SUMMER TRAINING PROJECT ON IMPORTANCE OF CUSTOMER LOYALITY PROGRAMME IN LARGE FORMATE RETAIL IN PANTALOON From 10th June to 25th

July

SUBMITTED FOR PARTIAL FULFILLMENT OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION By ARUNA KUMARI(ROLL NO.-1168670038) External Supervisor Name: Mr. Jatin Designation: Store Manager Name of Company: PRIL Address: GIP NOIDA Internal Supervisor Name: Mrs. Preeti Rajan Designation: Asst.Professor Grater Noida

Accurate Institute of Advanced Management Greater Noida (Affiliated to MTU and Approved by AICTE)

Accurate Institute of Advanced Management

(Affiliated to MTU and Approved by AICTE)

______________________________________
Mr. Rajnish Khare Assistant Professor Certified that the Project Research Report entitled IMPORTANCE OF CUSTOMER LOYALITY PROGRAMME IN LARGE FORMATE RETAIL IN PANTALOON has been prepared by Aruna Kumari under my supervision. Mr. Rajnish Khare has prepared the Report during 4 th Semester prescribed under MBA Ordinance governing the award of the Degree of MASTER OF BUSINESS ADMINISTRATION, Mahamaya Technical Date

University, NOIDA, and the Report embodies the result of his study and investigation conducted during the period he worked as a regular student. The report is of the standard expected of a candidate for the partial fulfillment of MBA Degree and I recommend that it may be evaluated.

(Mrs. Preeti Rajan) Supervisor

Plot No. 49, Knowledge Park-3, Greater NOIDA-201306 (UP), Phone: 01202328235, Fax: 0120-2320355 E. Mail.: info@accurate.in, Web: http//www.aiam.in
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DECLARATION

I, hereby state that the project report titled IMPORTANCE OF CUSTOMER LOYALITY PROGRAMME IN LARGE FORMATE RETAIL IN PANTALOON of PANTALOON RETAIL(INDIA) LTD. is an original work done entirely by me and is based on my own observations. The facts presented here are true to the best of my knowledge.

Place: NODIA
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(ARUNA KUMARI)

Date: 21- June- 2012

PREFACE
During post graduation in master of business administration program, Students comes direct contact with the real corporate world through the Industrial training. MBA program provides its students with an in-depth study of various managerial activities that are performed in any organization. It is great privilege for me to place this report before the readers. The report is concerned with IMPORTANCE OF CUSTOMER LOYALITY PROGRAMME IN ARGE FORMATE RETAIL IN PANTALOON for PANTALOON RETAIL(INDIA) Ltd. This report is proposed in a very simple and understandable language. I would also like to start that although every possible care has been taken to make this report error free. I shall feel highly obliged to all the readers if the same are brought to my notice. I sincerely express my gratefulness to all those who have directly or indirectly helped me in preparing this report. I have spent my 6 weeks, prime time to under and the function of MARKETING and SALES Section .

In brief I can say that this project is a summary of all the information and knowledge, I have gathered during my training period.

Aruna kumari Roll no.:-1168670038

ACKNOWLEDGEMENT
This project is an authenticated work on Summer Training project at PANTALOON RETAIL(INDIA) Ltd. Noida Uttar Pradesh. This project which is on IMPORTANCE OF CUSTOMER LOYALITY IN LARGE FORMATE RETAIL IN PANTALOON RETAIL(INDIA) Ltd. provides details regarding the new opportunities in the market. I would like to take this opportunity to thank all the people, who extended their immense help to complete my project. I would like to thank my project supervisor Mr. JATIN CHAWLA, Head MARKETING And SALES, PANTALOON RETAIL(INDIA) Ltd. who spent his valuable time to discuss about the project and his continuous co-operation to me and for guiding and helping me to solve all kinds of quarries regarding the project work. I would also like to thank to my mentor DR. Santosh singhal for their useful guidance and advises. Last but not the least I would like to thank all the employees of PANTALOON RETAIL(INDIA) Ltd. who have directly or indirectly helped me with their moral support for the completion of my project.

Student Name: Aruna Kumari Roll no. : 1168670038 Signature: Date

SUPERVISORS CERTIFICATE

This is to certify that project titled, importance of customer loyality in large formate retail in pantaloon carried out by aruna kumari, student of MBAII year at ACCURATE INSTITUTE OF ADVANCED MANAGEMENT, Greater Noida, under my supervision. This is an original work carried out by the said student to the best of my knowledge and I recommend for the submission of this research project.

(Mr. Jatin) STORE MANAGER PANTALOON(INDIA)RETAIL LTD.

DIRECTORS CERTIFICATE
This is to certify that project titled, IMPORTANCE OF CUSTOMER LOYALITY PROGRAMME IN ARGE FORMATE RETAIL IN PANTALOON for PANTALOON RETAIL(INDIA) Ltd. carried out by ARUNA KUMARI, student of MBA II year at ACCURATE INSTITUTE OF ADVANCED MANAGEMENT, Greater Noida, under the supervision of Dr. Santosh singhal (Faculty Supervisor, AIAM, Greater Noida). This is an original work carried out by the said student to the best of my knowledge and I recommend for the submission of this research project.

(Dr. Anoop pant) Director (AIAM)

TABLE OF CONTENTS

S.N
1. 2. 3. 4. 5. Declaration. Preface.

PARTICULARS

PAGE NO.
2 3 4 5-7 10-29 15-16 16-21 21-24 25-26 26-27 28-29

Acknowledgement. Certificates. Company Profile. (a) Management Team (b) -Group Companies. (c) Competitiveness & Commitments. (d) Mission And Vision Statement. (e) SWOT Analysis. (f) -Products And Customers.
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6. 7. 8. 9. 10. 11.

Objective Of The Project. Methodology Of The Project. Die casting Cold chamber machines for die casting Price list of various die casting parts Images of die casting parts

30 31-32 32-33 34 35 36-39

12. 13. 14.

