Sales- Competitive Advantage on Pantaloons

Presented by: VaishakM.R Maheswar A.T Prameela Buruga Moen Ahmed Karthik Suraj

History
Incorporated in October 1987, Pantaloons ranks amongst the top five retailers in India. Pantaloon Retail (India) Limited (PRIL) was incorporated on October 12, 1987 as Man's Wear Private Limited under the stewardship of Mr. Kishore Biyani. The Company was converted into a public limited company on September 20, 1991 and on September 25, 1992 the name was changed to Pantaloon Fashions (India) Limited and the same time it went public and today it has approximately 14,000 shareholders. It later changed its name to Pantaloon Retail (India) Limited on 7th July 1999. From a humble beginning in 1987, Pantaloon as today evolved as a leading manufacturer-retailer in the country with 12 Pantaloon stores and 6 hypermarkets operational across the country. It has been a remarkable journey for PRIL as its evolved from a manufacturing to a completely integrated player controlling the entire value chain. Future group is Indias leading business group that caters into the united Indian consumption space. Lead by Kishore Biyani, the future group operates through 6 verticals: Retail, capital, Brands, Space, Media & Logistics. Future groups vision is to deliver everything, every time to every Indian consumer in the most profitable manner.

VISION AND MISSION: Customer assistance par excellence With Pantaloons, the company believes in providing assistance par excellence customers, despite . COMPANY VISION : Pantaloon has been a pioneer in introducing the concept of mega retail stores i called 'Pantaloons' for the entire family. In an extremely price-sensitive mar] India, the Pantaloons chain of stores has been successful in maintain! equilibrium between quality and price. Products that offer real value for money Through its chain of Pantaloon stores, the Company has brought to the Indian an ambiance conductive for shopping, and offers customer tremendous convenience to shop. In addition, the superstore also offers a varied range of brands encompass every aspect of modern dressing in India. Caters to the entire household To complete the idea of a family store, besides garments, Pantaloons also household items, home furnishings, books, infant necessities, toys, music, accessories, etc. the stores being self-service stores. The company aims to value to the customers through various unique avenues. Providing service of customized suits within 48 hours One of the services being tested presently by Pantaloons is unique customized tailoring for trousers, blazers and suits, delivered to the customer within 48 hour. No question asked exchange policy Another highlight of the Pantaloons service is "No question asked" exchange which allows customers to exchange products within 30 days of buying them, v giving any reason.

CORPORATE MISSION : "We share the vision and belief that by improving our performance through innovative spirit and dedication, we shall serve our customers and stakeholders satisfactorily." Blending Strategies To targeting higher share in customer shopping basket the Company has blending strategies. By entering into multiple formats - departmental stop hypermarkets - PRIL has effectively blended the multiple strategies and there has been successful in addressing a high share of the customer's basket. Increase share has been primarily on account of entering new product categories. 'Family focus' rather than 'individual focus' PRIL strategy is to target family as its customer rather than individual. With audience having social ethics and culture deeply rooted in them addressing the pulls more customers into the store. Moreover, it ensures repeat purchase strategy of the company is reflected in all its communications and product offerings. Paradigm shift in "rapid roll-out' The company has aggressive grow plan to achieve scale of economy ai leadership position in this evolving industry. PRIL's ability to evolve from format into large format retail stores is well proven. With aggressive growth p. company has identify many locations across the company to roll out stores future. The company plans to increase the retail space under control from 2.0C FY0102 to more than 1 million square feet over the next 3 years to emerge 'Godzilla' of the Indian retail industry.

Competition :
Westside Shoppers Stop Lifestyle Wills Lifestyle Levis

Competition

Last Price

Market Cap.
(Rs. cr.)

Sales
Turnover

Net Profit

Total Assets

Pantaloon Ret

349.70

7,590.24

5,934.37

179.56

4,142.47

Shoppers Stop

726.30

2,681.53

1,408.06

50.23

500.31

918.90

2,662.15

587.48

40.22

891.03

REI Six Ten

64.05

919.99

690.90

26.44

108.51

Kewal Kiran

588.70

725.57

176.05

32.51

190.97

Provogue

61.20

699.87

359.73

29.46

918.99

Koutons Retail

55.60

169.87

1,206.05

80.24

1,164.62

Brandhouse

29.90

160.27

657.46

16.21

312.41

Cantabil Retail

60.15

98.21

92.64

Pantaloon (DVR)

293.10

0.00

COMPETITORS : Shoppers stop Reliance retail

RPG group- Spencer

Bharti-walmart Tata Tesco- star bazaar Aditya Birlas-More.

STRATEGIES, TRENDS AND OPPORTUNITIES

Retailing in India is gradually inching its way toward becoming the next boom industry. The whole concept of shopping has altered in terms of format and consumer buying behavior, ushering in a revolution in shopping in India. Modern retail has entered India as seen in sprawling shopping centers, multi-storied malls and huge complexes offer shopping, entertainment and food all under one roof. The Indian retailing sector is at an inflexion point where the growth of organized retailing and growth in the consumption by the Indian population is going to take a higher growth trajectory. The Indian population is witnessing a significant change in its demographics. A large young working population with median age of 24 years, nuclear families in urban areas, along with increasing working women population and emerging opportunities in the services sector are going to be the key growth drivers of the organized retail sector in India.

