Sales promotion strategies in apparel retail industry

(A report submitted towards the partial fulfllment of the requirements of

the two years
full-time Post Graduate Diploma in Management.)

ASIA-PACIFIC INSTITUTE OF MANAGEMENT
3 Institutional Area !asola Ne" #el$i %%&&'(
SU)MITTE# TO* SU)MITTE# )+*

#r, As$is$ C$andra Sudip -umar Ma$ato
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TABLE OF CONTENT
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E/e0uti1e Summary
In a market like India, there is a constant clash between challenges and opportunities but
chances favour those companies that are trying to establish themselves. To sustain in such a
volatile market, companies have to bring innovative solutions. With the advent of modern
format retailers and the growth of plastic cards, affluent urban Indians are shopping like
never before.
As apparel retail is led by fashion, a retailer needs to keep a close watch on fashion amongst
teenagers, as they are the trend setters. Seasonal variations on stocking pattern and need to
clear inventory at the end of season should be understood by apparel retailer. This highlights
the importance of sales promotions- short term activities which induces trade or consumer to
buy now, rather than in future, as the value of apparel after the season goes down
substantially and inventory carrying burden turns out to be very high. Apparel retailer needs
to understand critical role of sales promotions.
The topic of the proect is to perform a study on consumer sales promotion activities of the
apparel retail stores in !elhi. To accomplish the above, three apparel retail stores of different
well known business groups, located in !elhi "#$ were surveyed and interviewed. The
responses were analy%ed and results were obtained. The core purpose of the survey was to
study the sales promotion activities performed by apparel retail outlets which results in
stimulating product interest, trial, purchase and stock clearance.
2iterature 3e1ie"*
Several studies on apparel retail sector and usage of promotions are reported in the conte&t of
developed markets. A brief overview is presented below'
!eeter-Schmel%, !awn $.( )oore, *esse ".( +oebel, !aniel *, ,-.../ e&amined 0restige
clothing shopping by consumers by a confirmatory assessment and refinement of the
0$1#2"scale. Aspects studied include background on the symbolic aspects of consumption(
prestige shopping behavior( reassessment and refinement of the 0$1#2" scale and impact of
income and age on prestige shopping. The paper concludes with managerial implications for
the 3nited States apparel retailers dealing in prestige clothing.
4incade, !oris 5.( Woodard, +inger A.( 0ark, 5aesun ,-..-/ studied 6uyer7seller
relationships for promotional support in the apparel sector which is critical for success. The
purpose of the study was to define promotional support categories offered to apparel retailers
by manufacturers, to identify the retailer8s perceptions of the offering fre9uency and
importance of the promotional support, and to investigate the relationship between offering
fre9uency and perceptions of importance. $esults indicated that monetary support was
regarded as the most important promotional support.. A positive and significant correlation
was found between items the buyers perceived as important and the fre9uency of offerings of
these items.
:iu, ;uping, ,-..</ found out the :ong-Term Impact of :oyalty 0rograms on #onsumer
0urchase 6ehavior and :oyalty. 3sing longitudinal data from a convenience store franchise,
the study found out that consumers who were heavy buyers at the beginning of a loyalty
program were most likely to claim their 9ualified rewards, but the program did not prompt
them to change their purchase behavior. In contrast, consumers whose initial patronage levels
were low or moderate gradually purchased more and became more loyal to the firm. =or light
buyers, the loyalty program broadened their relationship with the firm into other business
areas. Thus there is a need to consider patronage to decide rewards for loyalty programmes.
C$apter %
Introdu0tion to retailing

