Project report on Pantaloon

Table of Content

Particulars Page no.

1. Introduction to Retail Industry. 2

2. Evolution of Pantaloons. 6

3. Growth of Pantaloons. 8

4. Retail Strategy. 11

5. Process & support function. 19

6. Future Growth plan of the company. 23

7. Comparison with Pantaloons. 24

8. Conclusion. 26

9. Bibliography. 26

10.Questionnaire. 27

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Introduction of Retail Industry:-

Retail consists of the sale of goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be individuals or businesses. In commerce, a "retailer" buys goods or products in large quantities from manufacturers or importers, either directly or through a wholesaler, and then sells smaller quantities to the end-user. 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 overall distribution strategy. The term "retailer" is also applied where a service provider services the needs of a large number of individuals, such as a public utility, like electric power.

Shops may be on residential streets, shopping streets with few or no houses or in a shopping mall. Shopping streets may be for pedestrians only. Sometimes a shopping street has a partial or full roof to protect customers from precipitation. Online retailing, a type of electronic commerce used for business-to-consumer (B2C) transactions and mail order, are forms of non-shop retailing.

Shopping generally refers to the act of buying products. Sometimes this is done to obtain necessities such as food and clothing; sometimes it is done as a recreational activity. Recreational shopping often involves window shopping (just looking, not buying) and browsing and does not always result in a purchase.

One of India’s major retailers with presence in following two segments:

Lifestyle Retailing - Pantaloons, Central, Fashion Station, aLL, MeLa.

Value Retailing - Big Bazaar, Food Bazaar.

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Types of Retail Outlets:-

A marketplace is a location where goods and services are exchanged. The traditional market square is a city square where traders set up stalls and buyers browse the merchandise. This kind of market is very old, and countless such markets are still in operation around the whole world.

In some parts of the world, the retail business is still dominated by small family-run stores, but this market is increasingly being taken over by large retail chains.

Retail is usually classified by type of products as follows:

Food products Hard goods ("hardline retailers") - appliances, electronics, furniture,

sporting goods, etc. Soft goods - clothing, apparel, and other fabrics.

There are the following types of retailers by marketing strategy:

Department stores - A very large stores offering a huge assortment of "soft" and "hard goods; often bear a resemblance to a collection of specialty stores. A retailer of such store carries variety of categories and has broad assortment at average price. They offer considerable customer service.

Discount stores – It tend to offer a wide array of products and services, but they compete mainly on price offers extensive assortment of merchandise at affordable and cut-rate prices. Normally retailers sell less fashion-oriented brands.

Supermarkets - It sell mostly food products. Warehouse stores - Warehouses that offer low-cost, often high-quantity

goods piled on pallets or steel shelves; warehouse clubs charge a membership fee.

Variety stores or "Dollar stores" - These offer extremely low-cost goods, with limited selection;

Demographic - Retailers that aim at one particular segment (e.g., high-end retailers focusing on wealthy individuals).

Mom-And-Pop (or Kirana Stores as they call them in India) - It is a retail outlet that is owned and operated by individuals. The range of

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products are very selective and few in numbers. These stores are seen in local community often are family-run businesses. The square feet area of the store depends on the store holder.

Specialty stores - A typical specialty store gives attention to a particular category and provides high level of service to the customers. A pet store that specializes in selling dog food would be regarded as a specialty store. However, branded stores also come under this format.

General store - A rural store that supplies the main needs for the local community.

Convenience stores - It is essentially found in residential areas. They provide limited amount of merchandise at more than average prices with a speedy checkout. This store is ideal for emergency and immediate purchases.

Hypermarkets - It provides variety and huge volumes of exclusive merchandise at low margins. The operating cost is comparatively less than other retail formats. A classic example is the Metro in Bangalore.

Supermarkets - It is a self service store consisting mainly of grocery and limited products on non food items. They may adopt a Hi-Lo or an EDLP strategy for pricing. The supermarkets can be anywhere between 20,000-40,000 square feet. Example: SPAR supermarket.

Malls - It has a range of retail shops at a single outlet. They endow with products, food and entertainment under a roof.

Category killers or Category Specialist - By supplying wide assortment in a single category for lower prices a retailer can "kill" that category for other retailers. For few categories, such as electronics, the products are displayed at the Centre of the store and sales person will be available to address customer queries and give suggestions when required. Other retail format stores are forced to reduce the prices if a category specialist retail store is present in the vicinity.

