PANTALOON RETAIL INDIA (LIMITED)

PROJECT REPORT

CONSUMER INTRECTION & CONSUMER SERVICE

KRISHNA PAL VERMA

8/27/2009
Guided By

Mr. UMESH PANDAY,’DM’

Submitted by

KRISHNA PAL VERMA

JPPGDM-080121

Contect no.-09452967144

J.P. Institute of Management

Meerut
Distribuyion Channel
Board of directors

Mr. Kishore Biyani, Managing Director

Kishore Biyani is the Managing Director of Pantaloon Retail (India)
Limited and the Group Chief Executive Officer of Future Group. To know
more.
 
 Mr. Gopikishan Biyani, Wholetime Director

Gopikishan Biyani, is a commerce graduate and has more than twenty years
of experience in the textile business.
   
Mr. Rakesh Biyani, Wholetime Director
Rakesh Biyani, is a commerce graduate and has been actively involved in
category management; retail stores operations, IT and exports. He has been
instrumental in the implementation of the various new retail formats.
   
Mr. Vijay Kumar Chopra, Independent Director

V.K.Chopra is a fellow member of The Institute of Chartered Accountants

of India (ICAI) by profession and is a Certified Associate of Indian Institute
of Bankers (CAIIB). His banking career spans over 31 years and he has
served senior management positions in Central Bank of India, Oriental
Bank of Commerce, SIDBI, Corporation Bank and SEBI.
   
Mr. Shailesh Haribhakti, Independent Director

Shri Shailesh Haribhakti, is a Chartered Accountant, Cost Accountant, and

a Certified Internal Auditor. He is the Deputy Managing Partner of
Haribhakti & Co., Chartered Accountants and past president of Indian
merchant Chambers. He is on the Board of several Public Limited
Companies, including Indian Petrochemicals Corporation Ltd., Ambuja
Cement Eastern Ltd. etc. He is on the Board of Company since June 1,
1999.
   
Mr. S Doreswamy, Independent Director

S. Doreswamy, is a former Chairman and Managing Director of Central

Bank of India and serves on the board of DSP Merrill Lynch Trustee Co
and Ceat Limited among others.
   
Dr. D O Koshy, Independent Director

D. O. Koshy, holds a doctorate from IIT, Delhi and is the Director of

National Institute of Design (NID), Ahmedabad. He has over 24 years of
 rich experience in the textiles and garment industry and was instrumental in
the setting up of NIFT centres in Delhi, Chennai and Bangalore. He is a
renowned consultant specializing in international marketing and apparel
retail management.
   
Ms. Bala Deshpande, Independent Director

Bala Deshpande, is Independent Director, Pantaloon Retail (India) Ltd. and

also serves on the boards of Deccan Aviation, Nagarjuna Construction,
Welspun India and Indus League Clothing Ltd, among others.

Mr. Anil Harish, Independent Director

Anil Harish, is the partner of DM Harish & Co. Associates & Solicitors and
an LLM from University of Miami. He also serves on the board of Mahindra
Gesco, Unitech, IndusInd Bank and Hinduja TMT, among others.
Specialized besinesses
CONTENTS
 Acknowledgement
 Preface
 Executive Summary
 Objective of the project
 Research Methodology
 Company Profile
 Marketing Plan
 Management Hierarchy
 Findings And Analysis
 Limitation
 Suggestions/Recommendations
 Bibliography
 Questionnaire
 ACKNOWLEDGEMENT
A work is never a work of an individual. We owe a sense of gratitude to
the intelligence and co-operation of those people who had been so easy to let us
understand what we needed from time to time for completion of this exclusive
project.

We want to express our gratitude towards Mrs. Ismeet dheer ,HR,

Pantaloons :: DT City Center:: Delhi ,for giving us an opportunity to do this
project. Last but not the least, we would like to forward our gratitude to
Mr.Avnish pariyar, ’store head’,Mr.Umesh Panday,’DM’ Internet & J.P.
Institute of Management College. Meerut. who always endured us and stood
by us and without whom we could not have envisaged the completion of our
project.

KRISHNA PAL VERMA

PGDM (2nd YEAR)

 PREFACE

Business,theworld over are struggling to suction conpetitiveness in a

rapidly globling economy. The boundaries of traditional trade partner are
getting dissolved and emerging market present future opportunities as well as
new rivals. In such competitive global environment, it is imperative for every
organization to generate the highest level of customer satisfaction. To attain
these objectives, it has become necessary for the organization to look for the
high skilled and employee according to job.

These days, corporate across the world are facing a difficult task of
“Customer interaction”. Retaining its best employees, a company can improve
customer satisfaction, product sales etc. in other words a business can be
improve in all over direction.

Future group is a reputed company; future group brand store such as life
style, shoppers stop, etc..Pantaloons store sailing many home brand
international brand for man casuals and formals and also for kids and ladies.
During working on this project I have observed how the pantaloon store because
they perform our job very honestly and they maintain the section perfectly.
Major Milestones
1987 Company incorporated as Manz Wear Private Limited. Launch of
Pantaloons trouser, India’s first formal trouser brand.
1991 Launch of BARE, the Indian jeans brand.
1992 Initial public offer (IPO) was made in the month of May.
1994 The Pantaloon Shoppe – exclusive menswear store in franchisee
format launched across the nation. The company starts the
distribution of branded garments through multi-brand retail outlets
across the nation.
1995 John Miller –Formal shirt brand launched.
1997 Pantaloons – India’s family store launched in Kolkata.
2001 Big Bazaar, ‘Is se sasta aur accha kahi nahin’ - India’s first
hypermarket chain launched.
2002 Food Bazaar, the supermarket chain is launched.
2004 Central – ‘Shop, Eat, Celebrate In The Heart Of Our City’ - India’s
first seamless mall is launched in Bangalore.
2005 Fashion Station - the popular fashion chain is launched

aLL – ‘a little larger’ - exclusive stores for plus-size

individuals is launched

2006 Future Capital Holdings, the company’s financial arm launches real
estate funds Kshitij and Horizon and private equity fund Indivision.
Plans forays into insurance and consumer credit.