Introdu0tion to retailing
The revolution in retailing industry has brought many changes and also opened door for many
Indian as well as foreign players. In a market like India, there is a constant clash between
challenges and opportunities but chances favour those companies that are trying to establish
themselves. Thus, to sustain in a market like India, companies have to bring innovative
solutions. Indian market has potential to accommodate many retail players, because still a
small proportion of the pie is organi%ed.
$etailing is still in its infancy in India. In the name of retailing, the unorganised retailing has
dominated the Indian landscape so far. According to an estimate, the unorgani%ed retail sector
has ><? presence whereas the organi%ed accounts for merely @?. Industry has already
predicted a trillion dollar market in retail sector in India by -.AA. 5owever, the retail industry
in India is undergoing a maor shake-up as the country is witnessing a retail revolution. The
old traditional formats are slowly changing into more comple& and bigger formats. )alls and
mega malls are coming up in almost all the places, be it metros or the smaller cities, across
the length and breadth of the country.
A )c4insey report on India ,-.A./ says organi%ed retailing would increase the efficiency and
productivity of entire gamut of economic activities, and would help in achieving higher +!0
growth. At B?, the share of employment of retail in India is low, even when compared to
6ra%il ,AC?/, and 0oland ,A-?/. +ovt of IndiaDs plan of changing the =!I guidelines in this
sector speaks of the importance attached to retailing. $ecent moves by big corporate houses
like $eliance Industries has further fuelled the maor investments in retail sector. A strategic
alliance, land ac9uisitions in prime areas give the essence of the mood in this sector. 6oth
)"#s and Indian firms want to get their share of this burgeoning pie. "otable in Indian firms
are 0antaloons $etail E 6ig 6a%aar, TrentDs Westside, ShopperDs stop, $eliance, Subhiskha,
Wills :ifestyle stores, #afe #offee !ay, which are present in India in different retail formats.
Wal-)art stores have ust started operations in India. Some leading retail coffee chains of the
world like Starbucks, 6arnies are planning to e&pand in a maor way in India.
T$e Indian retail se0tor
India is the country having the most unorgani%ed retail market. Traditionally it was a familyDs
livelihood, with their shop in the front and house at the back, while they run the retail
business. )ore than >>? retailerDs function in less than F.. s9uare feet of shopping space.
The Indian retail sector is estimated at around $s >..,... crore, of which the organi%ed
sector accounts for a mere @ per cent indicating a huge potential market opportunity that is
lying in the waiting for the consumer-savvy organi%ed retailer. 0urchasing power of Indian
urban consumer is growing and branded merchandise in categories like Apparels, #osmetics,
Shoes, Watches, 6everages, =ood and even *ewellery, are slowly becoming lifestyle products
that are widely accepted by the urban Indian consumer. Indian retailers need to take
advantage of this growth and aiming to grow, diversify and introduce new formats has to pay
more attention to the brand building process. The emphasis here is on retail as a brand rather
than retailers selling brands. The focus should be on branding the retail business itself. There
is no doubt that the Indian retail scene is booming. A number of large corporate houses G
TataDs, $aheaDs, 0iramalsDs, +oenkaDs G have already made their foray into this arena, with
beauty and health stores, supermarkets, self- service music stores, new age book stores,
every-day-low-price stores, computers and peripherals stores, office e9uipment stores and
homeHbuilding construction stores. Today the organi%ed players have attacked every retail
category.
Apparel retail industry
In India, clothing retail accounts for @B? of organised retail business. It is the largest sector.
$eady-made apparel accounted for an estimated -.? of domestic clothing sales in -.AA.
With growing working women wearing western wear to work, and pressed for time, market
for good readymade clothes is likely to grow. India is a film- cra%y nation, and the largest
producer of films, with more than A,... every year. They provide entertainment and an
escape from reality for IndiaDs masses, and set the popular fashion trend. 6ollywood fashions
have become pan Indian. They affect various sectors of the market including clothing,
footwear, weddings and fashion accessories.
With the advent of modern format retailers and the growth of plastic cards, affluent urban
Indian women are shopping like never before. They spend mornings browsing in stores
looking for deals or latest styles. 3pper income urban women are adopting ethnic wears.
These are designer clothes that incorporate Indian motifs, ethnic fabrics and are a fusion of
western and Indian styles.
In the large urban centres, apparel retailers, like Shoppers Stop, Westside and 0antaloon have
popularised their private labels, which have attracted urban shoppers. Westside carries only
its own private labels, while for the other stores, -.-@.? of their apparel turnover is from
private labels. #ustomers have loyalty to a store rather than any particular garment brand.
This has led to a thriving unbranded or local brand market for ready-to-wear clothes leading
to severe competition. 5ence organi%ed retailers like :ifestyle, for instance, has a loyalty
programme called IThe Inner #ircle8, while 0antaloons offers a I+reen #ard8 $ewards
programmes, Westside has I#lub West8 to woo the customers. #ustomers look to design and
fit of the clothes, and use the shopDs name as a 9uality standard.
C$ara0teristi0s o4 Apparel retail se0tor
As apparel retail is led by fashion, a player needs to keep a close watch on fashion amongst
teenagers as they are the trend setters. $ole of 6ollywood in spreading fashion needs to be
understood. Seasonal variations on stocking pattern and need to clear inventory at the end of
season should be understood by apparel retailer. Typically once an item is sold from the
outlet, retailer ensures that there is no repetition of same. It gets replaced by different design,
style and colour. Importance of store layout, dJcor is very critical. A person visiting the store
fre9uently likes to see changes in the layout otherwise he may carry the impression that
stocks are not moving out of the store. #ategory management becomes very crucial function
as transformation of design into production and delivery has to be completed before fashion
or fad changes in the market.
This highlights the importance of sales promotions- short term activities which induces trade
or consumer to buy now rather than in future as the value of apparel after the season goes
down substantially and inventory carrying burden turns out to be very high. Apparel retailer
needs to understand critical role of sales promotions. Attractive promotions induces purchase
acceleration, stock piling and brand switching on the part of a consumer which substantially
reduces retailersD financial and inventory risk and consumersD financial risk and psychological
risk.
Seasons o4 3etailing
Summer Season
K It is usually from )ay to *uly.
K :ow sales are recorded during this period.
K This season is good for promotions and launching new advertisement campaigns.
Fall Season
K August and September are important months.
K $etailers are provided a good opportunity to increase their share.

