pantaloons report (degree project)

CHAPTER 1

BACKGROUND

COMPANY PROFILE

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, Pantaloon Retail, the

group operates over 12 million square feet of retail space in 71 cities and towns and 65 rural

locations across India. Headquartered in

Mumbai (Bombay), Pantaloon 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. In 2008, Big Bazaar opened its 100th store, marking the fastest ever organic

expansion of hypermarket. The first set of Big Bazaar stores opened in 2001 in Kolkata,

Hyderabad and Bangalore. The group‟s specialty retail formats include, books and music chain,

Depot, sportswear retailer, Planet Sports, electronics retailer, eZone, home improvement chain,

Home Town and rural retail chain, Aadhaar, among others. It also operates popular shopping

DEGREE PROJECT REPORT, BATCH 2008-2010

portal, futurebazaar.com. Future Capital Holdings, the group‟s financial arm provides investment

advisory to assets worth over $1 billion that are being invested in consumer brands and

companies, real estate, hotels and logistics.

It also operates a consumer finance arm with branches in 150 locations. The group‟s presence in

Leisure & Entertainment segment is led through, Mumbai-based listed company Galaxy

Entertainment Limited. Galaxy leading leisure chains, Sports Bar and Bowling Co. and family

entertainment centers, F123. Through its partner company, Blue Foods the group operates

around 100 restaurants and food courts through brands like Bombay Blues, Spaghetti Kitchen,

Noodle Bar, The Spoon, Copper Chimney and Gelato. Future Group‟s joint venture partners

include, US-based stationery products retailers, Staples and Middle East-based Axiom

Communications. Other group companies include, Future Generali, the group‟s insurance

venture in partnership with Italy‟s General Group, Future Brands, a brand development and IPR

company, Future Logistics, providing logistics and distribution solutions to group companies and

business partners and Future Media, a retail media initiative.

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.‟ The Future Group employs over

30,000 people and was counted among 15 best employers in India in a survey conducted by

Hewitt Associates in 2007 in association with The Economic Times.

A staunch believer in the group‟s corporate credo, ‘Rewrite Rules, Retain Values,’ Kishore

Biyani considers Indianness as the core value driving the group. He was recently awarded the

Ernst & Young Entrepreneur of the Year 2006 in the Services Sector and Lakshmipat Singhania

- IIM Lucknow Young Business Leader Award by Prime Minister, Dr. Manmohan Singh in

2006. He was also awarded the CNBC First Generation Entrepreneur of the Year 2006.

Kishore Biyani was born in August 1961 and is married to Sangita and they have two daughters.

He recently authored a book, ‘It Happened in India’ that captures his entrepreneurial journey

and the growth of modern retailing in India.


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.

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.

BOARD OF DIRECTORS

MR. KISHORE BIYANI, MANAGING DIRECTOR

Kishore Biyani is the Managing Director of Pantaloon Retail

(India) Limited and the Group Chief Executive Officer of Future

Group.


Mr. Gopikishan Biyani, Whole time Director

Gopikishan 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 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.

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

D. O. Koshy holds a doctorate from IIT, Delhi and is the Director of National Institute of Design

(NID), Ahmedabad. He has over 24years of rich experience in the textiles and garment industry

and was instrumental in the setting up of NIFT centers in Delhi, Chennai and Bangalore. He is a

renowned consultant specializing in international marketing and apparel retail management.


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. Specialized businesses

LINES OF BUSINESS

The company is present across several lines of business which have various formats (stores)

Fashion - Pantaloons, Central, aLL, Brand Factory, Blue Sky, Top 10, Fashion Station,

Big Bazaar, Lee Cooper (JV)

General Merchandise - Big Bazaar, Shoe Factory, Navras, Electronics Bazaar, Furniture

Bazaar, KB'S FAIR PRICE

Electronics - eZone, Electronic Bazzaar, STAPLES (JV)

Home Improvement - Home Town

Furniture - Collection i, Furniture Bazaar, Home Bazaar

E-tailing (Online Shopping) - www.futurebazaar.com

Books & Music - Depot

Leisure & Entertainment - Bowling Co., F123

Wellness - Star & Sitara, Tulsi

Telecom & IT - Gen M, M Bazaar, M-Port, ConvergeM, Future Axiom

Consumer Durables - Koryo, Sensei, IPAQ

Service - E Care, H Care , Design & Service

Malls - Central (Bangalore, Hyderabad, Pune, Mumbai, Vadodara, Gurgaon, Indore,

Ahmedabad)


Investment & Savings - Insurance: ULIP, Pension, Endowment etc.

Stock Information

Listed on: Bombay Stock Exchange

Stock Code: BOM:523574

PARTNER COMPANIES:

Home Solutions Retail (India) Ltd.

Home Solutions Retail (India) Ltd.

(HSRIL) leads the groups foray in the

home improvement and consumer

electronics retailing segment. It caters to

home management requirements and

products, including furnishings and

textiles, furniture, consumer electronics,

home electronics and home services. It operates retail formats like Home Town, Furniture

Bazaar, Collection I, E-Zone,Electronics Bazaar and Got It.

Future Capital Holdings

Future Capital is the financial arm of the group and is involved in asset management (both

private equity and real estate funds) with plans to get into other financial services including

insurance, credit and other consumer related financial services. Its associate companies are

Kshitij Investment Advisory Co. Ltd., Indivision Investment Advisers Ltd., and Ambit

Investment Advisory Co. Ltd.

Future Media India Ltd.

Future Media India Ltd. is a part of the Future Group, aimed at creation of media properties in

the ambience of consumption and thus offer active engagement to brands and consumers.Indus

League Clothing Ltd.The group owns a majority stake in Indus League Clothing Ltd., one of the


leading apparel manufacturers and marketers in India. Some of its leading brands include Indigo

Nation, Scullers,Urbana, Urban Yoga and Jealous 21.

Future Bazaar India Ltd.

Future Bazaar India Ltd. is a subsidiary of Pantaloon Retail (India) Limited. It owns and operates

theonline shopping portal futurebazaar.com

Galaxy Entertainment Corporate Ltd.

The group owns a stake in Galaxy Entertainment Corporate Ltd. that operates chains like

BowlingCompany, Sports Bar and Brew Bar.

JOINT VENTURES COMPANIES

CapitaLand Retail India

The group is a joint venture partner in

CapitaLand Retail India, along with

Singapore-based Capital and Limited. The

company provides retail management

services to retail properties owned

ormanaged by various group companies

and investment funds.

Footmark Retail

Foot mart Retail is a joint venture with Liberty Shoes and is engaged in the retailing of footwear

products in India.

Planet Retail Holdings Ltd.

The group is a joint venture partner in Planet Retail Holdings Ltd., which operates sports, lifesty

leand leisure retail chain. It also owns the franchisee and distribution rights of brands like Marks

&Spencer, Guess, Debenhams and Puma in India.


MAJOR MILESTONES

1987

Company incorporated as Manz Wear Private

Limited. Launch of Pantaloons trouser, India‟s first

formal trouser brand.

1991

Launch of BARE, the Indian jeans brand.