Multiple retail formats including Collection i, Furniture Bazaar,

Shoe Factory, EZone, Depot and futurebazaar.com are launched
across the nation.

Group enters into joint venture agreements with Generali.

What is Pantaloons ?

Celebrate the Fresh Look, Fresh Feel & Fresh Attitude at Pantaloons Fresh
Fashion !

Fashion is all about the now. Why, then should people not see a fresh look
every time they walk into a Pantaloons store? That is the thought behind
'Fresh Fashion'. An idea that has captured the imagination of young India.
With a focus on the youth of today, Pantaloons offers trendy and hip
fashion that defines the hopes and aspirations of this demography.

Pantaloons Fresh Fashion stands out as a fashion trendsetter, on the lines

of how fashion is followed internationally. The ‘look’ and ‘what’s in’ today
for the season is sacrosanct.

Pantaloons takes its promise of 'fresh fashion' very seriously making

available to its customers the latest in fashion every week!

All Pantaloons stores reflect the new ideology -- Fresh Feeling, Fresh
Attitude, Fresh Fashion. The stores offer fresh collections and are visually
stimulating thanks to appealing interiors and attractive product display!

The first Pantaloons was opened in Gariahat in 1997. Over the years, it has
undergone several transitions. When it was first launched, this store mostly
sold external brands. Gradually, it started retailing a mix of external
brands while at the same time introduced its own private brands. Initially
positioned as a family store, it finally veered towards becoming a fashion
store with an emphasis on 'youth' and clear focus on ‘fresh fashion’.

Today, the fashion store extends to almost all the major cities across
the country. Pantaloons has established its presence with stores not just in
the metros, but also in smaller towns.

Pantaloons stores have a wide variety of categories like casualwear,

ethnicwear, formalwear, partywear and sportswear for Men, Women and
Kids
Images Fashion Forum 2009

Most Admired Fashion Group Of The Year - Future Group

Most Admired Private Label - Pantaloons, the lifestyle format
Critics Choice For Pioneering Effort In Retail Concept
Creation - Central

Coca-Cola Golden Spoon Awards 2009

Most Admired Food & Grocery Retailer Of The Year

Most Admired Food Court
Most Admired Food Professional

2008
Indian Retail Forum Awards 2008

 Most Admired Retail Company of the year - Future Group

 Retail Face of the Year - Kishore Biyani
 Best Retailer Of The Year ( Hypermarket) - Big Bazaar

Future Group was awarded the Most Admired Retail Company of the year
by the Indian Retail Forum at a glittering ceremony organised in Mumbai.
Mr Kishore Biyani also won Retail Face of the Year.

India Retail Forum (IRF) is a platform for intellectual insights and

information exchange for the retail business in the Indian subcontinent. The
forum presents the business of retail in the region to a global audience, with
the express aim of facilitating understanding about and encouraging
investment in this massive marketplace.

Big Bazaar, the value format of Future Group bagged the Best Retailer Of
The Year ( Hypermarket).

The INDIASTAR Award 2008

 Food Bazaar: Best Packaging Innovation

Food Bazaar bagged the INDIASTAR Award for Best Packaging Innovation
in India, for its private label brand Fresh And Pure Chakki Atta.
INDIASTAR Award is a biennial event which aims to promote and
encourage excellence in packaging design, innovation and technology. The
contest was established in 1972 and is considered as the most popular and
premier event for India’s packaging fraternity. This year there were around
357 entries and the participants had to submit a sample of their designs for
selection.

With this award, Pantaloon Retail (India) Limited becomes the first Indian
Retailer to win the prestigious INDIASTAR Award.

Retail Asia Pacific 500 Top Awards 2008

Gold Winner -Top Retailer 2008 Asia Pacific

Retail Asia Publishing Pte, the institutor of these awards, aims to set a

platform that appraise, raises and recognizes the development and growth of
retailing throughout the Asia Pacific region.

Coca-Cola Golden Spoon Awards 2008

 Most Admired Food & Grocery Retail Visionary of the Year: Kishore
Biyani
 Most Admired Food & Grocery Retailer of the Year – Supermarkets:
Food Bazaar
 Most Admired Food & Grocery Retailer of the Year - Hypermarkets: Big
Bazaar
 Most Admired Retailer of the Year - Dynamic Growth in Network
Expansion across Food, Beverages & Grocery: Future Group
 Most Admired Food & Grocery Retailer of the Year - Consumer's
Choice: Big Bazaar

The Coca-Cola Golden Spoon Awards 2008, were given away for the first
time as a culmination of the ‘Food Forum India 2008’ – a two day
convention, which saw the participation of leading brands, retailers & retail
support organizations from across the globe. The awards were presented to
honour enterprise, innovation and achievement in the food retailing business
as a benchmark of excellence.

The Reid & Taylor Awards For Retail Excellence 2008

  Retail Leadership Award: Kishore Biyani
 Retail Best Employer of the Year: Future Group
 Retailer of The Year: Home Products and Office Improvements:
HomeTown

The Reid & Taylor Awards for Retail Excellence are an important feature of
the Asia Retail Congress, Asia’s single most important global platform to
promote world-class retail practices. These awards are aimed at honouring
the best, in the Asian Retail scenario. India played host to Asia Retail
Congress 2008.

2007
Images Retail Awards

Most Admired Retail Face of the Year: Kishore Biyani

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

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

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

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

 Images Retail Forum followed strict international benchmarks in

deciding the top honours for Images Retail Awards ’07, with IRIS as
knowledge partner and global consulting firm AT Kearney as the Process
Approver.

