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Name-Ayush Karn MBA (M&S) - A0102218118

This document compares two major hypermarkets, Tesco and Big Bazaar. It provides background on each company, with Tesco being the largest hypermarket in the UK and Big Bazaar being India's first hypermarket. The document conducts analyses to compare the retail industries and customer perceptions between the UK and India for these two hypermarkets, including a SWOT analysis, Porter's Five Forces model, and recommendations.

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0% found this document useful (0 votes)
61 views

Name-Ayush Karn MBA (M&S) - A0102218118

This document compares two major hypermarkets, Tesco and Big Bazaar. It provides background on each company, with Tesco being the largest hypermarket in the UK and Big Bazaar being India's first hypermarket. The document conducts analyses to compare the retail industries and customer perceptions between the UK and India for these two hypermarkets, including a SWOT analysis, Porter's Five Forces model, and recommendations.

Uploaded by

Devanshu Ahuja
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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You are on page 1/ 18

SAP-2019

COMPARISON OF TWO MAJOR HYPER


MARKETS TESCO AND BIG BAZAAR

NAME- AYUSH KARN


MBA(M&S) -A0102218118
Contents
CHAPTER.1 INTRODUCTION ........................................................................................................................... 3
CHAPTER.2 REVIEW OF LITRATURE ................................................................................................................ 4
CHAPTER.3 OBJECTIVES AND METHODOLOGY ............................................................................................... 5
CHAPTER.4 BRIEF ABOUT TESCO AND BIG BAZAAR ........................................................................................ 6
Ch.4.1 TESCO: ............................................................................................................................................ 6
Ch.4.2 BIG BAZAAR: ................................................................................................................................... 7
CHAPTER.5 ..................................................................................................................................................... 7
COMPARISION OF RETAIL INDUSTRY OVERVIEW OF UK AND INDIA .............................................................. 7
CHAPTER.6 SWOT ANALYSIS .......................................................................................................................... 8
CHAPTER.7 PORTER’S FIVE FORCE MODEL ................................................................................................... 13
CHAPTER.8FINDINGS AND RECOMMENDATION .......................................................................................... 15
Ch. 8.1 FINDINGS: .................................................................................................................................... 15
Ch.8.2 RECOMMENDATION ..................................................................................................................... 16
CHAPTER.9 CONCLUSION ............................................................................................................................. 16
CHAPTER.10 BIBLIOGRAPHY AND REFERENCE.............................................................................................. 17
CHAPTER.1 INTRODUCTION
Tesco is the world's third biggest and UK's no. 1 hypermarket and big bazaar India's first
hypermarket, and being an understudy of advertising and universal business with the goal that I
took 2 noteworthy player of retail industry Tesco and Big Bazaar of UK and India. Presently
day's retail industry is into spotlight in light of the fact that there are two explanations for of this,
progression of the world economy and substantial players of the business have gone into the
retail business. Prior FDI in retail industry have been allowed by the Indian government with the
goal that huge quantities of global retailers intrigued to go into Indian retail industry on the
grounds that the retail business of India is more than 450 US$ and one of the main 5 retail
showcase on the planet and 84% of India's retail industry is sloppy. On the planet every one of
the clients are extremely cost cognizant. The primary thought process of the considerable number
of hypermarkets is to give items and administrations at low cost than the others hypermarkets.
Indian retail industry condition is entirely unexpected from UK. The primary contrast I found is
in India client are exceptionally cost cognizant, each thing is with MRP by the advertiser of the
specific item yet in UK client aren't particularly cost cognizant and on the item there is no MRP
by the advertiser or producer of any item, the cost chose by Tesco itself, there is no MRP
limitations. In India, expanding in the discretionary cash flow of white collar class individuals
and expanding the acquiring energy of the general population and conditions for development of
composed retail, the extensive players of retail industry like Wal-Mart, Carrefour, and Tesco and
so on watch out for Indian retail business and they are prepared to go into Indian retail business.
Retail enterprises play a noteworthy and essential part in for all intents and purposes all
economies the world over, in this report I have explore on client's discernment about the Tesco
and I did an essential research for this. I got some information about the Tesco to the 30 people
groups of London. Furthermore, I likewise have done this exploration as indicated by my goals.
The exploration is being done in the region of promoting. In this examination I additionally have
done SWOT investigation, PESTLE examination and doorman's 5 drive model of Tesco and Big
Bazaar. I thought about the UK and Indian Retail industry which is entirely unexpected from
each other. It's certain that in UK and India the retail parts work in an unexpected way. So I
endeavored to dissect and correlation of UK and India Retail Industry and client's observation
about Tesco and as indicated by my goals.

