Pantaloons 9.8 Now

8/4/2019 Pantaloons 9.8 Now

http://slidepdf.com/reader/full/pantaloons-98-now 1/43

By:- Group No. 10

SEN HALL

GROUP –

ASMART RIDERS



PANTALOONS RETAIL (INDIA) LTD

2

V I K A SM I S A R



INTRODUCTION

Led by its flagship enterprise, Pantaloon Retail, the group operates

over 12 million square feet of retail space in over 71 cities and townsand 65 rural locations across India.The group owns several leadingformats including Pantaloons, Big Bazaar, Food Bazaar, Home Town,eZone and Central.

Pantaloons is among India's largest chains of fashion stores.Pantaloons Fresh Fashion, with its focus on 'fresh look, feel andattitude' offers, trendy and hip collections that are in sync with thehopes and aspirations of discerning young and 'young-at-heart'consumers.

Pantaloons Fresh Fashion stands out as a fashion trendsetter, onthe lines of how fashion is followed internationally. This 'fresh fashion'destination allows customers to shop for the latest in fashion appareland accessories throughout the year in an attractive and visuallystimulating ambience. 3



Pantaloons Fresh Fashion stores have presence with stores not justin Metros but also in smaller towns. All stores have a wide variety ofcategories like casual wear, ethnic wear, formalwear, party wear andsportswear for Men, Women and Kids.

Marketing intermediaries whose job is to help move goods from theraw-material state to producers and then on to consumers createutility

Utility is an economic term for the value, or want-satisfying ability

The success of a firm often depends on its ability to take orders,process them, and get the goods to customers / DistributionChannels



Fifth largest globally

India is positioned as the leading destinationfor retail investment

India’s retail industry accounts for 10

percent of its GDP and 8 percent of theemployment to reach $17 billion by 2010

Retail sector is expected to contribute to 22per cent of India's GDP by 2010.



India’s leading retail groups, operating multiple

retail formats across the market, part of FutureGroup

The company’s leading formats include Pantaloons,

a chain of fashion outlets, Big Bazaar, an Indianhypermarket chain, Food Bazaar, a supermarketchain, and Central, a chain of destination malls

Collaborated with India’s leading boutique film

company Vinod Chopra Films



Our customers and stakeholders shall be servedonly by creating and executing future scenarios inthe consumption space leading to economicdevelopment.

We will be the trendsetters in evolving deliveryformats

We shall infuse Indian brands with confidence andrenewed ambition.

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



BOARD OF DIRECTORS SHAILESH HARI BHAKTI GOPIKISHAN BIYANIChairman & Non-Executive Independent Dr Non-Executive Director Director

KISHORE BIYANI RAKESH BIYANI

Managing Director Executive Director Director

S DORESWAMY VIJAY BIYANI

Non-Executive Independent Director Executive Director

Dr. DARLIE KOSHY KAILASH BHATIA

Non-Executive Independent Director Executive Director

BALA DESHPANDE ANIL HARISH

Non-Executive Independent Director Non-Executive Independent Director

CHIEF FINANCIAL OFFICER

C.P. TOSHNIWAL

COMPANY SECRETARY

DEEPAK TANNA

STATUTORY AUDITORS

NGS & CO.

RISK ADVISORS

ERNST & YOUNG PVT. LTD 8



BANKERS

BANK OF INDIA

AXIS BANK LTD.

ANDHRA BANK

CORPORATION BANKHDFC BANK LTD.

IDBI BANK LTD.

STATE BANK OF TRAVANCORE

UCO BANK

STANDARD CHARTERED BANK

THE FEDERAL BANK LTD.UNION BANK OF INDIA

SHARE TRANSFER AGENTS

LINK INTIME INDIA PVT. LTD.

C-13, Pannalal Silk Mills Compound,

LBS Marg, Bhandup (West),

Mumbai 400 078.

Tel . No. + 91 22 2596 3838

Fax No. + 91 22 2594 69699



OFFICE

10

REGISTERED OFFICE & CORPORATE OFFICEKnowledge House, Shyam Nagar,Off Jogeshwari-Vikhroli Link Road,Jogeshwari (East), Mumbai – 400 060.Tel. No. : + 91 22 3084 1300Fax No. : + 91 22 6644 2201



2009-10

STRONG SAME STORE SALES GROWTH, COUPLED WITHINCREASED OPERATIONAL EFFICIENCY PROVIDED A

FRESH IMPETUS TO THE BUSINESS.During the year, with a limited amount of capital employed

into the retail business, the company managed a signifi cantincrease in the overall turnover. An incremental turnover ofnearly ` 2,500 Crores was achieved on a limited capital

employed of ` 620 Crores, translating into an incrementalcapital employed ratio of close to 4% or a three-fold increasein the overall balance sheet effi ciencies correlated to top-line.

