Kishore Biyani and Big Bazaar

Company History  Biyani started with his family bussiness in textiles in the year 1987. He launched the 1st branded ready made trousers brand known as Pantaloon. With the help of his company Pantaloon fashions, later it named as Pantaloon Shoppe stores. In 1992, Biyani reached to customer level with its 60 exclusive shops. Initial brand was John Miller and Bare.

Present Overview  Pantaloons  Central  Big bazaar  Food bazaar  Brand factory  Home Town  Furniture bazaar  Ezone  Electronics bazaar  Lee cooper  Future money 

Who is the brainchild for all these malls are???

Mr.Kishore biyani

He is coined as: ‘Father of retailing in India’ ‘Rajah of retail’ ‘India’s retail CZAR’ ‘The unstoppable Indian’

1000

stores in 71 cities with 30,000 people employed.

Today

the company has almost 14,000 shareholders.

He

now has about 22 different retail formats.

Q.1 The layout of big bazaar stores is radically different from those in West. Do you think this layout would be successful in the wake of the entry of big players such as Wal-Mart in India market?

Brief History   The

hypermarket chain was introduced in Indiain 2001 by Pantaloon Retail(India) Limited.

 The  The

first store in Kolkata

discount store waslaunched in the year 2001, to meet theaspirations of the middle class. In thespan of two years, it has added a FoodBazaar and Gold Bazaar to its range of offering.

The Strategy   Biyani’s Vision- ‘To give the Indian customer the feel

 



of a local market place-narrow lanes, crowded market place and customers bumping into each other and into commodities’. Saving is the key to the Indian middle class consumer. The concept of “Bazaar”, As the store offers large mix of products at a discounted price, the name “Big Bazaar” was finalized The idea was to recreate a complete bazaar, with a large product offering and offer a good depth and width in terms of range

 To

remove Myth in the mind of Indian consumer that big shopping stores charge more prices for commodities,compared to the local kirana stores.

Selecting the Location  Ability

to pull crowds.

 Positive  Large

economies of scale.

catchment area is needed.

 Generally,

those stores in which builder’s are ready  to provide fully-furnished stores that enables them to start there operation immediately.

Elements of store environment

Store Environment Store Image Store Theme

Merchandise MIX  Large

product mix offered by Big Bazaar was the main attraction.

 Big

Bazaar stocked about 1,30,000items in over 20 product categories.

Threats

In long run Big bazaar layout will face problems, in the wake of entry of  big players such as Wal-Mart in Indian ….

Then what will be the impact?????

Buyers

Suppliers

Potential Entrance

Substitute product

Switching Cost

Where the problem lies with

??

 Biggest

problem lies with Big Bazaar is the Inventory level Management.

 Still 

they follow  Traditional supply chain.

Low in Technological upgradation.

 Delivery  High

not in Time.

Debt exposure.

 In-house

brands occupy 40% of equity.

Strength of  Low cost leadership: Wal-Mart uses legendary inventory replishment system

Through this system Wal-Mart continuously sends orders for new  merchandise directly to suppliers as soon as customer pays for purchases at cash register. By this Wal-Mart does not have to spend money on maintaining large inventories of goods in its own warehouse and can adjust with customer demand. By this customer response system Wal-Mart easily manages to keep its operational costs low.

Q2.Using the traditional supply  chain has worked for Biyani so far. Do you think it would work in the future as Reliance has chosen to follow the exclusive supply chain rout