PROJECT REPORT

PANTALOONS(The Great India Place, NOIDA)

GROUP-11PGFA-1642 DEEPTI SHARMA

PGFA-1646 DIVYANSHI DAYALANI

PGFA-1651 RISHABH KUMAR

PGFA-1654 UTKARSH SINGH

PGDM (2016-18)

TABLE OF CONTENTS

Particular

Executive summary

Company description

Current market scenario

Situation analysis

Competitor analysis

PESTEL analysis

SWOT analysis

Ansoff matrix

STP analysis

Marketing mix

Product strategy Pricing strategy Distribution and communication strategy

Budget and control

Action programmes

Recommendation

conclusion

ACKNOWLEDGEMENT

We would like to extend our gratitude and sincere thanks to our respected professor Dr DEEPAK SINGH, who gave us this opportunity to learn more about the major player of the retail industry – pantaloons. This project has helped us to learn and understand the key aspects of marketing in pantaloons and retail sector, by providing the practical insights of the industry and working on some live projects.

We also extend our gratitude to our industry mentor Mr. ATTIN KUMAR, for guiding us throughout the project.

Once again,

Thank You.

EXECUTIVE SUMMARY

We got an opportunity to visit Pantaloons, The great India place, Noida located in sector 38 and to interact with Mr. ATTIN KUMAR, Industry mentor of our industrial visits. He had been really supportive and humble.

Pantaloons aims at providing services to people at value added prices. They are targeting various segments in the consumer, taking advantage of opportunities indicated by higher demand for lifestyle segment.

On our first field visit, we met Mr. ATTIN KUMAR. He gave us a broad idea about service and retail sectors are all about. Through our Desk Research we tried to have some idea beforehand for better understanding. We asked him questions about the products and services.

We tried to understand about the various marketing strategies he plans to adopt and also how will he segment, target, and position this new Service in the minds of people. We asked him about what are the various opportunities for this kind of Services in the market.

The main aim behind this project was to get experience of customers in lifestyle clothing sector in Pantaloons.

COMPANY DESCRIPTION

PANTALOONS

Retail (service) industry Headquarters in Mumbai, Maharashtra, India.

Deals in lifestyle segment.

Number of outlets 168 and still growing.

Managing Director: Pranab Barua.

Chief Executive Officer: Shital Mehta.

Founded in 1987, pantaloons earlier was known as Manz Wear, inspired from Italian brand. The manz wear brand focused on jeans and trousers. Earlier the brand was owned by FUTURE GROUP. The brand name was then changed to pantaloons retail and then again to PANTALOONS RETAIL FASHION private limited. The headquarters are located in Mumbai, Maharashtra, India. Pantaloons is now owned by Aditya Birla nuvo limited.

The Aditya Birla group has opened two lifestyle retail formats namely, pantaloons and Madhura. Pantaloons has now become a leading retailer in Indian retail industry. Pantaloons provides service to consumers in terms of apparels, accessories like footwear, sunglasses, watches, cosmetics. The area served for pantaloons covers most of urban and semi – urban areas of India. Tier –ll &tier- lll cities are also now ea major target for pantaloons. The pantaloons has expanded widely over the nation with number of exclusive and nonexclusive 168 stores, and many more to come over the years. It has also been awarded as ‘The most trusted apparel brand in India’.

VISION: We shall deliver Everything, Everywhere, Every time for Every Indian Consumer in the most Profitable Manner.

MISION: Infuse Indian Brands with Confidence and Ambition.

CURRENT MARKET SCENARIO

FEATURES:

• One Stop Shop for Customers.

• More than 200 In-house & Out-house brands.

• Quality Apparel.

• Value for Money.

• Innovative tactics to approach Customers.

MARKET SIZE:

• Market leader in the Retail Industry.

• Captures 43% of the Retail Industry.

• Organized retail sector growing at rate of 5%.

• Growing Middle Class Group.

SITUATIONAL ANALYSIS

Before we talk about anything let us see what Google has to say about Pantaloons regarding its popularity as compared to Reliance trends.