Forecasted sales Sales of different types of die casting parts Observations

40 41 42

CHAPTER - 1

INTRODUCTION OF THE TOPIC

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Introduction of The Topic

Pantaloon Retail (India) Limited, is Indias leading retailer that operates multiple retail formats in both the value and lifestyle segment of the Indian consumer marker, along with some other big names such as RPG, Shoppers Stop, Life Style, Westside, Ebony, Piramyd etc.The reason why I chose this sector is because as there are huge opportunities in this sector in the coming years. India was not into retail before 10 years from now but now it is very much into organized retailing. There is cut through competition in this field. Every alternate day we hear of a new companies getting into Retail sector, where this makes competition tough. I felt if I have experience in Pantaloon than I would be equipped to face the challenges that will come across while working in this sector. I was in Finance as well as Marketing along with T r a n s a c t i o n s . I felt that while doing out marketing projects for the Pantaloon store I will have well expose & experience of this field. I got to learn a lot about retailing, marketing in retail sector, knowing different people, how exactly product reaches final
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consumer, how all theses things are decided and how. This is the reason why Retail sector influences me the most. Since I was involved into marketing for different event of the store where all the parameters has to be considered which made this project more challenging & interesting. The study Sale & Store Operations Activities at Pantaloon The study showing Product segment and consumer satisfaction. with special reference to Pantaloons Retail India ltd It describe the attitude behind the purchasing of product by any middle income level segment. This research is done at GIP NOIDA.

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CHAPTER -2
INTRODUCTION TO THE RETAIL ORGANISATION

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INTRODUCION OF THE ORGANISATION

(Retail Industry)

INDIAN RETAIL INDUSTRY-AN OVERVIEW

Growth in Indian organised retail has been driven by the countrys economic fundamentals over the past few years, including an increase in the proportion of upper income households, rising consumption expenditure and greater use of credit productds. Consumers are showing a growing preference for Organised retail, resulting in increased penetration, from around 1% of total retail consumption in 1999 to nearly 6% in 2009 (or some INR350billion)1. Organised retail continues to be focused on food & groceries and apparel. Key players have continued to customise their formats to better service their target markets. For example, the hypermarket format has rapidly gained popularity and is likely to expand the fastest, even though largely confined to Indias bigger cities. Competition in the supermarkets segment is likely to intensify, squeezing margins. Gaining critical mass and promoting private labels will be critical to profitability. The department store format is likely to show strong growth, again largely restricted to the larger cities.

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 Speciality retail is also evolving in categories such as durables and jewellery, but remains in its infancy. The financial flexibility of larger retailers has improved significantly over the past two years with new financing sources becoming available. The industry is thus gaining acceptance within the investor community. However, the pace of expansion has resulted in negative free cash flows for most retailers as internal accruals have proved insufficient to meet expansion plans. Retailers are using a combination of better bargaining power with suppliers, investments in supply-chain infrastructure to improve inventory management and the promotion of private labels to enhance margins. Larger retailers like Shoppers Stop Ltd (Shoppers Stop) and Pantaloon Retail India Limited (PRL), Trent, RPG have realized operational efficiencies, as reflected in their financial performance.

The rapid development of malls in India over the past few years in the major cities is expected to continue in the medium term and benefit retailers by increasing the availability of retail-focused real estate. Sector growth prospects are likely to be limited by factors such as restrictions on FDI (foreign direct investment), the lack of a uniform tax structure, increasing pressure on infrastructure in key consumer markets and a shortage of quality real estate. However, the government has attempted to alleviate these issues, proposing various regulatory changes (e.g. VAT legislation and FDI specifically for construction), which should prove beneficial in the medium to long term.
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 The report covers Indian structure of Discount Stores and key trends in the industry. Analysis of Retailing management, Technical Aspects and Trends used in promotion are extensively covered. Also the Michael porters 5-forces analysis, SWOT analysis and analysis of value drivers for Big Shopping Malls will throw the details and business dynamics of major hypermarket retailers in India.

1. RETAILING - INTRODUCTION

1.1

Retailing A Conceptual Overview

Definition of Retailer
Retailer is a Person or Agent or Agency or Company or Organization who is instrumental in reaching the Goods or Merchandise or Services to the End User or Ultimate Consumer.

What is retailing?
The word "Retail" originates from a French-Italian word.

Retailer - someone who cuts off or sheds a small piece from something.
Retailing is the set of activities that markets products or services to final
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consumers for their own personal or household use. It does this by organizing their availability on a relatively large scale and supplying them to customers on a relatively small scale. Retailer is a Person or Agent or Agency or Company or Organization who is instrumental in reaching the Goods or Merchandise or Services to the End User or Ultimate consumer.

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Traditional Retailing Process

Fig-1

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19

1.2 Why is Retailing Important?

As the final link between consumers and manufacturers, retailers are a vital part of the business world. Retailers add value to products by making it easier for manufactures to sell and consumers to buy. It would be very costly and time consuming for you to locate, contact and make a purchase from the manufacturer every time you wanted to buy a candy bar, a sweater or a bar of soap. Similarly, it would be very costly for the manufactures of these products to locate and distribute them to consumers individually. By bringing multitudes of manufacturers and consumers together at a single point, retailers make it possible for products to be sold, and, consequently, business to be done.

Retailers also provide services that make it less risky and more fun to buy products. They have salespeople on hand who can answer questions, may offer credit, and display products so that consumers know what is available and can see it before buying. In addition, retailers may provide many extra services, from personal shopping to gift wrapping to delivery, that increase the value of products and services to consumers. According to the National Retail Federation, 1 in 5 American workers is employed in the retail industry. In India also the retail sector is the second largest provider of employment. It provides 8% of the total employment in India

Retailing involves various activities of shopping, such as purchasing through the internet, dealing in financial services, eating at the restaurant, visiting the beauty parlor etc. This indicates the complexity involved in retail marketing operation. Due to the constant charges occurring at the market place, the term retailing also has undergone changes. Nevertheless, Retailing can be referred to all activities involved in the marketing and distribution of goods and services.

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Thus, retailing the set of business activities which adds value to product and services sold to consumers for the personal of family use.

Retailing is not only important aspect of the economic structure but very much part of our lives, although trading of goods have been in existence since the olden days, it is only in the recent past that buying and selling of goods have become more of formal brand dominated activity. In fact, today retailing is evolving into a global, high-tech business. Nevertheless, the traditional forms of independently owned small business co-exist along with the organized retailers like department stores, especially stores, shopping complexes, malls, large scale multiple chain etc

Organized retailing has emerged in a big way since 2000 onwards and with it; we are witnessing the emergence of new form of retailing. The retailers market can be segmented on the basis of various retail formats to concentrate or focus on the needs of particular consumer group. Ultimately, this has led to the development of a very complex retail environment. With the increase in competition in the retailing market, retailers are seeking new consumer groups and new way to tap the market. Some of the important reasons for the growth in the consumer demand for retail outlets could be that there is a growing middle class of consumers with high disposable income, rise in consumer aspiration level for global lifestyle due to media exposure etc.

