Table of Content

Particulars Page no.

1. Introduction to Retail Industry.

2. Evolution of Pantaloons.

3. About Future Group.

4. Growth of Pantaloons.

5. Format of Operation.

6. Retail Strategy.

7. Process & support function.

8. Future Growth plan of the company.

9. Sales Promotion.

10. Competitors of Pantaloons.

11. Comparison with Pantaloons.

12. Conclusion.

13. Bibliography.

14. Questionnaire.

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INTRODUCTION

Introduction of Retail Industry:-

Retail consists of the sale of goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct 2 | P a g e

consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be individuals or businesses. In commerce, a "retailer" buys goods or products in large quantities from manufacturers or importers, either directly or through a wholesaler, and then sells smaller quantities to the end-user. Retail establishments are often called shops or stores. Retailers are at the end of the supply chain. Manufacturing marketers see the process of retailing as a necessary part of their overall distribution strategy. The term "retailer" is also applied where a service provider services the needs of a large number of individuals, such as a public utility, like electric power.

Shops may be on residential streets, shopping streets with few or no houses or in a shopping mall. Shopping streets may be for pedestrians only. Sometimes a shopping street has a partial or full roof to protect customers from precipitation. Online retailing, a type of electronic commerce used for business-to-consumer (B2C) transactions and mail order, are forms of non-shop retailing.

Shopping generally refers to the act of buying products. Sometimes this is done to obtain necessities such as food and clothing; sometimes it is done as a recreational activity. Recreational shopping often involves window shopping (just looking, not buying) and browsing and does not always result in a purchase.

One of India’s major retailers with presence in following two segments:

Lifestyle Retailing - Pantaloons, Central, Fashion Station, aLL, MeLa.

Value Retailing - Big Bazaar, Food Bazaar.

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Retailing is the world’s largest private industry

Retail is the world’s largest private industry with global retail sales of roughly USD 8 trillion. Retailing is also one of the biggest contributors to the Gross Domestic Product (GDP) of most countries and also one of the biggest employers. (Source CII McKinsey Report titled “Retailing in India, the Emerging Revolution”)

In India, however, the retail sector has seen a high level of fragmentation with a large share held by unorganized players.

Indian Retail Industry

India has a large number of retail enterprises. With close to 12 million retail outlets India has one of the highest retail densities in the world. In terms of the structure, the industry is fragmented and predominantly consists of independent, owner-managed shops. The retail businesses include a variety of traditional retail formats, such as "kirana" stores which stock basic household necessities (including food products), street markets-regular markets held at fixed centers retailing food and general merchandise items, street vendors-mobile retailers essentially selling perishable food items-fruits, vegetables etc. and small non specialized retailers.

Fragmented nature of Indian Retail

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Growth of Organized Re t ail in India According to the 8th Annual Global Retail Development Index (GRDI) of AT Kearney, India retail industry is the most promising emerging market for investment. In 2007, the retail trade in India had a share of 8-10% in the GDP (Gross Domestic Product) of the country. In 2009, it rose to 12%. It is also expected to reach 22% by 2010.

According to a report by Northbride Capita, the India retail industry is expected to grow to US$ 700 billion by 2010. By the same time, the organized sector will be 20% of the total market share. It can be mentioned here that, the share of organized sector in 2007 was 7.5% of the total retail market.

Drivers of Gr ow th in Organized Retailing

We believe that India is experiencing certain socio-demographic changes which are furthering the growth in organized retail while enablers such as availability of quality real estate are hastening the pace of this transformation.

Risi n g inc o me l evels We believe increasing household income has led to a substantial change in the profile of the Indian consumer. A larger number of households are getting added to the consuming class with growth in income levels. In the chart provided below the profile of the ‘Climbers’, ‘Consuming’ and ‘Very Rich’ consumers class is biased towards self indulgent consumption patterns.

All India – Distribution of households by income (Rs per annum)

Figures in million: Households (population)1995 -96 2001 - 02 2006 - 07

The very rich

The consu

ing classTh

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The aspirants

The destitute

1.2 (7)

32.5 (186)

54.1 (312.2)

44.0 (253.9)

33.0 (190.4)

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75.5 (432)

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Rich (Above Rs. 215,000) Consuming (Rs 45,000-215,000) Climbers (Rs. 22,000-45,000) Aspirants (Rs. 16,000-22,000) Destitute (Less than Rs.16,000)

“The consuming class” and “the climbers” are expected to increase from 120.8 million households in 2001-02 to 157.2 million households in 2006-07 (source: The Marketing White book 2003-04, brought out by Business world) this large base of households with growing disposable income is expected to drive demand for organized retail.

Of this, 56% (44.8 million households) is expected to be concentrated in urban India.

Young populat i on with high disp o s able inc o me

India has the lowest median age of 24, for its over 1,000 million strong population, among the other highly populous countries (Source: KSA Technopak) Thus India has the largest ‘young’ population in terms of sheer size and we believe this young segment is the major driver of consumption as they have the ability (disposable income) and willingness (consumer confidence) to spend. Most of such upwardly mobile consumers have little personal time and they seek greater variety and availability of items under a single roof and give highest preference to convenience, which is the basic proposition of modern retailing formats.The brand-conscious young population forms the largest segment of demand for the majority of retailers.

Changing age demographic s in India

(1)Availability of brands and m e r chand i se Consumerism and brand proliferation has been another enabler for organized retailing in India. Most of the world’s leading brands are now present in India. Brands like L’Oreal, Espirit, Louis Vuitton, Marks & Spencer, Tommy Hilfiger, Louis Philippe, Levis, Pepe, Lee, Arrow, Dockers, Red Tape, Clarence, Hugo Boss, Tiffany, Bulgari, Ecco, Chambor, Revlon, Philips, Corel, Magpie, Nike, Reebok, Parker, Ray Ban, Lego, Mattel are now present in India.

(2)Media Proliferation Another factor that accelerated the concept of organized retail is media proliferation. The resultant exposure to advertisements and brand promotions across product categories has led to a growing consumer spending across a wide range of product categories.

(3)Availability of quality real estate Availability of quality real estate has been one of the main constraints for development of organized retail in India. In the past, negative yield on leased property, lack of bank funding and the unorganized property market

resulted in dearth of quality retail space in the country. The spread between yield on property and the financing cost has turned positive with the fall in interest rates. Attractive yields on investments have resulted in sharp increase in property development.

In addition, the various States governments have taken proactive steps to release large tracts of land for commercial development. Growth of property funds and permission for Real Estate Investment Trusts (REITs) to be set up will further help create a secondary market for real estate in the country.

(4)Enhanced Fu n ding Options Supply side changes such as consumer finance help in shaping a markets buying power. Consumer credit, especially through credit cards, has been growing healthily year on year. Financial card usage in India has witnessed tremendous growth with volume transactions experiencing greatest growth.

(5)I m ple m entation of VAT to reduce cost and c o mplexity Differential sales tax rates across states and the incidence of multi point local levies added to costs and complexity, and have hampered aggregation of sourcing. The implementation of Value Added Tax (VAT) is also expected to narrow down the cost advantage that unorganized retailers enjoy over the organized ones.

(6)Inbound touris t s , shopping

There is a large NRI population. Given that international lifestyle brands are readily available in their country of migration, this population shops for similar quality merchandise at lower prices in India on their visits here. Additionally, inbound tourists visiting India and shopping here seek similar products at lower

costs in a similar environment.

(7)I m p a ct of Globalization Globalization has removed trade barriers and promoted consumerism. Over the last decade, there has been an increase in branded goods – both domestic and international – in the Indian market across product categories. Both width and depth of product offering to the Indian consumers is increasing.

Types of Retail Outlets:-

A marketplace is a location where goods and services are exchanged. The traditional market square is a city square where traders set up stalls and buyers browse the merchandise. This kind of market is very old, and countless such markets are still in operation around the whole world.

In some parts of the world, the retail business is still dominated by small family-run stores, but this market is increasingly being taken over by large retail chains.

Retail is usually classified by type of products as follows:

Food products Hard goods ("hardline retailers") - appliances,

electronics, furniture, sporting goods, etc. Soft goods - clothing, apparel, and other fabrics.

There are the following types of retailers by marketing strategy:

Department stores - A very large stores offering a huge assortment of "soft" and "hard goods; often bear a resemblance to a collection of specialty stores. A retailer of such store carries variety of categories and has broad assortment at average price. They offer considerable customer service.

Discount stores – It tend to offer a wide array of products and services, but they compete mainly on price offers extensive assortment of merchandise at affordable and cut-rate prices. Normally retailers sell less fashion-oriented brands.

Supermarkets - It sell mostly food products. Warehouse stores - Warehouses that offer low-cost,

often high-quantity goods piled on pallets or steel shelves; warehouse clubs charge a membership fee.

Variety stores or "Dollar stores" - These offer extremely low-cost goods, with limited selection;

Demographic - Retailers that aim at one particular segment (e.g., high-end retailers focusing on wealthy individuals).

Mom-And-Pop (or Kirana Stores as they call them in India) - It is a retail outlet that is owned and operated by individuals. The range of products are very selective and few in numbers. These stores are seen in local community often are family-run businesses. The square feet area of the store depends on the store holder.

Specialty stores - A typical specialty store gives attention to a particular category and provides high level of service to the customers. A pet store that specializes in selling dog food would be regarded as a specialty store. However, branded stores also come under this format.

General store - A rural store that supplies the main needs for the local community.

Convenience stores - It is essentially found in residential areas. They provide limited amount of merchandise at more than average prices with a speedy checkout. This store is ideal for emergency and immediate purchases.

