Individual Retail Visit Report
OBSERVATIONS AND ANALYSIS OF BIG
BAZAAR, KALYAN, MUMBAI.
Sanket Bhawarkar | Retail Management Strategy
AUTHOR: Sanket Bhawarkar
STUDENT ID (UBS): 1360
PROGRAMME: Masters of Business
GROUP: AICTE MBA-3 July ‘13-14’
MODULE TITLE: Retail Management Strategy
MODULE NUMBER: MBA -3 | 1360
MODULE TUITOR: Mr. Bibhas Basumatary
ASSIGNMENT TITLE: Observations and Analysis
Of a Retail Store
Table of Contents
Introduction to Retailing
Introduction to Retail Industry
Introduction to Big Bazaar
Socio Economic Importance of Big Bazaar in Kalyan, Mumbai
Identifying the Retail Type and its Product/Service Categories
Modern Technology Deployed by Big Bazaar
Recommendations and Conclusion
Introduction to Retailing
“Retailing is a distinct, diverse and dynamic sector”. “It is an activity of enormous economic
significance to most developed nations”. It generates revenue and wealth for nation,
encourages investments and brings technological advancements. Stated that “it brings
employment and creates wealth of the economy”. “It is a vibrant part of our changing society
and a major source of employment” Retailing performs activities at larger level so it requires
massive manpower to handle and manage its operations. Retailing also helps society in general
by providing goods and services in reasonable price and increasing their standards of living.
“Retailing activity can be viewed as a significant contributor to the economy in general”.
Retailing is the set of activities that markets products or services to final consumers for their
own personal or household use. It does this by organizing their availability on a relatively large
scale and supplying them to consumers on a relatively small scale.” Retailing makes products
and services available in large quantities. Retailers produce or order the products/services in
bulk so they can take advantage of economy of scale and thus they can formulate competitive
pricing strategies. Products and services are generally sold through the store or on the internet.
Introduction to Retail Industry
The first decade of modern retail in India has been characterized by a shift from traditional
kirana shops to new formats including department stores, specialty stores hypermarkets, and
supermarkets and across a range of categories. Modern retail formats have mushroomed in
metros and mini-metros. In the last few years, modern retail has also established its presence
in the small cities, exposing residents to shopping options like never before.
Some of these stores are branded stores(exclusive showrooms either owned or franchised out
by a manufacturer) , specialty stores(greater choice to consumer, comparison between brands
is possible) , department stores/supermarkets (one stop shop catering to varied consumer
needs) , hyper-mart (low prices , vast choice available including services such as cafeterias.) ,
shopping malls (variety of shops available to each other ).
Introduction to Big Bazaar
Big Bazaar is a chain of shopping malls in India currently with 31 outlets, owned by the
Pantaloon Group. The idea was pioneered by entrepreneur Kishore Biyani, the head of
Pantaloon Retail India Ltd. The idea from the very beginning was to make Big Bazaar very
comfortable for the Indian customer. That was Kishoreji’s strength as a retailer. He had a lot
of confidence in what he was doing, even though it defied conventional logic.
Big bazaar is not just another hypermarket. It caters to every need of your family. Where Big
Bazaar scores over other stores is its value for money proposition for the Indian customers. At
Big Bazaar, you will definitely get the best products at the best prices - that’s what they
guarantee. With the ever increasing array of private labels, it has opened the doors into the
world of fashion and general merchandise including home furnishings, utensils, crockery,
cutlery, sports goods and much more at prices that will surprise you. And this is just the
beginning. Big Bazaar plans to add much more to complete their customers shopping
If one looks at Indian bazaars, mandis, melas, they are environments created by traders to give
shoppers a sense of moment, of event, of place. They provide an inclusive environment where
men and women from all castes, creeds and classes can come and shop at the same place. The
founders of Big Bazaar were from the beginning very clear that they had to reflect the look
and feel of Indian bazaars at their modern outlets, so that no customer would feel intimidated
with the surroundings.
In India most of us are not prepared for the consumerism that is setting in this country. We
underestimate how many people are going to fly and that s why our airports get crowded. We
underestimate how many people will speak on the phone for how many billions of minutes
and therefore our cell phone networks are always congested. But the minds responsible for the
huge success of Big Bazaar have captured and understood the force of consumerism that is
Big Bazaar’s all over India attract a few thousand customers on any regular day, and a lot more
if they are offering something extra on each buy, which they normally are! And the sales force
at Big Bazaar along with the executives is prepared for them.
