RETAIL MARKETING PROJECT

ON
PANTLOON RETAIL (INDIA) LTD

Submitted By: To :

PRADIP Kr, Prof. J.SHANTI

MBA, IIBS , BANGLORE.

2nd SEM.
PANTALOON’S RETAIL

Contents,,,,,,,,,,,,,,,,,,,,,,,,

 About pantaloons........................................................................................
 Store location ...............................................................................................
 Retail Meaning..............................................................................................
 Three Important Things About a Retail store……...........................................
 Placing of Products in the outlet....................................................................
 Products Offerings..........................................................................................
 Company Strategies.......................................................................................
 Promotion Strategy……………………………………..................................................
 Pricing Strategy..............................................................................................
 Position Strategy……………………………………………………………………………………....
 Building Customer Loyalty............................................................................
 Conclusion..…………………………………. ...........................................................
 References…………………………………..............................................................

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PANTALOON’S RETAIL

Pantaloon Retail (India) Limited

INTRODUCTION

The Pantaloon group ,a leading retailing group in India. In March 2006, the group renamed itself as
the 'Future Group' and was further divided into six verticals - Future Retail, Future Brands, Future
Space, Future Capital, Future Media, and Future Logistics . Headquartered in Mumbai (Bombay), the
company operates over 7 million square feet of retail space, has over 1000 stores across 53 cities in
India and employs over 25,000 people.

VISION: Future Group shall deliver Everything, Everywhere, Every time for Every Indian
Consumer in the most profitable manner.

MISSION: We shall be efficient, cost- conscious and committed to quality in whatever we do.

CORE VALUES: Rewrite rules. Retain values.

FOUNDER: Mr. Kishore Biyani

Website: www.pantaloon.com

Company Outlet:
Pantaloons :: The Forum Value Mall

Address : The Forum Value Mall, Ground Floor, No.

62, Whitefield Main Road,Banglore

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PANTALOON’S RETAIL

Pincode:560006
State : Karnataka

Size  : 50,000 + sq. ft.

Tel: NA

RETAIL MEANING:-

Retail comes from the French word retailer which refers to "cutting off, clip and divide" in terms of
tailoring (1365). It first was recorded as a noun with the meaning of a "sale in small quantities" in
1433 (French). It's literal meaning for retail was to "cut off, shred, paring".

Business of selling products and services to the public as the ultimate consumer. Retailing involves
selling many different products and services, either from a store location or in direct selling through
vending machines and in-home presentations, mail order, and so on.

First retailers in India include BATA, Pantaloon, Bombay Dyeing, Spencer’s, and Nilgiris. The
current Retail scenario is controlled by the likes of shoppers stop, Big Bazaars.

Three important things about a retail store

1) Location
2) Price
3) Promotion

PLACING OF PRODUCTS IN THE OUTLET

The Pantaloons outlet in “Forum Value Mall” has Two floors – ground and first floor.

The ground floor has women and kids wear. It also contains women and kids accessories. The women
wear is in the front of the ground floor, while the kids wear is in the back of the shop. The middle
portion of the shop in the ground floor has the women and
kids accessories.

The first floor has men wear and accessories. The men wear is
in the front and accessories at the back of the floor.

The keeping of the products of the women and kids in the

ground floor is only for convenience and also due to the fact
that women are more prone to shopping. Kids come to shop
with their mother, and so they can be attracted more by
keeping the kids wear and accessories in the ground floor.

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PRODUCTS OFFERINGS ::::::

Pantaloons is positioned as an entire family store and it deals in men’s wear, ladies wear and
kid’s wear. It mainly focuses on its Private label programme because the share of private
label has increased over the previous year and stands at nearly 75%. Below are some of the
company’s private labels:

MEN’S WEAR

 John Miller

 JM Sports

 Bare Denim

 Rig

 Ajile

 Lombard

 T-2000

 Bare Leisure

LADIES WEAR

 Honey

 Akkriti

 Annabelle

 Mix & Match

 Ajile

 Rig

KID’S WEAR

 Chalk
 Bare 7214

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PANTALOON’S RETAIL

ACCESSORIES

 Cosmetics
 Stationary for kids
 Books & Magazines

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PANTALOON’S RETAIL

COMPANY STRATEGIES
PROMOTIONAL STRATEGIES :::::::

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

 Instant discounts for every time you shop at Pantaloons.