11



LINES OF BUSINESS

The company is present across several lines of business which have various formats (stores)Plywood, The Dollar Store (JV)

Fashion - Pantaloons, Central, aLL, Brand Factory, Blue Sky, Top 10, Fashion Station, BigBazaar, Lee Cooper (JV),IPM MEERUT(JV)

General Merchandise - Big Bazaar, Shoe Factory, Navras, Electronics Bazaar, FurnitureBazaar, KB'S FAIR PRICE, Food Rite

Electronics - eZone, Electronic Bazaar, STAPLES (JV)

Home Improvement - Home Town

Furniture - Collection i, Furniture Bazaar, Home Bazaar

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

Books & Music - Depot

Leisure & Entertainment - Bowling Co., F123, TGIF (Thank God it's Friday!)

Wellness - Star & Sitara, Tulsi

Telecom & IT - Gen M, M Bazaar, M-Port, ConvergeM, Future Axiom, T 24, One Mobile (inalliance with TATA Teleservices)

Consumer Durables - Koryo, Sensei, IPAQ

Service - E Care, H Care , Design & Service

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

Investment & Savings - Insurance: ULIP, Pension, Endowment etc. 12

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

http://www.futurebazaar.com/

http://www.futurebazaar.com/

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



Menswear

Ladies wear

Kids wear Footwear Lee-cooper,

etc.

Cosmetics

Sportswear

Perfumes & Handbags

Lingerie

RIG, John miller, JM sports etc.

Honey, Annabelle, Mix & Match, etc.

Chalk, Bare7214, etc

Lakme, Garniere, etc

Addidas, Reebok, etc

Hugo, Tommy Hilfiger, etc



The material distribution structure that moves aproduct from the manufacturer to the consumer oruser.

The marketing structure that, as a part of thedistribution channel, ensures the achievement ofmarketing objectives

70% of their business is done by selling their ownproducts



Direct Channel

Indirect Channels

Manufacturer Consumer

Manufacturer Retailer Consumer

WholesalerManufacturer Retailer Consumer

Manufact

urer

Wholesaler Retailer Consumer Agent



In store Pantaloons keep 70% of products of their ownbrand.

Remaining 30% include complete inventories of non-apparels & and some apparels brands like UMM, RangMunch, Bare Denim, leisure Denim & Rig etc

Manufacturer

(own)

()

Retailer Consumer

FKS

(Pantaloon)

s) Manufacturer

(other)

Retailer Consumer



Decision to stop the supply of its ready-madegarments to other outlets

Pantaloon has decided to open up DistributionCollection Center (DCC) in the four major metrocities of the country

They are among the very few retailers who makeserious and optimum use of barcodes and ERPs



RETAIL FORMAT OBSERVED AT PANTALOONS

RetailStrategy

Customer Service

Merchandise

Assortme

nt

Location

Communication

Mix

Pricing

StoreDesign &

Display

18



STORE LOCATION The location of a retail store occupies an

important place in retail strategy. It notonly conveys the image of the store, butalso influences the merchandise mix andthe interior layout of the store. While themerchandise mix can be changed andprices can be adjusted, it is difficult tochange the decision on store location.

It is located in posh locality in the centre ofthe city. Further the easy availability oftransport facilitates makes the locationreally accessible for shopping.

Pantaloons is situated very close to themain road. Pantaloons being a three floorbuilding have great visibility. To enhancethe visibility pantaloons has put its signboard on the top of the building. 19



MERCHANDISE ASSORTMENT

Pantaloons have applied the concept of category management inits day-to-day merchandising function as against the traditionalbrand management merchandising practice followed by mostretailers. Category managers look at sales and margins of eachbrand in a category. The whole idea of category management is tocreate products across length and breadth of a category atdifferent price points, fabrics, design, shape, seasons, colour andsize.

20



PRODUCT OFFERINGS

21

LADIES WEAR

• Honey

• Akkriti

• Annabelle

• Mix & Match

• Ajile

• Rig

KID’S WEAR

• Chalk

• Bare 7214

ACCESSORIES

• Cosmetics

• Stationary for

kids• Books &

Magazines

MEN’S WEAR

• John Miller

• JM Sports

• Bare Denim• Rig

• Ajile

• Lombard

• T-2000

• Bare Leisure



PRODUCT OFFERINGS CHART

.