1992

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

1994

The Pantaloon Shoppe – exclusive menswear store in franchisee format launched across the

nation. The company starts the distribution of branded garments through multi-brand retail

outlets across the nation.

1995

John Miller – Formal shirt brand launched.

1997

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

Kolkata.

2001

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

Hyderabad.


2002

Food Bazaar, the supermarket chain is launched.

2004

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

2005

Group 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.

2006

Future 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.

2007

Future Group crosses $1 billion turnover mark.

Specialised companies in retail media, logistics, IPR and brand development and retail-led

technology services become operational.


Pantaloon 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.

2008

Future 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.

Future Group acquires rural retail chain, Aadhar present in 65 rural locations.

AWARDS AND ACHIEVMENTS

Images Fashion Forum 2009

Most Admired Fashion Group Of The Year -

Future Group

Most Admired Private Label - Pantaloons, the

lifestyle format

Critics Choice For Pioneering Effort In Retail

ConceptCreation - Central

Coca-Cola Golden Spoon Awards 2009

Most Admired Food & Grocery Retailer Of The

Year

Most Admired Food Court


Most Admired Food Professional

Indian Retail Forum Awards 2008

Most Admired Retail Company of the year - Future Group

Retail Face of the Year - Kishore Biyani

Best Retailer Of The Year ( Hypermarket) - Big Bazaar

Future Group was awarded the Most Admired Retail Company of the year by the Indian

Retail Forum at a glittering ceremony organised in Mumbai. Mr Kishore Biyani also won

Retail Face of the Year.

India Retail Forum (IRF) is a platform for intellectual insightsand information exchange

for the retail business in the Indian subcontinent. The forum presents the business of

retail in the region to a global audience, with the express aim of facilitating understanding

about and encouraging investment in thismassive marketplace.Big Bazaar, the value

format of Future Group bagged the Best Retailer Of The Year ( Hypermarket).

The INDIASTAR Award 2008

Food Bazaar: Best Packaging Innovation

Food Bazaar bagged the INDIASTAR Award for Best Packaging Innovation in India, for

its private label brand Fresh And Pure Chakki Atta.

INDIASTAR Award is a biennial event which aims to promote and encourage excellence in

packaging design, innovation and technology. The contest was established in 1972 and is

considered as the most popular and premier event for India‟s packaging fraternity. This year

there were around 357 entries and the participants had to submit a sample of their designs for

selection. With this award, Pantaloon Retail (India) Limited becomes the first Indian Retailer to

win the prestigious INDIASTAR Award. Retail Asia Pacific 500 Top Awards 2008

Gold Winner -Top Retailer 2008 Asia Pacific

Retail Asia Publishing Pte, the institutor of these awards, aims to set a platform that

appraise, raises and recognizes the development and growth of retailing throughout the

Asia Pacific region.


Coca-Cola Golden Spoon Awards 2008

Most Admired Food & Grocery Retail Visionary of the Year: Kishore Biyani

Most Admired Food & Grocery Retailer of the Year Supermarkets: Food Bazaar

Most Admired Food & Grocery Retailer of the Year -Hypermarkets: Big Bazaar

Most Admired Retailer of the Year - Dynamic Growth in Network Expansion across

Food, Beverages & Grocery: Future Group

Most Admired Food & Grocery Retailer of the Year - Consumer's Choice: Big Bazaar

The Reid & Taylor Awards For Retail Excellence 2008

Retail Leadership Award: Kishore Biyani

Retail Best Employer of the Year: Future Group

Retailer of The Year: Home

Improvements: HomeTown

Images Retail Awards 2007

Most Admired Retail Face of the Year: Kishore Biyani

Most admired retailer of the year: Large format, multi product store: Big Bazaar

Most admired retailer of the year: Food and Grocery: Food Bazaar

Most admired retailer of the year: Home & office improvement: HomeTown

Most admired Retail Company of the year: Pantaloon Retail (India) Ltd.

Images Retail Forum followed strict international benchmarks in deciding the top honours for

Images Retail Awards ‟07, with IRIS as knowledge partner and global consulting firm AT

Kearney as the Process Approver.

National Retail Federation Awards

International Retailer for the Year 2007 – Pantaloon Retail (India)Ltd

The National Retail Federation is the world‟s largest retail trade association with over 1.4 million

members in the US and across the world. Some of the past winners of the award include Metro


AG (Germany), Carrefour (France), Zara (Spain), Boticario (Brazil) and Ito Yokado (Japan). The

award was presented at the Retail‟s Big Show held in January 2007 in New York.

World Retail Congress Awards

Emerging Market Retailer of the Year 2007 – Pantaloon Retail (India) Ltd

The inaugural World Retail Congress held in Barcelona, Spain in March 2007 attracted over one

thousand retail professionals from over sixty countries. The awards were decided by a

multinational Grand Jury. Winners in other categories included Inditex, Mall of Emirates, Marks

& Spencer and IKEA.

Hewitt Best Employers 2007

Best Employers in India (Rank 14th) – Pantaloon Retail (India) Ltd

Leading human resources consultancy, Hewitt Associates conducts an annual survey of the best

employers in India, as part of its global initiative. It is based on CEO interview, People Practices

Inventory and Employee Opinion Surveys. Pantaloon Retail became the only retailer to feature

among the twenty-five best employers in India.

PC World Indian Website Awards

Best Indian Website In The Shopping Category - Futurebazaar.com

PC World, a leading consumer technology magazine selected the best Indian websites in various

categories based on use of technology for delivering solutions, information being presented in an

intuitive and concise manner and overall experience aided by design.

Reader’s Digest Trusted Brands Platinum Awards

Trusted Brands Platinum Award (Supermarket Category) – BigBazaar

The Reader‟s Digest awards are based on surveys done among consumers by independent

research agency, Nielsen Media Research. This is the second consecutive time Big Bazaar has

won this award.


Retail Asia Pacific Top 500 Awards

Asia Pacific Best of the Best Retailers – Pantaloon Retail (India) Ltd

Best Retailer in India – Pantaloon Retail (India) Ltd

Asiamoney Awards

Best Managed Company in India (Mid-cap) – Pantaloon retail (India) Ltd.

Ernst & Young Entrepreneur of the Year Award

Ernst & Young Entrepreneur of the Year (Services) – Kishore Biyani

Considered to be one of the most prestigious business awards inIndia, a jury comprising leading

names in Indian business selected the winners based on courage, creativity, passion, endurance

and vision.

CNBC Indian Business Leaders Awards

The First Generation Entrepreneur of the Year – Kishore Biyani

Organized by CNBC-TV18, the twelve awardees in various categories are decided by a high

profile jury, along with research partners - The University of Chicago Graduate School of

Business, Development Dimensions International (DDI) and AC Neilson ORG MARG.

