Retail Assignment on Pantaloons.docx

7/29/2019 Retail Assignment on Pantaloons.docx

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Industry Overview

The India Retail Industry is the largest among all the industries, accounting

for over 10 per cent of the countrys GDP and around 8 per cent of theemployment. The Retail Industry in India has come forth as one of the most

dynamic and fast paced industries with several players entering the market.

But all of them have not yet tasted success because of the heavy initial

investments that are required to break even with other companies and

compete with them. The India Retail Industry is gradually inching its way

towards becoming the next boom industry.

A large young working population with median age of 24 years, nuclear

families in urban areas, along with increasing workingwomen population and

emerging opportunities in the services sector are going to be the key factors

in the growth of the organized Retail sector in India. The growth pattern in

organized retailing and in the consumption made by the Indian population

will follow a rising graph helping the newer businessmen to enter the India

Retail Industry.

In India the vast middle class and its almost untapped retail industry are the

key attractive forces for global retail giants wanting to enter into newer

markets, which in turn will help the India Retail Industry to grow faster.

Indian retail is expected to grow 25 per cent annually. Modern retail in India

could be worth US$ 175-200 billion by 2016. The Food Retail Industry in

India dominates the shopping basket. The Mobile phone Retail Industry in

India is already a US$ 16.7 billion business, growing at over 20 per cent per

year. The future of the India Retail Industry looks promising with the

growing of the market, with the government policies becoming more

favourable and the emerging technologies facilitating operations.


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A large young working population with median age of 24 years, nuclear

families in urban areas, along with increasing workingwomen population and

emerging opportunities in the services sector are going to be the key factors

in the growth of the organized Retail sector in India. The growth pattern in

organized retailing and in the consumption made by the Indian population

will follow a rising graph helping the newer businessmen to enter the India

Retail Industry.

Visual merchandising today forms a critical element of retailing. Besides the

facade and windows, which are clearly done up with an objective to attract

passer-bys and induce walk-ins, there is also in-store decor that is designed

to enhance the customers comfort and convenience while shopping and

overall, offer a superior shopping experience.

Retail consists of the sale of goods or merchandise from a fixed location,

such as a department store,boutique or kiosk, or by mail, in small or

individual lots for direct consumption by the purchaser. Retailing mayinclude subordinated services, such as delivery. Purchasers may be

individuals or businesses. In commerce, a "retailer" buys goods or products

in large quantities from manufacturers or importers, either directly or

through a wholesaler, and then sells smaller quantities to the end-user. Retail

establishments are often called shops or stores. Retailers are at the end of the

supply chain. Manufacturing marketers see the process of retailing as anecessary part of their overall distribution strategy. The term "retailer" is

also applied where a service provider services the needs of a large number of

individuals, such as a public utility, like electric power.

Shops may be on residential streets, shopping streets with few or no houses

or in a shopping mall. Shopping streets may be for pedestrians only.

Sometimes a shopping street has a partial or full roof to protect customers
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fromprecipitation. Online retailing, a type of electronic commerce used for

business-to-consumer(B2C) transactions and mail order, are forms of non-

shop retailing.

Shopping generally refers to the act ofbuyingproducts. Sometimes this is

done to obtain necessities such as food and clothing; sometimes it is done as

a recreational activity. Recreational shopping often involves window

shopping (just looking, not buying) and browsing and does not always result

in a purchase.

One of Indias major retailers with presence in following two segments:

Lifestyle Retailing - Pantaloons, Central, Fashion Station, aLL, MeLa.

Value Retailing - Big Bazaar, Food Bazaar.

Retailing is the worlds largest private industry

Retail is the worlds largest private industry with global retail sales of

roughly USD 8 trillion. Retailing is also one of the biggest contributors to

the Gross Domestic Product (GDP) of most countries and also one of the

biggest employers. (Source CII McKinsey Report titled Retailing in India,

the Emerging Revolution)

In India, however, the retail sector has seen a high level of fragmentation

with a large share held by unorganized players.

Indian Retail Industry

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. In terms of

the structure, the industry is fragmented and predominantly consists of

independent, owner-managed shops. The retail businesses include a variety
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of traditional retail formats, such as "kirana" stores which stock basic

household necessities (including food products), street markets-regular

markets held at fixed centres retailing food and general merchandise items,

street vendors-mobile retailers essentially selling perishable food items-

fruits, vegetables etc. and small non specialized retailers.

Growth of Organized Retail in India

According to the 8th Annual Global Retail Development Index (GRDI) of

AT Kearney, India retail industry is the most promising emerging market

for investment. In 2007, the retail trade in India had a share of 8-10% in the

GDP (Gross Domestic Product) of the country. In 2009, it rose to 12%. It is

also expected to reach 22% by 2010.

According to a report by Northbride Capita, the India retail industry is

expected to grow to US$ 700 billion by 2010. By the same time, the

organized sector will be 20% of the total market share. It can be mentioned

here that, the share of organized sector in 2007 was 7.5% of the total retail

market.

Drivers of Growth in Organized Retailing

We believe that 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

We believe increasing household income has led to a substantial change

in the profile of the Indian consumer. A larger number of households are


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getting added to the consuming class with growth in income levels. In the

chart provided below the profile of the Climbers, Consuming and

VeryRich consumers class is biased towards self indulgent consumption

patterns.

Rich (Above Rs. 215,000) Consuming (Rs 45,000-215,000)

Climbers (Rs. 22,000-45,000) Aspirants (Rs. 16,000-22,000)

Destitute (Less than Rs.16, 000)

The consuming class and the climbers are expected to increase from

120.8 million households in 2001-02 to 157.2 million households in 2006-

07 (source: The Marketing White book 2003-04, brought outby Business

world) this large base of households with growing disposable income is

expected to drive demand for organized retail.

Of this, 56% (44.8 million households) is expected to be concentrated in

urban India.

Young population with high disposable income

India has the lowest median age of 24, for its over 1,000 million strong

population, among the other highly populous countries Thus India has the

largest young population in terms of sheer size and we believe this young

segment is the major driver of consumption as they have the ability

(disposable income) and willingness (consumer confidence) to spend.

Most of such upwardly mobile consumers have little personal time and they

seek greater variety and availability of items under a single roof and give

highest preference to convenience, which is the basic proposition of modern

retailing formats.

The brand-conscious young population forms the largest segment of demand


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for the majority of retailers.

Changing age demographics in India

(1)Availability of brands and merchandise

Consumerism and brand proliferation has been another enabler for

organized retailing in India. Mostof the worlds leading brands are now

present in India. Brands like LOreal, Espirit, Louis Vienton, Marks &

Spencer, Tommy Hilfiger, Louis Philippe, Levis, Pepe, Lee, Arrow,

Dockers, Red Tape, Clarence, Hugo Boss, Tiffany, Bulgari, Ecco,

Chambor, Revlon, Philips, Corel, Magpie, Nike, Reebok, Parker, Ray

Ban, Lego, Mattel are now present in India.