 Exclusive shopping days to get hold of latest merchandise.

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

2. Pantaloon continued to be the title sponsor for femina miss India MANASVI MAMGAI 2010
pageant.

PRICING STRATEGY ::::::

They propose to provide branded products at 10% less

than the Mrp and 20% off on the local brands, which is
similar to what has been carried out in Big bazaar.

Keeping costs down is clearly the cornerstone of policy

at both chains. Pantaloon chief Biyani ensures cheaper
prices by keeping watch at every step.

Says Biyani: "We do three things -- buy directly from

the manufacturers so that the middle man is eliminated. We buy in cash and get a cash
discount, and manage our stocks turns so that we don't have money stuck up. The benefits are
passed on to the customers.”

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PANTALOON’S RETAIL

POSITIONING STRATEGY::::::

Initially positioned as a family store, it finally veered towards becoming a fashion store with
and emphasis on youths and clear focus on ‘FRESH FASHION’. They are targeting youth
and even women, since they are the ones defining most purchasing decisions.

Building customer loyalty:::::-

The key to a successful business is a steady customer base. After all, successful businesses typically
see 80 percent of their business come from 20 percent of their customers. Too many businesses
neglect this loyal customer base in pursuit of new customers. However, since the cost to attract new
customers is significantly more than to maintain your relationship with existing ones, your efforts
toward building customer loyalty will certainly payoff.

Here are ways that Pantaloons follow to build customer loyalty:

1. Communicate: Whether it is an email newsletter, monthly flier, a reminder card for a tune up, or a
holiday greeting card, reach out to your steady customers i.e. they offer green cards on purchasing of
Rs. 5000 or onwards with many discount schemes and inform the costumer about a special or extra
discounts through emails.

2. Employee Loyalty: Loyalty works from the top down. If you are loyal to your employees, they will
feel positively about their jobs and pass that loyalty along to your customers.

3. Employee Training: Train employees in the manner that you want them to interact with customers.
Empower employees to make decisions that benefit the customer i.e. they provide one month training
to their employees and give knowledge about fabrics in apparels and related products.

4. Customer Incentives: They give customers a reason to return to their business. For instance,
because children outgrow shoes quickly, so they offer a card that makes the tenth pair of shoes half
price. Likewise, a dentist may give a free cleaning to anyone who has seen him regularly for five
years.

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PANTALOON’S RETAIL

5. Be Flexible: They try to solve customer problems or complaints to the best of their ability.
According them excuses such as "That's our policy" ? will lose more customers then setting the store
on fire.

Point-of-purchase (POP) Displays: They use POP displays by creating effective combination of
attractive store layout and displays to make the impulse purchase of costumers.

I.e. In apparel segment they put the clothes in display from dark color to light color in winters and
vice versa in summers to attract customers or to increase their sales

SWOT analysis:::::-

Strength

Brand equity and early mover advantage; Entrepreneur led, professionally managed by an
experienced team; Project execution and operations capabilities; Vast range of lifestyle and value
retail products and services; Strong distribution and logistics network and supply chain; strong
distribution and logistics network, with our 21 distribution centers covering; and Large base of
customers and Strong focus on systems and processes; Retailing is a "technology-intensive" industry.
It is technology that will help the organized retailers to score over the unorganized retailers.
Successful organized retailers today work closely with their vendors to predict consumer demand,

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shorten lead times, reduce inventory holding and ultimately save cost. Example: Wal-Mart
pioneered the concept of building competitive advantage through distribution & information
systems in the retailing industry. They introduced two innovative logistics techniques, cross-docking
and EDI (electronic data interchange). On an average a super market stocks up to 5000 SKU's against
a few hundred stocked with an average unorganized retailer. It is the main sponsor in Femina Miss
India. Strong management team Brand recognition and reputation and Diversity and variety in
products offered on the web (footwear, apparel, sporting equipment etc.) Strong control over its
own distribution channel.No bad reputation like child labor or environment pollution.