Socio-Economic Importance of Big Bazaar in Kalyan,
With 11 stores in the city of Mumbai and still growing at a fast pace Big Bazaar is setting a
benchmark for all the retailers in the consumer food products, electronics and durables
industry. I have chosen Big Bazaar store located in Kalyan as it is closer to my college.
To start off with, the Big Bazaar in Kalyan is a store which is a part of Metro Junction Mall,
Kalyan East. They have another retailer Shoppers Stop in the same mall and has not quite
pressure from shoppers stop as they do not deals with food products. This type of store have
quite a few advantages which works in the favour of Big Bazaar, Kalyan.
No competition in close proximity. (Food products)
Relatively low rental costs.
High flexibility in terms of timings and larger space may be obtained.
Isolation in Food Industry benefits Big Bazaar as they do not have any other retailers in
the same mall.
Better road and traffic visibility is possible.
Adaptation of facilities according to individual specification.
Easy parking can be arranged as they have huge space.
Reduction in costs are possible, leading to lower prices.
But, every pro has a conn and so is in this case. The disadvantages that Big Bazaar face being
a freestanding store are:
It is situated at a long distance from the residential localities.
Continuous and consistent traffic will not flow long distances to visit a specific store.
They have a limited trade area.
It also requires large and extensive premises.
Cost such as outside lighting, security, ground maintenance, trash collection are to be
borne by Big Bazaar.
There is a lack of personal attention.
It requires huge financial resources.
Big Bazaar, kalyan boasts of having most of the food, apparels, Electronics, Home decor,
utensils, footwear, stationery, etc brands that are not available in that particular area. Though
there are competitors like Shoppers Stop and De-Mart variety brands like DJ N G and their
own brand products are only available in Big bazaar. This calls for youth traffic in the store.
With the youth population in Mumbai being 7.6% out of 18% the store is bound to keep brands
that are liked and wanted by the young generation.
Growth in the Indian Retail Sector:
The retail sector in India has shown a healthy growth and is fast emerging as one of the largest
sectors in the economy. The sector has grown from a level of US $ 201 Billion to a market
size of US $ 425 Billion in 2010.
The Industry has been growing at a compound annual rate of 6.4% since 1998.
1998 2000 2002 2004 2006 2008 2010
Source EIU Euro Monitor
CAGR : 6.4%
Pharma Clothing Footwear Watch & Jewellery Books & Gifts
Health & Beauty Food & Grocery Home Entertainment Durable
Retail Penetration in 2011:
Organised retail in India is still in its nascent stage and hence offers immense potential. India
currently has a small 6% penetration in organised retail, while a country like the US has a high
85% penetration. Given that there is a double digit economic growth projection for India in
the following decade, the future has immense potential for the growth of organised retail in
The chart below shows retail penetration across some countries.
(Source: ( E&Y Report, Aranca Research)http://retailmantras.blogspot.in/2012/01/retail-penetration-in
US Taiwan Malaysia Thailand Indonesia China India
Unorganised Retail Organised Retail
Better understanding of customers helping the company to serve them better.
Vast range of products under one roof helping in attracting customer and their family
to shop together and enjoy the experience.
Benefit of early entry into the retail industry.
Diversified business operating all over India in various retail formats.
High cost of operation due to large fixed costs.
Very thin margin.
High attrition rate of employee.
Lot of potential in the rural market.
Can enter into production of various products due to its in depth understanding of
customer’s taste and preferences.
Can expand the business in smaller cities as there is a lot of opportunity.
High Business risk involved.
Lot of competitors coming up to tap the market potential.
Margin of business reducing all the time.
PORTER’S 5 FORCES MODEL
Rivalry among the competitor:
Reliance retail, Aditya Birla Group, Reliance Fresh, etc
Threat of Entrants:
FDI policy not favourable for international players
Domestic conglomerates looking to start retail chains
International players looking to stay India
Bargaining power of Supplier:
The Bargaining power of suppliers varies depending upon the target segment
The unorganised sector has a dominant position
There are few players who have a slight edge over others on account of being
established players and enjoying brand distinction
Bargaining power of Buyers:
Consumers are price sensitive
Availability of more choice
Threat of Substitutes:
Identifying the Retail Type and its Product/Service category
Big Bazaar is a chain of hypermarkets in India, with more than 100 stores in operations.
