Walmart vs Big Bazar

WALMART

Wal-Mart Stores, Inc. branded as Walmart since 2008 and Wal-Mart before then, is an American public multinational corporation that runs chains of large discount department stores and warehouse stores. The company is the world’s 18th largest public corporation, according to the Forbes Global 2010 list, and the largest public corporation when ranked by revenue. It is also the biggest pvt. employer in the world with over 2 million employees, and is the largest company in the world. The company was founded by Sam Walton in 1962, incorporated on October 31, 1969, and publicly traded on the New York Stock Exchange in 1972. It is headquartered in Bentonevile Arkansas. Walmart is also the largest grocery retailer in the United States. In 2009, it generated 51% of its US$258 billion sales in the U.S. from grocery business. Walmart has 8,500 stores in 15 countries, under 55 different names.

HISTORY OF WALMART

Sam Walton, a businessman from Arkansas, began his retail career when he started work on June 3, 1940, at a J.C. Penney store in Des Moines where he remained for 18 months. In 1945, he metButler Brothers, a regional retailer that owned a chain of variety stores called Ben Franklin and that offered him one in New Port, Arkansas. Walton was extremely successful in running the store in Newport, far exceeding expectations.]However, when the lease came up for renewal, Walton could neither come to agreement on the existing store’s lease renewal nor find a new location in Newport.

Instead, he opened a new Ben Franklin franchise in Bentonvile Arkansas, but called it “Walton’s Five and Dime.” There, he achieved higher sales volume by marking up slightly less than most competitors. On July 2, 1962, Walton opened the first Wal-Mart Discount City store located at 719 Walnut Ave. in Rogers, Arkansas. The building is now occupied by a hardware store and an antique mall. Within five years, the company expanded to 24 stores across Arkansas and reached $12.6 million in sales.

Incorporation and growth

Wal-Mart’s former logo (1992-2008 in the US, 2001-2009 in Canada, and 1992-2009 in Mexico), though it is still seen on many American locations, though a majority of Canadian locations have this logo instead of the 1994-2001 logo with a hyphen. The company was incorporated as Wal-Mart Stores, Inc. on October 31, 1969. In 1970, it opened its home office and first distribution center inBentonvile Arkansas. It had 38 stores operating with 1,500 employees and sales of $44.2 million. It began trading stock as publically held company on October 1, 1970, and was soon listed on the NYSE.

The first stock split occurred in May 1971 at a market price of $47. By this time, Wal-Mart was operating in five states: Arkansas, Kansas, Louisiana, Missouri, and Oklahoma; it entered Tennessee in 1973 and Kentucky and Mississippi in 1974. As it moved into Texas in 1975, there were 125 stores with 7,500 employees and total sales of $340.3 million. Wal-Mart opened its first Texas store in Mount Pleasant on November 11, 1975 In the 1980s, Walmart continued to grow rapidly, and by its 25th anniversary in 1987 there were 1,198 stores with sales of $15.9 billion and 200,000 associates.

This year also marked the completion of the company’s satellite network, a $24 million investment linking all operating units of the company with its Bentonville office via two-way voice and data transmission and one-way video communication. At the time, it was the largest private satellite network, allowing the corporate office to track inventory and sales and to instantly communicate to stores. In 1988, Sam Walton stepped down as CEO and was replaced by David Glass. Walton remained as Chairman of the Board and the company also rearranged other people in senior positions.

Inside a Walmart Supercenter

In 1988, the first Walmart Supercenter opened in Washington. The company also opened overseas stores, entering South America in 1995 with stores in Argentina and Brazil; and Europe in 1999, buying ASDA in the UK for $10 billion. In 1998, Walmart introduced the “Neighborhood Market” concept with three stores in Arkansas. By 2005, estimates indicate that the company controlled about 20% of the retail grocery and consumables business. In 2000 H.Lee. Scott became President and CEO, and Walmart’s sales increased to $165 billion.[ In 2002, it was listed for the first time as America’s largest corporation on the Fortune 500 list, with revenues of $219.8 billion and profits of $6.7 billion. It has remained there every year, except for 2006.

In 2005, Walmart had $312.4 billion in sales, more than 6,200 facilities around the world—including 3,800 stores in the United States and 2,800 elsewhere, employing more than 1.6 million “associates” worldwide. Its U.S. presence grew so rapidly that only small pockets of the country remained further than 60 miles (100 km) from the nearest Wal-Mart. As Walmart grew rapidly into the world’s largest corporation, many critics worried about the effect of its stores on local communities, particularly small towns with many “mom n pop” stores.

