8 Ways To Win - Spencers & Big Bazaar

8 Ways to Win in Retailing
K. Dasaratharaman
8 Ways to Win in Retail:

The Pentagon & Triangle Model
Place (Size, Location , Layout & Design)
Systems
Communication
- Positional
- Promotional
Product
- Style & Fashion
- Intensity
- Assortment
Logistics
Value (Price, Quality)
Suppliers
People ( Service, Knowledge, Climate)
Pentagon elements - Place , Product,

People, Value and Communication
These are aspects that are external facing for the Retailer
These are the aspects that are Experienced by the
Consumer.
These are the aspects that will get compared by the
Consumer
These are all connected to Strategic Design of the Retail
format.
Pentagon elements differentiate the Retail format from
competitors.
Need to DESIGN the strategies that will differentiate the
Retail Brand.
Triangle elements Systems , Logistics

and Suppliers
These are aspects that are Internal facing for the
Retailer
These are the aspects that have great impact on
the Pentagon aspects but are not seen by the
Consumer.
How well these aspects are designed and
managed result in Consumer experience and
retail success.
Triangle elements result in Cost Leadership
These are all connected to Strategic Design of the
Retail format.
The Key questions for a New Retail brand

Pentagon elements :
What are our strategies?

How Differentiated are they?
How Sustainable are they?
What COMPETENCIES do we need to Win?
Triangle elements:
What are our strategies?
What COMPETENCIES do we need?
How to make it sustainable?
The 5 Key questions for each Pentagon

and Triangle Corner for an ongoing
Retail brand
Do we Win?
By How much? (a little or a lot)?
Is it getting Better or Worse (direction )?
Does anybody Care?
Is it Sustainable?
8 Ways to Win in Retail The Spencers

Experience
Place (Size, Location , Layout & Design)
Systems
Communication
- Positional
- Promotional
Product
- Style & Fashion
- Intensity
- Assortment
Logistics
Value (Price, Quality)
Suppliers
People ( Service, Knowledge, Climate)
Place
Locations in correct catchments basis research
Store design done to aid customer flow
Layout done as per customer category
adjacencies
Fixtures customised to the category
Product
Research leading to
correct range OPPs,
price laddering;
Differentiators thru
special categories wine ,
gourmet, pattisserie.
SKU pruning to suit
purchase..
New product information
to relevant consumers
People / Processes
Training as per moments of
truth meet and greet ,
service, cashiers
Stacking as per plannogram
Customer service within the
bay
Speed up check out time:
POS system, product
masters, cashier training
Work with vendors on
consumer insights
Empower and hold people
accountable...
Vendor
Business
Insights &
Strategy
Retailer
Insights
&
Execution
BUILD
Happy
Shoppers
Price and Value

KVI / KVC, OPP = market right prices
Loyalty program: monthly sms on points
accumulated and redemption offers..
Basket analyses to determine who buys
what and what are the opportunities..
Pin point communication to lapsed users
Lost miles card points accrual thru the
website / helpline
12 hours toll free helpline
Communication
Spencers- makes fine living affordable
Prices you can Trust
Quality since 1863..
Triangle elements
ARS
Price benchmarking
Back end for F&V
Outsourcing of Fish & Meat
Put away vs Flow thru at the DC
Spaceman
Category Mgt
Plannogramming
Increasing consumer aspirations, a growing middle class

and a younger demographic profile of our population is
helping the growth of the consumption economy.
Modern retail is playing a vital role as a catalyst in driving
consumption- led growth in India.
As modern retail grows in India, Indian consumers will not
only have more choice and convenience but it will also
have a broader social impact of generating millions of
jobs as well as creating markets for domestic
manufacturers, producers and service providers.
Kishore Biyani Group CEO , Future Group
The opportunity
% Share
2007
Growth
rate
(200712)
Market
size
US$
billion
2012
% Share
2012
Growth
Rate
(201217)
Market
Size
US$
billion
2017
% Share
2017
212.0
62%
8%
307.3
58%
7%
430.9
54%
Personal Care
15.4
5%
8%
22.6
4%
8%
33.2
4%
Apparel
26.4
8%
12%
45.5
9%
10%
73.2
9%
3.4
1%
9%
5.3
1%
8%
7.7
1%
Furniture & Furnishings
10.3
3%
13%
18.5
3%
11%
31.2
4%
CDIT
15.4
5%
12%
26.5
5%
9%
40.8
5%
Jewellery & Watches
13.7
4%
12%
23.6
4%
10%
38.0
5%
Medical Care & Health Services
34.2
10%
13%
61.6
12%
12%
108.6
14%
0.6
0.2%
15%
1.3
0.2%
24%
3.8
0.5%
Others
10.6
3%
11%
17.5
3%
13%
32.2
4%
TOTAL
342
100.0%
11.9%
530
100%
11.4%
800
100%
Food, Beverages & Tobacco
Footwear
Recreation
Market
Size
US$
billion
2007
Upgrading of the Consuming Class will be the

next inflection point
Middle class to swell from 5% of population in 2005 to 41% of population by 2025

The heart of the Diamond will look for Quality versus just Price driven by needs
of Fashion, Convenience, Durability & Experience
High
Income
Middle
Income
50 Million
(5%)
318 Million
(27%)
583 Million
(41%)
Middle Income
Low Income
2005
Source : McKinsey Global Institute
Market Place & BHPCs Vision
2015
2025
Overall Retail to double in next 7 years

Modern Retail to quadruple in the same period
Current Size & Future Projections for Indian Retail Market
US$ Billion
25% share
900
800
700
600
500
400
300
200
100
0
800
16% share
3.5% share
342
373
408
445
486
530
200
26
39
59
87
12
18
2007
2008
2009
2010
2011
2012
Total Retail
Source: Technopak Analysis : 2010
Market Place & Spencers Vision
Organized Retail
2017
Consumer Behavior of the Middle Class
Bazaar shopping
Touch and feel shopping
Bazaar environment
Bargain hunters
Snacking during shopping
Brand Big Bazaar..

Big Bazaar and the Indian
bazaar concept ..
Reflected in :
Locations : Sec B/C
catchments
Range & Assortment: Pan
Indian + Local
Bazaar Ambience:
Floor stacking, overspills
Open gunny sacks,
Pickle counter, chaat
counter..
Managed chaos..
Unattended service
Brand Big Bazaar..

Big Bazaar consumer understanding
and the Indian bazaar bargain
idiom
Reflected in :
Price points / Discounts : OPPs ,
KVI,
Sabse Sasta / Maha Bachat:
Positional + Promotional
communication

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8 Ways to Win in Retailing

8 Ways to Win in Retail:

Value (Price, Quality)

People ( Service, Knowledge, Climate)

Pentagon elements - Place , Product,

Triangle elements Systems , Logistics

The Key questions for a New Retail brand

What are our strategies?

The 5 Key questions for each Pentagon

8 Ways to Win in Retail The Spencers

Value (Price, Quality)

People ( Service, Knowledge, Climate)

Price and Value

Increasing consumer aspirations, a growing middle class

Furniture & Furnishings

Jewellery & Watches

Medical Care & Health Services

Food, Beverages & Tobacco

Upgrading of the Consuming Class will be the

Middle class to swell from 5% of population in 2005 to 41% of population by 2025

Market Place & BHPCs Vision

Overall Retail to double in next 7 years

Source: Technopak Analysis : 2010

Market Place & Spencers Vision

Consumer Behavior of the Middle Class

Brand Big Bazaar..

Brand Big Bazaar..

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