PlantoonBrands

Men’s

Formals Casuals Ethnic

Women’s

Formals Casuals

NonPlantoo

n

Brands

Men’s

Formals Casuals

Women’s

Formals Casuals Ethnic

22

LombardKnighthood

RIGUMMAgileBareT2006JM SportsLee Copper

AakritiF Factor

Annabelle HoneyAgile

John MillerUrbabaScullersIndigo Nation

Pepe Scullers Jealous21BareRIGUMMLee Copper

Rang ManchTrishaMix & MatchAakriti



POPULAR BRANDS

23



STORE LAYOUT Pantaloons follows a free form store layout. No particular format is followedanything is placed anywhere but strategically. Pantaloons fall under followingcategories- Departmental stores, Malls, E-retailers Here when it comes to

arranging the clothes, same type of clothes are put up together in differentsizes so that same clothes are available for every size at one point only.

24



STORE LAYOUT AT DIFFERENT LEVELS

25

Ground Level• Ladies Formal

• Ladies Denim

• Cosmetics andFragrances

• Fine Jewellery• Blue Sky

(Sunglasses andWatches)

• Fashion

Accessories• Customer Service

Desk

Second Level• Men’s Occasion’s

Wear

• Men’s Formal

• Men’s Ethnic

• Denim Wear

• Men’s Casuals

• Active Wear ,Sporting Goods

• Teen Boys

• Men’s Washroom

• Drinking Water

First level

• Spring (Designerwear for men andwomen)LadiesFormal

• Ladies Ethnic• Night ware andLingerie

• Kids Wear

• Infant Necessities

• Toys• Footwear

• Ladies WashRoom

• Drinking Water



STORE DESIGN

Exterior Store Design

The exterior appearance of a store silently announceswhat customers can expect inside. Good exteriorvisual merchandising attracts attention, creates

interest and invites the customer into the business.

26



STORE DESIGN Interior Store design

Flooring and Ceiling Graphics & Sign agesLighting Music

Store security Colour & Fragrance

27



SPACE ALLOCATION ANDUTILIZATION

• Furniture and fixtures

• Walk Ways and Entries

• Sound type and density • Odour type and density

• Visual merchandising- Merchandise Type and Density

28



DISPLAY AREAS, WALKWAYS &DOORS Pantaloons stores have very attractive display areas, inwhich they put the dummies, accessories & all. They havea broad walkway & doorways.

29



SUPPLY CHAIN MANAGEMENT AT PANTALOONS

Pantaloon Retail is the firstcompany in the organized

retail sector in India to winan accredited ISO Certificateexclusively for its SupplyChain & Logistics function.

30



PRICING

31

High turnover

Low turnover

High MarginLow Margin

Since Pantaloons provides products to a potentially large number of

customers at affordable prices, it falls in the High Turnover - Low MarginCate or .



PRICING

They propose to provide branded products at 10% lessthan the MRP and 20% off on the local brands, which issimilar to what has been carried out in Big bazaar.

32



CUSTOMER RELATIONSHIPMANAGEMENT

To survive in the tough competition Pantaloon uses different strategies to attract customers and to retainthem. – Events

– Fests

– Loyalty programs

– Gift Vouchers

33



LOYALTY PROGRAMSGreen Card is passport to a whole new world of exclusive benefits

and privileges.

34

Benifits 7 Star 5 Star 3 Star 1 Star

Discounts on allpurchases

10% 7.5% 5% Gift Voucher ofRs.200/- on newenrolment

Upgrade Enrolment Upgrade Kit Upgrade Kit Upgrade Kit Welcome Kit

Add-on Card toFamily Members

2 2 1 1

End of Season SalePreview

Yes Yes Yes Yes

Green Channel Yes Yes Yes Yes

Green Drop Yes Yes No No

Green Exchange 90 days 60 days 60 days 60 days

Green ServiceDesk

Yes Yes Yes Yes

Green offers &Promotions

Yes Yes Yes Yes



PROMOTIONAL STRATEGYGIFT VOUCHERS

GREEN CARDS

35



POSITIONING STRATEGY

Initially positioned as a family store, it finally veered

towards becoming a fashion store with and emphasis onyouths and clear focus on ‘FRESH FASHION’. They aretargeting youth and even women, since they are the onesdefining most purchasing decisions.

36



COMPETITION Being one of the pioneers of the organized retail sector,the company has an

Established business model along with an unparalleled understanding ofIndian consumers and their needs best.

During the year, the government has initiated some dialogue on the openingup of the retail sector to foreign direct investment (FDI) in a calibratedmanner. This may result in some foreign players, along with new domestic

players entering the sector in the near future. Some of the world’s leading retailers are already present in the country

either

through joint ventures and franchisee agreements with local players orthrough cash-and-carry operations.

