UNIVERSITY OF MUMBAIMAHATMA EDUCATION SOCIETY’S

PILLAIS COLLEGE OF ARTS,

COMMERCE & SCIENCE

NEW PANVEL

ACADEMIC YEAR 2011-2012

PROJECT: PANTALOONS MARKETING

SUBMITTED BY: CLASS T.Y.B.COM (A)

NAME: ANKIT SHARMA

ROLLNO: 3839

DATE OF SUBMISSION: 25/7/2011

SUBMITTED BY: SUBMITTED TO:

ANKIT SHARMA SEEMA SOMANI

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Declaration:-

I Mr. Ankit Sharma Student Of T.Y.BCOM Pillai’s

college of Arts, Commerce & Science New Panvel, Navi

Mumbai Here By Declare That:

I HAVE COMPLETED THE PRESENT ON MY OWN

INFORMATION PROVIDED.

THE REGARDING PROJECT IS TRUE & ORIGINAL.

Sign:

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ACKNOWLEDGEMENT:

THE COMPLETION OF PROJECT INVOLVES CONTRIBUTION OF TIME & EFFORTS OF MANY PEOPLE. I WOULD LIKE TO ACKNOWLEDGE THEIR HELP INDIVIDUALLY BY EXPRESSING OUR HEART GRATITUDE TO ALL OF THEM.

I WOULD LIKE TO THANKS MRS. SEEMA SOMANI FOR GIVING HER VALUABLE GUIDANCE, TIPS & HELPING US THROUGHOUT THE PROJECTS. I THANK TO ALL THOSE PERSONS WHO HELPED US DIRECTLY OR INDIRECTLY FOR THE SUCCESSFUL COMPLETION OF PROJECT.

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Sr.No. Name of Contents Page No.

1 Introduction 5

2 History of Pantaloons 7

3 Objectives 8

4 Major Milestones 10

5 Brands Available 11

6 Marketing Mix 12

7 Advertising & Marketing 13

8 SWOT Analysis 14

9 Product Mix Offered 18

10 Table of Product Category/format/ offerings

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11 Pantaloons Business Strategy

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12 ANALYSIS AND INTERPRETATION

25

13 Suggestion 28

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14 Conclusion 29

INTRODUCTION

Fashion is all about the now. Why, then should people not see a fresh look

every time they walk into a Pantaloons store? That is the thought behind 'Fresh

Fashion'. An idea that has captured the imagination of young India. With a focus

on the youth of today, Pantaloons offers trendy and hip fashion that defines the

hopes and aspirations of this demography. Pantaloons Fresh Fashion stands out as

a fashion trendsetter, on the lines of how fashion is followed internationally.

All Pantaloons stores reflect the new ideology -- Fresh Feeling, Fresh

Attitude, Fresh Fashion. The stores offer fresh collections and are visually

stimulating thanks to appealing interiors and attractive product display.

The First Pantaloons started in the year 2000 in Kolkata. In India, the

company has over 1000 stores across 71 cities and it employs more than 30000

people in their stores. It is the country largest listed retailer by market

capitalization and revenue.

It focused on meeting customer requirements for Fashion, Food, General

merchandise and home in both value & life style segment. Range of Branded &

Private label apparel, Footwear, Perfumes, Cosmetics, Jewellery, Leather Product

etc. Business model- “Family Focus” rather that “Individual Focus”. Aim was to

provide customers a unique shopping experience, comprising a vast range of

lifestyle & value retail product, mix of retailing formats coupled with facility of

entertainment & leisure.

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Pantaloons visual merchandising is creative, innovative and outstanding

which can be seen from its own in house private brands such as John Miller. All

the merchandise is placed at both 360 degree and 180 degrees. The new launched

products are showed by prominent colour back ground. Window display is highly

interactive for impulsive buyer. Price range is average.

Pantaloons follows a theme based interior, like a corner is assigned to every

brand and that brand put up its product as per its liking. Also the posters and ads

for discounts and offers for them are put up there only Exteriors of pantaloons

stores are very attractive & eye catchy. They put up fresh fashion collections on the

dummies on the entrance. The exterior appearance of a store silently announces

what customers can expect inside. Good exterior visual merchandising attracts

attention, creates interest and invites the customer into the business.