(2)Media Proliferation

Another factor that accelerated the concept of organized retail is media

proliferation. The resultant exposure to advertisements and brand

promotions across product categories has led to a growing consumer

spending across a wide range of product categories.


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(3)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.

In addition, the various States governments have taken proactive steps torelease 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 create a secondary market for real

estate in the country.

(4)Enhanced Funding Options

Supply side changes such as consumer finance help in shaping a markets

buying power. Consumer credit, especially through credit cards, has been

growing healthily year on year. Financial card usage in India has

witnessed tremendous growth with volume transactions experiencing

greatest growth.

(5)Implementation of VAT to reduce cost and complexity

Differential sales tax rates across states and the incidence of multi point

local levies added to costs and complexity, and have hampered

aggregation of sourcing. The implementation of Value Added Tax (VAT)

is also expected to narrow down the cost advantage that unorganized

retailers enjoy over the organized ones.

(6)Inbound tourists, shopping


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There is a large NRI population. Given that international lifestyle

brands are readily available in their country of migration, this population

shops for similar quality merchandise at lower prices in India on their

visits here. Additionally, inbound tourists visiting India and shopping here

seek similar products at lower costs in a similar environment.

(7)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 productcategories. Both width and depth of product offering to the Indian

consumers is increasing.

Types of Retail Outlets:-

A marketplace is a location where goods and services are exchanged. The

traditional market square is a city square where traders set up stalls and

buyers browse the merchandise. This kind of market is very old, and

countless such markets are still in operation around the whole world.

In some parts of the world, the retail business is still dominated by small

family-run stores, but this market is increasingly being taken over by largeretail chains.
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Company Overview

Pantaloon Retail (Pantaloon), a part of the Future Group, is a leading Indian

operator of multiple retail formats. The company's leading formats includePantaloon, a chain of fashion outlets; Big Bazaar, a hypermarket chain; Food

Bazaar, a supermarket chain; and Central, a chain of malls. Pantaloon has

operations across 73 cities in India. It is headquartered in Mumbai, India and

employs about 33,500 people. The company recorded revenues of INR63,

477 million ($1,328.6 million) during the financial year ended June 2009

(FY2009), an increase of 25.6% over 2008. The operating profit of thecompany was INR63, 497.5 million ($1,329 million) in FY2009, an increase

of 25.9% over 2008. The net profit was INR1, 405.8 million ($29.4 million)

in FY2009, an increase of 11.6% over 2008.

KEY FACTS

Head Office Pantaloon Retail (India) Ltd.

Knowledge House

Shyam Nagar

Off Jogeshwari Vikhroli Link Road

Jogeshwari East

Mumbai 400 060

IND

Phone 91 22 3084 1300

Fax 91 22 6644 2222

Web Address http://www.pantaloon.com

Revenue / turnover 63,477.0

(INR Mn)

Financial Year End June


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Employees 33,500

Pantaloon was incorporated as Manz Wear Private Limited in 1987. In the

same year, the company launched Pantaloons trouser, India's first formal

trouser brand. In 1991, Pantaloon launched BARE, the jeans brand. The

company made its initial public offer in the following year. It also started

Pantaloon Shoppe, a franchised menswear store across India in 1994. In the

same year, Pantaloon initiated distribution of branded garments through

multi-branded retail outlets throughout India. In 1995, it launched John

Miller, the formal shirt brand. In 1997, Pantaloon launched a family store,

Pantaloons, in Kolkata, India. In 2001, India's first hypermarket chain 'Big

Bazaar' was launched. In the same year, 'Food Bazaar' was also launched.

The company launched the 'Central' mall in Bangalore in 2004. In the

following year, Pantaloon announced its plans of investing INR10 million

($0.2 million) in revamping IT infrastructure in the following three years. It

entered into an alliance with SAP, a business software solutions provider, toimplement its my SAP Business suite, SAP Advanced Planning Tool for

Merchandise Planning and SAP Apparel and Footwear Solutions across the

organization. In the same year, Pantaloon also launched aLL, a store that

caters to plus-size market. The company's financial arm, Future Capital

Holdings, launched the real estate funds Kshitij and Horizon, and the private

equity fund In division in 2006. In the same year, Pantaloon launchedmultiple retail formats including Collection i, Furniture Bazaar, Shoe

Factory, EZone and Depot. It entered a joint venture agreement with ETAM

Group, a French retailer of women innerwear, to market ETAM products

through a network of 40 outlets in 20 cities in India. The company also

entered a joint venture with generally, an Italian insurance company, in

2006, to foray into the Indian insurance market. Pantaloon entered an

agreement with Ruchi Soya Industries, a producer and supplier of edible oils,


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to expand its refined edible oil business in the same year. The company

launched futurebazaar.com, its online retail store in 2007. Future Office, a

subsidiary of the company, acquired the operations and management of

Officedge, an online business to business office products company, and

entered the office products market. Staples, a US based office products

company, entered a joint venture with Future Office to establish 'Staples

Future Office' for offering office products in India during 2007. In 2008, the

company decided to make four of its business divisions, including Big

Bazaar, Food Bazaar, Specialty Retail Business Activities and Property and

Mall Management Division, into independent subsidiaries. In the same

month, Pantaloon planned to invest INR3,000 million ($76.37 million) in a

retail joint venture with National Textile Corporation (NTC). It also entered

into a joint venture with United Arab Emirates-based Axiom Telecom to

establish 750 new mobile phones stores in India. Pantaloon outsourced its IT

operations across all its outlets to Wipro InfoTech, an IT and business

transformation service provider. Also, the company's flagship format openedits first store in Guwahati. EZone, Pantaloons electronics specialty store,

launched a unique EZone Concept Store, which would feature dedicated

displays by numerous brands, instead of the conventional multi-brand,

category wise displays. In Mumbai, the company opened its destination mall,

Central, in Mumbai. Hometown, the company's retail store tied up with

AQUA life, Italy's leading supplier of luxury bath products in 2008. Underthe agreement AQUA lifes products would be available at all Home Town