Images Retail Awards

Best Value Retail Store – Big Bazaar

Best Retail Destination – Big Bazaar

Best Food & Grocery Store – Food Bazaar

Retail Face of the Year – Kishore Biyani

CNBC Awaaz Consumer Awards

Most Preferred Large Food & Grocery Supermarket – Big Bazaar

Reid & Taylor Awards for Retail Excellence


Retail Entrepreneur of the Year – Kishore Biyani


PRIL- Most Admired Retailer of the Year

Food Bazaar- Retailer of the Year(Food and Grocery)

Big Bazaar-Retailer of the Year(Value Retailing)

Central-Retail Launch of the Year

Voted by Business Today magazine as one of the Top 20 Companies in India to watch in 2005

India‟s most investor-friendly companies in the top 75 India‟s Biggest wealth creators in the top

100

DAKS London

PRIL- Brand Builder of the Ye


PRIL- Most Admired Retailer of the Year

Food Bazaar- Retailer of the Year(Food and Grocery)

Big Bazaar-Retailer of the Year(Value Retailing)

Central-Retail Launch of the Year

Reid & Taylor and DLF Awards

PRIL - Retailer of the year

Indian Express Award

PRIL –Marketing Excellence and Excellence in Brand Building Indusland Bank (India

Brand Summit)

PRIL - Excellence in Brand Building


PANTALOONS


PANTALOON RETAIL (INDIA) LIMITED

Originally incorporated as Manz Wear Private Limited on October 12, 1987. The

Company‟s name was changed to Manz Wear Limited on September 20,1991, further to

Pantaloon Fashions (India) Limited on September 25, 1992 and to Pantaloon Retail

(India) Limited on July 7 1999)

Registered and Corporate Office: Pantaloon Knowledge House, Shyam Nagar, Off.

Jogeshwari Vikhroli Link Road, Jogeshwari (East), Mumbai 400060.

Tel: (+91 22) 56442200 Fax: (+91 22) 56442201

WHAT IS PANTALOONS

Celebrate the Fresh Look, Fresh Feel & Fresh Attitude at Pantaloons Fresh Fashion ! Fashion is

all about the now. Why, then should people not see a fresh look every time they walk into a

Pantaloons store? That is the thought behind 'Fresh Fashion'. An idea that has captured the

imagination of young India. With a focus on the youth of today, Pantaloons offers trendy and hip

fashion that defines the hopes and aspirations of this demography.

Pantaloons Fresh Fashion stands out as a fashion trendsetter, on the lines of how fashion is

followed internationally. The „look‟ and „what‟s in‟ today for the season is sacrosanct.

Pantaloons takes its promise of 'fresh fashion' very seriously making available to its customers

the latest in fashion every week!

All Pantaloons stores reflect the new ideology – Fresh Feeling, Fresh Attitude, Fresh Fashion.

The stores offer fresh collections and are visually stimulating thanks to appealing interiors and

attractive product display!

The first Pantaloons was opened in Gariahat in 1997. Over the years, it has undergone several

transitions. When it was first launched, this store mostly sold external brands. Gradually, it

started retailing a mix of external brands while at the same time introduced its own private

brands. Initially positioned as a family store, it finally veered towards becoming a fashion store

with an emphasis on 'youth' and clear focus on „fresh fashion‟. Today, the fashion store extends


to almost all the major cities across the country. Pantaloons has established its presence with

stores not just in the metros, but also in smaller towns.

ABOUT PANTALOONS

Pantaloon Retail is the flagship enterprise of the Future Group, with a presence across multiple

lines of business. The company owns and manages multiple retail formats that cater to a wide

cross-section of Indian society. Headquartered in Mumbai (Bombay), the company operates

through four million square feet of retail space, has over 140 stores across 32 cities in India and

employs over 14,000 people...

Pantaloon Retail forayed into retail in 1997 with the launching of its fashion retail chain,

Pantaloons in Kolkata. In 2001, it launched Big Bazaar, a hypermarket chain. This was followed

by Food Bazaar, a food and grocery chain. Next up was Central, a first of its kind located in the

heart of major Indian cities. Some of its other formats include, Collection I (home improvement

products), E-Zone (consumer electronics), Depot (books, music, gifts and stationary), ALL (a

Little Larger, fashion apparel for plus-size individuals), Shoe Factory (footwear) and Blue Sky

(fashion accessories). It has recently launched its e-business venture, futurebazaar.com. The

group's subsidiary companies include, Home Solutions Retail India Ltd, Pantaloon Industries

Ltd, Galaxy Entertainment and Indus League Clothing. The group also has joint venture

companies with a number of partners including French retailer Team group, Lee Cooper,

Manipal Healthcare, Talwalkar's, Gini & Jony and Liberty Shoes. Planet Retail, a group

company owns the franchisee of international brands like Marks & Spencer, Debenhams, Next

and Guess in India.

TARGET MARKET AND POSITIONING OF PANTALOONS

Pantaloons are positioned as a department store catering to the middle and upper-middle

classsections at each of its locations. Its core offering is branded merchandise, retailing

international, national and regional brands as well as private and proprietary labels. Today, a

leader in Fashion Pantaloons promises Fresh Fashion for the entire family as well as the young

and the young-at-heart. The belief is that they will be the key drivers of fashion. Thus it is a store

focusing on providing a value for money proposition as it provides quality fashion products at an

affordable price as compared to the competitors.


STORE LOCATION

The location of a retail store occupies an important place in retail strategy. It not only conveys

the image of the store, but also influences the merchandise mix and the interior layout of

thestore. While the merchandise mix can be changed and prices can be adjusted, it is difficult to

change the decision on store location.

TRAFFIC

The traffic – pedestrian as well as vehicular – that passes the site is an important determinant

ofthe potential sales that can be generated from a store. A pantaloon is known to have good

parking space wherever it‟s located.

ACCESSIBILITY OF THE MARKET

Accessibility of a market is defined in terms of the availability of public transport and road/local

trains connections to the markets. It is mostly located in posh locality in the center of the city.

Further the easy availability of transport facilitates makes the location really accessible for

shopping.

PRODUCT MIX OFFERED

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

mentioned earlier the main product line of Pantaloons is men‟s and women‟s clothing and other

accessories comprising a vigilant mix of private as well as other labels...Since Pantaloons


provides products to a potentially large number of customers at affordableprices, it falls in the

High Turnover - Low Margin Category

BRANDS AT PANTALOONS

PANTALOONS BRANDS NON PANTALOONS BRANDS

MEN‟S WEAR BIBA

JOHN MILLER SPYKAR

JM SPORTS 109 F

BARE DENIM REMANIKA

RIG INDUS LEAUGE

AJILE LEE COOPER

LOMBARD LILLIPUT

T-2000

BARE LEISURE

LADIES WEAR

HONEY

AKKRITI

ANNABELLE

MIX & MATCH

AJILE

RIG

KID‟S WEAR

CHALK

BARE 7214


PRICING

Pantaloons visual merchandising is creative, innovative and outstanding which can be seen from

its own in house private brands such as John Miller. All the merchandise is placed at both 360

degree and 180 degrees. The new launched products are showed by prominent color back

ground. Window display is highly interactive for impulsive buyer. Price range is average.

They propose to provide branded products at 10% less than the Mrp and 20% off on the local

brands, which is similar to what has been carried out inBig bazaar.Keeping costs down is clearly

the corner stone of policyat both chains. Pantaloon chief Biyani ensures cheaperprices by

keeping watch at every step.Says Biyani: "We do three things -- buy directly from the

manufacturers so that the middle man is eliminated.We buy in cash and get a cash discount, and

manage our stocks turns so that we don't havemoney stuck up. The benefits are passed on to the

customers.”

