Big Bazaar has come up with a scheme of shopping card of 10,000/- where one will be able to buy goods worth 12,000/-
Just for academic purposes, I would like to know what all could be deduced upon reverse engineering the facts when mixed with few all agreeable market assumptions.
Like
- What would be profit margin after someone takes this scheme?
- What might be the spend per person on acquiring new customer.
- Increase in footfalls etc
- There are many such questions
Murtaza Amin
First of all they get a customer who spends money with them every month
2nd one cant spend more than 2 k a month, but the average spending is that the avg. bill at BB is of 3500 RS.
3rd They get the advance first, and have to pay later in parts, so, they get cash money for better inventory.
4th Free publicity.
Karan Pandhi
Hi Arun,
A simple math which I did while I discussed it with my parents, and being from a Gujarati family we are always calculative.
Here is the math which I did
Average in a state – 1,00,000 families go to Big Bazaar.
What happens if 50% of these loyal customers turn o take this big yearly offer
=5,00,000 X 10,000
=5,00,00,00,000 (500 crores)
this is what Big bazaar receives upfront in one shot say in 2 months of the offer.
Now what a Gujarati or a Marwari like Mr Biyani would do is give the 500 Crores on loan @2% per month, this is one point.
Second Mr Biyani could foray in to something which he wishes to.
This money is also beneficial as he knows that 5,00,000 families are going to come back to him month on month, which means on an average his footfall on a day will be = 5,00,000/30 = 16,000 (approx) .
Plus a lower middle class family who plans to save every rupee will think it as an opportunity, as he will feel for 10k he is getting the benefit of 12k saving him 2k of his annual expenses.
Its a quite a good step if you see for the common man, but as a biz man I would say its an excellent step.
I have not been a part of this scheme, and I can say I won’t be since a few product prices are quite cheaper at D-Mart as it guarantees 2% discount on your bill, which Big Bazaar doesn’t.
These are just my views, so no offence.