Hypermarkets - It provides variety and huge volumes of exclusive merchandise at low margins. The operating cost is comparatively less than other retail formats. A classic example is the Metro in Bangalore.

Supermarkets - It is a self service store consisting mainly of grocery and limited products on non food items. They may adopt a Hi-Lo or an EDLP strategy for pricing. The supermarkets can be anywhere between 20,000-40,000 square feet. Example: SPAR supermarket.

Malls - It has a range of retail shops at a single outlet. They endow with products, food and entertainment under a roof.

Category killers or Category Specialist - By supplying wide assortment in a single category for lower prices a retailer can "kill" that category for other retailers. For few categories, such as electronics, the products are displayed at the Centre of the store and sales person will be available to address customer queries and give suggestions when required. Other retail format stores are forced to reduce the prices if a category specialist retail store is present in the vicinity.

E-Tailers - The customer can shop and order through internet and the merchandise are dropped at the customer's doorstep. Here the retailers use drop shipping technique. They accept the payment for the product but the customer receives the product directly from the manufacturer or a wholesaler. This format is ideal for customers who do not want to travel to retail stores and are interested in home shopping. However it is important for the customer to be wary about defective products and non secure credit card transaction. Example: Amazon and E-bay.

Vending Machines - This is an automated piece of equipment wherein customers can drop in the money in machine and acquire the products. For example: Soft drinks vending at Bangalore Airport.

Some stores take a no frills approach, while others are "mid-range" or "high end", depending on what income level they target.

Other types of retail store include:

Automated Retail – Automates retail stores are self service, robotic kiosks located in airports, malls and grocery stores. The stores accept credit cards and are usually open 24/7. Examples include Zoom Shops and Red box.

Big-box stores – Big-box stores encompass larger department, discount, general merchandise, and warehouse stores.

Convenience store - a small store often with extended hours, stocking everyday or roadside items.

General store - a store which sells most goods needed, typically in a rural area.

Retailers can opt for a format as each provides different retail mix to its customers based on their customer demographics, lifestyle and purchase behavior. A good format will lend a hand to display products well and entice the target customers to spawn sales.

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Challenges for Organized retail

(1)Availability of skilled manpower: The non availability of trained manpower, especially at the management level, poses a key risk for the retail sector. With growing opportunities in the emerging service sectors, the ability of the retail business to hire and retain quality people is under pressure. Further, as organized retail grows rapidly, there will be pressure on existing players as new entrants look for trained manpower at various levels. (2)Supply chain issues: Supply Chain Management efficiencies are essential to retailers to maintain and improve margins. SCM includes vendor management and logistics management. Vendor selection is an important outcome of the sourcing process and a key to most efficient sourcing. Logistics management aims to get the goods from the vendor to the store in the shortest possible time thereby avoiding unnecessary stocking of goods. In India, both vendor management and logistics management are still underdeveloped. However, with growing size of operations, supply chain efficiencies will become a key differentiator of profitability in retail. Similarly, supply chain tools and techniques are still developing in India with the increase in organized retailing and entry of international brands. Bar coding is now being implemented, driven by the retailers for whom it is an essential ingredient for supply chain management.

ABOUT PANTALOONS

Evolution of Pantaloons:-

The 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 Pantaloons Fashions (India) Limited and in the same year the Company made an initial public offering. We later changed our name to Pantaloons Retail (India) Limited on July 7 1999.

The Equity Shares of the 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. The company started his operations by selling branded garments under Pantaloons, Bare and John Miller brands. They set up our first menswear Pantaloons Shoppe Outlet in 1993. The 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. They focus on the Lifestyle segment through 14 Pantaloons stores, 3 Central Malls, 2 aLL, 2 Fashion Station and 1 MeLa store. In the Value offering, they cater to the mass through our 21Big Bazaar and 30 Food Bazaar outlets.

Objects of our Company our objects as contained in our Memorandum of Association include: 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.

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.

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 an 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, foot wears, lug gages, 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 centers including but 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.

About Future Group

Future group:-

Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one of India’s leading business houses with multiple businesses spanning across the consumption space. While retail forms the core business activity of Future Group, group subsidiaries are present in consumer finance, capital, insurance, leisure and entertainment, brand development, retail real estate development, retail media and logistics.

Led by its flagship enterprise, Pantaloons Retail, the group operates over 16 million square feet of retail space in 73 cities and towns and 65 rural locations across India. Headquartered in Mumbai (Bombay), Pantaloons Retail employs around 30,000 people and is listed on the Indian stock exchanges. The company follows a multi-format retail

strategy that captures almost the entire consumption basket of Indian customers. In the lifestyle segment, the group operates Pantaloons, a fashion retail chain and Central, a chain of seamless malls. In the value segment, its marquee brand, Big Bazaar is a hypermarket format that combines the look, touch and feel of Indian bazaars with the choice and convenience of modern retail.

The group’s specialty retail formats include supermarket chain - Food Bazaar, sportswear retailer - Planet Sports, electronics retailer - eZone, home improvement chain -Home Town and rural retail chain - Aadhaar, among others. It also operates popular shopping portal - www.futurebazaar.com.

Future Group believes in developing strong insights on Indian consumers and building businesses based on Indian ideas, as espoused in the group’s core value of ‘Indianness.’ The group’s corporate credo is, ‘Rewrite rules, Retain values.’

Future Groups Includes-

Future Retail- Covering all retail business. Future Capital- covering consumers finance,

insurance and advisory services. Future brands- covering all brands owned and

managed by company.

Future space- which includes development and management of real states.

Future logistics- which manages supply chain and distribution.

Future media- which develops and manages retail media spaces.

Future Group Manifesto:-

“Future” – the word which signifies optimism, growth, achievement, strength, beauty, rewards and perfection.

Future encourages us to explore areas yet unexplored, write rules yet unwritten; create new opportunities and new successes. To strive for a glorious future brings to us our strength, our ability to learn, unlearn and re-learn our ability to evolve.

Future Group will not wait for the Future to unfold itself but create future scenarios in the consumer space and facilitate consumption because consumption is development. Thereby, we will effect socio-economic development for our customers, employees, shareholders, associates and partners.

Our customers will not just get what they need, but also get them where, how and when they need.

We will not just post satisfactory results, we will write success stories.

We will not just operate efficiently in the Indian economy, we will evolve it.

We will not just spot trends; we will set trends by marrying our understanding of the Indian consumer to their needs of tomorrow.

It is this understanding that has helped us succeed. And it is this that will help us succeed in the Future. We shall keep relearning. And in this process, do just one thing.

Rewrite Rules, Retain Values:-

Group Vision Future Group shall deliver Everything, Everywhere, Every time for Every Indian Consumer in the most profitable manner.

Group Mission We share the vision and belief that our customers and stakeholders shall be served only by creating and executing future scenarios in the consumption space leading to economic development.

We will be the trendsetters in evolving delivery formats, creating retail realty, making consumption affordable for all customer segments – for classes and for masses.

We shall infuse Indian brands with confidence and renewed ambition.

We shall be efficient, cost- conscious and committed to quality in whatever we do.

We shall ensure that our positive attitude, sincerity, humility and united determination shall be the driving force to make us successful.

  Core Values Indianness: confidence in ourselves. Leadership: to be a leader, both in thought and

business. Respect & Humility: to respect every individual and be

humble in our conduct.

Introspection: leading to purposeful thinking. Openness: to be open and receptive to new ideas,

knowledge and information. Valuing and Nurturing Relationships: to build long

term relationships. Simplicity & Positivity: Simplicity and positivity in our

thought, business and action. Adaptability: to be flexible and adaptable, to meet

challenges. Flow: to respect and understand the universal laws of

nature.

Growth of Pantaloons

Growth of pantaloons-

Pantaloons Retail (India) Limited, is India’s leading retailer that operates multiple retail formats in both the value and lifestyle segment of the Indian consumer market. Headquartered in Mumbai (Bombay), the company operates over 16 million square feet of retail space, has over 1000 stores across 73 cities in India and employs over 30,000 people.

The company’s leading formats include Pantaloons, a chain of fashion outlets,  Big Bazaar, a uniquely Indian hypermarket chain, Food Bazaar, a supermarket chain, blends the look, touch and feel of Indian bazaars with aspects of modern retail like choice, convenience and quality and Central, a chain of seamless destination malls. Some of its other formats include Brand Factory, Blue Sky,

aLL, Top 10 and Star and Sitara. The company also operates an online portal, futurebazaar.com.

Future Value Retail Limited is a wholly owned subsidiary of Pantaloons Retail (India) Limited. This entity has been created keeping in mind the growth and the current size of the company’s value retail business, led by its format divisions, Big Bazaar and Food Bazaar. 

The company operates 148 Big Bazaar stores, 169 Food Bazaar stores, among other formats, in over 70 cities across the country, covering an operational retail space of over 6 million square feet. As a focussed entity driving the growth of the group's value retail business, Future Value Retail Limited will continue to deliver more value to its customers, supply partners, stakeholders and communities across the country and shape the growth of modern retail in India.

A subsidiary company, Home Solutions Retail (India) Limited, operates Home Town, a large-format home solutions store, Collection i, selling home furniture products and e-Zone focused on catering to the consumer electronics segment.

Pantaloons Retail is the flagship company of Future Group, a business group catering to the entire Indian consumption space.

Why Pantaloons Retail India Ltd. ?

Pantaloons Retail is not just an organization - it is an institution, a Centre of learning & development. We believe

that knowledge is the only weapon at our disposal and our quest for it is focused, systematic and unwavering.

At Pantaloons Retail, we take pride in challenging conventions and thinking out of the box, in travelling on the road less traveled. Our corporate doctrine ‘Rewrite Rules, Retain Values’ is derived from this spirit.

