FINAL-Vijay Kumar N

8/9/2019 FINAL-Vijay Kumar N

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DECEMBER 2009CERTIFICATECERTIFICATE

This is to certify that the Project Report at

PANTALOON RETAIL (INDIA) LIMITED, BANGALORE

Submitted in Partial Fulfillment of the requirements for theDegree of

MASTER OF BUSINESS ADMINISTRATION(INDUSTRY INTEGRATED)

TO

MADURAI KAMRAJ UNIVERSITY, MADURAI

Is a record of bona-fide Training carried out by

VIJAY KUMAR SAHU

Under my supervision and Guidance and that no part of this report has

been submitted for the award of any other Degree/ Diploma/Fellowship or other Similar titles or prizes.

FACULTY GUIDE

Signature:

Name:


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Qualification: Signature & seal of the learning centre

STUDENT'S DECLARATION

I HERE BY DECLARE THAT THE PROJECT REPORT CONDUCTED AT

PANTALOON RETAIL (INDIA) LIMITED, BANGALORE

Under the guidance ofProf. B. K. BHARADWAJ

Submitted in Partial Fulfillment of the requirements for theDegree of

MASTER OF BUSINESS ADMINISTRATION(INDUSTRY INTEGRATED)

TO

MADURAI KAMRAJ UNIVERSITY, MADURAI

Is my original work and the same has not been submitted for theaward of any other Degree/ Diploma/ Fellowship or other

Similar titles or prizes.

Place: Bangalore VIJAY KUMAR SAHU

Date: Reg. No.:


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ACKNOWLEDGEMENT

I would like to expresss my gratitude to Mr. SUNIL THOMAS, Store

Manager, and Mr. SANTOSH KUMAR, HR, of Big Bazaar(Hebbal) whose

direction, assistance, and guidance have been invaluable for the project. I wish

to thank Hebbal staff for their constant support.

I express special thanks to Prof. B.K.BHARDVAJ my project guide, who

provided his recommendations and suggestions to complete my project

successfully.

I particularly like to extend my thanks to my faculties, seniors and also to

my friends who supported me during the project.

VIJAY KUMAR SAHU


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CONTENTS

CHAPTER TOPIC PAGE NO.

1 INTRODUCTION

1.1General Introduction about the

sector1.2 Industry Profile

a.Origin and development of the

industryb.

Growth and present status of theindustry

c. Future of the industry

2PROFILE OF THEORGANIZATION

2.1 Origin of the Organization

2.2Growth and development of

the Organization

2.3Present status of the

Organization

2.4Functional Department of the

Organization

2.5Organization structure and

Organization chart

2.6Product & services profile of

the Organization


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2.7Market profile of the

Organization

3 DISCUSSION ON TRAINING

3.1 Students work profile (Roleand Responsibilities)

3.2Description of live

experiences

4STUDY OF SELECTEDRESEARCH PROBLEM

4.1

Statement of research

problem

4.2Statement of research

objective

4.3Research design and

methodology4.4 Analysis of data4.5 Summary of findings

5 SUMMARY ANDCONCLUSIONS

5.1Summary of learning

experience

5.2Conclusion and

Recommendations

ANNEXURE

BIBLIOGRAPHY


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EXECUTIVE SUMMARY

India is experiencing socio-demographic changes which are further ing the

growth in organized retail industry. The demographic changes relating to indian

consumer class with 65% of the population below the age of 35 years, the generation

derives the retail industry. It is expected that within a decade, the number of people in

the age group 20-49 would increase by 30% from 395 million in 2000 to 510 million in

2010. In the near future the brand-conscious young population will constitute the

largest segment of demand for the majority of retailers.

The title of the study is 'PROCESS IN DEPARTMENTS OF BIGBAZZAR &

CRM'.


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CHAPTER 1INTRODUCTION


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1ST CHAPTER OVERVIEW

1. INDUSTRY OVERVIEW.

2. FUTURE OF THE INDUSTRY.

3. GROWTH OF INDIAN RETAIL INDUSTRY.

4. TRENDS IN RETAIL INDUSTRY.

5. DRIVERS OF GROWTH IN ORGANISED RETAILING.

6. RETAILING THROUGH MALLS.

7. FDI IN RETAILING.

8. IMPACT AREAS.

9. CONCLUSIONS.


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GENERAL INTRODUCTION

Like England, India too, has been described as a notion of shopkeepers having

an estimated 15 million small retail outlets, mostly single-store, family-owned fronts all

over the country. This works out to 14 shops per 1000 people, which is one of the

highest densities of shops per 1000 population all over the world. The unorganized

sector comprising small & medium retailers who employ over 40 million people is

indeed the current face of retail that is in the threshold of transformation to a more

organized form. Only 2-3 % of retailers are large -scale who have the ambition to

organized retailing to the whole of India.

Only 4% of the 15 million retail outlets have floor space in excess of 500 sq.ft.

The vast available untapped potential, naturally has attracted majors like Relience,

Tatas, Birlas, Godrejs, Mahindras & ITC to foray into this sector.

More Importantly, the revolution in retail forges farm to fork linkages with

thousands of farmers to procure additional outlets for retailing their produce. This

necessarily entails huge investments in supply chain logistics, cold chain,

warehousing, & so on all over India's rural market. The further the opens up new

business ventures creating additional employment oppertunities.

One such retail is the FUTURE GROUP headed by Kishore Biyani, the country'slargest retailer having 3.2 million sq.ft., of retail space across 36 cities. He intends to

spend US$ 1 billion to increase that to 10 million sq ft by 2010. The group had a

presence in various segments that scattered to a wide section of consumer in india.

Some of the segments include retail, fashion, food, communication, health & beauty,

which were managed through multiple retail formats.


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INDUSTRY OVERVIEW:

Retail is the world's largest industry with global sales of roughly US$ 8 trillion.

Retailing is also one of the biggest contributers to the Gross Domestic Period(GDP) ofmost countries & also one of the biggest employers(Source CII McKinsey Report titled

Retailing in India, the Emerging Revolution). In India however, the retail sector has

been a high level of fragmentation with a large Share held by unorganized players.

INDIAN RETAIL INDUSTRY:

India is the 4th largest economy in the world in purchasing power parity(PPP)

terms after USA,China and Japan. In 2006-07, india became the 2nd fastest growing

economy in tne world with a growth rate of 9.2%. the economy is expected to grow at

an average 7.8% per annum for the next 5 years.

Wholesale & Retail trade sector currently contributes to about 13% of GDP &

employs about 40 million people. India has a large number of retail enterprises with

close to 12 million retail outlets. India has one of the highest retail densities in the

world, but only 4% being larger than 500 sq ft in size. In terms of the structure, the

industry is fragmented & predominantly consists of independent, owner managed

shops. The retail businesses include a variety of traditional retail formats, such as

Kirana stores which stock basic household necessities (including food products),

street markets- regular markets held at fixed centers retailing foods & general

merchandise items, street vendors- mobile retailers essentially selling perishable food

items- fruits, vegetables etc & small non specialized retailers.


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TRADITIONAL RETAIL FORMATS:

Formats Definition

Value

position

Indian

examples

CounterStores

Food: Family run stores, sellingessentially food items. High Service, Kirana Store

KiosksPavement stalls selling limited variety

of food & beverages.Low price,

High servicePaan

Shopkeepers

Street

Markets

Regular markets held at fixed centerretailing food & general merchandise

items.

Large

selections

Village Haats

StreetVendors

Mobile retailers essentially sellingperishable food items-fruitsvegetables, milk, eggs, etc.

Low price,High service

VegetablesVendor

RETAILING IN INDIA, THE EMERGING REVOLUTION!

Retail sector accounts for 35% of India's GDP.

Provides employment to 15% of the population.

World's largest retail networks with 12 million outlets.

Total market size of retailing in India now is US$ 300 billion.

Current share of Organized Retail is 3% or US$ 9-10 billion.

Projected Growth @ 40% p.a., to become US$ 24 billion by 2010.


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FUTURE OF THE INDUSTRY

India is one of the most attractive retail markets in the world,

estimated at US$ 300 billion with a sizzling growth potential of 40% per annum. Withsuch an explosive trajectory, it is hardly surprising that many global and national

players have announced ambitious investment plans of US$ 22 billion over the next

five years to set up shop, as it were, throughout the country. The us$ 315 billion global

major Wal-Mart has a joint venture with Bharti Enterprises and has plans to rollout its

stores by mid-2008, reaching 75 cities over the next 5-7yrs , according to Raj Jain,

Wal-Marts president for emerging markets.