CHAPTER.2 REVIEW OF LITRATURE


Role of Retail in the world-
Retail play an imperative and significant part worldwide in expanding profitability over an
extensive variety of customer merchandise and ventures. Retail intends to offer of products and
enterprises from organizations or people to end clients. Retailers obtained merchandise in huge
amounts from makers or straightforwardly to wholesalers. Retailers are a piece of a coordinated
framework that is called Supply chain. Retailing should be possible by way to entryway, on the
web or settled areas like markets and stores. Retail can be distinguished into two structures; one
is sorted out retail and other sloppy retail. Sorted out retail resembles grocery stores, shopping
center, and hypermarkets, sloppy like little shop, road shop, general stores and so on. Retail is
grouped by kind of items like Food items, strong products (hardware, wearing merchandise
apparatuses and so on), consumables products (attire, textures array and so on) and sorts of
retailers by promoting procedure is retail chains, distribution centers stores, markets,
hypermarkets, general stores, shopping centers, Online business and so forth. Retail can be
recognized into two structures; one is composed retail and other chaotic retail. Sorted out retail
resembles which are enlisted, authorized like grocery stores, shopping center, and hypermarkets,
chaotic like little shop, road shop, general stores and so forth.

Ascending in GDP development, expanding populace, expanding in discretionary cash flow, and
expanding shopper obtaining power are consolidating to drive the Global Retail industry and
open doors for retail fragment players. The retail advertise is come to an expected $20,002
billion out of 2017 with a CAGR of 3.9% throughout the following six years (2018– 2021).

CHAPTER.3 OBJECTIVES AND METHODOLOGY

It is evident that being in two unique nations the retail segments work in an unexpected way.
India and United Kingdom both are enormous countries with a ton of accessible assets. What's
more, the retail business is an extremely immense market of both the countries. There is a
gigantic extension for hypermarkets to set up a major feet in piece of the overall industry, if
systems are in line. In the report I will endeavor to examine UK and India's hypermarkets, their
way of life affect on hypermarkets and different viewpoints that impact customer choices in both
the nations.

1. To break down the 2 noteworthy player of retail industry of UK and India by watching out for
techniques utilized by Big Bazaar in India and Tesco in London.

2. To contemplate the UK and India retail industry.

3. Correlation of advertising techniques embraced by Tesco and Big Bazaar.

4. To consider the view of client about Tesco.

5. To contemplate the distinctive advertising procedures utilized as a part of the sorted out area
in both the nations and the sort of customers they serve.
Ch.3.2 METHODOLOGY:

With a specific end goal to accomplish my targets we utilized this longitudinal exploratory
investigation considered both subjective and quantitative research systems.

The inquire about is to accomplish the targets is subjective and additionally exploratory in
nature, and is intended to give the essential data required by investigate goals.

Quantitative is being done, and furthermore and subjective research is being done both
utilizing essential and auxiliary data that is accumulated and gathered particularly for this
examination.

Qualitative auxiliary data from an assortment of sources is assembled like Tesco Case Studies,
Tesco Brochures, Tesco Website, books, online diaries, Newspaper and Magazine (The Grocer)
Articles,

The Study is done in the region of marketing.

