambassadors of Big Bazaar

Big Bazaar announced the launch of 'The Great Exchange Offer'

Formed a joint venture with Hidesign to launch Holii, a new brand of handbags, laptop bags and other accessories.

2010

Future Value Retail Limited is formed as a specialized subsidiary to spearhead the group’s value retail business through Big Bazaar, Food Bazaar and other formats.

Big Bazaar wins CNBC Awaaz Consumer Awards for the third consecutive year. Adjudged the Most Preferred Multi Brand Food & Beverage Chain, Most Preferred Multi Brand Retail Outlet and Most Preferred Multi Brand One Stop Shop

Big Bazaar connects over 30,000 small and medium Indian manufacturers and entrepreneurs with around 200 million customers visiting its stores

Big Bazaar opens its third store in Kanpur at Z Square Mall Big Bazaar opens its fourth store in Kanpur at Jajmau which is the largest

leather tannery garrison of Asia Vidya Balan was chosen as the brand ambassador of Big Bazaar's Price

Challenge exercise Ranked 6 among the Top 50 Service Brands in India.

2011

Big Bazaar forays into the rural wholesale and distribution business through ‘Aadhaar Wholesale’ store at Kalol, Gujarat.

Big Bazaar has come up a new logo with a new tag line: ‘Naye India Ka Bazaar’.

200th store opened in India Future Group has launched its latest venture, Food hall – a premium food

destination across 10 metros in India For the convenience of the online customers, Big Bazaar has started free

shipping on all orders above Rs. 1000 Entered into an agreement with Hindustan Unilever to co-develop and co-brand

bakery products, which would be sold exclusively at Big Bazaar stores.

2012

Big Bazaar entered into a five year multi-million dollar deal with Cognizant Technology Solutions for IT infrastructure services that support Future Group's network of stores, warehouses, offices, and data centers.

Partnered with Disney to launch "Kidz Cookies", exclusively for kids across India.

Big Bazaar is planning to add further value to its retail services by offering Value added services like grinding, de-seeding, vegetables cutting at free of cost

Conclusion: 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 who is

God said by the business tycoons. There is always a ‘first mover advantage’

in an upcoming sector. In India, that advantage goes to “BIG BAZAAR”. It

has brought about many changes in the buying habits of people. It has

created formats, which provide all items less than one roof at low rates.

The consumer’s preferences are changing & they are moving from

Traditional Kirana stores to Modern Retail outlet. It’s 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 walk-in.