http://www.itbhuglobal.

org/chronicle/archives/2006/09/sanjeev_agrawal_president_m
ark.php
An interview published in exchange4media: (Forwarded by Manas Nanda, Civil
2006)
We are constantly on the lookout for finding new ways and
means to improve the current state of affairs. Thus, innovation is
a very important aspect of our working strategy. The other very
important philosophy is that of Indianness. All our concepts and
formats as well as the way we go about things are very Indian.
The way Big Bazaar is designed and the way the whole concept
has developed reflects a sense of Indianness. Sanjeev Agrawal,
President Marketing, Pantaloon Retail India Ltd .
Sanjeev Agrawal, Marketing Head, Pantaloon Retail (India) Ltd, is responsible for the
retailers marketing and brand building exercise at the corporate and store retailing
level. He is also closely involved in all new business development activities and
speciality stores like Food Bazaar, Gold Bazaar, etc.
An engineer from IIT (BHU) and a management graduate from IIM, Lucknow,
Agrawal began his corporate journey with HLL as management trainee straight
out of the campus. Over the years, he has worked with some of the most reputed
companies in India Godrej Soaps, P&G, Modi Revlon, and Balsara Home
Products.
In conversation with Saurabh Niranjan Turakhia, Agrawal discusses the evolution
and success of Big Bazaar and gives his point of view on how modern retail stores can
become future proof.
Q. What are the major factors that have led to the success of the Big Bazaar
brand?
A. I think what has worked for us is that we have been able to connect with the
customers in the right manner. We filled a need gap which was there in the market.
Apart from that, our competence in providing products at lowest prices and great
quality in an ambience much better than what the customers were used to, has also
contributed to our success.
Q. Please share the success story of Big Bazaar.
A. It all started in 2001, when we opened the first Big Bazaar store in Kolkata,

followed by the second store in Hyderabad. At that time, these were the first stores
based on this format, and we only had apparel and general merchandise in our stores.
Business picked up pace, and in July 2002, at the time of adding the fourth Big Bazaar
outlet at Lower Parel in Mumbai, we introduced the first Food Bazaar, too, which
managed to get tremendous response from day one itself. Weve been getting a very
high footfall for every new store that weve opened. Today, we have reached a stage
where we have 25 Big Bazaar and 38. Food Bazaar outlets all over the country.
Having surpassed the number of Big Bazaar outlets, Food Bazaar also has standalone
formats. There are four such formats in Mumbai, and one each in Ghaziabad (Uttar
Pradesh), Kolkata and Bangalore.
Q. What are the key thrust areas for Big Bazaar?
A. The focus is on continuing to provide very high value for money to our
customers by providing exciting offers throughout the year such as our Exchange
offer.
Q. How do you plan to do this?
A. It will be facilitated by constantly working on our buying and supply chain
efficiencies. Having already achieved economies of scale and size, we intend to better
our gains by opening new stores regularly.
Q. What are some of Kishore Biyanis (MD, Pantaloon Retail (India)
Ltd)philosophies that are strongly believed in and followed across the
organisation?
A. One of the key philosophies of Mr Biyani that is highly followed is Rewrite
rules, retain values. In essence, it means we dont take anything as fixed. We are
constantly on the lookout for finding new ways and means to improve the current state
of affairs. Thus, innovation is a very important aspect of our working strategy. The
other very important philosophy is that of Indianness. All our concepts and formats as
well as the way we go about things are very Indian. The way Big Bazaar is designed
and the way the whole concept has developed reflects a sense of Indianness.
Q. How has the organisations structure contributed to your success?
A. Since we work in teams, and do so very strongly, it has helped us in our success.
Q. What are some of the best practices observed at Pantaloon?
A. Undoubtedly, teamwork is one of them. Apart from that, we are proud of our high

speed of reaction. Another good practice is that we ensure that we are able to interact
with and listen to our customers on a continuous basis.
Q.How have in-house brands like Golden Harvest performed?
A. The performance has been very good. The fact is that consumers have very high
confidence in Food Bazaar. Therefore, whatever is offered by Food Bazaar is taken
very positively by consumers. This is justified as the quality is comparable to other
products in a similar range, while the prices are lower too. We are able to control
prices because various middlemen involved in supply chains have been eliminated for
our model. We buy directly from manufacturers and then sell.
Q. Do you see opportunities in the packaged food sector helping Big Bazaar?
A. In fact, its the other way round. The packaged food sector can grow well with
Big Bazaar. This is because the kind of consumers that frequent Big Bazaar are upper
end consumers belonging to the affluent class, who are comfortable with innovating,
experimenting and risk taking. They tend to buy more packaged foods. Therefore, Big
Bazaar becomes the ideal platform for innovations and implementation of new ideas
in the packaged food sector.
Moreover, India offers a good market for the packaged food sector as the consumer is
changing, and if the expectations are met well, growth is bound to happen.
Q. Dont you think offering good quality products at a low price might result in
your losing out on the premium you can charge for a quality product?
A. I dont see any reason why we should charge a premium. Everyone wants to save
money, including those belonging to the upper class. Moreover, because of this, we
attract various strata of the society upper end as well as the middle class. We are a
modern format retail chain, and typically, in such a format, there is a trickle-down
effect. Initially, people from the upper end will try and value our offerings, and
eventually, the awareness and brand association will take place with the middle class,
too. Lets put it this way, we are a mass store able to excite consumers of different
economic strata.
Q. Could you divulge details on contribution from various areas?
A. Forty-five per cent of our sales come from apparel. The next big contribution is
from food products.
Q. Is it true that having strategies around the price frontal has helped Big

Bazaar in India?
A. Undoubtedly. In fact, thats the whole platform on which our offerings are based.
Thats why the tagline reads Isse sasta aur achcha kahi nahi. The recent
phenomenon seen by the Maha Savings Day offer nationally on January 26,
2006, was unprecedented in the history of Indian retail industry.
Q. What are your views on the future of malls and lifestyle products?
A. All those who will be able to connect well with consumer needs and expectations
will do well.
Q. What are the factors that players should be careful about in order to succeed?
A. There are different need gaps in the market. Each player has to sort out which need
will be addressed by his offering. Everyone need not have the same strategy. So,
depending on the business strategy and model, there would be relevant factors to be
taken care of.
Q. What is the ideal target audience for Big Bazaar?
A. It would be SEC A and B1 primarily.
Q. Does this kind of format for stores work well in the interiors?
A. The store we opened in Sangli, which is a city with a population of six lakh got a
very good response from consumers. On an average, there are 40,000 people visiting
the outlet every week. Our success is not limited to metros or larger towns. Our store
in Vizag and the recently opened stores in Indore and Lucknow have received
tremendous response. We have different teams working on different categories, and
we are able to drive the business strongly on account of good analysis and strong
negotiations.
Q. What role does market research play?
A. Market research plays a very crucial role as we have to be in touch with customers
and understand their needs and expectations on an ongoing basis.
Q. What is the conversion rate like?
A. The conversion rate is in the range of 40-45 per cent on one individual to one bill
basis. What needs to be understood is that people dont come in singles. Therefore,

the conversion rate is actually to the tune of 90-95 per cent.

Q. Are there any criteria observed before introducing any new category or
product?
A. We dont have a fixed criteria list. The condition is that the product should cater
to the entire buying basket. Whatever fills the requirement of the customers finds a
place. Apart from that, what needs to be taken care of is that there should be a
possibility to deliver it at value for money.
Q. What are the targets set for 2006?
A. We work at a pretty aggressive rate and as a company we are growing by around
65-70 per cent. We will continue to have such kind of growth in the future too.