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PROJECT REPORT ON COMPETITOR ANALYSIS AT

SUBMITTED BY: UNDER THE GUIDANCE OF:

MUDIT TOMAR PROF.PRIYA

SEC-B FACULTY OF FINANCE

PGDM (2008-10) (MANAGEMENT DEPT.)


ACKNOWLEDGEMENT

A research project in never a unilateral effort through the student takes the entire credit. In
preparation of a report of research there is always a team of person who contributes in one or
more ways.

I take this opportunity to thanks all those people that helped me and guided me during my
summer training.

First of all I acknowledge a deep indepetences to the management of pantaloons Retail India Ltd.
who kindly permitted me to undertake the training in their organization.

I would like to place on my sincere gratitude towards my project guide Mr. Pratap shiromali for
his enormous support and help as and required. I am thankful for him for their valuable advises
and guidance without which the project would have not been in the form as it is.

I am very thankful to Prof. Priya who guided me to prepare this project report.

I would also like to give my special thanks to those respondents who have given their valuable
time to fill in the questionnaires patiently and informatively on a sound base.

I would also like to extend my special thanks to Mr. Sunny Yadav (Store
Manager),Ms.Nirupma (H.R.Mnager}, Ms.Atika Mehra (Department Manager), Mr.
Divesh(Department Manager), Mr.Savant Soni(Department Manager),Ms.Deepa(Assistant
Department Manager),Mr. K.P.Singh(Department Manager) and also thanks to all other staff
member of pantaloons store,Indirapuram for their cooperation and amicable behavior.
DECLARATION

I the undersigned, Mudit Tomar, hereby declare that the project on COMPETITOR
ANALYSIS is written by me under the guidance of Mr. Pratap Shiromali The empirical
conclusion and findings in the Project are based on Quality Improvement by me and are not a
reproduction of any source,

Date

Place: Ghaziabad Mudit Tomar


CONTENTS

EXECUTIVE SUMMARY
1. INTRODUCTION OF RETAIL INDUSTRY
a. RETAIL FORMATS
TRADITIONAL AND PRESENT SCENARIO IN INDIA
b. KEY CHALLENGES
2. INTRODUCTION OF FUTURE GROUP
a. VISION, MISSION, CORE VALUES
b. AFFILATED COMPANIES
c. LINE OF BUSINESS
d. MILESTONES
3. INTREODUCTION OF PANTALOON
a. PROFILE
b. ORGANIZAIONAL CULTURE
c. BRAND TARGETS AND FOCUS
4. COMPETITIOR ANALYSIS
a. MAJOR COMPETITORS
5. RESEARCH METHODOLOGY
6. ANALYSIS AND INTERPRETATIONS
7. FINDINGS
8. RECOMMENDATIONS AND CONCLUSION
BIBLIOGRAPHY

EXECUTIVE SUMMARY

Retail industry is moving to new heights today. It is growing more than ever before.
Unorganized retail has dominated the industry always. Still organized retail in our country
contributes only 4%of the total retail industry. But now some drastic changes are being seen in
the todays retail industry. Now the organized retail is growing rapidly and it is estimated to be
11%of the total retail market by 2011.
During summer internship at PANTALOON, SHIPRA MALL, GHAZIABAD which is the
flagship company of FUTURE GROUP which is one of the major players in Indian retail market

The topic for project was COMPETITOR ANALYSIS OF PANTALOON RETAIL INDIA LTD.
My major objective of this project was to understand the working of the company and also to
understand formulation, implementation of strategies of this company in order to cope up with
the dynamic changes in the industry. The project report also tells the response of the customers
towards the strategies adopted by the company.

The project required data collection via consumer survey on the basis of a random sample. A
store survey (limited to own store) was also undergone.

Before starting with the analysis and reports, I have included in the project all the activities that I
conducted and helped execute at the store. Over the period of Seven Week there were a number
of such activities, which gave me an overall understanding of marketing activities and
responsibilities at the store.

RETAIL INDUSTRY

The word "Retail" originates from a French-Italian word. Retailer-someone who cuts off or
sheds a small piece from something. Retailing is the set of activities that markets products or
services to final consumers for their own personal or household use. It does this by organizing
their availability on a relatively large scale and supplying them to customers on a relatively
small scale. Retailer is a Person or Agent or Agency or Company or Organization who is
instrumental in reaching the Goods or Merchandise or Services to the End User or Ultimate
Consumer.
Retailing includes all the activities involved in selling goods and services directly to final
consumers for personal, non-business use. Retailing consists of the sale of goods or
merchandise, from a fixed location such as a department store in small or individual lots for
direct consumption by the purchasers.
Retailing may include subordinated services such as delivery. Purchasers may be individual or
businesses. In commerce a retailer buys goods or products in large quantities from manufactures
or importers, either directly or through whole sellers, and then sells smaller quantities to the end
users. Retail establishments are often called shops or stores. Retailers are at the end of the supply
chain. Manufacturing marketers see the process of retailing as a necessary part of their over all
distribution strategy.
The Indian retail industry is divided into organised and unorganised sectors. Organized
Retailing refers to trading activities undertaken by licensed retailers, that is, those who are
registered for sales tax, income tax, etc. These include the corporate-backed hypermarkets and
retail chains, and also the privately owned large retail businesses. Unorganised retailing, on the
other hand, refers to the traditional formats of low-cost retailing, for example, the local kirana
shops, owner manned general stores, paan/beedi shops, convenience stores, hand cart and
pavement vendors, etc. Indias retail sector is wearing new clothes and with a three-year
compounded annual growth rate of 46.64 per cent, retail is the fastest growing sector in the
Indian economy. Traditional markets are making way for new formats such as departmental
stores, hypermarkets, supermarkets and specialty stores. Western-style malls have begun
appearing in metros and second-rung cities alike, introducing the Indian consumer to an
unparalleled shopping experience. The Indian retail sector is highly fragmented with 97 per cent
of its business being run by the unorganized retailers like the traditional family run stores and
corner stores. The
organized retail however is at a very nascent stage though attempts are being made to increase its
proportion to 9-10 per cent by the year 2010 bringing in a huge opportunity for prospective new
players. The sector is the largest source of employment after agriculture, and has deep
penetration into rural India generating more than 10 per cent of Indias GDP.
RETAIL FORMATS
Malls:

The largest form of organized retailing today. Located mainly in metro cities, in proximity to
urban outskirts. Ranges from 60,000 sq ft to 7,00,000 sq ft and above. They lend an ideal
shopping experience with an amalgamation of product, service and entertainment, all under a
common roof..

Specialty Stores:

Chains such as the Bangalore based Kids Kemp, the Mumbai books retailer Crossword, RPG's
Music World and the Times Group's music chain Planet M, are focusing on specific market
segments and have established themselves strongly in their sectors.

Discount Stores:

As the name suggests, discount stores or factory outlets, offer discounts on the MRP through
selling in bulk reaching economies of scale or excess stock left over at the season. The product
category can range from a variety of perishable/ non perishable goods

Department Stores:

Large stores ranging from 20000-50000 sq. ft, catering to a variety of consumer needs. Further
classified into localized departments such as clothing, toys, home, groceries, etc.

Category Stores:

Category Stores are expected to take over the apparel business from exclusive brand showrooms.
Among these, the biggest success is K Raheja's Shoppers Stop, which started in Mumbai and
now has more than seven large stores (over 30,000 sq. ft) across India and even has its own in
store brand for clothes called Stop!.
Hyper marts/Supermarkets:

Large self service outlets, catering to varied shopper needs are termed as Supermarkets. These
are located in or near residential high streets. These stores today contribute to 30% of all food &
grocery organized retail sales. Super Markets can further be classified in to mini supermarkets
typically 1,000 sq ft to 2,000 sq ft and large supermarkets ranging from of 3,500 sq ft to 5,000 sq
ft. having a strong focus on food & grocery and personal sales.

Convenience Stores:

These are relatively small stores 400-2,000 sq. feet located near residential areas. They
stock a limited range of high-turnover convenience products and are usually open for extended
periods during the day, seven days a week. Prices are slightly higher due to the convenience
premium.

MBOs :

Multi Brand outlets, also known as Category Killers, offer several brands across a single product
category. These usually do well in busy market places and Metros.
INDIAN RETAIL INDUSTRY

India's largest industry, the retail sector is valued at $200 billion accounting for over 10 per cent
of the country's GDP and around eight per cent of the country's employment. It has emerged as
one of the most dynamic industries with several players entering the market. Retail industry in
India is at the crossroads. One of the major factors playing a role is income Increase in
Disposable incomes of customers across various sectors.
Retail in India is still at a very early stage. Most retail firms are companies from other industries
that are now entering the retail sector on account of its amazing potential. There are only a
handful of companies with a retail background. Their achievement has led to the arrival of
numerous other players, most with the backing of large groups, but usually not with a retail
background. Most new entrants to the India retail scene are real estate groups who see their
access to and knowledge of land, location and construction as prime factors for entering the
market.