There have been several studies on the economic impact of Walmart on small towns and local businesses, jobs, and taxpayers., found that some small towns can lose almost half of their retail trade within ten years of a Wal-Mart store opening However, in another study, he compared the changes to what small town shops had faced in the past — including the development of the railroads, the advent of the Sears Roebuck catalog, as well as the arrival of shopping malls — and concluded that shop owners who adapt to changes in the retail market can thrive after Wal-Mart arrives In the aftermath of Hurricane Katrina in September 2005, Walmart was able to use its logistical efficiency in organizing a rapid response to the disaster, donating $20 million in cash, 1,500 truckloads of free merchandise, food for 100,000 meals, as well as the promise of a job for every one of its displaced workers.

Major Competitors In Indian Market
1)Big Bazar
2)Vishal Mega Mart
3)Spencers
4)Sabka Bazar
5)Reliance store
6)Subhiksha store

Corporate Affairs

Walmart is headquartered in the Wal-Mart Home Office complex inBentonvile, Arkansas. The company’s business model is based on selling a wide variety of general merchandise at “always low prices.” They refer to their employees as “associates”. All Wal-Mart stores in the US and Canada also have designated “greeters” at the store entrance, a practice pioneered by founder Sam Walton and later copied by other retailers. Greeters are trained to help shoppers find what they want and answer their questions. For many years, associates were identified in the store by their signature blue vest, but this was discontinued in June 2007 and replaced with more modern and professional khaki pants and polo shirts.

The wardrobe change was part of a larger corporate overhaul for the store in an effort to increase sales and rejuvenate its stock price. Unlike many other retailers, Wal-Mart does not charge a slotting fee to suppliers for their products to appear in the store. Instead, it focuses on selling more popular products and provides incentives for store managers to drop unpopular products, as well as asking manufacturers to supply more popular products. On September 14, 2006, the company announced that it would phase out its layaway program, citing declining use and increased costs.

Layaway ceased to be offered on November 19, 2006, and required merchandise pickup by December 8, 2006. Wal-Mart now focuses on other payment options, such as increased use of six- and twelve-month, zero-interest financing. The layaway location in most stores is now used for Wal-Mart’s Site-To-Store program, which was introduced in March 2007. This enables walmart.com customers to buy goods online with a free shipping option, and have goods shipped to the nearest store for pickup.

Finance n Governance

For the fiscsl year ending January 31, 2011, Wal-Mart reported a net income of $15.4 billion on $422 billion of revenue with a 24.7%gross p[rofit margin). The corporation’s international operations accounted for $109.2 billion, or 26.1%, of total sales. It is the world’s 18th largest public corporation, according to the Fotbes Global 2000 list, and the largest public corporation when ranked by revenue.[94] Wal-Mart is governed by a fifteen-member BoD, which is elected annually by shareholders.

Robson Walton, the eldest son of founder Sam walton, serves as Chairman of Board. Michael Duke serves as CEO, and Lee Scott, formerly CEO, serves as Chairman of the Executive Committee of the Board. Other members of the board include Aida Alvarez, Jim Brever, M. Michele Burns, James Cash, Roger Corbett,Doughlas Daft , David Glass, Gregory B. Penner, Allen Questrom, Arne M. Sorenson, Jim Walton, Christopher J. Williams, and Linda S. Wolf Sam Walton died in 1992. After Walton’s death, Don Soderquist, Chief Operating Officer and Senior Vice Chairman, became known as the “Keeper of the Culture.”

SWOT Analysis of Walmart

Strength..1)It has a reputation for value for money, convenience and a wide range of products all in one store2)The company has a core competence involving its use of information technology to support its international logistics system.| Weakness… 1) Weak in some areas due to the huge span of control 2) Lack of focus 3) Presence in few country| Opportunity…1) Expending consumer markets.2)To take over, merge with or form strategic alliances with other global retailers, focusing on specific markets such as Europe3)New locations and store types offer wal-mart opportunities to exploit market development| Threats…1) Being a global retailer means that you are exposed to political problems in the countries that you operate in.2)Critical consumer behavior.3)Huge competition with Indian retailer.|

Cometitors of Walmart

Walmart Analysis

Top Countries with Walmart stores

Marketing Penetration Strategy by Walmart

1) bankruptcy of K-Mart.
2) increase of Wal-Mart’s marketing campaigns
3) attracting most of K-Mart’s customers.
4) Leads to closing hundreds of stores.

5) power to influence markets in their direction.

