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INDIAN INSTITUTE OF MANAGEMENT, INDORE

INDIAN INSTITUTE OF MANAGEMENT, INDORE PANTALOONS Retail Outlet Analysis Marketing - II Course

PANTALOONS

Retail Outlet Analysis

Marketing - II

INDORE PANTALOONS Retail Outlet Analysis Marketing - II Course Instructor: Prof. Sabita Mahapatra Date of

Course Instructor: Prof. Sabita Mahapatra

Date of Submission:

Submitted by:

Group 4, Section B

Aadish Dhakad Bharath S Kunal Shah Srivathsa Bethapudi Vaibhav Agarwal

www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/ Contents Introduction 3 Other ventures of PRIL

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Contents

Introduction

3

Other ventures of PRIL

4

PANTALOONS

5

Marketing Decision at Pantaloons

6

Supply Chain Management

8

Visual Appeal of the Store

11

Customer Loyalty Program

14

Co-branding

15

Strategic Analysis

15

Key Learning’s

17

Conclusion

18

References

19

Co-branding 15 Strategic Analysis 15 Key Learning’s 17 Conclusion 18 References 19 2

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www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/ Pantaloons P ANTALOON R ETAIL is the flagship

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Pantaloons

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

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.

corporate credo is, ‘ Rewrite rules, Retain values . ’ Pantaloon Retail (India) Limited (PRIL), is

Pantaloon Retail (India) Limited (PRIL), is India’s leading retailer that operates multiple retail formats in both the value and lifestyle segment of the Indian consumer market. Headquartered in Mumbai, the company operates over 16 million square feet of retail space, has over 1000 stores across 73 cities in India and employs over 30,000 people. The company follows a multi-format retail strategy that captures almost the entire consumption basket of Indian customers.

The company’s leading formats include Pantaloons, a chain of fashion outlets, Big Bazaar, a uniquely Indian hypermarket chain, Food Bazaar, a supermarket chain, blends the look, touch and feel of Indian bazaars with aspects of modern retail like choice, convenience and quality and Central, a chain of seamless destination malls. Some of its other formats include Brand Factory, Blue Sky, aLL, Top 10 and Star & Sitara. The company also operates an online portal, futurebazaar.com.

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www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/ Pantaloons Collection i Star & Sitara

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Pantaloons

Collection i

| www.troubleshoot4free.com/fyp/ Pantaloons Collection i Star & Sitara Top 10 aLL Brand Factory Blue Sky

Star &

Sitara

Top 10 aLL
Top 10
aLL

Brand

Factory

Blue Sky

eZone

& Sitara Top 10 aLL Brand Factory Blue Sky eZone Big Bazaar Food Bazaar Other ventures

Big Bazaar

Sitara Top 10 aLL Brand Factory Blue Sky eZone Big Bazaar Food Bazaar Other ventures of

Food

Bazaar

Other ventures of PRIL

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 company’s 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 continues to deliver more value to its customers, supply partners, stakeholders and communities across the country and shape the growth of modern retail in India.

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www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/ A subsidiary company, Home Solutions Retail (India)

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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.

PANTALOONS

'FRESH FASHION'- An idea that has captured the imagination of young India is the tag line of Pantaloons. With a focus on the youth of today, Pantaloons offers trendy and hip fashion that defines the hopes and aspirations of this demography.

Pantaloons Fresh Fashion stands out as a fashion trendsetter, on the lines of how fashion is followed internationally. All Pantaloons stores reflect the new ideology -- Fresh Feeling, Fresh Attitude, Fresh Fashion. The stores offer fresh collections and are visually stimulating thanks to appealing interiors and attractive product displays!

to appealing interiors and attractive product displays! The first Pantaloons was opened in Gariahat in 1997.

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. Pantaloonshas established its presence with stores not just in the metros, but also in smaller towns. Pantaloons stores have a wide variety of categories like casualwear, ethnicwear, formalwear, partywear and sportswear for Men, Women and Kids, watches and sunglasses, footwear, handbags, perfumes, cosmetics and fashion accessories. The store has now gone for the online shopping portal, the portal helps the customers to shop online as well as locate the nearest store.

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www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/ Marketing Decision at Pantaloons T ARGET MARKET : The

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Marketing Decision at Pantaloons

TARGET MARKET: The target market of Pantaloons is the Youth of today, youth is defined broadly by the company from the kids to adults whoever considers themselves as young. As discussed above it believes in Fresh Feeling, Fresh Attitude, Fresh Fashion.

PRODUCT ASSORTMENT: Pantaloons offers trendy and hip fashion that defines the hopes and aspirations of this demography. It targets the ‘Indianness’ in the products as well. The store offers wide variety of categories like casual wear, ethnic wear, formal wear, party wear and sportswear for Men, Women and Kids. Apart from clothes, Pantaloons offers products in the

ACCESSORIES category and also in the BEAUTY PRODUCTS CATEGORY.