E-Tailers - The customer can shop and order through internet and the merchandise are dropped at the customer's doorstep. Here the retailers use drop shipping technique. They accept the payment for the product but the customer receives the product directly from the manufacturer or a wholesaler. This format is ideal for customers who do not want to travel to retail stores and are interested in home shopping. However it is important for the customer to be wary about defective products and non secure credit card transaction. Example: Amazon and E-bay.

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Vending Machines - This is an automated piece of equipment wherein customers can drop in the money in machine and acquire the products. For example: Soft drinks vending at Bangalore Airport.

Some stores take a no frills approach, while others are "mid-range" or "high end", depending on what income level they target.

Other types of retail store include:

Automated Retail – Automates retail stores are self service, robotic kiosks located in airports, malls and grocery stores. The stores accept credit cards and are usually open 24/7. Examples include Zoom Shops and Red box.

Big-box stores – Big-box stores encompass larger department, discount, general merchandise, and warehouse stores.

Convenience store - a small store often with extended hours, stocking everyday or roadside items.

General store - a store which sells most goods needed, typically in a rural area.

Retailers can opt for a format as each provides different retail mix to its customers based on their customer demographics, lifestyle and purchase behavior. A good format will lend a hand to display products well and entice the target customers to spawn sales.

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Evolution of Pantaloons:-

The Company was incorporated on October 12, 1987 as Manz Wear Private Limited. The Company was converted into a public limited company on September 20, 1991 and on September 25, 1992 the name was changed to Pantaloons Fashions (India) Limited and in the same year the Company made an initial public offering. We later changed our name to Pantaloons Retail (India) Limited on July 7 1999.

The Equity Shares of the Company were first listed on BSE, DSE and ASE, on July 30, 1992. Thereafter, the Equity Shares were listed on the NSE on February 20, 2001. The company started his operations by selling branded garments under Pantaloons, Bare and John Miller brands. They set up our first menswear Pantaloons Shoppe Outlet in 1993. The business has grown from one store in Kolkata in 1997 occupying an area of 8,000 Sq. ft. to 72 stores, apart from our 22 factory outlets located in the multiple cities occupying an aggregate area of 21,07,608 Sq. ft. They focus on the Lifestyle segment through 14 Pantaloons stores, 3 Central Malls, 2 aLL, 2 Fashion Station and 1 MeLa store. In the Value offering, they cater to the mass through our 21Big Bazaar and 30 Food Bazaar outlets.

Objects of our Company our objects as contained in our Memorandum of Association include: To carry on the business of manufacturing, buying, selling, exchanging,

altering, importing, exporting, distributing or otherwise dealing in ready made garments an hosiery made of cotton, silk, rayon, wool, nylon, man-made fabrics, polyester, canvas, jute, leather, any other fabric coated with any chemical or not, or other preparation and other fabric.

To carry on the business of manufacturing, processing, dyeing, bleaching, buying, selling, exchanging, importing, exporting or otherwise dealing in yarns and textiles made of cotton, silk, rayon, wool, nylon, man-made fibres, polyester, canvas or any other substances.

To carry on trade or retail business in India through retail formats and including but not limited to hyper markets, super markets, mega stores/discount stores, cash & carry, departmental stores, shoppers plaza, direct to home, phone order and mail order, catalogue, through internet and other forms and multi level channels for all products an services, dealing in all kinds of goods, materials and items including but not limited to food & provisions, household goods, consumer durables, jewellery, home

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improvement products, foot wears, lug gages, books & stationery, health care and beauty products, toys and music, computers & accessories, telecom products, agri input products, furniture & furnishings, automobile & accessories, and acquiring and running food, service and entertainment centers including but not limited to multiplexes, cinemas, gaming centres, amusement parks, restaurants and food courts and acquiring of land or building on lease or freehold or any commercial or industrial or residential building for running and management of retail business and to acquire flats, offices and retail spaces for carrying on retail business and to sell them, lease or sublet them and to undertake and execute civil, mechanical, electrical and structural works contracts and sub contracts in all their respective branches to carry on retailing business.

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Growth of pantaloons-

Pantaloons Retail (India) Limited, is India’s leading retailer that operates multiple retail formats in both the value and lifestyle segment of the Indian consumer market. Headquartered in Mumbai (Bombay), the company operates over 16 million square feet of retail space, has over 1000 stores across 73 cities in India and employs over 30,000 people.