5oliday Season
K It begins usually at the end of 2ctober and carries through the fourth
9uarter ending in *anuary.
K =estivals like !usherra, !iwali, #hristmas and "ew ;ear 1ve bring more customers.
K 3sually it is the best time for retailers.
Spring Season
K It lasts from =ebruary to )ay
K =ewer footfalls are recorded in malls.
Customers
Men
K While men tend to prioriti%e fashion to a lesser degree than women, Lright-
lookM and the LdescentM image is still important to them.
K )en tend to spend more money on electronic gadgets, food, sports goods
and music.
6omen
K LTeenM girls represent a lucrative opportunity for retailers. They are going to
become the future buyers.
K LTeenM girls are more trend savvy. It is not ust the clothes and accessories, but
the whole look that the teen girls aspire to define.
K Women spend more on ewellery and household items and thus they
contribute a lot more in terms of revenue.
Ma7or Players in apparel retail
ShopperDs Stop
0antaloon $etail ,I/ :td.
Westside
:ifestyle International 0vt. :td.
+lobus
Wills :ifestyle
Sales Promotion
Sales promotions are short-term incentives to encourage the purchase or sale of a product or
service.
Sales promotion includes several communications activities that attempt to provide added
value or incentives to consumers, wholesalers, retailers, or other organi%ational customers to
stimulate immediate sales. These efforts can attempt to stimulate product interest, trial, or
purchase. 1&amples of devices used in sales promotion include coupons, samples, premiums,
point-of-purchase ,020/ displays, contests, rebates, and sweepstakes
Sales Promotion Strategies
There are three types of sales promotion strategies'0us h,0ull, or acom bination of
the two.
A pus$ strategy involves convincing trade intermediary channel members to NpushN the
product through the distribution channels to the ultimate consumer via promotions and
personal selling efforts. The company promotes the product through a reseller who in turn
promotes it to yet another reseller or the final consumer. Trade-promotion obectives are to
persuade retailers or wholesalers to carry a brand, give a brand shelf space, promote a brand
in advertising, andHor push a brand to final consumers. Typical tactics employed in push
strategy are' allowances, buy-back guarantees, free trials, contests, specialty advertising
items, discounts, displays, and premiums.
A pull strategy attempts to get consumers to NpullN the product from the manufacturer
through the marketing channel. The company focuses its marketing communications efforts
on consumers in the hope that it stimulates interest and demand for the product at the end-
user level. This strategy is often employed if distributors are reluctant to carry a product
because it gets as many consumers as possible to go to retail outlets and re9uest the product,
thus pulling it through the channel. #onsumer-promotion obectives are to entice consumers
to try a new product, attract customers away from competitorsD products, get consumers to
Nload upN on a mature product, hold E reward loyal customers, and build consumer
relationships. Typical tactics employed in pull strategy are' samples, coupons, cash refunds
and rebates, premiums, advertising specialties, loyalty programsHpatronage rewards, contests,
sweepstakes, games, and point-of-purchase ,020/ displays.
3easons 4or Sales Promotions
This could be a way of monitoring the performance of product management. Since sales
promotion can possibly provide immediate impact on consumer sales, it is not unusual to use
these strategies to attain their sales obectives.
#ompanies have to cope with pressure on sales margins which they can achieve through
paying closer attention to cost-effective sales volume. Since the results of using sales
promotional techni9ues can be determined accurately, sales volumes can be easily predicted.
)ore importantly, sales promotions are not only effective in attaining short- term sales( they
are also more cost-effective compared to other integrated marketing communications tools
such as advertising. The progressive fragmentation of audiences and the increase in media
costs have tipped the balance in favor of sales promotion techni9ues which are more likely to
deliver demonstrable results.
0opularity of Sales 0romotions
The reason sales promotions are gaining popularity is due to the fact that product and sales
management are very confident in their ability to handle the techni9ues of sales promotion.
2ther forms of integrated marketing communication tools need to go through a lot of thought
and internal debates before funds are allocated or decisions are arrived at.
0roduct managers also are more in control of the determination and implementation of sales
promotional activities. They have a freehand when it comes to what sales strategies to use.
The importance of sales promotions as an integrated marketing communications tool could be
attributed to the increase in number of specialist sales promotions agencies operating in
certain places. In the past, sales promotion was viewed as part of other marketing
communications techni9ues. Today, it is one of the stand-alone effective marketing tools.
#isad1antages o4 Sales Promotions
2n the downside, the sales promotions, unlike other integrated marketing communication
tools, work often on a short-term basis only. 3nlike advertising or public relations, for
instance, sales promotions strategies
may have no lasting impact on the brand

C$apter '
Study O4 3etail Stores In
#el$i NC3*
Study O4 3etail Stores In #el$i NC3*
0antaloon $etail ,India/ :imited, is IndiaDs leading retailer that operates multiple retail
formats in both the value and lifestyle segment of the Indian consumer market.
5ead9uartered in )umbai ,6ombay/, the company operates over A- million s9uare feet of
retail space, has over A... stores across <A cities in India and employs over @.,... people.
The companyDs leading formats include 0antaloons, a chain of fashion outlets, 6ig 6a%aar, a
uni9uely Indian hypermarket chain, =ood 6a%aar, a supermarket chain, blends the look, touch
and feel of Indianba% aars with aspects of modern retail like choice, convenience and 9uality
and #entral, a chain of seamless destination malls. Some of its other formats include 6rand
=actory, 6lue Sky, a::, Top A. and Star and Sitara. The company also operates an online
portal, futureba%aar.com- a subsidiary company, 5ome Solutions $etail ,India/ :imited,
operates 5ome Town, a large-format home solutions store, #ollection i, selling home
furniture products and eOone, focused on catering to the consumer electronics segment.
0antaloon $etail was recently awarded the International $etailer of the ;ear -..< by the 3S-
based "ational $etail =ederation ,"$=/ and the 1merging )arket $etailer of the ;ear -..<
at the World $etail #ongress held in 6arcelona. 0antaloon $etail is the flagship company of
=uture +roup, a business group catering to the entire Indian consumption space.
=uture +roup manifesto
L=utureM 7 the word which signifies optimism, growth, achievement, strength, beauty,
rewards and perfection. =uture encourages group to e&plore areas yet une&plored, write rules
yet unwritten( create new opportunities and new successes. To strive for a glorious future
brings groupDs strength, ability to learn, unlearn and re-learn ability to evolve. The =uture
+roup will not wait for the =uture to unfold itself but create future scenarios in the consumer
space and facilitate consumption because consumption is development. Thereby, the future
groups will effect socio-economic development for the customers, employees, shareholders,
associates and partners. The customers not ust get what they need, but also get them where,
how and when they need. =uture +roup will not ust post satisfactory results, but will write
success stories.
=uture +roup will not ust operate efficiently in the Indian economy, will evolve it. =uture
+roup will not ust spot trends, group will set trends by marrying their understanding of the
Indian consumer to their needs of tomorrow.
It is this understanding that has helped =uture +roup succeeds. This will help group succeed
in the =uture. The group shall keep relearning and in this process, do ust one thing.
L$ewrite $ules. $etain PaluesM
Group 8ision
=uture +roup shall deliver 1verything, 1verywhere, 1very time for 1very Indian
#onsumer in the most profitable manner.
Group Mission
To share the vision and belief that the customers and stakeholders shall be served only
by creating and e&ecuting future scenarios in the consumption space leading to
economic development.
To be the trendsetters in evolving delivery formats, creating retail realty, making
consumption affordable for all customer segments 7 for classes and for masses.
To infuse Indian brands with confidence and renewed ambition.
To be efficient, cost- conscious and committed to 9uality in whatever we do.
To ensure that positive attitude, sincerity, humility and united determination
shall be the driving forces to make the organi%ation successful
=ormats, +roup #ompanies E *P of 0antaloon $etail India :td
Analysis report*
S6OT Analysis o4 Pantaloon 3etail 9India: 2td
Strengt$
Industry leader
=irst )over Advantage
5igher 6argaining 0ower to higher
number of store and good coverage
5ighest number of formats of stores
1asy to attract talent
5ighest market share in 2rgani%ed
retail
Strong +ood Will in market which
helps them in raising money for
e&pansion,forming *P, entering new
market or new format.
!iversified business
Stronger private label brands
6ea;ness
+overnment rules and regulations are
not favorable
=!I policy not so favorable for tie-
ups
#annibali%ation within the formats
$ecession and global melt-down
affected the performance of the book
Shrinking margins due higher
input cost
Opportunities
:u&ury brand segments untapped by
pantaloon
Tie-up with foreign player to bring in
Technical e&pertise and funds to
e&pands aggressively
Smaller formats should e&pand more
aggressively in tier II and tier III
cities
Scope of 0rivate labels
Integrating supply chain with other
retailers
:icense agreement with foreign
brands
T$reats
$apid e&pansion by current players
like Trent, Shoppers Stop, $eliance,
)ore, 6harti and Spencers
Tie-up of competitors with foreign
retail giants. =or e&ample 6harti E
Walmart
)arket conditions highly volatile
last year due to meltdown

