Consumer Behaviour
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. Casas Bahia is the largest retail chain in Brazil which sells consumers electronic, home appliances and furniture. It is headquartered at Sao Paulo citys suburb of Sao Caetano do Sul in the state of Bahia. Samuel named the store as Casas Bahia as Casas Bahia (meaning Bahia Houses) to honor his home state i.e. Bahia to his initial customers. He was trying to connect the store name with the lo-level income people who were unable to pay for different branded product. The store name also connects the customers emotionally to their home state, Bahia.
Q.2 What is the market size of Casas?
Ans.Market Size of Casas:
1) On Basis of Market Value :
In 2004, Casas Bahia sales has reached R$ 9bn and net profit of company was R$150mn.
2) On the Basis of No of Customers:
In first hand, customers are diverse in 5 Classes: namely A, B, C, D, E. Out of which only A& B represented affluent class whereas C, D& E represented lower income group.
If we look to figure out Market size of Casas on the basis of No of customers then going by the calculation i.e.
Out of 180.7 million around 84% fell under C,D& E classes thus it counts up to 151.7 million.
Q 3. What is the penetration rate of Casas?
Ans. The penetration rate for Casas as $190
Q. 4 What a statement on Business Model of Casas?
Ans. Brief before opening Casas Bahia:
Retail banks offers credit, savings, insurance and finance products
But providing that, they use to check creditworthiness of repayment of the loan
Unregistered workers, people without job or those who could not prove that they had regular income were not provided loan
Out of 180.7 million, more than 40 million did not have bank accounts
Private agencies who provide loans use to demand higher interest upto 14 % per month
So, the Business Model of Casas Bahia was on the basis of information provided by Service of Credit Protection(SCP), the credit bureau of Brazil, wherein customers submit themselves for SCP credit check, whose average monthly income should be $190, much lower than the national average of $290
Q. 5 How the credit worthiness of Casas Bahia customers has been decided in stores? (Explain with the help of Process Flow Diagram)
First