New retail stores have traditionally started operations in cities like Mumbai and Delhi where
there has been an existing base of metropolitan consumers with ready cash and global tastes. The
new perspective to this trend is that new entrants to the retail scenario should first enter smaller
cities rather than focusing entirely on the metros. Spending power
in India is not concentrated any more in just the 4 metros (Delhi, Mumbai, Chennai and
Kolkata). Smaller but upcoming cities like Chandigarh, Coimbatore, Pune, Ahmedabad, Baroda,
Trivandrum, Cochin, Ludhiana, Shimla etc will fast be catching up to the metros in their
spending capacity.

Cities in south India have taken to the supermarket style of shopping very eagerly and so far the
maximum number of organized grocery and department stores are in Chennai, Bangalore and
Hyderabad. The north has a long way to go to come up to par. International stores now prefer to
gauge the reaction of the public in these cities before investing heavily in a nation-wide
expansion. Milou, the Swiss childrens wear retailer, recently opened up its first store in
Chennai, bypassing Delhi and Mumbai.

Besides the urban market, Indias rural market has just started to be seen as a viable option and
companies who understand what the rural consumer wants will grow to incredible heights. The
bulk of Indias population still live in rural areas and to be able to cater specifically to them will
mean generating tremendous amounts of business.
Business, specifically retail business is trying to focus on the most important factor in the
Indian mind-set----Value for Money. Indian consumers are ready to pay almost any amount of
money for a product or service as long as they feel they are getting good Value for Money. This
is often misconstrued as being tight fisted or interested in lower priced and/or lower quality
products.

In the past decade, international companies entering India (Levis, Pepe, Tommy Hilfiger, Marks
and Spencer, Mango) have generally offered moderately priced to expensive items. They have
aimed for the upper-middle and rich classes of Indian society. These are consumers who travel
abroad often and can buy these items overseas quite easily. Instead, international companies
should be focusing on the lower and lower-middle classes of India. This is where the real
potential is, the aspirational class of consumers who want to lead a better lives and believe in
education, hard work and absorb knowledge from every possible angle. The phenomenal success
of Big Bazaar, Pantaloons version of Wal-Mart, is proof that there is enormous potential in
providing products and services to this class of consumers.

Indians are very curious by nature and will try everything at least once before rejecting it. The
initial success of KFC in India proved that Indians could make a success of most new ventures
entering India but rejects a concept once they have tried and tested the offering and found
nothing worth going back for. The menu at KFC was rather boring and insipid to the Indian
consumer who is used to the innumerable combinations and permutations of street food. For
their second run in India, KFC re-thought its menu and has been very successful marketing at
specific groups within India, like the Punjabis who have quite a history of loving the Chicken
leg and have made the Chandigarh outlet a huge success!

PRESENT SCNERIO OF RETAIL IN INDIA

*unorganized market 583,000 crores


*Organized market: Rs.5 000 crores
*5times growth in organized retailing between 2000-2005
*Over 4,000 new modern Outlets in the last 3 years
*Over 5,000,000 sq. ft. of mall space under development
*the top 3 modern retailers control over 750,000 sq. ft. of retail space.
*Over 400,000 shoppers walk through their doors every week.
* Growth in organized retailing on par with expectations and projections of the last 5. Years: on
course to touch Rs. 35,000 crores (US$ 7 Billion) or more by 2005-06 .

TRADITIONAL RETAIL IN INDIA

India is the country having the most unorganized retail market. Traditionally the retail business
is run by Mom & Pop having Shop in the front & house at the back. More than 99% retailers
function in less than 500Sq.Ft of area. All the merchandise was purchased as per the test & vim
and fancies of the proprietor also the pricing was done on ad hock basis or by seeing at the face
of customer. Generally the accounts of trading & home are not maintained separately. Profits
were accumulated in slow moving & non-moving stocks which were to become redundant or
consumed in-house. Thus profits were vanished without their knowledge. The Manufactures
were to distribute goods through Distributors & Wholesalers. Retailers happen to source the
merchandise from Wholesalers & reach to end-users. The merchandise price used to get inflated
to a great extent till it reaches from Manufacturer to End-user. Selling prices were largely not
controlled by Manufacturers. Branding was not an issue for majority of customers. More than
99% customers are price sensitive & not quality or Brand Sensitive at the same time they are
Brand conscious also. Weekly Bazaar in many small tows was held & almost all the
commodities were on the scene including livestock. Bargaining was the unwritten law of market.
Educational qualification level of these retailers was always low. Hence market was controlled
by handful of distributors &/or Wholesalers. Virtually there was only one format of retailing &
that was mass retail. Retailer to consumer ratio was very low, for all the categories without
exception. Varity in terms of quality, Styles were on regional basis, community based & truly
very low range was available at any given single place. Almost all the purchases / (buying) by
mass population was need oriented & next turn may be on festivals, Marriages, Birthdays &
some specific occasions.

Impulsive buying or consumption is restricted to food or vegetables etc. Having extra pair of
trousers or Shirts or Casuals & Formals & leisure wear & sports wear & different pair of shoes
for occasions is till date is a luxury for majority population except for those living in Metros.
Purchasing power of Indian urban consumer is very low and that of Branded merchandise in
categories like Apparels, Cosmetics, Shoes, Watches, Beverages, Food, Jewellery, are slowly
seeping into the lifeline of Indian City folks. However electronic & electrical home appliances
do hold appropriate image into the minds of consumers. Brand name does matter in these white
goods categories. In the coming times also majority of organized retailers will find it difficult to
keep balance with rest of the unbranded retail market which is very huge.

Traditionally retailing in India can be traced to

The emergence of the neighborhood Kirana stores catering to the convenience


of the consumers
Era of government support for rural retail: Indigenous franchise model of store
chains run by Khadi & Village Industries Commission

1980s experienced slow change as India began to open up economy.

Textiles sector with companies like Bombay Dyeing, Raymond's, S Kumar's and Grasim
first saw the emergence of retail chains

Later Titan successfully created an organized retailing concept and established a series of
showrooms for its premium watches

The latter half of the 1990s saw a fresh wave of entrants with a shift from Manufactures
to Pure Retailers.

For e.g. Food World, Subhiksha and Nilgiris in food and FMCG; Planet M and Music
World in music; Crossword and Fountainhead in books.

Post 1995 onwards saw an emergence of shopping centers,

mainly in urban areas, with facilities like car parking

targeted to provide a complete destination experience for all segments of society

Emergence of hyper and super markets trying to provide customer with 3 Vs - Value,
Variety and Volume
Expanding target consumer segment: The Sachet revolution - example of reaching to the
bottom of the pyramid.

At year end of 2000 the size of the Indian organized retail industry was estimated at Rs.
13,000 crore

MAJOR RETAIL PLAYERS IN INDIA:

Metro
Big Bazaar

c3 (Cost,Comfort,Convenience)

Central

Fabmall

Akbarally's
Family Mart

Foodworld

Home Centre

HomeStop.

Hyper Mart

Lifestyle International

Marks & Spencer

Pantaloons

Promart

Shoppers Stop

Spencers

reliance

more

Spinach

Subhiksha

Vishal Mega Mart

Westside

Big Apple

Shoppers Stop

D mart

Food land
Nature Basket ( Godrej)

sahara unique(shop for Trend)

6 ten retail store

Aiba Retail Store

INDIAN RETAIL IS MOVING INTO SECOND GEAR

1) FIRST GEAR:
(Create awareness)
* New retailers driving awareness
* High degree of fragmentation
* Real estate groups starting retail chains
* Consumer expecting 'value for money' as core value

2) SECOND GEAR:
(Meet customer expectations)
* Consumer-driven
* Emergence of pure retailers
* Retailers getting multi-locational and multi-format
* Global retailers evincing interest in India

3) THIRD GEAR:
(Back end management)
* Category management
* Vendor partnership
* Stock turns
* Channel synchronization
* Consumer acquisition
* Customer relation's management

4) FOURTH GEAR:
(Consolidation)
* Aggressive rollout
* Organized retail acquitting significant share
* Beginning of cross-border movement
* Mergers and acquisitions

A company entering India cannot have just one game plan to apply to the entire country as the
people, their tastes, the lifestyle, the budgets etc are all too divergent. International entrants must
enter each market specifically focusing only on that area to be successful.

Metros: Delhi, Mumbai, Chennai and Kolkata. Second rung but will soon outpace metros:
Hyderabad, Bangalore, Ahmedabad, Gurgaon, Pune, Baroda.Small and developing fast:
Chandigarh, Coimbatore, Trivandrum, Faridabad, Ludhiana, Cochin, Simla, and Mysore.