Initially positioned as a family store, it finally veered towards becoming a fashion store with and

emphasis on youths and clear focus on „FRESH FASHION‟. They are targeting youth and even

women, since they are the ones defining most purchasing decisions.

STORE LAYOUT

Pantaloons follows a free form store layout. No particular format is followed anything is placed

anywhere but strategically. Pantaloons fall under following categories- Departmental stores,

Malls, E-retailers Here when it comes to arranging the clothes, same type of clothes are put up

together in different sizes so that same clothes are available for every size at one point only.

Being a department store, Pantaloons exhibits an arrangement of merchandise in a free

formlayout. Such a layout allows free movement and also encourages people to browse and shop

with convenience.The floor space is allocated on the basis of the contribution of a particular

department tobusiness.


STORE DESIGN- STORE EXTERIORS & STORE INTERIOR

Pantaloons follows a theme based interior,

like a corner is assigned to every brand and

that brand put up its product as per its liking.

Also the posters and ads for discounts and

offers for them are put up there only Exteriors

of pantaloons stores are very attractive & eye

catchy. They put up fresh fashion collections

on the dummies onthe entrance.The exterior

appearance of a store silently announces what

customers can expect inside. Good exterior

visual merchandising attracts attention,

creates interest and invites the customer into

the business.

VISIBILITY

The clothes and accessories available in the stores are nicely put up at the windows of the

building at night the building is brightly lit up. The focus is largely on the name plate at the top.

The entrance has an automatic door closing system. There is always someone to greet the

customers entering the shop.

INTERIOR STORE DESIGN

LIGHTING

Good lighting in a store involves more than illuminating space. Lighting is used to highlight

merchandise, sculpt face and capture a mood feeling that enhances the store image. White

lighting has been majorly used in the store so that the customers can identify the requisite colors

of the apparels. For lightening mostly focus lights are used for the clothes that are hanged on

wall white lights are used but for toys section as well as shoes section yellow lights are used and

even for the traditional wear yellow lights are used as this light match with the color of the


products put up there and even make them look more eye catchy and attractive. Stores have

transparent flooring furnished floorings.

Music – mostly there is rock as well as soft music no particular music beat is followed.

Store security- well they have ample staff available with them to guide as well as to keep a

check on the customers. Also they have cc cameras put up at various spots.

SPACE ALLOCATION AND UTILIZATION

Furniture and fixtures- Goods are

effectively displayed on a variety of

fixtures such as gondolas, tables, cubes,

mannequins, waterfalls and other racks,

display cases and manufacturer point- of -

purchase display.

Walk Ways and Entries:-

Approximately 75 % of first time

customers remember a store‟s entrance,

which provides the first and last view of the

store‟s interior. A cluttered entryway cause‟s shopper‟s to indefinitely postpone entering a store,

while an attractive, well designed entrance is inviting to the customers and that‟s what

pantaloons provides.

Sound type and density

Instrumental music is played over loud music in the store making the shopping environmental

more serene and calm Odor type and density like sound, odor too has a negative or positive

impact on the atmosphere of the store. The strength (density) of the odor is also important. This

is because, even if the odor is right but too strong or intense, the ultimate impact generated by it

is negative. Considering pantaloons, perfumes or room fresheners are aired through the air

conditioners.


VISUAL MERCHANDISING- Merchandise Type and Density

One can come across campaign graphics in the store with merchandise places near them.

Mannequins are displayed with accessories to generate impulse purchases. Spot lights are also

focused on the visual merchandise so as to gain the attention of the customers. Pantaloon focuses

on the latest fashion apparels. No rack is kept empty as it may create a negative impression in the

minds of the customers

Fixtures

Detachable fixtures with smooth edges are maintained in the store especially in the kids segment.

Packaging

The Products purchased by the Customers are packed in green colored Recyclable Plastic Bags.

The bag is sealed with a tape bearing a statement “Thank you for shopping ant Pantaloons” on it.

MERCHANDISE

Pantaloons have applied the concept of category management in its 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, color and size. They are characterized by a

broad variety, deep assortment. 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. Although no concrete information was provided with respect to the ways of

forecasting the sales and inventory planning, it was highlighted that buffer stock of

approximately 10-12% of the total stock is maintained in the store. Display Areas, Walkways &

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

accessories& all. They have a broad walkway & doorways.


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

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

such a way so that consumers can easily take their wanted products. Pantaloons have their

owning house brands in Apparel as well as different sections. Pantaloons visual merchandising is

creative, innovative and outstanding which can be seen from its own in house private brands

such as John Miller. All the merchandise are placed at both 360 degree and 180 degrees. The

new launched products are showed by prominent color back ground. Window display is highly

interactive for impulsive buyer.

Assortment and Variety

Pantaloons typically fall in the High Assortment –

High Variety quadrant. Although the assortment

and variety in each of the categories is high, depth

is emphasized upon in case of core merchandise

categories such as men‟s formal wear, men‟s

casuals and sportswear. Conversely, the typical

fashion apparels and accessories are dominant on

the Width front.

SWOT ANALYSIS

STRENGTH

Brand equity and early mover advantage;

Entrepreneur led, professionally managed by an

experienced team; Project execution and operations

capabilities; Vast range of lifestyle and value retail

products and services; Strong distribution and

logistics network and supply chain; strong distribution and logistics network, with our 21

distribution centers covering; and Large base of customers and Strong focus on systems and

processes; Retailing is a "technology-intensive" industry. It is technology that will help the

organized retailers to score over the unorganized retailers.


Successful organized retailer‟s today work closely with their vendors to predict consumer

demand, shorten lead times, reduce inventory holding and ultimately save cost. Example: Wal-

Mart pioneered the concept of building competitive advantage through distribution &

information systems in the retailing industry. They introduced two innovative logistics

techniques, cross-docking and EDI (electronic data interchange).On an average a super market

stocks up to 5000 SKU's against a few hundred stocked with an average unorganized retailer.

It is the main sponsor in Femina Miss India. Strong management team Brand recognition and

reputation and Diversity and variety in products offered on the web (footwear, apparel, sporting

equipment etc.)Strong control over its own distribution channel, No bad reputation like child

labor or environment pollution

WEAKNESS

Weaknesses found can be the opportunities of improvements. The Number of outlets available in

the locations of pantaloons is very low. It does not have a strong presence everywhere.

Promotional Cost Vs Revenue

Less Conversion level: Despite high footfalls, the conversion ratio has been very low in the retail

outlets in a mall as compared to the standalone counter parts. It is seen that actual conversions of

footfall into sales for a mall outlet is approximately 20-25%. On the other hand, a high street

store of retail chain has an average conversion of about 50-60%. As a result, a stand-alone store

has a ROI (return on investment) of 25-30%; in contrast the retail majors are experiencing a ROI

of 8-10%.Customer Loyalty: Retail chains are yet to settle down with the proper merchandise

mix for the mall outlets. Since the stand-alone outlets were established long time back, so they

have stabilized in terms of footfalls & merchandise mix and thus have a higher customer loyalty

base.

