PESTLE analysis of retailing in India big bazaar

1. BY
TEAM 3

2. PESTLE Analysis
PESTLE is a mnemonic which in its expanded form denotes
P for Political,
E for Economic,
S for Social,
T for Technological,
L for Legal and
E for Environmental.
PESTLE is a decision making tool that can be used to assess the
impacts of the external factors of the Business.

3. Why PESTLE Analysis
●
Looks how the external environment influences the operations
of the business which helps to identify potential risks
●
Helps in giving solutions to problems ,develops marketing
strategies
●
Helps to get ahead of competition
●
PESTLE is also used to evaluate risks associated to state and
countries if your interested in expanding the business

4. PESTLE Analysis of FMCG Retailing Industry
● Overview of FMCG Retailing in India
●
Fast Moving Consumer Goods (FMCG) can be defined as packed goods that
are consumed or sold at regular and small intervals.
●
The organized FMCG Retailing in India is a new concept and is fast catching up
in urban and semi-urban India.
●
The organized retail markets in India cater FMCG products like
●
Soaps and detergents
●
Cleaning and disinfecting agents
●
Cosmetics
●
Non-durables
●
Pharmaceutical

5. ●
Future Retail is the flagship company of Future Group, India’s retail
pioneer catering to the entire Indian consumption space. Through
multiple retail formats,
●
Hypermarket & Supermarket – Exposing Indians to an all new
shopping experience
●
The hypermarket and supermarket business is led by Big Bazaar,
fbb, Food Bazaar Easyday, Foodhall and Hyper city.
●
The company operates more than 900 stores in over 290 cities
across the country

7. Impact of Political influences in Retail FMCG
industry
➢
Political stability
➢
Taxation policy
➢
Government intervenes
➢
Subsidies
➢
Trading policies
➢
Labour law
➢
Policy framework
➢
Infrastructure Issues

8. ECONOMIC FACTORS
➔
Economic Factors Include Economic Growth, Interest Rate,
Exchange Rates,Inflation Rates.
➔
Very Important In The Context Of Business And Trade
➔
Indian Economy Has Rebounded And Is Growing
➔
Spending More On Shopping Even In The Time Of
Demonetization
➔
Sales In 2015 Are As $20.08 Trillion and Expected to Rise $28
Trillion in 2020.

9. SOCIAL FACTORS AFFECTING RETAIL INDUSTRY
➢ Retailing based on age range
➢ Retailing based on family size
➢ Retailing based on income
➢ Retailing based on buying situations.

10. How Technology Is Redefining Indian Retail
• Technological factors are now all the more important whether in
terms of supply chain, customer service or sales.
• If e-retail has enjoyed exponential growth then it is because of the
additional convenience provided by technology
• Future group mobile wallet is initiative taken.
• A number of new technologies like AI and cognitive intelligence are
going to change the retail landscape in the coming years
• Even cloud computing and Distributed intelligence are going to have
a deep impact on the retail sector.

11. Legal Factors
●
Retail sector uses Laws like consumer Law ,Labor law ,health and safety
law
●
Future Retail gets RBI approval to increase RPFI to 49%
RBI has increased the limits for investment in equity share capital of Future
Retail by registered foreign portfolio investors including FIIs up to 49% of the
paid-up capital of the company
●
legal tussle in Future Group and Future Media.

12. Environmental factors
●
Big Bazaar strives to reduce environmental impact and optimize
energy consumption
●
Reducing the environmental impact of store construction and
operations
●
Improving energy efficiency for important environmental
benefits and reducing operating costs
●
Strengthening environmental considerations in the design of
green products and packaging; developing green product lines
that respect environmental concerns
●
Reinforcing environmental considerations in logistics.

13. Thank you

14. Steps to retain customers in digital age
Communicate Authentic value proposition
across all channels
Customise product portfolio and promotions
Enhance end to end shopping
Expand Ecosystem partnerships
Increase two way engagements with
customers