Pantaloons stores have very attractive display areas, in which they put the

dummies, accessories & all. They have a broad walkway & doorways. Also there

are small screens put up at various corners which are most visible, and which they

show case ads of their own as well as other brands available there. Here each rack

are placed in such a way so that consumers can easily take their wanted products.

Pantaloons have their own in house brands in Apparel as well as different sections.

Pantaloons visual merchandising is creative, innovative and outstanding which can

be seen from its own in house private brands such as John Miller. All the

merchandise is placed at both 360 degree and 180 degrees. The new launched

products are showed by prominent colour back ground. Window display is highly

interactive for impulsive buyer.

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History of Pantaloons:-

Our Company was incorporated on October 12, 1987 as Manz Wear Private

Limited. The Company was converted into a public limited company on September

20, 1991 and on September 25, 1992 the name was changed to Pantaloon Fashions

(India) Limited and in the same year the Company made an initial public offering.

We later changed our name to Pantaloon Retail (India) Limited on July 7 1999.

The Registered Office of the Company was shifted from Venkatesh

Bhavan ,4th Floor 86 Mirza Street, Mumbai 400003 to Pantaloon House, G 11,

M.I.D.C. Cross Road A, Andheri East, Mumbai 400 093 and subsequently shifted

to its current registered office at Pantaloon Knowledge House, Shyam Nagar, Off.

Jogeshwari Vikhroli Road, Jogeshwari (East), Mumbai 400 060.

The Equity Shares of our Company were first listed on BSE, DSE and ASE,

on July 30, 1992. Thereafter, the Equity Shares were listed on the NSE on

February 20, 2001

We started our operations by selling branded garments under Pantaloon,

Bare and John Miller brands. We set up our first menswear Pantaloon Shoppe

Outlet in 1993. Our business has grown from one store in Kolkata in 1997

occupying an area of 8,000 Sq ft to 72 stores, apart from our 22 factory outlets

located in the multiple cities occupying an aggregate area of 21,07,608 Sq. ft. We

focus on the Lifestyle segment through 14 Pantaloon stores, 3 Central Malls, 2

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aLL, 2 Fashion Station and 1 MeLa store. In the Value offering, we cater to the

mass through our 21 Big Bazaar and 30 Food Bazaar outlets. .

Objectives:-

Objects as contained in Memorandum of Association include:

1. To carry on the business of manufacturing, buying, selling, exchanging, altering,

importing, exporting, distributing or otherwise dealing in ready made garments an

hosiery made of cotton, silk, rayon, wool, nylon, man-made fabrics, polyester,

canvas, jute, leather, any other fabric coated with any chemical or not, or other

preparation and other fabric.

2. To carry on the business of manufacturing, processing, dyeing, bleaching,

buying, selling, exchanging, importing, exporting or otherwise dealing in yarns and

textiles made of cotton, silk, rayon, wool, nylon, man-made fibres, polyester,

canvas or any other substances.

3. To carry on trade or retail business in India through retail formats and including

but not limited to hyper markets, super markets, mega stores/discount stores, cash

& carry, departmental stores, shoppers plaza, direct to home, phone order and mail

order, catalogue, through internet and other forms and multi level channels for all

products and services, dealing in all kinds of goods, materials and items including

but not limited to food & provisions, household goods, consumer durables,

jewellery, home improvement products, footwear’s, luggage’s, books & stationery,

health care and beauty products, toys and music, computers & accessories, telecom

products, agri input products, furniture & furnishings, Automobile & accessories,

and acquiring and running food, service and entertainment centres including but

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not limited to multiplexes, cinemas, gaming centres, amusement parks, restaurants

and food courts and acquiring of land or building on lease or freehold or any

commercial or industrial or residential building for running and management of

retail business and to acquire flats, offices and retail spaces for carrying on retail

business and to sell them, lease or sublet them and to undertake and execute civil,

mechanical, electrical and structural works contracts and sub contracts in all their

respective branches to carry on retailing business.

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Major Milestones:-

1987: Company incorporated as Men’s Wear Private Limited. Launch of

Pantaloons trouser, India’s first formal trouser brand.

1991: Launch of BARE, the Indian jeans brand.

1992: Initial public offer (IPO) was made in the month of May.