Sales Promotion te0$ni<ues at Pantaloon 3etail 9I: 2td,
%,Pri0e-o44 o44er*
3nder this offer, products are sold at a price lower than the original price. This type of
scheme is designed to boost up sales in off-season and sometimes while introducing a new
product in the market.
E/ample*
6uy - men T-shirts at $s. F>>H- and A T-shirt at $s. @>>H- ,)$0' $s.@>>HTshirt/.
6uy - men T-shirts at $s. <C>H- and A T-shirt at $s. C>>H- ,)$0' $s.C>>HTshirt/.
6uy @ men round neck T-shirts for $s. @>>H- ,)$0' $s.A>>HTshirt/.
6uy - men P neck T-shirts at $s. C>>H- and A T-shirt for $s. ->>H- ,)$0'
$s.->>HTshirt/.
6uy @ women T-shirts at $s. @>>H- ,)$0' $s.A>>HTshirt/.
6uy A woman top and get $s. A..H- off on the bottoms.
', #is0ounts*
3nder this, the products are sold at a discounted price with percentage discounts on
the original price. This type of scheme is designed to boost up sales in off-season.
E/ample*
@.? off on all the men formal shirts and trousers.
@. ? off on all the women formals and casual outfits
3, End o4 season sale*
1nd of Season sale or stock #learance sale is been conducted at 0antaloon =actory 2utlets.
They are offering surprising discounts as if you buy - any items of garments and you will get
@ more with your choice absolutely free. These offers are given as celebration of "ew ;ear.
., Seasonal o44ers*
0antaloon provides the customers with various discounts and price-off offers at the stores and
factory outlets on the seasons like winter and monsoon. This type of scheme is designed to
boost up sales in these seasons.
(, Festi1e o44ers
0antaloons have come up with festive offer during !iwali and #hristmas by giving away gifts
for purchases that are made at the store for cheaper price. If you shop for $s. CF.. you get a
Strolley bag worth $s. A->> for $s. AC> only. If you shop for $s. -C.. and above you get a
lemon set, which is said to be imported, worth $s. BC> for $s. >> only.
=, Ne" +ear o44ers*
0antaloons offers gifts for purchases that are make at the store during the "ew ;ear for
cheaper price. If you shop for $s. @F.. you get a Imported !esigner +lass Set for $s. -C>
only. If you shop for $s. -F.., you get a @ nights and C days holiday package for a couple on
an International cruise.
>, #is0ount Coupons*
0antaloon offers -F? discount on its large range of apparels. The coupon is valid for limited
period. This coupon is valid for -F? off on any product purchased from
www.pantaloon.futureba%aar.com.
?, Gi4t 8ou0$ers*
0antaloons =resh =ashion offers many 0antaloons vouchers ranging different denominations
like $sA.., $s.-F., $s.A... and $s.-.... These 0antaloons vouchers are e&changeable with
the products by the customers at all the 0antaloons Showrooms in India. The vouchers are a
better option rather than gifts for the employees and customers as they are not bound for a
particular thing to accept. They are given free choice for choosing better gifts for themselves
by using vouchers.
0antaloons vouchers offer a wide range of products and services for shopping. It has got
coverage in AF cities including -- outlets. It thus offers good gift vouchers to its customers,
clients and sales force also to keep good relationships amongst each other. The most famous
+ift Pouchers by 0antaloons =resh =ashion are Trendsetters and #onnoisseurs #hoice.
Trendsetters +ift Poucher' This 0antaloons voucher to the customers for the products of value
of $s.F.. at all showrooms of 0antaloons all over India. This voucher is valid for all apparels
only. The amount of the products bought have to be within the face value of the voucher, if it
e&ceeds the actual amount the customer has to pay the e&ceeded amount after the shopping.
This gift voucher is valid till A year from the issue date. It can not be e&changed to part or full
cash. #onnoisseurs #hoice' This 0antaloons voucher is available for the products valued at
$s.F.. at all 0antaloons showrooms. This is known to be as good as the cash under
0antaloons. This is valid for one year after issuance. The voucher can not be e&changed
neither it can be encashed. The voucher can be converted for once. Any balance on voucher
will not be e&changed as cash or any product. The pantaloons all over India have got this
facility so that the customers can avail it any time any where.
@, Pantaloon loyalty program 9Green 0ard:*
+reen #ard is a passport to a whole new world of e&clusive benefits and privileges to
the customers.
Instant discounts for every time you shop at 0antaloons.
1&clusive shopping days to get hold of latest merchandise.
$egular updates on collections and promos via catalogues, sms and email.
Special invites to the most happening events.
1&tended e&change periods and complimentary drops for alterations.
1&clusive billing counters and much more.
ShopperDs Stop :td., has redefined retail in India, taking it to the ne&t level. =rom being ust
the sale of goods to consumers, the company has created a uni9ue aura around retail and
turned it into an e&perience, an indulgence. The pioneer of organi%ed retail in India,
ShopperDs Stop :td., has been instrumental in bringing about a retail revolution in the country
and has become the highest benchmark for the industry. With its growth plans firmly in place
and undeniable leadership in the field, ShopperDs Stop :td., is well on its way to raise the bar
of performance even higher. ShopperDs Stop :td. has made this purchase of goods e&tremely
pleasurable. The stores have redefined shopping by making it more than ust a transaction.
The entire shopping process is the coming together of an ama%ing array of offerings, warm
but unobtrusive service and special privileges and benefits that translate every visit into
customer delight
Since its inception in A>>A, ShopperDs Stop :td., which was founded by the 4 $ahea #orp.
+roup ,#handru : $ahea +roup/, one of the leading players in the country in the business of
real estate development and hotels, has been offering premium and lu&ury value for the entire
family. ShopperDs Stop :td. has metamorphosed from being a chain of retail stores to
emerging as a =ashion E :ifestyle destination, which now includes retail concepts such as
bookstores, cafJs and high-end lifestyle merchandise for the growing affluent middle class in
India. Today, its name is synonymous with superior 9uality product, services and above all,
an international shopping e&perience.
In order to enhance the level of customer service and gain insight into new and emerging
practices followed internationally, ShopperDs Stop :td. is a member of the Inter #ontinental
+roup of !epartment Stores ,I+!S/. It is the only Indian member along with -> other
e&perienced retailers from all over the world. :everaging e&pertise, e&cellence and
e&perience, ShopperDs Stop :td. has become a benchmark for the Indian retail industry to
follow. A pioneer of organi%ed retail in India, ShoppersD Stop today, is the countryDs biggest
!epartment Store #hain. It offers customers an international shopping environment and a
world-class shopping e&perience through its -. stores in AA cities. It houses a host of
international and domestic brands across categories such as apparel, accessories, cosmetics,
home E kitchenware as also its own private brands. ShoppersD Stop offers a wide range of
brands ,more than C.. brands/ for the entire family to choose from. 1&clusive and
Men Se0tion
established brands share shelf space to offer an array of choices customers across all ages,
tastes and occasions. ShoppersD Stop is the single largest retailer for :eviDs Strauss, 0epe,
:ee, Arrow, Oodiac, $ay-6an, Swatch, among others.
Pri1ate 2aAels
Shoppers Stop has a range of 0rivate :abels across )en8s casual wear to formals to Women8s
wear. 0rivate :abels contribute a mere -.? to its Total Sales. 5ere are the 0rivate :abels
Sold in Shoppers Stop outlet,
4ashish - )ens8s 1thnic Wear
Stop - Western Wear - )en E Women
:ife - )ens #asual Wear , *eans Wear
)ario Oegnoti - )en8s =ormal Wear
Acropolis - )en8s =ormal Wear
0ush and Shove - 1ye Wear
Pettorio =ratini - 0remium )en8s Wear
S6OT ANA2+SIS OF S5OPPE3S STOP
Strengt$s