Stores. Hometown also entered an agreement with ARAN Cucine, Italy's

modular kitchen maker, for the DENOVO range of Exclusive Italian

kitchens in Hometown stores. The company's flagship format, Pantaloons,

opened its first store in Nagpur and Big Bazaar was opened in Gwalior

during the year. Also in 2008, Pantaloons subsidiary, Future Capital

Holdings made an Initial Public Offering. Further, the company's


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hypermarket format, Big Bazaar crossed the 100-store mark and total

operational retail space of the company crossed 10 million square feet mark

in 2008. Pantaloon acquired the rural retail chain, Aadhar which was present

in 65 rural locations. The company divested its holding in Alpha Future

Airport Retail, a 50:50 joint venture company between Pantaloon and Alpha

Group by the end of 2008. Due to the uncertain external economic

environment, Pantaloon initiated various cost control measures and

conducted scenario planning exercises in FY2008. These initiatives

enhanced the efficiency and productivity of the company. In January 2009,

the company's hypermarket format, Big Bazaar was launched in Zirakpur, a

town of Mohali district and Tinsukhia, the business capital of Assam. Celio,

the hi-fashion French mens apparel brand marketed by Pantaloon in India

launched its exclusive store in Mumbai in March 2009. A range of intimate

wear designed for the Indian woman was launched in Pantaloons and Central

Stores in October 2009. Winner Sports, a wholly-owned subsidiary of

Pantaloon entered an agreement with SKECHERS, a global leader in thelifestyle footwear industry to license and distribute SKECHERS footwear

and apparel in India. In February 2010, Tata Teleservices in strategic

partnership with Future Group launched new telecom Brand -T24- on GSM

Platform.The alliance between the companies brings unique marketing

concept of Retailer-Telco Partnership to Indiafor the first time. T24

services rollout is expected to begin in 2010. Pantaloon in association withSachin Tendulkar co-created a brand, Sach and launched of Sach toothpaste

in March 2010.


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BUSINESS DESCRIPTION

Pantaloon Retail (Pantaloon or the company) operates multiple retail

formats in both the value and lifestyle segments in India. It operates over

1000 stores across 73 cities in India, and occupies retail space of about 12

million square-feet. The company offers its products in various lines of

businesses such as food, fashion, home and electronics, telecom and IT,

general merchandise, leisure and entertainment, wellness and beauty, books

and music. The company also offers products through its Internet retailing

store futurebazaar.com. Pantaloon offers food products through retail

formats such as Brew Bar, Cafe Bollywood, Food Bazaar, and Sports Bar.

Brew Bar offers over 15 brands of domestic and imported beer. Brew Bar

also offers snacks and set meals. Cafe Bollywood (Bollywood refers to the

Indian film industry) is a fast food retail chain offering eateries in a

Bollywood ambience. It offers Indian street food, burgers, pizzas, and juices.

Food Bazaar is a chain of supermarkets which offers pre-packed

commodities. Sports Bar is a concept bar that focuses on the world of sports.Sports Bar offers domestic and imported spirits, beers and wines. Pantaloon

offers fashion related products under banners such as aLL, Big Bazaar, Blue

Sky, Brand Factory, Celio, Central, Ethnicity, fashion@Big Bazaar, Lee

Cooper Navaras, Pantaloons and Planet Sports. aLL is a fashion store for

plus size men and women. It offers ready-to-wear fashionable clothes and

accessories in western wear, Indo-western or ethnic wear in both formal andcasual categories. Big Bazaar is a fashion and general merchandise

hypermarket. It offers fashion products, home furnishings, utensils, crockery,

cutlery, and sports goods. Blue Sky stores offer branded and private label

sunglasses and watches. Some of the private label watch brands which Blue

Sky offers are Cube, Koenig, RIG, Lombard and UMM. Brand Factory

operates a chain of discount stores that offer branded apparel for men,

women, and infants along with accessories, cosmetics, footwear, sportswear,


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luggage, and home linen at discounted prices. These discount stores stock

fashion brands such as Levis, Pepe Jeans, Dockers, Wrangler, ProVogue,

Arrow, Nike, Adidas, Reebok, Louis Phillip, Allen Solly, Reid and Taylor,

Gini and Jony, amongst others. Celio, a market leader in men's ready to wear

clothing in France, is retailed through selected stores of Pantaloons and

Central in India. Central, the mall concept of Pantaloon, offer over 300

brands across categories such as apparel, footwear and accessories for

women, men, children and infants, and the product ranges such as, music,

books, coffee shops, food courts, super markets (food bazaar), fine dining

restaurants, pubs and discotheques. Central also offers services such as

travel, finance, investment, insurance, concert/cinema ticket booking and bill

payments. Ethnicity is a concept store in India to offer everything Indian

under one roof. Ethnicity stores sell merchandise for kids, fashion, costume

and semi-precious jewelry, Indian ethnic homewares, and ethnic accessories.

Fahion@Big Bazaar offers fashion apparel and accessories men, ladies, kids

and infants at reasonable prices. Lee Cooper is a reputed international brandwhich is distributed through exclusive brand stores and large format stores

such as Central and Pantaloons. Navaras is a jewelry store that offers

branded jewelry in a hypermarket set-up. Pantaloons stores offers fashion

products such as casual, ethnic, formal, party and sports wear for men,

women and kids. Planet Sports is a sports and lifestyle specialty retail chain

with extensive offerings for sportswear and equipment across all categoriesincluding running, tennis, training, golf, fitness, basketball, motor sports as

well as other lifestyle products. In the general merchandise category,

Pantaloons operates retail formats such as Big Bazaar, Big Bazaar Wholesale

Club, Blue Sky, Brand Factory, Central, Navaras, Pantaloon and Shoe

Factory. Big Bazaar is a retail store chain in a hypermarket format that offer

fashion products, home furnishings, utensils, crockery, cutlery, and sports

goods. Shoe Factory, a footwear retail store chain offers branded footwear


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and accessories to men, women and kids. Pantaloon has presence in the

leisure and entertainment space through an affiliated company, Galaxy

Entertainment. Pantaloon's F 123, a gaming and entertainment zone, offers a

range of gaming options ranging from bowling, pool, interactive video

games, bumper cars along with fun foods and services for junior and adult

banqueting. The company also operates Bowling Co., a family entertainment

centre, in Mumbai. In a joint venture with Blue Foods, Pantaloon operates

food courts, fine dine specialty restaurants, thali restaurants, banquets and

multiple kiosks with brands such as Copper Chimney, Bombay Blue, Noodle

Bar, Spaghetti Kitchen and The Spoon. The company operates specialty

stores in the wellness and health retailing. It operates Star & Sitara and Fit &

Healthy. Star & Sitara provides skin and hair related beauty services for men

and women. Fit & Healthy section housed within Big Bazaars and Food

Bazaars provides health products and health related tips, information and

advice. Pantaloon has presence in the books and music category through

'Depot' which offers books, music CDs and cassettes, home videos,multimedia (CD-ROMs) products and gift items. In the home and electronics

retailing, the company offers the furniture, furnishings, home accents and

electronic products through Collection I, Furniture Bazaar, Electronics

Bazaar, e-zone, Home Bazaar and Home Town retail formats. In the telecom

and IT category, the company offers products such as gadgets, mobile

phones, accessories, download kiosks, airtime recharges, landlineinstruments, blue tooth accessories, and mobile trinkets. The retail store

brands that offer these products are Gen M, One Mobile, and M Port.


