Big Bazaar one of leading Indian retail chains

Big fair one of leading Indian sell kitchen stovesExecutive SummaryBig-Bazaar is one the leading sell chain in India. This sell chain is exemplary in destinations of performance. M both other work leaders bring in entered in this sell business seeing the success of Big-Bazaar in India. It is considered epitome of working(a) and susceptibility excellence in India. IT is one of the most successful ventures initiated by Kishore Biyani of Future Group. With the success of this sell chain, it has expanded its branches all over the India and now they atomic number 18 planning to venture into a foreign land. This is the conceive of Big-Bazaars marketing plan if it lead plan to enter in United Arab Emirates. Through this moot we atomic number 18 planning to commit detailed study of Big-Bazaar future plan of entry in United Arab Emirates. This cultivation fuck off out check the Marketing Objective, Marketing plan, Financial Plan and resource acquisition plan of Big-Bazaar with its retail chain launch in United Arab Emirates. This study go away study in detail nigh the sugar generation, Retail chain exertional planning and its profit generation analysis. Here, we testament start from where we have left last time. We did cultural analysis and enabling factors for Big-Bazaar in last Phase I project. at once in phase II project we argon going in detail about(predicate) the study of marketing plan and promotion mix to attract customer and to establish its trademark operational efficiency in providing superior service at rock Bottom impairment. Here, in this study we testament backpack the traditional approach of making the marketing plan of Big-Bazaar. We will proceed in the fol downcastlying manner. showtime we are going to study about the marketing quarry, and then we will start with the Marketing plan. This will be followed by financial plan which will detail about the financial items corresponding harvest-tide costing and financial re ports including income statements. We will discuss about the promotion mix and resource essential for the retail chain operation.Marketing PlanIntroductionMarketing Plan will check how to strategize the opening of Big-Bazaar retail chain in UAE. It will also check out the advertisement, Packaging and promotion plans for this new retail chain. The detailed study will work as the starting plan for the launch of intersection in UAE and it will then be made to change gradually with sale increase from the expectation to the aspired. It will change with course of time depending on the success and failure of the program. We are going to study about the marketing tactics in this section.Marketing ObjectiveTarget MarketCitizens of United Arab Emirates will be the target market for Big-Bazaar. Presence of lot of expatriates will be boon for the company as they have the ready visibility for this brand. For Company the basic target group will be the shoppers who are instinctive to spend their money economically and those who the judge of their money. Therefore our target customer will be the pack who are married and who belong to the middle class family. Company will also be cash ining on the presence of Indians thither. (Retail Market in Middle East)Expected Sales Sales objectives define the amount of gross revenue company want to have in very first stratum. Since company is totally new in the United Arab Emirates, we are planning to have a sale of around 234 million US $ or 734 Million of AED in the very first social class with its operation in nearly 12 stores in 12 different areas.Profit ExpectationProfit Expectation of Big-Bazaar will also be fighting on lower side tho. With the sale of total of 734 AED of grocery, Big Bazaar will be gaining boilersuit profit of 23 million AED. This shows that we are expecting Big-Bazaar to be gainful in very first year only and we are expecting it to earn a big name through its operational efficiency. progress meld adObje ctiveMain objective of advertisement is to make customers aware of the brand and make them debate our brand figure of speech in the same way in which we want to communicate. Therefore here operational efficiency doesnt matter until and unless you really tell the customer that we are excellent in managing operation in the same way as Honda stresses the grapheme part of its product in its advertisements. Therefore here the objective will be to communicate shopper that it is the cheapest shopping point. Company will have to communicate the low price wit high quality of its brand. Company assnot play with brand name by tarnishing g its image with its cheapness. Company should communicate the proud of giving genuine product at such a low price.As constantly we need to first segment the population of United Arab Emirates in categories. Since here in United Arab Emirates per capita income is more(prenominal)(prenominal) more than than India, therefore the cheap price will not be o nly factor that will attract consumers towards their product. Big-Bazaar should be showing the good shopping environment over and preceding(prenominal) the capability to sell it so cheap. posterior on segmenting population we need to target the middle income segment population. After setting the target company needs to set its positioning to provide cheap and good quality products. (Westwood, 2006)Media Mix We are planning to have the media mix which can