CHAPTER.4 BRIEF ABOUT TESCO AND BIG BAZAAR

Ch.4.1 TESCO:

Tesco was established in 1919 by Jack Cohen from a market slow down in London's East End.
Throughout the years Tesco's business has developed and Tesco now work in 14 nations around
the globe, utilize more than 500,000 individuals and serve a huge number of clients consistently.
They have dependably been focused on giving the best shopping background. Today they keep
on focusing on making the best choice for their clients, partners and the groups they serve. Tesco
Is a UK's basic supply and stock retailer and the greatest hypermarket of UK, headquarter of
Tesco in Cheshaunt, United Kingdom. Tesco stores are the backup of Tesco PLC in UK. Tesco
stores are isolated in 6 positions like Tesco express, Tesco Metro, Tesco superstores and so on.
The vision of Tesco is to be the most profoundly esteemed by the clients they serve and the
group in which they work and their staff and the investors, a cutting edge and inventive co.
what's more, applying their abilities all around. In India Tesco is a joint wander with TATA
gathering and the stores named as 'Star Bazaar'. Tesco sections its store portfolio six four
distinctive store designs. Express, Metro, Superstore, Extra, One-stop, Tesco and Home in
addition to.
Ch.4.2 BIG BAZAAR:

Big Bazaar was established in October 2001 by Kishore Biyani the Chairman Pantaloon retail
India restricted, future gathering. Enormous Bazaar takes a shot at a similar economy
demonstrate as Wal-Mart. Furthermore, Big Bazaar had extensive accomplishment in numerous
Indian urban communities and residential areas. The principle vision of the Big Bazaar is
'Everything at each place at each time for every Indian client at an extremely beneficial way.
Enormous Bazaar is India's number 1 hypermarket and there are 214 stores in 90 urban areas of
India till June 2, 2012.big bazaars the quickest developing hypermarket of India. The slogan of
Big Bazaar "isse sasta aur kuch nahi!" which itself demonstrates that Big Bazaar concentrate just
those clients who are exceptionally value cognizant and they have faith in low cost. They give
best item at the best cost. Enormous Bazaar is arranged close transportation center points to pull
in most extreme clients.big bazaar with its scope of items and administrations offering mirrors
the yearnings of a huge number of Indian.

CHAPTER.5

COMPARISION OF RETAIL INDUSTRY OVERVIEW OF UK AND INDIA


UK INDIA
1. In UK 11% of all VAT - enrolled 1. In India just 16% retail industry is
business and retailers. Also, sorted out and rest 84% is sloppy.
composed retail is 70% and 30% is
sloppy or conventional. 2. The retail business of India
produces right around 14 to 15% of
2. The retail business of UK produces its GDP.
very nearly 8% of the GDP.
3. The Indian retail showcase is US
3. Hypermarkets commands the UK $450 billion and comes one of the
nourishment retail advertises, best five retail advertises on the
with56% of its deals. planet.

4. The retail business of UK gives 4. It's ready to end up $1.3 trillion


work of 2.9 million individuals. open door by 2020.

5. The UK retail area makes up 5. The Indian government as of late


roughly 10% of its all work. It is the took a choice to permit up to 100%
greater part of individuals who work FDI in multi-mark retail and raise the
low maintenance in the retail segment farthest point for abroad interest in
and it is contrasted with not as much single-mark retail to 100%.
as a third over the world economy.
6. In November 2011, India's focal government
6. UK is the most universal retail showcase reported retail changes for both multi - brand
with the most astounding extent of worldwide and single- brand stores.
retailers exchanging.

CHAPTER.6 SWOT ANALYSIS

STRENGTHS WEAKNESS
1. Tesco is the number 1 grocery 1. Tesco is more subject to UK
store chain in UK. advertise.

2. Tesco has solid brand name . 2. In UK transport costs is high.

3. Nearness of Tesco is universally. 3. The technique is single point to


serial acquisitions.
4. Money related influence is
exceptionally solid. 4. The primary trouble is expanding geological
spread makes concentrate on particular
5. Tesco is world's Third biggest retailer. markets.

OPPORTUNITIES THREATS
1. The open door is to open new 1. The principle danger is
store. worldwide extension of the
business.
2. Asian market has tremendous
retail industry and in developing 2. most minimal value war
stage so Tesco must go into Asian between hypermarkets is the
markets. primary danger.

