L/O/G/O

THE FUTURE GROUP

PRESENTED BY:

ABHISHEK NANDAN MISHRA

NALIN BANSAL

PAROMITA LAHIRI

PRITI SHAW

Contents

CORPORATE PROFILE HOW DID IT GROW CORPORATE PORTFOLIO CORPORATE CHAIN COMPANIES VISSION MISSION VALUES PORTER’S 5 FORCE MODEL SWOT PEST PRODUCT MIX

CORPORATE PROFILE • Future Group is India’s largest retailer and one

of the leading business houses.• Its founder and Group CEO is Mr.Kishore

Biyani .• Future Group’s retail network touches the lives

of more than 200 million Indians in 73 cities and 65 rural locations across the country.

• Currently operates around 1,000 stores spread over 16 million square feet of retail space.

HOW DID IT GROW…• 1987 Company incorporated as Manz Wear Private Limited.

Launch of Pantaloons trouser, India’s first formal trouser brand.• 1992 Initial public offer (IPO) was made in the month of May.• 1994 Future Group India was established with a vision to

provide diverse services in Indian and Global markets.• 1997 Pantaloons – India’s family store launched in Kolkata.• 2001 Big Bazaar, ‘Is se sasta aur accha kahi nahin’ - India’s

first hypermarket chain launched in Jogeshwari,Mumbai.• 2002 Food Bazaar, the supermarket chain is launched.• 2007 Future Group crosses $1 billion turnover mark.

CORPORATE PORTFOLIO

CORPORATE CHAIN CHAIN..

Vision

MISSIONWe share the vision and belief that our customer and stakeholders shall be served only by creating and executing future scenarios in the consumption space leading to economic development.

• We shall infuse indian brands with confidence and renewed ambition.

We shall be efficient , cost – conscious and committed to quality in whatever we do.

• We should ensure that our positive attitude , sincerity , humility and united determination shall be the driving force in making us a success

We will be the trendsetter in evolving delivery formats creating retail reality making consumption affordable for all customer segment for classes and for masses.

VALUES……

• Indianness• Leadership• Respect & Humility• Introspection• Openness• Valuing and Nurturing Relationship• Simplicity• Adaptability• Flow

STRATEGIES…

• Big Bazaar’s New Marketing Strategy Shoppers! Stop.

• Make a smart choice! Change Your Lifestyle.• Make a smart choice! Keep West-aside. Make

a smart choice!

The sales target of 60.62 lakhs/week has been given to every Big Bazaar branch in Bangalore till 24th Mar 2011.

Future Group has come with the following Three catchy Ad Campaigns for Big Bazaar :

Competitive

Rivalry within

Industry(HIGH)

Threat of new

Entrant(HIGH)

Bargaining power

of Suppliers

(LOW)

Threat of Substitut

es(HIGH)

Bargaining power

of buyers(HIGH)

PORTER’S

5 FORC

E MODE

L

PORTER’S FIVE FORCES

ANALYSIS

Threat of new entrantFDI policy not favorable for international playersDomestic conglomerates looking to start retail chainInternational player looking to foray India

Bargaining power of the Supplier

The bargaining power of supplier depending upon target segmentThe unorganized sector has a dominant potentialThere were a few players who have a slight advantage over others on account of being established players and enjoying brand distinction

PORTER’S FIVE FORCES

ANALYSIS

Bargaining power of Buyer Consumers are price sensitive

Availability of more choice

Threat of SubstituteUnorganized retail

Rivalry among competitors

Reliance RetailVishal RetailBharti & Walmart etc.

STRENGTHHigh brand equity

State of the art infrastructure

POP promotion

EDLP

Variety of stuff under one roof

WEAKNESSUnable to meet store opening target

Revenue declining/ sq. ft

General perception

OPPURTUNITYEmerging concept of organized retail

Evolving customer preference

Weak competition:

Vishal retail and Reliance fresh

THREATGovernment policy

Other formats –Super markets and Speciality stores with upcoming MNC retailers

Unorganized retailers

SWOT

POLITICALProperties of taking over properties and real estate

Problems of getting subsidy from Octroi(local tax) and on different taxes like land,water etc.