The company’s 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 Brand Factory, Blue Sky, aLL, Top 10 and Star and Sitara. The company also operates an online portal, futurebazaar.com.

Future Value Retail Limited is a wholly owned subsidiary of Pantaloons Retail (India) Limited. This entity has been created keeping in mind the growth and the current size of the company’s value retail business, led by its format divisions, Big Bazaar and Food Bazaar.

The company operates 148 Big Bazaar stores, 169 Food Bazaar stores, among other formats, in over 70 cities across the country, covering an operational retail space of over 6 million square feet. As a focussed entity driving the growth of the group's value retail business, Future Value Retail Limited will continue to deliver more value to its customers, supply partners, stakeholders and communities across the country and shape the growth of modern retail in India.

A subsidiary company, Home Solutions Retail (India) Limited, operates Home Town, a large-format home solutions store, Collection i, selling home furniture products and e-Zone focused on catering to the consumer electronics segment.

Pantaloons Retail is the flagship company of Future Group, a business group catering to the entire Indian consumption space.

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Why Pantaloons Retail India Ltd. ?

Pantaloons Retail is not just an organization - it is an institution, a Centre of learning & development. We believe that knowledge is the only weapon at our disposal and our quest for it is focused, systematic and unwavering.

At Pantaloons Retail, we take pride in challenging conventions and thinking out of the box, in travelling on the road less traveled. Our corporate doctrine ‘Rewrite Rules, Retain Values’ is derived from this spirit.

Over the years, the company has accelerated growth through its ability to lead change. A number of its pioneering concepts have now emerged as industry standards. For instance, the company integrated backwards into garment manufacturing even as it expanded its retail presence at the front end, well before any other Indian retail company attempted this. It was the first to introduce the concept of the retail departmental store for the entire family through Pantaloons in 1997. The company was the first to launch a hypermarket in India with Big Bazaar, a large discount store that it commissioned in Kolkata in October 2001. And the company introduced the country to the Food Bazaar, a unique 'bazaar' within a hypermarket, which was launched in July 2002 in Mumbai. Embracing our leadership value, the company launched aLL in July 2005 in Mumbai, making us the first retailer in India to open a fashion store for plus size men and women.

Today pantaloons are the fastest growing retail company in India. The number of stores is going to increase many folds year on year along with the new formats coming up.

The way we work is distinctly "Pantaloons". Our courage to dream and to turn our dreams into reality - that change people’s lives, is our biggest advantage. Pantaloons is an invitation to join a place where there are no boundaries to what you can achieve. It means never having to stop asking questions; it means never having to stop raising the bar. It is an opportunity to take risks, and it is this passion that makes our dreams a reality.

Come enter a world where we promise you good days and bad days, but never a dull moment!

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Our Culture-

Passion for Retail is why we are here.

At Pantaloons Retail, Empowerment is what you acquire and Freedom at Work is what you get. We believe our most valuable assets are our People. Young in spirit, adventurous in action, with an average age of 27 years, our 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 our 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 Pantaloons Retail and living with the change, a habit.

Leadership is a value that is followed by one and all at Pantaloons Retail. Leadership is the quality that motivates us to never stop learning, stretching to reach the next challenge, knowing that we will be rewarded along the way. In the quest of creating an Indian model of retailing, Pantaloons 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. We do not predict the future, but create it.

At Pantaloons Retail you 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 our core Indian values and yet providing customers with a service, on par with international standards.

At Pantaloons you will work with some of the brightest people from different spheres of industry. We believe it’s a place where you can live your dreams and pursue a career that reflects your skills and passions.

The Indian retail industry is the fifth largest in the world. Comprising of organized and unorganized sectors, India retail industry is one of the fastest growing industries in India, especially over the last few years. Though initially, the retail industry in India was mostly unorganized, however with the change of tastes and preferences of the consumers, the industry is getting more popular these days and getting organized as well.

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Major Retailers in India-

Pantaloons:

Pantaloons is one of the biggest retailers in India with more than 1000 stores across the country. Headquartered in Mumbai, it has more than 16 million sq. ft retail space located across the country. It's growing at an enviable pace and is expected to reach 30 million sq. ft by the year 2010. In 2001, Pantaloons launched country's first hypermarket ‘Big Bazaar’. It has the following retail segments:

Food & Grocery: Big Bazaar, Food Bazaar Home Solutions: Hometown, Furniture Bazaar, Collection-i Consumer Electronics: e-zone Shoes: Shoe Factory Books, Music & Gifts: Depot Health & Beauty Care: Star, Sitara E-tailing: Futurebazaar.com Entertainment: Bowling Co.