They view these developments as a positive opportunity as the entry of newplayers would only expand the modern retail market which is currently

merely 5%-7% Penetrated.

37



Investment

The Company’s investment portfolio has increased marginally from `954.03 Crores in 2008-09 to 1024.65 Crores (excluding PRIL

investment of ` 978.50 Crores into FVRL) in 2009-10.The increase ininvestment during the year is mainly by way of subscription of sharesin Subsidiaries/Associates/Joint Ventures.

Sales

The Company’s sales and other operating income has increased from6341.70 Crores to ` 8926.08 Crores, an increase of 40.75% over theprevious year.

The Company has also recorded same store growth of10.64% duringthe year.

Net Profi t

Net profit t of the Company for the year under review stood at `230.16 Crores as compared to ` 140.58 Crores in the previous year,an increase of ` 89.58Crores and 63.72% over the previous year. 38



Loans and Advances

Loans and advances stood at ` 1027.77 Crores in 2009-

10, a decrease of ` 174.78 Crores over the previous

fi nancial year. The major component of loans and advances represents advance lease deposits for the stores

paid to lessors and advances given to suppliers Capital employed

The capital employed in the business increased by

` 598.49 Crores in 2009-10. This is refl ected in the

liabilities side of the balance sheet through an increase in borrowings by ` 64.80 Crores and an increase in

shareholders funds by ` 533.69 Crores. Return on capital

employed has increased from 14.73% to 16.69%.

Dividend The Company has proposed a dividend of ` 0.80 (40%)Equity shares of the

Company including Class B Shares,and on warrants if converted on orbefore the Book Closure date declared for dividend.

39



SWOT ANALYSISStrength

“ Pioneer in the industry, largest market share and capitalization.

“ Reputation for value for money(Competitive pricing), convenience and a wide range of products all inone store

“ Presence in major cities

“ Highly Strategic human resource management and development. It invests time and money in trainingpeople, and retaining them.

“ Most trusted and respected brand by the consumers“ Being financially strong helps pantaloons retail India deal with any problems, ride any dip in profits

and out perform their rivals

“ Development and Innovation are high at Pantaloons India with regards to it products and consumerpreferences and lifestyle changes which keep its ahead of it competitors.

Weakness

“ Pantaloons does not function internationally, which has an effect on success, as they do not reachconsumers in overseas markets.

“ PRIL is the World’s largest grocery retailer and control of its empire, despite its IT advantages, couldleave it weak in some areas due to the huge span of control

“ Since Pantaloons Retail India Ltd sell products across many sectors, it may not have the flexibility of some of its more focused competitors. 40

Opportunities

http://www.marketing91.com/pricing/

http://www.marketing91.com/pricing/



Opportunities

“ Huge untapped market

“ (The Indian middle class is already 30 Crore & is projected to grow to over 60 Crore by2010 making India one of the largest consumer markets of the world)

“ Organized retail is only 3% of the total retailing market in India. It is estimated to grow at

the rate of 25-30% p.a. and reach INR 1, 00, 000 Crore by 2010.“ To take over, merge with, or form strategic alliances with other global retailers, focusing on

specific markets

“ New locations and store types offer PRIL opportunities to exploit market development.

“ Opportunities exist for PRIL to continue with its current strategy of large, super centres.“ Rural Retailing

Threats

“ Being number one means that you are the target of competition.(Extra competition andnew competitors entering the market could unsteady pantaloons retail India)

“ A slow economy or financial slowdown could have a major impact on pantaloons retailIndia business and profits.“ Consumer lifestyle changes could lead to less of a demand for pantaloons retail Indiaproducts/services“ Price wars between competitors, price cuts and so on could damage profits forpantaloons retail India.“ The actions of a competitor could be a major threat against pantaloons retail India, forinstance, if they bring in new technology or increase their workforce to meet demand

41

http://www.marketing91.com/strategy/

http://www.marketing91.com/strategy/



It was a great experience to explore the retail sector ofPantaloons .Shopping in India has witnessed a revolution withthe changes in the consumer buying behavior and the wholeformat of shopping altered.

It is expected that by 2010, India may have 600 new shoppingcenters.

Pantaloons ranks in the pyramid of Indian Retail with itsbrilliant consumer centered approach and marketing.

To compete in this sector one needs to have up-to-datemarket information for planning and decision-making.

The second most important requirement is to manage costswidely in order to earn at least normal profits in face of stiff

competition



THANK YOU

43

Documents

Pantaloons 9.8 Now