A stable govt at the center will facilitate speedy economic recovery and create an

encouraging investment climate.

ECONOMICIndia one of the fastest growing economies

Retail industry to grow increasing income of people

Increase in percentage of service contribution to GDP

Stable even during recession

Growth stage:High revenue but high expenditure on promotion

SOCIAL CULTURALIncrease in nuclear families

People prefer to shop in local store with reasonable price

Increase in working women proposition

Life style changes

Shift in product and service preferences

Increase in young population

TECHNOLOGICAL

Technological development for faster service

Better application of IT in the modern retail industry, like in supply chain management , store management and CRM

Electronic billing

Use ERP module for handling inventory and finance.

PEST

BIG BAZAAR

FOOD BAZAARE-ZONE

FUTURE GENERA

LI INSURA

NCE

PANTALOON

BRAND FACTORYSTAPLES,

HOME TOWN,FU

TURE BAZAAR,CENTRAL

BCG MATRIX

ANSOFF’S MATRIX

STAPLES,FUTURE BAZAAR

DIVERSIFICATION

Launched T24 mobile facility in

Hyderabad, GSM mobile service.

BPO INDUSTRY, SUPPLY CHAIN SOLUTIONS,ME

DIA, INSURANCE

MARKET PENETRATION:• 8 new stores in AP.

PRODUCT/ SERVICE DEVELOPMENT• Launched EKTAA branded

rice in 5 variants in AP.• Future Knowledge Services

Limited (FKSL)• Future Supply Chain

Solutions Limited (FSCS)

MARKET DEVELOPMENT:• Brand Factory• Central mall, Cosmos• Planning to start

wholesale stores in rural markets.

PRESEN

T

MARKET

NEW

PRESENT PRODUCT/SERVICE New

MAJOR RESOURCES

TANGIBLE RESOURCES INTANGIBLE RESOURCES

Examples- Big Bazaar, Central,E-zone, Pantaloons, home town, food bazar, Brand Factory.

•Widespread sales and distribution network and effectively managed supply chain.

•Websites such as www.pantaloonretail.inwww.futuregroup.comwww.bigbazaar.comwww.e-zone.com

Services like - Future Generali Insurance, FUTURE LOGISTICS SOLUTIONS Ltd., Future Knowledge Services

Capabilities and Core Competencies

> Effective and efficient Inventory control

> Diverse Industries

> Volumes / Economies

CORE COMPETENCY

Best pricing throughout the year.A choice of more than 20,000 products

Delivery across more than 1500 cities andtowns in India covering around 16,000 pin

codesFast deliveries – tie ups with world leaders in

logistics & transportation servicesA dedicated Customer Care helpline for any

queriesAlways offering Manufacturer’s guarantee asopposed to Seller’s guarantee, which most of

the other online shopping sites offers

Talks of Quality and Cost Special emphasis on apparels and life style products Providing interesting discounts

ROCE & PROFIT MARGIN

YEAR 2008-2009 2009-2010

Profit Margin(ROS) 10.67% 11.36%

ROCE 14.73% 16.69%

Business Level Strategy

• Cost Leadership– Big Bazaar & Food Bazaar

• Focused Differentiation– Aadhaar : agri-service cum rural retail– Brand factory- factory outlets for particular

market segment

CURRENT GLOBAL STRATEGY

• Improved product margins• Reduced inventory throughout the business• Co-operative strategy by doing joint ventures

like with Staples Inc., U.S. in 2007, Generali Group, Italy to form Future Generali.

• Increased demand visibility across all the businesses

Recommendations for big bazaar

• Retail through internet and web based technologies

• Need to focus more on CRM and improve in store assistance

• Invest in supply chain infrastructure• More brands should be included• Exchange offers should be made clear as

customers are not clear of how to use them• Aggressive expansion plan to open in tire II

cities• Facilities like free home delivery.

REFERENCES• www.bigbazaar.com• www.ezone.com• www.futurebazaar.com• www.scribd.com• www.googleimage.com• www.slideshare.net• www.authorstream.com• www.retailrise.com • www.pantaloonretail.in• www.futuregroup.com

L/O/G/O

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