Pariety
$ange
!ifferent 6rands
0ioneer
:oyal customer
:ow risk
+ood financial position
0resence across various segments
0arikrama the festival
6ea;ness
Pery high prices
:ess Schemes
:ess !iscounts
#ompetition from standalone stores
:ate entry into value retailing
Store makeover e&penditure
T$reats
+overnment polices
"nterance of new player
5igh attrition
:ess consumer spending
1ntry of foreign player
3norganised sector
Independent stores
Opportunities
Awearness about brands
Quality
;oungsters
5igher disposal income
#ollaborate
0rivate levels
Tier- E tier @ cities
1nter new consumer goods segment
Sales Promotion te0$ni<ues at S$oppers stop
%,Pri0e-o44 o44er*
3nder this offer, products are sold at a price lower than the original price. This type of
scheme is designed to boost up sales in off-season and sometimes while introducing a new
product in the market.
E/ample*
6uy - men T-shirts at $s. <>>H- and A T-shirt at $s. C>>H- ,)$0' $s.C>>HTshirt/.
6uy @ women T-shirts at $s. >>>H- ,)$0' $s.C>>HTshirt/.
', #is0ounts*
3nder this, the products are sold at a discounted price with percentage discounts on the
original price. This type of scheme is designed to boost up sales in off-season.
E/ample*

