Kirloskar Institute of Advanced Management Kirloskar Institute of Advanced Management Studies Studies

Retailing & Franchising Initial Project Submission

RETAILING & FRANCHISING

Pantaloons Vs Westside

Final Project Submission

Pantaloons Vs Westside

Submitted ToProf. Bidyananad Jha

Submitted ByPavan S.G. (58) Rajesh Kumar (67) Shikha Gupta (83)

Pantaloons and Westside

Formats of both the retail outlet:

Retailer Pantaloon Retail Original Format Small format outlet (Shoppe) Department Store (Pantaloon) Department Store (Westside) Later Format Supermarket (Food Bazaar) Hypermarket (Big Bazaar) Mall(Central) Hypermarket (Star India Bazaar)

Tata/ Trent

Rationale for the selection of project topic: The Indian retail sector is ranked as one of the worlds most exciting retail destinations. It comprises of 13% GDP and employs 6% of the nations workforce. The organised sector in India is only 6 to 8 percent and a high growth is witnessed in this sector. According to the consulting firm A T Kearney, the total retail sector in India is of $450 billion out of which 80% is run by un-organized sector. Both of the Retailers i.e. Pantaloon Retail (India) Limited and Westside we have chosen for analysis, fall under the category of organized retail in India and mostly known for apparel. Presently the share of organized retail in merely 4-6 % and is expected to grow drastically soon. Below is the customers aspiration pyramid out of organized retail (Apparel)

Pantaloons

In 1987, Pantaloon was incorporated as Manz Wear Private Limited. In the same year, the company launched Pantaloons trouser. In 1991, Pantaloon launched BARE, the jeans brand. The company made its initial public offer in the following year. It also started Pantaloon Shoppe, a franchised menswear store across India in 1994. In the same year, Pantaloon initiated distribution of branded garments through multi-branded retail outlets throughout India. In 1995, it launched John Miller, the formal shirt brand. In 1997, Pantaloon launched a family store, Pantaloons, in Kolkata, India. Pantaloon Retail, the group operates over 12 million sqare feet of retail space in over 71 cities and towns and 65 rural locations across India. The group owns several leading formats including Pantaloons, Big Bazaar, Food Bazaar, Home Town, eZone and Central. Pantaloons is among Indias largest chain of fashion stores. Pantaloons Fresh Fashion, with its focus on fresh and attitude offers, trendy and hip collections that are in sync with the hopes and aspirations of discerning young and young-at-heart consumers. All stores have a variety of categories like casual wear, ethnic wear, formal wear, party wear and sportswear for men, women and kids.

Retail format at Pantaloons: ntaloons:

Customer Service

Store Design & Display

Merchandise Assortment

Retail Strategy

Pricing

Location

Communication Mix

Store Location:
Pantaloons is located in posh locality in the centre of the city. Further the easy availability of transport facilities makes the location accessible for shopping. They are now targeting to Tier II and Tier III cities along with Tier I and metros.

Merchandise Assortment:
Pantaloons follow category management in its day to day merchandising practice. Category managers look at sales and margins of each brand in a category. It creates product across length and breadth of a category at different price points, fabric design, shape, seasons, colour and size. f

Pantaloon s Non Pantaloon s Brands

Pantaloon s Brands

Men's

Women's

Men's

Women's

Formals

Ethnic

Formals

Casuals

Formals

Casuals

Formals

Casuals

Ethnic

Pantaloons follow a free form store layout where no particular format is followed and anything is placed anywhere but strategically. Pantaloons fall under the following category Departmental following stores, Malls, e-retailers. The arrangement of the clothes in retailers. Pantaloons is done in such a way that same type of clothes are put up together in different sizes so that same clothes are available for every size at one point only.

Ambience:
Generally the stores exterior is designed in such a way that it announces what it has and what can a customer expect inside. The interior of the store tries to give a sense of comfort and cozy feeling to its visitors. The flooring and ceiling creates the sophistication and the lighting, color, fragrance and music adds to its ambience to create a feeling of store security. These factors helps to not only attract the customers but also keep then within the store for a longer time. Other than these they have display areas where they have dummies, accessories and other stuff which creates a curiosity and need in the mind of the customers walking in.

The type of customers:

They target at different segment of population in terms of income and age group. Their main customers are the fashion freak with an emphasis on the youth. They offer discounts on both branded and non branded items.

Westside

The Westside story really began in 1997, when the Tatas sold Lakme, their cosmetics business, to

Hindustan Lever and acquired the Britain-based Littlewoods retail chain. Westside operates in an area ranging from 8000 34000

sq ft in 31 cities with a total of 59 departmental stores. Westside is one of the Indias fastest growing chains. It has several departments to meet the varied shopping needs of the customers which include mens wear, womens wear, kids wear, footwear cosmetics, perfumes and handbags, household furniture accessories, lingerie and gifts. Westside stands out from the competition for a variety of reasons. One is that a majority of the brands the chain stocks and sells are its own, unlike retailers who store multiple labels. About 90 per cent of Westsides offerings are home-grown, and they cater to different customer segments. The other 10 per cent includes toys, cosmetics and lingerie.