Retailing in India is gradually inching its way towards becoming the next boom industry owing
to a steady increase in the disposable incomes of the middle class households. The whole
concept of shopping has altered in terms of format and consumer buying behavior, ushering in a
retail revolution. 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
key growth drivers of the organized retail industry in India are:-

DEMOGRAPHICS: 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
WORKING WOMEN: Increase in the numbers of working women population

SERVICE SECTOR: Emerging opportunities in the services sector


INCOME: Increase in disposable incomes of customers across various sectors

CUSTOMER: The customer today is far more discerning than he was earlier.

REAL ESTATE PRICES: The consistent fall in the prices of real estate

Unorganized: Vast majority of the twelve million stores are small "father and son" outlets

Fragmented: Mostly small individually owned businesses, average size of outlet equals 50 s.q.
ft. Though India has the highest number of retail outlets per capita in the world, the retail space
per capita at 2 s.q. ft per person is amongst the lowest.

Rural bias: Nearly two thirds of the stores are located in rural areas. Rural retail industry has
typically two forms: "Haats" and Melas". Haats are the weekly markets: serve groups of 10-50
villages and sell day-to-day necessities. Melas are larger in size and more sophisticated in terms
of the goods sold (like TVs)

Experimentation with formats: Retailing in India is still evolving and the sector is witnessing
a series of experiments across the country with new formats being tested out. Ex. sub-urban
discount stores, Cash and carry etc.
Store design: Biggest challenge for organized retailing to create a customer-pull environment
that increases the amount of impulse shopping. Research shows that the chances of senses
dictating sales are up to 10-15%. Retail chains like Music World, Baristas, Pyramid and Globus
are laying major emphasis & investing heavily in store design.

Emergence of discount stores: They are expected to spearhead the organized retailing revolution.
Stores trying to emulate the model of Wal-Mart. Ex. Big Bazaar, Bombay Bazaar, RPGs.

Unorganized retailing is getting organized: To meet the challenges of organized retailing such
as large complexes, and malls, which are backed by the corporate house such as 'Ansals' and
'PVR the unorganized sector is getting organized. 25 stores in Delhi under the banner of
Provision mart are joining hands to combine monthly buying. Bombay Bazaar and Efoodmart
formed which are aggregations of Kirana.

Retailing in India is witnessing a huge revamping exercise as can be seen in the


graph
Retailing is the most active and attractive sector of last decade. While the retailing industry itself
has been present since ages in our country, it is only the recent past that it has witnessed so much
dynamism. The emergence of retailing in India has more to do with the increased purchasing
power of buyers, especially post-liberalization, increase in product variety, and increase in
economies of scale, with the aid of modern supply and distributions solution.

Indian retailing today is at an interesting crossroads. The retail sales are at the highest point in
history and new technologies are improving retail productivity. Though there are many
opportunities to start a new retail business, retailers are facing numerous challenges.

RECENT TRENDS

India is rated the fifth most attractive emerging retail market: a potential goldmine.
Estimated to be US$ 200 billion, of which organized retailing (i.e. modern trade) makes
up 3 percent or US$ 6.4 billion

As per a report by KPMG the annual growth of department stores is estimated at 24%

Ranked second in a Global Retail Development Index of 30 developing countries drawn


up by AT Kearney.

KEY CHALLENGES:

1) LOCATION:
"Right Place, Right choice"
Location is the most important ingredient for any business that relies on customers, and
is typically the prime consideration in a customers store choice. Locations decisions are
harder to change because retailers have to either make sustainable investments to buy and
develop real estate or commit to long term lease with developers. When formulating
decision about where to locate, the retailer must refer to the strategic plan:
* Investigate alternative trading areas.
* Determine the type of desirable store location

* Evaluate alternative specific store sites

2) MERCHANDISE

The primary goal of the most retailers is to sell the right kind of merchandise and nothing is
more central to the strategic thrust of the retailing firm. Merchandising consists of activities
involved in acquiring particular goods and services and making them available at a place, time
and quantity that enable the retailer to reach its goals. Merchandising is perhaps, the most
important function for any retail organization, as it decides what finally goes on shelf of the
store.
3) PRICING

Pricing is a crucial strategic variable due to its direct relationship with a firm's goal and its
interaction with other retailing elements. The importance of pricing decisions is growing because
today's customers are looking for good value when they buy merchandise and services. Price is
the easiest and quickest variable to change.

4) TARGET AUDIENCE:

"Consumer Pull, seems to be the most important driving factor behind the sustenance of the
industry. The purchasing power of the customers has increased to a great extent, with the
influencing the retail industry to a great extent, a variety of other factors also seem to fuel the
retailing boom

5) SCALE OF OPERATIONS:
Scale of operations includes all the supply chain activities, which are carried out in the business.
It is one of the challenges that the Indian retailers are facing. The cost of business operations is
very high in India.
INTRODUCTION OF FUTURE GROUP

Future Group is Indias leading business group that caters to the entire Indian consumption
space. Led by Mr. Kishore Biyani, the Future Group operates through six verticals: operates
through six verticals: Retail, Capital, Brands, Space, Media and Logistics.

Future Group is one of the countrys leading business groups present in retail, asset
management, consumer finance, insurance, retail media, retail spaces and logistics. Future Group
is present in 61 cities and 65 rural locations. The groups flagship company, Pantaloon Retail
(India) Limited operates over 12,000,000 square feet (1,100,000 m2) of retail space, has over
1,000 stores and employs over 30,000 people. Some of its leading retail formats include
Pantaloons, Big Bazaar, and Central, Food Bazaar, Home Town, eZone, Depot, Future Money
and online retail format future bazaar.

Groups vision is to, deliver Everything, Everywhere, Every time to Every Indian Consumer in
the most profitable manner. The group considers Indian-ness as a core value and its corporate
credo is Rewrite rules, Retain values

GROUP VISION

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

CORE VALUES
Indianness: confidence in ourselves.
Leadership: to be a leader, both in thought and business.

Respect & Humility: to respect every individual and be humble in our conduct.

Introspection: leading to purposeful thinking.

Openness: to be open and receptive to new ideas, knowledge and information.


Valuing and Nurturing Relationships: to build long-term relationships.

Simplicity & Positivity: Simplicity and positivity in our thought, business and action.

Adaptability: to be flexible and adaptable, to meet challenges.

Flow: to respect and understand the universal laws of nature.

Future Retail Future Logistics

Future Space

Future Media

Future Captal
Future Brands

Apart from Pantaloon Retail, the groups presence in the retail space is complemented by group
companies, Indus League Clothing, which owns leading apparel brands like Indigo Nation,
Scullers and Urbana, Yoga, and Galaxy Entertainment Limited that operates Bowling Co, Sports
Bar, F123 and Brew Bar.

The groups joint venture partners include French retailer ETAM group, US-based stationary
products retailer, Staples and UK-based Lee Cooper. Group Company, Planet Retail, owns and
operates the franchisee of international brands like Marks & Spencer, Next, Debenhams and
Guess in India. The groups Indian joint venture partners include, Maniple Healthcare,
Talwalkars, Blue Foods and Liberty Shoes.

Future Capital Holdings, the groups financial arm, focuses on asset management and consumer
credit. It manages assets worth over $1 billion that are being invested in developing retail real
estate and consumer-related brands and hotels. The group has launched a consumer credit and
financial supermarket format, Future Money and recently started offering insurance products
through a joint venture with Italian insurance major, Generali. The group is currently
developing over 50 malls and consumption centers across the country and has formed a
joint venture company focusing on mall management with Singapore-based Capital and,
one of Asias largest property company.

KEY PEOPLE

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.

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. Ved Prakash Arya, Director

Ved Prakash Arya, is an engineer by training and is a graduate of the Indian Institute of
Management, Ahmedabad. Prior to joining Pantaloon Retail, he was the CEO of Globus.
AFFILATED COMPANIES

Home Solutions Retail (India) Limited (HSRIL): offers complete retailing solutions for all
products and services related to home building and home improvement. The key product
categories are Consumer Durable & Electronics (CDE), Furniture, Home furnishing & decor,
Home improvement and Home services. HSRIL operates retail format Collection-i, Furniture
Bazaar, Electronics Bazaar, Home Town and e-zone.

Future Brands Limited (FBL): has been incorporated on November, 2006 and is involved
in the business of creating, developing, managing, acquiring and dealing in consumer-related
brands and IPRs (Intellectual Property Rights).

Future Media (India) Limited (FMIL): was incorporated as the Groups media venture,
aimed at creation of media properties in the ambience of consumption and thus offers active
engagement to brands and consumers. FMIL offers relevant engagement through its media
properties like Visual Spaces, Print, Radio, Television and Activation.

Future Logistic Solutions Limited (FLSL): has been incorporated as a separate entity and is
involved in the business of providing logistics, transportation and warehousing services for all
group companies and third-parties.