-.? off on all the men formal shirts and trousers.
-. ? off on all the women formals and casual outfits.
3, End o4 season sale*
1nd of Season sale or stock #learance sale is been conducted at ShopperDs stop. They are
offering surprising discounts upto F.? on all the men and women apparels. These offers
were given last year for limited period in the month of September.
., Seasonal o44ers*
ShopperDs stop provides the customers with various discounts and price-off offers at the
stores on the seasons like winter and monsoon. This type of scheme is designed to boost up
sales in these seasons. !ifferent offers are provided by the stores during these periods from
*une to *anuary

(, Festi1e o44ers*
ShopperDs stop have come up with festive offer during !iwali and #hristmas by giving away
gifts for purchases that are made at the store for cheaper price or free. If you purchase men
apparel worth $s. B...H-, the you are entitled to get a 0olo bag worth $s. -...H- absolutely
free.
=,Gi4t 8ou0$ers*

Shoppers Stop offer +ift Pouchers of denomination ranging from $s. -F. to $s.
F....
>, 3epuAli0 #ay o44er*
ShopperDs stop conducted @ !ay Surprise offer on the occasion of $epublic !ay, giving flat
-. percent discount coupons on purchase of goods worth $s. @...H-, which can be redeemed
on the ne&t purchase.
?,Contests*
Shoppers Stop has announced a A.A-day Shopping 6onan%a to pull in customers into the
stores. :ucky draw winners of the contest will get to see one of the seven wonders of the
world and two lucky couples who get the grand pri%e will be treated to a round- trip which
will cover all the seven wonders of the world.
@, S$opperBs stop loyalty program 9First CitiCen CitiAan; 0redit 0ard:
As s =irst #iti%en #redit card member, you get the benefits of the ShopperDs Stop loyalty
program, =irst #iti%en. The =irst #iti%en membership entitles you to e&clusive privileges such
as product previews, priority billing and other special benefits. Add to this, the fabulous
e&perience of shopping at the premier ShopperDs stop outlets across the country.
6ESTSI#E
Style, affordable prices, 9uality these are the factors that have shaped Westside8s success story
in the retail fashion stores business. :aunched in A>>R in 6angalore, the Westside chain has,
ever since, been setting the standards for other fashion retailers to follow.
1stablished in A>>R as part of the Tata +roup, Trent :td. operates Westside, one of
India8s largest and fastest growing chains of retail stores. The Westside stores have numerous
departments to meet the varied shopping needs of customers. These include )enswear,
WomenDs wear, 4idDs wear, =ootwear, #osmetics, 0erfumes and 5andbags, 5ousehold
Accessories, lingerie, and +ifts. The company has already established @B Westside
departmental stores ,measuring AF,...-@.,... s9uare feet each/ in Ahmedabad, 6angalore,
#hennai, !elhi, +urgaon, +ha%iabad E "oida ,to be considered as A city/, 5yderabad,
Indore, *aipur, 4olkata, :udhiana, :ucknow, )umbai, )ysore, "agpur, 0une, $akot, Surat,
Padodara and *ammu. The company hopes to e&pand rapidly with similar format stores that
offer a fine balance between style and price retailing.
Trent ventured into the hypermarket business in -..C with Star 6a%aar, providing an ample
assortment of products made available at the lowest prices, aptly e&emplifying its S#hota
6udget, :ambi ShoppingD motto. At present Star 6a%aar has C stores in @ cities located in
Ahmedabad, )umbai and 6angalore. This store offers customers an eclectic array of
products that include staple foods, beverages, health and beauty products, vegetables, fruits,
dairy products, consumer electronics and household items at the most affordable prices. This
story began circa A>>R when The Tatas ac9uired :ittlewoods 7 a :ondon based retail chain.
This ac9uisition was followed by the establishment of Trent :td ,a Tata enterprise that
presently operates Westside/. :ittlewoods was subse9uently renamed Westside. In a rapidly
evolving retail scenario, Westside has carved a niche for its brand of merchandise creating a
loyal following. #urrently, the company has @B Westside stores measuring AF,...-@.,...
s9uare feet each across -. cities. With a variety of designs and styles, everything at Westside
is e&clusively designed and the merchandise ranges from styli%ed clothes, footwear and
accessories for men, women and children to well-co-coordinated table linens, artifacts, home
accessories and furnishings. Well-designed interiors, sprawling space, prime locations and
coffee shops enhance the customersD shopping e&perience
S6OT ANA2+SIS OF 6ESTSI#E*
Strengths
+rowing at the faster pace
6rand name of TATADs.
+ood customer base.
Apparels are cheaper
Attractive promotional schemes and
heavy discounts
Quality and branded stuff only
:ocation advantage
Opportunities
5uge untapped market
$ising disposable income
3rbani%ation
Weakness
"ot much product range for middle
class
=acing problems due to political
environment
"eed help in taking over properties and
real estate
"eed some concessions from labor
laws
:ack of differentiation
0oor inventory turns and stock
availability .
T$reats
#ompetition from organi%ed retail
players
#ompetition from local retailers
'
Pri1ate le1els
0rivate label products or services are typically those manufactured or provided by one
company for offer under another company8s brand. 0rivate label goods and services are
available in a wide range of industries from food to cosmetics to web hosting. They are often
positioned as lower cost alternatives to regional, national or international brand. Westside has
many private labels in its merchandise portfolio. 0rivate labels in Westside include-
-=C3
S$#
+ia
3rban angel
Intima
!avid *ones
Ascot
All these brands are produced for Westside only and can be found in Westside only. These
apparel brands are given separate space for displaying their merchandise and more
promotional offers are there on them to increase their sales. At some places, these private
brands are mi&ed with branded clothes so in that case these private labels are put in lower
shelves. At eyesight level, branded clothes are put.
Sales Promotion te0$ni<ues at 6estside
%, Festi1e o44ers*
With this !iwali !elight offer from Westside if you shop from their store for $s. F... and
above you get a gift voucher from them for $s. A... for free. And if you shop for $s. -F..
and above you get a free gift voucher worth $s. C... This is valid only if you purchase their
in-house merchandise or brands only and not valid if you chose to buy other brands available
at their store.
', End o4 season sale
1nd of Season sale or stock #learance sale is been conducted at Westside. They are offering
surprising discounts upto F.? on all the men and women apparels. These offers were given
last year for limited period in the month of *anuary and *uly.
3, Gi4t 8ou0$ers*
Westside offers +ift Pouchers of denomination ranging from $s. A.. to $s. A.....
.,6estside loyalty program 9CluA "est 0ard program:*
An assuredreturn- and-e& cha ng e policy reinforces customer confidence in the chain.
Another winning Westside idea is #lub West, a customer loyalty program launched in )ay
-..A. The @.,...-plus members of this club get rebates at restaurants and on holiday
packages from the Ta +roup of 5otels, home delivery of alterations, and best of all, special
shopping hours on the first day of any discount sales event organi%ed by the chain.
(, Contests
Shop for $s A,... at Westside, participate in the lucky draw and win the grand pri%e - a
complete holiday packages for two to )acau. ;ou could also win holiday packages to
breathtaking beach destinations in India including +oa, 4ovalam, 0uri and 0ondicherry.
=, #is0ounts*
3nder this, the products are sold at a discounted price with percentage discounts on
the original price. This type of scheme is designed to boost up sales in off-season.
E/ample*
-. - F.? off on all the men formal shirts and trousers.
-. 7 F. ? off on all the women formals and casual outfits.