DEPTH: The product assortment is broad and deep, there are many product categories and each has a lot of variants in terms of size, fit and color.

PRODUCT: Pantaloons benefits because consumers perceive their store brands to have consistent and comparable quality and availability in relation to branded products. Pantaloons provides more assortments of private level brands to compete with supplier's brands. They maintain a lot of brands in the store.

brands. They maintain a lot of brands in the store. The store offers various famous External

The store offers various famous External Brands as well as a lot of Private Brands. 80% of the revenue is generated by the Private Brands, this shows that Pantaloons has established its brands as stand alone. Now Pantaloons is even considering of opening individual stores for the famous Private Brands.

The External Brands in the store include:

PEPE: APPARELS KILLER: APPARELS LEE: APPARELS
PEPE: APPARELS
KILLER: APPARELS
LEE: APPARELS
B LACKBERRY : A PPARELS
B LACKBERRY : A PPARELS
B LACKBERRY : A PPARELS

BLACKBERRY: APPARELS

B LACKBERRY : A PPARELS
B LACKBERRY : A PPARELS
B LACKBERRY : A PPARELS
B LACKBERRY : A PPARELS
B LACKBERRY : A PPARELS
C OLOR P LUS : A PPARELS
C OLOR P LUS : A PPARELS
C OLOR P LUS : A PPARELS

COLOR PLUS: APPARELS

C OLOR P LUS : A PPARELS
C OLOR P LUS : A PPARELS
C OLOR P LUS : A PPARELS
C OLOR P LUS : A PPARELS
C OLOR P LUS : A PPARELS

LEVIS: APPARELS

URBANA: APPARELS

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www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/ S CULLERS : A PPARELS V OGUE : G OGGLES D IOR

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S CULLERS : A PPARELS
S CULLERS : A PPARELS
S CULLERS : A PPARELS

SCULLERS: APPARELS

S CULLERS : A PPARELS
S CULLERS : A PPARELS
S CULLERS : A PPARELS
S CULLERS : A PPARELS
S CULLERS : A PPARELS

VOGUE: GOGGLES

DIOR: GOGGLES

N AVARAS : J EWELLERY
N AVARAS : J EWELLERY
N AVARAS : J EWELLERY

NAVARAS: JEWELLERY

N AVARAS : J EWELLERY
N AVARAS : J EWELLERY
N AVARAS : J EWELLERY
N AVARAS : J EWELLERY
N AVARAS : J EWELLERY
L ' OREAL : B EATUY P RODUCTS
L ' OREAL : B EATUY P RODUCTS
L ' OREAL : B EATUY P RODUCTS

L'OREAL: BEATUY PRODUCTS

L ' OREAL : B EATUY P RODUCTS
L ' OREAL : B EATUY P RODUCTS
L ' OREAL : B EATUY P RODUCTS
L ' OREAL : B EATUY P RODUCTS
L ' OREAL : B EATUY P RODUCTS
L AKME : B EATUY P RODUCTS
L AKME : B EATUY P RODUCTS
L AKME : B EATUY P RODUCTS

LAKME: BEATUY PRODUCTS

L AKME : B EATUY P RODUCTS
L AKME : B EATUY P RODUCTS
L AKME : B EATUY P RODUCTS
L AKME : B EATUY P RODUCTS
L AKME : B EATUY P RODUCTS
A DIDAS : A PPAREL & A CCESSORIES (P ERFUMES , D EODRANTS ETC )
A DIDAS : A PPAREL & A CCESSORIES (P ERFUMES , D EODRANTS ETC )
A DIDAS : A PPAREL & A CCESSORIES (P ERFUMES , D EODRANTS ETC )
A DIDAS : A PPAREL & A CCESSORIES (P ERFUMES , D EODRANTS ETC )

ADIDAS: APPAREL & ACCESSORIES (PERFUMES, DEODRANTS ETC)

A DIDAS : A PPAREL & A CCESSORIES (P ERFUMES , D EODRANTS ETC )
A DIDAS : A PPAREL & A CCESSORIES (P ERFUMES , D EODRANTS ETC )
A DIDAS : A PPAREL & A CCESSORIES (P ERFUMES , D EODRANTS ETC )
A DIDAS : A PPAREL & A CCESSORIES (P ERFUMES , D EODRANTS ETC )
A XE : A CCESSORIES
A XE : A CCESSORIES
A XE : A CCESSORIES

AXE: ACCESSORIES

A XE : A CCESSORIES
A XE : A CCESSORIES
A XE : A CCESSORIES
A XE : A CCESSORIES
A XE : A CCESSORIES

The Private Brands include:

A JILE : C ASUAL M ENSWEAR
A JILE : C ASUAL M ENSWEAR
A JILE : C ASUAL M ENSWEAR

AJILE: CASUAL MENSWEAR

A JILE : C ASUAL M ENSWEAR
A JILE : C ASUAL M ENSWEAR
A JILE : C ASUAL M ENSWEAR
A JILE : C ASUAL M ENSWEAR
A JILE : C ASUAL M ENSWEAR
A JILE : C ASUAL M ENSWEAR
A JILE : C ASUAL M ENSWEAR
A JILE : C ASUAL M ENSWEAR

AJILE: CASUAL MENSWEAR

A JILE : C ASUAL M ENSWEAR
A JILE : C ASUAL M ENSWEAR
A JILE : C ASUAL M ENSWEAR
A JILE : C ASUAL M ENSWEAR
A JILE : C ASUAL M ENSWEAR
A NNA - BELLE : C ASUAL /F ORMAL W OMEN WEAR
A NNA - BELLE : C ASUAL /F ORMAL W OMEN WEAR
A NNA - BELLE : C ASUAL /F ORMAL W OMEN WEAR

ANNA-BELLE: CASUAL/FORMAL WOMEN WEAR

A NNA - BELLE : C ASUAL /F ORMAL W OMEN WEAR
A NNA - BELLE : C ASUAL /F ORMAL W OMEN WEAR
A NNA - BELLE : C ASUAL /F ORMAL W OMEN WEAR
A NNA - BELLE : C ASUAL /F ORMAL W OMEN WEAR
A NNA - BELLE : C ASUAL /F ORMAL W OMEN WEAR
B ARE D ENIM : C ASUAL WEAR U NISEX
B ARE D ENIM : C ASUAL WEAR U NISEX
B ARE D ENIM : C ASUAL WEAR U NISEX

BARE DENIM: CASUAL WEAR UNISEX

B ARE D ENIM : C ASUAL WEAR U NISEX
B ARE D ENIM : C ASUAL WEAR U NISEX
B ARE D ENIM : C ASUAL WEAR U NISEX
B ARE D ENIM : C ASUAL WEAR U NISEX
B ARE D ENIM : C ASUAL WEAR U NISEX
B ARE : C ASUAL U NISEX C ASUAL WEAR
B ARE : C ASUAL U NISEX C ASUAL WEAR
B ARE : C ASUAL U NISEX C ASUAL WEAR

BARE: CASUAL UNISEX CASUAL WEAR

B ARE : C ASUAL U NISEX C ASUAL WEAR
B ARE : C ASUAL U NISEX C ASUAL WEAR
B ARE : C ASUAL U NISEX C ASUAL WEAR
B ARE : C ASUAL U NISEX C ASUAL WEAR
B ARE : C ASUAL U NISEX C ASUAL WEAR
B ARE LEISURE : C ASUAL /S EMI F ORMALS U NISEX
B ARE LEISURE : C ASUAL /S EMI F ORMALS U NISEX
B ARE LEISURE : C ASUAL /S EMI F ORMALS U NISEX

BARE LEISURE: CASUAL/SEMI FORMALS UNISEX

B ARE LEISURE : C ASUAL /S EMI F ORMALS U NISEX
B ARE LEISURE : C ASUAL /S EMI F ORMALS U NISEX
B ARE LEISURE : C ASUAL /S EMI F ORMALS U NISEX
B ARE LEISURE : C ASUAL /S EMI F ORMALS U NISEX
B ARE LEISURE : C ASUAL /S EMI F ORMALS U NISEX
C HALK : K IDS WEAR
C HALK : K IDS WEAR
C HALK : K IDS WEAR

CHALK: KIDS WEAR

C HALK : K IDS WEAR
C HALK : K IDS WEAR
C HALK : K IDS WEAR
C HALK : K IDS WEAR
C HALK : K IDS WEAR

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www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/ F F ACTOR : M EN ’ S PARTY WEAR H OLII

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F F ACTOR : M EN ’ S PARTY WEAR
F F ACTOR : M EN ’ S PARTY WEAR
F F ACTOR : M EN ’ S PARTY WEAR

F FACTOR: MENS PARTY WEAR

F F ACTOR : M EN ’ S PARTY WEAR
F F ACTOR : M EN ’ S PARTY WEAR
F F ACTOR : M EN ’ S PARTY WEAR
F F ACTOR : M EN ’ S PARTY WEAR
F F ACTOR : M EN ’ S PARTY WEAR
H OLII : A CCESSORIES ( BAGS ) LADIES
H OLII : A CCESSORIES ( BAGS ) LADIES
H OLII : A CCESSORIES ( BAGS ) LADIES
H OLII : A CCESSORIES ( BAGS ) LADIES