Store Location:
Westside has different types of location through which it can reach the customers at its best. They try to be present in most of the malls and shopping centers. The company has already established 49 Westside departmental stores (measuring 15,000 - 30,000 square feet each) in Ahmedabad, Bengaluru, Chandigarh, Chennai, Delhi, Gurgaon, Ghaziabad & Noida (to be considered as 1 city), Hubli, Hyderabad, Indore, Jabalpur, Jaipur, Kanpur, Kolkata, Ludhiana, Lucknow, Mangalore, Mumbai, Mysore, Nagpur, Nashik, Pune, Raipur, 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.

Ambience
Here the ambience is good and as comfortable as other outlets like Pantaloons. They have a policy for their store employees that they will serve customers standing. The Westside outlets in Mumbai and Hyderabad have an additional drawing card: Taj Cafs that serve delicious pastries, sandwiches and coffee.

Type of customers

The customers targeted by Westside are mainly middle class. They keep product both branded and private label. They also run discount schemes to attract more and more customers. They also have designers wear and are known as fashion store with which they target the youth.

Merchandising Planning, category of Merchandise, Variety & assortment. Merchandise Pantaloons apply the concept of category management in its day-to-day merchandising function

as against the traditional brand management merchandising practice followed by most retailers. Category managers, in Pantaloons, look at sales and margins of each brand in a category. The whole idea of category management is to create products across length and breadth of a category at different price points, fabrics, design, shape, seasons, color and size. They are characterized by a broad variety, deep assortment. The Category manager develop a

merchandising strategy for the category taking into consideration customer profile, classification, resource structure, vendors, fashion trends, items and price points. The category manager visit stores regularly to check assortments of merchandise displays, stock levels and old season merchandise, consult with team leaders and sales

people on problems and suggestions. Although no concrete information was provided with respect to the ways of forecasting the sales and inventory planning, it was highlighted that a buffer stock of approximately 10-12% of the total stock is maintained in the store.

Display Areas, Walkways & doors

Pantaloons stores have very attractive display areas, in which they put the dummies, accessories & all. They have a broad walkway & doorways. Also there are small screens put up at various corners which are most visible, and which they show case ads of their own as well as other brands available there. Here each racks are placed in such a way so that consumers can easily take their wanted products. Pantaloons have their own in house brands in Apparel as well as different sections. Pantaloons visual merchandising is creative, innovative and outstanding which can be seen from its own in house private brands such as John Miller. All the merchandise is placed at both 360 degree and 180 degrees. The new launched products are showed by prominent color back ground. Window display is highly interactive for impulsive buyer. Retail management assignment on pantaloons retail India limited. Pantaloon Retail (India) limited has a wide merchandising. It keeps own label as well as private label in its store throughout the India.

Categories and private labels

S. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Private Label Pantaloon trouser Bare Denim John Miller Shrishti Scotville Scotville Annabelle Agile Mix n match Honey Akkriti Lombard Trishaa UMM Ghagroos Remanika Urban Yoga Jealous

Category Men's wear Jeans, Knitwear, Gabardine, Jackets and other accessories Shirts Ladies wear Winter wear, sweaters and blazers Ladies western wear Ladies western wear, formal wear Sports wear Buying separates and combining Western wear brand for young girls Men's ethenic wear Classic English formal wear Stiching salwarkammez Trendy sports and utility wear Men's ethenic wear Ladies wear, Kurties Men's wear Girls wear

Assortment and Variety

Pantaloons typically fall in the High Assortment High Variety quadrant. Although the assortment and variety in each of the categories is high, depth is emphasized upon in case of core merchandise categories such as mens formal wear, mens casuals and sportswear. Conversely, the typical fashion apparels and accessories are dominant on the Width front.

Westside
Private label

Private label products or services are typically those manufactured or provided by one company for offer under another company's brands. P r i v a t e l a b e l g o o d s a n d services are available in a wide range of industries from food to cosmetics to webhosting. They are often positioned as lower cost alternatives to regional, national or international brands. Westside has many private labels in its merchandise portfolio. Private labels in Westside includes :

1. 2 F 4 U 2. SRC 3. Gia 4. Urban angel 5. Intima 6. David Jones 7. Ascot All these brands are produced for Westside only and can be found in Westside only. These apparel brands are given separate space for displaying their merchandise and more promotional offers are there on them to increase their sales. At some places, these private brands are mixed with branded clothes so in that c a s e t h e s e private labels are put in lower shelves.

