However I am swayed by C K Prahalad in looking for fortune at the bottom of the pyramid. With a small modification - the bottom to be an Above Poverty Line. And any retailer in India who is successful in targeting this strata will in the long run make money. The thali caters for this segment. It signifies a wholesome, value-for-money and affordable meal, catering to a large cross-section of tastes.
The Discount Store : Thali
Big Bazaar : The Business
Big Bazaar stores generally buy their merchandise in very large quantities, thereby getting the advantage of reduced prices. Part of this benefit of reduced prices is passed on to the consumers by employing various pricing strategies. It is a full line discounter offering a wide assortment ofmerchandise including apparel, home accessories, consumer electronics, house-ware, health and beauty products and children goods. It keeps private label brands along with branded merchandise to increase variety.
So in essence, Big Bazaar looks to make money by selling large number of merchandise at low profit margins. Hence the key determinants for its profitability are accessibility, a large range of inventory and low prices. It can achieve that by a combination of a good location, efficient supply chain management and low overheads.