HOLII: ACCESSORIES (BAGS) LADIES

H OLII : A CCESSORIES ( BAGS ) LADIES
H OLII : A CCESSORIES ( BAGS ) LADIES
H OLII : A CCESSORIES ( BAGS ) LADIES
H OLII : A CCESSORIES ( BAGS ) LADIES
H ONEY : C ASUAL W OMEN WEAR
H ONEY : C ASUAL W OMEN WEAR
H ONEY : C ASUAL W OMEN WEAR

HONEY: CASUAL WOMEN WEAR

H ONEY : C ASUAL W OMEN WEAR
H ONEY : C ASUAL W OMEN WEAR
H ONEY : C ASUAL W OMEN WEAR
H ONEY : C ASUAL W OMEN WEAR
H ONEY : C ASUAL W OMEN WEAR
JM SPORT : M EN ’ S SPORTS WEAR
JM SPORT : M EN ’ S SPORTS WEAR
JM SPORT : M EN ’ S SPORTS WEAR

JM SPORT: MENS SPORTS WEAR

JM SPORT : M EN ’ S SPORTS WEAR
JM SPORT : M EN ’ S SPORTS WEAR
JM SPORT : M EN ’ S SPORTS WEAR
JM SPORT : M EN ’ S SPORTS WEAR
JM SPORT : M EN ’ S SPORTS WEAR
L OMBARD : M EN ’ S F ORMAL WEAR
L OMBARD : M EN ’ S F ORMAL WEAR
L OMBARD : M EN ’ S F ORMAL WEAR

LOMBARD: MENS FORMAL WEAR

L OMBARD : M EN ’ S F ORMAL WEAR
L OMBARD : M EN ’ S F ORMAL WEAR
L OMBARD : M EN ’ S F ORMAL WEAR
L OMBARD : M EN ’ S F ORMAL WEAR
L OMBARD : M EN ’ S F ORMAL WEAR
M OHENA : LINGERIE
M OHENA : LINGERIE
M OHENA : LINGERIE

MOHENA: LINGERIE

M OHENA : LINGERIE
M OHENA : LINGERIE
M OHENA : LINGERIE
M OHENA : LINGERIE
M OHENA : LINGERIE
M Y T EE : M EN ’ S T- SHIRTS
M Y T EE : M EN ’ S T- SHIRTS
M Y T EE : M EN ’ S T- SHIRTS

MY TEE: MENS T-SHIRTS

M Y T EE : M EN ’ S T- SHIRTS
M Y T EE : M EN ’ S T- SHIRTS
M Y T EE : M EN ’ S T- SHIRTS
M Y T EE : M EN ’ S T- SHIRTS
M Y T EE : M EN ’ S T- SHIRTS
R ANG M ANCH : W OMEN ’ S TRADITIONAL WEAR
R ANG M ANCH : W OMEN ’ S TRADITIONAL WEAR
R ANG M ANCH : W OMEN ’ S TRADITIONAL WEAR

RANG MANCH: WOMENS TRADITIONAL WEAR

R ANG M ANCH : W OMEN ’ S TRADITIONAL WEAR
R ANG M ANCH : W OMEN ’ S TRADITIONAL WEAR
R ANG M ANCH : W OMEN ’ S TRADITIONAL WEAR
R ANG M ANCH : W OMEN ’ S TRADITIONAL WEAR
R ANG M ANCH : W OMEN ’ S TRADITIONAL WEAR
RIG: C ASUAL WEAR U NISEX
RIG: C ASUAL WEAR U NISEX
RIG: C ASUAL WEAR U NISEX

RIG: CASUAL WEAR UNISEX

RIG: C ASUAL WEAR U NISEX
RIG: C ASUAL WEAR U NISEX
RIG: C ASUAL WEAR U NISEX
RIG: C ASUAL WEAR U NISEX
RIG: C ASUAL WEAR U NISEX
UMM: C ASUAL WEAR U NISEX
UMM: C ASUAL WEAR U NISEX
UMM: C ASUAL WEAR U NISEX

UMM: CASUAL WEAR UNISEX

UMM: C ASUAL WEAR U NISEX
UMM: C ASUAL WEAR U NISEX
UMM: C ASUAL WEAR U NISEX
UMM: C ASUAL WEAR U NISEX
UMM: C ASUAL WEAR U NISEX

Supply Chain Management

Critical components of supply chain planning applications helps Pantaloons meet retailers' service levels and maintain profit margins. Pantaloon has developed an innovative solution for managing the supply chain problems. Innovative solutions like performance management, frequent sales operation management, demand planning, inventory planning, production planning, lean systems and staff help Pantaloons get advantage over competitors.

inventory planning, production planning, lean systems and staff help Pantaloons get advantage over competitors. 8

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www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/ P ROCUREMENT : They have a central procurement system;

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PROCUREMENT: They have a central procurement system; each region has a regional hub. Under each regional hub there are several distribution collection centers. The function of each DCC is to distribute products across Pantaloons retail stores. The total product selection and distribution is handled by the

DCC and the store manager.