Over the years, the company has accelerated growth through its ability to lead change. A number of its pioneering concepts have now emerged as industry standards. For instance, the company integrated backwards into garment manufacturing even as it expanded its retail presence at the front end, well before any other Indian retail company attempted this. It was the first to introduce the concept of the retail departmental store for the entire family through Pantaloons in 1997. The company was the first to launch a hypermarket in India with Big Bazaar, a large discount store that it commissioned in Kolkata in October 2001. And the company introduced the country to the Food Bazaar, a unique 'bazaar' within a hypermarket, which was launched in July 2002 in Mumbai. Embracing our leadership value, the company launched aLL in July 2005 in Mumbai, making us the first retailer in India to open a fashion store for plus size men and women.

Today pantaloons are the fastest growing retail company in India. The number of stores is going to increase many folds year on year along with the new formats coming up.

The way we work is distinctly "Pantaloons". Our courage to dream and to turn our dreams into reality - that change people’s lives, is our biggest advantage. Pantaloons is an invitation to join a place where there are no boundaries to what you can achieve. It means never having to stop asking

questions; it means never having to stop raising the bar. It is an opportunity to take risks, and it is this passion that makes our dreams a reality.

Come enter a world where we promise you good days and bad days, but never a dull moment!

Our Culture-

Passion for Retail is why we are here.

At Pantaloons Retail, Empowerment is what you acquire and Freedom at Work is what you get. We believe our most valuable assets are our People. Young in spirit, adventurous in action, with an average age of 27 years, our skilled & qualified professionals work in an environment where change is the only constant.

Powered by the desire to create path-breaking practices and held together by values, work in this people intensive industry is driven by softer issues. In our world, making a difference to Customers’ lives is a Passion and performance is the key that makes it possible. Out of the Box thinking has become a way of life at Pantaloons Retail and living with the change, a habit.

Leadership is a value that is followed by one and all at Pantaloons Retail. Leadership is the quality that motivates us to never stop learning, stretching to reach the next challenge, knowing that we will be rewarded along the way. In the quest of creating an Indian model of retailing, Pantaloons Retail has taken initiatives to launch many retail formats that have come to serve as a benchmark in the industry. Believing in leadership has given us the optimism to change and be successful at it. We do not predict the

future, but create it.

At Pantaloons Retail you will get an opportunity to handle multiple responsibilities, and therein, the grooming to play a larger role in the future. Work is a unique mix of preserving our core Indian values and yet providing customers with a service, on par with international standards.

At Pantaloons you will work with some of the brightest people from different spheres of industry. We believe it’s a place where you can live your dreams and pursue a career that reflects your skills and passions.

The Indian retail industry is the fifth largest in the world. Comprising of organized and unorganized sectors, India retail industry is one of the fastest growing industries in India, especially over the last few years. Though initially, the retail industry in India was mostly unorganized, however with the change of tastes and preferences of the consumers, the industry is getting more popular these days and getting organized as well. With growing market demand, the industry is expected to grow at a pace of 25-30% annually. The India retail industry is expected to grow from ` 35,000 Crores in 2004-05 to ` 109,000 crores by the year 2010.

Major Retailers in India-

Pantaloons:

Pantaloons is one of the biggest retailers in India with more than 1000 stores across the country. Headquartered in Mumbai, it has more than 16 million sq. ft retail space located across the country. It's growing at an enviable pace

and is expected to reach 30 million sq. ft by the year 2010. In 2001, Pantaloons launched country's first hypermarket ‘Big Bazaar’. It has the following retail segments:

Food & Grocery: Big Bazaar, Food Bazaar Home Solutions: Hometown, Furniture Bazaar,

Collection-i Consumer Electronics: e-zone Shoes: Shoe Factory Books, Music & Gifts: Depot Health & Beauty Care: Star, Sitara E-tailing: Futurebazaar.com Entertainment: Bowling Co.

Tata Group:

Tata group is another major player in Indian retail industry with its subsidiary Trent, which operates Westside and Star India Bazaar. Established in 1998, it also acquired the largest book and music retailer in India ‘Landmark’ in 2005. Trent owns over 4 lakh sq. ft retail space across the country.

RPG Group:

RPG Group is one of the earlier entrants in the Indian retail market, when it came into food & grocery retailing in 1996 with its retail Foodworld stores. Later it also opened the pharmacy and beauty care outlets ‘Health & Glow’.

Reliance:

Reliance is one of the biggest players in Indian retail

industry. More than 300 Reliance Fresh stores and Reliance Mart are quite popular in the Indian retail market. It's expecting its sales to reach ` 90,000 crores by 2010.

AV Birla Group:

AV Birla Group has a strong presence in Indian apparel retailing. The brands like Louis Phillipe, Allen Solly, Van Heusen, Peter England are quite popular. It's also investing in other segments of retail. It will invest ` 8000-9000 crores by 2010.

Board of Directors- Mr. Kishore Biyani, Managing Director.

Kishore Biyani is the Managing Director of Pantaloons Retail (India) Limited and the Group Chief Executive Officer of Future Group.

Mr. Gopikishan Biyani, DirectorGopikishan Biyani, is a commerce graduate and has more than twenty years of experience in the textile business.

Mr. Rakesh Biyani, Whole time Director Rakesh Biyani, is a commerce graduate and has been actively involved in category management; retail stores operations, IT and exports. He has been instrumental in the implementation of the various new retail formats.

Mr. Vijay Biyani, Wholetime Director Vijay Biyani has more than twenty years of experience in manufacturing, textiles and retail industry and has been actively involved in the financial, audit and corporate governance related issues within the company.

Mr. Kailash Bhatia, Wholetime Director He has over 28 years of valuable experience in the fashion business and has worked with some of the well known companies like Arvind Mills and Weekender.

Mr. Vijay Kumar Chopra, Independent Director V.K. Chopra is a fellow member of The Institute of Chartered Accountants of India (ICAI) by profession and is a Certified Associate of Indian Institute of Bankers (CAIIB). His banking career spans over 31 years and he has served senior management positions in Central Bank of India, Oriental Bank of Commerce, SIDBI, Corporation Bank and SEBI.

Mr. Shailesh Haribhakti, Independent Director Shri Shailesh Haribhakti, is a Chartered Accountant, Cost Accountant, and a Certified Internal Auditor. He is the Deputy Managing Partner of Haribhakti & Co., Chartered Accountants and past president of Indian merchant Chambers. He is on the Board of several Public Limited Companies, including Indian Petrochemicals Corporation Ltd., Ambuja Cement Eastern Ltd. etc. He is on the Board of Company since June 1, 1999.

Mr. S Doreswamy, Independent Director S. Doreswamy, is a former Chairman and Managing Director of Central Bank of India and serves on the board of DSP Merrill Lynch Trustee Co and CEAT Limited among others.

Dr. D O Koshy, Independent Director Dr. Darlie Koshy, a PhD from IIT Delhi and rank holder in MBA headed NID (Ministry of Commerce, GOI) as Director for 2 terms of office prior to which he was the founding Chairperson of Fashion Management at the National Institute of Fashion Technology (Ministry of Textiles, GOI).  He is currently the Director General & CEO of ATDC Network of 58 Institutes / Center’s and two premier campuses of Institute of Apparel Management under the aegis of AEPC (Sponsored by Ministry of Textiles, GOI).  Dr. Koshy received the Delhi IIT Alumni Award for contribution of National Development in 2008. Dr. Darlie Koshy was also conferred with the “Star of Italian Solidarity” one of the highest civilian awards of the Government of Italy.

Dr. Koshy is the author of three pioneering books including the much acclaimed “Indian Design Edge”.

Ms. Bala Deshpande, Independent Director Bala Deshpande, is Independent Director, Pantaloon Retail (India) Ltd. and also serves on the boards of Deccan Aviation, Nagarjuna Construction, Welspun India and Indus League Clothing Ltd, among others.

Mr. Anil Harish, Independent Director Anil Harish, is the partner of DM Harish & Co. Associates & Solicitors and an LLM from University of Miami. He also serves on the board of Mahindra Gesco, Unitech, IndusInd Bank and Hinduja TMT, among others.

Major Milestones- 1987

Company incorporated as Menz Wear Private Limited. Launch of Pantaloons trouser, India’s first formal trouser brand.

1991Launch of BARE, the Indian jeans brand.

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

1994The Pantaloons 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.

1995John Miller – Formal shirt brand launched.

1997Company enters modern retail with the launch of the first 8000 square feet store, Pantaloons in Kolkata.

2001Three Big Bazaar stores launched within a span of 22 days in Kolkata, Bangalore and Hyderabad.

2002Food Bazaar, the supermarket chain is launched.

2004Central - India’s first seamless mall is launched in Bangalore.

2005Group moves beyond retail, acquires stakes in Galaxy Entertainment, Indus League Clothing and Planet Retail. Sets up India’s first real estate investment fund Kshitij to build a chain of shopping malls.

2006Future Capital Holdings, the company’s financial is formed to manage over $1.5 billion in real estate, private equity and retail infrastructure funds. Plans forays into retailing of consumer finance products.Home Town, a home building and improvement products retail chain is launched along with consumer durables format, Ezone and furniture chain, Furniture Bazaar.Future Group enters into joint venture agreements to launch insurance products with Italian insurance

major, Generali. Forms joint ventures with US office stationery retailer, Staples.

2007Future Group crosses $1 billion turnover mark.Specialized companies in retail media, logistics, IPR and brand development and retail-led technology services become operational.Pantaloons Retail wins the International Retailer of the Year at US-based National Retail Federation convention in New York and Emerging Retailer of the Year award at the World Retail Congress held in Barcelona.Futurebazaar.com becomes India’s most popular shopping portal.

