Professional Documents
Culture Documents
assignment
on
Pantaloons retail limited
9/4/2009
IBS-PUNE
SUBMITTED BY- NAMITA BHAIRAVIYA
Contents
About pantaloons...................................................................................................................................... 3
Target market and Positioning of Pantaloons .......................................................................................... 3
Store location ............................................................................................................................................ 4
Traffic .................................................................................................................................................... 4
Accessibility of the market .................................................................................................................... 4
Visibility ................................................................................................................................................. 4
Total number of stores and the type of stores that exist in the area ................................................... 4
Product Mix Offered ............................................................................................................................. 4
Pricing.................................................................................................................................................... 4
Store layout ............................................................................................................................................... 5
Store design- Store Exteriors & Store Interior .......................................................................................... 7
Music ..................................................................................................................................................... 9
Store security ........................................................................................................................................ 9
Space Allocation and Utilization ............................................................................................................... 9
Furniture and fixtures- .......................................................................................................................... 9
Walk Ways and Entries:- ....................................................................................................................... 9
Merchandise ....................................................................................................................................... 10
Display Areas, Walkways & doors ........................................................................................................... 10
Categories and private labels .................................................................................................................. 11
Assortment and Variety .......................................................................................................................... 11
SWOT analysis ......................................................................................................................................... 12
Marquees ................................................................................................................................................ 14
Promotion Strategy ................................................................................................................................. 14
Gift vouchers ........................................................................................................................................... 15
IT System ................................................................................................................................................. 16
Maintenance & Hardware................................................................................................................... 16
Future projects .................................................................................................................................... 17
Analysis ................................................................................................................................................... 17
Conclusion and recommendations ......................................................................................................... 18
References .............................................................................................................................................. 18
Pantaloon Retail is the flagship enterprise of the Future Group, with a presence across multiple
lines of business. The company owns and manages multiple retail formats that cater to a wide
cross-section of Indian society. Headquartered in Mumbai (Bombay), the company operates
through four million square feet of retail space, has over 140 stores across 32 cities in India and
employs over 14,000 people...
Pantaloon Retail forayed into retail in 1997 with the launching of its fashion retail chain,
Pantaloons in Kolkata. In 2001, it launched Big Bazaar, a hypermarket chain. This was followed
by Food Bazaar, a food and grocery chain. Next up was Central, a first of its kind located in the
heart of major Indian cities. Some of its other formats include, Collection I (home improvement
products), E-Zone (consumer electronics), Depot (books, music, gifts and stationary), ALL (a
Little Larger, fashion apparel for plus-size individuals), Shoe Factory (footwear) and Blue Sky
(fashion accessories). It has recently launched its e-business venture, futurebazaar.com. The
group's subsidiary companies include, Home Solutions Retail India Ltd, Pantaloon Industries
Ltd, Galaxy Entertainment and Indus League Clothing. The group also has joint venture
companies with a number of partners including French retailer Team group, Lee Cooper,
Manipal Healthcare, Talwalkar's, Gini & Jony and Liberty Shoes. Planet Retail, a group
company owns the franchisee of international brands like Marks & Spencer, Debenhams, Next
and Guess in India.
Thus it is a store focusing on providing a value for money proposition as it provides quality
fashion products at an affordable price as compared to the competitors.
Store location
The location of a retail store occupies an important place in retail strategy. It not only conveys
the image of the store, but also influences the merchandise mix and the interior layout of the
store. While the merchandise mix can be changed and prices can be adjusted, it is difficult to
change the decision on store location.
Traffic
The traffic – pedestrian as well as vehicular – that passes the site is an important determinant of
the potential sales that can be generated from a store. A pantaloon is known to have good parking
space wherever it’s located.
Accessibility of the market
Accessibility of a market is defined in terms of the availability of public transport and road/local
trains connections to the markets. It is mostly located in posh locality in the center of the city.
Further the easy availability of transport facilitates makes the location really accessible for
shopping.
Visibility
Pantaloons is situated very close to the main road. Pantaloons being a three floor building have
great visibility. To enhance the visibility pantaloons has put its sign board on the top of the
building.
Total number of stores and the type of stores that exist in the area
Its presence area encompasses stores like Lifestyle, Trent; Adidas….which directly compete with
Pantaloons. This is really disadvantageous for Pantaloons.
Product Mix Offered
The kind of product mix to be offered by the retailer is another important consideration. As
mentioned earlier the main product line of Pantaloons is men’s and women’s clothing and other
accessories comprising a vigilant mix of private as well as other labels...
Since Pantaloons provides products to a potentially large number of customers at affordable
prices, it falls in the High Turnover - Low Margin Category
Pricing
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.
Price range is average.
Pantaloons follows a free form store layout. No particular format is followed anything is placed
anywhere but strategically. Pantaloons fall under following categories- Departmental stores,
Malls, E-retailers Here when it comes to arranging the clothes, same type of clothes are put up
together in different sizes so that same clothes are available for every size at one point only.
store.