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Number of Outlets

Pantaloon Retail (Pantaloon or the company) operates multiple retail

formats in both the value and lifestyle segments in India. It operates over

1000 stores across 73 cities in India, and occupies retail space of about 12

million square-feet.

In Pune Pantaloon have 2 stores.

Market Share & Business Strength

Market Share

Competitive Business Strength of Pantaloons

It is believed that the following are Pantaloon principal competitive strengths

which have Contributed to Pantaloon current position in the retail sector in

India: Strong understanding of the value retail segment: Pantaloon business

plan involves implementation of the concept of the value retailing,

targeting the middle and lower middle income groups, which constitute

majority of the population in India. Group/Company intends to provide

quality products at competitive prices. Group/Company sells a vast range of

merchandise across apparels and accessories, FMCG products, food products

and consumer durables with over 63,000 SKUs. Pantaloon emphasis has

been to maximize the value that the customers derive in spending on goods

bought in Pantaloon stores. Group/Company endeavour to continuously

reduce Pantaloon costs through variety of measures, such as, in-house

production of apparels, procurement of goods directly from the small and

medium size vendors and manufacturers, efficient logistics and distribution


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systems along with customized product mix at Pantaloon stores depending

on the regional customer behavior and preferences. Central to Pantaloon

value retail strategy is to pass on the benefits of cost reduction measures to

Pantaloon customers. Strong and efficient supply chain

management: Pantaloon supply chain management involves planning,

merchandizing sourcing, standardization, vendor management, production,

logistics, quality control, pilferage control replacement and replenishment.

Pantaloon supply chain management provides us flexibility to adapt to

changing patterns in consumer behavior and Pantaloon ability. Manufactured

by us such as Zapping, Paranoia, Chlorine, Kitten Studio, Famenne, Flourier

Women and Roseau. In fiscal 2006, Pantaloon income from Pantaloon

private labels was Rs.483.50 million, which accounts for 16.76% of

Pantaloon total sales for fiscal 2006. Group/Company believes that

Pantaloon focus on Pantaloon private labels and their recognition in

Pantaloon customer segment enables us to differentiate ourselves from

Pantaloon competitors.

Group/Company effectively uses information technology systems:

Group/Company believe that efficient information technology systems,

processes and business applications are essential to handle retail chain of

Pantaloon magnitude. Pantaloon office processes are computerized which

support procurement, supply chain logistics, distribution centers

management and store operations including inventory management and

billing. Group/Company is in the process of implementing SAP. All

Pantaloon stores and distribution centers are connected through a company-

wide. Group/Company has a highly experienced and competent management

Team: Group/Company has an experienced management team which is

committed workforce. Pantaloon management team comprises of talented

professionals who are highly experience in the retail sector.


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SWOT Analysis

SWOT Analysis

Strength

1.It is Indias largest retailer having 1000 stores across 70 cities in

India

2.It is countrys largest retailer by market capitalization and revenue

3. It manages high number of purchase orders

4.It is always updated with changing consumer preferences

5. Popular brand with a high presence across India

Weakness

1.It serves mass consumer base, still skilled labor force is not

adequate when compared with global standards

2.Consumers from premium target group perceives it as low quality

brand

Opportunity

1.Increase in footfalls by increasing ATL TV commercial promotions

2.India is fast emerging as retail hub for top brands as government

allowed FDI in single brand and multi brand retail

3.Organized retail is only 4.5 % of total Indian retail industry

Threats

1. Strong competition from unorganized retail sector in India.

2. Government policies are not well defined in emerging markets

3. Online shopping is emerging trend in consumers due to

convenience

Competition

Competitors

1.Shoppers Stop

2.Vishal Mega mart

3.Westside

4.Wills lifestyle


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Research Methodology

It is necessary to adopt a particular method to complete a project

successfully. The steps that have been taken to complete this project are as

follows:

1.) Research Approach: The Approach adopted to complete thisproject was that of CUSTOMER SERVICES ANDSATISFACTION. And the study secondary data is collected from

various news papers, internet, and books. The survey was done in

pantaloons retail India store Gurgaon.

2.) Research Design: Depending upon the objectives of the researchthe most suitable marketing research design is Exploratory

research. The purpose is to find out the experience of customers

while shopping in pantaloons.

3.) Data Collection: The information used in this project was throughprimary sources i.e. personally interacting the customers in the

outlet and getting the first hand information and secondary Sources

i.e. Personal interview and observation.

4.) Research instrument: The instrument that was chosen to conductthe market research was that of structured questionnaire. This has

been done because data obtained in structured studies are easier to

tabulated and interpret then data gathered in other ways. A list of


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questionnaire was prepared which could give relevant information

when answered by the respondents.

5.) Target Segment: customer

6.) Sample area: Pantaloons retail India ltd outlet S.B Road, Pune.

7.) Analyzing the collected data and reporting the findings: Finallythe data has been collected was thoroughly analyzed and processed

to obtain the required information. The data has been summarized

in the form of graphs.

8.) Sample size: 50 customers

Research methodology and analytical tools

For doing any kind of research, it is very essential for us to determine in

advance as to what is going to be the sample size for us. Because of the

simple reason that one cannot simply do the research on the whole

population due to the constraints like time, money & energy . Therefore

when the field of inquiry is large, this method difficult to adopt because of

the resources involved. It is possible to obtain sufficiently accurate results by

studying only a part of total population.

First step in the research process is to single out the problem we want to

study. One kind of research problem, those which relate to states of nature.

The formulation of a general topic into a specific research problem, thus,

constitutes the first step in a specific enquiry. In my topic the main problems


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is to study the customer experience of the services provided by Pantaloons

retail India ltd., are they satisfied with services, what are there expectations

of services from retailers, is there anything new that the customer is looking

for, what Indian retailer are doing about it.

In this project I have decided to use both the primary and secondary data.

Because I believe that lot articles and research paper have been done on this

topic and these could provide us with a lot of information on various service

parameters. These articles will give us a totally different view of the service

standards and what all require to be done.

It becomes very much essential for us to develop a working hypothesis

because it has to be tested. I also need some kind of primary data through

questionnaire filling.

I have decided to use deliberates and simple random sampling because to

know the reaction of customers for different services we need to target the

people who regularly goes for shopping in organized formats and then we

have decided to pick 100 people randomly.

I have also decided to use other data collection techniques like observation

and personal interviews. I have decided to use structured close ended

questionnaire so that the response could be properly coded and analyzed.

It would become easier for us to understand the customer experience andwhat are the areas of improvement he is looking for.


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Customer Segment

It is targeting the Tier-2 and 3 cities which have a huge unleashed potential

and youth of todays.Before pantaloons only in men wear so the biryanisnotice that the other member of the family went away empty handed then

Pantaloons segment the whole family (men, women and children)

Types of Display Available

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

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

SKUs

Today Pantaloon Retail has stocks about 8,000 to 12,000 SKUs per location.