It is a subsidiary of Pantaloons Retail India Ltd, Future Group, offers a wide range of
products including clothing, footwear, electronic appliances, groceries and kitchen
utensils. You can also buy branded stuff from Reebok, Nike and Puma here. It caters to
every need of your family. Where Big Bazaar scores over other stores is its value for
money proposition for the Indian customers.
The stores occupy an area which ranges from anywhere between 80000 to 220000sq. ft.
and offer a variety of food products like clothes, jewellery, hardware, sports equipment,
books, CDs, DVDs, TVs, electrical equipment and computers etc.
Hypermarkets are today synonymous with one stop shopping. The cheapest prices will
normally be found in these stores. Across thre world, hypermarkets are usually part of
a retail park, along with other shops, cafeterias and restaurants. A key element of
differentiation between the hypermarket and the other retail formats is that they typically
have destination locations. The hypermarkets are designed to attract customers from a
significantly large area with their low price offers, unique range and offers. It is the
largest form of organized retailing today. It is an ideal shopping experience with an
amalgamation of product, service and entertainment all under of a common roof.
The company has been able to leverage on its multi-formats-multi-brand stores, secure
prime locations at the best possible prices and command a strong bargaining power with
suppliers, which provide it an edge over its competitors. Customers come in Big Bazaar
for purchasing, entertainment and pacing here and there.
It gives many facility to the customers like; Helpline, Baggage Counter, Parking,
Exchange etc. big Bazaar trying to provide customer with 3V’s
Big Bazaar has different categories; such as
• Food Bazaar
• General Merchandise: - At Big Bazaar, you will definitely get the best products at the best
prices- that’s what it guarantees. With the ever increasing array of private labels, it has opened
the doors into the world of fashion and general merchandise including home garnishing,
utensils, crockery, cutlery, sports goods and much more at prices that surprise us. Here we talk
about the department stores, because Big Bazaar based on the departments.
Carry broad variety and deep assortment organized into separate department for displaying
Major departments includes:-
• Home décor
• Footwear etc.
Chains are very diverse and appeal to different markets. They are unique in terms of the
shopping experience they offer, the services they provide and the atmosphere of the store.
They are promotion- oriented. They increase competition with discount and specialty stores
Lines of Business of the Above Store
Leisure and Entertainment
Wellness and Beauty
Books and Music
Marketing Mix of Big Bazaar
Big Bazaar offers a wide range of products which range from apparels, food, farm products,
furniture, child care, toys, etc of various brands like Levis, Allen Solly, Pepsi, Coca- Cola,
HUL, ITC, P&G, LG, Samsung, Nokia, HP etc.
Big Bazaar also promotes a number of in house brands like:
DJ & C
Koryo and 44 other brands
The pricing objective at Big Bazaar is to get “Maximum Market Share”. Pricing at Big Bazaar
is based on the following techniques:
Value Pricing (EDLP – Every Day Low pricing): Big Bazaar promises consumers the
lowest available price without coupon clipping, waiting for discount promotions, or
Promotional Pricing: Big Bazaar offers financing at low interest rate. The concept of
psychological discounting (Rs. 99, Rs. 49, etc.) is also used to attract customers. Big
Bazaar also caters on Special Event Pricing (Close to Diwali, Gudi Padva, and Durga
Differentiated Pricing: Differentiated pricing i.e. difference in rate based on peak and
non-peak hours or days of shopping is also a pricing technique used in Indian retail,
which is aggressively used by Big Bazaar.
e.g. Wednesday Bazaar.
Bundling: It refers to selling combo-packs and offering discount to customers. The combo-
packs add value to customer and lead to increased sales. Big Bazaar lays a lot of importance
e.g. 3 Good Day family packs at Rs 60(Price of 1 pack = Rs 22)
5kg oil + 5kg rice + 5kg sugar for Rs 599.