As we can see that Google has shown that pantaloons is more popular than its competitor Reliance trends. Demand is more for pantaloons products in India.

C ORE COMPETANCIES

Pantaloons seeks to use its core competencies to achieve a sustainable competitive advantage, in which competitors cannot provide the same value to consumers that Pantaloons does. Already, Pantaloons has developed core competencies in

Offering a high-quality, branded product whose image is recognizable among consumers;

Providing quality brands at very low cost.

Developing a reputation among retailers as a reliable retail outlet delivering the requested number of products on schedule. The firm intends to build on these competencies through marketing efforts that increase the number of products offered as well as distribution outlets.

By forming strong relationships with consumers, suppliers and other goods and services, Pantaloons believes it can create a sustainable competitive advantage over its rivals. No other retail company can say to its customers with as much conviction “LIVE BETTER SPEND LESS”!

COMPETITORS

Shoppers stop Wills lifestyle Globus Max

Objectives: pantaloons target to achieve 10% hike in sales during the festival season.

Interest areas in India

In overall India people are obtaining more pantaloons’ product but in southern few areas, people are buying more from reliance trends.

COMPETITOR ANALYSIS

S.NOPRIVILIGES PANTALOONS SHOPPERS STOP LIFESTYLE GLOBUS MAX

1 NAME Green card First CitizenLandmark Rewards Frends

Landmark Rewards

2 LEVELS 1 star classic moments Gold frends Gold

3 star silver edge platinum buddies platinum

5 star golden glow best frends

7star

3 CRITERIA 0-7999 100-9999 100-999 100-999 100-999

(Purchase Rs.) 8000-19999 10000-39999 1000-75000

1000-9999 >65999

as per levels 20000-39999 >40000

10000-25000

>40000

4 POINTS 2 @100 Rs 1 @ 100 Rs 2 @ 200 Rs4 @ 100 Rs 2 @ 200 Rs

(earned)3% discount(12) 2 @ 50 Rs 4 @ 200 Rs

6 @ 100 Rs 2@ 200 Rs

5% discount(20) 3 @ 34 Rs

8 @ 100 Rs

7% discount(28)

5 VALUE

(each point) 0.25 paisa 0.70 paisa 0.40 paisa

S.NO SERVICES PANTALOONS

SHOPPERS STOP LIFESTYLE GLOBUS MAX

1 ALTERATIONS YES YES YES YES YES

2 PARKING NO YES NOYES(buddies) NO

reimbursement

3 EXCHANGE

PERIOD

members 90 days 20 days 30 days 30 days 30 days

non-members 30 days 14 days 30 days 30 days 30 days

4 GIFT WRAP YES NO YES NO NO

5HOME DELIVERY YES YES YES YES NO

(within a range)

for golden glow

within a range for buddies

6OUT OF STORE YES YES YES

OFFERS

7END OF SEASON YES YES YES YES YES

SALE

PESTEL ANALYSIS

POLITICAL FACTORS:

• Implementation of GST.

• Liberalized FDI policies.

ECONOMICAL FACTORS:

• Growth of service sector in GDP.

• Infrastructural growth i.e. ‘MAKE IN INDIA’.

SOCIO-CULTURAL FACTORS:

• Growing middle class group.

• Shift in taste & preferences of consumers.

TECHNOLOGICAL FACTORS:

• Growth in e – retailing.

• Extensive usage of marketing analytics.

LEGAL FACTORS:

• Taxation policy of India.

• Excise duty of 12.5% imposed on apparels.

ENVIRONMENTAL FACTORS:

• Usage of eco-friendly shopping bags.

• Promotion through social media, rather using paper.

SWOT ANALYSIS

STRENGTHS

• Well-established brand.

• Highly qualified staff(6000+employees)

• Economic Pricing.

• Quality apparel.

WEAKNESS

• Wide span of control.

• More complexity.

• Applications of IT.

• Employee retention.

OPPORTUNITIES

• Merge with Global Brands.

