1.) Pricing: - The pricing objective is to gain the “Maximum Market Share”. Pricing at Big Bazaar is based on the following techniques: a.) Value Pricing (EDLP- Every Day Low Pricing): - Big Bazaar promises consumers the lowest available price without coupon clipping, waiting for promotions, or comparison shopping. b.) Promotional Pricing: - Big Bazaar offers financing at low interest rate. The concept of psychological discounting (Rs.49, Rs.99, Rs.199 etc) is also used to attract customers. Big Bazaar also caters on Special Event Pricing (close to Diwali, Durga Pooja). c.) Differentiating Pricing: - Differentiating pricing i.e. difference in rate based on peak and non-peak hours or days of shopping is also a pricing techniques used in Indian retail, which is aggressively used by Big Bazaar. For example, Wednesday Bazaar. d.) Bundling: - It refers to selling combo-packs and offering discount to customers. The combo-packs add value to customer and lead to increased sales. Big Bazaar lays a lot of importance on bundling. Ex: - Good Day family packs at Rs. 60(Price of 1 pack is Rs. 22)
2 kg oil + 5 kg rice + 5 kg sugar for Rs 299
2.) Place: - The Big Bazaar stores are operational across three formats – Hypermarkets spread over 40000-50000 sq ft, The Express format over 15000-20000 sq ft and the Super Centers set up over 1 Lakhs sq ft. Currently Big Bazaar operates in over 34 cities and towns across India with 116 stores. Apart from the Metros these stores are also doing well in the tier II cities. These stores are normally located in high traffic areas. Big Bazaar aims at starting stores in developing areas to take an early advantage before the real estate value booms.
In order to get competitive advantage Big Bazaar has also launched a website (www.futurebazaar.com), which helps customers to orders products online which will be delivered to their doorstep. This helps in saving a lot of time of its...