1.3 Retailing marketing mix in brief

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The elements of the marketing mix encompass the facts in the table below. The table depicts consumer service as the crux of the whole activity.

Retail marketing mix: the 7Ps

Product

Merchandise, Range, Quality Level, Brand Name, Service Line, Warranty, After Sale Services Value, Cost, Discounts, Allowances, Commissions, Payment Terms, Gross Margins, Profit, Business Expenses Location, Supply Channel, Convenience, Relationships, Logistics, Transport, Warehousing Channel

Price

Place

Promotion

Advertising, Personal Selling, Sales Promotion, Publicity, Public Relation Personal Training, Commitment, Incentives, Appearance, Inter Personal Behavior, Attitudes, Relationship Marketing Environment, Furnishing, Color, Noise Level, Facilitating Goods Policies, Procedures, Mechanization, Employee Discretion, Flow Of Activities

People

Physical Evidence Process

(Adapted from Retail marketing management, David Gilbert) Table-1

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The retail marketing mix has to be combined across its different parts so that each aspects of the mix reinforce and reflects the other part of the mix. This will create a synergy effect where the whole becomes greater than some of the parts. The combined mix has to be positioned so as to create a clear proposition for the customer.

1.4 Characteristics of Retail Industry The spectrum of Retail Industry is quite wide in nature. Retail serves consumers through a small grocery store to a huge departmental store. Retail Industry is heavily dependent on consumer spending. In fact 2/3 of US GDP is coming from Retail business. Retail is the second largest industry in US. It has employed 23 Million people. During economic slow down consumer spending decreases and it poses threat to the Retail industry. Consumers confidence is one of the key drivers of the industry.

Decline in Small Stores

It is observed that small independently owned stores are gradually loosing their foothold in the market place. These stores are generally called Mom and Pop stores and they offer limited merchandise to the consumer. These stores are facing stiff competition from the large departmental stores or superstores and in this process they are closing down their shutters. In many locations the arrival of a superstore has forced nearby independents out of business. In the book selling business Barnes & Noble superstore or Borders Books and music usually puts smaller bookstores out of business. This is a major characteristic prevailing worldwide. But it is also true that many small independent outlets still thrive by knowing their customers better and providing them with more personalized service.

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Internet and E-Commerce

Internet the ubiquitous medium has opened a new avenue in front of the Retailers. It has offered an opportunity to the consumers to shop from the home. As it stands today overall Retail sales through internet may not be that significant but gradually it is gaining popularity amongst consumers. Amazon.com is the company which is very successful in this E commerce domain.

Repositioning of Departmental Stores

The appeal of big departmental store is in the wane and they are trying to reposition themselves. They are repositioning their product lines to survive in this highly competitive market eg. A departmental store which is supplying general merchandise to the consumer is changing them to a giant apparel store.

Rise in Discount stores

Supremacy of Discount store is also one of the distinct characteristics of Retail Industry today. Discount stores offer money back guarantee, every day low price etc to lure customers. They also provide floor help and easy access to the merchandise to facilitate the consumer. Wal- Mart the worlds largest Retailer comes under this category of Retail store.

Category Killers
There are Retailers who actually concentrate on one particular product category and grab a lions share of that market and outperform their competitors. They are called Category Killers. Toys R Us (Toy market ), Home Depot (Home Improvement) , Staples (Office Supplies) are the examples of such Retailers who have grabbed a major market share in that product category and they have forced a reduction in the number of players in that product segment. This is also a
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distinct trend observed in the current Retail market. Ten years back there were number of players in the toy market and no one was controlling more than 5% of market share but now the number of players has come down to six and Toys R Us is enjoying 20% market share.

Direct Marketing
With the advancement of technology Retailers have found another sales channel through which they can reach the consumer and this is direct marketing. Direct marketing has their root in direct mail and catalog marketing (Lands End and LL Bean). It includes telemarketing, television direct response marketing. (Home shopping network, QVC) Although an overwhelming majority of goods and services is sold through stores, non store Retailing is also growing at a faster rate. Direct selling is $9 Billion industries with around 600 companies selling door to door. Avon, Electrolux, Southwestern Company, Tupperware and Mary key cosmetics are the examples who have adopted this strategy successfully.

Demographic Changes
Retail industry is impacted by the demographic changes. As a result of this change taste of the consumer is undergoing a change and it creates a demand for certain products. World wide Retailers are keeping a close watch on this change and they are trying to realign themselves with this change.

Mergers and Acquisitions

Retailers who want to dominate the market place have adopted the strategy of mergers and acquisitions. This is also one of the distinct trends in Global Retail Industry today. Instead of achieving an organic growth Retailers can grow significantly with the help of mergers and acquisitions.
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This helps them to occupy more shelf space in the market place. As the volume increases they are establishing better control over their suppliers and they are reducing the procurement cost and in that way they are boosting their profitability. This is driven by the economic growth factors, size, revenue pattern and the customer demand. Sears and Lands End merger is one of the significant mergers which have happened in recent times. Another important example would be Nikes acquisition of Hurley, a well known surfing brand. This has helped Nike to enter in to a new market segment.

1.5 Operational Issues in Organized Retailing

In order to survive in this Industry, which is driven by the consumer demand Retailers need to successfully counter the operational issues. If the Retailers fail to diagnose and address those operational issues their existence will be jeopardized.

Supply Chain Management and Logistics

The process of getting goods to the customer has been traditionally known as Physical Distribution. Physical Distribution starts at the factory and it ends at the store. Nowadays the definition of Physical distribution is expanded and a broader concept has come which is Supply Chain Management. Ideally Supply Chain Management encompasses the material flow from suppliers suppliers to the final destination. Retailers need to have a grip on that whole chain in order to control the procurement and delivery cost. This will help them to choose the right supplier for the merchandise. Retailers need to come out of the constricted view about the supply chain which is viewing the market as a point to point destination; instead they need to consider the holistic picture which is a part of Market Logistics. Market Logistics involves physical flow of materials from point of origin to the point where it meets the customers requirement.
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This Demand Chain orientation can help them to cut down the procurement cost to a great extent. IKEA the global furniture retailing giant has successfully addressed this issue and they are able to sell quality furniture at a much lower cost than his competitors.