Westside has 90 per cent of its merchandise as private label brands and witnessed a growth of nearly 28 per cent in the retail space last year, despite the downturn

At Westside we are not retailing any other garment brands. We stock only our own store brands. This means that all the stuff available is made or sourced by Westside itself and therefore the store label Westside acts as a product label. Only in a few categories such as cosmetics and toys are brands other than Westside present. Those are categories that complement the Westside range. We have positioned Westside on the fashion at affordable pricing plank. By retailing our own Westside brand we are able to eliminate intermediaries and therefore offer better prices. Westside is unique with its own brand of merchandise, which is trendy and individualistic. We cater to the shopper who values not just the product but the total shopping experience. To cater to this need, Westside has its team of in-house designers who design exclusively for the store. All merchandise passes the stringent quality standards that befit everything that carries the Tata name. The products at Westside are not just of high quality and reasonably priced but are contemporary and stylish as well. The stores are divided into many departments -- menswear, womenswear, kidswear, household accessories, gifts, cosmetics, perfumes and other accessories. For women, there are casuals, formals and chic Indian wear. The range has great depth spanning from basic clothing to very trendy wear. Unlike a lot of stores, the range at Westside caters to a wide age group and takes into account differing tastes and requirements. We offer accessories as well, such as handbags, jewellery, scarves and hair accessories. In menswear, the range goes from formal to casual and sporty. And, pricewise, it extends from the value to the premium segment. Kidswear at Westside is designed to follow international trends; it is uniquely styled, whether you opt for the dressy, smart or casual. The household section is extremely contemporary. Westside is open on all days of the week. Most international brands are expensive. Westside felt that there was room for an Indian brand based on international fashion. Another reason was the increasing popularity of readymades, which offer greater convenience, more choice in designs, style and originality.

The most important reason is to make fashionable products available at affordable prices. Everyone is exposed to fashion but not everybody can afford it, so we decided to satisfy the middle class markets fashion needs.
Analyze the two formats on the basis of Customer Service & Customer relation Management.
CRM Systems: Data warehousing & mining technologies offer consumer data and apply it to business. This, along with the various available CRM (Customer Relationship Management) Systems, allows the study of the buying behavior of consumers in detail and grows the value of individual consumers to their businesses. SAP implementation is not a single phase process. The project was divided into three phases. The first phase involved blueprinting existing processes and mapping them to the desired state. In this phase, the entire project team worked on current processes within the structure of the organization, analyzed and drafted them. This blueprint was later used in the formation of new states of the solution. Since the SAP would combine all the processes, each and every one of these had to be evaluated. In the second phase, the SAP platform was developed with the help of Nova softs template which was predefined by SAP after evaluation of Pantaloons needs and expertise in retail solutions. The last phase in this project was for stores to switch over to the new system and for current data to be ported. Before the SAP implementation, all the data was unorganized. This data had to be migrated to the new SAP application.

At pantaloons, they use various loyalty plans to attract and retain the customers. They treat their customers very respectfully and try not to leave any customer unattended.

The various plans run under customer service management are-

Pantaloons greencard The Pantaloons greencard membership is free. This means you need not shop for a certain amount or pay a nominal fee to get a GC membership. All you have to do is fill up a simple form and list your choices, which would help Pantaloons, keep customers informed on any offers that may of interest to them. Pantaloons greencard offers benefits like:

Instant discounts Complimentary Parking Complimentary Home Drop (after alterations) Relaxed Return Policy (90 days) Complimentary shipping across India Exclusive Sale Preview

And this is not all. For 3/5/7 star GC Members, in addition to all this, they will have exclusive billing counters and a complimentary home delivery. And 7 Star GC members can look forward to Assisted Shopping anytime they wish to do so at any of our 51 outlets across the country.

Payback Loyalty PAYBACK is Europe's leading customer loyalty program, headquartered in Germany, with a total of 25.5 million active cardholders in Germany and Poland. In India, PAYBACK consolidated its position after taking a major stake in I-Mint. Today, with more than 30 partners with 1,500 outlets and 10 million card members, its the only program which works with market leading pan-India players from the banking, travel, petroleum and online sectors such as ICICI Bank, HPCL, Univercell, BookMyShow and MakeMyTrip. Now that Future Group has become a part of this bandwagon, customers are bound to earn points at every step from formats like Big Bazaar, Food Bazaar, Pantaloons, Central, Home Town,

eZone,etc These points can then be redeemed for air miles, movie tickets, air tickets and vice versa.

