Market segmentation using Big Bazaar

1. Vignesh-Bibin-Sharique-Kowshik-Madhumati

2. About Big Bazaar
Largest hypermarket chain in India.
Brain-child of Kishore Biyani, first generation
entrepreneur.
First store opened in Kolkata in October 2001.
Two more stores opened in same month at
Hyderabad and Mumbai.

3. Market Segmentation
Market is not just ANY people, they have to have
Willingness to buy Purchasing power (money) Authority to
buy.
Market Segment is, Set of potential customers Who have
similar needs Who reference each other when buying.
Big Bazaar in this context have won the hearts of the
customer and also changed the buying behavior of people
as Big Bazaar provides all items in one roof at low rates.
"We are not in the business of selling ambience, but in the
business of giving the best possible deals to our
consumers.“ This how the Big bazaar segmented itself from
others and captured the market share.

4. More Insights on Segmentation
Segmentation is grouping people who think/are alike into one.
The segment which Big Bazaar caters to is middle class consumer. It sets
its marketing, prices and products for this consumer the image that it
creates is being cheap with quality.
Big Bazaar started off with metro cities Kolkata, Hyderabad, Bangalore
and eventually has moved to Tier-2 and Tier-3 cities .The Indian middle
class consumer is more price-sensitive than service-sensitive

5. Essentials of Segmentation –
Size and Profile
Essentials of effective Segmentation can be Measurable aspects like
Size, Profile.
Big Bazaar in this aspect is spot on. It identified the size of the market
for the better products at a lower price was huge and entered into the
hyper market segment which gives different products in a single roof.
Being the first largest retail store in India high brand equity through this
Market Segmentation and it has created a different image for its
products as the cheap and best.

6. PROFILES OF SEGMENTATION
Profiles of segmentation may include Geographic, Psychographic, and
Demographic Segmentation. The market and its boundaries in each
category has been clearly identified by Big Bazaar
Based on the Attractiveness and Estimated profitability of each group stores
in each location has been segmented and made sure that Need of the
people in each part has been clearly addressed.
Big Bazaar has been spread through North, South, East, West catering and
making accessible for different needs of different people,.
Conceptually it makes itself distinguishable and
respond differently to marketing mix elements and
programs
Big Bazaar establishes its stores in the heart of city and if in malls the store
is in the Ground Floor facing the entrance of the Mall to attract Customers.

7. Contd.,
Psychographic Segmentation of Big Bazaar is according to Lifestyles of
people in a particular Zone. Interests and Values of people in the Zone is
given importance.
For Example Big Bazaar has agricultural Equipments in some districts
where the Market size of Farmers and Agriculturalist is high.
Attitude of the people is also evaluated thoroughly and strategies,
promotions are designed according to it.
Some may be value conscious, brand loyal. Also there may be region
whose disposable income can be high.
Based on the Demographic Segmentation they have different sections
for different ages. In particular “Fashion Bazaar” that has new, stylish,
fashionable clothes for all age groups at nominal price.

8. TARGETING
Targeting is generally by evaluating market segments, Level of
competitors, Power of buyers and suppliers.
Generically it targets price conscious customers.
It targets semi-urban population with its placement of stores,.
Big Bazaar has found that children and women are primary decision
makers and it specifically targets that category.
Growing young working professionals and Middle class category is also a
preferred category.
For high end population it has launched a merchandise retailing website
www.futurebazaar.com which targets high-end customers ready to use
credit cards.

9. POSTIONING
Big Bazaar generally Positioned itself as a low-cost retail outlet and
believed in low pricing strategy. This has been a main factor in attracting
the customers.

10. Decision Process
Problem recognition & Problem Awareness
Information Search
Evaluation OF Alternatives
Purchase
Post Purchase Evaluation

11. Decision Making Process
 Active Problem recognition by the consumer
 Internal and External search of information for choosing
Big Bazaar. Eg: search for offers

12. Evaluation of alternatives:
• Recommendations of Friends ad Family
•Best deals and offers available
• Proximity from home
• Availability of products required
• Price Sensitivity
Purchase:
• Repeated Purchase
•Long term commitments
Post Purchase:
• Dissonance barely occurs.
Decision Making Process

13. High Involvement ↔ LowInvolvement
RPS LPS
1. Problem recognition
Actual state type to
Desired State
Actual state type
2. Information Limited Minimum
search Restricted to
Mostly internal internal sources
sources only.
a) Number of Several
brands considered One
b) Number of
Several
sellers considered One/Few
3. Evaluation of alternatives
Number of product/service attributes
evaluated
Moderate
Moderate
Simple (if at all)
One/None
4. Purchase Not so gradual Immediate
5. Post purchase processes
Cognitive
dissonance would be rare
Brand loyalty.
Repeat purchase.
6. Time spent in purchase Moderate/Little Small/Minimal
7. Types of goods Mixed Convenience

14. FACTORS INFLUENCING CONSUMER BEHAVIOR
Cultural Factors
Culture
Sub Culture
Social Class
Social Factors
Reference groups
Family
Roles & Status
Personal Factors
Age and Life Cycle
Occupation
Economic
Circumstances
Lifestyle
Personality and
Self Concept
Psychological
Factors
Motivation
Perception
Learning
Beliefs and
Attitudes
Buyers

15. Learning
• Motivation: The low prices and constant offers
• Cues: Advertisements, posters, in store promotions
• Response: People choosing Big Bazaar over other
departmental stores
• Reinforcement: The offers and deals lead to repeat
visits to the stores.