MERCHANDISE HANDLING SYSTEM AND INVENTORY MANAGEMENT: The total data flow and the billing process can

be understood from the diagram below.

billing process can be understood from the diagram below. The Merchandising system orders the goods to

The

Merchandising system orders the goods to the Warehouse through the Order processing system.

The

warehouse analyses the data and sends the product to the store. The product is displayed in the

store and the remaining merchandise is stored in form of inventory. As the customer purchases the product its entry is made into the Inventory store and the merchandising system. The same would be reflected in the IT systems installed and would inform the store manager of the products to be ordered

which will again follow the same procedure.

PERFORMANCE OF A STORE: Though there was no direct information regarding the store performance, from the data collected by central division from the store we can deduce a few things. The central division asked for the number of customers visiting the store. Since each store is connected to the central division via the internet, they have access to the data about the billings and revenue, the size and available space in the store and the number of sales representatives present. So the benchmarking is done on the basis of direct product profitability, profit per square foot basis, profit per customer entering in the store, or the overall profit.

But as the company is now going forward with the launch of individual retail stores for the private

brands which are doing good, it seems that they might be looking at the direct product profitability. Also

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as the data about number of customers visiting the store is collected they might be doing the benchmarking on the basis of revenue or profit per customer entering the store.

PRICE: The pricing of the products is done as per the individual brands. The private labels have their own pricing system. The procurement department, after procuring the materials, fixes the price of the branded material competitive to the market price.

SMART TAGS: Smart tags help in two ways. First, they help in the billing process and the merchandise handling system. Second, they help in preventing the cases of shop lifting. The scanners at the gates of the store sound an alarm if there is any smart tag going out of the store premises. There are three types of tags used by the store: Hard tags, Soft tags and String tags.

The Hard tags are RFID enabled which help in controlling shoplifting. Soft tags provide the information about the product. String tags give the pricing details.

about the product. String tags give the pricing details. S ERVICE : Pantaloons believes that people

SERVICE: Pantaloons believes that people are its greatest resource. They employ young and energetic individuals. The average age of the employees in the organization is 27 yrs. They believe that in store service is the key to better customer satisfaction.

Pre purchase

service

Post purchase

service

Ancillary

service

Every store has a trained sales force. The sales force is focused on assisting the customers in the selection of merchandise best suited for the customer; they are also involved in creating awareness about various offers which may benefit the customer. Pantaloons provide customers with prepurchase trial service.

 
 
 

The sales department also takes care of minor alteration of the clothes if required by the customer. There is also a provision for gift packing. Plus, if the customer is not satisfied with the product the department guides the customer through the appropriate channel to solve his/her grievances.

There are a lot of customer loyalty programs which run various schemes for the customers. The customers are made aware of these offers via email and mobile phones (SMS). As the stores are generally in a big mall the parking, restroom, recreational activities are provided by the mall.

(SMS). As the stores are generally in a big mall the parking, restroom, recreational activities are
 
 

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Visual Appeal of the Store

Pantaloons focuses a lot on the visual effects inside the store. The use of Lighting, signage’s and specialized props is very important for any retail store. The visual communication strategy is planned and is also brand positioned. Theme or lifestyle displays using stylized mannequins and props, which are based on a season or an event, are used to promote collections and are changed to keep in touch with the trend. The merchandise presentation ought to be very creative and displays are often on non- standard fixtures and forms to generate interest and add attitude to the merchandise.

STORE ATMOSPHERE: The store atmosphere is one of the very important factors influencing the purchase. Pantaloons pays a lot of attention to the store atmosphere. The colors, lighting, music, perfume, arrangement of products etc are designed store specific. There is a central team which takes care of the ambience in the store. These people suggest the ambience according to the mood of customers, time of the day, festivals etc to decide about the ambience of the store. The store employees are also involved in the process as they understand the local tastes better.

in the process as they understand the local tastes better. The colors inside are more earthly

The colors inside are more earthly to convey the freshness. Also the lighting is dim so that the customer is able to focus on the products. In the premium products and beauty products segment, pictures of celebrities are posted endorsing various brands. There are pictures and signage’s signaling to the customer about the product category being displayed.

Another strategy used to enhance the visual appeal of the store is the VISUAL MERCHANDISING. In visual merchandising the store looks at the following aspects:

PLACE OF VARIOUS PRODUCTS INSIDE THE STORE: The height and relative location of various products inside the store. This is done on the basis of the research and development done by the central team. A main component is the use of technology like the goggle like devices used to assess the most attractive position for products in the store.