National Retail Federation Awards

International Retailer for the Year 2007 – Pantaloon Retail (India) Ltd

 The National Retail Federation is the world’s largest retail trade

association with over 1.4 million members in the US and across the
world. Some of the past winners of the award include Metro AG
(Germany), Carrefour (France), Zara (Spain), Boticario (Brazil) and Ito
Yokado (Japan). The award was presented at the Retail’s Big Show held
in January 2007 in New York.
World Retail Congress Awards
Emerging Market Retailer of the Year 2007 – Pantaloon Retail (India) Ltd

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

2007 attracted over one thousand retail professionals from over sixty
countries. The awards were decided by a multinational Grand Jury.
Winners in other categories included Inditex, Mall of Emirates, Marks &
Spencer and IKEA.

Hewitt Best Employers 2007

Best Employers in India (Rank 14th) – Pantaloon Retail (India) Ltd

 Leading human resources consultancy, Hewitt Associates conducts an

annual survey of the best employers in India, as part of its global
initiative. It is based on CEO interview, People Practices Inventory and
Employee Opinion Surveys. Pantaloon Retail became the only retailer to
feature among the twenty-five best employers in India.

PC World Indian Website Awards

Best Indian Website In The Shopping Category - Futurebazaar.com

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

Indian websites in various categories based on use of technology for
delivering solutions, information being presented in an intuitive and
concise manner and overall experience aided by design.

Reader’s Digest Trusted Brands Platinum Awards

Trusted Brands Platinum Award (Supermarket Category) – Big Bazaar

 The Reader’s Digest awards are based on surveys done among consumers
by independent research agency, Nielsen Media Research. This is the
second consecutive time Big Bazaar has won this award.

2006
Retail Asia Pacific Top 500 Awards
Asia Pacific Best of the Best Retailers – Pantaloon Retail (India) Ltd
Best Retailer in India – Pantaloon Retail (India) Ltd

 The Retail Asia publication in association with EuroMonitor and KPMG

honours the best retailers in 14 countries across the Asia Pacific region.
The awards were presented in Singapore in October, 2006.

Asiamoney Awards
Best Managed Company in India (Mid-cap) – Pantaloon retail (India) Ltd.

 The Asiamoney publication conducts a poll among fund manages and

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

Ernst & Young Entrepreneur of the Year Award

Ernst & Young Entrepreneur of the Year (Services) – Kishore Biyani

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

jury comprising leading names in Indian business selected the winners
based on courage, creativity, passion, endurance and vision.

CNBC Indian Business Leaders Awards

The First Generation Entrepreneur of the Year – Kishore Biyani

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

are decided by a high profile jury, along with research partners - The
University of Chicago Graduate School of Business, Development
Dimensions International (DDI) and AC Neilson ORG MARG.
 Lakshmipat Singhania – IIM Lucknow National Leadership Awards
Young Business Leader – Kishore Biyani

The award recognizes and honors individuals who have contributed

consistently to the betterment of our country through their pursuit of
excellence. The awards were presented in New Delhi by the Prime
Minister Dr. Manmohan Singh in December, 2006.

Images Retail Awards

Best Value Retail Store – Big Bazaar
Best Retail Destination – Big Bazaar
Best Food & Grocery Store – Food Bazaar
Retail Face of the Year – Kishore Biyani

 The Images Retail Awards are decided through a nationwide consumer &
industry poll and nominations followed by performance assessment by
team of analysts and jury.

Readers’ Digest Awards

Platinum Trusted Brand Award - Big Bazaar

 The Reader’s Digest awards are based on surveys done among consumers
by independent research agency, Nielsen Media Research.

CNBC Awaaz Consumer Awards

Most Preferred Large Food & Grocery Supermarket – Big Bazaar

 Conducted in association with AC Nielsen-ORG Marg across 21 major

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

Reid & Taylor Awards for Retail Excellence

Retail Entrepreneur of the Year – Kishore Biyani
2005
Images Retail Awards 2005

 PRIL- Most Admired Retailer of the Year

 Food Bazaar- Retailer of the Year(Food and Grocery)
 Big Bazaar-Retailer of the Year(Value Retailing)
 Central-Retail Launch of the Year

Voted by Business Today magazine as one of the

 Top 20 Companies in India to watch in 2005

 India’s most investor-friendly companies in the top 75
 India’s Biggest wealth creators in the top 100

DAKS London

 PRIL- Brand Builder of the Year

2004
Images Retail Awards 2004

 PRIL- Most Admired Retailer of the Year

 Food Bazaar- Retailer of the Year(Food and Grocery)
  Big Bazaar-Retailer of the Year(Value Retailing)
 Central-Retail Launch of the Year

Reid & Taylor and DLF Awards

 PRIL - Retailer of the year

2003
Indian Express Award

 PRIL –Marketing Excellence and Excellence in Brand Building

Indusland Bank (India Brand Summit)

 PRIL - Excellence in Brand Building

CONSUMER BUYING BEHAVIOR

Understanding the buying behavior of the target market is the essential task
of marketing management under marketing concept. The consumer market
consists of all the individuals and households who buy or acquire good and
services for personal consumptions. The buying behavior tries to find out the
answers for the questions, who buys? How do they buy? Where do they buy?
Do they buy?

(A)FACTORS INFLUENCING CONSUMER BUYING BEHAVIOR

There are four major factors that influence the buying behavior such as cultural
factors, social factors, personal factors, and psychological factors.

i. CULTURAL FACTORS: Culture is the most fundamental determinant

of a person wants and behavior. Values, perceptions, preferences, and
behavior are the main variable under culture of an individual. Each
culture contains sub-culture like nationality, religious group, geographical
area, and linguistic divisions etc.
ii. SOCIAL FACTORS: A consumer behavior is also influenced by social
factors such as the consumer reference group family and social roles and
status.

iii. PERSONAL FACTORS: A buyer decision is also influenced by his or

personal characteristics, notably the buyers age, lifestyle, occupation,
economic circumstances etc.