Pricing
In Retailing environment pricing has become a burning issue to the retailers. Customers expectation from a Retail store has become very high and customers are looking for more and more bargain prices. This situation can be referred as Price drought. Price deflation is taking hold in the Retail environment and any reduction in volume is complicating the scenario further. This trend is quite evident in Apparel and Consumer goods market. Pricing seems to be a key positioning factor and must be decided in relation to the target market, Assortment mix and competition. Strategic pricing has become an important strategic tool to the retailers. Airlines

Industry started this strategic pricing technique where the underlying philosophy is not all consumers want a particular product at the same time and the degree of demand will also vary. With this idea in mind different consumers are charged different prices for the same product or service.

Retailers need to adopt the right pricing tactics in this environment of fierce competition. Retail stores markdown the price for some items to attract people, this is called traffic building. They also run storewide reduction sell. It is observed that a shoe Retail outlet sells 50% of the product at normal mark up, 25% of the product at 40% mark up and remaining 25% at cost. Some Retailers have done away with sales pricing and they are resorting to everyday
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low price (EDLP). It leads to lower advertising cost, greater pricing stability and higher Retail profits. Wal- Mart uses this kind of pricing strategy.

Sales Channels
Design of sales channel is also a key operational issue in todays Retail industry. Technology has become one indispensable business component and Retailers need to make use of this successfully. Retailer needs to come out from the mindset of traditional store retailing and they need to use all available channels to reach a wider consumer community. Amongst Non store Retail channels Internet and E commerce is gradually gaining popularity. Consumers do not need to come to store for buying goods or service they can do that over a click of a button from their drawing room. Retailers need to derive benefit from that. Marketing through call centre or catalogue marketing is also an emerging trend. Retailers need to choose sales channels productefully and need to use all those channels effectively to acquire more customer centricity. Ultimate objective here is to offer a consumer a tailor made shopping experience and to provide more easy access to his product and service offering.

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CHAPTER-3
Introduction of Organization

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Introduction of The Organisation

PANTALOONS PROFILE: Pantaloon Retail (India) Limited is India's leading retailer that operates multiple retail formats in both the value and lifestyle segment. Pantaloon has ushered a retail revolution in India and its founder Kishore Biyani is known as India's "King of Retail". Pantaloon's headquarter is in Mumbai(Bombay), the company operates over 12 million square feet of retail space, has over 1000 stores across 71 cities in India and employees over 30,000 people. The companys 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. Future Value Retail Limited is a wholly owned subsidiary of Pantaloon Retail (India) Limited. This entity has been created keeping in mind the growth and the current size of the companys value retail business, led by its format divisions, Big Bazaar and Food Bazaar. The company operates 120 Big Bazaar stores, 170 Food Bazaar stores, among other formats, in over 70 cities across the country, covering an operational retail
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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 eZone focused on catering to the consumer electronics segment.

Pantaloon Retail was recently awarded the International Retailer of the Year 2007 by the US-based National Retail Federation (NRF) and the Emerging Market Retailer of the Year 2007 at the World Retail Congress held in Barcelona.

Pantaloon Retail is the flagship company of Future Group, a business group catering to the entire Indian consumption space. Pantaloon Retail (India) Limited is India's leading retailer that operates multiple retail formats in both the value and lifestyle segment. Pantaloon has ushered a retail revolution in India and its founder Kishore Biyani is known as India's "King of Retail". Pantaloon's headquarter is in Mumbai(Bombay), the company operates over 12 million square feet of retail space, has over 1000 stores across 71 cities in India and employees over 30,000 people. The companys 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
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Factory,

Blue

Sky,

aLL,

Top

10

and

Star

and

Sitara.

Future Value Retail Limited is a wholly owned subsidiary of Pantaloon Retail (India) Limited. This entity has been created keeping in mind the growth and the current size of the companys value retail business, led by its format divisions, Big Bazaar and Food Bazaar. The company operates 120 Big Bazaar stores, 170 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 eZone focussed on catering to the consumer electronics segment. Pantaloon Retail was recently awarded the International Retailer of the Year 2007 by the US-based National Retail Federation (NRF) and the Emerging Market Retailer of the Year 2007 at the World Retail Congress held in Barcelona. Pantaloon Retail is the flagship company of Future Group, a business group catering to the entire Indian consumption space.

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INTRODUCTION OF INDIAN RETAIL KING

MEETINDIA'SKINGOFRETAIL MR.KISHOREBIYANI Unlike most people, Kishore Biyani makes no bones about his simplicity. He's the man you're most likely to ignore at the Pantaloon or Big Bazaar store, as he stands in a corner observing the way you shop. But make no mistake; what he may lack in sartorial style, he more than makes up through his observation powers.

You'll never catch him in a tie and jacket. He isn't a stickler for large products, and has just graduated from driving a Honda City to a Honda Accord, though he's just as content driving around in a junior manager's Maruti 800.

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He is a strict vegetarian, and is currently off cheese and fried foods, but will otherwise eat anything that is green.

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Pantaloon's Kishore Biyani has become India's largest retailer, but still has several aces up his John Miller shirtsleeves. In India's chaotic markets, Kishore Biyani is the unchallenged king of retail. He has the knack of catching rivals off-guard and striking where it hurts most. Biyani's victory isn't unexpected. India's own Sam Walton (the legendary promoter of Walmart) is quick to seize any advantage. Which is why the denim manufacturer who quit the trade because "it wasn't creative enough" commands over 1.3 million sq ft of retail space. But even size hasn't made a difference to Biyani's vaulting ambitions and he's on an even faster trajectory of growth. He's booked over 4.5 million sq ft of space across the country, and will utilise 3 million sq ft by this year's end in 23 Indian cities. He will invest over Rs 200 crore (Rs 2 billion) to make this dream a reality. Says R S Roy, editorial director of the magazine Retail, which tracks the industry closely: "Mall developers have him in mind before they start constructing. His presence ensures footfalls and a premium for the mall."