• Growth in middle class group.

• Increase in disposable Income.

THREATS

• Being pioneer, extensive competition.

• New entrants.

• International exposure of competitors.

ANSOFF MATRIX

SEGMENTATION, TARGETING, POSITIONING

SEGMENTATION

Geographic segmentation: Well pantaloons is covering overall India for target market. They had over 168 stores across 73 cities. It has many stores in every state. But here we are explaining you about Delhi and Delhi NCR region.

In Delhi and Delhi NCR

• Sahara mall• Ambience mall• South extension 11• Cross river mall• Shipra mall • The great India palace mall• Ajmal khan road, Karol bagh• Model town phase 2, new Delhi• Kamla nagar, new Delhi• City center mall• World square mall, Mohan nagar• Metro mall, Dwarka new Delhi• Wave city center, Noida

Demographic segmentation:

• Income : a) Upper to lower middle income group people (Aspirers to seekers)

• Gender : a) Male b) Female

• Age : a) 0-14 years (kids) b) 14-28 (youngsters) c) 28-40 (adults)

• Occupation : a) Professional

b) Managers

c) Sales staff

d) Students

e) Homemakers

Psychographic segmentation:

• Fashion followers• Shopaholics• Trend setters

Behavioral segmentation:

• Occasions : a) Seasonal b) Holiday c) Special occasion d) Regular occasion

• Benefits : a) Quality b) Economy

TARGETING

Pantaloons is mainly targeting people as per their income. Middle income group people are enjoying more services of pantaloons.

Income (Occupation) :

• Professional: Formal wear Lower (Sales staff) T-shirts and jeans Middle (Students) College formals Upper (Manager) Corporate suit

• Income (Women : Professional and non-working) Upper: Professional Lower: Homemakers

• Income (Behavioral) Price conscious people are purchasing as per their purchasing power.

POSITIONING

Pantaloons is positioning them as a store which gives:

Value: As they are selling at economic prices and high discounts.

Choice: They have variety of products which gives right of choices to customer

Quality and latest trend: They are providing quality and trendy products at right time as per current market demand.

It is define itself by its tagline:

‘In love with life,In love with fashion’

THE MARKETING MIX

The following discussion outlines some of the details of the proposed marketing mix for products:

PRODUCT STRATEGY:

Brands: In-house brands

Out-house brands

Product description:

Apparel: Ethnic wear and western wear

Men : Ethnic wear (Indus Route)

Western wear (Alto Moda)

Women: Ethnic wear (Rangmanch)

Western wear (Honey)

Kids : Ethnic wear (Aakriti)

Western wear (Poppers)

Accessories:

Junk Jewelry : butterfly 18 Sunglasses : Polaroid Watches : Fastrack Cosmetics : Lakme, Revlon Footwear : Honey, Catwalk Handbags : Caprese, Lavie

LEVELS OF PRODUCT

Actual product

1. Brand name : Pantaloons2. Features : Economic pricing

Quality apparel One stop shop.

3. Design: well updated with latest fashion trends Innumerous choices and designs.

Augmented product

1. After sale service: Happiness Index Credit shopping points

2. Warranty : exchange period 90 days for registered customers 30 days for non-registered customers

3. Product support : alteration services4. Delivery : delivery for those who have given their apparel for

alteration and available within range.

PRICING STRATEGY

Value based pricing: This pricing uses buyers perception of value, not the seller’s cost as the key to pricing. Value based pricing means that the marketer cannot design a product and a marketing program and then set a price. In this, the pantaloons assess the customer needs and value perceptions, based on primary and secondary research of data obtained of the customers. The targeted value and price then drive the decisions about what costs can be incurred and the resulting designs of products.

In pantaloons, the variety of products available to customers along with key features that is quality of apparel strikes in the mind of consumers. Along with this, after sale services like alterations, customer relationship management are also certain values given to customers. Pantaloons is also well known for its good value pricing techniques. This means that brand offers right combination of product quality and service at right time.