Initiatives By Walmart
1)EMPLOYEE FREE CHOICE ACT (EFCA)
2)GENDER ORIENTATION
3)HUMAN RIGHT CAMPAIGN

BIG BAZAR

Big bazaar is a chain of hypermarket in India. Currently, there are 210 big bazaar stores across 80 cities and towns in India. Big Bazaar is designed as an agglomeration of bazaars or Indian markets with clusters offering a wide range of merchandise including fashion and apparels, food products, general merchandise, furniture, electronics, books, fast food and leisure and entertainment sections. Big Bazaar is part of Future Group, which also owns the Central Hypermarket, and is owned through a wholly owned subsidiary of Pantaloon Retail India Limited(BSE: 523574 523574), that is listed on Indian stock exchanges.

Big Bazaar is designed as an agglomeration of bazaars or Indian markets with clusters offering a wide range of merchandise including fashion and apparels, food products, general merchandise, furniture, electronics, books, fast food and leisure and entertainment sections. Food Bazaar, a supermarket format was incorporated within Big Bazaar in 2002 and is now present within every Big Bazaar as well as in independent locations. There are now 169 Food Bazaar outlets, including those located within Big Bazaar.

A typical Big Bazaar is spread across around 50,000 square feet of retail space. While the larger metropolises have Big Bazaar Familycentres measuring between 75,000 square feet and 1,60,000 square feet, Big Bazaar Express stores in smaller towns measure around 30,000 square feet. Most of the Big Bazaar stores are multi-level and are located in stand-alone buildings in city centers as well as within shopping malls. These stores offer over 200,000 SKUs in a wide range of categories led primarily by fashion and food products.

Marketing Mix Big Bazaar
Product:

Big Bazaar offers a wide range of products which range from apparels, food, farm products, furniture, child care, toys, etc of various brands like Levis, Allen Solly, Pepsi, Coca- Cola, HUL, ITC, P&G, LG, Samsung, Nokia, HP etc. Big Bazaar also promotes a number of in house brands like:

* DJ & C
* Tasty Treat
* Clean Mate
* Sensei
* Care Mate
* Koryo and 44 other brands.

Pricing:

The pricing objective at Big Bazaar is to get “Maximum Market Share”. Pricing at Big Bazaar is based on the following techniques: * Value Pricing (EDLP – Every Day Low pricing): Big Bazaar promises consumers the lowest available price without coupon clipping, waiting for discount promotions, or comparison shopping. * Promotional Pricing: Big Bazaar offers financing at low interest rate. The concept of psychological discounting (Rs. 99, Rs. 49, etc.) is also used to attract customers. Big Bazaar also caters on Special Event Pricing (Close to Diwali, Gudi Padva, and Durga Pooja). * Differentiated Pricing: Differentiated pricing i.e. difference in rate based on peak and non-peak hours or days of shopping is also a pricing technique used in Indian retail, which is aggressively used by Big Bazaar. e.g. Wednesday Bazaar

* 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. e.g. 3 Good Day family packs at Rs 60(Price of 1 pack = Rs 22) 5kg oil + 5kg rice + 5kg sugar for Rs 599

Place:

The Big Bazaar stores are operational across three formats — hypermarkets spread over 40,000-45,000 sq ft, the Express format over 15,000-20,000 sq ft and the Super Centers set up over 1 lakh 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. Mr. Biyani is planning to invest around Rs 350 crore over the next one year expansion of Big Bazaar. In order to gain a competitive advantage Big Bazaar has also launched a websitewww.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 customers. Promotion:

The various promotion schemes used at Big Bazaar include:
* “Saal ke sabse saste 3 din”
* Hafte ka sabse sasta din “Wednesday bazaar”
* Exchange Offers “Junk swap offer”
* Future card(3% discount)
* Shakti card
* Advertisement (print ad, TV ad, radio)
* Brand endorsement by M.S Dhoni and Asin

History of Big Bazar

Big Bazaar was launched in September, 2001 with the opening of its first four stores in Calcutta, Indore, Bangalore and Hyderabad in 22 days. Within a span of ten years, there are now 150 Big Bazaar stores in 80 cities and towns across India. Big bazaar was started by Kishore Biyani, the Group CEO and Managing Director of Pantaloon Retail. Though Big Bazaar was launched purely as a fashion format including apparel, cosmetics, accessory and general merchandise, over the years Big Bazaar has included a wide range of products and service offerings under their retail chain. The current formats includes Big Bazaar, Food Bazaar, Electronic Bazaar and Furniture Bazaar. Operations

The Big Bazaar Store in Nagpur.

