kishore biyani and

7/31/2019 Kishore Biyani And

1/28


2/28

Company History

Biyanistarted with his family bussiness intextiles in the year 1987.

He launched the 1st branded ready made

trousers brand known as Pantaloon.With

the help of his companyPantaloon fashions,

later it named as Pantaloon Shoppe stores.

In 1992, Biyani reached to customer level

with its 60 exclusive shops.

Initial brand wasJohn Miller and Bare.


3/28

Present Overview

Pantaloons

Central

Big bazaar

Food bazaar

Brand factory Home Town

Furniture bazaar

Ezone

Electronics bazaar

Lee cooper

Future money


4/28

Who is the

brainchild for allthese malls are???


5/28

Mr.Kishore biyani

He is coined as:Father of retailing in India

Rajah of retail

Indias retail CZAR

The unstoppable Indian


6/28

1000 stores in 71 cities with 30,000

people employed.

Today the company has almost 14,000

shareholders.

He now has about 22different retailformats.


7/28

Q.1 The layout of big bazaar

stores is radically different fromthose 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?


8/28

Brief History The hypermarket chain was introduced in Indiain

2001 by Pantaloon Retail(India) Limited. The first store in Kolkata

The 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 GoldBazaar to its range of offering.


9/28

The Strategy

Biyanis Vision- To give the Indian customer the feelof a local market place-narrow lanes, crowdedmarket place and customers bumping into eachother and into commodities.

Saving is the key to the Indian middle classconsumer.

The concept of Bazaar, As the store offers largemix 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 andwidth in terms of range


10/28

To remove Myth in the mind of Indian

consumer that big shopping stores charge more

prices for commodities,compared to the localkirana stores.

Selecting the Location

Ability to pull crowds. Positive economies of scale.

Large catchment area is needed.

Generally, those stores in which builders are readyto provide fully-furnished stores that enables them

to start there operation immediately.


11/28

Elements of store environment

Store

Environment

StoreImage

StoreTheme


12/28

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.


13/28


14/28

Threats

In long run Big bazaar layout will face

problems, in the wake of entry of

big players such as Wal-Martin Indian .

Then what will be the impact?????


15/28

PotentialEntrance

Suppliers Buyers

Substitute

product

Switching

Cost


16/28

Where the problem lies with

??


17/28

Biggest problem lies with Big Bazaar is the

Inventory level Management.

Still they follow Traditional supply chain.

Low in Technological upgradation.

Delivery not in Time.

High Debt exposure.

In-house brands occupy 40% of equity.


18/28

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.


19/28

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 chainroute for its stores?


20/28

Using traditional supply chain Biyani cant

sustain in the long run.....

Traditional supply chain


21/28

i i d d i d i f h


22/28

1.Biyani succeeded in reduction of the expenses

incurred, while occupying store from 75million to

40 million for a 50,000 sq.ftstores but fails to

maintain the inventory level management.2. Biyani has often tied up with manufacturersto

bring down the selling price of the products sold in

big bazaar, on the other sideBiyani fails to reducethe ovherhead cost due to the traditional supply

chain.

3.Though Biyani has a clear communication withthe public through their advertising campaign but

fails to maintain two waycommunication between

the supply chain.


23/28

Q3. Do you think having a

farm near Big bazaar is agood idea? Do you think this

concept would beoperationally viable?


24/28

Having a farm near Big Bazaar is a good

idea.


25/28

Advantage To Biyani

He easily can focus on the concept, "farm toplate.

He can maintain freshness in his food

commodities.

The Food Bazaar at Ahmedabad has a full-

fledged dairy and produce 1000 litres a day and

produces its own paneer and pasteurised milk.

Through this biyani has created in-house labelsfor certain products.

Low price commodity


26/28

Advantage to operational activities

Narrow the supply chain.

Reduction in overhead cost.

More customer attraction.

High Inventory Managemnet.

EasyInput Process.

High production capacity.

Control over demand.Will give scope for low prices,discounts

and promotional gifts.


27/28

Q4.Biyani is targeting to

occupy 60% of self space inhis stores with in-house

brands. Do you think it is agood idea?


28/28

Occupying 60% of shelf space with in-housebrands is not a good idea.

Reasons In the long run, Big bazaar may face the

problem related to the verities of MerchandiseMix.

It will merge the equity of other products.

It will incurred switching cost.

Low substitute product.

Offerings by Rivalry. It may have a negative impact over the brand

image.

kishore biyani and

Documents