1994: The Pantaloon Shoppe – exclusive menswear store in franchisee format

launched across the nation. The company starts the distribution of branded

garments through multi-brand retail outlets across the nation.

1995: John Miller – Formal shirt brand launched.

1997: Pantaloons – India’s family store launched in Kolkata.

2001: Big Bazaar, ‘Is se sasta aur accha kahi nahin’ - India’s first hypermarket

chain launched.

2002: Food Bazaar, the supermarket chain is launched.

2004: Central – ‘Shop, Eat, Celebrate in the Heart of Our City’ - India’s first

seamless mall is launched in Bangalore.

2005: Fashion Station - the popular fashion chain is launched

ALL – ‘a little larger’ - exclusive stores for plus-size individuals is launched

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2006: Future Capital Holdings, the company’s financial arm launches real estate

funds Kshitij and Horizon and

private equity fund In division.

Plans forays into insurance and

consumer credit.

These are the few famous brands which are available at Pantaloons:

 

Sr.No PRIVATE LABEL & BRANDS AT STORE.

1 ADIDAS2 AKKRITI3 BARE4 BIBA5 BLACK PANTHER6 CONVERSE7 Dio Rucci8 GANUCHI9 GINI N JONY10 GIOVANI11 HONEY12 INDIAN TERRAIN13 INDIGO NATION14 JEALOUS15 JM SPORT16 JOCKEY17 JOHN MILLER18 LEE19 LEE COOPER20 LEONE21 LILLIPUT22 LOMBARD23 MIX N MATCH24 MONTE CARLO25 URBAN YOGA26 TRISHAA27 AGILE28 REMANIKA29 SHRISHTI30 SCOTSVILLE

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MARKETING MIX:-

Marketers use numerous tools to elicit desired responses from their

target markets. These tools constitute a marketing mix .Marketing mix i s

the se t or market ing tools tha t f i rm uses to pursue its marketing

objectives in the target market.

McCar thy  c lass i f ied   these   tools   in to   four  broad  groups that

he called the four Ps of marketing: product, price, place, and promotion. 

Product:- The store preparing an offering mix of products, services and

prices, and utilizing a promotion mix of sales promotion, advertising, sales

force, public relations, direct mail, telemarketing, and internet to reach the

trade channels and the target customers.

Price: - A store can change their price according to their

expenditure on advertising and sales promotion.

Place: - A place is matters for profit margin. A store must be open at

crowded & populated.

Promotion: - A product may be promoted by advertising & by using sales

techniques.

These are the four P’s which are followed by these stores. These P’s help

them in increasing their sales margin as well as profit margin. It takes place after

proper determination of market. These P’s are adopted by the Kishore Biyani in

pantaloons and for this he is awarded by many awards.

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These four P’s boost their market & also increase their share value in the

share market and it is one of the most success full departmental stores of India.

ADVERTISING & MARKETING

Advertising is omnipresent. It is everywhere. Advertising is a powerful

tool of business and marketing. But some others say

that advertising manipulates our needs and makes us buy things, which we

do not want. Advertising is considered so powerful that doing business today

without advertising is like looking at a girl in a dark room.

Counter ing  c la ims  about   the  powerful  persuas ive  na ture  of  adver t i

s ing i s one of the most notor ious sayings in wor ld of  advertising;

“I know half the money I spent on advertising in wasted; but I can never find

which half. It always gets return in form of improvement of sale.

Advertising through mass media: - Advertising through television is most effective

advertisement. It attracts consumer attention at a very high speed.

Advertisement through radio: - Advertising through radio is known as oral

advertising. It gives information if new scheme and discount has been allowed in

their stores. Now-a-days it reduces but it also attracts consumer attention.

Advertisement by other different ways: - Advertising also made through internet,

SMS services, and it also sells their product directly through internet and now-a-

days it is one of the most fast selling processes. People buy their product by sitting

at one place. This also increases the pantaloons profit margin.

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SWOT Analysis:-

(Internal Environment Analysis (strengths/weaknesses Analysis)

This is one thing to decide attractive opportunities and another to have the

competencies to succeed in these opportunities. Each business needs to evaluate its

internal strengths and weaknesses periodically. It can do so by using a form like

the one shown in the marketing Memo “Checklist for Performing

Strength/Weaknesses Analysis”. Management—or an outside consultant—reviews

marketing, financial, manufacturing and organizational competencies and rates

each factor as a major strength, minor strength, neutral factor, minor weakness, or

major weakness.