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Two years ago, no one took Kishore Biyani seriously. His company, Pantaloon Retail, was seen as a one-man show. Biyani himself was regarded as unpredictable, and not a long-term bet. Today, he is the biggest retailer in India. In two years, Kishore Biyani has bounced back to become India's largest retailer.

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Table- 2

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MILESTONES TO SUCCESS:

- Company incorporated as Manz Wear Private Limited. Launch of Pantaloons trouser, Indias first formal trouser brand.

1991 - Launch of BARE, the Indian jeans brand.

- 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. - John Miller Formal shirt brand launched.

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1997 - Pantaloons Indias family store launched in Kolkata.

2001 - Big Bazaar, Is se sasta aur accha kahi nahin - Indias first hypermarket chain launched.

2002 - Food Bazaar, the supermarket chain is launched.

2004 - Central Shop, Eat, Celebrate in the Heart of Our City Indias first seamless mall is launched in Bangalore. 2005 Fashion Station the popular fashion chain is launched aLL

a little larger exclusive stores for plus-size individuals is launched.

2006 - Future Capital Holdings, the companys financial arm launches real estate funds Kshitij and Horizon and private equity fund Indivision. Plans forays into insurance and consumer credit. Multiple retail formats including Collection i, Furniture Bazaar, Shoe Factory, EZone, Depot and futurebazaar.com are launched across the nation. Group enters into joint venture agreements with ETAM Group and
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Generali

Pantaloon Retail (India) Limited, is Indias leading retailer that operates multiple retail formats in both the value and lifestyle segment of the Indian consumer marker. Headquartered in Mumbai (Bombay), the company operates over 5 million square feet of retail space, has over 350 stores across 40 cities in India and employs over 18,000 people.

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The companys 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, Depot, Shoe Factory, Brand Factory, Blue Sky, Fashion Station, aLL, Top 10, mBazaar and Star and Sitara. The company also operates an online portal, futurebazaar.com.

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

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

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FUTURE GROUP:
Future Group is Indias leading business group that caters to the entire Indian consumption space. Led by Mr. Kishore Biyani, the Future Group operates through six verticals: operates through six verticals: Retail, Capital, Brands, Space, Media and Logistics.

Apart from Pantaloon Retail, the groups presence in the retail space is complemented by group companies, Indus League Clothing, which owns

leading apparel brands like Indigo Nation, Scullers and Urban Yoga, and Galaxy Entertainment Limited that operates Bowling Co, Sports Bar, F123 and Brew Bar. The groups joint venture partners include French retailer ETAM group, USbased stationary products retailer, Staples and UK-based Lee Cooper. Group Company, Planet Retail, owns and operates the franchisee of international brands like Marks & Spencer, Next, Debenhams and Guess in India. The groups Indian joint venture partners include, Manipal

Healthproducte, Talwalkars, Blue Foods and Liberty Shoes. Future Capital Holdings, the groups
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financial arm, focuses on asset

management and consumer credit. It manages assets worth over $1 billion that are being invested in developing retail real estate and consumer-related brands and hotels. The group has launched a consumer credit and financial supermarket format, Future Money and soon plans to offer insurance products through a joint venture with Italian insurance major, Generali.

The group is currently developing over 50 malls and consumption centers across the country and has formed a joint venture company focusing on mall management with Singapore-based CapitaLand, one of Asias largest property companies .

Future Groups vision is to, deliver Everything, Everywhere, Every time to Every Indian Consumer in the most profitable manner. The group considers

Indian-ness as a core value and its corporate credo is - Rewrite rules, Retain values.

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Companys vision: Future Group shall deliver Everything, Everywhere, Everytime for Every Indian Consumer in the most profitable manner.

Companys Mission: 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.

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PARTNER COMPANIES OF PANTALOON

1. 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, and Electronics Bazaar.

2.

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.

3.

Indus league clothing Ltd. : The group owns a majority stake in Indus
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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 Jealou

4.

Galaxy Entertainment Corporate Ltd. :

The group owns a stake in Galaxy Entertainment Corporate Ltd. that operates chains like Bowling Company, Sports Bar and Brew Bar.

JOINT VENTURES COMPANIES

1.

Planet Retail Holdings Ltd. :

The group is a joint venture partner in Planet Retail Holdings Ltd., which operates sports, lifestyle and leisure retail chain. It also owns the franchisee and distribution rights of brands like Marks & Spencer, Guess, Debenhams and Puma in India.

2.

Footmart Retail:

Footmart Retail is a joint venture with Liberty Shoes and is engaged in the
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retailing of footwear products in India.

3.

Capital Land Retail India:

The group is a joint venture partner in CapitaLand Retail India, along with Singapore-based CapitaLand Limited. The company provides retail

management services to retail properties owned or managed by various group companies and investment funds

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LINE OF BUSINESS

e telling

Futurebazaar.com offers the widest range of products at lowest prices everyday! Having pioneered the retailing business in India, PRIL has now decided to revolutionize the consumer e-commerce business in India. It intends to provide customers with a streamlined, efficient and world class

personalized shopping experience, which will be supported with the best technology platform. Buying products is a 3 step simple process. All one has to do is Search, Register and Buy. Here you can expect a shopping experience akin to shopping at an actual bazaar but with added simplicity & everyday low prices and an assurance of 'your product' will be delivered within 7 days of purchase.
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We are proud to inform you that Future Bazaar has been named as the Best Indian Website 2007 in the Shopping category by PC World.

Future Bazaar won the top spot after beating other established players like Rediff, Indiatimes, Sify, ebay, Indiaplaza, Chennai Bazaar and India Mall. The award was presented to Future Bazaar for its "decent, nononsense approach, while providing a good shopping experience".

2.Food Brew Bar: The Brew Bar is a classy and refined; yet reasonable an egalitarian a bar with loads of bonhomie.

Caf Bollywood: Indian street food but with assurance of highest levels of hygiene and quality.

Chamosa: Chamosa is a branded chain, which sell the local Indian snack combination of tea and samosas.
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Food Bazaar: Life is all about good taste and food bazaar aims to ensure the same. With the low prices, a wide selection of products and guaranteed freshness, you are bound to find it irresistible.