3. Tesco's chance is in vital union 3. the opposition is high from


with different organizations. Asda and wal-bazaar.

4. Tesco should attempt into non- 4. Crude material cost is rising


sustenance retail since they've step by step.
solid money related influence.
5. Advancement by other grocery
5. Tesco ought to likewise attempt stores is a very danger.
in Health and Beauty.

Ch.6.2 SWOT ANALYSIS OF BIG BAZAAR:

STRENGTHS WEAKNESS
1. Big bazaar offers an extensive 1. Big Bazaar is limited to India
variety of items and administrations. advertise just it isn't universally.

2. Big Bazaar is moderate for white 2. Big Bazaar keeps thin edge.
collar class and upper working class.
3. There are long lines at charging
3. Big Bazaar gives alluring limited counters of Big Bazaar which is
time offers, exceptionally tedious.

4. The methodology of Big Bazaar is 4. Since they have faith in low value ensure
low value ensure which pull in with the goal that high marked items are as yet
clients. missing from Big Bazaar's line of items.

5.Big Bazaar has high brand value.


OPPORTUNITIES THREATS
1. They've chance to extend 1. India is creating nation and their
comprehensively by tie-ups other approaches change arbitrarily so
multinational organizations. changing in government strategies is
danger for Big Bazaar.
2. They should go into high premium
fragments. 2. After the FDI in retail industry the
principle player of retail industry like
3. Indian composed business is just Wal-bazaar, Tesco have gone into
16% so that there is a great deal of Indian retail industry.
degree in Indian retail industry.
3. The opposition of Big Bazaar is
4. In the rustic territory the entire presently with Wal-shop and other
retail business are chaotic so they've worldwide stores so the risk is
an opportunity to go into country contender's worldwide nearness.
market of India.
4. High rivalry.
5. Mail culture is expanding in India
so they've opportunity to extend their
retail business generally.

MARKETING 4 P’S OF TESCO

Product:

Tesco has a tremendous scope of item offerings at its different stores. The item offering is huge
to oblige each need and inclination of the clients from various portions of the market. The item
methodology in the showcasing blend of Tesco can be comprehended as beneath.

The items are: Food, Pet care items, Beverages, Frozen sustenance, Bakery items, Technology
and gaming items, Home electrical items, Home and garden items, Toys, Do-it-yourself (DIY)
and auto items, Sports and recreation items, Baby and little child items, Party and blessing items,
Health and magnificence items, Clothing and adornments, Entertainment and books

Tesco likewise has its own particular brands these are: Tesco, Finest, Everyday Value, Tesco
Loves Baby, Tesco Lotus, Tesco kipa, Tesco Bank, F&F Clothing, Tesco Value, Choice

Price:
Tesco takes after the system of cost administration in its evaluating procedure. It gives the most
reduced evaluated merchandise while in the meantime looking after quality. Tesco utilizes
economies of scale and the best channels for obtainment to keep up low costs. Tesco constantly
works with its providers to enhance and influence the supply to anchor productive to diminish
costs. Tesco has cut down the cost of a normal week by week shop by more than 3% out of 2016.
Tesco gives low and stable costs, subsequent to getting criticism from its clients Tesco chop
down special cost to additionally bring down costs.

Place:

Tesco has 6,900+ stores in 11 nations. Tesco has the accompanying sorts of stores: Tesco Metro,
Tesco Express, Tesco Extra, Tesco Superstore Tesco superstores are expansive general stores
which offer basic supplies and a little scope of non-nourishment things. Tesco Metro are
measured on a normal 1,000 square meters, arranged in towns and downtown areas.

Promotion:

Tesco has a solid brand picture which depends on low costs. Tesco's special exercises are
focused on this topic. Tesco utilizes hoardings, TV advertisements, and magnanimous occasions
as limited time channels. It likewise uses to a vast degree special rebates and offers, for example,
get one get one. Tesco has a dedication card called 'Tesco Clubcard' which enables Tesco to
portion and focus on its clients. Clubcard proprietors get directs which they can recover toward
get rebates. Clubcard proprietors likewise get customized rebates and offers. Tesco likewise
offers and advances its items on the web.