Tata Group:

Tata group is another major player in Indian retail industry with its subsidiary Trent, which operates Westside and Star India Bazaar. Established in 1998, it also acquired the largest book and music retailer in India ‘Landmark’ in 2005. Trent owns over 4 lakh sq. ft retail space across the country.

RPG Group:

RPG Group is one of the earlier entrants in the Indian retail market, when it came into food & grocery retailing in 1996 with its retail Foodworld stores. Later it also opened the pharmacy and beauty care outlets ‘Health & Glow’.

Reliance:

Reliance is one of the biggest players in Indian retail industry. More than 300 Reliance Fresh stores and Reliance Mart are quite popular in the Indian retail market. It's expecting its sales to reach ` 90,000 crores by 2010.

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Major Milestones-

1987Company incorporated as Menz Wear Private Limited. Launch of Pantaloons trouser, India’s first formal trouser brand.

1991Launch of BARE, the Indian jeans brand.

1992Initial public offer (IPO) was made in the month of May.

1994The Pantaloons 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.

1995John Miller – Formal shirt brand launched.

1997Company enters modern retail with the launch of the first 8000 square feet store, Pantaloons in Kolkata.

2001Three Big Bazaar stores launched within a span of 22 days in Kolkata, Bangalore and Hyderabad.

2002Food Bazaar, the supermarket chain is launched.

2004Central - India’s first seamless mall is launched in Bangalore.

2005Group moves beyond retail, acquires stakes in Galaxy Entertainment, Indus League Clothing and Planet Retail. Sets up India’s first real estate investment fund Kshitij to build a chain of shopping malls.

2006

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Future Capital Holdings, the company’s financial is formed to manage over $1.5 billion in real estate, private equity and retail infrastructure funds. Plans forays into retailing of consumer finance products.Home Town, a home building and improvement products retail chain is launched along with consumer durables format, Ezone and furniture chain, Furniture Bazaar.Future Group enters into joint venture agreements to launch insurance products with Italian insurance major, Generali. Forms joint ventures with US office stationery retailer, Staples.

2007Future Group crosses $1 billion turnover mark.Specialized companies in retail media, logistics, IPR and brand development and retail-led technology services become operational.Pantaloons Retail wins the International Retailer of the Year at US-based National Retail Federation convention in New York and Emerging Retailer of the Year award at the World Retail Congress held in Barcelona.Futurebazaar.com becomes India’s most popular shopping portal.

2008Future Capital Holdings becomes the second group company to make a successful Initial Public Offering in the Indian capital markets. Big Bazaar crosses the 100-store mark, marking one of the fastest ever expansion of a hypermarket format anywhere in the world. Total operational retail space crosses 10 million square feet mark.

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Pantaloons Compet i t ive Strengths- The following are our key strengths, which we believe, enable us to compete in our business:

Brand Equity an d early mover advantage

Pantaloons is one of India’s leading retailers with presence across multiple formats and stores across large and medium cities across India. They successfully introduced their hypermarket format through Big Bazaar, introduced the concept of seamless malls through Central, launched Fashion Station to offer fashion apparel and accessories to mass market buyers in a theme based style, opened all an exclusive lifestyle store for plus size people and continue to invest in new concepts and formats to capture a greater share of the consumer wallet, either directly and through our strategic investments.

Entrepreneur led, professionally managed b y an experienced te a m

Pantaloons have an experienced professional management team led by their Promoter Mr. Kishore Biyani, who is one of the leading entrepreneurs in the retail sector in the country and has received various awards over the years, with the recent one being the Retail Face of the Year, 2005. Several of our management team members have experience of managing other retail / consumer facing organizations. They have thus been able to complement rapid expansion with the ability to create adequate systems and processes.The management team is complemented by a committed work force. Pantaloons’ Human Resources policies aim to create an engaged and motivated work force, which is essential for success in any service oriented industry such as their owns.

Project execut i on and operati o ns capabili t ies

Pantaloons have created a project team which enables us to identify and roll out properties quickly and seamlessly. This has allowed us to grow from 561000 Sq. ft. in 2003 to 2107608 Sq. ft

Pantaloons’ operations team facilitates new stores to be opened quickly and integrated into their system and provides their customers with the similar experience across all the stores, and also enables their stores to quickly scale up to meet growing customer requirements.