Future Axiom Telecom Limited is a Joint Venture with Axiom Telecom LLC, UAE. The
Company has a 50% stake in Future Axiom Telecom Limited (FATL) which is a joint venture
Company with Axiom Telecom LLC, UAE. The Company would be engaged in sourcing and
wholesale distribution of mobile handsets, accessories and in setting up service centres for
mobile handsets in India.
Pantaloon Food Product (India) Limited (PFPIL): was incorporated with the object of
sourcing and backward integration of food business of the Company. PFPIL has sourcing and
distribution bases at all key cities across the country.

Future Knowledge Services Limited (FKSL): was incorporated on January, 2007 and is
engaged in the business of business process outsourcing and knowledge process outsourcing.

Future Capital Holdings Limited (FCH): was formed to manage the financial services
business of Pantaloon Retail (India) Limited and other group entities. FCH is one of the
fastest growing financial services company in India, with presence in Asset Advisory, Retail
Financial Services and Proprietary Research. The company operates a consumer finance retail
format, Future Money and manages assets worth over US$ 1 Billion through Indivision,
Kshitij, Horizon and Future Hospitality Funds. FCH subsidiary companies include Kshitij
Investment Advisory Company Ltd., Ambit Investment Advisory Company Ltd., and
Indivision Investment Advisors Ltd.

Future Generali India Insurance Company Limited (FGIICL): was incorporated on


October 30, 2006 to undertake and carry on the business of general insurance. The approval
for carrying on General Insurance Business has been received from the Insurance Regulatory
and Development Authority of India (IRDA) on September 4, 2007.

Future Generali India Life Insurance Company Limited (FGILICL) was incorporated on
October 30, 2006 to establish and conduct the business of life insurance in India, which
comprises of whole life insurance, endowment insurance, double benefit and multiple benefits
insurance etc. The approval for carrying on Life Insurance Business has been received from
the IRDA in September, 2007.

Future bazaar India Limited (FBIL) is set up as the e-Retailing arm of the Future Group
for providing on-line shopping experience. Futurebazaar.com was launched on January 2,
2007, and has emerged as one of the most popular online shopping portals in India. It was
awarded with the Best Indian Website award, in the shopping category, by the PC World
Indian Website Awards.

Staples Future Office Products Private Limited (SFOPPL): was incorporated on January,
2007 and is involved in the business of dealing in all kinds of office supplies, office equipments
and products. SFOPPL is a joint venture between the Company and Staples Asia Investment
Limited (a subsidiary of Staples Inc USA). The companys first retail outlet opened in Bangalore
in December, 2007.

LINE OF BUSINESS

Fashion-Pantaloon, Central, aLL, Brand factory Blue Sky, Top 10, Fashion Station, Big
Bazaar,m Lee Cooper (JV),

General Merchandise-Big Bazaar, Shoe Factory, Navras, Electronics Bazaar,


Furniture Bazaar, KB'S FAIR PRICE

Electronics - eZone, Electronic Bazaar, STAPLES(JV)

Home Improvement - Home Town

Furniture Collection i, Furniture Bazaar, Home Bazaar

Books & Music - Depot

Leisure & Entertainment - Bowling Co., F123

Wellness - Star & Sitara, Tulsi

Telecom & IT - Gen M, M Bazaar, M-Port, ConvergeM, Future Axiom


Consumer Durables - Koryo, Sensei ,IPAQ

Service - E Care

Malls - Central (Bangalore, Hyderabad, Pune, Mumbai, Vadodara, Gurgaon)

Insurance- generali

Major Milestones:

1987
Company incorporated as Mens Wear Private Limited. Launch of Pantaloons trouser,
Indias 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 Indias family store launched in Kolkata.
2001
Big Bazaar, Is se sasta aur accha kahi nahin - Indias first hypermarket chain launched.
2002
Food Bazaar, the supermarket chain is launched.
2004
Central Shop, Eat, Celebrate in the Heart of Our City - Indias 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 companys 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 future Bazaar are launched across the nation. Group enters into joint venture
agreements with ETAM Group and Generali.

COMPANY PROFILE

Pantaloon Retail (India) Limited, is Indias leading retailer that operates multiple retail formats
in both the value and lifestyle segment of the Indian consumer marker. Headquartered in
Mumbai (Bombay), the company operates over 5 million square feet of retail space, has over
350 stores across 40 cities in India and employs over 18,000 people. Among these 54 stores are
of pantaloon apparels.

The companys leading formats include Pantaloons, a chain of fashion outlets, Big Bazaar, a
uniquely Indian hypermarket chain, Food Bazaar, a supermarket chain, blends the look, touch
and feel of Indian bazaars with aspects of modern retail like choice, convenience and quality and
Central, a chain of seamless destination malls. Some of its other formats include, Depot, Shoe
Factory, Brand Factory, Blue Sky,

While Big Bazaar, Food Bazaar, Pantaloons and Central have become well-known formats,
Pantaloon has simultaneously explored new concepts such as aLL, which sells clothes to plus-
sized customers and MeLa, which targets home-owners with furniture and home textiles. This is
in pursuit of its strategy to sell everything to everybody.. The company also operates an online
portal, futurebazaar.com.
Pantaloon is not just an organization- it is an institution, a center of learning and development.
Pantaloons believe that knowledge is the only weapon at their disposal and their quest for which
they are focused, systematic and unwavering.

Pantaloons take pride in challenging conventions and thinking out of the box, in traveling on the
road less traveled. Pantaloons corporate doctrine rewrite rules retain values is derived from
this spirit.

Pantaloon Retail was recently awarded the International Retailer of the Year 2009 by the US-
based National Retail Federation (NRF) and the Emerging Market Retailer of the Year 2007 at
the World Retail Congress held in Barcelona Pantaloon Retail is the flagship company of Future
Group, a business group catering to the entire Indian consumption space.

ORGANISATIONAL CULTURE

Passion for Retail is why we are here.

At Pantaloon Retail, Empowerment is what one can acquire and Freedom at Work is what one
gets. Pantaloon believes its most valuable assets are its People. Young in spirit, adventurous in
action, with an average age of 27 years, its skilled & qualified professionals work in an
environment where change is the only constant.

Powered by the desire to create path-breaking practices and held together by values, work in this
people intensive industry is driven by softer issues. In this world, making a difference to
Customers lives is a Passion and performance is the key that makes it possible. Out of the Box
thinking has become a way of life at Pantaloon Retail and living with the change, a habit.

Leadership is a value that is followed by one and all at Pantaloon Retail. Leadership is the
quality that motivates it to never stop learning, stretching to reach the next challenge, knowing
that it will be rewarded along the way. In the quest of creating an Indian model of retailing,
Pantaloon Retail has taken initiatives to launch many retail formats that have come to serve as a
benchmark in the industry. Believing in leadership has given us the optimism to change and be
successful at it. Future group do not predict the future, but create it.

At Pantaloon Retail one will get an opportunity to handle multiple responsibilities, and therein,
the grooming to play a larger role in the future. Work is a unique mix of preserving the core
Indian values and yet providing customers with a service, on par with international standards.

At Pantaloon one will work with some of the brightest people from different spheres of industry.
Pantaloon believes its a place where you can live your dreams and pursue a career that reflects
your skills and passions.
BRAND TARGET AND CONCEPTS
BRAND NAME AGE GROUP MEDIAN GENDER PERCEPT
ION

CHALK 2 to 7 Yrs 5 Yrs Boys & Value


Girls

BARE 7214 7 to 14 Yrs 11 Yrs Boys & Value


Girls

GINY & JONY 7 to 14 Yrs 11 Yrs Boys & Lifestyle


Girls

TOP 10 15 to 21 Yrs 18 Yrs Youth(Bo Lifestyle


ys &
Girls)

HONEY 15 to 25 Yrs 18 Yrs Young Value


Girls

JEALOUS 21 18 to 30 Yrs 18 Yrs Young Lifestyle


women

ANNABELLE 25 to 40 Yrs 27 Yrs Women Value

ETAM 20 to 50 Yrs 30 Yrs Women Lifestyle

UMM 15 to 25 Yrs 20 Yrs Men & Lifestyle


Women

RIG 21 to 35 Yrs 30 Yrs Men & Lifestyle


Women

BARE 25 to 45 Yrs 35 Yrs Men & Value


Women

LEE COOPER 18 to 35 Yrs 26 Yrs Men & Lifestyle


Women

AJILE 16 to 30 Yrs 26 Yrs Men & Lifestyle


Women

SCULLERS 25 to 40 Yrs 32 Yrs Men & Lifestyle


Women

URBAN YOGA 18 to 38 Yrs 27 Yrs Men & Value


Women

ALL 18 to 45 Yrs 27 Yrs Men & Lifestyle


Women

AKKRITI 21 to 30 Yrs 25 Yrs Men & Value


Women
COMPETITIOR ANALYSIS

COMPETITORS

A firms competitors are that company who deals in same market or in same product range and
having similar resources. After the liberalization companies from all over the world are moving
to the Indian market by analyzing huge scope in the market. Competition is becoming more
intense day by day hence all the companies sharply evaluates the competition prevailing in the
market. Pantaloon is into apparel retail, and competition in this industry is very high, so keeping
an eagles eye on the competitors has become very vital.