Most of the Big Bazaar stores are multi-level and are located in stand-alone buildings in city centers as well as within shopping malls. These stores offer over 200,000 SKUs in a wide range of categories led primarily by fashion and food products. Food Bazaar, a supermarket format was incorporated within Big Bazaar in 2002 and is now present within every Big Bazaar as well as in independent locations.

A typical Big Bazaar is spread across around 50,000 square feet (4,600 m2) of retail space. While the larger metropolises have Big Bazaar Familycentres measuring between 75,000 square feet (7,000 m2) and 160,000 square feet (15,000 m2), Big Bazaar Express stores in smaller towns measure around 30,000 square feet (2,800 m2). Big Bazaar has the facility to purchase products online through its official web page, and offers free shipping on some of their products. Innovations

Wednesday Bazaar

Big Bazaar introduced the Wednesday Bazaar concept and promoted it as “Hafte Ka Sabse Kimti Din”. It was mainly to draw customers to the stores on Wednesdays, when least number of customers are observed. According to the chain, the aim of the concept is “to give home makers the power to save the most and even the stores in the city don a fresh look to make customers feel that it is their day”.

[2] Maha Bachat

Maha Bachat was started off in 2006 as a single day campaign with attractive promotional offers across all Big Bazaar stores. Over the years it has grown into a 6 days biannual campaign. It has attractive offers in all its value formats such as Big Bazaar, Food Bazaar, Electronic Bazaar and Furniture Bazaar – catering to the entire needs of a consumer.

[3] Timeline

Big Bazaar at Sarkhej Gandhinagar Highway in Ahmedabad
2001
* Three Big Bazaar stores launched within a span of 22 days in Kolkata, Bangalore and Hyderabad 2002
* Big Bazaar – ICICI Bank Card is launched.
* Food Bazaar becomes part of Big Bazaar with the launch of the first store in Mumbai at High Street Phoenix 2003
* Big Bazaar enters Tier II cities with the launch of the store in Nagpur * Big Bazaar welcomes its 10 million-th customer at its new store in Gurgaon 2004
* Big Bazaar wins its first award and national recognition. Big Bazaar and Food Bazaar awarded the country’s most admired retailer award in value
retailing and food retailing segment at the India Retail Forum * A day before Diwali, the store at Lower Parel becomes the first to touch Rs 10 million turnover on a single day 2005

* Initiates the implementation of SAP and pilots a RFID project at its central warehouse in Tarapur * Launches a unique shopping program: the Big Bazaar Exchange Offer, inviting customers to exchange household junk at Big Bazaar * Electronic Bazaar and Furniture Bazaar are launched

2006
* Mohan Jadhav sets a national record at Big Bazaar Sangli with a Rs 1,37,367 shopping bill. The Sangli farmer becomes Big Bazaar’s largest ever customer. * Big Bazaar launches Shakti, India’s first credit card program tailored for housewives * Navaras – the jewellery store launched within Big Bazaar stores 2007

* The 50th Big Bazaar store is launched in Kanpur
* Big Bazaar partners with Futurebazaar.com to launch India’s most popular shopping portal * Big Bazaar initiates the Power of One campaign to help raise funds for the Save The Children India Fund * Pantaloon Retail wins the International Retailer of the Year at US-based National Retail Federation convention in New York and Emerging Retailer of the Year award at the World Retail Congress held in Barcelona. 2008

* Big Bazaar becomes the fastest growing hypermarket format in the world with the launch of its 101st store within 7 years of launch * Big Bazaar dons a new look with a fresh new section, Fashion@Big Bazaar * Big Bazaar joins the league of India’s Business Superbrands. It is voted among the top ten service brands in the country in the latest Pitch-IMRB international survey 2009

* Big Bazaar opens its second store in Assam at Tinsukia
* Big Bazaar initiates Maha Annasantarpane program at its stores in South India – a unique initiative to offer meals to visitors and support local social organisations * Big Bazaar captures almost one-third share in food
and grocery products sold through modern retail in India 2010

* Future Value Retail Limited is formed as a specialized subsidiary to spearhead the group’s value retail business through Big Bazaar, Food Bazaar and other formats. * Big Bazaar wins CNBC Awaaz Consumer Awards for the third consecutive year. Adjudged the most preferred Most Preferred Multi Brand Food & Beverage Chain, Most Preferred Multi Brand Retail Outlet and Most Preferred Multi Brand One Stop Shop * Big Bazaar connects over 30,000 small and medium Indian manufacturers and entrepreneurs with around 200 million customers visiting its stores