The Big Bazaar stores are operational across three formats — hypermarkets spread over
40,000-45,000 sq ft, the Express format over 15,000-20,000 sq ft and the Super Centers set up
over 1 lakh sq ft. Currently Big Bazaar operates in over 34 cities and towns across India with
116 stores. Apart from the Metros these stores are also doing well in the tier II cities. These
stores are normally located in high traffic areas. Big Bazaar aims at starting stores in
developing areas to take an early advantage before the real estate value booms. Mr. Biyani is
planning to invest around Rs 350 crore over the next one year expansion of Big Bazaar. In
order to gain a competitive advantage Big Bazaar has also launched a website
www.futurebazaar.com, which helps customers to orders products online which will be
delivered to their doorstep. This helps in saving a lot of time of its customers.
The various promotion schemes used at Big Bazaar include:
“Saal ke sabse saste 3 din”
Hafte ka sabse sasta din “Wednesday bazaar”
Exchange Offers “Junk swap offer”
Future card(3% discount)
Advertisement (print ad, TV ad, radio)
Brand endorsement by M.S Dhoni and Asin
Big Bazaar has come up with 3 catchy lines written on hoardings taking on biggies like
Shoppers stop and Lifestyle. They are:
“Keep West- aSide. Make a smart choice!”
“Shoppers! Stop. Make a smart choice!”
“Change your Lifestyle. Make a smart choice!”
Well trained staff at stores to help people with their purchases
Employ close to 10,000 people and employ around 500 more per month.
Well-dressed staff improves the overall appearance of store.
Use scenario planning as a tool for quick decision making multiple counters for
payment, staff at store to keep baggage and security guards at every gate, makes for a
Big Bazaar places a lot of importance on the process right from the purchase to the delivery
of goods. When customers enter the stores they can add the products they which to purchase
in their trolley from the racks. There are multiple counters where bill can be generated for
purchases made. Big Bazaar also provides delivery of products over purchases of Rs. 1000.
Products in Big Bazaar are properly stacked in appropriate racks. There are different
departments in the store which display similar kind of products. Throughout the store there
are boards/written displays put up which help in identifying the location of a product.
Moreover boards are put up above the products which give information about the products,
its price and offers. Big Bazaar stores are normally ‘U shaped’ and well planned &
Marketing Mix Concept
Modern Technology Deployed by Big Bazaar
The evolution of technology within the retail and e-commerce space is shaping how
consumers behave and interact with brands and savvy, smart retailers know that
understanding shoppers’ behaviour is key for success. These retailers realize they can
utilize technology to capitalise on consumer needs and customised offerings to help
significantly increase their bottom lines.
Big Bazaar as a retailer follows a lot of modern trends to increase customer satisfaction and
save time on both ends (retailer and customer). The modern technologies deployed by Big
Bazaar are given below:
Electronic Point-of-Sale System: An EPOS system is one in which a universal product
code (black and white stripes or barcode) is read by a laser scanner connected to a
computer. On scanning a product, the computer records the sold items and displays the
price of the products to the customer. Eventually, an itemised bill is generated and given
to the customer as the receipt.
Electronic Funds Transfer at Point-of-Sale: An EFTPOS system is one which
facilitates cashless payments by the customers. An EFTPOS terminal is connected to
the retail store on one end and the other end to multiple banks and credit card companies.
This system enables a customer to use credit and debit cards for their purchases. It is
convenient for the customer as it is quicker and less open to fraud. The retailer is happy
as he receives his payment in his account immediately.
Electronic Data Interchange: EDI is the electronic exchange of data that takes place
between the retailer’s computer and that of his supplier. The exchange consists of
orders, delivery notices, invoices, returns and sales data. Its saves the lead time of
deliveries and large savings can be made by the consequent reduction in inventory
required. Given below is the process a business would take have to go through with and
Quick-Response Replenishment Systems: When EPOS systems are combined with
EDI, retailers are in effect adopting just-in-time replenishment or quick-response (QR)
replenishment methods. Ordering merchandise is not based on historical but current
sales. An advantage that that the QR Replenishment Systems have is the reduction in
stock outs and the amount of inventory carried. This reduces the cost to the retailer and
improves the service to the customer. The image below shows a simplified quick-
response replenishment system.
At Future Group Big Bazaar, we believe in building long-lasting relationships with customers.
We encourage repeat customer visits through our unique offers and special sale days.