make big-Bazaar to approach every single people in United Arab Emirates. This should also make them aware of this new retail shop approach in their nearby market. Since it is future groups first company that will be launching its retail chain in UAE, it has to pee care of the brand image of the Bi-Bazaar from getting tarnished by competitors. Since the retail chain will be starting on such a large scale in UAE it needs to do more and more advertisements in UAE starting from its launch only. Hence we will need following media-m ix Billboards Banners TV program Kiosks MagazinesThe method company can plan to make this promotion successful is to have it in various phases. Actually this is one of the most important criteria which company usually follows while entering into a new market.MessageBig-Bazaar has the image of providing good quality of items at the rock bottom price. Its image is like everything under one roof. Therefore it has to communicate this image to the consumer showing happy family buying their groceries from a level where every family member got something of his/her choice. Company should communicate this image by stressing its image on tag decline which it is going to use while conveying its brand image. Message can be similar to Cheaper than this, doesnt equal constituteadvertizingNewspaper ad $ 20,000.00 AED 73,440.00 Billboard $ 5,000.00 AED 18,360.00 TV Advertisement $ 30,000.00 AED 110,160.00 Kiosk Advertisement $ 10,000.00 AED 36,720.00 Promotion $ 30,000.00 AED 110,160.00 Ba nners $ 5,000.00 AED 18,360.00 Advertising put down $ 100,000.00 AED 367,200.00 Sales Promotion ObjectiveThe main objective of sales promotion is attracting more consumers in least possible time with a communication that you are passing playing more value per unit of money to your consumer. In the very first year, company should try making products as much cheaper as it can by bringing small packs or by giving more and more offs on its grocery. Free goodies can be one of the methods to attract more and more consumers towards it. PremiumsPremium is slackly used in a way in to associate the product with something of real use to customer. Big-Bazaar can use this age old proficiency by associating some spare gifts on spending more than AED 1000 in the in any of the Big-Bazaar retail chain.Coupon Coupons will be some free coupon either of service or of entertainment. This really helps in shoppers incoming into the mall. Big-Bazaar can utilize this technique by attaching coupons wit h the bill in case the shopper buys more than a threshold limit of goods. Big-Bazaar can offer free movie coupons or next time buyings discount coupon. (Details of Big Bazaars Offer in lively Seasons Big Bazaar Maha Bachat Shopping Discount Independence Day Offer) saluteBig-Bazaar always cash on low cost model therefore promotion will play a major role here. Company will have to cash in the opportunity of providing more and more goods with the promotional scheme as its very first year and this years performance will work as a make or break for the company. Therefore we have allotted $30000 for the promotional scheme only. AdvertisementNewspaper Advertisement $ 20,000.00 AED 73,440.00 Billboard $ 5,000.00 AED 18,360.00 TV Advertisement $ 30,000.00 AED 110,160.00 Kiosk Advertisement $ 10,000.00 AED 36,720.00 Promotion $ 30,000.00 AED 110,160.00 Banners $ 5,000.00 AED 18,360.00 Advertising spending $ 100,000.00 AED 367,200.00 Personal SellingBig-Bazaar is a retail chain. It w ill not need to sell its product in person but it should have the facility of home-Delivery so that the groceries of higher cost should be delivered safely to consumers home without any damage to create superior experience for consumers. Other Promotional MethodNo other promotional method should be thrown by the company as it is its very first year of operation. It should take traditional method of operation.Distribution from Origin to DestinationMode of DistributionBig-Bazaar will be having products which are of all kinds. It should have its store too in order have extra storage facilities. This warehouse should be optimally located and should be in vicinity to all the 12 stores which are there in the United Arab Emirates. In the very first year of operation company can brook to have two storehouses. There will be staffs working in them and company will be needing one big-bazaar van to commute from store house to store in order to have low empty shelf space time. (Luther, 2011)P ackagingMarking and Labeling RegulationsUntil and unless Big-Bazaar is not launching its own brand product like it sells KOREO in India, it doesnt need to worry about labeling as its general business to sell other brands product at a cheaper price.ContainerizationCompany doesnt need to care for this packaging issue apart from lay RFID on all the products for easy tracking of their availability and presence. The reason is that it will be different brands who are selling under Big-Bazaars brand name that will have to take care of containerization problem. CostsSince packaging is an issue for the brands which are going to sell under the tag of Big-Bazaar here therefore packaging will not be problem for Big-Bazaar. Price DeterminationTransportation CostTransportation cost is always there whenever one opens a retail chain. Here the major transportation cost will be there in the movement of goods from warehouse to main retail shops. The