Categories Managed

LADIES WEAR

Honey Akkriti Annabelle Mix & Match


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Ajile Rig

MENS WEAR

John Miller JM Sports Bare Denim Rig Ajile Lombard T-2000 Bare Leisure

KIDS WEAR

Chalk Bare 7214

ACCESSORIES

Cosmetics Stationary for kids Books & Magazines


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Signages Used in Pantaloons

Signage is any kind of visual graphics created to display information to a

particular audience. This is typically manifested in the form of way finding

information in places such as streets or inside/outside of buildings.

The main purpose of signage is communication, to convey information such

that its receiver can make cognitive decisions based on the information

provided. In general, signage can be classified into the following functions:

(a)Information: signs giving information about services and facilities,e.g., maps, directories, instructions for use, etc.

(b)Direction: signs leading to services, facilities, functional spaces andkey areas, e.g., sign posts, directional arrows, etc.

.

Plantoon Brands

Mens

Formals Casuals Ethnic

Womens

Formals Casuals

Non Plantoon Brands

Mens

Formals Casuals

Womens

Formals Casuals Ethnic


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(c)Identification: signs indicating services and facilities, e.g., roomnames & numbers, toilet signs, number of floors, etc.

(d)Safety and Regulatory: signs giving warning or safety instructions,e.g., warning signs, traffic signs, exit signs, rules & regulations, etc.

Signage Manual

All the Signage should be in Right format, no spelling mistakes Right fonts should be used (Helvetica 35, Aparajita, Helvetica Neue,

Rupee Foradian)

Apart from Brand signage guidelines No extra signage should be therein any Brand

As per brand signage guidelines all the signage should be there on thefloor

Any promo or offer signage will be placed with new acrylic stand, itwill not hide any brand signage

No Old Fashion Friday signage should be there on the floor All the signage paper & acrylics should be in proper condition On one fixture only one signage will be kept
http://en.wikipedia.org/wiki/Warning_signhttp://en.wikipedia.org/wiki/Traffic_sign_designhttp://en.wikipedia.org/wiki/Exit_signhttp://en.wikipedia.org/wiki/Exit_signhttp://en.wikipedia.org/wiki/Traffic_sign_designhttp://en.wikipedia.org/wiki/Warning_sign


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Always ensure that Signages are never one sided, it has to be twosided.

Visual Merchandising

Visual Merchandising is the art of displaying merchandise in a manner that

is appealing to the eyes of the customer. It sets the context of the

merchandise in an aesthetically pleasing fashion, presenting them in a way

that would convert the window shoppers into prospects and ultimately

buyers of the product. A creative and talented retailer can use this upcoming

art to breathe in new life into his store products. Passion for design and

creativity are essential to be a good visual merchandiser. A perfect design

process and the ability to create ideas that are different are required.

Awareness of happenings in fashion world is needed so as to keep up-to-date

with the dynamics of the market constantly.

Visual merchandising includes window displays, signs, interior displays,

cosmetic promotions and any other special sales promotions taking place.

Components of Visual Merchandising:

There are certain things which a retailer needs to take care while proceeding

with the process of displaying his products. These components when


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combined together in a proper ratio will make a successful outcome.

Make merchandise the focal point:

The main goal of display is to showcase the products within the overall

display area. Customers

give three to five seconds

of their attention to

window display. The

retailers visual message

should be conveyed to the

customer in that short

period of time. It should

not be like an unsuccessful TV advertisement, where the product is forgotten

altogether and only the concept of the commercial remains in the mind of the

viewer. The arrangement of window display should go with the product and

should not suppress them to make it discernable to the eye.

Right choice of colours is vital:

Colour is one of the most powerful tools in the Visual Merchandising

segment. It is a visual perceptual property. Colours can be associated withemotions, special occasions and gender. It attracts attention and pulls more

customers into the store. A retailer has to focus on the right choice of colour

that would match with the theme of display. It is not possible to satisfy

everyone all the time, but it is possible to cultivate the taste of customers

gradually and purposefully. A right choice of colours in the display items

can turn walkers into stoppers and significantly convert them into customers.It is therefore mandatory to choose the right colour for the right theme of


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display. A Halloween display would require black colour in the display

theme. Valentines theme should be ruled by red colour supplemented with

pink and white. A display of babies accessories should reflect light shades of

pink and blue colours. A Christmas display should contain colours of red,

green, gold and silver.

Display themes to

appropriately

support the

product:

A theme is a display

of sale items of

similar categories

e.g. a display of

kitchen accessories. Its essential to have themes for all retail displays. They

can be romantic, wild, or capricious, and capture peoples imaginations.

A good theme will lure the customer with a shopping mood into the store.

Themes mainly depend upon the retailers imagination and creativity.

Focusing on the right theme rather than creating a display with expensive

raw materials is the key to successful window display. A shoe store themecan be a group of elves buying shoes. A theme for display of casual wears

can be a group of mannequins sitting casually at a get together in different

poses. Related themes will tug the heartstring of the customers and will pay

off.

Display should complement the retailers other strategies:


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The content of the display should complement the in store environment and

other marketing strategies of the retailer. If the retailer has a specific logo,

the colours of the display can reflect the same colour of the logo. For e.g.

Mac Donalds display, the clown is of the same colour, red and yellow as in

their logo.

Cleanliness:

Neat and clean arrangement is the foundation of an inviting a successful

visual display. A beautiful display can be ruined by a cracked sign holder or

an unclean display environment. Effective cleaning schedule of showcases

and display fixtures is required.

Change the display settings in frequent intervals:

Changing the arrangement of the displays in regular intervals will initiate

new interest about the products in the minds of the customer. By designing a

plan-o-gram and activating changes frequently one can thus be a proactiveretailer.

With globalization and the retail boom, visual merchandising is growing in

leaps and bounds. It is not simply concerned about decorating a store

beautifully; but must also symbolise the brand keeping the target audience in

mind.


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The importance of VM:

Visual merchandising today forms a critical element of retailing. Besides the

facade and windows, which are clearly done up with an objective to attract

passer-bys and induce walk-ins, there is also in-store decor that is designed

to enhance the customers comfort and convenience while shopping and

overall, offer a superior shopping experience.

Consumer behaviour studies have confirmed that the lure of a beautifully

done up show window and a tastefully decorated facade, more often than

not, prove irresistible as they walk in to check out what is on offer. It also

ensures exclusivity since no two stores should look alike. Besides, when the

mood and theme of such displays change at regular intervals, it makes

certain that the store remains top of mind. Loyal customers have often been

known to anxiously wait for the next display. Stickiness in retail formats is

also ensured by the imaginative use of colours, lighting, space, furniture and

visual elements with regard to in-store displays.Once customers walk in, it is but imperative to ensure that they enjoy their

first encounter with the store. After all, repeat visits will only happen if a

customers first visit is a memorable one. The logical arrangement of

counters, with clear passageways allows for easy access to merchandise.