GOGGLE LIKE DEVICE: The storesemployees are told to keep certain products at a certain height, and the store design is made according to that. This shows that somewhere in the system the store chain implements this strategy may be at the central level of planning to decide about the highest level of attraction of customer. The customer focuses generally at a particular height level which gives us insight about place of product.

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COLORS AND SIZES: There is a considerable effort put into the decision making about the sizes and colors of clothes to be displayed in the store. The central team analyses the data gathered from previous sales to establish a relationship between the type of product and its colors and sizes. For example: a formal men’s trouser in the economy range: the store looks into the 4-5 basic colors (black, brown, navy blue, grey etc.) and sizes (waist size 28-42 inch) sold and their corresponding quantity. The same has to be incorporated in the display at the store. This helps in Inventory management as well.

DISPLAY: This is the most important part which helps to analyze the order and assortment of colors and sizes in the display and the type of display used. There are options of wardrobe display or shelf display. In the wardrobe display the store generally keeps the lighter shades and smaller sizes in the front followed by darker and larger sizes. In the shelf style the store assorts the product based on the style in a shelf and the different colors are available in the same shelf.

The display is further boosted by the mannequins and the posters of celebrities along the shelves.

For accessories the display is exhaustive, the store tries to display as many products as possible. Also in this section the lighting is focused specially on the mirrors where the customer tries on the product. The atmosphere in terms of colors and lighting is vibrant in tune with the product.

EVERY STORE HAS ITS UNIQUENESS: Each store is given some autonomy and has a say in the decision process. The company considers that every place has its own unique characters; they accept that the product that sells in Mumbai may not sell in Indore.

COMMUNICATION: The effectiveness of the Pantaloons’ communication is in its offering to the target customers, the degree to which the products gets positioned in their minds. The message is differentiating in offering from that of its competitors without even naming them. The message clearly conveys to the target audience that the mall offers them exactly what they require and that it meets all their expectations. The core purpose is to inform the target customers about the offering of the store, persuade them to visit the store and remind them about the store. Various communication tools used by Pantaloons for this purpose include advertising, buzz marketing (WoM), celebrity endorsement, use of print media, press releases and viral marketing.

use of print media, press releases and viral marketing. the central promotions group . There is

the

central promotions group. There is a department to take care of the advertisement and communication strategy of the whole retail chain. Apart from the advertising at the central level the store gets a budget for the local advertisement in newspapers, local TV channels,

banners, posters etc.

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The communication is taken care by

www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/ O WNERSHIP : All the stores of the retail chain of

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OWNERSHIP: All the stores of the retail chain of Pantaloons are owned by the company. The PRIL group is the owner of the stores.

The stores are in a format of CONVENIENCE SHOPPING. The customers are helped in selecting their apparels. There are a lot of brands in the store that make it a convenience store rather than a specialty store. The customers are allowed to SELF SELECT the products with the assistance of the in-store staff.

CHECK OUT SCANNING SYSTEM: The store has a robust check out scanning system. There is a 2-tier system; the guards are in place to check the customers going out. They tally the baggage with the invoice and put a seal to avoid duplication of the same receipt. Secondly there is a system to check if someone is shoplifting and going out, there is an automatic scanning system that beeps in case the locator is not removed.

ELECTRONIC FUND TRANSFER: The store allows for the payment through credit cards and debit cards from the customers. Further the store uses the electronic transfer system to pay to its suppliers.

ELECTRONIC DATA INTERCHANGE: There is a system to get the data from the customers. The customers are asked to fill the forms for the customer loyalty programs and the data is transferred to the central server so that the analysis of data can be done to forecast the demands and patterns of purchases. The same data is exchanged between various stores across the country.

IN STORE CCTV: There is in store close circuit TV to ensure that the cases of shoplifting are minimized and it also allows the manager to keep a check on the employees, and to ensure they are working during their shift.

STORE TRAFFIC RADAR SYSTEM: The store keeps a track of the number of customers entering and exiting the store. This is done through the advanced electronic systems to measure the number of customers passing through the doors.

WOMEN FACTOR: The major chunk of the total sales is made or influenced to a large extent by women. According to the data more than 80% of the total sales in retail are influenced largely by women. Pantaloons appreciates this fact and uses this to improve the sales. They have tried to understand the buying behavior of women and have tried to place their products accordingly. They also have offers revolving around women.

behavior of women and have tried to place their products accordingly. They also have offers revolving

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www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/ Customer Loyalty Program The flagship loyalty program at

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Customer Loyalty Program

The flagship loyalty program at Pantaloons is its Green Card Program. The green card enables the customer to get a whole range of benefits and discounts. Each customer who opts for the loyalty program is called a Star Member.