2008Future Capital Holdings becomes the second group company to make a successful Initial Public Offering in the Indian capital markets. Big Bazaar crosses the 100-store mark, marking one of the fastest ever expansion of a hypermarket format anywhere in the world. Total operational retail space crosses 10 million square feet mark.

Format of Operation

Format of operation-

Pantaloons

Retail India Ltd.

Lifestyle Retailing

Value Retaili

ng

Entertainme

nt, Leisur

e Sports

Pantaloons

Central

Fashion

Station

aLL MeLA Big Baza

ar

Food Baza

ar

Pantaloons is one of India’s largest organized modern-format retailers and have been promoted by Kishore Biyani.

From our beginning in 1987, the organization have today evolved as one of the leading manufacturer-retailer and are among the pioneers in setting up a nation-wide chain of large format stores in India. They believe that the various initiatives taken by them have played a key role in enhancing the standards of retail in the country. They are an entrepreneur driven, professionally managed retailer focused on meeting the customer requirements for a large component of their spend across fashion, food, general merchandise, home in both value and lifestyle segments. Pantaloons have also entered into partnerships/joint ventures to expand their offerings from home to apparel to household products to durables etc. they believe our focus on customers supported by systems and processes and a committed work force are the key factors that have contributed to the organizations success and will help us scale up as we embark on our strategic growth plan.

The business has grown from one store in Kolkota in 1997, occupying an area of 8,000 Sq. ft to 72 stores, apart from our 22 factory outlets located in multiple cities occupying an aggregate area of 2107608 Sq. ft. Pantaloons focus on the Lifestyle segment through 14 Pantaloons stores, 3 Central Malls, 2 aLL stores, 2 Fashion Station and 1 MeLa store. In the Value segment, they

cater to the masses through our 21 Big Bazaar and 30 Food Bazaar outlets.

They believe that managing customer expectation by offering them all the requirements for their entire family under one roof is the key to being a successful retailer, and hence have built our business model around ‘Family focus’ rather than ‘individual focus’. Pantaloons believe addressing the family attracts more customers into the store.

Pantaloons retail a range of branded and Private Label apparel, footwear, perfumes, cosmetics, jewellery, leather products and accessories, home products, books, music and toys in our stores. To complete the idea of a family store, besides garments, we also retail household items, consumer durables, home furnishings, apart from food and personal care products. This is complemented by cafes, food stalls, entertainment, personal care and various beauty related services. Promotions and events are an integral part of our service offering to our customer, which helps us create a unique shopping experience.

Pantaloons’ Exclusive format includes-

1. Pantaloons: Lifestyle products under Private Labels and third party brands.

2. Central: Seamless mall providing the customer with a wide range of lifestyle products across multiple national and international brands.

3. Big Bazaar: Value retailing with a range of products from apparel, toys, accessories, consumer durables to

household products and furnishing.

4. Food Bazaar: Food and personal care products including dry groceries and FMCG products.

Pantaloons believe their offerings provides to our customers is a unique shopping experience, comprising of a vast range of lifestyle and value retail products, mix of retailing formats coupled with the facility of entertainment and leisure.

Pantaloons loyalty program, called ‘Green Card’ in our format Pantaloons, currently has 219989 members as on August 31, 2005. The Green Card programmed accounted for about 31% of our sales in Pantaloons for the year ended June 30, 2005. We offer our Green Card holders rewards points on their purchases, special offers and discounts, and invitations to exclusive events and promotions.

They have four subsidiaries and have two joint venture entities supplementing the business.

In the initial stages the organizations had small format outlets branded Pantaloons Shoppe, which were franchise operations. Realizing the problems associated with franchise model, they decided to have their own retail outlets. They launched their own retail store “Pantaloons” in 1997. They also launched Big Bazaar- a hypermarket with over 170000 products as the first offering in value retailing segment. Food is the largest basket in terms of household expenditure, as a logical extension they launched their new format Food Bazaar. They have introduced the concept of seamless malls in India through their new format ‘Central’. Recently they have launched

new retail formats; aLL, Fashion Station and MeLa.

Pantaloons-‘Fresh Fashions’Started in 1997 through one 8,000 square feet store in Kolkata, Pantaloons is the first organized departmental store format targeting the Indian middle class and upper class customers across age and gender. The focus is largely on apparels and accessories and covers the entire family. They offer a wide variety of product range including trousers, shirts, casual wear, western and ethnic wear for women, children’s clothes, accessories, jewellery. They also provide a combination of private label and third Party Label.

Private L a bel s - “Pantaloons” is life style retailing format. The objective is to offer differentiated products not available elsewhere. The focus is on Private Label products and fashion at affordable prices. The antecedent of the Company lie in garment and fabric manufacturing and trading, this ability to understand the apparel business has translated into active and strong Private Label offering contributing to 77% of our total apparel revenues in Pantaloons in FY 2005.

Few o f our In itial Priv ate Labels in clud es;

Private label Year of launch Category

Pantaloon trousers 1987 Mens Wear

Bare Jeans 1991 Jeans, shirts, knit wear, gaberdines, jackets and other

accessories

John Miller 1995 Shirts

Shrishti 1998 Ladies wear

Scotsville 1999 Winter wear- sweaters, cardigans and blazers

Annabelle 1999 Ladies western wear

Ajile 2000 Sports wear

The other Private Label in the apparel segment includes RIG, Euforia, JM Sport , Akkritti, Ghagroos, Arabesque, Honey, Chalk, F, Lombard.

An intensive Private Label offering requires a proactive and innovative design team. To fulfill this objective a Design Studio was created at Mumbai. They have a design team comprising of 35 members, all qualified graduates form National Institute of Fashion Technology (NIFT), National Institute of Design (NID), Nottingham Trent University, UK (NTU) and other institutes. The team has a combination of senior designers and new recruits providing a mix of experience and youth. In addition to conceptualizing designs for apparels, the team also designs and develops logos, labels and tags. Presence of a dedicated design team has resulted in faster introduction of new Private Labels as well as ensures that all existing Private Labels undergo frequent refurbishment.

The organization has brought to India, Underground Music Movement (UMM) a brand licensed from Moda & Musica SEM of Italy. They have exclusive retail license for international brands like Popeye and Disney. They have acquired 49% of the equity share capital in Planet Sports Private Limited. Planet Sports, through its wholly owned subsidiary Supreme Trade Links Private Limited which is the sole franchisee of the UK-based Marks and Spencer in India. Planet Sports also holds exclusive distribution licensing rights for brands like Wilson, Speedo. It has six Mark and Spencer and 25 Planet Sports stores in India.

Big Bazaar- ‘Isse Sasta aur accha kahin nahin’

On October 12, 2001, they launched ‘Big Bazaar’ as the offering in the value retailing segment. By removing inefficiencies from the distribution chain they are able to unleash attractive savings which are passed on to the consumer. Big Bazaar is India’s first hypermarket in the discount store format. Big Bazaar provides more than 2,00,000 items- food, grocery, utensils, kitchen needs, home needs, bath needs, toys, stationery, electronics and white goods which are sold at a discount to the maximum retail price. Price is the principal value proposition at these stores.

A big driver at Big Bazaar is the product variety. This is achieved by selling a wide range of products and through the “Shop-in-Shop” format. As a result, a typical Big Bazaar comprises shops that stock medicines, optical accessories, camera rolls, bakery products, dry fruits, crockery, glassware, health and beauty products, ladies accessories, electronics, infant necessities, watches, clocks, computer accessories, food and beverages, stationery, readymade garments, household appliances, home furnishings, luggage. They believe this is a win- win situation as the customer is assured of product availability, the shop owner can benefit of the infrastructure and they enjoy assured income without needing to stock inventory. Also the Shop-in-Shop offering is able to increase the customer traffic into the stores. The Big Bazaar has been positioned to the customer as a place where the customer can shop for each and everything for which it goes to a market.

Gold Bazaar- ‘Sasta bhi shudh bhi’The organization have opened ‘Gold bazaar’ within Big Bazaar in 2002, they foray into gold retailing. Gold Bazaar

offers various advantages like no weight reduction on exchange, transparent and fixed making charges, purity check through Carat meter, certificate by World Gold Council, 100% free insurance against theft, burglary and loss by National Insurance Company with every product, no-questions asked 15 day return policy and free life time maintenance of the gold jewellery. Gold Bazaar operates as a part of Big Bazaar.

Food Bazaar- ‘Wholesale prices

The organization ventured into food retailing with Food Bazaar in April 2002. It began as a part of Big Bazaar and now operates as standalone outlets in addition to being part of Big Bazaar. Food Bazaar provides a wide product range from fresh fruits and vegetables to FMCG products and ready-to-cook products. It stocks about 8,000 to 12,000 SKUs per location. Food Bazaar’s core concept is to create a blend of a typical Indian market and International supermarket atmosphere with the objective of giving the customer all the advantages of Quality, Range and Price associated with large format stores. Food Bazaar offers the Indian consumers convenience, cleanliness and hygiene through pre-packed commodities while retaining Indian’s preference of "See- Touch- Feel" created by displaying products in the open at competitive prices. Food Bazaar also provides home delivery services to the customers.

Central- ‘Shop, Eat, Celebrate’ In the heart of the city’Central is the second offering under the lifestyle format. Central is a seamless mall. The concept of seamless mall is relatively new to India and Central is a pioneer of this

format. The design of the mall does away with in-between walls and Shop-in-Shops thus offering customer’s unobstructed shopping experience.