PSYCHOLOGICAL FACTORS: a person buying choice is also influenced

by four major psychological factors such as motivation, perception, learning
belief and attitudes.

(B) BUYING DECISION PROCESS

It includes buying roles, types of buying and steps in buying process.

I. BUYING ROLE

The buying role could be classified into four parts. These are initiator,
influencer, decider and buyer.

II. TYPES OF BUYING BEHAVIOR

Consumer decision taking varies with the type of buying decision. There are
four types buying behavior such as Complex buying behavior, Habitual buying
behavior, Variety seeking buying behavior.

III. STAGES IN BUYING DECISION PROCESS

Here are five stages in buying decision process namely problem recognition
search, evaluation of alternatives purchase decision and past purchase behavior.

NEED RECOGNITION

The buying process starts with the buyer’s recognition of a problem of need.
The buyer senses a difference between his actual state and desired state.

INFORMATION SEARCH
There are different sources from where a consumer can gather information like
personal sources commercial sources, experimental sources.

EVALUATION OF ALTERNATIVES

After gathering information about different products the customer will be in a

fuss as to choose which product among the mainly alternatives consumer
usually evaluate the alternatives on traditional basis, on the basis of utility
function etc. from the many alternative consumers at last choose the best one for
him.

PURCHASE DECISION

A consumer who decides to execute purchase intention will be making up to

five purchase decisions.
POST PURCHASE BEHAVIOR

After purchasing the product and services the consumer will experience some
level of satisfaction or dissatisfaction with the product and services that will
influence subsequent behavior. If consumer is satisfied he may show the
probability of buying the product the next time, satisfied customer will say good
thing about the product, proving the statement that "satisfied customer is the
best

advertisement.” A dissatisfied customer may take some action against it. They
may try to reduce the dissonance by abandoning returning the product.

Understanding consumer needs and buying process is the foundation of any

company. By understanding how buyers go through problem recognition,
information search evaluation of alternatives, the purchase decision and post
purchase behavior marketers can pick up many clues as to how to meet buyers
need.
LITERATURE REVIEW

Marketing
Marketing is a societal process by which individuals and groups obtain what
they need and want through creating, offering and freely exchanging products
and services of value with others or other wise it is the process of planning and
executing the conception, pricing, promotion and distribution of ideas, goods,
services to create exchanges that satisfy individual and organizational goals.

Marketing Strategy

Marketing strategy is a set of objectives, policies and rules that leads the
company's marketing efforts. It is the marketing approach to accomplish the
bread objective of the marketing approach to accomplish the bread objective of
the marketing plan. The various process of marketing strategy are given below.

1. Selecting largest markets segmentation

2. Positioning

3. Product

4. Price

5. Place

6. Promotion

7. Research and development

8. Marketing research
Market segmentation and selecting target market

It is an effort to increase a company's precision marketing. The starting point of

any segmentation discussion is mass marketing. In mass marketing, the seller
engaged in the mass production, mass distribution and mass promotion of one
product for all buyers. Market segment consists of a large identifiable group
within a market with similar wants, purchasing power geographical location,
buying attitudes or buying habita. It is an approach midway between mass
marketing and individual marketing. Through this the choice of distribution
channels, and communicaton channels become much easier. The researchers try
to form segments by looking at consumer characteristics; geographic,
demographic, and psychographic. After segmenting the market then target
market selected.
2. Positioning: - The positioning is a creative exercise donw with an existing

product. the well known products generally hold a distinctive position in

consumer's minds. The positioning requires that every tangible aspect of

product, price, place and promotion must support the chosen positioning

strategy. Company should develop a unique selling proposition (USP) for each

brand and stick to it, PPL consistently promotes its DAP fertilizer by Higher

yield at lower cost. As companies increase the number of claims for their brand,

they risk disbelief and a loss of clear positioning. In general a company must

avoid four major positioning errors. Those are under positioning over

positioning, confused positioning and doubtful positioning.

3. Product: - A product is any offering that can satisfy a need or want. The
major types of basic offerings are goods, services, experiences, events, places,
properties, organizations, information and ideas. The company gives more
importance in quality, packaging, services etc. to satisfy the customers. The
products has it's life cycle. The product strategies are modified in different
stages of product life cycle.

4. Price: - It is the most important aspect in company's point of view. Price of

the product will be decided by the company according to the competitor's price.

5. Place: - This plays a major role in the entire marketing system. The company
emphasis on it's distribution network. Proper distribution network gives proper
availability of the product.

6. Promotion: - Promotion is the one of the major aspects in marketing

strategies. By adopting various promotional activities the company create
strong brand image. It also helps in increasing the brand awareness. It includes
advertising, sales promotioins and public relations etc.

7. Research and Development: - After testing, the new product manager must
develop a preliminary marketing strategy plan for introducing the new product
in to the market. The plan consists of three parts. The first part describes the
target market's size, structure and behavior. The second part out lines the
planned price, distribution strategy and marketing budget for the first year. The
third part of the development describes the long run sales and profit goals and
marketing mix strategy over time.
 MARKETING MIX

Target Market

Product Price Promotion Place

Product List price Sales promotion Channels

variety

Quality Discounts Advertising Coverage

Design Allowances Sales forces Assortments

Features Payment period Public relation Locations

Brand name Credit terms Direct marketing Inventory

Packaging Transport

Sizes

Services

Warrantie

returns
MARKETING STRATEGY

Marketing is not Euclidean geometry a fixed system of concept. Rather

marketing is one of the dynamic fields with in the management arena. The
market faces continually a new challenge everyday and companies must
respond to it positively. Therefore it is not surprising that new market idea keep
surfacing to meet new market place challenges.