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Vast ra n ge of l i f e sty l e a n d value r e tail prod u cts an d s e r v ices

Pantaloons’ merchandise ranges across apparel, accessories, food products, home and kitchen products, dry and fresh groceries, consumer durables and non durables with over 270000 SKUs, which are complemented by their services offerings. Presence in both Lifestyle and Value retailing enables them to cater to a large segment of the population, besides benefiting from the synergies which exists between the two segments.

Pantaloons offer their customers a variety of national and international brands as well as our Private Label brands under one roof.

Strong fo c u s on s y st e ms and pro ce sses

Pantaloons focus on systems and processes. They are in the process of revamping their current IT setup to implement more advanced applications. Automated core transaction systems have been developed in house and have evolved with their business. Existing business applications handle all store operations such as billing, customer loyalty programmes, store inventory, management. Back office processes are also computerized which support procurement, supply chain logistics, ware house management and inventory control. All the locations are connected through company-wide VPN (Virtual Private Network).

Business planning happens through a high end planning tool called “Cognos Planning”. Oracle financials form the backbone of accounting functions and gives online real-time access to the Company’s overall financial position at any given point in time.

Pantaloons believe this will help them as we embark on their growth strategy and enhance to reach with their customers and help us provide them a consistent brand experience across all stores.

Strong distribution and logis t ics network and supply chain

Pantaloons have created a strong distribution and logistics network, with their 13 Distribution Centre covering 260000 Sq. ft, handling over 100000 SKUs, and working 24 hours a day and 7 days a week.

The distribution and logistics set up is networked and are on line allowing

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them to deliver merchandise to the store within 24 hours of receipt / generation of auto replenishment order, which has helped them optimize in- store availability of merchandise. They believe their existing Distribution Centres, which have been designed to scale up, will be able to meet their growth requirements as we expand the number of all stores.

The above initiatives have helped them in improving the efficiencies of their supply chain, which they believe is critical for any retailer. These aim at meeting the conflicting requirements of reducing their inventory whilst ensuring availability of products at all stores as per customer needs, as well as reducing our operational costs.

Large base of l o yal c u stomers

Pantaloons had 42280682 customer entries in our stores in the year ended June 30, 2008. They believe that the emotional connect that they have been able to create good relationship with their customers through service offering and special promotions has helped them convert many of them into loyal customers.

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Pantaloons’ Strategy-

Pantaloons intend to maintain and enhance their position as a leading retail entity through continued focus on the Indian market and investing further in their competitive strengths to grow their business. The key elements of Pantaloons business strategy include:

Incr e a s i ng offeri n g s to m eet a hi g h er po rtion of t h e c on sum e r s p e n d

Pantaloons intend enhancing there share of the customers’ monthly spend by launching new formats or adding categories to their existing product range. They intend to implement this by launching such formats directly or by way of strategic tie ups in areas where they have the opportunity to tie up with an appropriate partner.

I n cre a s i n g p e n etr a tion i n existi n g cities a n d exp a n d ing their re a c h a cr o ss t h e c o u n try

Increasing their penetration in existing cities with a larger number of stores, increasingly of larger size, will enable us to penetrate into new catchment areas within these cities and optimize their infrastructure.Enhancing they reach to cover additional cities; will enable them to reach out to a larger population. This will help to provide a platform to domestic and international brands wanting to reach out to domestic consumers with the same profile as their customers.

E n h a nci n g mer ch a n d ise width by a d di n g pr od u ct c a tegories Consumer’s tastes are shifting and the propensity to spend on new categories of merchandise is increasing along with needs for new services.

Pantaloons’ focus will be to add on such new categories in their stores along with developing existing categories to increase their share of the spend of not only existing customers, but also acquire new customers.

Int r oducing n e w b r ands and developing more Private Labels to offer a better dep t h in e a ch cat e gory

Pantaloons continuously focus on enhancing the depth and width of their merchandise. Their Private Label and private brands initiative is part of such

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focus and offers us a differentiating factor as compared to their competition at the same time helps us enhance margins.

They had a tie up with Popeye and Disney wherein they are their exclusive retail licensee for India. They continue to evaluate such opportunities for tie ups with national and international brands, which can be introduced in India through their stores.

Utilisi n g ec o nomies o f sc a le as they g r o w i n s i ze and ex p and their re a ch

Pantaloons believe that their existing corporate infrastructure and software systems have been designed for a higher scale of operations than their current size, and can help them grow with out the need to significantly increase costs.