The first Central opened in Bangalore on May 14, 2004. Located in the heart of the city the mall is spread over 125000 Sq. ft. across five floors and provides customers with a wide array of facilities ranging from shopping, eating, leisure and entertainment. The mall allows customers to choose from amongst a range of brands in apparel, toys, books, music, sports, lifestyle accessories and more under one roof. Central also has a Food Bazaar, food courts and restaurants. The second Central was launched in Hyderabad in November, 2004 covering an area of 216000 Sq. ft. In April, 2005 the third Central was launched in Bund Garden, Pune covering an area of 137000 Sq. ft. Central provides a platform to showcase in house labels amidst other national and international brands thereby improving brand visibility.

Fashion StationA thematic store, Fashion Station is an attempt to offer current fashion products to the mass market. The organization believe with increasing media penetration and a proliferation of television channels some of which cover fashion extensively, the average Indian is being steadily exposed to bolder and more contemporary fashion. Fashion Station is positioned to meet the fashion requirements of this growing number of customers.

They opened the first Fashion Station opened in Mulund, Mumbai in March 2005. Spread over 25,000 square feet,

the store houses a mix of Private Labels sold in Big Bazaar and Pantaloons. These are backed by the requisite fashion accessories and appropriate footwear, which lends an integrated feel to the store and meets the entire fashion requirements of a customer. The second Fashion Station has been opened in Ghaziabad which is spread over 15,000 Sq. ft.

aLL-‘A little larger’aLL is our latest format in the Lifestyle retail segment. aLL is the exclusive store dedicated to the fashion needs of both plus size men and women which has been launched as a single dedicated stand- alone store. It was launched in Vashi, Mumbai on July 16, 2005 and covers an area of 650 Sq. ft and at Andheri on August 21, 2005 covering an area of 2,000 Sq. ft. The ‘aLL’ store houses a wide range of ready-to-wear fashionable clothes and accessories that are otherwise not easily available for plus size customers. The store has a wide collection to select from - Western wear, Indo-western and Ethnic wear in both formal and casual categories. Matching accessories like belts, ties, and handbags are also available. To complement the collection, the store layout is designed keeping in mind the requirements of its customers. The sales staffs are trained to provide a comfortable shopping experience to this new segment of customers.

MeLaMeLa marks the entry into the home solutions market through our subsidiary Home Solutions Retail (India) Limited. With a record number of houses being bought annually in India and the organized retailing being largely absent in this segment, home solutions is a logical expansion of the retail business. Under this business, they cater to the value and lifestyle segment through existing

and new formats. MeLa provides a complete range of home furnishings, besides also offering a range of services that includes tailoring facilities and customized home solutions by in-house interior designers. The company currently has one MeLa store in Mumbai.

Pantaloons Compet i t ive Strengths- The following are our key strengths, which we believe, enable us to compete in our business:

Brand Equity an d early mover advantage

Pantaloons is one of India’s leading retailers with presence across multiple formats and stores across large and medium cities across India. They successfully introduced their hypermarket format through Big Bazaar, introduced the concept of seamless malls through Central, launched Fashion Station to offer fashion apparel and accessories to mass market buyers in a theme based style, opened aLL an exclusive lifestyle store for plus size people and continue to invest in new concepts and formats to capture a greater share of the consumer wallet, either directly and through our strategic investments.

Entrepreneur led, professionally managed b y an experienced te a m

Pantaloons have an experienced professional management team led by their Promoter Mr. Kishore Biyani, who is one of the leading entrepreneurs in the retail sector in the country and has received various awards over the years, with the recent one being the Retail Face of the Year, 2005. Several of our management team members have experience of managing other retail / consumer facing organizations. They have thus been able to complement

rapid expansion with the ability to create adequate systems and processes.The management team is complemented by a committed work force. Pantaloons’ Human Resources policies aim to create an engaged and motivated work force, which is essential for success in any service oriented industry such as their owns.

Project execut i on and operati o ns capabili t ies

Pantaloons have created a project team which enables us to identify and roll out properties quickly and seamlessly. This has allowed us to grow from 561000 Sq. ft. in 2003 to 2107608 Sq. ft

Pantaloons’ operations team facilitates new stores to be opened quickly and integrated into their system and provides their customers with the similar experience across all the stores, and also enables their stores to quickly scale up to meet growing customer requirements.

Vast ra n ge of l i f e sty l e a n d value r e tail prod u cts an d s e r v ices

Pantaloons’ merchandise ranges across apparel, accessories, food products, home and kitchen products, dry and fresh groceries, consumer durables and non durables with over 270000 SKUs, which are complemented by their services offerings. Presence in both Lifestyle and Value retailing enables them to cater to a large segment of the population, besides benefiting from the synergies which exists between the two segments.

Pantaloons offer their customers a variety of national

and international brands as well as our Private Label brands under one roof.

Strong fo c u s on s y st e ms and pro ce sses

Pantaloons focus on systems and processes. They are in the process of revamping their current IT setup to implement more advanced applications. Automated core transaction systems have been developed in house and have evolved with their business. Existing business applications handle all store operations such as billing, customer loyalty programmes, store inventory, management. Back office processes are also computerized which support procurement, supply chain logistics, ware house management and inventory control. All the locations are connected through company-wide VPN (Virtual Private Network).

Business planning happens through a high end planning tool called “Cognos Planning”. Oracle financials form the backbone of accounting functions and gives online real-time access to the Company’s overall financial position at any given point in time.

Pantaloons believe this will help them as we embark on their growth strategy and enhance to reach with their customers and help us provide them a consistent brand experience across all stores.

Strong distribution and logis t ics network and supply chain

Pantaloons have created a strong distribution and logistics network, with their 13 Distribution Centre covering 260000 Sq. ft, handling over 100000 SKUs, and working 24 hours a day and 7 days a week.

The distribution and logistics set up is networked and are

on line allowing them to deliver merchandise to the store within 24 hours of receipt / generation of auto replenishment order, which has helped them optimize in- store availability of merchandise. They believe their existing Distribution Centres, which have been designed to scale up, will be able to meet their growth requirements as we expand the number of all stores.

The above initiatives have helped them in improving the efficiencies of their supply chain, which they believe is critical for any retailer. These aim at meeting the conflicting requirements of reducing their inventory whilst ensuring availability of products at all stores as per customer needs, as well as reducing our operational costs.

Large base of l o yal c u stomers

Pantaloons had 42280682 customer entries in our stores in the year ended June 30, 2008. They believe that the emotional connect that they have been able to create good relationship with their customers through service offering and special promotions has helped them convert many of them into loyal customers.

Pantaloons’ Retail Strategy

Pantaloons’ Strategy-

Pantaloons intend to maintain and enhance their position as a leading retail entity through continued focus on the Indian market and investing further in their competitive strengths to grow their business. The key elements of Pantaloons business strategy include:

Incr e a s i ng offeri n g s to m eet a hi g h er po rtion of t h e c on sum e r s p e n d

Pantaloons intend enhancing there share of the customers’ monthly spend by launching new formats or adding categories to their existing product range. They intend to implement this by launching such formats directly or by way of strategic tie ups in areas where they have the opportunity to tie up with an appropriate partner.

I n cre a s i n g p e n etr a tion i n existi n g cities a n d exp a n d ing their re a c h a cr o ss t h e c o u n try

Increasing their penetration in existing cities with a larger number of stores, increasingly of larger size, will enable us to penetrate into new catchment areas within these cities and optimize their infrastructure.Enhancing they reach to cover additional cities; will enable them to reach out to a larger population. This will help to provide a platform to domestic and international brands wanting to reach out to domestic consumers with the same profile as their customers.

E n h a nci n g mer ch a n d ise width by a d di n g pr od u ct c a tegories

Consumer’s tastes are shifting and the propensity to spend on new categories of merchandise is increasing along with needs for new services.

Pantaloons’ focus will be to add on such new categories in their stores along with developing existing categories to increase their share of the spend of not only existing customers, but also acquire new customers.

Int r oducing n e w b r ands and developing more Private Labels to offer a better dep t h in e a ch

cat e gory Pantaloons continuously focus on enhancing the depth and width of their merchandise. Their Private Label and private brands initiative is part of such focus and offers us a differentiating factor as compared to their competition at the same time helps us enhance margins.

They had a tie up with Popeye and Disney wherein they are their exclusive retail licensee for India. They continue to evaluate such opportunities for tie ups with national and international brands, which can be introduced in India through their stores.

Utilisi n g ec o nomies o f sc a le as they g r o w i n s i ze and ex p and their re a ch

Pantaloons believe that their existing corporate infrastructure and software systems have been designed for a higher scale of operations than their current size, and can help them grow with out the need to significantly increase costs.

They are having in place their distribution and logistics infrastructure, which can handle larger business volumes at marginal addition to costs. Higher business volumes will also improve their negotiating powers and help us get further economies of scale in their buying with opportunities of incremental margins.

En h a n cin o p er a ti o n a l e f ficie n cies t h ro u g h systems and p rocesses

They are having a consistent focus on enhancing their operational efficiencies and monitor key operational parameters on an ongoing basis using concepts such as gross margin return on floor space, gross margin return on labour and gross margin return on inventory to improve

their productivity on space, labour and inventory.

Pantaloons benchmark of the stores on performance parameters on a historical as well as on a comparable basis to seek areas for improvement to reduce their operating costs and enhance our productivity levels.

E n h a nci n g h u ma n c apit a l The aim at recruiting the best talent available in a cross section of industries, identifying fresh talent, grounding them in the value system and providing opportunities for growth. They follow a Balanced Score Card approach which deals with the individual aspirations/goals and links them to the overall company strategy.

Keeping in mind their needs and the industry’s future requirement of professionals and given the lack of educational facilities plus a gap between demand and supply in the retail industry, they set up a two year Post Graduate Programme in Retail Management in collaboration with Wellingkar Institute of Management Development & Research, a Mumbai based management institute.