Companies from all over the world are altering their strategies in accordance to the strategies
adopted by their competitors Here under some details of the competitors has been given and
their current marketing situation has been compared as to those of pantaloon.

Following are the major competitors of pantaloon in apparel sector of retail industry:

MAJOR COMPETITORS

Shoppers Stop Ltd.


Setting up shop in 1991 with its flagship store in Andheri, Mumbai, Shoppers Stop is a member
of the K. Raheja Corp. of Companies. Shoppers Stop is the first retail venture by the K. Raheja
Corp. Promoted by Mr. Chandru L. Raheja, Mr. Ravi C. Raheja and Mr. Neel C. Raheja, the K.
Raheja Corp. have been leaders in the construction business for over 48 years. With its wide
range of merchandise, exclusive shop-in-shop counters of international brands and world-class
customer service, Shoppers Stop brought international standards of shopping to the Indian
consumer providing them with a world class shopping experience. Expanding its operations to
Bangalore, Hyderabad, Jaipur, Delhi, Chennai, Mumbai (Andheri, Bandra, Chembur, Kandivli,
Mulund), Pune, Gurgaon and Kolkata, Shoppers Stop is today recognised as Indias premier
shopping destination.,

Some highlights:
Shoppers Stop has also begun operating a number of specialty stores, namely crossword
book stores,Mothercare, Desi Caf
Shoppers Stop retails a range of branded apparel and private label under the following
categories of apparel, footwear, fashion jewellery, leather products, accessories and
home products. These are complemented by cafe, food, entertainment, personal care and
various beauty related services.

BRANDS AT SHOPPERS STOP:

Non-private brands: Louis Philippe, Pepe, Arrow, BIBA, Gini & Jony, Carbon, Corelle,
Magppie, Nike, Reebok, LEGO and Mattel

Private brands: STOP, Kashish, LIFE and Vettorio Fratini, Elliza Donatein, Acropolis

WESTSIDE

Established in 1998 as part of the Tata Group, Trent Ltd. operates Westside, one of India's largest
and fastest growing chains of retail stores Financial figures in past years. The Westside stores
have numerous departments to meet the varied shopping needs of customers. These include
Menswear, Womens wear, Kids wear, Footwear, Cosmetics, Perfumes and Handbags,
Household Accessories, lingerie, and Gifts.

\The company has already established 36 Westside departmental stores (measuring 15,000 -
30,000 square feet each) in Ahmedabad, Bangalore, Chennai, Delhi, Gurgaon, Ghaziabad &
Noida (to be considered as 1 city), Hyderabad, Indore, Jaipur, Kolkata, Ludhiana, Lucknow,
Mumbai, Mysore, Nagpur, Pune, Rajkot, Surat, Vadodara and Jammu. The company hopes to
expand rapidly with similar format stores that offer a fine balance between style and price
retailing Trent ventured into the hypermarket business in 2004 with Star Bazaar, providing an
ample assortment of products made available at the lowest prices, aptly exemplifying its Chota
Budget, Lambi Shopping motto. At present Star Bazaar has 4 stores in 3 cities located in
Ahmedabad, Mumbai and Bangalore.

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. Star Bazaar also
includes a large range of fashionable in-house garments for men, women and children,
exclusively available at the store. In addition, Trent recently acquired a 76% stake in Landmark,
one of the largest books & music retail chains in the country. Landmark began operations in
1987 with its first store in Chennai with a floor space of 5500 sq. ft. At present Landmark have
10 stores, varying in size from 12,000 sq. ft. to 45,000 sq. ft, 3 in Chennai and 1 each in
Bangalore, Gurgaon, Mumbai, Vadodara, Gurgaon, Pune, Lucknow and Ahmedabad. Until 1996,
Landmarks product portfolio comprised books, stationery, and greeting cards. It was later that
music was added to it. Landmark also sparked the trend of stocking curios, toys and other gift
items. What separates Landmark from other stores of its kind is the range and depth of its stock.
Lifestyle International (P) Ltd is part of the Landmark Group, a Dubai based retail chain. With
over 30 years experience in retailing, the Group has become one of the foremost retailers in the
Gulf. Positioned as a trendy, youthful and vibrant brand that offers customers a wide variety of
merchandise at an exceptional value for money, Lifestyle India began operations in 1999 with its
first store in Chennai. Currently there are 15 Lifestyle stores and 8 Home Centre stores across
Ahmedabad, Bangalore, Chennai, Hyderabad, Jaipur, Mumbai, Pune, New Delhi, Noida and
Gurgaon.

MISSION STATEMENT

Carefully listen. Constantly adapt. Always deliver.

VISION STATEMENT

To become the leading retail group in the Middle East and India, maintaining our constant
growth through our core, value and international brand business.

A few awards bagged by Lifestyle International

Business World Most Respected Company in Retail Sector in 2003 & 2004.
ICICI KSA Technopak Award for Retail Excellence in 2005.
Reid & Taylor Retailer of the Year award in 2006.
Lycra Images Fashion Award for the Most Admired Large Format Retailer of the
Year in 2006.
Images Retail Most Admired Retailer of the Year Department Store in 2008.

GLOBUS
Globus is one of the leading chains of retail store in the country. It is part of the highly
diversified R. Raheja group of companies one of the most prestigious business houses in the
country. Launched in January 1998, Globus. The company opened its first store in 1999 at
Indore. The flagship store in Mumbai was opened on 1st November 2001.

GROUP COMPANIES-

R.raheja properties-construction
Exide industries-Batteries

Prism cement-Cement

Hatchway-cable TV and internet-cable TV in Kerala

Outlook-publishing

GLOBUS-Apparel retail

Rmc ready-mix-ready-mix concrete

JOINT VENTURES

Sonata Software Software


Franklin Templeton (India) Mutual funds

J.W. Marriott Hotels

Raj Vilas Hotels

Trident Hilton chain Hotels


Supreme Petrochem Petrochemicals

COMPETITOR ANALYSIS

Here competition analysis has been done by taking some common attributes:

1. LOYALTY PROGRAMME

CONCLUSION

Easiest to become Green member at minimum purchase of Rs. 4000 or Nominal fee Rs.
100only.
Comparison of other stores, Pantaloon is charging small amount for enrolment.

Validity of Green card is as good as others.

Purchase accumulation and redemption system of Pantaloon is the simplest and easiest to
understand..

PANTALOON provides special discounts to its customers on Friday.

2. PRICE RANGE

However at pantaloon both value based and lifestyle products are being sold but their main focus
is at catering to middle class. Pantaloon keeps its prices low as compared to its competitors,
which motivates the customers to shop at pantaloon.

It has been successful in it because of:

Focus on private brand which allows it to set the prices low by injection of new
technology for production, distribution and other activities. Its competitors like
shoppers, globus has less no. of private brands which reduces the ability of the firm
to bring the prices low.
Its first mover position, as its competitors entered the market very late as compared to
pantaloon and till then pantaloon has gained experience about how to maintain
production units and distribution channel etc.

3. COLLECTION
Pantaloon provides wide range of product offering through its formats like pantaloon
(apparel), big bazaar, all, mela etc. (all and mela are speciality stores) but they are
somehow behind its competitors.
Pantaloons specialty stores are at introductory stage.
Its competitors like shoppers stop and globus provides wider range of products
from their store like in shoppers stop on can purchase apparels as well as
mother care products, jewellery, bags, shoes, furniture, crockery etc.
Pantaloon provides wide range of apparels but other thing along with it like
accessories, jewellery, beauty care products have very less options, which
may forbade the customer to shop all these things from the pantaloon store.
However same is the condition is with its competitors like lifestyle and
Westside which keeps it in somehow safe position.

4. EXTRA SHOPPING BENEFITS:


Pantaloon puts every possible effort in providing extra shopping benefits to its customers
some of which are:
Its loyalty programme is far better in terms of enrolment fee, validity and
benefits.
Every Friday is shopping Friday at pantaloon on this day several exciting
offers are introduced for customers this motivates the customers to shop from
pantaloon rather than somewhere else especially on Fridays.
At pantaloon one can find a good blend of value based products as well as
lifestyle products.
Seasonal sale in which discounts up to 50%is given.
Facility of Home delivery after a certain amount of shopping is also given to
the customers.
In every seasonal sale 10%extra discount is given to the membership of
loyalty club.

5. SERVICES
Seamless services are being provided at pantaloon store to make the customer satisfied.
This includes;
Exchanges without asking why.
Alteration facility at store and that too in very short time.
Customers can ask for some special size or stuff. This facility is not given to
customers at every store by its competitors.