Indias Fortune 500 private sector giant, Reliance Industries Ltd. has,

in-fact, been first off the blocks by launching its Reliance Fresh outlets in Hyderabad,

the cyber-savvy capital of the state of Andhra Pradesh in November 2006 and has

since fanned out to 18 states. By end-2007, it plans to extend its retail footprint to 70

cities. To match the likes of wal-mart, reliance has on the anvil plans to spend

US$5.6billion to set up its outlets in 784 cities and towns all over the country by 2010.

Indias much awaited retail revolution has therefore, already been set in motion.

The revolution that is being retailed doesnt, however , conjure this

sector into existence out of nothing. Like England, India , too, has long been described

as a nation of shopkeepers having an estimated 15 million small retail outlets , mostly

single-store , family-owned fronts all over the country. This works out to 14 shops per

1,000 people , which is one of the highest densities of shops per thousand population.

The unorganized sector comprising small and medium retailers who employ over 40

million people is indeed the current face of retail that is in the throes of a transformation

to a more organized form.

Only 2-3% of retailers are large-scale who have the ambition bringing

organizing retailing to the whole of India. While the current policy regime bars foreign

retailers from selling multiple brands directly to consumers, they are allowed to operate

in the cash and carry or wholesale format that has brought in Wal-Mart and the metro

group. The winds of reform are not freely blowing through Indias retail sector, as there

are political sensitivities involved. Simply put the entry of Wal-Mart and other global


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retailing giants is feared to threaten the livelihood of millions of retail stores. It bears

mention that Wal-Mart employs only 1.4 million workers but its turnover is similar to

that of Indias retail trade as a whole.

For starters, the revolution in retail entails tapping the huge

opportunity at the bottom of the pyramid. This necessarily implies moving down

from the top, comprising major metros like New delhi , Mumbai , Kolkata , Bangalore ,

Chennai and Hyderabad to smaller cities like Agra and Kanpur in the state of Uttar

Pradesh or Indore and Ranchi in central India or Vijayawada and Visakhapatnam in the

southern state of Andhra Pradesh , to name a few such examples. Then , moving on to

the smaller towns and villages ,where the real opportunities indeed lie at the base of the

pyramid.

Major players like Reliance have all begun with the big metros like Hyderabad and

Chennai in their foray into retailing. The reasons include higher disposable incomes

and a large working and earning population in these agglomerations. But how many

players can find this business viable if they concentrate only on this urban segment. A

typical sight in most metros in the shopping mall where organized players retail their

wares alongside each other. Mukesh Ambani, Chairman and MD of Reliance, for his

part, belives that there is enough room for six-to-eight players in this business.

The action perforce has to shift to smaller cities and towns. To some

extent, this is already happening in cities like Vadodara and Surat in the state of

Gujarat. According to IBEF reports are 200 malls spread all over India and 700 new

malls are coming up, 40% of which are concentrated in the smaller cities and towns.

The reason are not far to seek. The contribution of smaller cities to organized retail

sales was 15% in 2005 and has risen to an estimated 25% in 2006. With growth of 50-

60% every year when compared to 35-40% inthe large cities, the smaller cities are the

torchbearers of the retail revolution.

A factor that is fanning the move out of them metros is booming real

estate costs. Players like Biyani of the Future Group have been stating that the smaller

cities have a 15-30% cost advantage over the larger cities in this regard and,

accordingly, have plans to set up 400,000 sq.ft of retail space in Ahmedabad,Vadodara and Surat. Average rentals are in the range of Rs 50-60 per sq.ft per month


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in the smaller cities when compared to Rs 100-120 per sq.ft per month in the bigger

cities. As lease rentals are an important aspect of the economics of organized retailing,

the move to smaller cities will only accelerate further Ballooning employees costs are

in larger cities are another reason why organized retailers are also setting up training

facilities in smaller cities. Although retailing is the second largest employer after

agriculture, there is a requirement upwards of two million personnel. Existing players

thus are scrambling to set up training facilities to bridge the gap between demand and

supply. Bharti Enterprises has, for instance , set up the Global Retail School in

Chandigarh to train the large numbers required by its parents retail venture and plans

to open 30 more centers in smaller cities like Jammu and Ludhiana by end-2007.

More importantly, the revolution in retail forges to fork linkages with

thousands of farmers to procure fresh produce for the outlets. This necessarily entails

huge investments in supply chain logistics, cold chain,warehousing and so on all over

Indias rural hinterland. To be sure, some corporates like the agribusiness giant ITC

have a head start as they have cut out intermediaries and purchase agri-produce from

farmers at e-choupals. A logical step forward has been to set up Choupal Freshgrocery

stores selling fruits and vegetables in Hyderabad, Pune and Chandigarh .

Reliance, too, has begun procuring farm produce directly from farmers. To stock its

Chennai outlets, its supply chain bypasses the Koyambedu whole sale market and

sources greens and vegetables from farmers in nearby places like Tiruvallur. In Ranchi,

despite the recent opposition to its outlets, around 300 vegetable and farmers entered

into a deal to supply directly to Reliances purchase centers at Brambay and Pithori.

Dealing with farmers and payng much higher prices for their produce within a few

hours of plucking from the field enhances purchasing power at the bottom of thepyramid.

To be sure, there is a lot of opposition from vested interests like

wholesale traders to the farm to fork revolution. Companies like Reliance face a

tremendous amount of opposition in bypassing established intermediaries in states like

Tamilnadu and even WestBengal. But states like Haryana , Andhra Pradesh nad some

parts of Uttar Pradesh have allowed direct procurement. More states will follow suit.

Like ITCs e-choupal scheme, the US agency for International Development also has a


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program in India to bring together farmers and organized retailers to help source fresh

agricultural produce.

Ultimately, the prospectus is for this revolution in the country side to

go global as corporates get into contract farming and source farm produce also export.

The concep of farm to fork means that it will integrate the Indian user with the global

chain. When US President George Bush came to India, the mango market was opened

up. Wal-Mart coming in helped us open the US market, stated Ambani at the India

Economic Summit 2006. The retail revolution that is underway has all these

potentialities, including delivering health,micro-credit,education and entertainment to

the bottom of the pyramid.

GROWTH OF RETAIL INDUSTRY

Growth of organized retail in India

India is expected to show similar trends as Indian consumers in

the past have shown an ability to leapfrog evolution cycles as has happened in

the case of various consumer products such as mobile phones. As per

estimates, retail spending in India in fiscal 2005 stood at Rs. 9,990 billion of

which the organized sector accounts for Rs. 349 billion or approximately 3.5% .

The size of the organized sector expected to grow at 40% per annum reaching

Rs. 1,095 billion in 2010.

In Thailand, there has been an explosion in the growth of

organized retail, with over 40% of the trade moving to formats within 10 years.The easy entry of foreign retailers and the geographic concentration of the retail

industry facilitated this growth. In Poland, where modern retail has captured

20% of the market in the last 9 years, ease of real estate access, a level playing

field between modern and traditional retailers , abd ease of entry for foreign

retailers contributed to the growth.


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TRENDS IN INDIAN RETAIL INDUSTRY

Consumer Spend In India

Growth in consumption, the changes in demographics are driving

changes in consumption pattern in the country. According to Central Statistical

Organization (CSO) private final consumption of consumers in India was over

Rs.17,600 billion in FY04.

Urban

CATEGORIES 1999 2000 2001 2002 2003

Home textiles 1 1 1.5 1.4 1.6

Saving &investment

14 6.1 6.4 5.2 4.1

Clothing 5 6.5 4.6 6.6 7

Home appliance& consumer

durable9 5.5 7.5 5 6.6

Vacation 4 3.3 3.1 3.4 3.9

Eating out 8 7.9 8.8 12.2 10.8

Foot wear 1 2 2.2 2.5 2.3

Movies & theatre 1 2.7 2.6 3.8 4.6

Entertainment 3 3 3 3 2.1

Books & musics 5 7.8 6.5 6.7 7.6

Grocery 43 47.8 48 42.1 41.1

Personal care

Items6 7.5 7.1 8.8 7.6


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Consumers shopping basket is changing

Within the overall private final consumption expenditure there are

category shifts happening in urban consumption pattern. A study by KSA Technopark

shows that urban consumers have increased their expenditure on eating out, movies

and theatre, books and music , clothing and personal care items even as they have

reduced savings and investments.

