Retail sector

 Retail contributes to 10% of India’s Gross Domestic

Product and provides employment to 8% of India’s
working population.

 Share of organized retail is projected to grow to USD

43.8 billion out of the total retail sector revenues
projected at USD 460.6 billion in 2010-11.

 Modern retailing outlets are increasingly matching up

to global standards and witnessing intense competition
Pantaloons Retail Ltd.
India’s leading retailer that operates
multiple retail formats in both the value
and lifestyle segment of the Indian
consumer market.

Operates over 16 million square feet of

retail space, has over 1000 stores across
73 cities in India and employs over
30,000 people.
Generic Competitive Strategy
Competitive Priorities-The edge
Pantaloons Retail India Ltd. Competed on
Cost

Quality

Time

Flexibility
Cost
1. Big Bazaar- Value Retailing
2. In House manufacturing – Reduction in cost
3. Movement of transport within the city was
handled through fleet of owned vehicles.

Quality
High performance design
- excellent customer service- free home delivery,
providing fresh food (Live services), apparels
(foreign Brands), quality zones.
Time
Fast Delivery
Central Warehouse System, Factory Outlets, less
intermediaries in supply chain ( Perishable and
Non Perishable Products).

Flexibility
Sales executives were empowered to run their
respective departments like ‘small business units’.
Managing change- meeting the shifting consumer
tastes and preferences.
Inverse Pyramid Structure

Sales and support function

Departmental Managers

Store Mngrs,
Merchandisers,
Regional Mngrs,
general Mngrs
BOARD
 1987 1987-1997

Selling branded garments

under brand name pantloon, To have own retail outlets
john miller etc.

Pantaloons was launched in

Entered manufacturing
1997

To cater to the brand

conscious customers Price & product variety
1997-2001 2001-2003
2003-2005 2005 onwards
THREE STAGE PROCESS

1 STRATEGY FORMULATION
Vision
FutureGroup shall deliver Everything,
Everywhere, Everytime for Every Indian
Consumer in the most profitable manner.
Mission
 We share the vision and belief that our customers and
stakeholders shall be served only by creating and executing
future scenarios in the consumption space leading to
economic development.
 We will be the trendsetters in evolving delivery formats,
creating retail realty, making consumption affordable for all
customer segments – for classes and for masses.
 We shall infuse Indian brands with confidence and renewed
ambition.
 We shall be efficient, cost- conscious and committed to
quality in whatever we do.
 We shall ensure that our positive attitude, sincerity, humility
and united determination shall be the driving force to make us
successful.
SWOT Analysis
Strengths:
Pioneer in the industry
Offers wide range of products, all in one
store
Presence in major cities
Development and innovation with regards
to products, consumer preferences and
lifestyle changes.
Weaknesses:
Faces competition in each business line

Opportunity:
Untapped international market.
Growth expected in organised retail
sector
Diversification
Rural retailing
Threats:
Financial slowdown
Consumer choice differs.
Price wars
Shopping culture: More window
shopping.
 2 STRATEGY
IMPLEMENTATION
 ANNUAL OBJECTIVES:
 To set up new retail outlets

 POLICIES:
 upgrading & modernization of the existing stores by June 2007.
 Contemplating the organizational strengthening.

 EMPLOYEE MOTIVATION:
 Authority to work as small business owners.
 Performance based compensation.
 Pay for performance & promote for potential

 RESOURSE ALLOCATION:
 Category performance
 Dispatch of goods in right quantities at right time
3 STRATEGY EVALUATION
 INTERNAL REVIEW:
 Internal quality control measures
 Quality heads at zonal level
 Prevent quality defects.

 EXTERNAL REVIEW:
 Evaluation by partners
 Financial analysis

 PERFORMANCE MEASUREMENT:
 Target has been met
 Customer Satisfaction

 CORRECTIVE ACTION:
 Training
 Upgradation