Future Group has taken the whole concept of customer loyalty to the next level by joining
hands with PAYBACK. PAYBACK is India’s largest and one of Europe’s most successful
multi-partner loyalty programs. With PAYBACK, customers can shop, save and get rewarded.
This program enables consumers to collect millions of points across online and offline partners
– with just a single card. Customers can accumulate points across Future Group formats,
thereby making “shopping rewarding”.
Our formats Big Bazaar, Food Bazaar, Pantaloons, Central, Home Town, eZone, Brand
Factory and Future Bazaar are a part of the PAYBACK Loyalty program.
Main objective of the store layout is to maximize the interface between customers and
merchandise” It provides easy accessibility to the customers to view the offerings of the
store. Layout of the store has been strategically designed in order to make effective use of
merchandise and passage to draw customers’ attention on store’s offerings
Big Bazaar has a wide range of merchandise they have both branded and unbranded products
Home lien items: Like bed sheets, pillow covers, carpets to kitchen utility items like
steel utensils and crockery and other minor utility items required in a house
Electronic items: like refrigerator, T.V, vacuum cleaner, music system, vacuum
cleaner, washing machine. etc
Mobile Zone: A wide range of mobile phones and accessories is available at lowest
Furniture: All kinds of furniture is available that one may require to decorate their
Star Sitara: In this section all kinds of cosmetic items are made available
Opticians: In this section all brands and types fashion glasses are available
Men Ladies and kids wear: This section includes fashion and casual wear for men
ladies and kids both branded and unbranded.
Foot wear: In this section footwear for men women and kids is made available.
Music: A wide collection of CDs DVDs is made available
Toys: All kinds of toys for children is available
Stationary: all kind of office stationery and stationery for school going kids is
Big bazaar is located has 31 outlets in India , big bazaar locates its outlet near the
commercial area and residential complex so that they can cover all their target customers
Eg : their outlet Metro Mall Junction , kalyan, Mumbai , is located near commercial areas
so that the working class people can drop in and shop house hold items after office hrs.
On the other hand their outlets in sangle is a bit different from what we would see at say,
high street Phoenix in Mumbai. For instance isn’t air conditioned: instead, there are air
coolers installed inside the store, also there are many shoppers there on days as an
weekends. Unlike office going people in big cities, people in smaller towns do not restrict
their shopping to weekends.
The choice of location of Big Bazaar in many ways captures the essence of what they were
doing- they adapt themselves to the habits tastes and preferences according to the location.
One of the distinct feature of their location is that it is easily accessible and they try to
locate their outlet in such a location where they can reach a large customer base.
In today’s competitive environment store design has now become a strategic tool for
differentiating the offerings of the store and retaining customers. Customer’s perception
regarding in-store design has changed. They see shopping as an activity which gives fun and
excitement. Customers like to shop in a changing and exciting environment. Retailers are
developing innovative strategies for store design. Store design is now become a marketing tool
for retailers. Thoughtful design of physical elements is a significant aspect for communicating
store image to customers. Retailers are giving more attention on creating favourable in store
environment for customers, this requires deep understanding of the target customers.
In retail environment now more systematic attention is been given to efficient designing of the
store which influences the buying behaviour of the customers. Visual merchandising and store
layout are considered as most significant elements of in-store design. Visual merchandising
coordinates stores marketing, positioning and communication strategy. Thoughtful in-store
display creates favourable appearance of the store for the target customer and attracts them
towards products. Effective display provides easy accessibility of product to target customers
and demonstrate the products in a way to make selection process easy for the customers.
Efficient design of the store layout contributes to profitable utilization of store space.
Efficiently designed layout can create enjoying the environment by providing convenient
shopping. Retailers adopt different patterns of store layout to encourage circulation of the
customers to all parts of the store and to provide easy accessibility of merchandising.
The ultimate objective of efficient store design is to increase sales and profit of the store.
Directly or indirectly the elements have some impact on the buying behaviour of the
customers. Visual merchandising is considered to create an interest in the customers and create
a favourable image of the store in the mind of the customers. Store layout provides
convenience to customers and makes shopping smooth. Retailers always try to create
favourable psychological impact on customers by designing element of the store in most
sophisticated way. E.g. retailers use graphics with social meanings to associate customers with
some life style.