Clearly, the business does not have to correct all its weakness, nor should it

gloat about all its strengths. The big question is whether the business should limit

itself to those opportunities where it might have to acquire or develop certain

strengths.

Sometimes a business does poorly not because its departments lack the

required strengths but because they do not work together as a team. In one major

electronics company, the engineers look down on the salespeople as “engineers

who couldn’t make it”, and the salespeople look down on the service people as

“salespeople who couldn’t make it”. It is therefore critically important to assess

interdepartmental working relationships as part of the internal environmental audit.

This analysis helps in reducing the market risk and increases the sales

margin as well as their profit margin.

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Some of the SWOT Factor of the pantaloons explains below:

Strength: - Brand equity and early mover advantage; Entrepreneur led,

professionally managed by an experienced team; Project execution and operations

capabilities; Vast range of lifestyle and value retail products and services; Strong

distribution and logistics network and supply chain; strong distribution and

logistics network, with our 21 distribution centres covering; and Large base of

customers and Strong focus on systems and processes; Retailing is a "technology-

intensive" industry.

A pantaloon is an excellent branding and high quality image. People buy

product because it possesses branded product and quality product. Teenagers and

young generation are crazy about these branded products.

Weakness:- It face a lot of competition from other different malls, departmental

stores. Some places it has not been able to compete due to its high prices. High

prices limited range their range of customers and it is affordable only by the

middle class and upper class of the society.

Opportunity:-The fickle and design. This is because of the conscious nature of the

target market of young teenagers and adults who like to buy the latest fashions. It

brings out new technology and new product or any new fashion which attracts the

customers. Moving towards the young and adult customers.

Threat: - More number of outlets of competitors available in the surrounding. If the

unorganized retailers are put together, they are parallel to a large supermarket with

no or little overheads, high degree of flexibility in merchandise, display, prices and

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turnover. Shopping Culture: Shopping culture has not developed in India as yet.

Even now malls are just a place to hang around with family and friends and largely

confined to window-shopping.

Financial slow down, consumer choice differs, price wars & more window

shopping.

Marquees

A special type of sign is used to display the name of the store. It is used to

announce a change in season, sale, a special event or a promotion.

Promotion Strategy

Promotion includes all the activities the company undertakes to

communicate and promote its products to the target market. Atlas has to hire, train,

and motivate salespeople. It has to set up communication and promotion programs

consisting of advertising, sales promotion, public relations, and direct and on-line

marketing.

Hoardings:

Pantaloon puts its hoarding at prime locations, featuring the upcoming Fashion

events or its brand ambassadors who are generally eminent celebrity. Category

manager plans promotions / brand or product building schemes. The category

manager identifies slow movers and also disposal plan for the same.

Labour :

The manpower information is useful in knowing the employee capacity, which is

proportional to the production capacity.

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Financial Information:

The financial status of the vendor is useful in knowing the capability of the vendor

to deliver the order, in adverse situations.

Names and Addresses of all Units used for Production

Carrying expenses for the company will decrease, which depends on the vendor

unit location. The criterion of selecting a vendor by the company is equipped with

the information needed for the proper delivering and distribution of the order by

the company.

IT System

IT system at Pantaloon stores is fully centralized; the report of daily sales is being

reported to head office in Germany.

Bar Coding and Scanners:

Point of sale systems use scanners and bar coding to identify an item, use pre-

stored data to calculate the cost and generate the total bill for a client.

Payment:

Payment through credit cards has become quite widespread and this enables a fast

and easy payment process

CRM Systems:

Data warehousing & mining technologies offer consumer data and apply it to

business.