The layout of the store is modified on a regular basis by shifting the fixtures and display of the
merchandise so that the customers develop a feel of novelty in the store.
The exterior appearance of a store silently announces what customers can expect inside. Good
exterior visual merchandising attracts attention, creates interest and invites the customer into the
business
Exterior Store Design
Good lighting in a store involves more than illuminating space. Lighting is used to highlight
merchandise, sculpt face and capture a mood feeling that enhances the store image. White
lighting has been majorly used in the store so that the customers can identify the requisite colors
of the apparels. For lightening mostly focus lights are used for the clothes that are hanged on
wall white lights are used but for toys section as well as shoes section yellow lights are used and
even for the traditional wear yellow lights are used as this light match with the color of the
products put up there and even make them look more eye catchy and attractive. Stores have
transparent flooring furnished floorings.
Store security- well they have ample staff available with them to guide as well as to keep a
check on the customers. Also they have cc cameras put up at various spots.
Low Variety
SWOT analysis
On an average a super market stocks up to 5000 SKU's against a few hundred stocked with an
average unorganized retailer.
Brand recognition and reputation and Diversity and variety in products offered on the web
(footwear, apparel, sporting equipment etc.)
Customer Loyalty: Retail chains are yet to settle down with the proper merchandise mix for the
mall outlets. Since the stand-alone outlets were established long time back, so they have
stabilized in terms of footfalls & merchandise mix and thus have a higher customer loyalty base.
Opportunity- the Indian middle class is already 30 Crore & is projected to grow to over 60
Crore by 2010 making India one of the largest consumer markets of the world. The IMAGES-
KSA projections indicate that by 2015, India will have over 55 Crore people under the age of 20
- reflecting the enormous opportunities possible in the kids and teens retailing segment.
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.
Percolating down- In India it has been found out that the top 6 cities contribute for 66% of total
organized retailing. While the metros have already been exploited, the focus has now been
shifted towards the tier-II cities. The 'retail boom', 85% of which has so far been concentrated in
the metros is beginning to percolate down to these smaller cities and towns. The contribution of
these tier-II cities to total organized retailing sales is expected to grow to 20-25%.
Rural Retailing: India's huge rural population has caught the eye of the retailers looking for new
areas of growth. ITC launched India's first rural mall "Chaupal Saga" offering a diverse range of
products from FMCG to electronic goods to automobiles, attempting to provide farmers a one-
stop destination for all their needs." Hariyali Bazar" is started by DCM Sriram group which
provides farm related inputs & services. The Godrej group has launched the concept of 'agri-
stores' named "Adhaar" which offers agricultural products such as fertilizers & animal feed along
with the required knowledge for effective use of the same to the farmers. Pepsi on the other hand
is experimenting with the farmers of Punjab for growing the right quality of tomato for its tomato
purees & pastes.
If the unorganized retailers are put together, they are parallel to a large supermarket with no or
little overheads, high degree of flexibility in merchandise, display, prices and turnover.
Shopping Culture: Shopping culture has not developed in India as yet. Even now malls are just a
place to hang around with family and friends and largely confined to window-shopping.
Pantaloons is mostly located in same place as its competitors. Like in Baroda and even in Pune is
in a mall so it’s very much nearby its competitors. Its major competitors are Westside, Globus,
and central.
Marquees
A special type of sign is used to display the name of the store. It is used to announce a change in
season, sale, a special event or a promotion.
Promotion Strategy
Hoardings:
Pantaloon puts its hoarding at prime locations, featuring the upcoming Fashion events or
its brand ambassadors who are generally eminent celebrity.
Category manager plans promotions / brand or product building schemes. The category
manager identifies slow movers and also disposal plan for the same.
Gift vouchers
Bar Coding and Scanners: Point of sale systems use scanners and bar coding to identify
an item, use pre-stored data to calculate the cost and generate the total bill for a client.
Payment: Payment through credit cards has become quite widespread and this enables a
fast and easy payment process.
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 soft’s
template which was predefined by SAP after evaluation of Pantaloon’s 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.
This application is currently being used by around 1,200 employees across the organization. For
maintaining this implementation and its related applications, Pantaloon has an in-house team and
it has outsourced ABAP resources. They are also in the process of setting up a SAP Competency
Future projects
After the successful implementation of SAP for its retail chain, Pantaloon plans to go ahead with
IT projects such as implementation of WMS with RFID, Customer Intelligence and CRM.
Inventory and Promotions Optimization will be pursued later this year.
More than eight years after it forayed into the retail business, Pantaloon Retail decided to
implement SAP to keep itself competitive in the rapidly growing Indian retail market.
Analysis
I have visited one prime store of Pantaloon at KP in Pune & got to know some specific features
of that store:
References
www.pantaloon.com
Retail Management – ICFAI University Press
Marketing Management – by Kotler Keller & Koshy Jha
It Happened in India – by Kishore Biyani & Dipayan Baishya