Product –

Mix pricing strategies

Product line pricing - setting prices across the entire product line. Product bundle pricing – pricing bundles of products sold together.

Pricing strategies followed by Pantaloons:

Segment pricing : Middle class income group. Discount pricing : During festive and sale seasons. Geographical pricing : Fixed pricing based on standard rates. Psychological pricing : Quality products available at economical rates.

DISTRIBUTION CHANNEL STRATEGY

Mother production warehouse: It is situated in Mumbai. Mother production warehouse is main center of pantaloons, where production happens fluently and after production it circulates to other regions.

Regional warehouse: Main production warehouse provides goods to regional warehouses. There are five regional warehouses.

Northern Southern Eastern Western central

Mother production warehouse ( Mumbai)

Regional warehouses

northensouthernwesterneasterncentral

city warehouses

particular stores

City warehouse: From regional warehouses to goods shift towards city warehouses.

Pantaloons has selected their locations that are easily accessible to the target market in areas that are consistent with the retailer’s positioning. Pantaloons locates its stores in almost 90% of malls in Delhi and Delhi NCR region. Whether it is high end mall or smaller one. Moreover they have women, kids and men exclusive stores. They want to cover entire area of this region.

Communication strategy

Advertising: Any paid form of non-personal presentation and promotion of services by an identified sponsor. Advertising is divided into 2 parts as per area coverage.

ATL: (Above the line)

Advertising is where mass media is used to promote brands and reach out to target consumers.

Sources: Newspapers, Radio, Television

Websites: http://pantaloons.com/

http://www.abfrl.com/

https://www.facebook.com/pantaloons/

https://www.youtube.com/results?search_query=pantaloons

BTL (Below the line)

Sources : Events, pamphlets, messages and mails

Sales promotion: This is use to encourage the purchases of services through short term incentives

As pantaloons give some special discounts offers in festive seasons. They have winter offers for 10 days, 15 days, 20 days offers.

Public relation: Through various events and shows they are maintaining relationship with consumers. They organizes games in events and provide gifts to winners.

People

Managing Director: Pranab Barua

Chief Executive Officer: Shital Mehta.

TGIP store manager (our industry mentor): Attin Kumar

Process: Firstly, customer visits shopping store of pantaloons and select as per their choices.

Physical evidence

Pantaloons provide products, shopping bills, and shopping bags etc as physical evidence.

BUDGETS & CONTROLS

Establishing a systematic set of procedures in a clothing store is necessary to prevent or minimize inventory losses, cash pilferage, unnecessary expenses and other problems that will cause business to lose assets and income. Such controls should stop employees, customers and suppliers from committing theft or fraud. A good internal control system includes separation of duties, a well-defined system of authorization, and clear areas of responsibility and accountability.

AREAS FOR CONTROLS INCLUDE:

1. Cash control

2. Inventory control3. Employee retention4. New customers5. Advertisement Budgets

ACTION PROGRAMMES

The company aims to achieve more market share in the Indian market .This can be accomplished by bringing variety in their existing products available at an affordable prices. The Pantaloons targets the increasing middle income group. Gradually, more of the consumers have shown a drastic shift in their tastes and preferences.

Proper promotion should be done so that more people knows about the sales season’s onset.

To create more awareness, advertising campaign in the form of fashion show can be organized.

During sales, the brand offers discounts at variety of products.

Certain offers like gift with pay can be used to retain and attract customers.

RECOMMENDATIONS

Better services in terms of logistics for customer. There should be more billing counters as during weekends there is more rush

so as to handle customers in a better way. Value added services can be improvised so that customer avail those

services and produce positive feedback towards the brand.

CONCLUSION

It was a great experience to explore the retail sector of pantaloons. Shopping in India has witnessed a revolution with the changes in the consumer buying behavior and the whole format of shopping altered .Pantaloons ranks in the pyramid of Indian retail with its brilliant consumer centered approach and marketing. To compete with this sector one needs to have up to date market information for planning and decision making. The second most important requirement is to manage costs widely in order to earn at least normal profits in face of stiff competition.