Processes and support

functions

(1)C a te g o ry M a n ag e m e nt : Pantaloons have employed the concept of category management in our day-to-day merchandising function as against the traditional brand management merchandising practice followed by most retailers. Category managers look at sales and margins of each brand in a category. The whole idea of category management is to create products across length and breadth of a category at different price points, fabrics, design, shape, seasons, colour and size.

Functions under category management can be broken into:

Merchandising• The Category manager develop a merchandising

strategy for the category taking into consideration customer profile, classification, resource structure, vendors, fashion trends, items and price points. The category manager visit stores regularly to check assortments of merchandise displays, stock levels and old season merchandise, consult with team leaders and sales people on problems and suggestions.

Sourcing / Purchasing• The category manager controls quantities to be

purchased as per the sales forecast. The purchasing is done based on range plan made for the season and re-orders been placed based on sales and stock levels. The Category Manager reviews the actual sales versus planned sales and source the material based on feedback from storefront.

Logistics• Category manager ensure that goods are dispatched

in right quantities and at right time to reach stores with sufficient time in hand to promptly cater to customer demands.

Promotions• Category manager plans promotions / brand or

product building schemes. The category manager identifies slow movers and also disposal plan for the same.

(2)Visual Merc ha ndis i ng -In modern retail, we believe that visual merchandising is key to encourage a customer to purchase the products. Visual merchandising involves store window, store directories, in- posters, unit top poster / visual, placement of products, highlighting products in the store. Pantaloons use visual merchandising skills to present their merchandise at its best, in order to appeal to the customer. This is a critical in store activity with their visual merchandising team deciding on the theme as well as the manner in which the merchandise is proposed to be displayed across their stores nation wide.

(3)S up p ly C h a in m an ag e m e n t- Availability of products at the right time and at affordable cost is of utmost importance in retail business. Supply Chain management ensures this. The diverse requirements of different retail formats in which they operate requires a model which is flexible enough to meet the diverse requirement of their various formats; incase of Pantaloons- the time to market is of paramount importance whereas for Big Bazaar – the cost to market is crucial. Keeping this in mind, we have created their own supply chain and logistics model. The Supply Chain function involves vendor management, quality assurance and transportation.

Vendor management assumes critical importance in retail business where one has to deal with multiple products. They have in place a robust vendor management system. Vendors are identified all over the country and strategic relationships are developed. A transparent vendor rating system rates each vendor across a variety of parameters. Regular interaction and rating system ensures that the vendor remain in sync with the Company’s goals and targets. Improvement in communication with vendor and vendor development initiatives like standardization of norms for size and fits, and implementation of a vendor rationalization program enable them to increase the number of “A” rated vendors by over 80 %. The Supply chain department has been awarded the ISO 9001:2000 certificate by Det Norske Veritas.

The quality assurance function has been strengthened

with the implementation of internal quality control measures. Quality hubs have been established at zonal level with a view to proactively prevent quality defects.

They have one central warehouse and 12 regional warehouses. These warehouses are located in Pune, Delhi, Ghaziabad, Nasik, Ahmedabad, Bangalore, Hyderabad, Gurgaon, Mumbai, Nagpur and Kolkata.

In case of lifestyle retailing, the entire apparel stock is generally delivered to the central warehouse. The central warehouse then services individual stores. In addition to central buying, there is restricted local buying. A unique aspect of the supply chain model is the factory outlet. Its the last level of supply chain model which ensures that slow-moving merchandise are disposed off on a regular basis.

While pantaloons outsource intercity transport of goods to third parties, intra city movement form warehouse to the stores is handled by the own fleet of vehicles. For lifestyle retail formats, they use the services of logistic solution providers in order to deliver products on time to the stores. For value retail, low cost transport arrangements have been secured to optimize transportation cost.

Warehouse operations have been streamlined through the standardization of racking system, scientific layouts and implementation of automatic replenishment system.

Pantaloons’ C o rporate Functions

1. Information Technology2.Human Resources

3.Retail Information System4. Internal Controls5.Measurement of Customer Satisfaction

1. Information TechnologyA key element of the corporate functions is the Information Technology strategy and set up. They are in the process of revamping their systems to address the growing demands of the customer and to have a seamless flow of activities.

The IT vision is to address multiple aspects like connectivity, infrastructure, security, real time information and tools for financial management amongst others. The IT strategy has been framed keeping in mind the growth in formats, chains, product categories and locations.

The most rudimentary issue is that of connectivity, it means ensuring seamless flow of data to the head office from regional offices, zonal centre, stores and warehouses. All locations are connected through company wide virtual private network, stock and sales data from each store is consolidated on a daily basis allowing close monitoring and quick decision-making.

At present, business planning occurs through a high-end planning tool called ‘Cognos Planning’, while data analysis is undertaken through ‘Cognos Powerplay’, a highly analytical platform that enables data to be drilled down to the lowest level. ‘Oracle Financials’, the backbone of accounting function, is the integrator between planning, buying, moving, selling and analysis functions, and gives on-line real time access to the company’s overall financial position at any given point in time.

St r a t e gic Dir e ction The organization is in the midst of upgrading the IT set up with a strategic relationship with SAP, business software solutions provider. They intend to implement my SAP Business Suite, SAP Advanced Planning Tool for Merchandise and Assortment Planning and SAP Apparel and Footwear Solutions.

The organization also in the process of installing Closed Circuit Television at stores (CCTV) , using the virtual private planning, live feeds from the CCTV’s will be relayed to the head office and the zones. This will compliment the video conferencing facility that already exists between the stores and the head office. To enable quicker decision-making and reduce the lag time, different needs of different users are being addressed through the creation of a personalized ‘dash-board’(a graphical personalised interface through which one can access information available in the central database). Individual users will be able to receive alerts based on their profiles and categories on various aspects related to stock, sales etc. Graphs pertaining to key performance areas will be generated enabling better control and informed decision-making.

They had begun to implement fully a integrated transaction system, which would accumulate accurate real time data as each key function of the organization performs its day-to-day operations, this would include merchandise management, procurement, manufacturing, warehousing, logistics, inventory management, store operations and customer management. A data warehouse and Business Intelligence Tool are in the process of being installed, advanced corporate planning tools that facilitate decision

making in budgeting, forecasting, space planning and inventory planning are being put in place.

2. Human ResourceIn a business where individuals comprise the principal asset, the structure of the people pyramid influences the quality of knowledge captured, the speed with which decisions are made and the morale of the organization. Human Resource is one of the critical support functions and forms another key element of the corporate backbone. Pantaloons have more than 8000 employees as a very young and energetic organization with average employee age being 30 years.

They believe that service is the core philosophy and people are the most important resources. The organization attempt has always been to create an environment where the employees feel pride of being called ‘Pantaloonians’.

Human Resource philosophy is driven through our ‘The Pantaloons People Management System’.

The Pantaloons People Manag e m e nt S y st e m Pantaloons People management system is built on 5 pillars of people based growth:

Culture Building. Performance Management through Balanced Score

Card. People Processes. Management Processes. Leadership Excellence.

Organization Structure The organization is headed by our Managing Director. The

employees follow an inverse pyramid structure; as a result decisions are taken closest to the point of customer action. Sales executive are encouraged to think customer first. They are empowered to run their respective departments like ‘small business owners’.

Inverse Pyrami d Structure

Perfo r m a n ce Manag e m e nt: A p praisal, Re w ar d s and R e cognit i on The organization’s Compensation philosophy is ‘Pay for Performance, promote for potential’ and is designed to meet the following key objectives:

Attract and Retail Qualified Employees Externally Competitive Performance based pay Internally Equitable Legal Compliance

Department

HR Manager

-organizational planning

-systems building-Performance mgmt.

-Personal enhancement-Competency mapping

& building-Compensation policy

Sales &staff support

Department Manager

Store Mgr., Buyers, Merchadise Mrg,

RM, GM

Board

The organization’s compensation policy is performance based and they believe it is competitive with industry standards in India. The compensation packages are adjusted annually based on industry salary correction compensation surveys and individual performance. From time to time employees who have met or exceeded performance standards are awarded bonuses.

The employees post retirement benefits include a provident fund and a gratuity. Both the provident fund and the Gratuity have been approved by the relevant statutory authorities. They have set up a “Pantaloon Foundation”- an employee welfare fund with effect from August 2004. The fund provides financial assistance in all cases wherein the employee seeks the Company’s financial support in medical emergency for him/herself or their families. The contribution to the fund is voluntary.

E m plo y ee Insu r ance Pantaloons’ provide all the employees with group life insurance. They also provide medical insurance coverage for employees who are not covered under ESIC (Employee State Insurance Corporation) benefit which includes hospitalization benefits.

Recrui t m e nt a n d Selection The organizations’ recruitment takes place through any of the following option or combination of this option:

• In-house data bank• Walk-in advertisement

• Internal Referrals• NGO’

The selection processes are defined to evaluate the skill sets required for each job and also to evaluate the fitment to the various formats of retailing.

TrainingThe organizations place special emphasis on the training of the employees to enable them to develop their skills to meet changing retail technology and to provide efficient and effective customer services.

The Company has a well defined Learning & Development (L &D) team that is responsible for training at all the levels across the country. The L & D team focuses on primary and secondary research into various aspects of retail and assessment of training needs across Knowledge, Skills & Attitude areas at all levels.

'Prarambh' for Induction and 'Guru-School' for Trainer Development are a couple of programs created and disseminated by the L & D Team from last couple of years.

They are also in the process of establishing a training centre at each zone that will be equipped with extensive and up-to-date facilities and which offers relevant training programmes.