Big Bazaar layout consists of layout of long rows of parallel fixtures, with no aisles because
aisles can be boring they restrict space and can’t be dramatized. At Big Bazaar, they create
multiple cluster or mini-bazaars within every store. It was designed as an agglomeration of
bazaars with different sections selling different categories’.
“It uses space efficiently.
It provides easy sitting of merchandise and linking of the product throughout the
It allows more customers in the store at any time.
Allows staff of the store to work easily alongside the customers without disturbing
Provide self-service atmosphere
The structure of Big bazaar at Metro Mall in Mumbai covers two floors that is basement middle
level and first floor.
The basement includes
Star and sitare
The middle level includes
The first floor includes
Men , ladies and kids wear
Visual merchandising at Big Bazaar uses “Store display for promotional purpose, but as
customers are becoming more sophisticated, Big Bazaar has found various techniques for
effective display for providing information and communicating image of the store to the
customers, helping them in taking purchase decision and creating exciting shopping
environment” Big Bazaar not only uses visual merchandising for promoting their product,
but they use it as a significant tool for creating appropriate store environment and influencing
purchase decision of customers.
They use danglers and hoardings at the entrance of the store as this may be a deciding element
in a consumer’s decision to enter a store. It uses various visual merchandising like it uses
remarkable window display for creating a shopping environment as it creates initiative
impression in the mind of customers as window display also sometimes become a deciding
factor whether to enter the store or not .
Retailers develop visual merchandising in order to relate customer’s social life with the
product, arouse their personnel interest for the product. “Retailers can use combination of
elements of in store display; such as color, texture, lighting, fixtures, graphics, and signage.”
Positive buying emotion and store design are the most significant components of retailing. Big
Bazaar should constantly work on creating favourable shopping environment. Store design is
a significant aspect in attracting and keeping the consumer excited about the shopping
experience. Attractive decoration, creative merchandising, efficient layout, appropriate
lighting, music and aromas enhance mood and emotion, which may leads to impulsive buying
behaviour. Using affective visual displays may also arouse impulsive buying emotion.
Efficiently arranged layout provides convenience and comfort to customers. These elements
can be used to create favorable in store environment and motivate shoppers to make an impulse
Our study shows that there is a strong relationship between visual merchandising and impulse
buying of the shoppers. So visual merchandising is a significant tool for every retailer.
Therefore Big Bazaar should always concentrate on efficient visual merchandising. Retailers
should display things in the store in such a way that customer get attracted and excited. This
may lead them to unplanned purchase, which will increase the sales as well as profit of the
Layout of the store is a significant aspect of in-store environment which makes shopping easy
for customers. There is a relationship between convenient store layout and product browsing.
Product browsing makes customers aware of offerings of store and various promotional
schemes. Big Bazaar should arrange layout of the store in a way to provide maximum
convenience to customers, this may create positive impact on the sales of the store.
Employees’ service is also a crucial factor for retail sector. If employees are well trained, they
can provide better service to customers and if customers would be happy with their response
and behaviour, they will maintain a relationship with the store. Behaviour of the employee can
influence the purchase decision of the customer. Big Bazaar should develop effective training
and development programs for employees so that they can continue to work on maintaining
good customer relationships.
We would like to conclude by saying that Big Bazaar has carved a niche for itself in the
retailing industry as a store that caters to customers from all classes, caters to their every need
at a reasonable price. Mr. Kishore Biyani the founder of Big Bazaar has emphasized his
personality to reflect on that of Big Bazaar which is “Indianess”.
His belief that only an Indian can understand an Indian has led to the creation of such creative
ideas from his work force that Big Bazaar has struck an emotional chord in the Indian customer
so much so that the loyalty of the customer are driven to Big Bazaar
Their Sab Se Sasta din event of 26th
Jan can now be called the maker for when democracy for
in retailing truly setting for a vast majority of urban Indians the Glitzy shopping malls and
modern retail formats where perceived to be expensive and exclusive. But on that day, many
urban Indian shed their inhibitions for the first time and visited Big Bazaar stores located in
shopping malls and thus Big Bazaar became a hit.
Pride, William M and Ferrell O.C. Marketing: Concepts and Strategies. 12th
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Kotler, Philip, and Keller Kevin Lane. Marketing Management. Pearson Education,
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A project report on retail visit of Big Bazaar, kalyan, Mumbai.