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Product Mix Offered:-

The kind of product mix to be offered by the retailer is another important

consideration. As mentioned earlier the main product line of Pantaloons is men’s

and women’s clothing and other accessories comprising a vigilant mix of private as

well as other labels... Since Pantaloons provides products to a potentially large

number of customers at affordable prices, it falls in the High Turnover - Low

Margin Category

PRODUCT

Spring (designer wear for men

and women)

Men’s occasion wear

Ladies formal Men’s Formal

Ladies ethnic and casuals Men’s Ethnic

Nightwear Denim wear

Infant necessities Active wear, sports

wear

Indo-Western Teen Boys Wear

Kids wear Men’s casuals

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Table:-

Product Category Concepts Status Format/Offerings

Food Brew Bar Operational Beers, snacks and set

meals

Café

Bollywood

Planned Eateries

Chomosa Operational Snack counter in high

traffic area

Food Bazaar Operational Supermarket

Rain Operational Food and beverages

Sport Bar Operational Focused on sports

lovers

Fashion aLL Operational Fashion apparel for

plus-size individual

Big Bazaar Operational Hypermarket

Blue Sky Operational Fashion accessories

Central Operational Seamless malls

Fashion Station Operational Popular fashion

Gini & Jony Operational Kids’ fashion

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Pantaloons Operational Department store

Home &

Electronics

Collection i Operational Home furnishings

Electronics

Bazaar

Operational Present within Big

Bazaar

e-zone Operational Consumer Electronics

Furniture

Bazaar

Operational Home furniture

Got it Planned One stop shop for home

maintenance

Home Town Planned One stop Destination

Telecom & IT Gen M Planned Hi-tech products

M Bazaar Planned Solutions for

knowledge,

entertainment and

communication

M Port Planned Standalone stores/Shop-

in-shop

General

Merchandise

Big Bazaar Operational Hypermarket

Blue Sky Operational Fashion Accessories

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Central Operational Seamless malls

Footwear

Bazaar

Planned Footwear and

accessories

Navarasa Planned N.A.

Pantaloons Operational Department store

Shoe Factory Operational Footwear and

accessories

Leisure &

Entertainment

Bowling Co. Operational Premium family

entertainment center

F 123 Operational For leisure and

entertainment

Wellness &

Beauty

Health Village Planned N.A.

Star Sitara Operational Beauty salon for men

and women

Tulsi Operational Pharmacy

Turmeric Planned ‘Cut-in’ format at Food

Bazaar

Books & Music Depot Operational Books and music

e-tailing Online retailing Operational Futurebazaar.com

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IT System

IT system at Pantaloon stores is fully centralized; the report of daily sales is

being reported to head office in Germany. Pantaloon Retail selected the entire suite

of Connected Retailer solutions to take them into the future of retailing. They

purchased Connected Retailer Store, Merchandising, Planning, Sales Analytics,

and CRM. At the core of their systems is the Connected Retailer Merchandising

Solution, which streamlines operations, unifies asset management, and helps

retailers learn the truth about their business. This powerful retail enterprise solution

features an open-architecture design that provides unprecedented flexibility,

scalability, power, and control merchandising’s centralized transactional database

and support tools enable retailers to make and execute better decisions based on

accurate, current, and shared information. Buying consistent data to guide all

processes, the solution automatically synchronizes and integrates all key functions,

including planning, ordering, pricing, flow, sales, margins, and inventory

management Connected Retailer. Bar Coding and Scanners: Point of sale systems

use scanners and bar coding to identify an item, use pre-stored data to calculate the

cost and generate the total bill for a client.

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Pantaloons Business Strategy

1 Emphasis on backward integration.

2 Expansion of FMCG.

3 Increasing customer satisfaction and Pantaloon base of loyal customers.

4 Continue to upgrade information technology systems and processes.

5 Continue to train employees and seek entrepreneurship from employees.

6 Providing discount to attract the customer attention.

7 It is expanding his business at densely populated area.

8 To understand the concept of lifestyle retailing by the company.

9 Mix-Marketing Strategy adopted.

10 Providing gifts on different type of goods.

11 It adopted FOUR P’s for increasing their sales and profit margin.

12 It should be operated by experienced management team.

13 Increasing sales by providing attractive rate of discount to their customers.

14 There have been weekly offers to customers at a cheaper rate.

15 Recently, pantaloons providing upto 50% of discount on any of their

product.

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16 Future Group shall deliver Everything, Everywhere, Every time for Every

Indian Consumer in the most profitable manner.

ANALYSIS AND INTERPRETATION:

Q1. In a month how many times you visit Pantaloons?

a) Once 7

b) Twice 21

c) Thrice 8

d) More than thrice 25

e) As per requirement 37

INTERPRETATION:

Out of 100 respondent, 37% people visit the store when they have

some requirement and 25% are visited more than thrice, 23% visited two

times in month and 7% & 8% people visited one and three times in a

month respectively. Most of them regularly visit Pantaloons.

