big bazar-case analysis
TRANSCRIPT
INDIA KA NAYA BAZAR
GROUP-1ANUBHI RAIKWAR
OBJECTIVE OF THIS PRESENTATION
TO UNDERSTAND RETAILING AND RETAIL FORMATS
UNDERSTAND BUSINESS MODEL OF “BIG BAZAR”
PORTAL’S FIVE FORCES MODEL
LEARNINGS FROM THE CASE
RETAILING FINAL STEP IN THE DISTRIBUTION OF MERCHANDICE
BULK PRODUCER RETAILING
FINAL CONSUME
R
RETAIL FORMATSORGANISED
SPECIALITY STORES
DEPARTMENT STORES
CONVENIENCE STORES
HYPERMARKETS
SUPERMARKETS
MALLS
CATEGORY KILLERS
E-TAILORS
VENDING MACHINES
UN-ORGANISED
MOM AND POPPEDDLERS AND
HAWKERSMARKET
TRADERS 7 STREET TRADERS
INDIAN RETAIL
Highly fragmented 10% contribution to GDP of India World’s 8th largest market Transformation from
TRADITIONAL(KIRANA)
ORGANISED(SUPER
MARKET)
BIYANI
“RAJA OF RETAIL”
ABILITY TO PULL CUSTOMERS FROM TRADITIONAL BAZARS TO HIS SUPER MARKETS
BIG BAZAR
TYPE OF MARKET
HYPERMARKET/ SUPERMARKET
BUSINESS MODEL
SUCCESS
PRODUCT
PRICES
PROMOTION
PLACEPHYSICAL EVIDENCE
PROCESS
PEOPLE
7 P’S
SUCCESS BEHIND TRADITIONAL RETAIL
CONTRIBUTION TO LARGE AMOUNT OF INDIAN RETAIL SALES
WHY? LOW SHOP RENT LOW LABOUR COST LESS EMPLOYEES MORE SALES OF VARIED PRODUCTS CONVENIENT TO CUTOMER’S REACH TRADITION OF OFFERING CREDIT
MODERN RETAIL
OPPORTUNITY FOR RAPID GROWTH IN INDIA
WHY? INCREAS IN DEMAND OF CONSUMER GOODS LIBERALISATION ON IMPORT OF CONSUMER GOODS BY REDUCING IMPORT
TARRIF ENABLING LOCAL RETAILERS TO PROVIDE INTERNATIONAL PRODUCTS TAEGET - LAGEST BIG CITIES WHY?
• DIFFICULTIES IN OPERATIONS ANS SUPPLY LOGISTICS IN SMALL CITIES
• POOR INFRASTRUCTURE
ANALYSIS
1. Rivalry among existing firms
2. Threats of new entrants
3. Bargaining power of buyers
4. Threats of substitute products or services
5. Bargaining power of suppliers
INDUSTRY COMPETITO
RS
POTENTIAL ENTRANTS
BUYERS
SUBTITUTES
SUPPLIERS
PORTER’S FIVEFORCE MODEL
31
4
2
5
Company promised that they provide lower cost than other stores
and bazars
Reliance announced major retail plansWal-mart - if FDI introducedExecutives may shift from the company
No threat of substituteAs consumers love bargains- company’s tagline was “isse sasta aur accha kahin nahin”
Global retailersReliance-India’s largest business house
1 25
4 3
LEARNINGS
Involvement in the business Understanding your customer Ability to pull customers from Not just delegation is important sometimes responsibility with
position should be given Trust in the management team Effective promotion