The market process is applicable to more than goods and services.

Anything related to market including ideas, events, policies, prices and
personalities comes under market strategy. However it is important to
emphasize opportunity in the market through market strategy.

Following strategies adopted by the organization.

 A strong quality of the product and customer satisfaction:

Customers always believe in good quality product. in my survey I found that

in percentage term more people is quality conscious and not price conscious.
Customer satisfaction is very important part of the organization that at any cost
they have to fulfill.

 A growing relationship with customer and customer retention:

Nowadays a good relation with customer is very important for organization.

Sale is totally depending on the relation with the customers. Customer's
retention is also a major aspect for growing business. It means keep the old
customer and try to make new customer.

 Focus on competitors activity:

Every organization should must be careful about it's competitors step,

because they can disturb the growing sales process of the organization.

 A growing emphasis on global thinking and local marketing planning:

 Companies are increasing by pursuing market beyond their borders. When
they enter other countries they must follow the tradition of that country and also
they make plan for local market that which type of product has more demand
and how can it run in the market.

 Promotional Strategy

Under the market strategy promotional idea is very important. Organization

provides some schemes or rebates to retailers or consumers. They make
advertisement according to convenient of the people and the feature of the
product.

So on the basis of marketing strategy a organization runs in the market. It is

several types of which makes helpful to increase sales and turnover of the
organization.
RESEARCH METHODOLOGY:

The research for the study comprised of:

A. SECONDARY RESEARCH:
A comprehensive secondary research was carried out to find out the
various factors that affect the buying decisions of the consumers in a
department store. The main objective of this study was to analyze how
much significant effect each of these factors has on conversion rate of a
store and also their influence on the buying decisions of the consumers.

It consisted of:

-Searching secondary data sources, which included books, journals,

magazines, Internet, library, etc.
-Research and analysis of the secondary data collected from the store to
determine the trends.
B. PRIMARY RESEARCH

The research was carried out in two stages:

1. Tracking the customers’ movements in the store.
The movement of around 100 customers’ in the store was tracked on the
store map (obtained form the store). This was carried out in a structured,
disguised manner to understand and evaluate:
 The high, medium and low traffic zones in the store.
 The purchases and conversion rate of each section.
 Customers’ movement in the store and the differences in the behaviors of
men/women/ kids and their different shopping preferences.
 The retail settings that affect the buying decisions.

2. Customer survey through a structured, non-disguised questionnaire.

The questionnaire was prepared on the basis of in-dept interviews with
the store customers and management staff. It was test marketed on a few
consumers and then the final draft was made.

SAMPLING PLAN
PLAN::

 Non Probability Convenience sampling method was used to select the

customers.
 The sample size was 100, a number derived judgmentally.
 Analytical tools used: SPSS Software and Microsoft Excel.

2.4a LIMITATIONS OF THE SURVEY:

  The research and analysis of the project was conducted over a period of
three months. The scope of this project has therefore been limited by the
time available for the same.
 The study was conducted on the floor and hence was limited to the
customers visiting the store.
 Non Probability Convenience Sampling, which has been used in the
research, has its own sets of limitations, though an effort was made to be
as rational as possible while pursuing this research.
 All the limitations and disadvantages that attach themselves to any effort
in the collection, tabulation and analysis of the primary data apply to this
project as well. This would include the selection error, the measurement
error, interviewer effect, non- response rate, and data login error of the
analyst.

2.4b SCOPE OF THE STUDY

 The study is limited to the customers visiting the store from the entire
NCR region.
 The study is also limited to a particular store only.
SECONDARY RESEARCH
3.1 SCIENCE OF SHOPPING

The science of shopping is a hybrid discipline, part physical science and part
social science and only part science at all because it is also an art. It is a
practical field concerned with providing information that can improve the
retailer's edge and the odds of making a wrong decision. Much of the value of
the science lies in the ability to go beyond collecting data and making educated
guesses about what it means and how best to respond.

1
“A recent study discovered that 75-80 per cent of shoppers often leave a
store without any purchases due to the inability to find products or
differentiate between them.” Here comes the two-fold challenge. How to
connect with the customer and at the same time grow in a competitive
marketplace crowded with similarities at every level? Since the mass market
and universal audience are things of the past, traditional advertising no longer
works to convey a brand's image with a difference. In search for growth,
companies must think beyond conventional avenues. For most, growth is not
always about square footage expansion but making the most of what they
already have.

The very concept of conversion rate implies that shoppers need to be

transformed into buyers, i.e. when potential customer becomes an actual
customer.  Conversion rates vary widely depending on what kind of store or
product we're talking about. In some sections of the supermarket, conversion
rate is probably 100% (dairy or toilet paper). In an art gallery full of paintings,

1
probably the conversion will be less than 1%. Conversion rate measures what
you make of what you have - it shows how well or how poorly the entire
enterprise is functioning.
3.2 CUSTOMER SERVICE

For a retailer, it costs more to get new customers than to keep the ones you
have. Also the longer you can keep a customer, the more valuable that
customer becomes. Studies done by consultants such as McKinsey have shown
that repeat customers generate over twice as much gross income than new
customers.

2
"Firms that only understand buyer behavior may do a good job of selling
existing products within existing channels of distribution. But firms that
understand consumption behaviors are able to create value with new or
improved products and distribution channels.”

For example, if an apparel retailer wants to find out what types of clothing its
typical customers really want to buy, it might want to get into consumers'
closets, literally. Enlightened retailers might ask women to show them how they
put together their wardrobes -- how they use the fashions they own, which may
span several years. From such an exercise, retailers can learn how consumers
mix and match items, which items they choose to keep in their closets for many
years, and why.