Phases Of Mall Development

The concept of Mall has come up in the early 1990s. India entered

the infancy stage in 1990s when the first wave of mall development was observed in

the form of Spencer Plaza in Chennai ,Crossroads in Mumbai, and Ansal Plaza in New

Delhi. Each of these malls was able leverage a first movers advantage in its respective

market by offering consumers an unprecedented mix of shopping, food and leisure

popularized in USA. India and China are currently in the development phase marked

by rapid pace of creation of retail infrastructure. Mall development in both these

countries is trickling down to smaller cities and towns. In India tier I and tier II cities

have seen a sudden spurt in the development of Mall. During the 1990s South-East

Asia and the Middle East had seen a similar rise. The UK and US have reached a

declining stage in Mall development. These countries are undergoing a consolidation

phase.

DRIVERS OF GROWTH IN ORGANIZED RETAILING

India is experiencing certain socio-demographic changes which are

furthering the growth in organized retail while enablers such as availability of quality

real estate are hastening the pace of this transformation.

Rising income levels

Increase in household income has led to a substantial change in the

profile of the Indian consumer self indulgent consumption patterns. The traditionalbottom-heavy triangle, witness a large no. of people in the lower income group and a


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few at the top is a trend of the past. But this trend has been changing over the years.

Changes are seen both in the rural and urban areas. The chart below clearly indicates

the same.

YOUNG POPULATION WITH DISPOSABLE INCOME

The demographic and psychographic changes relating to Indian

consumer class is also driving the India retail story. With 65% of the population below

the age of 35 years, the young generation has grown up free from shortages and self

denial experienced by earlier generations. It is expected that within a decade, the

number of people in the age group 20-49 would increase by 30%-from 395 million in

2000 to 510 million in 2010. The brand-conscious young population forms the largest

segment of demand for the majority of retailers.

For a country like India with large young working population and with

a very low burden of dependents, and a large section of population waiting to enter the

work force, the household incomes are bound to rise. The higher income levels would

lead to higher savings and eventually increase the purchasing power.

AVAILABILTY OF BRANDS AND MERCHANDISE

Consumerism and brand proliferation has been another enabler for

organized retailing in India . Some of the well-known names that have set-up their

operations in the country are

Category

Foods & beverages: Mc Donalds Pizza, Pizza hut, Ruby,etc.

Apparel: TommyHilfiger,Mamgo,Marks&Spencer,etc.

Durable: Sony, Philips, LG, Electrolux, Nokia,etc.

Sports goods: Nike, Adidas, Reebok, Bata ,Florisheim.

Luxury: LVMH, Bvlgari, Cartier, Omega ,etc.

Consumer goods: Nestle, Coca-cola, Pepsi ,Cadburys,etc.


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AVAILABILITY OF QUALITY REAL ESTATE

Availability of quality real estate has been one of the main constraints

for development of organized retail in India. In the past , negative yield on leased

property , lack of bank funding and the unorganized property market resulted in dearth

of quality retail space in the country. The spread between yield on property and the

financing cost has turned positive with the fall in interest rates. Attractive yields on

investments have resulted in sharp increase in property development. Malls across the

globe are getting bigger. Malls are becoming because they are now being positioned

as a one stop shop for shopping, entertainment, leisure and eating out needs rather

than a place only for shopping for fashion products. In addition, the various State

governments have taken proactive steps to release large tracts of land for commercial

development. Growth of property funds and permission for Real Estate investment

Trusts(REITs) to be set up will further help to create a secondary market for real estate

in the country. Profitable mall space is not evenly distributed across the country.

IMPACT OF GLOBALIZATION

Globalization has removed trade barriers and promoted consumerism.

Over the last decade, there has been an increase in branded goods-both domestic and

international-in the Indian market across product categories. Both width and depth of

product offering to the Indian consumers is increasing.

COMPOSITION OF ORGANIZED RETAIL

A break-up sales in organized retail shows lifestyle as the largest

segment accounting for 73% in value terms. This is followed by food and grocery

accounting for 14% of the organized retail value.

Rapid growth of organized retailing is expected in the food segment.

We believe this can be attributed to the highly unorganized nature of the market

currently, which thus present an attractive potential, and the growing preference of

consumers to shop at modern retail formats. Clothing is the other segment expected to

show high growth potential.


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CHALLENGES FOR ORGANIZED RETAIL

Availability of skilled man power: The non-availability of trained man

power, especially at the management level, poses a key risk for the retail

sector. With growing opportunities in the emerging service sectors, the availability of

the retail business to hire and retain quality people is under pressure. Further, as

organized retail grows rapidly, there will be pressure on existing players as new

entrants look for trained manpower at various levels.

Supply chain issues: Supply Chain Management efficiencies are

essential to retailers to maintain and improve margins. SCM includes vendor

management and logistics management. Vendor selection is an important outcome of

the sourcing process and a key to most efficient sourcing. Logistics management aims

to get the goods from the vendor to the store in the shortest possible time thereby

avoiding unnecessary stocking of goods. In India, both vendor management and

logistics management are still underdeveloped. However, with growing size of

operations, supply chain efficiencies will become a key differentiator of profitability in

retail.

Similarly, supply chain tools and techniques are still developing in

India with the increase in organized retailing and entry of international brands. Bar

coding is now being implemented, driven by the retailers for whom it is an essential

ingredient for supply chain management.

RETAILING THROUGH MALLS

DEPARTMENT STORES

These large stores retail primarily non-food items such as apparel,

footwear, accessories, cosmetics and household products. They stock multiple brands

across product categories, though some of them focus on their own store label. These

stores are found on high streets and Anchors Tenants of shopping malls. Several local

department store chains have opened shop in India in the past five years. The


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convenience factor coupled with the aspirational perception of shopping in a

department store has contributed to their growth. The larger chains of department

stores have presence in the metros and mini metros.

SUPER MARKETSA super market is a store which is a more of a large self-service

grocery store selling groceries and diary products and household that are consumed

regularly. These are neighborhood stores offering home and personal care products

and food products that a typical household consumes on a day-to-day basis. These

stores are often part of a chain that owns or controls other super markets located in the

same or other towns, increasing the opportunities for economies of scale. These stores

offer convenience of shopping by making available a large variety of products at one

place.

FDI IN INDIAN RETAILING

Formats for entry in India

Direct participation in Indian retail business is still not permitted under

Indias regime of FDI controls, although Minister for Commerce and Industry Kamal

Nath has hinted that the total ban on retail FDI might soon become an equity

participation cap, possibly of 49%. Till the time a ban is lifted from the FDI, quite a few

international retailers in india have adopted different strategies for operating in India.

These strategies and models include the following: 51% equity allowed in SINGLE

BRANDRETAIL OUTLETin the wings areTESCO, CARREFOUR, WALMART, etc.

Franchise Agreements

Franchising is the most widely used entry route by international

retailers. Some fast food retailers have entered India through the master franchise

route , while Pizza Hut has entered India through multiple regional franchises.

Franchising: Pizza Hut, Markes & Spencer


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CASH & CARRY WHOLESALE TRADING

100% FDI is allowed in whole sale trading , which involves building of

a large distribution infrastructure to assist local manufacturers. The business model is

built such that the whole seller deals only with smaller retailers and not consumers.

Metro AG, Germany was one of the first significant global players to enter India through

this route. Shoprite of south Africa has effectively used a combination of cash and carry

whole sale trading and franchising to set up their first hypermarket in the suburbs of

Mumbai.

WHOLESALE CASH N CARRY: Metro, shop Rite.

STRATEGIC LICENSING AGREEMENTS

This route involves the foreign company entering in to a licensing

agreement with a domestic retailer. Mango, the Spanish apparel brand has entered

India through this route with an agreement with major brands , a departmental store in

Mumbai.

LICENSING:Van Heusen, Arrow, Lee.

JOINT VENTURES:Revlon, United Colors Of Benetton.

DIRECT 100% COMPANY IN INDIA:Cola Cola, Pepsi & Nestle.

IMPACT AREAS

Traditional Retailers

Impact confined to perhaps 300,000 to 500,000 retailers across India coming in

direct range of about hypermarkets and about 3000+ supermarkets by 2011.

Overall, the universe of traditional retailers will actually increase by 2011 and

even by 2015.

Importance of traditional channel to become even more for established FMCG

and other consumer product companies.


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Current Modern Retailers

Most will come under severe pressure.

Most are grossly undercapitalized, and have largely invested in the front

endrather than the back end.

Most have weak business process and IT systems.

Most have no serious understanding or investment in supply chain.

Most have no real margin drivers in their business model that can enable them

to make exceptional investments in the immediate future.

Consumers

India consumer-The largest beneficiaries

Reduction of prices in typical monthly basic needs shopping bill by at least

10% within next 24-30 months leading to generation of an equivalent amount of

surplus disposable income.