Sports Bar: A bistro focused on the world of sport, the Sports Bar is complimented with an unrivalled ambience.

3.Fashion:

ALL: Shop big and shop for big, coz fashion just got a little larger! Fashion for plus size people.

Big Bazaar: If value for money is what drives your purchase; there can be no better place for you other than Big Bazaar.

Blue sky: Accessories like never before....get the best in sunglasses and watches at your kind of prices.

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Central: A showcase, seamless mall for all your needs. Located in the heart of your city, Central invites you to Shop, Eat, and Celebrate.

Fashion station: Fashion Station takes fashion a notch higher in the value segment... for the ones who have an eye for it. Giny & Jony: Gini and Jony is a lifestyle brand with a radical approach to kids fashion. The brand caters to an age group of 2 to 16 years, that is uber chic, style conscious and stresses on a head to toe fashion concept.

Navaras: Navaras is a fine 22 productat pure gold and diamond jewellery brand, retailed from Big Bazaar stores.

Lee Cooper: Regarded as a brand that is fun to wear and be associated with, Lee Cooper offers the entire range of lifestyle products in fashions category for young men and ladies.

Pantaloons: Today a leader in fashion... Promises Fresh Fashion for the young and trendy.
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Top 10: Top 10 is based on the concept of the ever popular countdown shows, where the trendiest styles get ranked from 1 to 10; the highest selling item gets the highest ranking!

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BOARD OFDIRECTORS

MANAGING DIRECTOR:

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

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WHOLE TIME DIRECTOR:

Mr. Gopikishan Biya Mr. Rakesh Biyani.

NON- WHOLE TIME DIRECTOR:

Mr. Ved Prakash Arya.

INDEPENDENT DIRECTORS:
Mr. Shailesh Haribhakti. Mr. S Doreswamy. Dr. D O Koshy. Ms. Anju Poddar. Ms. Bala Deshpande.
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Mr. Anil Harish.

Major Achievements of Pantaloon Retail Images Fashion Forum 2009 Most Admired Fashion Group Of The Year - Future Group & 2008 Most Admired Private Label - Pantaloons, the lifestyle format Critics Choice For Pioneering Effort In Retail Concept Creation 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 Retail Face of the Year - Kishore Biyani
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 Big Bazaar

Best Retailer Of The Year ( Hypermarket)

The INDIASTAR Award 2008 Food Bazaar: Best Packaging Innovation Retail Asia Pacific 500 Top Awards 2008 Gold Winner -Top Retailer 2008 Asia Pacific 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 recent Pantaloons Style Inc awards saw a packed house cheer on as eminent head honchos from various industries walked the ramp and battled it out for the title of most stylish corporate icon. And who better to judge the men than an all-women celebrity jury panel! The power-packed panel comprised Schauna Chauhan, CEO, Parle Agro, ace fashion photographer Manmeet Bhatti and celebrity nutritionist Dr Anjali Mukherjee, MD and Co-Chairperson, Dr Anjali Mukherjee's Total Health.

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Pantaloons in-house brands such as John Miller, Bare, Oye, HNY, Annabelle, Scotsville and Ajile. Besides they have favourite international brands such as Pepe, Lee Cooper, Gili, Disney, Dockers, Chromozome, Shapes, Turtle, Upper Class, UMO, Jean Paul, Jockey, Popeye, Revlon, Lakme, Maybelline, Chambor and Bacproductose. FASHION: Pantaloons, Central Big Bazaar and Fashion Station FOOD: Food Bazaar GENERAL MERCHANDISE: Central Malls and Big Bazaar
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SPECIALITY RETAILING: All , Blue Sky HOME: Home Town, E-Zone, Furniture Bazaar, Electronics Bazaar, Collection I and Mela BOOKS AND STORES: Depot COMMUNICATIONS: M- Zone and Converge M WELLESS: Star and Sitara, Fit & Healthy E-TAILING: Futurebazaar.Com FOOTWEAR: Shoe Factory LEISURE AND ENTERTAINMENT: Bowling Co, Rain, Bollywood Caf, Chamosa, Fuel, Sports Bar, Food Stop and Your Kitchen.

The Affiliate Companies of Pantaloon Retail (India) Limited : Home Solutions Retail (India) Limited offers complete retailing solutions for all products and services related to home building and home improvement. Pantaloon Food Product (India) Limited (PFPIL) was incorporated with the object of sourcing and backward integration of food business of the Company.

Marketing Policy Focus :58

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

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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 segement (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
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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 its the mens 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.

Promotional 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, since the companys 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
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promotes its products through discounts. For Example-In Pantaloons (life style segement) 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.The company 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

Sectoral Strategies :- India has been a country which followed the concept of un-organized retail till very recently when the real retail boom happened. The major change was brought in by Pantaloon and Shoppers Stop. Both these companies belonged to a family and the concept of malls started in India and within 5 to 9 years has become a huge sector. Retail contributes 10% to Indias GDP. The retail sector in the country is around $350billion and is expected to grow at a very smooth pace. The organized retail sector is segmented into different types like the hyper market, departmental store, speciality stores ,discount stores and there are other types .

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
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PLC and ResponsesMarketing ActivitiesPantaloons Retail Company 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 of all 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 and many more .Pantaloons also sponsors events like Femina Miss India. It has also increased its advertisement expenditure budget from 20crores to Rs 40 crores during IPL season. It has also sponsored many International Cricket Tournaments. Since the target market is different the marketing mix is different too. Big Bazaars In 2001, PRIL opened its first 'Big Bazaar,' a 30,000 square feet store in Kolkata (See Exhibit II for a Picture of a Big Bazaar Store). The major USP of the 'Big Bazaar,' store was low pricing. These stores offered the best price proposition to customers. The Marketing Activities for Big Bazaar are very different .Since it is a Hyper-Market and the Target Market are the masses the company markets a lot through the print media.The coverage of this is even better. In Big Bazaar marketing is purely done on offers and there are Maha Sales once a year and the sales rise 3 times in those 3 days.
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As part of this, the stores focused less on branded items and more on unbranded products with the same quality as branded ones, at a much cheaper rate. Commenting on this, Biyani said, "We are not in the business of selling ambience, but in the business of giving the best possible deals to our consumers."... Food Bazaar