Rather than getting lost in the mazo that most large stores are, the customer

feels more in control. Space is allocated to various product categories takinginto account the number of SKUs stocked and shelv-es/counter space

requirements are worked out accordingly.

Clear passages are provided for products, which require touch and feel. All

impulse purchase driven products are also clearly displayed so that the

customers can reach them without any hindrance. Also, it has been observed

that when a person enters a room, the human eye moves in a Z pattern, i.e.

from rear left of the room to right rear, followed by front left of the room to


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front right. Care should be taken to do up the rear left end of the room in an

appealing manner so as to guide the direction of vision and keep a shopper

visually interested.

A great deal of research has been undertaken on the impact of lighting on a

customers purchase behaviour. Results clearly indicate that in general,

stores that are brightly lit, with the lights cleverly blending with the interiors

lead to higher customer comfort, and as such, more sales. Different types of

lighting and interiors are used on different floors, the change reflecting the

various products that are on display on a particular floor, the proposed target

audience and the time of the year. The ladies floor, for instance, is most

often subtly lit with soft lights or then again, in summers, cool bluish lights

are used to impact an impression of coolness and comfort.

The careful use of spotlights helps add to the appeal of products such as

crystal and jewellery. Signages related to various product sections are put up

clearly to demarcate areas, allowing customers a clear understanding of what

is stocked where. With various brands having their own pull, brand signagesare also put up within the product sections so that customers can find their

favourite brands easily. Additionally, within the product sections, signages

help to publicise the various promotional schemes that might be running in

the store. Stores also make use of signages to indicate the facilities/services

available at the store, such as washrooms, cafe etc.

Most stores have an in-house team of visual merchandisers who coordinatewith the marketing team as well as the in-house merchandisers and suppliers.

Each time any major changes in decor are contemplated, they present the

visual display concepts to the group for analysis and selection. Subsequently,

the same is executed. The visual merchandising team also makes projections

vis-a-vis returns per sq. ft. for each section and each brand stocked. On

promotions related visual merchandising, the inputs of the advertising

agency are also sought so that the in-shop communication is in line with the


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tactical promotions advertising. With cost of visual merchandising generally

amounting to 1% of sales, this is one communication tool that clearly has an

edge over others in terms of drawing in shoppers, increasing flow of traffic

and increasing sales.

Product Display

Guidelines for Gondola Display:

Can have hanging or stacking Packed products like formal Shirts that dont need details of shape, fit

& fall should be stacked.

Ethnic kurtis, Party wear and Fashion merchandise should be hung A4 signage and shelf talkers Guidelines for Gondola displayImportant note:-

In every formal wear brand The Last Shirt should be shoulder out & top five shirts should be front facing As shown in the picture


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Guidelines for Wall Displays:

Merchandise on shoot visuals or bust display should always Kept next to the

branding or bust from in the absence of same product try to keep samecolour story or similar style.


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Table Display Docket:

As the brand Pantaloons moves towards fashion the need to make the

customers aware that what they are buying is not just another shirt but the

latest fashion makes us strive towards a more fashionable approach in our

displays.

Tables play an important role in creating that fashion atmosphere in thestore.

Easy shopping experience of customer (easy to find thecomplete look together)

Suggestive selling through coordinated display, Show complete product feature through open display,

There are two types of table displays: Power pricing tables Fashion Tables

Power Pricing Display:

Display large volume of power pricing & EPP.

Large volume: - Maximum of 18 pc in normal fold, 10 pc in paper fold per

option.


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Fashion Table Display:

Open display of merchandise with full size set for selling purpose. At least 4 options with full size set for top wear & at least 2 options

with full size set of bottom wear.

Tables should not have single piece for display. If table is divided in two parts one part will have top wear display &

another part will have bottom wear display (as shown).

For fashion display table, whenever we highlighted bust forms shoulddisplayed the same merchandise on the table & should also have full

size set. Any merchandise highlighted on

The bust form, if it runs out of sizes or sold out, it needs to be changedwith the one that is in stock on the table.


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In fashion display we have two types of display:-

Product specific: Highlighting product with all the options in an opendisplay.

Co-ordinate look: Suggestive co-ordinates displayed to form a look.Product specific: Highlighting product with all the options in an open

display

Co-ordinate Look:

Suggestive co-ordinates displayed to highlight looks.


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The Fashion Table I made:

Brand Presentation

Brand Presentation will be change in every season All the new shoot branding should be placed & no old season visual

should be there on the floor

Season wise Plano gram should be implemented in every brand Signage & communication should be change as per new season

guidelines

Sectional looks & props should be placed properly Lighting should be proper in the store All the display area (like-Window, Cluster , Focal Point, wall &

Tables & all mannequin & bust form) should have proper lighting

No crumpled or torn print should be there on the floor


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All the fixture should be in proper condition , All broken or damagefixture should be repaired

Buying Methods

In 1999, Pantaloon Fashions changed its name to Pantaloon Retail (India)Limited. In the same year, Pantaloon merged its entire garment business with

PIL(which was manufacturing and marketing blended yarns).

By 2004, Pantaloon had trousers manufacturing plant at Tarapur, near

Mumbai, a denim plant in Goregaon, Mumbai, a shirt manufacturing plant in

Bangalore and a knits manufacturing plant in Gurgaon, Haryana. Pantaloon

also had 23 factory outlets across the country, where unsold garments from


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its stores were sold at a discount. The company had also formed strategic

alliances with some of the largest textile mills in India for sourcing

Fabric. From a small beginning as an apparel retailer, Pantaloon had multiple

store formats in 2004.

By 2004, Pantaloon had evolved from a manufacturing company into a

vertically integrated player controlling the entire value chain in apparels

fabric manufacturing to apparel manufacturingand did their branding,

distribution and retailing Biyani was highly sensitized to the consumers

requirements and business environment, and whenever he found new

opportunities he launched a new retail store. He repositioned Pantaloons

from a family to a lifestyle store as the market evolved. He targeted his

stores at particular customer segments. He emphasized on cheaper sourcing,

efficient supply chain, affordable price, private labels, location and floor

space of the stores. The corporate credo of Pantaloon was Rewrite rules,

retain values. Initially, Biyani ran Pantaloon single-handedly, from strategic

thinking to selecting store locations. When Pantaloon expanded, Biyanidivested himself from micromanaging the company. He recruited

experienced people from its competitors and gave them a free hand. Biyani

decentralized operations with zonal heads given the responsibility to take

decisions. Pantaloon followed inverse pyramid structure of organization

where Board of Directors was at the bottom and customer service executives

on the top.


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Customer Service

Customer service is the provision of service to customers before,

during and after a purchase.