However, many organizations do not allocate the time, or the money, to educate
and train their employees to deliver the service customers want. Often, the
reason is that those organizations don't realize how important customer service
is to their bottom lines.

Importance of a good customer service:

2
  Educating employees to provide quality service works to an
organization's advantage in many ways. Of primary importance is that it
improves customer retention. By finding out what services customers
want -- and then delivering them -- businesses can develop and nurture a
strong, loyal customer base.
 Loyal customers are not only important, they are essential. 3”Research
shows 65 percent of a typical organization's business comes from
current loyal customers.”
Besides making up a base of customers who continue to purchase a
company's products or services, those loyal customers help drive the
company's business by delivering the most powerful and cheapest form
of advertising available: word of mouth. A strong customer base is the
most credible source to potential customers, spreading the reputation of the
business, free of charge, and attracting new customers.

 4As a customer's relationship with [a] company lengthens, profits rise.

“Customer defections have a surprisingly powerful impact on the
bottom line. It is common for a business to lose 15 to 20 percent of its
customers each year. When defections are cut in half, the average
growth rate more than doubles. A five percent change in rate of
retention swings profit increases from 25 percent all the way to 100
percent.”

 Bad service has another pitfall: It causes employee turnover. Studies

have shown that employee turnover was inversely proportional to
employee perceptions of the quality of service provided by their

3
4
 employers. When service is perceived as bad, not only do consumers not
like to patronize the company, but employees don't like to work for it.

The highest turnover rates are associated with companies possessing the lowest
employee ratings of service quality. That finding was confirmed when Sears
surveyed customers in 771 of its stores. In stores that received relatively high
customer service ratings, 54 percent of the sales force turned over in a year
compared with 83 percent at stores with low customer service scores.

 How we treat customers throughout the year when they are

purchasing or even when they are returning items, sets the stage for
their future business. Contradictions in consistency will drive them to
the competition. You see the gift at the holidays, is the gift our customers
give us by coming back to show how much they have appreciated us all
year long!

 Employees are not bad performers, just poorly trained. In order to

have consistent service, employees must have consistent training on a
continual basis. What's more is that they must be held accountable for
their performance on a continual basis, not just at a once a year review
time. Lastly, employees need to be rewarded consistently so that they
realize their importance in the company. Without them, there would be no
business, now would there?
 Treating Customers Well:
We make it difficult for them to buy and then we make it more difficult
for them to bring it back and we wonder why they choose to shop
elsewhere?
 Train the employees to have patience to work within store policy and to do it
positively while showing how proud they are of the store and its products.

PANTALOONS: Fashion by Pantaloons

Pantaloons is the company's departmental store and part of life style retail
format. In fact, PRIL took its very initial steps in the retail journey by setting up
the first Pantaloons store in Kolkata in 1997. In a short time Pantaloons has
been able to carve a special place for it self in the hearts and minds of the
aspirational Indian customers. The Stores have entire range of Menswear,
Womenswear, Kidswear, Activewear, Accessories, Cosmetics, Fragrances,
Homeware, Jewellery, Toys, Books, Music, Stationery, Gift, Novelties, etc.

With 16 stores across the country and an ever-increasing stable of private

brands, Pantaloons - in the coming years is poised to become a leading fashion
trendsetter.

Growth through private labels: A striking characteristic of Pantaloons has been

the strength of its private label programme. In Pantaloons 70% of apparel sales
come from own labels. John Miller, Ajile. Scottsvile, Lombard, Annabelle,
Honey, Bare are some of the successful brands created by the company.

Manufacturing: There is a drive for backward integration, into manufacturing.

Pantaloons is a manufacturer retailer. Manufacturing helps the company plan
the products better depending on what is selling at the stores and also helps
better margin. The company has trouser manufacturing unit in Tarapur and a
denim plant in Goregaon, Mumbai.
Customer Relationship Management (CRM)

CRM is a management approach that seeks to create, develop and enhance

relationships with carefully targeted customers to maximize customer value,
corporate profitability and shareholder value. CRM leverages information
technology (IT) to implement relationship-marketing strategies. Already
customers are getting actively involved, either directly or indirectly with
production processes. They make suggestions, they ask for smaller, brighter,
easier-to-use products.

CRM is not a tool that is specific to any industry type, so there is no one single
definition of Customer Relationship Management. It is up to the organization to
formulate one for itself in order to achieve the CRM goals that it sets for itself.
Companies that have adopted CRM regard every customer as an individual with
specific needs and tailor their services accordingly. Information Technology
comes into the picture to help manage Customer relationships in an organized
way.

On an average a company has only a 5 to 20 percent probability of making a

successful sale to a new prospect but has a 60 to 70 percent probability of
selling again to active customers. It would be wiser to invest in encouraging an
existing customer to purchase again. Companies that followed up lapsed cases
experienced 20 to 40 percent successful sales. Without a doubt customer
retention is vital to every company's long-term profitability and success and
CRM, through target selling and customer loyalty programs, can help to
motivate the best customers and to remain loyal as a method of increasing
revenues internally.

Rising customer expectations have stiffened the competition among companies

to improve their customer support services. Today’s customer has access to the
latest technological devices that give him instant information, allows him to
make instant transactions, buy, sell or transfer money, he has access to it all
over his palm top, PDA, mobile phone or desktop. Today’s customer is
knowledgeable, he knows what he wants and the Internet is a powerful tool in
his hands.
More than ever, customers today have an important role to play in the product
lifecycle. Customers are continually pressing for improved support services in
terms of product coverage, business-ease, response-time and price (or at least
value-for-money!).” With a wide variety of services available at competitive
prices and easily accessible at the click of a button, improved customer services
are becoming the need of the day. Customers are driving companies to migrate
from being purely product-centric to purely customer-centric, taking care of all
customer requirements even before they are demanded.