Improvement in quality of fresh/perishable products.

Improved assortment, and reliability of availability.

Branded Consumer Goods Players

At the mass market, most Indian consumers are brand blanked through

aspiring for brands.

Most major new entrants will start with heavy proportion of Private Labels, and

will probably use branded goods to demonstrate the price-value imbalancebetween such branded goods and their private labels.


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Real Estate

Additional consumption of almost US$ 127 Billion will require about 600-700

Million square feet of additional retail space 2011.

Current projections on constructions are just about 200 Million sq.ft, leaving a

gap of almost 400-500 Million sq.ft.

Investment of about US$ 10-15 Billion needed to make up for this demand-

supply gap, and an additional investment of US$ 8-10 Billion needed in Retail fit-

outs and related equipment.

However.

This space is needed across more than 1000 towns, and in major rural hubs

rather than clustered around top 40-50 cities only.

The developments have to be planned keeping targeted consumers and the

targeted retailers and other service providers in mind rather than first build based

on availability of land and hiring an architect, and then find who could use the

space.

Major Hypermarket format retail players will probably work on the basis of

taking up space in upcoming malls as well as building own big boxes.


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CONCLUSIONS

Indian retail sector poised for developments that are unprecedented not only in

India but almost anywhere in the world.

Economic impact will be felt across the entire economy-from customers to

produce and manufacturers to service providers to retailers.

Next 5 years will be among the most remarkable in the evolution of modern

retail in India.

While India thus is becoming one of the largest retail markets in the

world, the transition to a more organized form, however, is not easy will remain

politically contentious. For all the fears of the demise of the so-called mom and pop

retail stores, the point to remember is that nowhere in the world has small retailing

disappeared. But, nowhere in the world has modern retailing not come in. So, I dont

see why we should be any different, felt Montek Singh Ahluwalia, Deputy Chairman of

the Planning Commission.


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CHAPTER 2

PROFILEOF THE ORGANIZATION


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ORIGIN OF ORGANISATION

We never created a group identity in the past...... We cannot be known as Pantaloon. It

was originally a trouser brand.

----Kishore Biyani

CEO, Future Group.

PRIL, which begin as a trouser manufacturer in the mid 1980's, had grown over the

years to become one of India's largest retail chains. In march 2006, the pantaloons

group renamed as the Future Group.

The future Group was divided into six verticals.

1. Future retail

2. Future Capital

3. Future Brands

4. Future Space

5. Future Media

6. Future Logistics

The Future Group

In march 2006, the Pantaloon Knowledge Group, as a part of its restructuring & its

expansion plans changedits identity to the Future Group. The new group was set up

to drive growth through the use of consumer insights and scenario planning to designfuture retail delivery formats. Kishore Biyani, chairman PRIL said, India is changing

rapidly and we believe that rather than look at the past to extrapolate or the west to

emulate, we have to prepare ourself by planning scenarios based on innovative and

original research.

The Future Group operated through Six verticals, Future Retail, Future Brands,

Future Capital, Future Space, Future Media, Future Logistics, with each vertical beingassigned a specific role. Of this, Future retail was the core vertical of the Future Group


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with the other verticals serving it directly or indirectly.

Descriptions of verticals in Future Group

FUTURE GROUPVERTICALS DESCRIPTIONS

Future RetailPRIL's Retail business like food and fashion were included

under this vertical.

Future Space Management of all the shopping malls and real estate.

Future BrandsManagement of all owned or licensed brands of the Group

companies.

Future Media

Focus on development and management of retail media

spaces.

Future CapitalThe financial arm of the Future Group , which would focus on

retail financial products and services.

Future logistics

This vertical would focus on deriving efficiencies across

businesses through better supply chain management and

distribution.

With the launch of Future Group, PRIL had plans to develop a business model,

which resembled wall-Mart's Sam's club. This strategy was adopted to strengthen its

back-end supply chain sourcing capabilities in addition to reducing costs and scalling

up business volumes.

Analysts opined that PRIL, under its new identity as the Future Group aimed to

garner market share in the retail industry in India. A report released by

AT Kearney in 2006 titled emerging market priorities for global retailers, ranked india

first in its 2006 Global Retail Development Index, an indication that global retailers

considered it one of the most attractive markets. The reports also estimated that the

retail industry in india was worth US$300 billion.


30/76

OutlookBig Bazaar has been accepted as a pan-India model, from the agrarian

singly to the-cosmopolitan Mumbai. Big Bazaar has democratized shopping in India

and is entering its most aggressive role out phase. From 50 Big Bazaars operational

now at the end of the current year, this number should go up close to100 stores.

Besides, Big Bazaar will enter rural India; it is both a vertical and horizontal aggression.

The outlook is very exciting and buoyant.

Fashion FocusWith Private labels expected to be at the forefront, the category is likely to

see lot of action in jeans and knits in men's and ladies wear, as well as in the hugely

popular fusion or mix and match ladies wear. With the introduction of Gine & Jony

products in the stores, the kids and infants section will also be reinforced considerably.

Another category that the company has identified is the sportswear category, which will

be addressed through the setting up of a fashion led sports apparel mix of the best in

national and international brands, all under one roof.

Market sizeLargely an untapped and unorganized market as of now, the total retail size

of the Indian books and music sector is estimated to be about Rs.800 crore. Of this the

share of organized retailing accounting for about 10 percent and is growing at a faster

rate than traditional retail. As a size of total retail pie, this segment accounts for just 1

percent but attracts close to8 percent of a consumer's wallet. A recent report indicates

that between 2002 & 2007, the category is estimated to grow at a rate of nearly 26

percent every year for the next five years.

Strategic DirectionWith a wide range of private labels, at different price points, Fashion Station

will continue to provide the customers an alternative option to latest fashion that was

hitherto not addressed in modern retail environment. With more stores lined up in the

coming year, across cities and towns, this concept would cater to a larger mass of

customers and also improve the company's bottom- line.

Across India, food habits vary according to community, customs and

geography. Food Bazaar, through its multiple outlets addresses this. At the same

time,it offers best quality products at wholesale prices to a wide cross section of the

Indian population. Food bazar effectively blends the look,touch and feel of the Indian


31/76

bazar with the choice,convenience and hygiene that modern retail provides. Most

stores are located within Big Bazaar,Central and Pantaloon and act as strong footfall

generators. These are separated stand alone Food Bazaar as well. The business

contributed just under 50% of value retailing and 20% to the company;s turnover

during 2005-06.Food Bazar offers a variety of daily consumption items,which includes

staples,soaps and detergents,oils,cereals and biscuits. On the product category side ,

the primary segregation is done on the basis of staples,fresh products,branded

foods,home and personal care products.

Changing Food PreferencesFood Bazaar talks to the housewives of india and constantly learns from

them and it is at the forefront of changing preferences. Some of the trends that were

noticed during year were increased consumption of processed food category and

ready to eat concepts. Besides an increasing number of working women are

experimenting lot with their cooking habits and this is opening up of new food

categories. Also,an increase in young people opting for impulsive and on the move

snacks were noticed. One of the distinct change was an increasing shift towards health

based food products. Food Bazaar is working on new categories to capitalize these

changes.

PartnershipsFood Bazaar's strategy would be dual. It will continue on its road map of

revamping its current portfolio of private labels, either through strategic tie-ups with

established players or continue its in-house initiatives, and at the same time enter into

additional consumer centric categories by creating new brands.

Restaurant BusinessWhile consumers in the West spend nearly 46% of their food expenditure on

away from home meals, Indian consumers spend only about 3% of their food

expenditure in hotels and restaurants. However a significant trend noticed in this group

is that almost 8% of their wallet share is spent on eating on at either a restaurant or a

fast food joint,as compared to other forms of entertainment. In addition,two out of every

five households in this group eats out at least once a month. This presents a new an

exciting opportunity for organized players in the foods and restaurants business.

International and domestic multi-unit restaurant groups are expected to drive the


32/76

expansion in the restaurant industry in India. Among the leading trends in this regard

would be expansion of quick service restaurants,Fusion concepts,restaurants with a

focus on entertainment,and ethnic and regional cuisine restaurants.

Joint Venture with Blue FoodsWith the intention of expanding the organized food and restaurant business

in the country,the company entered into a equal joint venture with blue foods Pvt. Ltd.

Through its PAN India food solution private limited subsidiary. The alliance aims at

offering the best in Indian and multi cuisine preparations to Indian public,capitalizing on

the modern retail experience and customer insights that Pantaloon provides coupled

with Blue Foods reputation as a pioneer in this business.