According to Turban et al. (2002) Customer service is a series of

activities designed to enhance the level of customer satisfaction

that is, the feeling that a product or service has met the customer

expectation."

Its importance varies by product, industry and customer; defective or

broken merchandise can be exchanged, often only with a receipt and

within a specified time frame. Retail stores will often have a desk or


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counter devoted to dealing with returns, exchanges and complaints,

or will perform related functions at the point of sale.

Customer service may be provided by a person (e.g., sales and

service representative), or by automated means called self-service.

Examples of self service are Internet sites. The experience a

customer has of a product also affect the total service experience, but

this is more of a product direct feature than what is included in the

definition of customer service.

Customer service is normally an integral part of acompanys customer value proposition. From the point of view of an

overall engineering effort, customer service plays an important role

in an organization's ability to generate income and revenue . From

that perspective, customer service should be included as part of an

overall approach to systematic improvement.

Some have argued that the quality and level of customer service has

decreased in recent years, and that this can be attributed to a

lack of support or understanding at the executive and middle

management levels of a corporation and/or a customer service policy.

Customer service is an organization's ability to supply their customers'

wants and needs. Excellent customer service (is) the ability of an

organization to constantly and consistently exceed the customer's

expectations."

It consists of all those activities by the retailer that influence.

1. The ease with which a potential customer can shop or learnabout the stores offering.


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2. The ease with which a transaction can be completed once thecustomer attempts to make a purchase.

3. The customers satisfaction with the transaction.Activities undertaken by a retailer in conjunction with the basic goods and

services it sells.

Store hours Parking Shopper-friendliness Credit acceptance Salespeople In store announcement Gift Wrapping and packaging Personal Selling Merchandise Availability Complaint handling Merchandise returns Servicing and repair Deliveries Alteration

Gap Model For Improving Retail Customer Service:

Knowledge Gap -- knowing what the customer wants Standards Gap -- setting service goals Delivery Gap -- meeting and exceeding service goals Communications Gap -- communicating the service promise


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Closing the Knowledge GAP

Customer research More interactions between managers and customers Better communications between managers and service providers

Closing the Standards GAP

High quality service commitment Define the role of service providers Innovative solutions Set service goals Measure service performance

Closing the Delivery GAP

Information and training Instrument and emotional support Internal communications Reduce conflicts Empower employees Providing incentives

Closing the Communications GAP

Realistic commitments Managing customer expectations

What is customer satisfaction?


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Levels of Customer Satisfaction

Perceived

Service

Expected

Service

Customer

Satisfaction

Much Better than expected

As expected

Worse/Different than expected

Delighted *

Satisfied

Dissatisfied

Loyal

Vulnerable

Walk & Talk

Know the problems of your customers and what they are looking for, and

then offer them the right products. Products that the customers receive

are also an area that was assessed because of a high value that is placed

on satisfaction in the product. Satisfaction of the product is evaluated by

content, display and delivery of the product.

Customers purchasing habits would include such issues as: who do they

usually go shopping with, how often, how long do they spend in a shop,

etc. Psychographic portraits of many customers allow customer

segmentation in terms of purchase frequency, respondents experience of

various shopping centres or service organisations, as well as

benchmarking against competitors.

IMPORTANT FACTORS:

The Store covers various aspects to fulfil the need of customer as well to


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Making the shopping a great experience for them. From the First factor

where in customer enters into the store till he or she Purchases and moves

out of the parking for his or her way should be remember able one and a

great experience for the customers. Even from security staff to Housekeeping

everyone should be well groomed.

As we all know that First impression is the last impression so its important

for every retailer to package its staff, The better we groom ourselves, the

more we are pleasing to our customers.

1. Judgement is made about people based on the performance image theydisplay.

2. Physical appearance plays a vital role in determining how othersperceive us.

Then is the customer interaction which is very demanding and plays a very

crucial role in any retail store. Every customer interaction is an opportunity

for us to contribute to customer satisfaction. The customer may look in for

something specific or have a question about a product, our store or our

policies customer may be looking around. Sometimes customer could have

dissatisfaction against our system.

Effective and courteous interactions about all our customers go a long way in

ensuring success of our store. If we are able to handle solution to them we

win a loyal customer to life.

Also Customer Service desk which is specially mend for the judgement of

customer behaviour. Where in customer come along with their complaints,

Exchange, Wrong billing, other staff complaints. This is the place where the

customer service executives have to be very polite, patient, and understand


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the problem of customer and try to resolve them so that we dont loose that

customer. And retain them and convert them into our loyal customer.

It has been observed in the training period that the percentage of customer

complaint in PANTALOONS is 4%.

As dissatisfied will tell to other 10 more customers. Which is not good for

the company as we have risk of losing those 10 other customers also?

The customer retention leads to

LoyaltyProfitRepurchases

So for Excellent customer service its important to have following things:

HelpRespect & RecognitionComfort, CompetitionFriendly SmileUnderstandingFulfilling the requirement

A good Customer service leads to:

Boost repeat businessCreates new demand from new customersCut Customers


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There are various ways to delight the customers a customers demand or basic

needs are fulfilled above their expectation but it becomes important to know

what exactly delight means? When and the courtesy they get in return then

comes the DELIGHT.

To ensure the customer by setting up the Customer help lines. Making a one point contact with the customers. Bridging the gap in between Communication gap between the

customers & stores.

Telephones services that include promptness, courtesy and accuracy. Customer Service executives should be selected by C.S.D Manager.


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Loyalty Programs

Green Card is passport to a whole new world of exclusive benefits and

privileges.

Benefits 7 Star 5 Star 3 Star 1 Star

Discounts

on all

purchases

10% 7.5% 5% Gift Voucher of

Rs.200/- on new

enrolment

Upgrade

Enrolment

Upgrade

Kit

Upgrade Kit Upgrade

Kit

Welcome Kit

Add-on Card to

Family

Members

2 2 1 1

End of SeasonSale Preview

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 Service

Desk

Yes Yes Yes Yes

Green offers &

Promotions

Yes Yes Yes Yes


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Payback Loyalty Program

At Future Group, we believe in building long-lasting relationships with

customers. We encourage repeat customer visits through our unique offers

and special sale days.

Future Group has taken the whole concept of customer loyalty to the next

level by joining hands with PAYBACK. PAYBACK is Indias largest and

one of Europes most successful multi-partner loyalty programs. With

PAYBACK, customers can shop, save and get rewarded. This program

enables consumers to collect millions of points across online and offline

partners with just a single card. Customers can accumulate points across

Future Group formats, thereby making shopping rewarding.

What Is PAYBACK?

PAYBACK is Europe's leading customer loyalty program, headquartered in

Germany, with a total of 25.5 million active cardholders in Germany and

Poland. In India, PAYBACK consolidated its position after taking a major

stake in I-Mint. Today, with more than 30 partners with 1,500 outlets and 10

million card members, its the only program which works with market

leading pan-India players from the banking, travel, petroleum and online

sectors such as ICICI Bank, HPCL, Universal, BookMyShow andMakeMyTrip.