From current customer trends, it is easy to define the future customer. The
volume of information available via the Internet will make the future customer a
knowledgeable one. As more customers and businesses go online, the Internet
will foster a global community that communicates at real-time. Customers will
have access to a wider variety of products and prices to choose from. To stay
ahead of competition, companies will have to anticipate customer needs even
before a need arises. As more and more women began to drive two wheelers in
India, the smarter manufacturers realized that one factor that might hold a sari-
clad woman back, would be having to kick-start her bike. Along came the self-
starter button and presto, a surge of women two wheeler drivers! The success of
companies will depend on how well they are able to predict customer behavior,
anticipate requirements and provide for them. The future customer will have a
larger stake in the company’s project plans, his input will have value and his
feedback will be consequential to the development of products or the way a
service is delivered. This implies a significant alteration in the supply chains
that we see today.
Figure

The CRM strategy should include:

(a) Operational CRM: Automating interaction with the customers and sales
force, and

(b) Analytical CRM: Sophisticated analysis of the customer data generated by

operational CRM and other sources like POS (Point of Sales) transactions, web
site transactions, and third-party data providers.

A typical retail organization has a huge customer base and often customer's
needs are fairly differentiated. Without the means to analyze voluminous
customer data, CRM Strategy is bound to be a failure. Hence, Analytical CRM
forms the core of a retailer's customer relationship strategy. Marketing and sales
functions are the primary beneficiaries of Analytical CRM and the

Main touch points from where the insights gained about the customer is
absorbed in the Organization. Analytical CRM uses the key business
intelligence tools like data warehousing, data mining, and OLAP to present a
unified view of the customer.

Following are some of the uses of Analytical CRM In Retailing

Customer Segmentation

Customer segmentation is a vital ingredient in a retail organization's marketing

recipe. It can offer insights into how different segments respond to shifts in
demographics, fashions and trends. For example it can help classify customers
in the following segments

1) Customers who respond to new promotions

2) Customers who respond to new product launch

3) Customers who respond to discounts

4) Customers who show propensity to purchase specific products

Campaign/ Promotion Effectiveness Analysis

Once a campaign is launched its effectiveness can be studied across different

media and in terms of costs and benefits; this greatly helps in understanding
what goes into a successful marketing campaign.

Campaign/ promotion effectiveness analysis can answer questions like:

Which media channels have been most successful in the past for various
campaigns?

Which geographic locations responded well to a particular campaign?

What were the relative costs and benefits of this campaign?

Which customer segments responded to the campaign?

Customer Lifetime Value

Not all customers are equally profitable. At the same time customers who are

not very profitable today may have the potential of being profitable in future.

Hence it is absolutely essential to identify customers with high lifetime value;

the idea is to establish long-term relations with these customers. The basic

methodology used to calculate customer lifetime value is - deduct the cost of

servicing a customer from the expected future revenue generated by the

customer, add to this the net value of new customers referred by this customer,

and discount the result for the duration of the relationship. Though this sounds

easy, there are a number of subjective variables like overall duration of the

customer's relation with the retailer, gap between intermediate cash flows, and

discount rate. We suggest data mining tools should be used to develop

customized models for calculating customer lifetime value.

Customer Loyalty Analysis

It is more economical to retain an existing customer than to acquire a new one.

To develop effective customer retention programs it is vital to analyze the
reasons for customer attrition. Business Intelligence helps in understanding
customer attrition with respect to various factors influencing a customer and at
times one can drill down to individual transactions, which might have resulted
in the change of loyalty.

Cross Selling

Retailers use the vast amount of customer information available with them to
cross sell other products at the time of purchase. This effort is largely based on
the tastes of a particular customer, which can be analyzed using BI tools based
on previous purchases. Retailers can also 'up sell' - sell more profitable products
- to the customer at the time of contact.

Product Pricing

Pricing is one of the most crucial marketing decisions taken by retailers. Often
an increase in price of a product can result in lower sales and customer adoption
of replacement products. Using data warehousing and data mining, retailers can
develop sophisticated price models for different products, which can establish
price - sales relationships for the product and how changes in prices affect the
sales of other products.

Target Marketing

Retailers can optimize the overall marketing and promotion effort by targeting
campaigns to specific customers or groups of customers. Target marketing can
be based on a very simple analysis of the buying habits of the customer or the
customer group; but increasingly data mining tools are being used to define
specific customer segments that are likely to respond to particular types of
campaigns.
Figure
Analysis of Questionnaire

Most
Where do you like to shop? of
the

15%
46%
38%

Malls Markets Others

respondents go to near by areas to shop. The malls in Mumbai where weekend

rush is a major pinpoint. The others are markets like Crawford , Heera panna.
 Which Shopping store's do you like to shop?

Life style
6%6% Pantaloon
12
% Shoppers Stop
36
% Westside
40
% Others

The preference towards the area of Mall holds the key to where people
frequently shop. The success of a store is concentrated towards the area of the
place and the brand value it holds in terms of the changing consumer lifestyles.
The average walk ins are high in Shoppers stop because of the wholesome
entertainment in the location of the store. I believe if Pantaloon as a store can
look for opportunities where there is wholesome entertainment along with the
Mall E.g. Forum in Kolkotta it would surely add to their profits.

Are you a member of any Shopping

Store Loyalty Program The

31 YES
44 NO

Loyalty club members are less because of the number of people who frequently
shop at the same store in a particular area. The respondents I asked
questionnaire vary from places in Pantaloon, Shoppers Stop, Internet and
marketing my mailers.
 How did you come to know about the loyalty
club?
As
you
30 22
0 3 can
18
20 10
0 see
10 033 70
2 1 2 0
0
Ebony Pantaloon Shoppers Westside Others
Stop

Internet In store Friends

majority of the loyalty programs members are through In store purchases. The
loyalty clubs in India are at initial stage of getting the customers. There are
similar programs of every organized retailer for membership. The criteria for
Pantaloon are higher because of majority of respondent from being collected
from that area.
How did you come to know about the
loyalty club?