Weakness

Weaknesses found can be the opportunities of improvements. The No of outlets available in the
locations of pantaloons are very low. It does not have a strong presence everywhere. Promotional
Cost Vs Revenue Less Conversion level: Despite high footfalls, the conversion ratio has been very low
in the retail outlets in a mall as compared to the standalone counter parts. It is seen that actual
conversions of footfall into sales for a mall outlet is approximately 20-25%. On the other hand, a high
street store of retail chain has an average conversion of about 50-60%. As a result, a stand-alone
store has a ROI (return on investment) of 25-30%; in contrast the retail majors are experiencing a
ROI of 8-10%. Customer Loyalty: Retail chains are yet to settle down with the proper merchandise
mix for the mall outlets. Since the stand-alone outlets were established long time back, so they have
stabilized in terms of footfalls & merchandise mix and thus have a higher customer loyalty base.
High prices in some products E-retailing is limited

– limited variety of products available online direct sale to consumers is creating conflicts with its
own reseller’s online customer service not "helpful" or easy to find.

Opportunity

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The Indian middle class is already 30 Crore& is projected to grow to over 60 Crore by 2010 making
India one of the largest consumer markets of the world. The IMAGES-KSA projections indicate that
by 2015, India will have over 55 Crore people under the age of 20 - reflecting the enormous
opportunities possible in the kids and teens retailing segment. Organized retail is only 3% of the
total retailing market in India. It is estimated to grow at the rate of 25-30% p.a. and reach INR 1,
00,000 Crore by 2010. Percolating down- In India it has been found out that the top 6 cities
contribute for 66% of total organized retailing. While the metros have already been exploited, the
focus has now been shifted towards the tier-II cities. The 'retail boom', 85% of which has so far been
concentrated in the metros is beginning to percolate down to these smaller cities and towns. The
contribution of these tier-II cities to total organized retailing sales is expected to grow to 20-25%.
Rural Retailing: India's huge rural population has caught the eye of the retailers looking for new
areas of growth. ITC launched India's first rural mall "Chaupal Saga" offering a diverse range of
products from FMCG to electronic goods to automobiles, attempting to provide farmers a one-stop
destination for all their needs." Hariyali Bazar" is started by DCM Sriram group which provides farm
related inputs & services. The Godrej group has launched the concept of 'agri-stores' named
"Adhaar" which offers agricultural products such as fertilizers & animal feed along with the required
knowledge for effective use of the same to the farmers. Pepsi on the other hand is experimenting
with the farmers of Punjab for growing the right quality of tomato for its tomato purees & pastes.

Collaborate with other online retailers to offer its products Possibility of outsourcing the web
development and e-commerce to a third party developer new avenues for opening of outlets. And
Increase the promotional activities.

Threats

Increase in the Price of Raw materials Pantaloon strong reputation in the apparel industry Identify
the Threats - competitors activities More number of outlets of competitors available in the
surrounding If the unorganized retailers are put together, they are parallel to a large supermarket
with no or little overheads, high degree of flexibility in merchandise, display, prices and turnover.
Shopping Culture: Shopping culture has not developed in India as yet. Even now malls are just a
place to hang around with family and friends and largely confined to window-shopping.

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RETAILGLOBAL SCENARIO:::::

In the year 2000 the global retail market was 8144.2billion$ and during the year 2009 it will
be around12104.00billion$.The united state of America dominates the world retail market
and accounts for32.3% of the global retailing group. Europe generates30.8%,Asia
pacific25.6% and the rest of the world11.20%.In the world Wal-Mart is regarded as the top
retailer having different format. following table shows 15 largest retailer of the world.

Corporation

Wal-mart

Carrefour

Home depot

Metro

Royal a hold

Tesco

Kroger

Target

Costco

Albert sons

Aeon

Wal Green

GroupeAuchan

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Share of retailing in total employment in selected country:::::

Country Share of retail in total employment

India 6-7%
China 6%
Poland 12%
Brazil 15%
U.S.A 11.7
Korea 18%
U.K 11%
Malaysia 7%

Shares price in the World:::::-

Total no of shares held by the entity in the Company: 18.41%.

CONCLUSION::::

Pantaloon Retail (India) Ltd is a company where it strives for lifestyle and value through its products
and services. Through the study, it is observed that pantaloon can be said an organization where the
P’s of marketing is taken seriously for the maximum profitability through large range of products,
promotional activities for the company through newspapers , magazines , internet ,banners and posters
and a solid sales organization monitoring that the P’s are worked effectively. The store has been well
maintained in accordance with the latest demands of the consumers and through all these strategies
Pantaloon ensures repeated customer patronage.

References:::::

www.pantaloon.com

http://www.fibre2fashion.com/news/company-news/pantaloon-retail-india/

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