MARKETING 4 P’S OF BIG BAZAAR

PRODUCT:
Big Bazaar offers the most extreme assortment for each class of item. The item is the same in
each store in the city however the brand alternatives are more in Big Bazaar and the amount for
every item isn't restricted to huge packs as it were. The wares sold by the retail chain
incorporates its "own particular items" which prepare a conveyance organize. The claim results
of Big Bazaar incorporate My World mold magazine which isn't accessible anyplace else. So
costs are low for such items.

PRICE:

Price is the basic point in a focused industry. Big Bazaar takes a shot requiring little to no effort
demonstrate. It considers its marked down cost as its USP. There is a normal rebate of 6-8% on
all things in regard to their MRP. Price of items are low since it can secure stock specifically
from the producer. There are immense cooperative energies as far as mass buying, transportation
and focal warehousing. These all elements are exceptionally useful for the retailers to keep low
costs.
PLACE:

Place implies the area of the business. Big Bazaar has dependably chipped away at modest areas.
It targets semi-urban populace with its arrangement. Its technique is to locate a minimal effort
area and it never goes for problem areas in the city. It depended on limited time exercises to
compensate for ugly areas. Another technique utilized by Big Bazaar to beat area impediment is
utilization of web. It has propelled a stock retailing site www.futurebazaar.com which targets top
of the line clients prepared to utilize charge cards. The advancement of this site is done through
commercial on Google. The site is put as supported connection.

PROMOTION:
Big Bazaar has enormous advancement spending plans. The biggest thought behind all
commercials is to influence individuals to do mass shopping. There are 2 sorts of limited time
methodologies of big bazaar. One is the commercial which advances the brand and makes
mindfulness towards individuals. It isn't focused at advancing each store however just makes a
picture of Big Bazaar as minimal effort shopping alternative. The store has publicized through
TV, street appears and furthermore began reality demonstrate wrote special battle "The Big
Bazaar Challenge." Promotions like "Sabse Sasta Din"(Cheapest Day) are an extremely fruitful
methodology to get great outcomes
CHAPTER.7 PORTER’S FIVE FORCE MODEL
Ch.8.2 Big Bazaar Porter’s five force model
CHAPTER.8FINDINGS AND RECOMMENDATION

Ch. 8.1 FINDINGS:

After all the exploration work I've done I discovered some intriguing actualities about Tesco and
Big Bazaar, If we discuss Tesco and Big Bazaar showcasing procedures than these are diverse
from multiple points of view:
Tesco works universally yet Big Bazaar is in India just, with the goal that Tesco's
methodology's is diverse for various nations, Tesco has more than 5000 stores in UK yet Big
Bazaar has just 300 stores in India.
At Big Bazaar holding up time as far as Billing is a worry and all the more so amid the ends of
the week. Also, amid my own perception when I found in India (Though it was for 3-4 hours
which is a brief time of time),it was noted by me that couple of clients who had little to buy, left
their trolleys because of long line at the counter.
Opposite of this Tesco has an aggressive advantage, Tesco has its store at each stick code of
UK, Tesco has immense system. So individuals discover Tesco effectively.
In India cost of any item chose by the producer or advertiser of the specific item, nobody can
offer an item more than the MRP chose by the maker yet in UK things are very surprising cost of
any item chose by the merchant, so Tesco has appropriate to offer an item as he need however
Big Bazaar can't offer any result of most extreme of the MRP.
Retail industry assume an imperative part in the two nations, retail industry of UK produces 8%
GDP and in India its 14 to 15% of its GDP.
Main contrast is that UK's retail industry is 70% composed and Indian retail industry is just
16% sorted out which has a tremendous effect.
Indian retail industry comes in top 5 of the world, and the odds of developing of this retail
business is high in India since shopping center culture is developing in India, Indian clients are
more cost cognizant than the UK, and Indian government permits 100% FDI in retail business
and there are such huge numbers of reasons so we can state Indian retail industry will become
speedier than the UK retail industry.
Ch.8.2 RECOMMENDATION

Recommendation for Tesco

More reliance on UK advertise isn't useful for Tesco. Competition is high so they ought to get upper hand
as a result of their system. Tesco needs to concentrate on his club card reliability program with the goal
that client can get advantage of that and they can hold the client over and over.