Q2. Your shopping experience in Pantaloons is always!

a) Outstanding 11

b) Excellent 19

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c) Good 26

d) Average 42

e) Bad 2

INTERPRETATION:

Out of 100 respondent, 26% people has good shopping experience in

Pantaloons,42% has average and 19% people has excellent. But 11% has

outstanding shopping experience and 2% has bad shopping experience.

Q3. Discounts and offers served in Pantaloons is !

a) Outstanding 7

b) Excellent 32

c) Good 36

d) Average 23

e) Bad 2

INTERPRETATION:

Out of 100 respondents, Discounts and offers served in big bazaar is

good said by 36% customers, 32% feel it is excellent and only 7% feel

outstanding. But 25% customers are not satisfied by Discounts and offers

served in the Pantaloons. Maximum Customers are satisfied by

Discounts and offers served in the Pantaloons.

Q4. How do you feel about sales persons and promoters?

a) Outstanding 4

b) Excellent 21

c) Good 49

d) Average 23

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e) Bad 3

INTERPRETATION:

74% of the respondents are satisfied by the sales persons and

promoters in the store rest 26% respondents are not satisfied by the sales

persons and promoters in the store. Sales persons and promoters behave

well with customer.

Q5. Are you satisfied with the billing facility at the store?

a) YES 85

b) NO 15

INTERPRETATION:

85% of the respondents are satisfied by the billing facility in the store,

rest 15 % are not satisfied. Some customer is not satisfied by billing

facility.

FINDING AND SUGGESTIONS:

1. Generally youth and women are the main customers at Pantaloons.

2. Electronic media has a great impact on customers. Electronic media

help in making people aware about new products and offers

3. The availability of all products under one roof of GM and nearby

their house helps customer to shop weekly and shop fresh every time.

4. Mega events like great Indian shopping festival has great impact in

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attracting customer to purchase more and more.

5. Customer are more attracted toward discount and offer including

gift.

6. Signage and display helps in attracting customer to purchase more

and more.

7. Offers and promotional scheme helps in add on sales.

SUGGESTION

1. General merchandise constitute number of departments so cash

counter should be added up in the section to reduce problem of billing.

2. Queue process management should be made good.

3. During weekend customer often feel problem of trolley’s so trolley

should be properly managed to get rid of trolley problem.

4. Damaged product should be replaced because it gives bad impact to

other product kept on the shelf.

5. Pantaloons should include more of branded products in its product

Category so as to attract the brand choosy people to come in to

Pantaloons.

6. Employee should be given training time to time. The service of the

Sales person is needed to be improved. Personal care should be taken

by the sales person for the customers so that the customers feel good.

7. It was observed most of the customers were not aware about the

offer and scheme going in the store .so proper communication should

be made to make customer aware about the offer and discount.

8. Customer often face problem of unavailability of product like shoes,

folder, different size of pressure cooker etc. so product should be made

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available in stock so that customer should not face problem of stock

out.

Conclusion:-

A pantaloon is the best bet in retail. The store has been well maintained in

accordance with the latest demands of the customers. The organization must strive

for the development of new formats to facilitate a better shopping environment for

its customers. It can be undoubtedly stated the company has well planned retail

strategies currently but these must be updated with the continuously changing

environment so that it can sustain the competitive advantage.

The underlying principle of market segmentation is that the product and

Services needs of individual customers differ. Market segmentation involves the

grouping of customers together with the aim of better satisfying their needs whilst

maintaining economies of scale. It consists of three stages and if properly executed

should deliver more satisfy Customers, few direct confrontations with competitors,

and better Designed marketing programmes. It holds a large customer base and it

seemed from the study that the customers are quite satisfied with Pantaloons.

Brands like ADIDAS, JOHN MILLER, and LILIPUT are offered at discount and

reasonable price.

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The majority of customers belong to middle class family. The youth

generation also likes shopping and moving around Pantaloons. Volume sales

always take place in Pantaloons. Impulse buying behaviour of customers comes in

to play most of the times in Pantaloons.

Discount and scheme decision are taken by the headquarters and new

product is added time to time by the direction of category management. They

manage their merchandise in such a way that must be accepted by customer.