E-retailing is limited – limited variety of products available online direct sale to consumers is

creating conflicts with its own reseller‟s online customer service not "helpful" or easy to find.


OPPORTUNITY

the Indian middle class is already 30 Crore & is projected to grow to over 60Crore by 2010

making India one of the largest consumer markets of the world. The IMAGES-KSA projections

indicate that by 2015, India will have over 55 Cr people under the age of 20- reflecting the

enormous opportunities possible in the kids and teens retailing segment. Organized retail is only

3% of the total retailing market in India. It is estimated to grow at the rate of 25-30% p.a. and

reach INR 1, 00,000 Cr by 2010.Percolating down- In India it has been found out that the top 6

cities contribute for 66% of total organized retailing. While the metros have already been

exploited, the focus has now been shifted towards the tier-II cities. The 'retail boom', 85% of

which has so far been concentrated in the metros is beginning to percolate down to these smaller

cities and towns.

The contribution of these tier-II cities to total organized retailing sales is expected to grow to 20-

25%.Rural Retailing: India's huge rural population has caught the eye of the retailers looking for

new areas of growth. ITC launched India's first rural mall "Chaupal Saga" offering a diverse

range of products from FMCG to electronic goods to automobiles, attempting to provide farmers

a one-stop destination for all their needs." Hariyali Bazar" is started by DCM Sriram group

which provides farm related inputs & services. The Godrej group has launched the concept of

'agri-stores' named "Adhaar" which offers agricultural products such as fertilizers & animal feed

alongwith the required knowledge for effective use of the same to the farmers. Pepsi on the other

hand is experimenting with the farmers of Punjab for growing the right quality of tomato for its

tomato purees & pastes.

Collaborate with other online retailers to offer its products Possibility of outsourcing the web

development and e-commerce to a third party developer new avenues for opening of outlets. And

Increase the promotional activities.

THREATS

Increase in the Price of Raw materials Pantaloon strong reputation in the apparel industry

Identify the Threats - competitors activities More number of outlets of competitors available in

the surrounding If the unorganized retailers are put together, they are parallel to a large

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


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

malls are just a palace to hang around with family and friends and largely confined to window-

shopping.

Competition within vicinity-Pantaloons is mostly located in same place as its competitors. Like

in Baroda and even in Pune is in a mall so it‟s very much nearby its competitors. Its major

competitors are Westside, Globus, and central. Marquees A special type of sign is used to

display the name of the store. It is used to announce a change in season, sale, a special event or a

promotion.

PROMOTION STRATEGY

Under the market strategy promotional idea is very important. Organization provides some

Schemes or rebates to retailers or consumers. They make advertisement according to convenient

of the people and the feature of the product. So on the basis of marketing strategy a organization

runs in the market. It is several types of which makes helpful to increase sales and turnover of

the organization.

Pantaloons is the first company to promote their products through movies like Na Tum Jano Na

Hum and many others, including the recent block buster “3 Idiots” since the company‟s focus is

youth they tend to promote their products through youth icons like Mahendra Singh Dhoni,

Bipasha Basu, they also tend to sponsor events which are watched by the youth like the

Pantaloons Femina Miss India which they relate to or is liked by the youth. The company also


promotes its products through discounts. For Example-In Pantaloons (life style segment) on a

purchase of one t-shirt(UMM)you would have to pay Rs349 and on a purchase of two one would

buy it for Rs549.Thecompany keeps yearly or quarterly discounts. Pantaloon majorly promotes

its brands through promotions in events which involve youth like Malhaar, Umang and popular

college festivals etc

Over the past few years the Organized Retail Sector has been characterized by the following

strategies:–

-Large Formats

-Rapid Expansions

-More Players with variety of formats

-Urban India is the initial target market

-Location

-Efficient Supply Chain Management

-Profitability Model

PLC and Responses

MARKETING POLICY

FOCUS

According to Pantaloons, fashion is all about here

and now. The company has primarily focused on

the youth of the country since the major part of the

population lies in the age of 15to45 which is the

income group. Pantaloons are very serious behind

the idea of “fresh fashion “and have projected youth

at the fore-front. The ideology of the company is

Fresh Fashion, Fresh Attitude, Fresh Feeling.

Pantaloons 2009 Collection

Ajile Akkriti Akkriti Kidswear


Scope of Marketing:

Positioning- Leading player in

organized retail in India:-

PRIL is the market leader in the

organized retail segment and has a

pan India presence with its stores

operational across 15 states. The

company has presence in food and

grocery, clothing, home furnishing

and improvement, durables,

footwear, leisure and entertainment,

health and beauty, etc. PRIL operates

through multiple formats like

Hypermarket (Big Bazaar), Departmental Store (Pantaloon), Supermarket (Food Bazaar) and

Specialty Stores. Thus, PRIL is best placed to extend its presence across categories, formats and

regions.

The positioning is a creative exercise down with an existing product. the well known products

generally hold a distinctive position in consumer's minds. The positioning requires that every

tangible aspect of product, price, place and promotion must support the chosen positioning

strategy. Company should develop a unique selling proposition (USP) for each brand and stick to

it, PPL consistently promotes its DAP fertilizer by Higher yield at lower cost. As companies

increase the number of claims for their brand, they risk disbelief and a loss of clear positioning.

In general a company must avoid four major positioning errors. Those are under positioning over

positioning, confused positioning and doubtful positioning.

In the Life-style segment (Pantaloons) the positioning of the store is very different. The store is

very open and has a soothing music when the customer enters. The store is very open and

spacious; the door of the store is always open which is inviting customers. Since the store is very

spacious Pantaloons has segmented its products in a Demographic way and this is the same in all

the outlets .The entrance would have the cosmetics, jewellary etc then is the ladies section which


first has the Indian wear then the western after that it‟s the men‟s wear and then the sportswear.

Pantaloons brands like UMM, DJ&C are always positioned at the eyelevel. There is a lot of

detailing on the presentation of the products which are then displayed on the mannequin. The

company would place its beat products on the mannequin. Pantaloon always positions its product

at a place where the consumer would see the product once and is easy to locate. Location plays a

major role in positioning the product in their store to enhance sale. The company would also

position itself according to the needs of the youth because it is the target market and likes things

fresh.

MARKETING ACTIVITIES

Pantaloons Retail India Pvt Ltd. is involved in many marketing activities but they are different

for different stores,

PANTALOONS STORES

Positioned as 'India's family

store,' a Pantaloons departmental

store (Pantaloons) targeted the

middle and upper middle class

urban population of the country

and offered a wide range of

garments, accessories and life

style products to meet the specific

requirements and preferences

offal age groups especially the

young Indians. The company has

majorly marketed its products like

BARE, UMM, DJ&C and many more through movies like “Kya Kool Hai Hum”, “Na Tum Jano

Na Hum”, “3 Idiots” and many more .Pantaloons also sponsors events like “Femina Miss India”.

It has also increased its advertisement expenditure budget from 20crores to Rs 40crores during

IPL season. It has also sponsored many International Cricket Tournaments. Since the target

market is different the marketing mix is different too.