Now that Future Group has become a part of this bandwagon, customers are

bound to earn points at every step from formats like Big Bazaar, Food

Bazaar, Pantaloons, Central, Home Town, EZone, Brand Factory and Future

Bazaar.


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These points can then be redeemed for air miles, movie tickets, air tickets

and vice versa.

With Future Group and PAYBACK Shopping is Rewarding.

Benefits of PAYBACK

Our formats Big Bazaar, Food Bazaar, Pantaloons, Central, Home Town,

EZone, Brand Factory and Future Bazaar are a part of the PAYBACK

Loyalty program.

T24 Program

T24 will provide customers with a dual advantage all 24 hours of the day

Shop More, Talk More and Talk More, Shop More.

Shopping and talking on our mobile phones are among the two favouriteactivities for all of us in India. With T24, we have been able to develop a

unique customer value proposition that combines these interests of the

aspirational Indian. Customers will get shopping benefits for talking and

talk-time benefits each time they shop.

We believe that with our partners, Tata Teleservices Limited, we have been

able to develop a differentiated offering in the crowded telecom space and

also increase the loyalty we enjoy among the millions of customers who

patronize our stores.

T24 (Talk 24) tariff plans reflect the competitive per-second rates being

offered for pre-paid customers on Tata Teleservices Limiteds GSM

network. In addition, customers will be rewarded with free talk-time forevery purchase above Rs 500 made at Future Group shopping outlets. For


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example, a T24 customer buying products worth Rs 2,501 at Pantaloons or

EZone will stand to gain 50 minutes of free talk-time. Also, a customer

spending Rs 1,501 in Big Bazaar will gain 90 minutes of free talk-time for

every purchase. Plans will keep evolving to offer ever-more attractive

options to the customer.

Promotion Used by Pantaloons

Major tools used in Promotion

Free Samples.Premium or Bonus Offer.Exchange SchemesPrice-off offerCouponsFairs and ExhibitionsTrading StampsScratch and win offerMoney Back Offer.

Objectives of Sales Promotion

1) To compare usage across exclusive and multi brand outlets.2) To explore rationale behind such activities by examining consumer

behavior.

3) To pose challenges ahead.


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4) To attract new customers and retain the existing ones.

Methodology used by Pantaloons

Tie-ups with major Hotels, Restaurants and Pubs (e.g. SayajiGrand, etc.)

Promoting sale activity through tie up with major organizationslike- AirTel, Satyam Multiplex, Gitanjali Jewels, Talwalkers

Gym, Barista, Baskin and Robbins, US pizza, Ziva, E-Zone,

INOX Multiplex, Tanishq, and etc.Promoting through distribution of discount vouchers of hotels

and redeemable vouchers for Gitanjali Jewels of Rs. 500, 1000

and 2000 while shopping with pantaloons.

Pantaloons also attract customers through organizing eventmanagement like Femina MISS INDIA contest in the store.

Promoting Through Mall Branding.Promoting through courier packets on the pasting of Pantaloons

sandwiches label of offer and Pantaloons T-shirts distribution

to staff members on road show.

Promoting Sales through Hording at Pause areas and Road pollKiosk sandwiches in highly posh areas of the city.

Providing corporate discount voucher to all major corporate.Promoting through SMS blast to more than 10 lakhs Customer

database.

Promoting in major societies of the through No Parkingsandwiches and Leaflets and Posters.

Promoting Sale through organizing contests like-


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SMS dikhao and Inaam pao for AirTel customersand also get a chance to win Videocon DVD

player.

Special shopping with pantaloons and get chanceto win Gitanjali Jewels Pearl set.

Get shopping with pantaloons and get an AirTelSIM Card connection free.

Future Expansions of Pantaloons

Fresh from a change in ownership, Pantaloons Fashion & Retail Ltd will be

investing up to Rs 175 crore in the next 12 months on store expansion across

India, mainly in smaller towns.

The company, which became a part of Kumar Mangalam Birla-led Aditya

Birla Nuvo Ltd (ABNL) effective from April this year, is targeting to open at

least one store per month in the next 12 months at an investment of up to Rs

15 crore per outlet.

"For a format like Pantaloons, which is end-to-end from design to delivery,

there is a tremendous potential. The focus in the next 12 months of transition

is to scale up the store network," Pantaloons Fashion & Retail Ltd CEO

Shital Mehta told PTI.
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He said further said: "Our target in the short term is to open at least one store

a month, although we have a line of sight for 15 stores."

On the investments for the network expansion, he said: "Per store, includingthe real estate and capex, it should be around Rs 15 crore on an average."

Mehta said while metros would continue to be part of the strategy, the

company is targeting smaller cities and towns.

"We are targeting young customers in 'Bharat', who are entering the

consumption brigade. Our ability to offer affordable fashionable ethnic wearis our strength to attract them. About 60-70 per cent of the new stores will be

in smaller places," he said.

The firm opened its first flagship store in Chandigarh last week and is

targeting other places, including Dehradun, Pune, and Kalyan. Pantaloons

have 71 stores across 35 cities.

When asked if the change in ownership from Future Group would signal

changes in the way Pantaloons operate, Mehta, who held top positions in

Aditya Birla group's Madura Garments, replied in the negative.

"What we bring is not only the financial muscle but also the experience of

building brands. What we are looking is to build on the inherent quality of

Pantaloons, which is costing and affordability, the ability of offer affordable

fashionable items in a modern store format," he said.

Mehta also said Pantaloons has about 20-25 "power house brands" which

could be developed into standalone labels in future and even open

independent outlets for them.
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Last year, Aditya Birla Nuvo Ltd had entered into an agreement with the

Future Group to infuse Rs 1,600 crore into 'Pantaloon' and acquire a majority

stake in the store chain and later demerge it to be listed as a separate entity.

Innovations

Pantaloons Retail has implemented SAP with an investment of $10Million in keeping pace with the technology and it is currently in the

process of setting up SAP consultancy software. SAP will be helpful

in building robust transaction management system and

Consumer Survey of Product Innovation 2013

Sach Handwash voted product of the year by Consumer Survey ofProduct Innovation 2013

Images Fashion Awards 2013

The Most Admired Fashion Retail Personality of the Year Mr.

Kailash Bhatia

The Global Innovation Award

International Home + Housewares Retail Excellence /GlobalInnovation' for the year 2012-2013HomeTown


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Retailer Technology Awards 2013

Future Group's IT team was felicitated with the following awards:

Retail Application of the year IT Team of the year Supply ChainSoftware Solution

Rural Marketing Association of India's (RMAI) Corporate Awards 2012

Best marketing communication towards women, youth and children Future Learning

Documents

Retail Assignment on Pantaloons.docx