OPERATION AT STORE LEVEL


OPERATION IN STORE
VISUAL MERCHANDISING

SUPPLY CHAIN MANAGEMENT

OPERATION IN STORE

PRINCIPLE RESPONSIBILITIES

Profitability
1. Sets target for each sales staff in the department in consultation with SM/ASM

2. Ensures that the set target are achieved.

Product Management
1. Understands the department layout and brand placements.
2. Understand the brand character.
3. Understand & maintain fixture capacities and merchandising norms.
4. Maintain base stock levels for each brand, class and sub class.
5. Ensures timely replenishments from Ware House to store floor.
6. Analysis & plans inventory based on 80:20 principles.
7. Ensures inward of goods is as per SOP (standard operating system) and no goods
are sold without proper in warding.
8. Effectively ensures non selling and defective merchandise is out warded every
month after proper approvals
9. Obtains stock cover dump from I.T. and calculate stock to sales .
10. Measures performance of each brand based on absolute sales value, sales per sq
ft and sales share to the department and store.
11. Keeps information of inventories and allocations done by HO/ZO category team.
12. Analyse sales regularly and provides qualitative information on slow sellers and
top sellers every week/fortnight.
13. Keeps track of consumer feedback and communicate the same.
14. Ensures periodic inventory checks for 0% shrinkage.
15. Keeps a daily tab on margins and markdowns.
16. Coordinate with vendors for PNT brands-PO, Inwards & Payments.

Visual Merchandising
1. Ensures that the merchandize is neatly stocked.
2. Maintain the premium look of the department in consultation with the VM.
3. Guide the sales staff in terms of product displays, product highlight areas,
mannequin, positioning of signage/posters, layout plans etc.
4. In charge for product display, product highlight areas, mannequin, positioning
of signage/posters, layout plans.
5. Ensure that layout plans and stocking norms are adhered

Merchandise Handling and Replenishments


1. Analysis ASP and maintains inventory as the 80:20 principle.
2. Obtains stock cover dump from IT Department and calculate stock covers.
3. Analysis the level of stock and sales in their department Brand wise, Unit wise
and item wise with respect to value and quantity.
4. Analysis warehouse stock and store stock for all products-item wise.

Customer Service
5. Handles customer complaints and requests/issues and resolve issues.
6. Receives schemes formulated by category managers with the consent of
ASM/SM

Report Making
1. Ensure generation of Weekly, Monthly reports related to sales, stock positioning ,
staffing , best sellers-slow sellers etc. and is provided to the concerned on timely
basis.
2. Reports slow and fast sellers every week and fortnightly.
Schemes
1. Receives schemes formulate by ZO/HO.
2. Ensures that identified merchandise and is arranged according to the nature of the
scheme.
3. Ensures handover of the scheme details to the IT Department for updated in REM.
4. Ensures that duration of the scheme is also input into REM.
5. Checks for various Billing options in the REM, after IT updates the scheme in REM
6. Ensure once REM shows smooth operation of the scheme, handover the scheme
details to the Visual Merchandiser for preparation of VM items.
Team Management
1. Ensures that the team is trained on product and selling skills.
2. Ensures that the team handles customers with desired levels of efficiency.
3. Leads from the front ,adopt a hands on approach and is available for
troubleshooting.
4. Ensures that the team is trained on SAP , Cashiering, Fire safety, LPC and its
totally aware of SOPS governing the store.
5. Motivates the team for positive energy and target achievement.
6. Ensures team bonding and ownership.
7. Enables continuous reviews and feedback sessions.

Performance Management
1. Addresses performance issues candidly & constantly.
2. Finds opportunities to develop and stretch others and readily shares own knowledge
experience.
3. Sees, accepts, acts on consecutive feedback from others
Achieving Goals
1. Provides leadership and direction within the team.
2. Set challenging and realistic goals.
3. Gives credit where ever due.

Operations
1. Ensures opening and closing of stores as per SOP.
2. Ensures that the daily checklist is completed and followed by each TM/TL
3. Briefs the team daily target and priorities for the day.
4. Ensures that the scheme are updated a day before they are implemented.
5. Maintains and monitors staff rotation and shift timings.
6. Ensures that the team follows disciplines in processes, operations.
7. Ensure that the team is punctual and tracks comp offs, absenteeism.
8. Ensures that grooming standards of staff are adhered to.
9. Ensures that the dept looks presentable,clealiness is maintained, light are
working, rooms are clean and useable
10. Ensure that activities,new arrivals,schemes are communicated to
TL/TM/Cashier/VM.

VISUAL MERCHANDISING

VISUAL MERCHANDISING INCLUDES:

1. STORE FAADE
2. STORE WINDOWS
3. STORE LAYOUT
4. LIGHTENING
5. FIXTURES
6. MANNEQUIN
7. MERCHANDISE PRESENTATION
8. IN-STORE DISPLAYS
9. COMMON DISPLAY AREA

1. Faade

Store faade represents attitude, price, perception and value and target market by
combination of architectural and location. It consist of main store signage, store
windows, store entry exit door.

A passers by would first notice the window or the faade of the store. The first Image in the
mind of the customer is created by the window. If the faade is interesting it would attract the
passers by inside.

2.window display

Window display is free advertising day and night!


It is the business card of any store!
Window display are meant to offer the public a sense of the shop's variety of
merchandise and atmosphere. The display should quickly grab the pedestrian's
attention and encourage him/her to stop and look at it more carefully.
Presentation inside and outside the shop must convey a uniform image and message
about the products to the customer.

3. Store Layout
Layout planning is deciding on the best physical arrangement of resources.or in other words the
space inside the store is utilised.
Good layout includes in a store:
Optimum Utilization of the available space
Sufficient space should also be left for free movement
Proper display of merchandise should be ensured
The stock should be accessible also.

4. Store Lighting

Lighting is the mean by which customer can see what a store is selling
Lightning should be very direct and focused in windows & focal points. Even
different filters can be used with lights at the windows & focal points.
All sections should be brightly lit to attract the attention of the customer. A badly lit
store would not attract the attention of the store and thus would result in loss of sales.
Lights must be focused on the merchandise and not on the wall. Proper focusing of
lights at the right place is very important in increasing sales.
Focal Points, Clusters and Windows should have extra lights for extra brightness as
they are hot spots that are being created to highlight certain merchandise in a
particular section.

5.FIXTURES

GANDOLAS AND
WATERFALLS
BROWSERS

Straight arms
6.Mannequins

The mannequin is the centerpiece of any successful clothing display, and rightly so.
Nothing shows off the cut, fit, and fabric like a three-dimensional form.
Mannequins are used to tell a story. Set up a Scene in your display window that features
the mannequin in a realistic situation. Mannequins by their nature engage and intrigue.
While the potential customer might or might not be interested in the product displayed,
they might be convinced to walk in.
7.MERCHANDISE PRESENTATION
COLOUR

HORIZONTAL:

Customers are in their ways (happens at large back walls)

Not all colours are visible from distance.

Use rainbow scheme - from bright colours (left) to dark colours (right).

VERTICAL:

The whole range of colours is visible customers can easily serve themselves.

From above (bright colours) - downwards (dark colours).

ZIK-ZAK:

Looks very exciting. With folded merchandise never use more than three colours per unit!
8.In Store Display

In-store Displays Include:

Focal Points & Clusters


Column Visuals
High Points

9.Common Visual Area


Common Visual Areas include:-
Baggage Counters
Cash Counters & CSD\
Trial Rooms
Others

SUPPLY CHAIN MANAGEMENT


Pantaloons Retail India Ltd.

Category Logistics Operations

Category

Category play crucial role, they do agreement with vendor, so that vendor start to send their
consignment as per the agreement. Category team raise Purchase order as per the requirement of
each and every store.

They finalize all margins with vendor and supply up to what extent. They are responsible for
each & every problem before & after delivery till that consignment being inwarded into the
system.

Logistics

Important task done by Logistics people at store level

1- Received stock from warehouse.

2- Received stock directly from vendors against the purchase order.

3- Received stock from vendor on performance basis of (VC) without Purchase order.

4- Proper planning of inventory.


5- Maintain NSM records on daily basis.

6- Reverse Logistics.

7- Proper Coordination with city warehouse and commercial office.

Major achievements

Pantaloons earlier formats Pantaloons (departmental store), Big Bazaar (hypermarket), Food
Bazaar (Food supermarket) and Central (mall) together accounted for over 250 stores as of
March 2008.

In the specialty retailing segment, Pantaloon is witnessing significant growth in the home
retailing segment. Home retailing includes formats such as Home Town, Home Bazaar,
Collection I, Furniture bazaar and E- Zone. Revenues from this segment have tripled to Rs 711
crore in the nine months ended March.