PANTALOONS FEMINA MISS INDIA 2010

Mumbai, April 9th 2010: Pantaloons, India's leading fashion retailer, a part of the Future

Group, today unveiled the ‘Pantaloons Femina Miss India 2010 Collection ‘at Mega Mall,

Oshiwara. The new collection is Vibrant, young and enticing.

The new „Pantaloons

Femina Miss India 2010

collection‟ is a reflection of

the hopes and aspirations of

these 18 young and

beautiful “Pantaloons

Femina Miss India 2010”

finalists. While Pink and

Gold rule the palette,

myriad shades encompassed

in the series are the

highlight of this collection.

Pantaloons Femina Miss India 2010 collection is ruled by Indo western silhouettes. It starts on a

western note and gradually cascades to the mystic beauty of the east. Comprised of colorful

kurtis, fabulously flared skirts, Ghaghara‟s, vibrant top wear and short skirts, one has an option

to turn things around from being contemporary to upscale trendy. Pair a kurti with your favorite

denims or team a flared skirt with a western top, one has a variety of choices to opt from. This

collection is an effort to rewrite the fashion rule book and is bound to infuse ones personality

with the much needed vibrancy and panache.

This collection has been designed keeping in mind the aspirations of the contestants and is

aimed towards providing a sneak peak to their personality, which sets them apart from others and

gives them their winning streak.


Pantaloons also had a special in-house styling contest in store for the customers. The winners of

the contest were styled by „Pantaloons Femina Miss India 2010‟ Finalists. Pooja Chopra, Beauty

with a Cause Miss World Pageant 2009 and Pantaloons Miss India World 2009 judged the finale.

Pantaloons‟ Facebook fans get all the information of what the Pantaloons Femina Miss India

2010 finalists are up to through an insider who provides scoop on all that‟s happening in the

PFMI realm every day. Popularly known as the „Girl-in-Pink‟, her eyes and ears follow & pick

up every tit bit of information pertaining to what the girls are up to - in front of and behind the

cameras

New Product Development- Pantaloons Retail Company Limited has many branches and within

those branches there are many products .The Company has a trend of introducing new products

in their branches very frequently. Pantaloon and Central both had introduced new collections of

UMM in their stores very recently. The new collection was given exclusive space and that

section was very beautifully decorated and gave the customers a very new look and feel of the

space and the product which then essentially helped for higher sales. There was no offer on the

jeans as they had positioned it as an exclusive product. This is how they redefine their old brands

and introduce new products.


Hoardings:

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

brand ambassadors who are generally eminent celebrity. Category manager plans promotions /

brand or product building schemes. The category manager identifies slow movers and also

disposal plan for the same.

LOYALTY PROGRAM

IT SYSTEM

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

head office in Germany. Pantaloon Retail selected the entire suite of Connected Retailer

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

Merchandising, Planning, Sales Analytics, and CRM. At the core of their systems is the

Connected Retailer Merchandising Solution, which streamlines operations, unifies asset


management, and helps retailers learn the truth about their business. This powerful retail

enterprise solution features an open-architecture design that provides unprecedented flexibility,

scalability, power, and control merchandising‟s centralized transactional database and support

tools enable retailers to make and execute better decisions based on accurate, current, and shared

information. By using consistent data to guide all processes, the solution automatically

synchronizes and integrates all key functions, including planning, ordering, pricing, flow, sales,

margins, and inventory management Connected Retailer. Bar Coding and Scanners: Point of sale

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

and generate the total bill for a client.

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

easy payment process.

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

business. This, along with the various available CRM (Customer Relationship Management)

Systems, allows the study of the buying behavior of consumers in detail and grows the value of

individual consumers to their businesses.

SAP implementation is not a single phase process. The project was divided into three phases.

The first phase involved blueprinting existing processes and mapping them to the desired state.

In this phase, the entire project team worked on current processes within the structure of the

organization, analyzed and drafted them. This blueprint was later used in the formation of new

states of the solution. Since the SAP would combine all the processes, each and every one of

these had to be evaluated. In the second phase, the SAP platform was developed with the help of

Nova soft‟s template which was predefined by SAP after evaluation of Pantaloon‟s needs and

expertise in retail solutions. The last phase in this project was for stores to switch over to the new

system and for current data to be ported. Before the SAP implementation, all the data was

unorganized. This data had to be migrated to the new SAP application.

Maintenance and Hardware

This application is currently being used by around 1,200 employees across the organization. For

maintaining this implementation and its related applications, Pantaloon has an in-house team and

it has outsourced ABAP resources. They are also in the process of setting up a SAP Competency


Centre. The system runs on a HP Superdome server on HP UNIX 11i and the database is from

Oracle. The cost of this project was about $10 million.

Future projects

After the successful implementation of SAP for its retail chain, Pantaloon plans to go ahead with

IT projects such as implementation of WMS with RFID, Customer Intelligence and CRM.

Inventory and Promotions Optimization will be pursued later this year. More than eight years

after it forayed into the retail business, Pantaloon Retail decided to implement SAP to keep itself

competitive in the rapidly growing Indian retail market.

Branding and Promotion

Contribution from major brands-

Promotional Offers Run by Pantaloons Retail Company Limited

Pantaloons retail India limited provides Green card; this Green Card is passport to a whole new

world of exclusive benefits and privileges. These include:

Instant discounts for every time you shop at Pantaloons.

Exclusive shopping days to get hold of latest merchandise.

Regular updates on collections and promos via catalogues, SMS and email.

Special invites to the most happening events.

Extended exchange periods and complimentary drops for alterations.

Exclusive billing counters and much more.

Big bazaar in association with ICICI banks has launched loyalty cards for the customers.

They are:


ICICI Bank Big Bazaar Silver Credit Card It gives you the benefits of regular cards and

additional features to make your shopping not only enjoyable but also a way to save more

with Big Bazaar.

ICICI Bank Big Bazaar Gold Credit Card, The card brings to you more reasons to save

and earn rewards on its usage. It gives you all the benefits of regular cards and additional

features to make your shopping not only enjoyable but also a way to save more with

Pantaloons Retail and Jet Airways have got into a tie-up and now a Jet Privilege customer

would avail discounts in Pantaloons.

Mahendra Singh Dhoni is appointed Brand ambassador and would be campaining for the

apparels of Big Bazzar(DJ&C) . The tagline is” Desh Badlo Duniya Bado”

MAIN COMPETITORS

GLOBUS

The Mumbai-based Rajan Raheja Group launched its first Globus department store in January

1998at Indore and since then it has become a 20-outlet strong chain with a presence in 14 cities.

Apart from the Globus department stores, the chain also runs a second retail format with Globus

2, the factory outlet format. Globus' flagship store was launched in Mumbai in November 2001.

The department store chain's customer loyalty program is called the Globus Privilege Club card

program. In 2004, the chain had seven outlets in five cities with a total space of 1, 39,658 sq.ft

by2005 their retail presence had reached eight cities with 12 stores and a total retail space of

1,94,610sq.ft. Today the chain runs 20 outlets in 14 cities with a total retail space of 2,90,000

sq.ft. Retail expansion plans include having 30 outlets by 2007, 100 by 2008, and taking it to 120

by 2010 with a total retail space of 12, 40,000 sq.ft. The chain's in-store labels apparel labels,

Globus and F21, contribute about 35 per cent towards total retail sales. Frequent consumer

promotions during peak sales periods like traditional festive seasons bring in 25-30 per cent

increase in average sales.


