Big Bazar, Serving the Classes

YESMA ROSE

P15222

PGDM B

CASE STUDY: BIG BAZAR, SERVING THE CLASSES

QUESTION 1

"We are not in the business of selling ambience, but in the business of giving the best possible deals to our consumers," said Kishore Biyani, Managing Director, PRIL. How did Big Bazaar offer the 'best possible deals,' and discounted prices to its consumers? 

• Big Bazar bought merchandise at very low cost so that they can sell it at low prices.
• The stores focused less on ambience. Big bazaar stores were in warehouse format so that cost of setting up was less.
• As international retailers like Walmart Big Bazar focused on value proposition to attract the target consumers. The target consumers were middle class and upper middle class.
• Tag line such as “ is se sasta aur acha kahin nahin ”  which means nothing cheaper better anywhere, focused on emphasizing lower prices.
• It communicated the same through it exchange offer, “purana do, naya lo”
• Big bazaar had its clear positioning as value-for-money.

QUESTION 2

Biyani opined that Biz Bazaar was focused on giving the best possible deals to its customers, rather than focusing on the ambience of the store. Is ambience irrelevant for discount stores?

Store ambience includes the physical characteristics of a retail store used to create an image in order to attract customers. It's also known as atmospherics for short. It is a direct contributor to customer experience, which is the most important element of retail today. Customers not only care about how a store looks and feels, they're also likely to make purchasing decisions based on the ambiance of the establishments they patronize.