T24 program T24 will provide customers with a dual advantage all 24 hours of the dayShop More, Talk More and Talk More, Shop More. Shopping and talking on our mobile phones are among the two favorite activities for all of us in India. With T24, we have been able to develop a unique customer value proposition that combines these interests of the aspirational Indian. Customers will get shopping benefits for talking and talk-time benefits each time they shop. They believe that with their partners, Tata Teleservices Limited, they have been able to develop a differentiated offering in the crowded telecom space and also increase the loyalty they enjoy among the millions of customers who patronize our stores. T24 (Talk 24) tariff plans reflect the competitive per-second rates being offered for pre-paid customers on Tata Teleservices Limiteds GSM network. In addition, customers will be rewarded with free talk-time for every purchase above Rs 500 made at Future Group shopping outlets. For example, a T24 customer buying products worth Rs 2,501 at Pantaloons or EZone will stand to gain 50 minutes of free talk-time. Also, a customer spending Rs 1,501 in Big Bazaar will gain 90 minutes of free talk-time for every purchase. Plans will keep evolving to offer evermore attractive options to the customer.

Westside
Customer loyalty plan and customer relationship is one of the most primary activities in tata Westside. Employees are trained to attend the customers in the most appropriate way. It is

ensured that all the touch points are well managed. They emphasize on employees training about the well conduct with customers. In Westside, employees are not allowed to sit and hence most often they stand and attend the customers. They have various loyalty plans to retain the old customers and also to gain the new customers. They have a help desk at the corner of their outlet to register the complaints faced by their customers. Employees make sure that no customer is left unattended.

In Tata Westside, given below is one of their customer loyalty plan, which they are running currently

Branding the retail outlet. Westside started with taglines like Surprisingly Affordable Price and then Keep your style alive. They started with loyalty program in May 2001: Clubwest which has a Customer base of 50000(approx) in Hyderabad. Its contribution to sales was 60%. Currently it is operating in 29 stores with style and reasonable prices, supported by quality. 1. Club west card program An assured return-and exchange policy reinforces customer confidence in the chain. Another winning Westside idea is Club West, a customer loyalty programme launched in May 2001. The 50,000 plus members of this club get rebates at restaurants and on holiday packages from the Taj Group of Hotels, home delivery of alterations, and best of all, special shopping hours on the first day of any discount sales event organized by the chain. Important benefits of club west card Most attractive rewards shopping Instant use of the card Easy to operate Extra convenience Validity at all stores Westside does its regular brand building through advertisements in the media with brand ambassador Yuvraj Singh and other young models; more importance its in-house promotions, which peak during the three main festive seasons: summer, Diwali and Christmas. The promotions are mostly theme based, withdecorations to match, live bands and other attractions

2. Fashion Logy Westside has launched a new ad campaign title Fashion Logy. The campaign is designed to provide the buyer with not just clothing, but also guides and aid on dressing smart, styling and accessorizing. The campaign sees on-ground activities and promotions designed to interact with the consumer about their style. It includes womens corporate wear, girls wear, and glam denim Promotion during different seasons: Sty stylish this monsoon with Westside Buy 2, get 1 free Back to college offer on Youth Wear Jungle Safari promotion offer on kids stuff Flirt with Formals this summer

ESTSIDE

At Westside, we have always believed in providing our customers with the finest shopping experience. Now, we've made shopping with us a rewarding experience too! Introducing CLUBWEST an extraordinary rewards program designed exclusively for Westside regulars like you. To get a Club West membership, contact the Clubwest desk at the nearest Westside store.

Pantaloons retail (India) Limited Pantaloons uses various vehicles Integrated Marketing Communication modes form its branding. Pantaloon at facebook Pantaloons is coming up with various print advertisement such as

These fancy print advertisement make a good appeal among the mid age youths of India. These advertisements depict the independency and independence of oneself. These appeal to do what you want to do. Pantaloons also organizes the fashion party and fashion contest to promote its brand among the youths and other section of society and this way it also shows its new collection to public and as well as this become a good public relation medium for the brand.

This is one of the picture of femina miss India 2009 organized by pantaloon Retail (India) Limited.

Recommendations and suggestions

Pantaloons need to improve so that it can

accommodate more kind of product and also provide space for children coming with the parents to have fun and to play.

Pantaloons should incorporate more variety of

products in its basket so that it provides the convenience of availability of all things under one roof its customers. Variety of product should specially be increased in traditional wear for women, footwear,

jewelries, cosmetics and more varieties in watches and more varieties in sizes in jeans and shirts. Pantaloons should have a sitting area so

that people can stay longer. Westside should increase range of selection

of brands (National & Private) Westside should provide more facility for

its employee so that their retention rate can be increased and hence happy employee can serve customers better. customers can be attracted. Westside should keep merchandizing so

that higher as well as mid range income level

Bibliography
http://pantaloon.futurebazaar.com/indexPantaloon.jsp http://www.pantaloonretail.in/ http://www.pantaloonretail.in/businesses/pantaloons-retail.html http://www.facebook.com/pantaloons http://feminamissindia.indiatimes.com/ http://www.mywestside.com/Home.aspx http://www.skylinecollege.com/blog/dissertation/a-comparative-analysis-of-westside-vs-pantaloon