LIFESTYLE

The Dubai-based Landmark Group‟s department store chain, Lifestyle, started operations in

Indiain1998. It currently operates 19 Lifestyle departmental stores in nine cities with a total retail

space of7, 45,711 sq. ft. In 2004 the chain had seven stores in five cities with a space of 2,68,436

sq.ft, which grew to 10 stores in the same five cities with an increased retail space of 3,41 ,587

sq.ft. By2010 they plan to have 41 stores in 16 cities with a combined retail space of 19, 33,931

sq.ft. The average store size of a Lifestyle department store is 46,000 sq.ft, the largest of them

being the

Chennai store with an area of 75,000 sq.ft. Lifestyle now plans to majorly expand into the tier-II

cities in the country. Ginger, Baby Doll and JRS Active are the three major private labels of

Lifestyle, besides segment-specific brands like 2xtremz for women and juniors for infants. These

private labels contribute approximately towards 10 per cent to the total revenue. Its customer

loyalty program is called The Inner Circle, which contributes 40 per cent to total sales. Each of

the stores has a Coffee Island managed by Qwiky's. Lifestyle International has announced

investments to the tune of Rs.400 crore in the next five years to fund its expansion in India. This

includes plans to bring in its concept stores into the country, including the Max Hypermarkets

and Lifestyle Centers. The Max chain of value stores and Home Centers has already been

launched. Landmark is also working on a Lifestyle Centre

SHOPPERS'STOP

Shopper's Stop Ltd from the K Raheja Group opened its first Shoppers' Stop department store in

Mumbai in 1991; and over the last 16 years has established itself as the largest player in the

department store category in India. From 16 stores in nine cities with an area of7, 52,848 sq.ft,

the chain today operates 26 outlets in 12 cities with a total retail space of 15,07,126 sq.ft, with

plans to have 34 stores by 2007. By 2010 Shoppers' Stop plans to have nearly 50 outlets in 20

cities across a total retail space of 36,26,899 sq.ft. Shoppers' Stop was the first retailer in the

country to have Bar-coded garments, Co-branded credit card; and Retail ERP Shoppers' Stop,

unlike Pantaloon and Westside where the chunk of sales are driven by private labels, houses a

large number of external brands. The chain is today the largest retailer for popular brands like

Levi's Strauss, Pepe, Arrow, Zodiac, Ray-Ban, Swatch, etc.


The launch of Buzz (the designer prêt wear section) and Kasba by Raghavendra Rathore were

some new additions. Some of the chain's private labels include Stop, Life, Vettorio Fratini, Haute

Curry, individual and Acropolis, sales from which grew by 44 per cent in2005, over the previous

year. Shoppers' Stop customer loyalty program, First Citizen's Club has a proximately 4,40,000

members, who contribute to over 50 per cent of the total sales. Shoppers‟ Stop, which has tied up

with Mother care, the global brand for infants and children, will be opening40 Mother care

outlets over the next five years. It currently has 11 Mother care outlets. The bookstore section,

Crossword; as well as food and beverages outlets such as Café

WESTSIDE

The lifestyle store by the Tata‟s that caters to the upper middle class segment has built its

customer base through its USP of affordable style. There are 23 Westside stores in 14 cities Price

is crucial in the Indian retail scenario and Westside‟s focus on this factor is part of the reason. If

customers are looking for style, they will probably go to Westside and buy something for Rs

400rather than go to Mango (a UK-based chain). Another issue is convenience of parking space.

Almost everyone in major metros has a car and doesn‟t want to go through the hassle of finding

parking space. Westside has worked on molding its outlets along the snazzy, well-designed,

hands-on ambiences and coffee shop displays typical of Lactose, Nike and Switch retail stores in

the West, and personalized its offerings by offering style and accessory guides to its customers.

Westside houses a collection of the finest merchandise for the entire family. There are spacious

shopping areas for the various sections - women‟s wear, men‟s wear and the children's and the

household sections occupy the floor level. Café West from the Taj group on a level above is an

ideal place for a coffee break on a shopping spree.

Westside offers customers the very best and latest international shopping experience. Westside

has a team of dedicated stylists, merchandisers, helpful and courteous store staff and talented in-

house designers. The combination of the very latest in-style fashion with affordability is

highlighted in all of Westside‟s merchandise. Westside stands out from the competition for a

variety of reasons. One is that a majority of the brands the chain stocks and sells are its own,

unlike retailers who store multiple labels. About 90 per cent of Westside‟s offerings are home-

grown, and they cater to different customer segments. The other 10per cent includes toys,

cosmetics and lingerie. However, recently Westside has recently expanded its range of


merchandise by offering outfits from some of India‟s best-known fashion designers, among them

Wendell Rodericks, Anita Dongre, Krishna Mehta and Mona Pali. This is an interesting

marketing shift, since it means moving away from the chain‟s only-our-own-brands concept.

BUILDING CUSTOMER LOYALTY

The key to a successful business is a steady customer base. After all, successful businesses

typically see80 percent of their business come from 20 percent of their customers. Too many

businesses neglect this loyal customer base in pursuit of new customers. However, since the cost

to attract new customers insignificantly more than to maintain your relationship with existing

ones, your efforts toward building customer loyalty will certainly payoff.

Here are ways that Pantaloons follow to build customer loyalty:

COMMUNICATE: Whether it is an email newsletter, monthly flier, a reminder card for a tune

up, or holiday greeting card, reach out to your steady customers i.e. they offer green cards on

purchasing of Rs. 5000 or onwards with many discount schemes and inform the costumer about a

special or extra discounts through emails.

EMPLOYEE LOYALTY: Loyalty works from the top down. If you are loyal to your

employees, they will feel positively about their jobs and pass that loyalty along to your

customers.

EMPLOYEE TRAINING: Train employees in the manner that you want them to interact with

customers. Empower employees to make decisions that benefit the customer i.e. they provide one

month training to their employees and give knowledge about fabrics in apparels and related

products.

CUSTOMER INCENTIVES: They give customers a reason to return to their business. For

instance, because children outgrow shoes quickly, so they offer a card that makes the tenth pair

of shoes half price. Likewise, a dentist may give a free cleaning to anyone who has seen him

regularly for five years.


CHAPTER 2

RESEARCH OBJECTIVE AND METHODOLOGY

PROBLEM STATEMENT:-

Regarding Men’s formal trousers

Large numbers of customers are buying formal and semiformal shirts, but they are not

buying formal trousers.

There are some problems which are influencing the sale of formal trousers.

There are enough numbers of private level brands, should they also include more of

national brands like other retailer has, For example shoppers stop.

RESEARCH OBJECTIVE:-

The objective of the research conducted is

To do a Wardrobe study: - At a time, how many (Quantity) of the apparel in each

category, customers have in their wardrobe

To identify the factors those are influencing the sale of formal trousers

To determine customers‟ perception regarding the brands currently present in pantaloons

RESEARCH METHODOLOGY

RESEARCH DESIGN

A research design is a framework within which the study is conducted. It is a blue print of what

to collect, from where to collect, how to collect, how much to collect and what to do with the

data collected .It finds answer to: types of data, source of data, volume of data and sampling

techniques to be used for the Research.