FINANCIAL PERFORMANCES

The growth in the retail sector was reflected in the financial results of PRIL

for 2005-06. For the year ended june 30, 2006, PRIL reported a total income of

Rs.18.72 billion in 2004-05. The company also reported a 66.4% rise in net profit, i.e.

Rs 641.5 million for 2005-06 as against Rs 385.5 million in the previous year. Thecompany's growth momentum continued as PRIL, recorded a net profit of Rs 386.4

million for the quarter in that Sep30'06.This was an increase of around 186% over

corresponding period of the previous year.


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COMPANY FUTURE PLANS BY 2010

FORMAT SALES (in Rs. Crores)

Big Bazaar 7650

Converge M 5335

Food Bazaar 3250

Home Town 3200

Central 2300

Health Village 1725

Future Bazaar 1600

E-Zone 1550

Pantaloon 1500Planet Retail 1250

Depot 880

Fashion station 770

Liberty 480

Electronics Bazaar 470

Collection I 390

Furniture Bazaar 150

all 100

Blue Sky 100

TOTAL 32700

Revenues $ 7 billion

Investment 4000 (Rs. Crores)Retail Space 30 million sq. ft.

Profits $ 1 billion

Employees 120000

GROWTH AND DEVELOPMENT OF ORGANIZATION


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Company Name: Pantaloon Retail (India) LimitedBackground: Founded in 1987 as a garment manufacturing company, the company

forayed into modern retail in august 1997 with the launch of its first department store,pantaloons in Kolkata.

Major Milestones1987 Company incorporated as Manz Wear Private Limited. Launch of Pantaloons

trouser, Indias first formal trouser brand.

1991 Launch of BARE, the Indian jeans brand.

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

1994 The Pantaloon Shoppe exclusive menswear store in franchisee formatlaunched across the nation. The company starts the distribution of brandedgarments through multi-brand retail outlets across the nation.

1995 John Miller Formal shirt brand launched.

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

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

2002 Food Bazaar, the supermarket chain is launched.

2004 Central - Indias first seamless mall is launched in Bangalore.

2005 Group moves beyond retail, acquires stakes in Galaxy Entertainment, IndusLeague Clothing and Planet Retail.Sets up Indias first real estate investmentfund Kshitij to build a chain of shopping malls.

2006 Future Capital Holdings, the companys financial is formed to manage over$1.5 billion in real estate, private equity and retail infrastructure funds. Plansforays into retailing of consumer finance products.Home Town, a homebuilding and improvement products retail chain is launched along withconsumer durables format, Ezone and furniture chain, Furniture Bazaar.FutureGroup enters into joint venture agreements to launch insurance products withItalian insurance major, Generali.Forms joint ventures with US office stationery

retailer, Staples.2007 Future Group crosses $1 billion turnover mark.Specialised companies in retail

media, logistics, IPR and brand development and retail-led technologyservices become operational. Pantaloon Retail wins the International Retailerof the Year at US-based National Retail Federation convention in New Yorkand Emerging Retailer of the Year award at the World Retail Congress held inBarcelona.Futurebazaar.com becomes Indias most popular shopping portal.

2008 Future Cap chain,Aadhar present in mark.Future Group acquires rural retailchain,Aadhar present in 65 rural chain,Aadhar present in 65 rural locations.

Hierarchy of Pantaloon (Future Group)


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Mr. Kishore Biyani, Managing DirectorMr. Gopikishan Biyani, Wholetime DirectorMr. Rakesh Biyani, Wholetime DirectorMr. Ved Prakash Arya, DirectorMr. Shailesh Haribhakti, Independent DirectorMr. S Doreswamy, Independent DirectorDr. D O Koshy, Independent DirectorMs. Anju Poddar, Independent DirectorMs. Bala Deshpande, Independent DirectorMr. Anil Harish, Independent DirectorRakesh BiyaniCEO - RetailAnshuman SinghCEO - Value FashionDamodar MallCEO - Incubation & InnovationHans UdeshiCEO - General MerchandisingHemchand Javeri CEO - Home Solutions Retail (India) Ltd.Kailash Bhatia CEO - Integrated Merchandising GroupMadhumati Lele CEO - Services

Rajan MalhotraCEO - Big BazaarSadashiv Nayak CEO - Food BazaarSanjeev AggarwalCEO - PantaloonsVishnu PrasadCEO - Central & Brand Factory

AWARDS & RECOGNITION

2009

Images Fashion Forum 2009

Most Admired Fashion Group Of The Year - Future Group

Most Admired Private Label - Pantaloons, the lifestyle format

Critics Choice For Pioneering Effort In Retail ConceptCreation - Central

Coca-Cola Golden Spoon Awards 2009

Most Admired Food & Grocery Retailer Of The Year

Most Admired Food Court

Most Admired Food Professional

2007


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Images Retail Awards

Most Admired Retail Face of the Year: Kishore Biyani

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

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

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

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

Images Retail Forum followed strict international benchmarks in deciding the

top honours for Images Retail Awards 07, with IRIS as knowledge partner and

global consulting firm AT Kearney as the Process Approver.

National Retail Federation Awards (International Retailer for the Year 2007

Pantaloon Retail (India) Ltd)

The National Retail Federation is the worlds largest retail trade association with

over 1.4 million members in the US and across the world. Some of the past winners

of the award include Metro AG (Germany), Carrefour (France), Zara (Spain),

Boticario (Brazil) and Ito Yokado (Japan). The award was presented at the RetailsBig Show held in January 2007 in New York.

World Retail Congress Awards (Emerging Market Retailer of the Year 2007

Pantaloon Retail (India) Ltd)

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

attracted over one thousand retail professionals from over sixty countries. The

awards were decided by a multinational Grand Jury. Winners in other categories

included Inditex, Mall of Emirates, Marks & Spencer and IKEA.

Hewitt Best Employers 2007 (Best Employers in India (Rank 14th) Pantaloon Retail

(India) Ltd)

Leading human resources consultancy, Hewitt Associates conducts an annual

survey of the best employers in India, as part of its global initiative. It is based on

CEO interview, People Practices Inventory and Employee Opinion Surveys.

Pantaloon Retail became the only retailer to feature among the twenty-five best


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employers in India.

PC World Indian Website Awards (Best Indian Website In The Shopping Category -

Futurebazaar.com)

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

websites in various categories based on use of technology for delivering solutions,

information being presented in an intuitive and concise manner and overall

experience aided by design.

Readers Digest Trusted Brands Platinum Awards (Trusted Brands Platinum Award

(Supermarket Category) Big Bazaar)

The Readers Digest awards are based on surveys done among consumers by

independent research agency, Nielsen Media Research. This is the second

consecutive time Big Bazaar has won this award.


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Retail Asia Pacific Top 500 AwardsR Asia Pacific Best of the Best Retailers Pantaloon

Retail(India)Ltd.Best Retailer in IndiaPantaloon Retail(India)Ltd.

The Retail Asia publication in association with EuroMonitor and KPMG honorsthe best retailers in 14 countries across the Asia Pacific region. The awards were

presented in Singapore in October, 2006.

Asiamoney AwardsA Best Managed Company in India (Mid-cap) Pantaloon retail

(India) Ltd.

The Asiamoney publication conducts a poll among fund manages and

investors and does a quantitative analysis of financial performance to select bestmanaged companies in Asian countries.

Ernst & Young Entrepreneur of the Year AwardE Ernst & Young Entrepreneur of the

Year (Services) Kishore Biyani

Considered to be one of the most prestigious business awards in India, a jury

comprising leading names in Indian business selected the winners based on

courage, creativity, passion, endurance and vision.

CNBC Indian Business Leaders AwardsC The First Generation Entrepreneur of the

Year Kishore Biyani

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

by a high profile jury, along with research partners - The University of Chicago

Graduate School of Business, Development Dimensions International (DDI) and AC

Neilson ORG MARG.

Lakshmipat Singhania IIM Lucknow National Leadership Awards Young

Business Leader Kishore Biyani. The award recognizes and honors individuals

who have contributed consistently to the betterment of our country through their

pursuit of excellence. The awards were presented in New Delhi by the Prime

Minister Dr. Manmohan Singh in December, 2006.

Images Retail Awards Best Value Retail Store Big BazaarBest Retail Destination

Big Bazaar Best Food & Grocery Store Food Bazaar Retail Face of the Year


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Kishore Biyani

The Images Retail Awards are decided through a nationwide consumer &

industry poll and nominations followed by performance assessment by team of

analysts and jury.