They are having in place their distribution and logistics infrastructure, which can handle larger business volumes at marginal addition to costs. Higher business volumes will also improve their negotiating powers and help us get further economies of scale in their buying with opportunities of incremental margins.

En h a n cin o p er a ti o n a l e f ficie n cies t h ro u g h systems and p rocesses They are having a consistent focus on enhancing their operational efficiencies and monitor key operational parameters on an ongoing basis using concepts such as gross margin return on floor space, gross margin return on labour and gross margin return on inventory to improve their productivity on space, labour and inventory.

Pantaloons benchmark of the stores on performance parameters on a historical as well as on a comparable basis to seek areas for improvement to reduce their operating costs and enhance our productivity levels.

E n h a nci n g h u ma n c apit a l The aim at recruiting the best talent available in a cross section of industries, identifying fresh talent, grounding them in the value system and providing opportunities for growth. They follow a Balanced Score Card approach which deals with the individual aspirations/goals and links them to the overall company strategy.

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Processes and support functions(1)C a te g o ry M a n ag e m e nt : Pantaloons have employed the concept of category management in our day-to-day merchandising function as against the traditional brand management merchandising practice followed by most retailers. Category managers 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, colour and size.

Functions under category management can be broken into:

Merchandising• 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.

Sourcing / Purchasing• The category manager controls quantities to be purchased as per

the sales forecast. The purchasing is done based on range plan made for the season and re-orders been placed based on sales and stock levels. The Category Manager reviews the actual sales versus planned sales and source the material based on feedback from storefront.

Logistics• Category manager ensure that goods are dispatched in right

quantities and at right time to reach stores with sufficient time in hand to promptly cater to customer demands.

Promotions• Category manager plans promotions / brand or product building

schemes. The category manager identifies slow movers and also disposal plan for the same.

(2)Visual Merc ha ndis i ng -In modern retail, we believe that visual merchandising is key to encourage a

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customer to purchase the products. Visual merchandising involves store window, store directories, in- posters, unit top poster / visual, placement of products, highlighting products in the store. Pantaloons use visual merchandising skills to present their merchandise at its best, in order to appeal to the customer. This is a critical in store activity with their visual merchandising team deciding on the theme as well as the manner in which the merchandise is proposed to be displayed across their stores nation wide.

(3)S up p ly C h a in m an ag e m e n t- Availability of products at the right time and at affordable cost is of utmost importance in retail business. Supply Chain management ensures this. The diverse requirements of different retail formats in which they operate requires a model which is flexible enough to meet the diverse requirement of their various formats; incase of Pantaloons- the time to market is of paramount importance whereas for Big Bazaar – the cost to market is crucial. Keeping this in mind, we have created their own supply chain and logistics model. The Supply Chain function involves vendor management, quality assurance and transportation.

The quality assurance function has been strengthened with the implementation of internal quality control measures. Quality hubs have been established at zonal level with a view to proactively prevent quality defects.

They have one central warehouse and 12 regional warehouses. These warehouses are located in Pune, Delhi, Ghaziabad, Nasik, Ahmedabad, Bangalore, Hyderabad, Gurgaon, Mumbai, Nagpur and Kolkata.

In case of lifestyle retailing, the entire apparel stock is generally delivered to the central warehouse. The central warehouse then services individual stores. In addition to central buying, there is restricted local buying. A unique aspect of the supply chain model is the factory outlet. Its the last level of supply chain model which ensures that slow-moving merchandise are disposed off on a regular basis.

While pantaloons outsource intercity transport of goods to third parties, intra city movement form warehouse to the stores is handled by the own fleet of vehicles. For lifestyle retail formats, they use the services of logistic solution providers in order to deliver products on time to the stores.

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Pantaloons’ C o rporate Functions

1. Information Technology2. Human Resources3. Retail Information System4. Internal Controls5. Measurement of Customer Satisfaction

1. Information TechnologyA key element of the corporate functions is the Information Technology strategy and set up. They are in the process of revamping their systems to address the growing demands of the customer and to have a seamless flow of activities.

The IT vision is to address multiple aspects like connectivity, infrastructure, security, real time information and tools for financial management amongst others. The IT strategy has been framed keeping in mind the growth in formats, chains, product categories and locations.