Instant discount everytime the customer shops
Instant discount everytime the customer shops
Instant discount everytime the customer shops
Instant discount everytime the customer shops

Instant discount everytime the customer shops

Instant discount everytime the customer shops
Instant discount everytime the customer shops
Instant discount everytime the customer shops
Instant discount everytime the customer shops
Exclusive shopping days to get hold of latest merchandise
Exclusive shopping days to get hold of latest merchandise
Exclusive shopping days to get hold of latest merchandise
Exclusive shopping days to get hold of latest merchandise

Exclusive shopping days to get hold of latest merchandise

Exclusive shopping days to get hold of latest merchandise
Exclusive shopping days to get hold of latest merchandise
Exclusive shopping days to get hold of latest merchandise
Exclusive shopping days to get hold of latest merchandise
Regular updates on collections and promos via catalogues, sms and email
Regular updates on collections and promos via catalogues, sms and email
Regular updates on collections and promos via catalogues, sms and email
Regular updates on collections and promos via catalogues, sms and email

Regular updates on collections and promos via catalogues, sms and email

Regular updates on collections and promos via catalogues, sms and email
Regular updates on collections and promos via catalogues, sms and email
Regular updates on collections and promos via catalogues, sms and email
Regular updates on collections and promos via catalogues, sms and email
Special invites to the most happening events
Special invites to the most happening events
Special invites to the most happening events
Special invites to the most happening events

Special invites to the most happening events

Special invites to the most happening events
Special invites to the most happening events
Special invites to the most happening events
Special invites to the most happening events
Extended exchange periods and complimentary drops for alterations
Extended exchange periods and complimentary drops for alterations
Extended exchange periods and complimentary drops for alterations
Extended exchange periods and complimentary drops for alterations

Extended exchange periods and complimentary drops for alterations

Extended exchange periods and complimentary drops for alterations
Extended exchange periods and complimentary drops for alterations
Extended exchange periods and complimentary drops for alterations
Extended exchange periods and complimentary drops for alterations
Exclusive billing counters
Exclusive billing counters
Exclusive billing counters
Exclusive billing counters

Exclusive billing counters

Exclusive billing counters
Exclusive billing counters
Exclusive billing counters
Exclusive billing counters

As the number of times a customer shops increases, the customer becomes eligible for a higher grade of the green Card Membership program. Initially, the customer is a “1 Star Customer” at the time of enrollment. At this stage, the customer is eligible only for discount vouchers. But as the total value of the merchandise increases, the customer moves up the ranks to ultimately become a “7 Star Customerat which point he/she is eligible for a 10% discount on every purchase across any Pantaloons store in India.

Gift Voucher worth Rs. 200 on enrolment

An exclusive 5% discount on every purchase

An exclusive 7.5% discount on every purchase

An exclusive 10% discount on every purchase

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www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/ Co-branding In a first of its kind partnership in

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Co-branding

In a first of its kind partnership in retail, Pantaloons Green Card partnered with Jet Airways’ JetPrivilege to offer dual benefits to members. With this unique partnership, JetPrivilege members enjoy benefits from two loyalty programs i.e. earn JPMiles and Enjoy Green Card discounts for shopping at Pantaloons.

The customers earn JPMiles everytime they shop at Pantaloons. These JPMiles can be redeemed by the customer when he/she purchases an Airline ticket from Jet Airways.

2 JPMiles for every Rs. 100 spent

3 JPMiles for every Rs. 100 spent

4 JPMiles for every Rs. 100 spent

5 JPMiles for every Rs. 100 spent

Strategic Analysis

We have looked at the store from the view point of the employees, customers and the day to day operations at a particular outlet. While analyzing the operations it is also essential that we take into account some macroeconomic factors that might affect Pantaloons in the near future.

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www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/ F IRM A NALYSIS - SWOT From our visit to the store

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FIRM ANALYSIS - SWOT

From our visit to the store and understanding of its operations we have made the following inferences.

Strengths
Strengths

First Mover Advantage Strong supply chain Unique Market Knowledge Presence Across Value Chain Private Labels like UMM, Bare , Giny & Jony

Weaknesses
Weaknesses

Shrinkage rates higher than industry average

Low employee retention level Loyalty programs offered by competitors better Merchandise, product focus ambiguous

Opportunities
Opportunities

Expanding consumer base into Tier II , Tier III cities

Untapped segments such as ethnic wears Foray into Luxury brands Custom tailored business still untapped

Threats
Threats

Diversification of parent firm - Loss of focus Increased competition from foreign firm Increasing costs Unorganized sector

Pantaloons has outlets across 73 cities with over 4000 supply chain partners. Despite the intense competition it has been able to retain most of their management level employees. They have been able to successfully launch and retain a lot of private brands, which as Pantaloons opens exclusive showrooms for the private brands will directly compete with the more established external brands.