Readers Digest Awards Platinum Trusted Brand Award - Big Bazaar

The Readers Digest awards are based on surveys done among consumers

by independent research agency, Nielsen Media Research.

CNBC Awaaz Consumer AwardsMost Preferred Large Food & Grocery Supermarket

Big Bazaar

Conducted in association with AC Nielsen-ORG Marg across 21 major cities, nearly

10,000 consumers were asked to choose their most preferred brands.

Reid & Taylor Awards for Retail ExcellenceRetail Entrepreneur of the Year Kishore

Biyani

2005


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Images Retail Awards 2005

PRIL- Most Admired Retailer of the Year

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

Big Bazaar-Retailer of the Year(Value Retailing)

Central-Retail Launch of the Year

Voted by Business Today magazine as one of the

Top 20 Companies in India to watch in 2005

Indias most investor-friendly companies in the top 75

Indias Biggest wealth creators in the top 100

DAKS London

PRIL- Brand Builder of the Year

2004 Images Retail Awards 2004

PRIL- Most Admired Retailer of the Year

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

Big Bazaar-Retailer of the Year(Value Retailing)

Central-Retail Launch of the Year

Reid & Taylor and DLF Awards

PRIL - Retailer of the year

2003 Indian Express Award

PRIL Marketing Excellence and Excellence in Brand Building

Indusland Bank (India Brand Summit)

PRIL - Excellence in Brand Building

ORGANIZATION DESIGN & STRUCTURE


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Organization Design

The company follow an inverse pyramid structure; as a result decisions are taken

closest to the point of customer action. Sales executive are encouraged to think

customer first. They are empowered to run their respective departments like 'small

business owners'.

Pantaloon India's major retailers with presence in the following twosegments

1. Lifestyle Retailing - Pantaloons, Central, all, Blue sky.

2. Value Retailing -Big-Bazaar, Food Bazaar, Depot, Health village, Fashion

station.

Lifestyle retailing: The stores under this category primarily retail non-food

items such as - (apparel, footwear, accessories, cosmetic & household products.)

Value retailing: The stores under this category retail mainly food &

household items.

These are primarily large store with volume based discounted prices.

Organization Structure

The organization constitutes the Head as the Store Manager. Under him there is

one Assistant store Manager. The Asst. Store Manager handles all Department

Managers of every department. Under Department Manager, there is one Assistant

Department Manager who helps in guiding the Department Trainees. Then from themembers of the Department Team, a team leader is their who leads the team of its

department.

Descriptions of verticals in Future Group


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FUTURE GROUPVERTICALS

DESCRIPTIONS

Future RetailPRIL's Retail business like food and fashion were included

under this vertical.

Future Space Management of all the shopping malls and real estate.

Future BrandsManagement of all owned or licensed brands of the Group

companies.

Future MediaFocus on development and management of retail media

spaces.

Future CapitalThe financial arm of the Future Group , which would focus on

retail financial products and services.

Future logistics

This vertical would focus on deriving efficiencies across

businesses through better supply chain management and

distribution.

With the launch of Future Group, PRIL had plans to develop a business model,

which resembled wall-Mart's Sam's club. This strategy was adopted to strengthen its

back-end supply chain sourcing capabilities in addition to reducing costs and scalling

up business volumes.

Analysts opined that PRIL, under its new identity as the Future Group aimed to

garner market share in the retail industry in India. A report released by

AT Kearney in 2006 titled emerging market priorities for global retailers, ranked india

first in its 2006 Global Retail Development Index, an indication that global retailers

considered it one of the most attractive markets. The reports also estimated that the

retail industry in india was worth US$300 billion.

OutlookBig Bazaar has been accepted as a pan-India model, from the agrarian

singly to the-cosmopolitan Mumbai. Big Bazaar has democratized shopping in India

and is entering its most aggressive role out phase. From 50 Big Bazaars operational


43/76

now at the end of the current year, this number should go up close to100 stores.

Besides, Big Bazaar will enter rural India; it is both a vertical and horizontal aggression.

The outlook is very exciting and buoyant.

Fashion FocusWith Private labels expected to be at the forefront, the category is likely to

see lot of action in jeans and knits in men's and ladies wear, as well as in the hugely

popular fusion or mix and match ladies wear. With the introduction of Gine & Jony

products in the stores, the kids and infants section will also be reinforced considerably.

Another category that the company has identified is the sportswear category, which will

be addressed through the setting up of a fashion led sports apparel mix of the best in

national and international brands, all under one roof.

Market sizeLargely an untapped and unorganized market as of now, the total retail size

of the Indian books and music sector is estimated to be about Rs.800 crore. Of this the

share of organized retailing accounting for about 10 percent and is growing at a faster

rate than traditional retail. As a size of total retail pie, this segment accounts for just 1

percent but attracts close to8 percent of a consumer's wallet. A recent report indicates

that between 2002 & 2007, the category is estimated to grow at a rate of nearly 26

percent every year for the next five years.

Strategic DirectionWith a wide range of private labels, at different price points, Fashion Station

will continue to provide the customers an alternative option to latest fashion that was

hitherto not addressed in modern retail environment. With more stores lined up in the

coming year, across cities and towns, this concept would cater to a larger mass of

customers and also improve the company's bottom- line.

Across India, food habits vary according to community, customs and

geography. Food Bazaar, through its multiple outlets addresses this. At the same

time,it offers best quality products at wholesale prices to a wide cross section of the

Indian population. Food bazar effectively blends the look,touch and feel of the Indian

bazar with the choice,convenience and hygiene that modern retail provides. Most

stores are located within Big Bazaar,Central and Pantaloon and act as strong footfall

generators. These are separated stand alone Food Bazaar as well. The business


44/76

contributed just under 50% of value retailing and 20% to the company;s turnover

during 2005-06.Food Bazar offers a variety of daily consumption items,which includes

staples,soaps and detergents,oils,cereals and biscuits. On the product category side ,

the primary segregation is done on the basis of staples,fresh products,branded

foods,home and personal care products.

Changing Food PreferencesFood Bazaar talks to the housewives of india and constantly learns from

them and it is at the forefront of changing preferences. Some of the trends that were

noticed during year were increased consumption of processed food category and

ready to eat concepts. Besides an increasing number of working women are

experimenting lot with their cooking habits and this is opening up of new food

categories. Also,an increase in young people opting for impulsive and on the move

snacks were noticed. One of the distinct change was an increasing shift towards health

based food products. Food Bazaar is working on new categories to capitalize these

changes.

Partnerships

Food Bazaar's strategy would be dual. It will continue on its road map ofrevamping its current portfolio of private labels, either through strategic tie-ups with

established players or continue its in-house initiatives, and at the same time enter into

additional consumer centric categories by creating new brands.

Restaurant BusinessWhile consumers in the West spend nearly 46% of their food expenditure on

away from home meals, Indian consumers spend only about 3% of their food

expenditure in hotels and restaurants. However a significant trend noticed in this group

is that almost 8% of their wallet share is spent on eating on at either a restaurant or a

fast food joint,as compared to other forms of entertainment. In addition,two out of every

five households in this group eats out at least once a month. This presents a new an

exciting opportunity for organized players in the foods and restaurants business.

International and domestic multi-unit restaurant groups are expected to drive the

expansion in the restaurant industry in India. Among the leading trends in this regard

would be expansion of quick service restaurants,Fusion concepts,restaurants with a

focus on entertainment,and ethnic and regional cuisine restaurants.


45/76

Joint Venture with Blue FoodsWith the intention of expanding the organized food and restaurant business

in the country,the company entered into a equal joint venture with blue foods Pvt. Ltd.

Through its PAN India food solution private limited subsidiary. The alliance aims atoffering the best in Indian and multi cuisine preparations to Indian public,capitalizing on

the modern retail experience and customer insights that Pantaloon provides coupled

with Blue Foods reputation as a pioneer in this business.

FINANCIAL PERFORMANCES

The growth in the retail sector was reflected in the financial results of PRIL

for 2005-06. For the year ended june 30, 2006, PRIL reported a total income of

Rs.18.72 billion in 2004-05. The company also reported a 66.4% rise in net profit, i.e.

Rs 641.5 million for 2005-06 as against Rs 385.5 million in the previous year. The

company's growth momentum continued as PRIL, recorded a net profit of Rs 386.4

million for the quarter in that Sep30'06.This was an increase of around 186% over

corresponding period of the previous year.