The first Food Bazaar was set up in Lower Parel in suburban Mumbai in 2001. Food Bazaars represent PRIL's foray into yet another value retailing business, focusing on food and grocery products. These stores were designed based on PRIL's understanding of the emotional and rational needs of Indian housewives... They follow the Guerilla Marketing Strategy to sell their products by offering high discounts etc Product Category:Pantaloons Retail India Limited is a company which has many branches like Pantaloon, Big Bazaar, Food Bazaar etc .There are various products available in various stores .The three stores by themselves categorize various products according to their target markets . Pantaloons has its flagship product since its inception Bare and it is only available in Pantaloons and not in any other Pantaloons Retail Company Limited Store but if there are some unsold stock which needs to be sold then they sell it in Big Bazaar.Very recently the company had opened a new mall called Sobo-Central in Mumbai Tardeo were there are various products like apparels, accessories ,electronic gadgets etc available at different storeys of the mall and all the products are well segmented according to the needs of customers. Ladies Apparel and related products on the entire first floor, mens wear on the second floor and this how it goes on.

Product Life Cycle:

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Bare is the oldest product offered by Pantaloons ever since it was incorporated. It is the companys flagship product and is in the market since a long time. Bare was first introduced as a mens formal wear when Pantaloons had started its operations. Then, the company also introduced Bare Cotton Pants. The product was doing really well and was sold very extensively over the years. The company then introduced Bare Jeans which was mainly positioned for the youth. The company would aggressively sell the product through various discount offers and they have successfully able to change the design , introduced a lot of variations in Bare to keep the product going. Now they have re-introduced Bare with new-formal Bare shirts .These shirts are formal shirts and they are suited for working executives were they are offering some discounts with Bare Formal pants. This is how they have sustained and increased the declining sales of Bare as a product which they have successfully re-invented. 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 a 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. Branding and Promotion

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Number of major brands- Pantaloon Retail have a number of brands which are created by them : Bare DJ&C UMM RIG Shrishti Lombard KNIGHTHOOD

Contribution from major brandsSales Month Quantity 12 12 12 13.41 0 0

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Product Name

Year

Sales UOM Value (Crores) Pieces 3,159.38 1,610.18 272.58

Product Mix 59.65 30.40 5.14

Apparel Others

2011 2011

Other Operating 2011

Income Other Sales TableAdvertising Budget For Promoting Major Brands-The company has appointed Bobby Deol Lara Dutta, M .S .Dhoni, Bipasha Basu and Zayed Khan as Brand Ambassadors. The company has recently increased its advertising budgets to Rs 40 crores looking at the cricket season which is coming up for the year. 2011 12 0 253.74 4.79

Promotional Offers Run by Pantaloons Retail Company Limited Big bazaar believes in advertising its brand and offers. We often encounter big bazaars advertisement in the newspapers. Big Bazaar Wazirpur is no different the various promotional schemes are decided by the main office and all the outlets run these schemes, they understand the importance of communication. The Future Group has created a category for the growing media industry called Future Media, which is to be a medium through which advertisers can communicate with shoppers in the store. On the effectiveness of this method of reaching the customer, Partho Dasgupta, Chief Executive Officer, Future Media, says You are communicating to the consumer when and where it matters at the time of making a purchase decision. The company is considering all types of ways to reach the customer, including digital signage, audio, video and blue-tooth technology etc. The Future Group has switched its media agency and has selected Starcom to handle its account which is around Rs. 2-2.5 billion and is said to be one of the largest accounts in the past five years. The company was earlier with Productat for the past two years. As Pantaloon expands across all formats and is rapidly increasing its sq ft space from 4 million sq ft to 30 million sq ft, the company is also looking for creative agencies. At present the company uses Mudra for its value retail segment and Percept for its lifestyle retail segment. The various promotional schemes undertaken by big bazaar are as follows:

The punch line of Big Bazaar says IS SE SASTA AUR ACCHA KAHI NAHI. This line gives the feeling that Big Bazaar gives merchandise
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which is cheapest in the market or in other words the value for money which a customer will be getting here will be more than anywhere else.

Wednesday is the cheapest day. This is done to divert some of the crowd coming on weekends to a relatively free day. Big bazaar advertises Wednesdays as the cheapest day in all the leading dailies across the capital. This offer targets housewives and encourages them to purchase groceries and vegetables because no one purchases vegetables on a weekly basis, they purchase it at least two times a week.

Big Bazaar has announced a unique exchange offer `Bring anything old and take anything new. Under the exchange offer, old garments, utensils, furniture, plastic ware, newspapers or just about anything will be weighed and valued and customers will be given exchange coupons. There is also a direct exchange on mobile and electronic goods during the period with attractive discounts on new purchases.

Big Bazaars `The Great Exchange Offer has mobilized more than two lakh families to actually productry the junk of the house and offload it at the nearest Big Bazaar. Retail analysts say that generally February and March are dull months for consumer buying in the country and therefore this kind of a promotion campaign is needed to boost sales during the period.\

PANTALOON groups hypermarket chain, Big Bazaar, celebrated Republic Day as the Maha Savings Day, when shoppers at Big Bazaar and Food Bazaar outlets across the country, were offered merchandise at rock bottom prices.
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The Maha Savings Day saw shoppers got deals they have never seen or heard before. The offers spread across categories from electronics to utensils, from apparel to furniture and also food. For example pressure cooker for Rs 299, two Ruf n Tuf Jeans for Rs 499, and a Motorola C115 for Rs 1,399.

Big Bazaar usually runs a full page advertisement on Saturdays and Sundays in all the leading dailies communicating various offers. This is done to attract crowds on weekends because most of the people usually shop during weekends.