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www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/ E NVIRONMENTAL O UTLOOK Political • Govt. support

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ENVIRONMENTAL OUTLOOK

Political • Govt. support to economic reforms • FDI in Retail • Inflation (CPI vs.
Political • Govt. support to economic reforms • FDI in Retail • Inflation (CPI vs.
Political • Govt. support to economic reforms • FDI in Retail • Inflation (CPI vs.

Political

Political • Govt. support to economic reforms • FDI in Retail • Inflation (CPI vs. WPI)

Govt. support to economic reforms FDI in Retail Inflation (CPI vs. WPI)

Political • Govt. support to economic reforms • FDI in Retail • Inflation (CPI vs. WPI)
Political • Govt. support to economic reforms • FDI in Retail • Inflation (CPI vs. WPI)
Political • Govt. support to economic reforms • FDI in Retail • Inflation (CPI vs. WPI)
Economic • Increasing disposable income • Expanding customer base- rural and middle calls • Expected
Economic • Increasing disposable income • Expanding customer base- rural and middle calls • Expected
Economic • Increasing disposable income • Expanding customer base- rural and middle calls • Expected

Economic

Economic • Increasing disposable income • Expanding customer base- rural and middle calls • Expected market

Increasing disposable income Expanding customer base- rural and middle calls Expected market by 2012 US $573 billion Expected contribution to GDP 22%

rural and middle calls • Expected market by 2012 – US $573 billion • Expected contribution
rural and middle calls • Expected market by 2012 – US $573 billion • Expected contribution
rural and middle calls • Expected market by 2012 – US $573 billion • Expected contribution
Social • Advent of dual income families • Increasing consciousness of brands and shopping experience
Social • Advent of dual income families • Increasing consciousness of brands and shopping experience
Social • Advent of dual income families • Increasing consciousness of brands and shopping experience
Social • Advent of dual income families • Increasing consciousness of brands and shopping experience

Social

Advent of dual income families Increasing consciousness of brands and shopping experience High proportion of young population

income families • Increasing consciousness of brands and shopping experience • High proportion of young population
income families • Increasing consciousness of brands and shopping experience • High proportion of young population
income families • Increasing consciousness of brands and shopping experience • High proportion of young population

Technical

MIS leading to cost efficiency

Electronic media creating wide awareness Internet Revolution

Key Learning’s

Pantaloons is one of the most valued and recognized retail merchandize stores in India. It has been able to do so due to the various reasons and strategies listed above. But some of the main reasons why it has been able to stay ahead of the competition for so long are

RIGHT POSITIONING

The message conveyed by Pantaloons to its target customers is effective in differentiating its offerings from that of its competitors without even naming them. The message is clearly conveyed that they offer the customers the complete shopping-cum-entertainment experience. Pantaloons uses various communications tools like advertising, buzz marketing, celebrity endorsements etc.

EFFECTIVE VISUAL COMMUNICATION

Pantaloons gives great emphasis to on display visual merchandising, lighting, signage’s and specialized props. Season and trend based advertising is done to promote the latest collections. The merchandise presentation is very creative which adds to their visual appeal.

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www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/ S TRONG S UPPLY C HAIN To maintain the profit levels a

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STRONG SUPPLY CHAIN

To maintain the profit levels a very strong supply chain is essential. Pantaloons has developed innovative solutions for managing the supply chain problems. They get an advantage over their competitors by implementing processes like performance management, demand planning, inventory planning, lean systems and staff among many others.

CHANGING THE PERCEPTION

Pantaloons has been able to benefit because the customers believe that its private brands have consistent and comparable quality and availability as compared to the more established external brands. An assortment of private brands is available to compete with the external brands.

Conclusion

In the face of fierce competitive pressure, Pantaloons has recognized the value of building its own stores as brands to reinforce their marketing Positioning, to communicate quality as well as value for money. They have developed a sustainable competitive advantage by translating core values combining products, image and reputation into a coherent retail brand strategy.

products, image and reputation into a coherent retail brand strategy. Mr. Kishore Biyani: The Man behind

Mr. Kishore Biyani: The Man behind PANTALOONS

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www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/ References P RIMARY Direct talk with  The store

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References

PRIMARY

Direct talk with

The store Manager of Pantaloons Store Indore

The sales personnel at Pantaloons Store Indore

The customers at Pantaloons Store Indore

SECONDARY

http://pantaloon.futurebazaar.com/indexPantaloon.jsp

http://www.pantaloonretail.in/index.asp

http://www.sebi.gov.in/dp/pantaloon.pdf

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