Pantaloons stand-alone operation is well placed to record a 35 per cent annualised growth rate
over the next five years.

Pantaloons revenues increased 57 per cent on the back of expanding retail space and improving
performance of existing stores. Same-store sales growth, which measures the performance of
stores that have been in operation for at least a year, have slowed down significantly.

Pantaloon, which sources its cereals and pulses from mills and perishable foods from
concessionaries, has now set up a subsidiary Pantaloon Food Product to participate in the
supply chain, by setting up collection centres, importing fruits and so on.

The joint-venture with Liberty Shoes for footwear retailing, association with Unitech Enterprises
for home solutions retailing, and the stake it has acquired in Planet Sports and Galaxy
entertainment, reflect its efforts to rope in those with category expertise.

FUTURE PLANS
Of the offer proceeds, Pantaloon would spend Rs 40 crore in setting up three Pantaloons
and ten Big Bazaars and Food Bazaars by FY-07. It is also earmarking close to Rs 70
crore to fund strategic acquisitions and alliances that would enable it to enter new
categories. If it does not find suitable acquisition targets, it would deploy the same
towards additional expansion.
While the offer would raise only Rs 225 crore, Pantaloon has mapped out a Rs 500-crore
expansion plan over the next two/three years. With its gearing at comfortable levels, it is
well-placed to tap debt to fund the rest of its expansion. The management expects to have
a retail space in excess of six-million square feet by June 2007, with Big Bazaars and
Food Bazaars taking the lead in terms of the number of stores.

Its plans are to launch a chain of beauty parlors on the one hand and retail
communication products on the other.
Even as the mix of lifestyle stores, which deliver higher margins, and value stores, is
likely to be more equitable, Pantaloon will continue its thrust on the foods business, as
food and grocery has the largest share of the Indian consumer's wallet

SWOT ANALYSIS OF PANTALOONS

STRENGTHS

Pantaloons have wide range of products with better quality and price.

Creativity in design and customer centric approach..

high investment in R&D.

good relations with associated parties like suppliers and other associated companies.
Abundance of loyal customers.

programs running at the store level to motivate and enhance communication and
cooperation among staff members..

Focus on private brands.

WEAKNESSES

Competitors have wider range of the product.

Long exchange process, which waste the time of customers.

Lack of work force.

Communication Gap between employee and customers.

Middle class customers have more tendency of exchanging products which leads to
wastage of time and efforts.

Conversion level is very less.

OPPURTUNITY

More consumers preference for retail shopping, because of better quality and prices

Pantaloons provide better services to their loyalty programme members..


More investments in machineries, men and in management to improve quality standards.

By diversifying its product portfolio it can gain more no. of customers.

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.

Expansions in the product range and value addition.

Increase in disposable income level of the customers.

Pantaloon is moving to tier-2 cities.

Rural Retailing: India's huge rural population has caught the eye of the retailers looking
for new areas of growth.

THREAT

Competition is getting more intense

Pricing pressure.

More variety of products range offered by competitor.

Pushing private labels, in segments that have been dominated by brands would pose a
challenge for its merchandising department.
It is still early days for some of the newer formats such as MeLa and aLL and the lack
of strong customer response to these formats is a big risk to cash flows

RESEARCH METHODOLOGY

Type of research

The type of research undertaken in the project is.

A. Descriptive research
B. Analytical research

Descriptive research: - It includes survey and fact finding enquirer of different kinds. Its
main purpose is description of the state of affairs as it present. The main characteristic of this
method is that research has no control over variable; he can only report what has happened or
what is happening. Here basically survey methods of all kinds, including comparative,
correlation methods.

Analytical research :- The researcher has to use fact or information already available and
analyses these to make a critical evaluation of the material

2. Research instrument:-

The research instrument being used in this research project is Questionnaire

3. Research approach:-

The research approach followed is survey conducted in the store.

Sampling design

1. Type of Sampling:
Complex random sampling has been adopted for this research. Under which we have considered
cluster sampling, because here a small cluster of professionals has been considered out of the
total universe which has been divided in to small clusters.

2. Sample Size:

Sample size refers to the number of items to be selected from universe to constitute a sample.
The sample size should be optimum i.e. neither too large nor too small.Thus, the sample size
undertaken in this research is of 100 samples.

3. Sample Area:

The sample area refers to the universe to be studied under our research project. The area denotes
the place or the region to be studied and taken into research consideration.

Thus, the sample area chosen for this research project is Indore region.

Data Collection

The task of data collection begins after a research problem has been identified and the research
design has been chalked out. While deciding the method of data collection to be used for the
study, the researcher should keep in mind two types of data:

a. Primary data
b. Secondary data

Primary Data

Primary data are those which are collected afresh and for the first time, and thus happens to be
original in character. Information or the data represents findings the researchers obtain directly
from the core respondents. They generally tend to involve direct contact with groups of
endusers, with the intention of collecting information, which has not been previously recorded or
collected
The researcher has to collect primary data afresh from specified study undertaken by him/ her.
The researcher collects primary data through two methods:

a. Observation
b. Survey

Secondary Data:

Secondary data are those which have been collected by someone else and which have already
been passed through the statistical processes. It is always in the fitness of things to look into
sources of secondary data before collecting primary data. Extensive savings, in the time and
money terms may be enjoyed, the embarrassment of collecting information already available
will be avoided and primary research, if needed can be left to update so as to refine the
secondary data being collected.

In this research project the data being collected is as follows:

Primary Data:

Questionnaire

Secondary Data:

Magazines

Newspaper

Websites

ANALYSIS AND INTERPRETATION OF THE QUESTIONNAIRE.


OBJECTIVE-Through the analysis of this questionnaire, the image of pantaloon in the eyes of
the customers will be clearer. Here, in this questionnaire several question related to many
attributes like price range, promotional activities, shopping frequency has been asked and the
respondents were asked to compare pantaloon among its competitors on the basis of these
attributes. Here, below the results has been shown with the help of pie charts and bar charts, and
the interpretation has been done.

Q.1. .HOW OFTEN DO YOU SHOP FROM ORGANISED RETAIL?

ANSWER :

INTERPRETATION-Among all the respondents 31% said that they shop once in a fortnight,
while the same no. of the respondents said that they shop once in a month, while some other
shops during some special occasions or very rarely.

Q.2. ACCORDING TO YOU WHICH IS THE MOST HAPPENING [FAMOUS] STORE?


INTERPRETATION-Respondents has given nearly equal weightage to all the stores but among
them also pantaloon is as the 2nd rank which shows that despite the fact that it is more
concentrating on the middle class it is also appreciated by the customers those who like to
purchase lifestyle brands just because at pantaloon they find a blend of both lifestyle as well as
value based products.
Q.3. WHICH STORE HAS MOST AFFORDABLE CLOTHES?

INTERPRTATION- Most of the respondents said that pantaloon is providing them quality
apparels at low prices as compared to its competitors, which make it their favorite shopping
destination. So here, it can be said that pantaloons competitive edge among its competitors is
because of the reasonable prices of its products.
Q.4. DO YOU HAVE MEMBERSHIP WITH ANY STORE AMONG THE FOLLOWING?

ANSWER

INTERPRTATION- 21% of the respondents said that they have membership of loyalty
programme of pantaloon. It shows that pantaloon has been successful in providing additional
benefits to its regular customers, and it has been successful in communicating its offers to the
customers. Above 50% of the total sales at pantaloon comes from these customers only.
Q.5. YOU HEARS/SEE ADS/PROMOTIONS ABOUT:

ANSWER

INTERPRTATION- 25% of the respondents responded that they hear/see ads about pantaloon,
which is nearby or more than its competitors, it is the result of promotional activities done in
aggressive manner by pantaloon.
Q.6. FROM WHERE DO YOU COME TO KNOW ABOUT PANTALOON?

ANSWER

INTERPRTATION- Nearly 48%respondents replied that they were asked to shop at pantaloon by
their friends or family members, behind the increasing sales of pantaloon. This type of publicity
has acted as an important factor. So it can be said quality speaks itself. Pantaloon is
successfully catering its customers thats why they are doing repeat purchases and motivating
others also to have shopping experience at pantaloon. This is a good sign for the company as it is
Q.7 BEST THING ABOUT THE STORE THAT MOTIVATES YOU TO SHOP HERE:

INTERPRTATION- About 34% respondents said that they come to shop at pantaloon because
here they get quality products at reasonable prices.16% said shopping options is the factor that
pulls them to pantaloon to shop.20% of respondents came here because of superior services at
pantaloon. Brand loyalty of 15% respondents towards pantaloon brings them here to shop. Rest
15% is coming here because they are attracted by the extra benefits which they get in pantaloon.
Q.9 DO YOU GET ADEQUATE SHOPPING OPTIONS HERE IN PANTALOON?