Pantaloons retail India limited provides Green productd, this Green Productd is passport to a whole new world of exclusive benefits and privileges. These includes:

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 productds for the customers. They are: ICICI Bank Big Bazaar Silver Credit Productd It gives you the benefits of regular productds 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 ProductdThe productd brings to you more reasons to save and earn rewards on its usage. It
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gives you all the benefits of regular productds and additional features to make your shopping not only enjoyable but also a way to save more with Big Bazaar. Shakti Productd Shakti is a credit productd for housewives. You need not submit income proof. Simply show your Big Bazaar bill of more than Rs. 500 and a lifestyle proof like club membership productd, health club productd etc. And get your Shakti. You can use Shakti at all the Big Bazaar and Food Bazaar outlets Pantaloons Retail and Jet Airways have got into a tie-up and now a Jet Privelage 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

Current Market Challenges Faced by Pantaloons Competition: With a sales turnover in 2008-09 FY of Rs. 5048.91 cr, pantaloon has been a clear market leader with the next competitor being Shoppers Stop with a turnover of Rs. 1244.79 cr. The numbers suggest that Pantaloon has had no competition at all. Another interesting statistic is about the Pantaloons net profit for FY 2008 in comparison to Shoppers Stop. Pantaloon had a net profit of Rs.125.94 cr, while Shoppers Stop had a net loss of Rs.63.72 cr. Clearly Pantaloon remains the market leader as far as retail is concerned.

New Technologies : Pantaloons greatest technological challenge till date has to be the introduction of SAP in 2006 and the introduction of RFID(Radio Frequency Identification Device) SAP implementation :
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Challenges: It took the company around $10 million to implement SAP. Implementations of SAP just seem to be a part of the challenge faced by the company. The real challenge for Pantaloon was faced during datamigration (transfer of data into the SAP software) and managing the interim period when the project was underway for 6 months. Maintaining the hardware was another challenge and the company outsourced its ABAP (Advanced Business Application Programming) resources.

Advantages: Pantaloon didnt see any immediate benefits with the application of SAP. With the implementation in its nascent stage the company couldnt calculate the Return on Investment. http://www.networkmagazineindia.com

RFID implementation :

Challenges: At each step of implementation, human intervention was required and barcode readers had to be installed at merchandising locations.
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 Traceability and visibility of goods in the supply chain, lack of a unique identity at each item level, and human intervention leading to errors were some of the issues faced by the company. These challenges led to a lack of co-ordination with the backend at the stores, hampering the companys production planning and inventory management.

Advantages: According to Chinar Deshpande, CIO of Pantaloon, Recording of data became smooth at the inward and outward terminals, which helped us save time and gain accuracy. Earlier, the possibility of scanning incorrect goods was much higher After the RFID implementation, the time saved on the same is about 80 percent in inward warehouse processing and 12 percent in outward Real-time visibility of items during all stages of the supply chain improved to 98 percent.

Pantaloon strategy:

Group/Company intends to pursue the following strategies in order to consolidate Pantaloon position as one of the leading operators in the value
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retail segment in India. Pantaloon growth strategy is based on:1Increasing Pantaloon penetration in the country by leveraging Pantaloon Supply chain, distribution and logistics network. 2 Emphasis on backward integration 3 Expansion of FMCG 4 Procurement from low-cost production centers outside India. 5 Increasing customer satisfaction and Pantaloon base of loyal customers .6 Continue to upgrade information technology systems and processes .7 Continue to train employees and seek entrepreneurship from employee

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Organised retail market in India (Rs crore)

Table-

Retailers inspired by the Wal-Mart story of growth in small town America are tempted to focus on smaller towns and villages in India. However, a producteful analysis of the town strata-wise population, population growth, migration trends and consumer spend analysis reveals a very different picture for India.
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As per our estimates, the share of the 35 towns with a present population of greater than 1 million in India's total population would grow much faster than their smaller counterparts, from 10.2 per cent today to reach 14.4 per cent by 2025. Simultaneously, the share of these towns in the overall retail market would grow from 21 per cent today to 40 per cent by 2025.

Within these top 35 towns, an estimated 70 to 80 per cent of retail trade could be in the organised sector. This is similar to the experience in China, where in cities like Shanghai and Beijing, the organised sector accounts for 70 to 80 per cent of overall retail trade in certain categories. Retailers should therefore focus on the top 37 towns in the next decade, as the opportunity in smaller towns and rural India would be smaller and more fragmented, compared to the larger towns. Organised retail market in India

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Table

There are a few key trends that one observes in international markets

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TREND1: CONVINENCE STORES AND HYPERMARKETS ARE GAINING PROMINENCE

These are driven by a consumer need for convenience and lower prices /

higher value in mass categories, while the big box category killer stores are gaining importance in the specialty retail categories. While supermarkets may emerge at the initial stages of retail market development, in the long term they are unable to match the consumer

value proposition of convenience stores and hypermarkets.

TREND2: PRIVATE LABEL BRANDS BECOME IMPORTANT

Private labels today account for 17 per cent of global retail sales, with
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the highest share of 23 per cent in Europe and the lowest share of 4 per cent in Asia. M+M Planet Retail data shows that private label penetration varies from 25 per cent to 95 per cent among some of the largest retailers in the world. Growing acceptance among consumers, increasing price competition, the need for differentiation among retailers and the ability to offer higher margins are the key factors contributing to the growth of private labels. Private labels provide the retailer an ability to offer a significant price advantage to consumers, their prices being 16 to 32 per cent lower than manufacturers' brands.

IMPLICATIONS OF INDIAN RETAILER

Global trends have important implications for Indian retailers. The Indian consumer is very value conscious; willing to spend money in most cases, but constantly cost conscious, evaluating every rupee spent. It is therefore imperative for retailers to offer a price advantage through sourcing and operational efficiency, as well as a strong private label
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programme to attract customers. Existing and new entrants need to achieve scale quickly to drive efficiencies in procurement, supply chain and marketing. Else, they risk being marginalised by larger players.

Real estate and human resources will be the critical drivers to build scale. While there are a few hundred malls under various stages of development across the country at present, retailers will also need to think out of the box to ensure the availability of real estate. This may include acquiring and developing themselves, rather the than real estate mall

wait for

development. Given the rising demand for retail real estate, retailers will need to take a long-term view on rentals and look at alternative options like ownership or very long leases. Retailers that invest in training will be able to ensure the availability of quality manpower in a rapidly growing market.

In conclusion, the retail market in India offers an opportunity for a large player to build a Rs 40,000-crore retail business spanning multiple categories by 2015 (at current prices). Compared to this, the revenue of
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the largest Indian retailer, Pantaloon, grossed only Rs 1,085 crore in 2005. Little wonder that large domestic business houses and international retailers have expressed a keen interest to enter the retail sector in India. To capitalise on the opportunity, however, players need to be aggressive in outlook and build scale quickly

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CHAPTER-4

RESEARCH METHODOLOGY

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