Recommendation for Big Bazaar:

At Big Bazaar they should they ought to be expanded charging counters and representatives with the goal
that clients don't confront any issue in regards to their buy merchandise and holding up long lines which
drive them to leave their acquired products. Big Bazaar must explore new territory than others, must bring
advancements, new developments and distinctive offers. They need to center their CRM.

CHAPTER.9 CONCLUSION

Tesco and Big Bazaar are no.1 hypermarkets of UK and India, the technique of both the stores to give
best item, best case scenario value, value war has been started between every one of the hypermarkets and
the benefit of this getting to the clients straightforwardly. There are the numerous administration
arrangements which influences these stores unique in relation to every others. Big Bazaar is restricted to
India while Tesco is all inclusive and world's third biggest hypermarket so the working style, showcasing
methodology are unique. Tesco stores were produced at various areas which was a serving favorable
position to various purchaser requests. These away, edge of town super stores offer one-quit shopping
administrations for week after week trips, the littler nearby saves top up shopping offices. In this manner
the Tesco's portfolio was supplemented. What's more, Big Bazaar is arranged close transportation centers
of India to draw in greatest clients. Big Bazaar's system is just for the working class clients of India by
giving those alluring offers and low value ensure.
The fundamental weaknesses of both the stores is that Tesco's reliance just on UK markets and also Big
Bazaar is depends just on India showcase. Tesco has its quality is extremely valuable and focused against
his rivals Asda and Sainsbury's and so on. In India after the 100% FDI interest in retail industry, rivalry is
going to high for the Big Bazaar, in light of the fact that the big players like Wal-Mart, Carrefour is
prepared to go into Indian retail industry. Our decision after all my research is Tesco and Big Bazaar is
big player of retail industry of UK and India, and retail industry assume a vital part for the development
of economy of any nation. What's more, low value war between every one of the hypermarkets is profited
to the client eventually.

CHAPTER.10 BIBLIOGRAPHY AND REFERENCE

Websites:

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http://www.tescoplc.com/index.asp?pageid=12. Last accessed 27th feb 2012.

Web 2:Tesco PLC - About us - Our history. 2013. Tesco PLC - About us - Our history. [ONLINE]
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at:http://articles.economictimes.indiatimes.com/2012-11-18/news/35185252_1_back-end-infrastructure-
retail-industry-fdi. [Accessed 20 March 2013].

Web 4: Future Group's key managers moving out: D Mall joins Reliance Retail -Economic Times. 2013.
Future Group's key managers moving out: D Mall joins Reliance Retail - Economic Times. [ONLINE]
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March 2013]

Web 5: India Leading Retailer, Million Square Feet Retail Space – Pantaloon. 2013.India Leading
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Web 6: Big Bazaar, India’s Hypermarket Chain: Can its Ambitious Future Plans Succeed? Case Study |
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Ambitious Future Plans Succeed? Case Study | Vision, Mission and Goals Case Studies. [ONLINE]
Available at:http://ibscdc.org/Case_Studies/Strategy/Vision,%20Mission%20and%20Goals/V
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Web 7: The Indian Retail Industry 2012 - Research and Markets. 2013. The Indian Retail Industry 2012 -
Research and Markets. [ONLINE] Available
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March 2013].

Web 8: Profile: Tesco - the UK’s largest retailer | Analysis | Retail Week. 2013. Profile: Tesco - the UK’s
largest retailer | Analysis | Retail Week. [ONLINE] Available at: http://www.retail-
week.com/home/profile-tesco-the-uks-largest-retailer/5046179.article. [Accessed 20 March 2013].

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