ANSWER

INTERPRTATION- 81% respondents said that they get sufficient options in pantaloon. While
19% of them suggested to diversify the offerings. Here it can concluded that however pantaloon
has been successful in catering to the customers, but still there are some points which are left to
be worked upon regarding the product offerings.
Q.8. FROM HOW LONG ARE YOU SHOPPING HERE IN PANTALOON?

INTERPRTATION- The chart shows that pantaloon is having abundance of loyal customers.

Repeat purchases by these customers play a vital role in increasing the sales of pantaloon. This
group of customers helps pantaloon to get competitive edge over its competitors. This is the
result of customer centric approach, and first mover status of pantaloon. 26% of the respondents
said that they are shopping in pantaloon from a year ago, which shows that pantaloon has
successfully altered its strategies to cope up with the changing environvent.
Q.10 PLEASE RATE PANTALOON, SHOPPERS, WESTSIDE, LIFESTYLE, GLOBUS (On
the basis of attributes like Price Range, Collection, Customer Services, Extra Shopping
Benefits).

ANSWER
INTERPRTATION- 51% of the respondents ranked pantaloon on the top among its customers
(in terms of affordable price range, collection available, customer service, shopping benefits
etc).it means that allover performance of pantaloon is being recognized and appreciated.

Q.11. .WHAT MORE ARE YOU LOOKING FOR FROM PANTALOON?

ANSWER

INTERPRTATION- About 43% of the respondents said that some more product offerings should
be there in pantaloon stores. (right now pantaloon mainly sale apparels, jewellary, accessories,
beauty products from its stores).

Respondents were of the view that they should also get range of other products like household
products; mother care products etc. which will enhance the attractiveness of pantaloon. However
pantaloon is working in this direction as it is opening its speciality outlets like all but it should
also reach to the knowledge of the customers.

FUTURE PROSPECTS IN RETAILING

Organized retail market in India is expected to reach US$ 50 Billion mark by 2011.
Number of shopping malls is expected to increase at a CAGR of more than 18.9%
from 2007 to 2015.

Rural market is projected to dominate the retail industry landscape in India by 2012
with total market share of above 50%.

Organized retailing of mobile handset and accessories is expected to reach close to


Rs. 5000 Crore by 2010.

Driven by the expanding retail market, third party logistic market is forecasted to
reach US$ 20 Billion by 2011.

Apparel, along with food and grocery, will lead the organized retailing in India. AT
Kearney has estimated Indias total retail market at US$ 202.6 billion which is
expected to grow at a compounded 30 per cent over the next five years.

With the organized retail segment growing at the rate of 25-30 per cent per annum,
revenues from the sector are expected to triple from the current US$ 7.7 billion to
US$ 24 billion by 2010.
The share of modern retail is likely to grow from its current 2 per cent to 15-20
percent over the next decade.

Over next two years India will see several Indian retail businesses attaining a critical
mass as growth in the industry picks up momentum driven by two key factors:

Availability of quality real estate and mall management practices

-Consumer preference for shopping in new environments.

Wal-Mart: huge plans for India. Moving a senior official from its headquarters in
Bentonville, Arkansas, to head its market research and business development functions
pertaining to its retail plans in India.
New York-based high-end fashion retailer Saks Fifth Avenue has tied up with
realty major DLF Properties to set up shop in a mall in New Delhi.

Tommy Hilfiger, retailer of apparels, expects to open one store each in Delhi,
Ahmadabad, lucknow and Bangalore in the next four months.

CONCERNS:

68 million square feet of mall space is expected to be available by end of 2007, which
might lead to over-capacity of malls

Lack of differentiation among the malls that are coming up. (One option may be to
look at specialization).
Poor inventory turns and stock availability measures - retailers clearly need to augment
their operations.

Operations of retailers and suppliers are not integrated. Efficient replenishment


practices practiced in the Indian auto and auto-component industry can be leveraged to
implement efficient supply chain management techniques.
Supplier maturity, in terms of adherence to delivery schedules and delivering the
quantity ordered, is an issue

Sales tax laws - lead to retailers having state-level procurement and storage leads to
Indian retailers having higher inventories. VAT has helped alleviate this a bit.

Increased adoption of IT and shrinkage management will be a critical area.

Supply chain and customer relations followed by merchandising, facilities management


and vendor development are areas which have significant gaps and proactive training is
a key imperative for overcoming these.

MAJOR FINDINGS:

1. Pantaloon is using low prices as a hook to attract the middle bulk of the customers.
2. Quality products at low prices are its U.S.P which makes it stand out among its
competitors like shoppers stop, globus, and lifestyle etc.
3. Advantage of being first mover-
It has got a large no. of loyal customers, whose repeat purchases are contributing
a lot to its total sales.
Also it got economies of scale, before the competition became intense, which
helped it to survive and grow.
Its early approach to the market and hence gained experience allows it to expand
at fast rate.
4. Emphasis on private brand allows it to sustain in the market in profitable manner.
5. Superior quality service has played a vital role in retaining old customers, and attracting
new one.
6. Innovations done on the basis of customer insight also helped a lot it, in being successful.
7. Lack of bargaining options still forbades lower middle class customers to shop from
organized retail market.

RECOMMENDATIONS

1. Customers requirement of diversification of product offering should also be taken in


consideration.
2. The company should emphasize on private brands which are contributing the most in its
profits.
3. In accordance to the market situation in India (price-sensitivity) pantaloon can reach to
incredible heights by providing value to customers.
4. Pantaloon should more focus on tier-2 cities also like Chandigarh, pune, rather than
focusing on metro cities only.
5. Pantaloon should aggressively promote its new formats, like aLL and mela etc.
6. Pantaloon should focus on being first mover in developing innovative ideas for serving
customers.
7. Some of the pantaloons products like men ethnic section are very different and
advantageous for it and it is suggested to keep focus on it.
8. Every possible effort should be made to avoid shrinkage at the store level.
9. Pantaloon must do a good job of managing their inventory levels, personnel needs, and
style/fashion trends to ensure they will not lose their consumers business during up and
down periods.
10. The company should also focus on demographic shifts that will help it to alter its
strategies in accordance to the changing strategies.

CONCLUSION

Competition in retail industry is getting tough day-by-day. By seeing more growth prospects in
this industry many Indian and foreign companies are entering into it. To survive and grow in this
competitive industry the company has to differentiate itself among its competitors. Companies
will have to look once more at its strategies in order to become successful. Customer centric
approach is required to be applied because ignorance to customer needs will lead the company to
nowhere. A deep study of the environment supposed to be done. Due to large no. of competitors
the company should try to be first mover in some particular segments and reactive actions should
also be taken care of. An eagle eye should be kept on Government restrictions, demographic
movements, and competitors strategy because these factors affect a companys ability to serve
its targeted customers. Intelligent analysis of internal and external factors and making changes
thereon can take the company to incredible heights.
BIBLIOGRAPHY

BOOKS

Marketing Management by Philip Kotler


Strategic Management by Ireland, Hoskisson, Hitt
Competitive Advantage by michael e. porter
Strategic Marketing Planning by Collin Gilligon

WEBSITES

http://www.pantaloon.info
http://www.pantaloon.com
http://www.futuregroup.com
http://www.retail.com

NEWSPAPERS

Mint
Times Of India

JOURNALS

Business Today

ANNEXURE

QUESTIONNAIRE:

Q1.how often do you shop from organized retail?

A. Once in a week
B. Once in a fortnight
C. Once in a month
D. Occasionally
E. Rarely

Q2.according to you which is the most happening [famous] store?

A. Pantaloon
B. Lifestyle
C. Westside
D. Globus
E. Shoppers stop
Q3.which store has most affordable clothes?

A. Pantaloon
B. Lifestyle
C. Westside
D. Globus
E. Shoppers stop

Q4.do you have membership with any store among the following?

A. Pantaloon
B. Lifestyle
C. Westside
D. Globus
E. Shoppers stop

Q5.you hears/see ads/promotions about:

A. Pantaloon
B. Lifestyle
C. Westside
D. Globus
E. Shoppers stop

Q6.from where do you come to know about it?

A. Friends
B. Family
C. Media
D. Pamphlets
E. Others.

Q7.best thing about the store that motivates you to shop in any retail store :

A. Affordable price range


B. Collection.
C. Customer service
D. Additional benefits (schemes, loyalty programmes etc.)
E. Brand loyalty
Q8.from how long are you shopping here in pantaloon?

A. From few weeks.


B. From last few months.
C. From a year ago.
D. From years ago.
E. Dont remember.

Q9.do you get adequate shopping options here in pantaloon?

A. Yes
B. No

Q10.please rate pantaloon, Shoppers Stop, Westside, lifestyle, Globus on points below:

A. Price range
B. Customer service
C. Benefits
D. Additional benefits
Q11.what more are you looking for from pantaloon?

1. Affordable prices.
2. Complete collection.
3. Better customer services.
4. Some more shopping benefits.

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