Retenti o n Strategy Pantaloons strive to foster a feeling of well-being in our employees through care and respect; they have several structured processes including employee mentoring and grievance management programmes which are intended to facilitate a friendly and cohesive organization culture.

Off-site activities are encouraged to improve inter-personal relationship. They also acknowledge the efforts exerted by our employees by organization an annual celebration called ‘Pantaloons Day’ where we recognize employees who have shown exceptional talent, sincerity and dedication. They have implemented an employee suggestion programme called ‘Prerna’ wherein the employee can give their suggestions. Every quarter the best suggestions received per zone per format is awarded prize called “Golden Cap”.

3. Internal controls and Risk ManagementThe company uses the services of Ernst & Young for process audit and risk management and the scope of their work covers all the company’s formats i.e. Pantaloons, Big Bazaar, Food Bazaar and Factory Outlet. The objectives are to:

Gain an understanding of the various Business Processes

Identify the strengths and weaknesses in the existing systems and procedures

Review use of technology in the function Identify key business process risks and review the

adequacy of the controls and mitigate them

Test the effectiveness of controls the most significant risks and provide recommendations to improve controls

Identify potential areas for improving process efficiency

Broadly develop on improvement portfolio and raise the level of awareness of how business is impacted by inadequately controlled risks inherent in the business process.

Internal audit of the each store is also undertaken by an independent audit firm on monthly/quarterly basis.

4. Measurement of Customer SatisfactionPantaloons have devised a model called CEM- Customer Experience Management Model to measure customer satisfaction in the stores. The Customer Experience Management Model focuses on the customer’sexperience at every touch point in the store ranging from their first impression of the store, to their experience at the trial rooms, toilets, with our staff through various processes such as billing and exchanges. They have hired a research agency called MACRO-Market Analysis and Consumer Research Organization. This agency sends people who are called ‘Mystery Shoppers’ to visit the stores and then their experience is documented on a feedback form which is then sent to head office. Based on the feedback formed analysis is done and the stores are given scores. This allows us to track performance on customer expectation at overall, format and store levels, determine critical improvement areas are all levels and also identify opportunities that they can leverage upon.

Besides, they have also started an in-house initiative called ‘Pragati’ whereby one person from the head office operations team visits the stores and observes the stores with respect to certain pre-parameters like store exteriors, baggage window, customer service, store ambience etc. This activity is done on a quarterly basis and three best stores under each format are announced. This encourages the stores to improve the efficiency of their store operations.

Future Growth Plan of the Company

Future Growth of plan of the Pantaloons-

The retail industry in India is currently growing at a great pace and is expected to go up to US$ 833 billion by the year 2013. It is further expected to reach US$ 1.3 trillion by the year 2018 at a CAGR of 10%. As the country has got a high growth rates, the consumer spending has also gone up and is also expected to go up further in the future. In the last four year, the consumer spending in India climbed up to 75%. As a result, the India retail industry is expected to grow further in the future days. By the year 2013, the organized sector is also expected to grow at a CAGR of 40%.

Future Group announces its plan to double the number of its flagship multi-brand ‘Pantaloons’ stores in the next three-four years. The expansion of new stores would embark on an image makeover for the apparel and accessories chain to target youngsters. Group Company Pantaloons Retail India, which opened its 50th store spread across 31,109 sq ft in New Delhi, plans to add another 50 Pantaloons stores across metros and smaller cities. Such landmark expansion plan of the retail chain would be a new sunshine opportunity for the signage companies dealing with in-store displays and others.

The retail business is expected to end 2010 with revenues of Rs 14,000 crore, followed by the FMCG and consumer durables entity with Rs 1,800-2,000 crore and the fashion venture with Rs. 2,000-2,200 crore, according to the Future Group’s own projections.

Once the restructuring is complete, there could be a second round of changes, though this depends on the success of the group’s talks with a foreign retailer for a JV. If they indeed succeed, Pantaloons Retail will spin off two of its biggest revenue grossers in retail—Big Bazaar and Food Bazaar, into a new entity, to be called Future Value Retail. The two formats constitute over 55% of the turnover of the country’s biggest retailer.

Pantaloon Retail is currently believed to be in talks with Carrefour, the world’s second-largest French supermarket group, for a JV in India.

Besides Big Bazaar, Future runs formats such as Food Bazaar, KB’s Fair Price shops, Pantaloons, Central, Home Town, eZone, Aadhaar and Brand Factory. Group officials said sales from their own private FMCG brands are comparable to a mid-rung Indian FMCG company.

Future is launching private brands in categories like toothpaste, soap, dairy, detergent, beverages and shampoo, among others. The group sells consumer electronic products under the Koryo brand name. The group’s fashion brands include John Miller, Bare, Indigo Nation, Urbana, Scullers, Rig, Ajile, DJ&C, Knighthood and Annabelle.

Sales Promotion

Sales Promotion

Sales promotion is different promotion, Sales promotion refers to those marketing activities other than personal selling, advertisement and publicity, which stimulate consumer purchasing and dealer effectiveness, such as displays, shows and expositions, demonstrations and various non-recurrent selling efforts not in the ordinary routine. Its purpose is to increase the desire of salesman, distributors and dealers to sell a certain brand and to make consumers more eager to buy that brand. This includes sales activities which supplement both personal selling and advertising.

Sales promotion is only a part of promotion. Promotion includes sales promotion, advertising, personal selling etc. Promotion helps to make all other marketing activities more effective and efficient, but sales promotion helps only to sales activity. Sales promotion may be done with the help of tools like displays, exhibitions, free sample coupons, premium etc. Sales promotion acts as a link between advertisement and personal selling.

To sum up, promotion is to make the demand inelastic, while there is change in the price. So promotion must stimulate the consumers to buy more.

Effects of Promotion

The present day market is very competitive due to the large number of rivals and substitutes. With the help of promotion producer must create product differentiation in the minds of consumers.

Promotion is very essential to communicate the use of the product and the nature of the product to consumers and middlemen.

Now days most of the consumers market their products in wider area and the consumers are also very large in number. In such cases personal selling alone cannot be used and so all the steps for promotion are to be followed.

During the periods of depression it is essential to maintain at least some minimum market. Therefore it is very essential to use promotion.

Major tools used in Promotion –

Free Samples. Premium or Bonus Offer. Exchange Schemes Price-off offer Coupons Fairs and Exhibitions Trading Stamps Scratch and win offer Money Back Offer.

Objectives of Sales Promotion-

i) To compare usage across exclusive and multi brand outlets.

ii) To explore rationale behind such activities by examining consumer behavior.

iii) To pose challenges ahead.iv) To attract new customers and retain the

existing ones.

Methodology used by Pantaloons-

Tie-ups with major Hotels, Restaurants and Pubs (e.g. Sayaji Grand, Princess Palace, Rajdhani, E=MC2) of Indore in Balter System through Standee and Tent cards.

Promoting sale activity through tie up with major organizations like- AirTel, Satyam Multiplex, Gitanjali Jewels, Talwalkers Gym, Barista, Baskin and Robbins, US pizza, Ziva, E-Zone, INOX Multiplex, Tanishq, and etc.

Promoting through distribution of discount vouchers of hotels and redeemable vouchers for Gitanjali Jewels of Rs. 500, 1000 and 2000 while shopping with pantaloons.

Pantaloons also attract customers through organizing event management like Femina MISS INDIA contest in the store.

Promoting Through Mall Branding at Treasure Island.

Promoting through ARAMEX courier packets on the pasting of Pantaloons sandwiches label of offer and Pantaloons’ T-shirts distribution to staff members on road show.

Promoting Sales through Hording at Pause areas and Road poll Kiosk sandwiches in highly pose area of Indore like- Vijay Nagar Square, Tower square, MG road, Annapurna, Airport road etc..

Providing corporate discount voucher to all major corporates in Indore.

Promoting through SMS blast to more than 10 lakh Indore Customer database.

Promoting in major societies of Indore like Saket Nagar, Manorama Ganj, AB road and etc. through No Parking sandwiches and Leaflets and Posters.

Promoting Sale through organizing contests like-

SMS dikhao and Inaam pao for Airtel customers and also get a chance to win Videocon DVD player.

Special shopping with pantaloons and get chance to win Gitanjali Jewels Pearl set.

Get shopping with pantaloons and get a Airtel SIM Card connection free.

Competitors of Pantaloons

Major Competitors of Pantaloons- Vishal Retail

Vishal Retail is a leading retail company involved in the business of manufacturing and retailing of readymade garments (apparels), non-apparels and FMCG products. The company is expanding its operations at a rapid pace and focuses on tier II and III cities in the country. Its manufacturing facilities are located in Gurgaon, Haryana, Dehradun and Manesar, with a capacity of 5,000 garment pieces per day in each unit. The company was a pioneer in discount retailing and had opened India’s first hypermarket in Delhi. The company has about 135 showrooms in 87 cities and 20 states in India.

TATA TRENT LimitedTRENT Limited is among one of the major retailers in India, operating a chain of retail stores under the brand name Westside . The Westside stores offer apparels, cosmetics, perfumes, handbags, footwear, household accessories, lingerie and gifts for men, women and kids. The company has about 31 Westside stores located in major Indian cities including Mumbai, Bangalore, Hyderabad, Jaipur, Chennai, Pune, Delhi, Noida and others. Trent also operates discount hypermarkets under the brand name Star Bazaar. Star Bazaar offers a wide range of consumer products including staple foods, beverages, health and

beauty products, vegetables, fruits, dairy products, consumer electronics and household items at reasonable and economical prices. The company’s subsidiaries include Trent Brands Ltd, Fiora Services Limited, Satnam Developers and Finance Private Ltd and Nahar Theatres Private Ltd. Trent holds about 79% stake in Landmark Limited, a retailer of books, toys, stationery and music. As of March 31, 2008, Landmark Limited had 18 stores.