1
0.5
0 0 0 0 0
0
0 0 0 0 0

#REF! #REF! #REF!

Which shopping club are you a

member?

0 0 0 0 0
 Rate Your Prefered Club

0 0 0 0 0

Most of the people who frequently shop at the same stores are members of two
or more loyalty club programs. Most of the common is being Shoppers Stop and
Pantaloon. Shoppers Stop is most preferred loyalty club with members getting
updates and knows how about the store regularly. Pantaloon loyalty program
isn’t followed in terms of its CRM processes unlike Shoppers Stop. Westside
stores follow up is very punctual in terms of their reminders to their selected
customers.
 What offers do you get by those clubs?

#REF! #REF! #REF! #REF!

1
0.8
0.6
0.4
0.2
0
0 0 0 0 0

All the loyalty programs provide similar offers. They invite you to different
events depending upon your membership relating to the card you hold.
 25Pantaloon Loyalty club in terms of
Sense of
20services bonding with The
staff respondents
15 Reward who were
20
Value Added members of
Structure
15
10 services of the pantaloon
Promotion loyalty club
store
10 Offers were 24.
5
5 Schemes
The graph
Other clearly
0 privileges
preferences:-
r t shows that
o g ee k k d d n t Parking
Po
o
e reraag OO
Goooo elle llen Redemption the staff of
preferences
G xc ce
AAvv options pantaloon is
EE x very good
and helpful
in terms of
the services. Unlike most of the shoppers people aren’t satisfied enough with
the kind of reward structure the company provides. But, the best part of the
people is the kind of promotion offers differs from the rivals. I think this can be
a Unique Selling Preposition for pantaloon stores all over India.

Why aren't you a part of any shopping Most

store loyalty program? of the
time
the
Minimum
Requirements

Don’t shop
22 frequently at the
% 44 same store
%
34
Not interested
%
shoppers aren’t interested in any sort of loyalty program because it doesn’t add
to much to their value. The criteria for the shopping stores to have a loyalty
program is to increase the frequent purchases of the store but, somehow it isn’t
able to cater the services of the respondent who is at an age where he or she is
doing her graduation or about to start his or her career.
 Would you consider being a part of a loyalty
club? Ratio of Respondent

YES NO Male Female

27
48
32%
68%

Out of
the 31

respondents most of the people aren’t willing to be a member of any loyalty

club as such probably because of shopping at different places in different areas.
One of the mains reason being said by few customers is they don’t add to the
overall value to their purchases.

Loyalty Club Members

SEC Classification Total As
you
A1
can
A1
40

23 3440
20
20
20 19
B2 140 0 27 A2
B2 0 A2

B1 B1
clearly see from the above graphs the loyalty club members are usually high-
end A1 customers who frequently shop at a particular place. Most of the people
are working executives and businessmen who find ambience and latest fashions
the key dominants to shop and enroll for the loyalty program.

Findings from Questionnaire

1) People respond better to Internet mailers then courier. I think that this
suggests the loyalty club members are technosavy so, there is a need for all
the loyalty clubs to start their online ventures in relation to their CRM
process.
2) Most of the organized retailers in India are offering similar services on
customer loyalty programs. From a customer’s stand he or she would only be
differentiated by the brand name of the company.
3) Shoppers Stop is the number one retailer whose Customer loyalty program is
very well integrated compared to the other retailers.
4) Pantaloon as a store appeals more to the working class and family oriented
people especially in Gurgoan.
5) Lifestyle is at a initial phase of launching the Customer loyalty program.
6) The average number of walks ins in a store is generally on the place of the
mall.
7) The CRM strategies of all the organized retailers are still very less integrated
in terms of the international players like Wal- Mart and other multi chain
outlets in the World.
8) I think the changing consumer patterns are not tapped by the retailers for the
Customer loyalty programs
9) Banks provide cash back credit card in form of an extended discount to
various organized retail outlets.
10)The Reward structure needs a revision to tap in more customers so that the
profit margins can be increased
11)Overall, the companies should start looking for means to attract people
coming in at the store in the form of extended shopping hours, double points on
off days etc.
12)The pantaloon store should have a small area specified to the entertainment
segment inside the store in the form of contest etc.
BIBLIOGRAPHY
 BOOKS
AUTHOR PHILIP KOTLER

TITLE MARKETING MANAGEMENT

PLACE OF PRENTICE HALL OF INDIA LTD.

PUBLICATION NEW DELHI

DATE OF PUBLICATION SEPTEMBER

NUMBER OF PAGES 31-50

MAGAZINE
AUTHOR MURTHY E.N.

TITLE ANALYST

DATE OF ISSUE JULY 2006

PAGE NUMBER 41-46

- www.pantaloon.com
INTERNET
- www.amazon.com
- www.economictimes.com

APPENDIX

QUESTIONAIEER

(1) NAME :
(2) AGE :
(3) ADERSS:
(4) GENDER:

(5) How often do you buy apparels(clothes) ?

- Once a week
- Once in 15 days
- Once a month
- Once every three month
- Once every 6 month
- Once a Year
(6) From where do you buy your apparels(clothes) ?
 Pram id
 Central ’s
 Shopper’s
 Mega mart
(7) How much do you normally spend on apparels(cloths)
bought
from shopping mall in a single shopping

 Less than 500

 Between 500 to 1000
 Between 1000 to 2000
 Between 2000 to 5000
 More than 5000
 Not applicable
(8) Do you have ‘Green Card ‘?
 Yes
 No
(9) Are you interested to be a part of ‘Green Card ’?
 Yes
 No