C$apter 3
3esear0$ Met$odology
3esear0$ Met$odology
Topi0*
LSales promotion strategies in apparel retail industry,D
OA7e0ti1e*
To study the sales promotion activities conducted by the modern apparel retail outlets in
!elhi-"#$ region.
SuA-OA7e0ti1es
To study the current scenario of the retail industry in !elhi-"#$.

To study the current scenario of the apparel industry in !elhi-"#$.

To understand the importance of sales promotion activities.
Met$odology*
%, Type o4 3esear0$
$esearch is an original contribution to the e&isting stock of knowledge making for its
advancement. This research is an amalgamation of both formulari%e as well as descriptive
research.
', 3esear0$ approa0$es
There are two basic approached to research, 9uantitative approach and the 9ualitative
approach. The former involves the generation of data in 9uantitative form, which can be
subected to rigorous 9uantitative analysis in a formal and rigid manner. This approach is
further sub-divided into inferential approach is to form a database from which to infer
characteristics or relationship of a population. This usually means survey research where a
sample of population is studied using 9uestionnaire to determine its characteristics and it is
then inferred that the population has the same characteristics.
Qualitative approach to research is concerned with subective assessment of attitudes,
opinions and behaviour. $esearch in such a situation is a function of researcherDs insight and
impressions. Such an approach to research generates results either in non- 9uantitative form
or in the form, which are no subected to rigorous 9uantitative analysis.
Qualitative approach was been adopted in this study where data was collected by personally
interviewing the staff,nTC/ of the selected stores,nT-B/
3, Sour0es o4 #ata
The first part of the proect was to study the current trends and the future of retail and apparel
industry in India and also to gain some basic knowledge on sales promotion. This consisted
of doing a secondary research about the industry with the help of some te&t books and also
through the internet.
2nce the secondary research was done, a personal visit was conducted to the three well
known apparel retail outlets in !elhiH"#$ namely, 0antaloon $etail ,I/ :td., Westside and
ShopperDs stop. The sales promotion activities conducted in the stores were minutely
observed. 0ersonal interviews with few of the staffs of each store were conducted to gain the
in-depth knowledge about the seasonal and non-seasonal sales promotion activities conducted
by the stores.
Sampling Plan'
9%: Population and Sampling unit
5ere the sample unit is the apparel retail outlets in !elhiH"#$ region.
9': Sample SiCe
=or the purpose of this study, a sample si%e of three apparel retail outlets of Shoppers Stop is
selected nT-B, all of which are located in different parts of !elhi -"#$
93: Sampling Pro0edure
$andom sampling.
9.: Sampling tool
Interview and survey through Questionnaire .
S0ope o4 study*
Apparel industry is one of the fastest growing and profitable industry in retail sector
hence their is a stiff competition between various good brands. #ompanies time to
time use different promotion strategies to attract customer and enhance their sales by
which they survive in market .
The scope is to study and understand the apparels retail sector their promotion
strategies. 5ow they differentiate themselves and attract customers in spite of same
product. The target customers ,segments and strategies.
C$apter .
#ata analysis
#ata analysis
E% 3S0 of company '
,a/ 0rice ,b/ Quality ,c/ !esign ,d/ Pariety in products ,e/ :ocation ,f/ 2ther
It has been found that people prefer Shoppers Stop for its variety.6ut alongside
9uality is the second priority.

E' "umber of employees '
,a/ A-A. ,b/ A.--. ,c/ -.-@. ,d/ @. 7 C. ,e/ C.- F. ,f/ )ore than F.
It has been found that Shoppers Stop has employee around more than F. in ma&imum
outlets in !elhiH"#$. =ew stores have less than F..
Q@Sales promotion techni9ue
,a/ 1nd of season ,b/ :oyalty card 0rogramme ,c/ Special 0romotion ,event/
,d/*oint promotion ,e/ /2ther ,specify/

Its has been found that Shoppers Stop uses end of season to promote E clear old stocks.
QC 0romotion type ,s/
,a/ !iscount ,b/ =ree gifts ,c/ 1&change offer ,b/ =estive offers ,d/ +ift vouchers
It has been found that !iscount is given more priority to generate more revenue.



