Big Bazaar type of targeting

The direction of Big Bazaar has been clear from about the inception, though Mr. Biyani did tweak the feel of the stores quickly to adapt to the Indian market better. My post today is about BB’s sensitivity and understanding of the Indian psyche, and towards customer centricity. The instance is not new, and BB has been doing this for a while now. You could sell them your old newspapers for Rs. 25/kg (as against Rs 5/kg that your raddiwala will give), old utensils at Rs 75/kg and so on. The money that you get is not in cash but in the form of BB vouchers. So far so good, but you can’t just take the voucher and buy something and put in the vouchers. You need to buy four times (for the vouchers that you get for newspapers) the value of the vouchers to be able to use the vouchers. And eight times in case of your buying grocery, and so on. This is brilliant! Otherwise, people would start using BB as an old newspaper mart. This ensures that only people who would want to buy in bulk do this trade; this implies that the target in most cases is people who are wanting to make a trip to a BB store for their monthly grocery/ other shopping. Otherwise, it would not make sense to lug 20kgs of newspaper anyways.

Though this is not direct demand based selling, this is supply driven but surely is one of the scenarios which is more of a synthesis

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Getting it right – Part 1

We talk about the future, and what Retail will look like in 2020 (or 2010). We talk about how supply chain needs to be optimized and how we need to get customer centric. However, even now there are some basics of Retailing that are missing in our country. Many of these also have to do with their IT implementation. This is the first in the series of posts discussing such issues, with examples.

Making a promotion flow through

This is a pretty common one, and one would think that retailers could get this right in the first shot and in a jiffy. I have noticed this many times, and surely you have too. The shelf has a designated price for an SKU and has a promotion running. You pick the item, and when checking out the POS does not seem to recognize the promotion.