transportation should be there in Big-Bazaars own dedicated vehicle. All the transportation cost is there included in Distribution Cost only. The $10000 amount is allotted to it.Handling spendingsHandling expense for product will be borne by company and is included in miscellaneous expense of $4000. (Dubais rental information Commercial To Let In Dubai, Properties In Dubai )Whole and Retail Mark Up and DiscountsProduct Cost per centum of sum up depreciateSaleable Grocery Cost $ 200,000,000.00 AED 734,400,000.00 Big Bazaars Average margin on Cost10% $ 20,000,000.00 AED 73,440,000.00 Total revenue $ 220,000,000.00 AED 807,840,000.00 Selling expense $ 750,000.00 AED 2,754,000.00 72.3%Advertising Expense $ 100,000.00 AED 367,200.00 9.6%Distribution Expense $ 183,000.00 AED 671,976.00 17.6%Misc Expense $ 4,000.00 AED 14,688.00 0.4%Total Expense $ 1,037,000.00 AED 3,807,864.00 Pro-formal financial Statement and BudgetIntroductionThis section will check the financial associated with the marketing and operation plan of opening o f Big-Bazaar Retail.Marketing BudgetAdvertisement/Promotion ExpenseAdvertisementNewspaper Advertisement $ 20,000.00 AED 73,440.00 Billboard $ 5,000.00 AED 18,360.00 TV Advertisement $ 30,000.00 AED 110,160.00 Kiosk Advertisement $ 10,000.00 AED 36,720.00 Promotion $ 30,000.00 AED 110,160.00 Banners $ 5,000.00 AED 18,360.00 Advertising Expense $ 100,000.00 AED 367,200.00 Distribution ExpenseDistribution Cost(per annum)Store Payroll $ 20,000.00 AED 73,440.00 Store Management $ 20,000.00 AED 73,440.00 Rent( 2 Warehouse 1000 sq.ft.) $ 85,000.00 AED 312,120.00 Transportation $ 10,000.00 Utilities $ 20,000.00 AED 73,440.00 wear and tear $ 5,000.00 AED 18,360.00 Repair $ 5,000.00 AED 18,360.00 Maintenance $ 18,000.00 AED 66,096.00 Total Distribution Expense $ 183,000.00 AED 671,976.00 Product CostProduct CostPercentage of Total ExpenseSaleable Grocery Cost $ 200,000,000.00 AED 734,400,000.00 Big Bazaars Average margin on Cost10% $ 20,000,000.00 AED 73,440,000.00 Total rev enue $ 220,000,000.00 AED 807,840,000.00 Selling Expense $ 750,000.00 AED 2,754,000.00 72.3%Advertising Expense $ 100,000.00 AED 367,200.00 9.6%Distribution Expense $ 183,000.00 AED 671,976.00 17.6%Misc Expense $ 4,000.00 AED 14,688.00 0.4%Total Expense $ 1,037,000.00 AED 3,807,864.00 Other CostMisc Expense$ 4,000.00Pro forma annual profit and loss statement (Profit year)Profit And Loss StatementAEDIncomeRevenue $ 220,000,000.00 AED 807,840,000 ExpenseCost of Goods Sold 200,000,000.00 AED 734,400,000 Selling Expense $ 750,000.00 AED 2,754,000 Advertising Expense $ 100,000.00 AED 367,200 Distribution Expense $ 183,000.00 AED 671,976 Misc Expense $ 4,000.00 AED 14,688 Total Expense 201,037,000.00 AED 738,207,864 EBIT $ 18,963,000.00 AED 69,632,136 Interest $ 10,571,890.00 AED 38,819,980 EBT $ 8,391,110.00 AED 30,812,156 Tax 20% $ 1,678,222.00 AED 6,162,431 wage Income $ 6,712,888.00 AED 24,649,725 Resource Requirements IntroductionIn this section we will discuss ab out the Resource requirement. Here we will analyze about how company is planning to expand and what all it will require while expanding in this way. We are going step by step. First we are going to analyze the finances, Personnel and later we will discuss energy or Scale in which Big-Bazaar should be operating.FinancesCompanies usually get their finances from two tools Debt or uprightness. Debt is the stiff amount taken by company at fixed interest rates. This amount has its maturity associated with and it and after a certain interval of time company has to return. Equity is the money which company usually plans to have through dilution of its ownership. We taking all factors in account thinking about having a PE firm getting associated in financing just by having stake in our firms ownership. We suggests that company should have a debt to Equity ratio of 65 in long term and therefore company should invest 45% through its equity and should ask for remaining 55 % as debt from the ir local banks.PersonnelAny firm whenever it starts its business usually needs Personnel to make the ideas take shape. Even the Big-Bazaar will need effect for its operational requirements. Big-Bazaar will majorly look for following HR personnel for Customer Care Department Sales Personnel Labors Managers Marketing Personnel Accounting Personnel effect Personnel Distributor personnelDepending on the scale which we are launching, Companys estimate of personnel for its first year of operation will be as belowMarketing60Sales600 Accounting18Human Resource12Information Technology5Operations (including distribution and packaging)1200Scale take capacity should be planned as per companys aim of expanding in future. As per seeing Nestls crook of expansion plan in other countries, we can assume following as companys capacity requirement in future.Year I12 ShopsYear II15 ShopsYear III18 shopsYear IV22 ShopsYear V25 ShopsNestle should have production capacity accordingly.ConclusionAs we can see from the analysis, Big-Bazaar operation in United Arab Emirates will be profitable only. In the very first year of its operation, The Company can aim to gain a profit of AED 24.6 Million. Companys big brand name and operational expertise can work wonders for the company for its UAE operation. Therefore the verdict is that company should go ahead with its Emirates plan as it seems profitable from the analysis we have made public treasury now.