QFAverage billing per customer ,$s./
,a/ . 7 F.. ,b/ F.. 7 A... ,c/ A... 7 AF.. ,d/ AF.. 7 -... ,e/ )ore than -...
It has been found that average billing of Shoppers Stop goes above -... as the prices
of the apparel in Shoppers Stop is 9uiet e&pensive.
QBAverage footfall ,per day / '
,a/ . 7 F.. ,b/ F.. 7 A... ,c/ A... 7 AF.. ,d/ AF.. 7 -... ,e/ )ore than -...
It was found that during foot fall between F..-A...,per day/ as the survey was
conducted during period of *anuary-=ebruary.
Q<)edia used

,a/ 5oardings ,b/ 0rint ,c/ 1lectronic ,S)S, 1-mail/ ,d/ 020 ,e/ In-store media
,f/ 2ther ,specify/
It was found that 1lectonic media is used most for promotion because due to rise in
usage of internet.

C$apter (
Comparati1e Study
Comparati1e Study
Sales Promotion Pantaloon 6estside

S$opperBs Stop
End o4 season
;es ;es ;es
2oyalty 0ard
Programme ;es ;es ;es
Spe0ial Promotion
9e1ent: ;es ,1&change
offer/
"o
;es ,1&change
offer/
!oint promotion
"o "o "o
Media used 5oardings,print,
electronic ,S)S, 1-
mail/,020
In-store media E
interactive media
0rint,
electronic,
hoardings,
In-store media
0rint,electronic,
hoardings,
In-store media
Promotion type 0rice off,
free gifts,
e&change offer,
=estive offers,
1nd of season sale,
:oyalty program
+ame show
+ift vouchers,
discount, contest,
1nd of season sale.
!iscounts,
gift vouchers,
free gifts,1nd of
season
sale,
:oyalty, e&change
offer
program
=rom the above table, it is clear that all three stores engage in end of season sale. This
reinforces the fact that seasonality affects apparel sector and hence it becomes critical
for a retailer to clear off the stocks at the end of season, otherwise, he may have to
incur substantial inventory carrying costs, allocate scarce shelf space and out of
fashion apparels maybe worthless. Thus stock clearance seems to be very important
obective for apparel retailer in using end of season sale wherein discount given is
upto F.? of the )$0 ,)a&imum retail price/.
All the three stores use loyalty cards to reward loyal users and encourage them to visit
the store often and buy more by offering wide range for men, women and children.
Some store also offer home furnishings, accessories and footwear, thereby providing
convenience for one stop shopping.
*oint sales promotion involves tieing up with other brands like, )ac!onald,
5avmore, +oldDs ,local/ +ym and 4aya skin clinic, etc. "one of the three stores has
yet e&plored avenue of oint sales promotion. Such oint promotions have advantages
in terms of sharing costs of promotions, cross selling opportunities to each otherDs
customers, higher visibility etc.
In terms of type of consumer sales promotions, almost everyone used discount,
coupon programmes and lucky draws, contests, gift, buy one get one free type of
promotions. 0antaloon and ShopperDs Stop uses e&change offer.
C$apter =
Suggestions
Suggestions
*oint sales promotion involves tieing up with other brands like, )ac!onald,
5avmore, +oldDs ,local/ +ym and 4aya skin clinic, etc. "one of the three stores has
yet e&plored avenue of oint sales promotion.
2nline 0romotions and selling would take retail outlet direct to home.
Special offers should not only be restricted for festive season.

C$apter >
Con0lusion
Con0lusion
3sage of sales promotion activities has a direct impact on consumer behaviour as it motivates
a consumer to buy now rather than in future, enhances value of an offer temporarily till the
promotion period, encourages switching, reinforce or reward loyalty etc.
6roadly, obectives set for these activities are(
K To generate store traffic,
K To move e&cess inventory,
K To enhance store image and
K To create a price image ,high or low/.
Traffic building is achieved by special event promotions like !iwali, $akshabandhan
promotions( inventory reduction through end of season sale( creation and building store
image through feature advertising and displays and price image by highlighting the discounts.
It helps consumer reduce not only financial risk but also psychological and social risk by
making consumer confident of hisHher purchase, conformation to group norms by shopping at
famous storesHbrands and possibility of ac9uiring well known branded apparel during
promotions. 0romotions may induce non buyers to walk in to the store and loyalty
programmes may encourage them to buy more, more often or upgrade to better 9uality.
1&citing promotions also have tendency to generate positive word of mouth and help
consumer feel a smart shopper. Thus, not only provide utilitarian benefits like, saving of
money, time or 9uality up gradation but hedonic benefits like feeling confident, feeling of
e&citement and entertainment etc.
1&ecution of the sales promotion activities also re9uire proper coordination of selling effort
and availability of promoted merchandise.
Apparel sector is likely to grow with growing Indian economy. )any multinational players
either have already plunged into Indian market or plan to do so in apparel sector. They will
bring many promotional practices which they have been following in developed markets
which will increase the use of sales promotion activities even further. Indian brands will have
to withstand turbulent conditions and learn to survive. If the role of such promotional
activities is understood well, it may help any player a long way to survive and grow.
)iAliograp$y
www.google.com
www.pantaloon.com
www.mywestside.com
www.shoppersstop.com
www.futureba%aar.com
http'HHbesteoffers.blogspot.comH-..>HA-Hfree-discount-coupon-off--F-of.html