16. Perceptual Selection
Nature of
Stimulus
Advertising-Isse Sasta aur
Acha Kahi nahi, Naye
India ka Naya Bazaar,
Wednesday bazaar-
HAFTE KA SABSE SASTA
DIN, Exchange Offers
Brand name- largest
Hypermarket Chain in
India
Expectations Low Price , Helping Staff
All products under one
roof
All brands of products
available
Motives Clothes, Food Items Grocery, Accessories

17. Motivation
Big Bazaar caters to the basic
needs of a consumer
Maslow’s hierarchy

18. Elements of Diffusion
Diffusion
Innovatio
n
Social
System
Time
Communi
cation

19. Innovation – Continuous Innovation
Social System – Middle class people
Time – Early Adopters, Early Majority,
Late Majority
Communication – Print, TVC campaign,
Social Media

20. Innovation
Continuous Innovation
Wednesday Bazaar Sabse Sasta Din
(Sabse Sasta, Sabse Acha)

21. 6 days Maha Bachat The Great Exchange Offer

22. Social Media

23. Market Research on Big Bazaar
Research Type: Descriptive Research
Respondents: 50
Location: Express Avenue
Collection Method: Primary-Questionnaire
Tool used: IBM SPSS

24. 47.41%
52.59%
Gender
Male
Female
15%
24%
20%
41%
Profession
Business
Service
Home maker
Students
The proportion of women
visiting Big Bazaar is slightly
more than the men
TARGET SEGMENT
Students make the largest
part of the population
visiting Big Bazaar because of
the low prices. The reason
why home-makers are not at
the 1st rank is probably
because they tend to make
most of their purchases from
vendors near their residence.

25. 23.70%
14.30%
14.50%
10%
33%
below Rs.10000
Rs. 10000-…
Rs. 20000-…
above RS.…
Dependent
Income of people
Number of respondents
12%
31%
11%
46%
Frequency of Visit
Weekly
Monthly
Quarterly
On
Unplanned
basis
BRAND PERSONALITY
highest people-dependents , least-
high income group. positioning of
“Sabse Sasta, Sabse Acha” worked
out for Big Bazaar and depicted the
brand as ‘SINCERE’
BRAND LOYALTY
The highest number of people
said that their visits were
unplanned.
Brand Loyalty- weak.

26. 22.81%
40.93%
18.76%
17.48%
Marts where people shop other than
Big Bazaar
Heritage
Nilgiris
Star Bazaar
Reliance Mart
Nilgiris is the most popular Mart where people
like to shop other than Big Bazaar.
This shows that they are not brand loyal to Big
Bazaar.

27. 20.50%
60.20%
19.25%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
Preferred days
Preferred
days
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
2.70%
15.50%
28.40%
53.30%
Preferred time of the Day
Preferred
time of the
Day
people preferred to shop on weekends
inspite of the “Wednesday bazaar-
HAFTE KA SABSE SASTA DIN”
Offer. This shows that the Wednesday
campaign was not much of a success
The highest number of
people said, their visits were in the
period of 6pm-10pm i.e after work
hours

28. Clothes
29%
Accessorie
s
15%
Grocery
18%
Food
Items
28%
Electronic
Items
7%
Others
3%
Types of products purchased
MOTIVES OF PERCEPTUAL SELECTION
people visit Big bazaar for not only groceries, but also other items
such as- Clothes, food items and accessories

29. Mode of Payment
0
100
200
300
400
Cash Credit Card Debit Card
316
72
17
Mode of Payment
Mode of Payment
Nearly 80% of the consumers of Big Bazaar preferred to pay
their bills through cash.
Only a little more than
20% paid through credit or debit cards.

30. ATTRIBUTE RANK
Price 1st
Variety 2nd
Quality 3rd
Service 4th
Ambience 5th
Price is the main factor
why people visit Big
Bazaar.
Cognitive components:
Variety (2nd), Service (4th)
Affective components:
Ambience (5th)
Conative components:
Price (1st)

31. 0.00% 10.00% 20.00% 30.00% 40.00% 50.00%
< 30 mins
30mns-1 hr
1 hr-2 hrs
> 2 hrs
5.90%
31.80%
45%
17.30%
Time Spent per Visit
Time Spent per Visit
Less than 6% people said that they spend less than 30 mins at
Big Bazaar. This is a motivating revelation from the people.

32. 40
138
154
73
Money Spent per visit
< 500
500-1000
1000-2000
> 2000
More than 50% of Big Bazaar customers pay a bill
of more than 1000 rupees per visit. This is another
motivating
point to make note of.

33. Brand Personality
• Sincerity
-Provides a complete shopping experience
- Lives upto the promises communicated
through ads.
• Competence:
-Availability of products
-Best offers and deals
-Stores widely spread
-Reliable
• Ideal Self Image

34. Thank You