COMPANY FUTURE PLANS BY 2010

FORMAT SALES (in Rs. Crores)

Big Bazaar 7650


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Converge M 5335

Food Bazaar 3250

Home Town 3200

Central 2300

Health Village 1725

Future Bazaar 1600

E-Zone 1550

Pantaloon 1500

Planet Retail 1250

Depot 880

Fashion station 770

Liberty 480

Electronics Bazaar 470

Collection I 390

Furniture Bazaar 150

all 100

Blue Sky 100

TOTAL 32700

Revenues $ 7 billion

Investment 4000 (Rs. Crores)

Retail Space 30 million sq. ft.

Profits $ 1 billion

Employees 120000


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CHAPTER 3

DISCUSSIONON

TRAINING

ROLES AND RESPONSIBILITIES

The trainee roles & responsibilities include-


48/76

1. Check previous day's performances

Daily Sales Report(DSR), today's target.

Past Day's Performance and department target's.

2. Brief entries that day's target Give individual target to the team members.

Share previous day's sales achievement with the team members.

3. Check department's cleanliness Shelves

Gap tables

Merchandise Stacking

Floor etc

4. Identify the stock vs sales Identify fast moving and slow moving goods

Identify stock outs

5. Checking display area Promotional area

Offer display and communication

Signage

Smooth customer circulation should be kept in mind

6. Observing the Customers Taking problems of the customers to store manager notice by observing .

Issues fresh by customers at the time of store launch like price related issue,

billing, gifts, etc.

7. Doing the marketing activities The trainee has done some marketing activities like promotional activities

inside the store and done some surveys on identifying the target areas to promote

the store such as individual houses, flats and schools.

8. Checking staff discipline Uniform

Shoes


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Attendance

Punctuality

Ensure proper stock filling

9. Ensure all the stocks are properly tagged (hard tags & soft tags).

10. Ensure all damaged stock has been removed from the floor.

11. Check sufficiency on the floor.

12. Monitor Sales and services.

13. Training in Depot's department. The trainee has undergone training in Depot's department and taken these

responsibilities in that department from opening the department to closing the

department.

DESCRIPTION OF LIVE EXPERIENCEThese are some of my live experiences and learning from the store:

As a trainee I gained enough experience particularly in relation to the initial

efforts such as floor designing, stores arrangement, selling counters, billing &

delivery counters which are the primary in fracture facilities to be in place for the

take off, impressing the customers.

I got a first hand experience of the desirable effect team work. An exposure to

work with the immediate superiors and experienced colleagues. And to learn the

practical aspects of retailing, face to face dealing with the customers.

I learnt that relationship marketing, the essence of the successful retailing is

lesson to be learned step by step and continuously everyday. Retailing provides

this wonderful opportunities of imbibing this vital quality of dealing with customers

reaching up to their expectations, as each customer leaves a clue that would

please customers.

Indeed the exposure at our companies retail outlets taught enough of the

practical marketing and sales essentials, which were further enhance with timely

and on the spot guidance rendered effectively by the supervisor on the floor.

The added advantage visibly felt by all trainee was their movement to retail


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outlets of the company situated in various areas, which had widened their meeting

customers at different locations understanding the differences in the purchase

preference.

The experience of using PT40 for checking the stock done successfully let in the

evening after close off business for four days was thrilling.

I Learnt many things from store such as:- How offers and promotions are executed on floor to increase the sales.

How meetings are conducted successfully.

How to check daily sales and plan for targets, smooth handling of operation.

How to handle pressure in difficult situations,keep benchmarks and try to achieve

that.

Understanding the organization and the store objectives, pool all resources

together to achieve those objectives. Preparing questionnaires and interacting

with customers with a great experience.


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LUGGAGE DEPARTMENT @ BIGBAZAAR

LUGGAGE

SOFT-LUGGAGE TRAVEL-ACCESSORIES HARDLUGGAGE

CDPACKS

SOFT TROLLEYS HARD-

TROLLEYS

HIP-BAGS/BELTS

BACK PACKS

HARD-

SUITCASE

NECK-POUCH

MESSAGE BAGS

LOCKS

OFFICE BAG

CARD-HOLDERS

SUIT CASE

POUCHES

AIR BAGS

CAMERA-POUCHES

BRANDS AVAILABLE IN LUGGAGE DEPARTMENT:- MILESTONE VIP SAFARI AMERICAN TOURISTER TRACKER, etc.

PROCESS @ LOGISTICS

The process starts when a requirement of the store is noticed by the department as

well as the store. The category or the ware house is informed about the requirement

and the category gives a PO(Purchase order) to vendor. Then the vendor sends the

required products in a truck to the store along with the invoice, waybill & barcode on

the product.


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Then the following steps are carried out:-1. First the vehicle arrives to the basement of the Big Bazaar.

2. The driver shows the gate pass , STN(stock transfer note) ,pick slip, VAT515 to

the security and other officials.

3. Gate pass constitutes date of dispatch, no. of boxes, security sign, security seal,

vehicle no., seal no. quantity & order no.

4. Pick slip constitutes details of the stock.

5. VAT515 is commercial tax & is very important. It has to be taken with the driver

otherwise the police may seize the truck. It constitutes total no. of boxes, total cost,

date, etc.

6. After that 5 members are called to the spot.

7. The 5 members constitute security, unloaders, permanent staff, logistics member

& driver.

8. Then the orange color seal on the backdoor of the truck is checked.

9. Then in front of all the members the seal is opened. Then the box are checked.

The box has Handling unit sticker.

10. This sticker constitutes box no., stn no.,address & date.

11. Then by the help of the unloaders the boxes are brought down from the truck &

unloading is done.

12. By the help of Gate pass, STN & VAT, the products are checked and counted.

The ware house seal is also seen.

13. Then the department staff is called for Global Count to check quantity.

14. The pick-slip is given to the staff or team member. They will open by checking

the H.U. no. the member checks the Barcode on pick slip with the product Bar

Code.

15. If there is quality defect, damage, shortage, excess or expiry then Discrepancy

note is made.

16. In the discrepancy note article no., no. of pieces, cost price, total MRP. & the

reason of discrepancy is noted.

17. Then it is taken to the logistics office and the member does scanning.

18. After scanning, it is send to the floor for sale.

19. After these all the officials of the logistics does in warding and out warding on

the system as well as in the register.


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20. Then the Goods Receiving Note is generated(GRN) by the logistics.

CUSTOMER SERVICE DESK(CSD) @ BIGBAZAAR

1. Announcing offers for every department.2. Announces, if any officials is not available in the respective department.

3. Provides stamp for the warranty of the product.

4. Solves queries of the customers.

5. Availability of gift items during occasions, etc.

6. Exchange of products of customers due to damage, etc.

7. Creates effective communication with the logistics and every dept. of the store.

8. Sorts out the product inquiries.

9. Its a medium by which all the members stay connected.

CRM @ BIGBAZAAR

CRM Introduction

CRM, or Customer relationship management, is a number of strategies and

technologies that are used to build stronger relationships between companies and their

customers. A company will store information that is related to their customers, and they

will spend time analyzing it so that it can be used for this purpose.

Some of the methods connected with CRM are automated, and the purpose of

this is to create marketing strategies which are targeted towards specific customers.The strategies used will be dependent on the information that is contained within the

system. Customer relationship management is commonly used by corporations, and

they will focus on maintaining a strong relationship with their clients. There are a

number of reasons why CRM has become so important in the last 10 years. The

competition in the global market has become highly competitive, and it has become

easier for customers to switch companies if they are not happy with the service they

receive. One of the primary goals of CRM is to maintain clients. When it is usedeffectively, a company will be able to build a relationship with their customers that can


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last a lifetime. Customerrelationship management tools will generally come in the form

of software. Each software program may vary in the way it approaches CRM. It is

important to realize that CRM is more than just a technology.

Types of CRM

1) Operational CRMOperational CRM provides support to "front office" business processes, e.g. to

sales, marketing and service staff. Interactions with customers are generally stored in

customers' contact histories, and staff can retrieve customer information as necessary.

2) Sales Force Automation (SFA)Sales Force Automation automates sales force-related activities such as:

Activity Management: Scheduling sales calls or mailings

Tracking responses

3) Analytical CRMAnalytical CRM analyzes customer data for a variety of purposes:

Designing and executing targeted marketing campaigns Designing and executing campaigns, e.g. customer acquisition, cross-selling, up-selling

Analyzing customer behavior in order to make decisions relating toproducts and services (e.g. pricing, product development)

Management information system (e.g. financial forecasting andcustomer profitability analysis

4) Collaborative CRM

Collaborative CRM covers aspects of a company's dealings with

customers that are handled by various departments within a company,

such as sales, technical support and marketing.