Reliance Retail LimitedReliance Retail has plans to cover 1,500 cities and towns across India with 5,500 outlets in formats such as convenience stores, supermarkets, specialty stores and hypermarkets. The company plans to have 14 verticals while putting more focus on food. It has planned investments of USD5.5-6.0bn (USD2.5bn equity). Investment of USD750 mn has already been cleared by the board. The company expects revenues of USD20-25 bn and total retail space of 100 mn sq ft by 2010. Also, the company plans to employ 500,000 people. Reliance Retail will form a joint venture with leading European supply chain specialist Wincanton for its food and grocery and hypermarket businesses. The company will open 50-60 'i-stores' in the next 18 months and plans to open 150 Reliance Digital stores by 2011-12.

GlobusLaunched in January 1998, Globus is part of the Rajan Raheja group. The company opened its first store at Indore in 1999, followed by the launch of its second store in Chennai (T-Nagar). Soon to follow was another store in Chennai located in Adyar. The flagship store in Mumbai opened on 1st November 2001 followed by a

swanky new outlet in New Delhi in South Extension Part-2.

The sixth & seventh stores opened in Bangalore in Koramangala & Richmond Road respectively. The eighth store opened in Ghaziabad at Shipra Mall and was followed by the ninth at Kalaghoda in Mumbai; tenth in Thane and eleventh in Ghaziabad. The twelfth, thirteenth, fourteenth stores opened in Kanpur, Ahmedabad and Lucknow respectively. Recently Globus has opened its Store in Indore, Aurangabad and the journey continues...

Globus Stores Pvt. Ltd. was formed to contribute to the revolution sweeping the Indian retail industry. Globus promises to bring about a perceptible change in the way apparel and lifestyle retailing is carried out.

Towards this end, we have brought in modern international technology and made heavy investments in investing and acquiring the best, tried and tested processes and procedures of operation.

Globus combines state-of-the-art international information technology, the highest quality of human resources and sustained financial commitment to realize its long term vision. We are rapidly expanding and our target is to have an additional 100 fashion stores by the end of 2012.

Central

Launched in May'04 at Bangalore, Central is a showcase, seamless mall and the first of its kind in India. The thought behind this pioneering concept was to give customers an unobstructed and a pure shopping experience and to ensure the best brands in the Indian

market are made available to the discerning Indian customer.

Central offers everything for the urban aspirational shopper to shop, eat and celebrate. Located in the heart of the city, Central believes its customers should not have to travel long distances to reach us; instead we must be present where customers frequently visit.

Central houses over 300 brands across categories, such as apparel, footwear and accessories for women, men, children and infants, apart from a whole range of Music, Books, Coffee Shops, Food Courts, Super Markets (Food Bazaar), Fine Dining Restaurants, Pubs and Discotheques. The mall also has a separate section for services such as Travel, Finance, Investment, Insurance, Concert/Cinema Ticket Booking, Bill Payments and other miscellaneous services. In addition, Central houses Central Square, a dedicated space for product launches, impromptu events, daring displays, exciting shows, and art exhibitions. Central is an integral part of the city and in the long run a City should become part of CENTRAL!

In a short span of its existence Central has revolutionized and redefined the shopping experience in India. At Central, customers no longer only shop, they get SHOP-ATAINED!

We invite you to experience this irresistible retail destination at Bangalore, Hyderabad and Pune cities.

Comparison with

Pantaloons

Store profile and information on Sales Promotion Activities

Store Name

Pantaloons

Central Reliance Tr.

Globus Westside

Format Type

Multibrand

Multibrand Multibrand Exclusive Brand

Exclusive Tata

BrandPositionin

gFamily Store

Family Store Family store

Style & Affordabili

ty

Style & Affordabili

tyFloor Size

18000 sq ft

150000 sq ft 60000 sq ft 20000 sq ft

40000 sq ft

Location MG. Road, Indore pose

locality

YN Road, Indore

AB Road, Indore

AB Road, Indore

Race Course Road, Indore

Categories

Apparel &accessorie

s formen,

women & children

Apparel &accessories

formen, women & children, apparels & Accessories

Apparel &accessories

formen,

women & children,

apparels & Accessories

Stylish Cloths for

men & women & accessorie

s

Stylized clothes, footwear

& accessorie

s

# of skus 45000 100000 60000 NA NA

# of Suppliers

20-25 50-60 35-45 8-15 NA

Avg. 1800 2000-2500 1500 800-1000 199-1500

billing per

CustomerAverage Footfalls

800-1000on

weekday & 1500-2500 on

weekends

400-800 on weekday &

1000-1200 on weekends

650-800 on weekdays & 1000-1200

on weekends

200-400 on

weekdays & 500-700

on weekends

100-150 on

weekdays & 200-400

on weekends

Sales Promotions

End of Season

Yes Yes Yes Yes Yes

Festive Promotions e.g. Diwali, Christm

as

Yes Yes Yes No Yes

Loyalty Card

Programme

Yes No Yes Yes Yes

Special Promoti

on(events)

Yes Yes Yes No Yes

Joint Promoti

on

No No No No No

Media Used

Hording, Print,

Electronic, In

store(SMS, Email)

Hording, Print,

Electronic, In

store(SMS, Email)

Hording, In store,

electronic

In store, Hording

Print, Hording, In

store

Promotion Type

Price off, Exchange offer, Free

Gifts, Discounts

Price off, contests, combo offer,

discounts

Price off, contests, combo offer,

discounts

Discounts, Combo offers

Cause Related,

gift vouchers, discounts,

combo offers

Evolution of

Promotion

Sales, Quarterly

Profit

Sales, Quarterly

Profit

Sales, Quarterly

Profit

Sales, Average Bill Size,

Conversion

Sales, Quarterly

Profit

From the above table which gives comparative picture of various sales promotion activities and manner of announcement, evaluation etc., it is clear that all five stores engage in end of season sale. Thus stock clearance seems to be very important objective for apparel retailer in using end of season sale twice in a year where in discount given is upto 50% of the MRP(Maximum retail price).

Two stores, both mulitbrand and exclusive use loyalty cards to reward loyal users and encourage them to visit the store often and buy more by offering wide range for men, women and children. Some store also offer home furnishings, accessories and footwear, thereby providing convenience for one stop shopping. Examining the various terms and conditions of loyalty programme revealed that some rewards were quite complex and confusing. The conditions

to be fulfilled are not very clear to a card member. For example, if any other promotions are prevalent then purchase made during those promotions would entitle for the card reward points or not was not very clear. All the stores used in store media to announce promotions. However use of mass media and electronic media varied across the sample under study. Use of only in store media would restrict the announcement to those who walk into the store. It can be assume that only loyal/ frequent visitor would know about the offers. Whereas variety of media used would enhance footfalls to the store and trigger word of mouth. No other store has yet explored avenue of joint sales promotion. Such joint promotions have advantages in terms of sharing costs of promotions, cross selling opportunities to each other’s customers, higher visibility etc.

In terms of type of consumer sales promotions, almost everyone used discount, coupon programmes and few used lucky draws, contests, gift, and buy one get one free type of promotions. Only Pantaloons had a unique scheme of an exchange offer which is normally prevalent in durable goods industry. Relating it to a cause- donating old pairs collected in exchange scheme to charity would enhance the brand value among the customers.

Conclusion

Conclusion –

Pantaloons Retail (India) Ltd is a company where it strives for lifestyle and value through its products and services. Through the study, it is observed that Pantaloons can be said an organization where the P’s of marketing is taken seriously for the maximum profitability through large range of products, promotional activities for the company through newspapers , magazines , internet ,banners and posters and a solid sales organization monitoring that the P’s are worked effectively. The store has been well maintained in accordance with the latest demands of the consumers and through all these strategies. Pantaloons ensures repeated customer patronage.

Bibliography-

Marketing Management – Philip Kotler

www.pantaloonretail.in

http://en.wikipedia.org/wiki/Pantaloon

w w w . p antalo o n. c o m

www.future-group.com

www.riedelresearch.com/.../34_Pantaloon%20Retail%20India%20Ltd%2004Sep2008

WWW.INDIANREALTYNEWS.COM

Questionnaire -

Name - Gender- Male/FemaleContact No. – Age Group- a) 15-25yrs b) 26-35yrs c)36-45yrs d) above 45yrs

. Q1. Which Retail store is more comfortable for your shopping-

(a)Pantaloons (b) Central (c) Reliance Trend (d) Globus (e) Westside

Q2. Which store products/merchandise collection available is more trendy or latest?(a)Pantaloons (b) Central (c) Reliance Trend (d) Globus (e) Westside

Q3. Which retail store’s coordination of staff members at more comfortable for you?(a)Pantaloons (b) Central (c) Reliance Trend (d) Globus

(e) Westside

Q4. From where you heard about the sale available at pantaloons store?

(a)TV (b)Radio (c) Newspapers (d) Hording (5) others.

Q.5 Are you happy with the available offers at the store – (a)Satisfied (b) Highly Satisfied (c) Dissatisfy

Q.6 you prefer to shopping with us due to-

(a) Attractive offers (b) High Quality (c) Variety (d) Better Assistant

Q.7 on which time you prefer for shopping apparels?(a) During offers (b) fresh stock (c) on festivals (d)

anytime

Q.8 which store is having the best ambience in Indore?(a)Pantaloons (b) Central (c) Reliance trend (d)

Globus (e) Westside

Your Valuable comments…………………………………………………….