The most rudimentary issue is that of connectivity, it means ensuring seamless flow of data to the head office from regional offices, zonal centre, stores and warehouses. All locations are connected through company wide virtual private network, stock and sales data from each store is consolidated on a daily basis allowing close monitoring and quick decision-making.

St r a t e gic Dir e ction The organization is in the midst of upgrading the IT set up with a strategic relationship with SAP, business software solutions provider. They intend to implement my SAP Business Suite, SAP Advanced Planning Tool for Merchandise and Assortment Planning and SAP Apparel and Footwear Solutions.

The organization also in the process of installing Closed Circuit Television at stores (CCTV) , using the virtual private planning, live feeds from the CCTV’s will be relayed to the head office and the zones. This will compliment the video conferencing facility that already exists between the stores and the head office. To enable quicker decision-making and reduce the

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lag time, different needs of different users are being addressed through the creation of a personalized ‘dash-board’(a graphical personalised interface through which one can access information available in the central database). Individual users will be able to receive alerts based on their profiles and categories on various aspects related to stock, sales etc. Graphs pertaining to key performance areas will be generated enabling better control and informed decision-making.

2. Human ResourceIn a business where individuals comprise the principal asset, the structure of the people pyramid influences the quality of knowledge captured, the speed with which decisions are made and the morale of the organization. Human Resource is one of the critical support functions and forms another key element of the corporate backbone. Pantaloons have more than 8000 employees as a very young and energetic organization with average employee age being 30 years.

They believe that service is the core philosophy and people are the most important resources. The organization attempt has always been to create an environment where the employees feel pride of being called ‘Pantaloonians’.

The Pantaloons People Manag e m e nt S y st e m Pantaloons People management system is built on 5 pillars of people based growth:

Culture Building. Performance Management through Balanced Score Card. People Processes. Management Processes. Leadership Excellence.

Organization Structure The organization is headed by our Managing Director. The employees follow an inverse pyramid structure; as a result decisions are taken closest to the point of customer action. Sales executive are encouraged to think customer first. They are empowered to run their respective departments like ‘small business owners’.

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Future Growth of plan of the Pantaloons-

The retail industry in India is currently growing at a great pace and is expected to go up to US$ 833 billion by the year 2013. It is further expected to reach US$ 1.3 trillion by the year 2018 at a CAGR of 10%. As the country has got a high growth rates, the consumer spending has also gone up and is also expected to go up further in the future. In the last four year, the consumer spending in India climbed up to 75%. As a result, the India retail industry is expected to grow further in the future days. By the year 2013, the organized sector is also expected to grow at a CAGR of 40%.

Future Group announces its plan to double the number of its flagship multi-brand ‘Pantaloons’ stores in the next three-four years. The expansion of new stores would embark on an image makeover for the apparel and accessories chain to target youngsters. Group Company Pantaloons Retail India, which opened its 50th store spread across 31,109 sq ft in New Delhi, plans to add another 50 Pantaloons stores across metros and smaller cities. Such landmark expansion plan of the retail chain would be a new sunshine opportunity for the signage companies dealing with in-store displays and others.

The retail business is expected to end 2010 with revenues of Rs 14,000 crore, followed by the FMCG and consumer durables entity with Rs 1,800-2,000 crore and the fashion venture with Rs. 2,000-2,200 crore, according to the Future Group’s own projections.

Once the restructuring is complete, there could be a second round of changes, though this depends on the success of the group’s talks with a foreign retailer for a JV. If they indeed succeed, Pantaloons Retail will spin off two of its biggest revenue grossers in retail—Big Bazaar and Food Bazaar, into a new entity, to be called Future Value Retail. The two formats constitute over 55% of the turnover of the country’s biggest retailer.

Pantaloon Retail is currently believed to be in talks with Carrefour, the world’s second-largest French supermarket group, for a JV in India.

Besides Big Bazaar, Future runs formats such as Food Bazaar, KB’s Fair Price shops, Pantaloons, Central, Home Town, eZone, Aadhaar and Brand Factory. Group officials said sales from their own private FMCG brands are comparable to a mid-rung Indian FMCG company.