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5) Consumer Relationship CRM

Consumer Relationship System (CRS) covers aspects of a company's dealing with

customers handled by the Consumer Affairs and Customer Relations contact centers

within a company

6) Geographic CRMGeographic CRM (GCRM) combines geographic information system and traditional

CRM. Geographic data can be analyzed to provide a snapshot of potential customers in

a region or to plan routes for customer visits.

4.6 Benefit of CRM Provide better customer service

Increase Customer Revenue

Increase Customer Life-Cycle Value

Discover New Customers

Help Sales Staff to close deal fast

Simplifying Marketing and Sales Process

Make Call Centre more effective

Implementation of CRM

Many CRM project "failures" are also related to data quality and availability. Data

cleaning is a major issue. If a company's CRM strategy is to track life-cycle revenues,

costs, margins, and interactions between individual customers, this must be reflected in

all business processes. Data must be extracted from multiple sources (e.g.,

departmental/divisional databases such as sales, manufacturing, supply chain,

logistics, finance, service etc.), which requires an integrated, comprehensive system in

place with well-defined structures and high data quality. Data from other systems can

be transferred to CRM systems using

appropriate interfaces. Because of the company-wide size and scope of many CRM

implementations, significant pre-planning is essential for smooth roll-out. This pre-


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planning involves a technical evaluation of the data available and the technology

employed in existing systems. This evaluation is critical to determine the level of effort

needed to integrate this data. Equally critical is the human aspect of the

implementation. A successful implementation requires an understanding of the

expectations and needs of the stakeholders involved. An executive sponsor should also

be obtained to provide high-level management representation of the CRM project.

An effective tool for identifying technical and human factors before beginning

a CRM project is a pre-implementation checklist. A checklist can help ensure any

potential problems are identified early in the process.

Privacy and data security

One of the primary functions of CRM software is to collect information about

customers. When gathering data as part of a CRM solution, a company must consider

the desire for customer privacy and data security, as well as the legislative and cultural

norms. Some customers prefer assurances that their data will not be shared with third

parties without their prior consent and that safeguards are in place to prevent illegal

access by third parties.


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CHAPTER 4STUDY

OFRESEARCHPROBLEM


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STATEMENT OF RESEARCH PROBLEM

A knowledge of the customer satisfaction, services rendered by Bigbazzar,

perceiving the prices of their product & services, availability of Big Bazzar,

customer outlets in close proximity and mainly awareness of Big Bazzar Retail

service helps in formulating an approximate marketing strategy to grab a good

market share in a tough competitive market. A study of this aspect would enable the

to know their market share and awareness level of the Big Bazzar.

Hence this research problem has been undertaken. The main aim of this project is to

study the rate of awareness & satisfaction among the consumers about Big Bazzar

prepaid, to study the factors contributing to consumer preference for BigBazzar

product and to study consumer perception about pricing of Big Bazzar product &

service.

STATEMENT OF RESEARCH OBJECTIVES

1. To study the degree of awareness among the consumers about Big Bazzar.

2. To study the factors contributing the consumers preference for Big Bazzar

Products.

3. To study consumer perception about pricing of Big Bazzar.

4. To obtain consumers rating of various plans offered by Big Bazzar.

5. To identify the factors which contribute to consumer overall satisfaction of


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Big Bazzar.

RESEARCH DESIGN & METHODOLOGY

RESEARCH METHODOLOGYFor the study perspective, the Researcher has done a survey to know the CRM tools in

Retail Industry.

1. Problem Identification:The first step in marketing research project is to define the problem. It includes

purpose of the study, the relevant background information, the information needed and

how it will be used in decision making. It involves discussion with the decision makers,interviews with industry experts, analysis of secondary data and some qualitative

research.

There are some of the problems which identifies in the following.

A number of Customers feel that Big Bazaar is not maintaining customer

relationship.

A number of people are not satisfied with service of Big Bazaar.

A number of people are not aware about schemes launched by Big Bazaar.

Sales Staff of Big Bazaar is not up to mark to solve complains.

2. Research DesignThe researcher will use Descriptive Research. Study the objective frame, the

research design prepared is descriptive research. The descriptive frequency with which

something occurs or how the variables vary together. The advantage of descriptive

design is that it is not based on judgment or intuition as in the case study but it is

based on the actual data collected and its therefore more accurate in general. On the

fundamental drawback of descriptive design is that it does not find cause and effect

relationship among variables. Initially the information has been collected from related

secondary sources, i.e. textual references, journals, magazines, publications etc.

related to the topic. After exploration of information, descriptive research was initiated

by formulating structure questionnaire. Since, this study is mainly a descriptive

research, conclusions have been drawn from each question in the questionnaire

process its own objective in itself.Questionnaire being designed by keeping each and


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every variable in mind.

3. Data Collection and Sampling:-Primary data are used for the core purpose of the project. And this primary data has

been gathered by survey method.

Data collection Tools: Questionnaire, personal interview, observation method.

4. Sampling Unit:I) Who is to be surveyed? Youngsters, business people, educated housewives

were selected to conduct survey and to check their attitude.

II) Sampling types: For the purpose of the study simple random sampling

was used.

III) Sample Size: Survey of100 respondents is carried.

IV) Sampling Area: Was outside Big Bazaar shopping mall.

5. Data Analyze and Interpretation : Tables and graphs.

LIMITATION OF THE PROJECT

Each task has its own advantage or disadvantages and barrier in the cause of

action, but this does not mean that the task should get stop whenever certain limitation

arise. Each aspect has its own limitation. I try my best to overcome these obstacles.

There are some limitations of this project:

Some customers are not willing to give proper response. Some customers have

not purchase product from all section of Big-Bazaar,but they give their view for all

section.

Due to difference in language, sometimes I have to fill up the questionnaires

according to they answer.

Being student, money and time were my major limitation.

Some of respondents were not co-operative they didnt provide some of the

details.


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The population under the study is subject to limitations of particular region and

respondents the information regarding bangalore district only.

ANALYSIS & INTERPRETATION OF DATA

1 . Which Retail shop you usually go to purchase?

DECISIONS Big Bazaar RelianceFresh

A.B. More Others

Respondents 63 7 5 25

RES. (%) 63.00% 7.00% 5 25

fig:-1

Interpretation:-The most of the peoples are using the difference type of the retail shop, there are

63% of respondents are going purchase in the Retail shop of Big-Bazaar, 7% of

respondent choose to Reliance Fresh, 5% of respondents are choose to Aditya Birla

MORE, 25% of respondents are choose to other Retail shop for purchasing the goods

and other services.

2. How many Retail shop do you visit?

Decisions Respondence Res.(%)

Only one Retail store 31 31%

More than 1 but less than5

27 27.00%


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Any Retailer 42 42.00%

fig:-2

Interpretation:There are different time of retail shop visited by the respondents as like, 31% of

the respondents are going to only one retail store for purchasing, 27% of respondents

are choose to the more than 1 but less than 5 retail store, 42% of the respondents are

choose to any retail shop for the visiting.

3. Which are the reason for selecting retail store?

Decisions Respondence Res. (%)

Near he home 21 21.00%

Have loyalty card 9 9.00%

Good quality of product 70 70.00%

fig:-3


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Interpretation:

There are different types of the reasons for choosing/selecting the retail stores

like, 21% of respondents are like to choose for the near the home, 9% of peoples are

choose for have loyalty card, 70% of the respondents are like to choose for the good

quality of the product.

4. Are you aware about Big-Bazaar?

Decisions YES NO

Respondence 97 3

Res.(%) 97.00% 3.00%

fig:-4

Interpretation:The brand awareness about the Big-Bazaar as like, 97% of respondents are

aware about the Big-Bazaar, and 3% of the respondents are not aware about the Big-

Bazaar.

5. Since, when you aware about the Big-Bazaar?

Decisions Respondence Res.(%)

Less than 1 month 4 4.00%

1to 5 months 9 9.00%


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5 to 10 months 23 23.00%

More than year 64 64.00%

fig:-5

Interpretation:

The period of awareness about the Big-Bazaar as like, 4% of the respondents

are aware in the period of less than 1 month, 9% of respondents are aware in the

period of between 1to 5 months, 23% of respondents are aware in the period of

between 5 to 10 months, 64% of respondents are aware in the period of more than the

year.

6. Are you satisfied with the services that are provided to you by Big-Bazaar?

Decisions YES NO

Respondence 77 23

Res.(%) 77% 23%


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fig:-6

Interpretation:

The satisfaction about the service of the Big-Bazaar,

Documents

FINAL-Vijay Kumar N