Marketing Mix Process Physical Product Evidence 7 P Product Price Place Promotion:
Product Mix: Television sets Footwear Bazaar Living Room Kids Wear Mens wear Washing Machines Beauty Care Bed Room furniture Toy Bazaar Bakery Refrigerator Novaras Jewellery Stationary Ladies wear Personal Care Food bazaar Dining Rooms Child Care Mobile bazaar Kids Room Future Money Microwaves Been Bags Future Generally Paintings Small Appliances Decorative Items Laptops Computer Accessories Kitchen Appliances.

Price Mix:

Value Pricing (EDLP) Promotional Pricing Low interest pricing. Psychological discounting Special event pricing(Vara Mahalakshmi offer, 8th Anniversary celebration ) Differentiated Pricing Time Pricing Psychological Pricing.
Place Mix:

Place INDIA, Number of out let- 104. Located at main city-tier I & tier city-II, Area-10,000sq ft- 120000 sq.ft, High street area of city..
Promotion Mix: Saal ke Sabse Saste 3 Din (Wednesday, Saturday and Sunday). Future card (discount) Advertising (print ads, TV ads, radio) Exchange offer Weekend discounts Point of purchase promotions

DEPARTMENT STORES / LINE OF BUSINESS

Cosmos mall operates in a four floored building and the four floors are divided into various sections called Department Stores. The various department stores are:
1. FOOD BAZAAR 2. APPARELS 3.GENERAL MERCHANDISE 4.ELECTRONICS BAZAAR 5.MOBILE BAZAAR 6.FURNITURE BAZAAR

7. PLASTIC - UTENSILS CROCKERY (PUC)

8.DEPOT: 9. NEW BUSINESS DEVELOPMENT (NBD) 10. STAPLES

LOGISTICS DEPARTMENT

The inventory levels of the store have to be maintained to avoid any stock outs. Logistics department is mainly concerned with the stock management in the store. They maintain the supply flow of required stock. The focus of logistic department in on removing inefficient in fulfilling customer demands in real time. Role of Logistics departmentSafe and reliable transport in as much low price as possible. Constant contact with distribution teams(trucks, trains..) and track where the material is. Partnership with transportation firm so that cost and transport can be shared if the shipment does not occupy the whole truck space. Stock Flow in Cosmos mall: Stock indenting: It is the process where the stock on the floor and stock in hand is checked and if there is any shortage the stock is demanded from the category team at the zonal office through mail. Peak season demand has to be taken into consideration as well. Software Used in Logistic Department: SAP Technology.

Strength

Pioneer in the industry, largest market share and capitalization.

Reputation for value for money(Competitive pricing), convenience and a wide range of products all in one store

Presence in major cities

Highly Strategic human resource management and development. It invests time and money in training people, and retaining them. Most trusted and respected brand by the consumers Being financially strong helps pantaloons retail India deal with any problems, ride any dip in profits and out perform their rivals Development and Innovation are high at Pantaloons India with regards to it products and consumer preferences and lifestyle changes which keep its ahead of it competitors.

Weakness
High cost of operation due to large fixed costs. Very thin margin.

High attrition rate of employees.

Enable to provide enough parking space for its customers. Lacks in branded products

Opportunities

Huge untapped market

(The Indian middle class is already 30 Crore & is projected to grow to over 60 Crore by 2012 making India one of the largest consumer markets of the world)

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 2012.
To take over, merge with, or form strategic alliances with other global retailers, focusing on specific markets New locations and store types offer PRIL opportunities to exploit market development.(Diversification into insurance , property, and variety of products and stores) Opportunities exist for PRIL to continue with its current strategy of large, super centers.

Rural Retailing

Threats

Being number one means that you are the target of competition.(Extra competition and new competitors entering the market could unsteady pantaloons retail India)
A slow economy or financial slowdown could have a major impact on pantaloons retail India business and profits. Consumer lifestyle changes could lead to less of a demand for pantaloons retail India products/services Price wars between competitors, price cuts and so on could damage profits for pantaloons retail India. The actions of a competitor could be a major threat against pantaloons retail India, for instance, if they bring in new technology or increase their workforce to meet demand 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. If unorganized retailers are put together, they are parallel to a large supermarket with little overheads, high degree of flexibility in merchandise, display, prices and turnover.

Competitive Advantage

When a firm sustains profits that exceed the average for its industry, the firm is said to possess a competitive advantage over its rivals. The goal of much of business strategy is to achieve a sustainable competitive advantage.
A competitive advantage exists when the firm is able to deliver the same benefits as competitors but at a lower cost (cost advantage), or deliver benefits that exceed those of competing products (differentiation advantage). Thus, a competitive advantage enables the firm to create superior value for its customers and superior profits for itself. Cost and differentiation advantages are known as positional advantages since they describe the firm's position in the industry as a leader in either cost or differentiation. A resource-based view emphasizes that a firm utilizes its resources and capabilities to create a competitive advantage that ultimately results in superior value creation.

CONCLUSION The overall perception of the PANTALOONS store is good except in some areas like billing system during the weekends, proper arrangements of the products and parking facility. The target market for the PANTALOONS is the growing middle class segment. Layout of the store provides comfort and convenience to the customer. The prices are affordable with a good variety of the products available under one roof. Customers responded positively to the promotions offered at the store, with the sales during the weekends and festive seasons picking up nicely. The quality of the products offered at the store was also very well accepted by the customers. Reasonable price of the products at the store was the driving factor for the customers to shop in the store. Most of the customers found it convenient to visit the store once in a week.

Thank You