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Store profile and information on Sales Promotion Activities

Store Name Pantaloons Central Reliance Tr. Globus WestsideFormat Type

Multibrand Multibrand Multibrand Exclusive Brand

Exclusive Tata Brand

Positioning Family Store Family Store Family store Style & Affordability

Style & Affordability

Floor Size 18000 sq ft 150000 sq ft 60000 sq ft 20000 sq ft 40000 sq ft

Location MG. Road, Indore pose

localityYN Road, Indore

AB Road, Indore

AB Road, Indore

Race Course Road, Indore

Categories Apparel &accessories

formen, women & children

Apparel &accessories formen, women &

children, apparels & Accessories

Apparel &accessories formen, women &

children, apparels & Accessories

Stylish Cloths for

men & women &

accessories

Stylized clothes,

footwear & accessories

# of skus 45000 100000 60000 NA NA

# of Suppliers

20-25 50-60 35-45 8-15 NA

Avg. billing per

Customer

1800 2000-2500 1500 800-1000 199-1500

Average Footfalls

800-1000on weekday & 1500-2500

on weekends

400-800 on weekday & 1000-

1200 on weekends

650-800 on weekdays &

1000-1200 on weekends

200-400 on weekdays & 500-700 on weekends

100-150 on weekdays & 200-400 on weekends

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Sales Promotions

End of Season

Yes Yes Yes Yes Yes

Festive Promotions

e.g. Diwali,

Christmas

Yes Yes Yes No Yes

Loyalty Card

Programme

Yes No Yes Yes Yes

Special Promotion(events)

Yes Yes Yes No Yes

Joint Promotion

No No No No No

Media Used

Hording, Print, Electronic, In store(SMS,

Email)

Hording, Print, Electronic, In store(SMS,

Email)

Hording, In store,

electronic

In store, Hording

Print, Hording, In

store

Promotion Type

Price off, Exchange offer, Free

Gifts, Discounts

Price off, contests, combo offer,

discounts

Price off, contests, combo offer,

discounts

Discounts, Combo offers

Cause Related, gift

vouchers, discounts,

combo offersEvolution

of Promotion

Sales, Quarterly

Profit

Sales, Quarterly

Profit

Sales, Quarterly

Profit

Sales, Average Bill Size,

Conversion

Sales, Quarterly

Profit

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Conclusion –

Pantaloons Retail (India) Ltd is a company where it strives for lifestyle and value through its products and services. Through the study, it is observed that Pantaloons can be said an organization where the P’s of marketing is taken seriously for the maximum profitability through large range of products, promotional activities for the company through newspapers , magazines , internet ,banners and posters and a solid sales organization monitoring that the P’s are worked effectively. The store has been well maintained in accordance with the latest demands of the consumers and through all these strategies. Pantaloons ensures repeated customer patronage.

Bibliography-

Marketing Management – Philip Kotler

www. pantaloon retail.in

http://en.wikipedia.org/wiki/Pantaloon

www.pantaloon.com

www. future - group .com

www. riedelresearch .com/.../34_ Pantaloon %20Retail%20India%20Ltd %2004Sep2008

WWW.INDIANREALTYNEWS.COM

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http://WWW.INDIANREALTYNEWS.COM/

http://www.riedelresearch.com/.../34_Pantaloon%20Retail%20India%20Ltd%2004Sep2008

http://www.riedelresearch.com/.../34_Pantaloon%20Retail%20India%20Ltd%2004Sep2008

http://www.future-group.com/

http://www.pantaloonretail.in/

Questionnaire -

Name - Gender- Male/FemaleContact No. – Age Group- a) 15-25yrs b) 26-35yrs c)36-45yrs d) above 45yrs

. Q1. Which Retail store is more comfortable for your shopping-(a)Pantaloons (b) Central (c) Reliance Trend (d) Globus (e) Westside

Q2. Which store products/merchandise collection available is more trendy or latest?

(a)Pantaloons (b) Central (c) Reliance Trend (d) Globus (e) Westside

Q3. Which retail store’s coordination of staff members at more comfortable for you?(a)Pantaloons (b) Central (c) Reliance Trend (d) Globus (e) Westside

Q4. From where you heard about the sale available at pantaloons store?(a)TV (b)Radio (c) Newspapers (d) Hording (5) others.

Q.5 Are you happy with the available offers at the store – (a)Satisfied (b) Highly Satisfied (c) Dissatisfy

Q.6 you prefer to shopping with us due to-(a) Attractive offers (b) High Quality (c) Variety (d) Better Assistant

Q.7 on which time you prefer for shopping apparels?(a) During offers (b) fresh stock (c) on festivals (d) anytime

Q.8 which store is having the best ambience in Indore?(a)Pantaloons (b) Central (c) Reliance trend (d) Globus (e) Westside

Your Valuable comments…………………………………………………….

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Project report on Pantaloon

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