Marketing Research project for Mens formal trouser was conducted in two phases


PHASE 1

In phase 1, pretesting of the questionnaire has been done. Where it has been tested on a small

sample of respondents (25) at Pantaloons store, Vashi

Identified and eliminated the potential problems regarding questionnaire

A final questionnaire has been made

PHASE 2

Data has been collected with final questionnaire from all the eight stores in Mumbai

1. Pantaloons: Borivali: Mumbai

2. Pantaloons: Orchid City Centre: Mumbai Central

3. Pantaloons: Lower Parel: Mumbai

4. Pantaloons: Santacruz: Mumbai

5. Pantaloons: Mulund: Mumbai

6. Pantaloons: Mega Mall: Andheri: Mumbai

7. Pantaloons: R City Mall: Mumbai

8. Pantaloons ; Center one Vashi; Navi Mumbai

TYPE OF DATA

PRIMARY DATA

Collected the following information with respect to the research objectives:

Customer‟s preference about formal wear

How often they buy a formal trouser and on an average how much they spent on

purchasing a formal trouser

What are most important factors they look while purchasing a formal trouser

Usually from where they buy a trouser

At a time how much (quantity) of apparels in each category they have in their wardrobe


Have they ever purchased a trouser from Pantaloons, if yes, what they like most and if

no, what are the reasons for not making a purchase?

SOURCE OF DATA

Quantitative data collected by Administered Questionnaire

Respondents: - Only pantaloons customers inside the stores

SAMPLING TECHNIQUES

Non-Probability

Judgmental Sampling

SAMPLE SIZE

Total sample size- 200 (Male)

Sample size of 25 respondents from each of the 8 stores in Mumbai


CHAPTER 3

LITERATURE REVIEW

MARKETING RESEARCH

Marketing research is the systematic gathering, recording, and analysis of data about issues

relating to marketing products and services. Marketing research is concerned specifically about

marketing processes.

CLASSIFICATION OF MARKETING RESEARCH

Organizations engage in marketing research for two reasons: (1) to identify and (2) solve

marketing problems. This distinction serves as a basis for classifying marketing research into

problem identification research and problem solving research.

Problem identification research is undertaken to help identify problems which are, perhaps, not

apparent on the surface and yet exist or are likely to arise in the future. Examples of problem

identification research include market potential, market share, brand or company image, market

characteristics, sales analysis, short-range forecasting, long range forecasting, and business

trends research. Research of this type provides information about the marketing environment and

helps diagnose a problem. For example, the findings of problem solving research are used in

making decisions which will solve specific marketing problems.

A similar distinction exists between exploratory research and conclusive research. Exploratory

research is conducted to explore a problem to get some basic idea about the solution at the

preliminary stages of research. It may serve as the input to conclusive research. Exploratory

research information is collected by focus group interviews, reviewing literature or books,

discussing with experts, etc. This is unstructured and qualitative in nature. If a secondary source

of data is unable to serve the purpose, a convenience sample of small size can be collected.

Conclusive research is conducted to draw some conclusion about the problem.


ROLE OF MARKETING RESEARCH

The task of marketing research is to provide management with relevant, accurate, reliable, valid,

and current information. Competitive marketing environment and the ever-increasing costs

attributed to poor decision making require that marketing research provide sound information.

Sound decisions are not based on gut feeling, intuition, or even pure judgment.

Marketing managers make numerous strategic and tactical decisions in the process of identifying

and satisfying customer needs. They make decisions about potential opportunities, target market

selection, market segmentation, planning and implementing marketing programs, marketing

performance, and control. These decisions are complicated by interactions between the

controllable marketing variables of product, pricing, promotion, and distribution. Further

complications are added by uncontrollable environmental factors such as general economic

conditions, technology, public policies and laws, political environment, competition, and social

and cultural changes. Another factor in this mix is the complexity of consumers. Marketing

research helps the marketing manager link the marketing variables with the environment and the

consumers. It helps remove some of the uncertainty by providing relevant information about the

marketing variables, environment, and consumers.

Marketing research process

1. Define the marketing problem

2. Enumerate the controllable and uncontrollable decision factors

3. Collect relevant information

4. Identify the best alternative

5. Develop and implement a marketing plan

6. Evaluate the decision and the decision process


MARKETING RESEARCH METHODS

Methodologically, marketing research uses the following types of research designs

Based on questioning:

Qualitative marketing research - generally used for exploratory purposes, small number of

respondents, not generalizable to the whole population, statistical significance and confidence

not calculated - examples include focus groups, in-depth interviews, and projective techniques.

Quantitative marketing research: - generally used to draw conclusions, tests a specific

hypothesis, uses random sampling techniques so as to infer from the sample to the population,

involves a large number of respondents - examples include surveys and questionnaires.

Techniques include choice modeling, maximum difference preference scaling, and covariance

analysis.


CHAPTER 4

ANALYSIS AND FINDINGS

QUESTION 1

1) Mostly you like to wear a formal shirt with…..

a) A formal trouser ( ) b) cotton trouser ( )

c) A basic denim ( ) d) any other, specify………………………

QUESTION 2

2) At a time how much of the following in each category you have in your wardrobe

Make a (Tick Mark) against your preferred option in each category

CATEGORY a)1-3 b) 4-5

c)6-8 d)8-10 e)More than

that

Formal shirts

Formal trousers

Denims

Semi formals/ Casuals


QUESTION 3

3) How often you buy a formal trouser?

a) Once in three month ( ) b) Once in six months ( )

c) Once in a year ( ) d) 2-3 times in a year ( )

QUESTION 4

4) On an average how much you spent on buying a formal trouser?

a) Below 600 Rs. ( ) b) 600 – 1000 Rs. ( )

c) 1000 – 1500 Rs. ( ) d) More than that ( )


QUESTION 5

What is the most important factor, you look while purchasing a formal trouser?

a) Brand ( ) b) Price ( )

c) Quality ( ) d) Fabric ( )

e) Fit/Size ( ) f) Color ( )


QUESTION 6

Have you ever purchased a formal trouser from Pantaloons?

YES NO

If YES, what did you like most

a) Brand ( )

b) Price ( )

c) Quality ( )

d) Fabric ( )

e) Fit/Size ( )

f) Color ( )

g) Design ( )

Any

other………………………………………………………….

If NO, what could be the reason, please

specify

a) Price is too high ( )

b) More brands are needed ( )

c) Quality is not good ( )

d) Sizes are not available ( )

e) Fits are not good ( )

f) Only few colors available ( )

g) Any other, please

specify………………………………………………..

Have you ever purchased a formal trouser from Pantaloons?


If yes, what did you like most?

If No, what could be the reason?


Question 7

What is your opinion about the brands currently offered by the pantaloons in formal wear?

As they have more of their private (own) brands, So

a) Should they include more of other national brands ( )

b) More options with in the same brands ( )

c) OR, You are satisfied with the current brand’s offerings ( )

pantaloons report (degree project)

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