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Pantaloons - Retail Assignment

Pantaloons - Retail Assignment

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INDIAN INSTITUTE OF MANAGEMENT, INDORE

PANTALOONS Retail Outlet Analysis Marketing - II

Course Instructor: Prof. Sabita Mahapatra Date of Submission:

Submitted by: Group 4, Section B Aadish Dhakad │ Bharath S │ Kunal Shah │ Srivathsa Bethapudi │ Vaibhav Agarwal

....................... 4 PANTALOONS ................................................ 11 Customer Loyalty Program ........................................................... 19 2 ................................................................................. 15 Key Learning’s ............................................ 17 Conclusion .......................................Contents Introduction .............................................................................................. 15 Strategic Analysis ................................................................................................................................................... 18 References ...................................................................................................................................................... 3 Other ventures of PRIL .................................................................................................................................. 14 Co-branding................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 5 Marketing Decision at Pantaloons ........................................................ 8 Visual Appeal of the Store...... 6 Supply Chain Management ..................................................................................................................

Blue Sky. Big Bazaar. futurebazaar. has over 1000 stores across 73 cities in India and employs over 30.000 people. Retain values. FUTURE GROUP. Headquartered in Mumbai. is one of India’s leading business houses with multiple businesses spanning across the consumption space. a business group catering to the entire Indian consumption space. The company’s leading formats include Pantaloons.Pantaloons PANTALOON RETAIL is the flagship company of Future Group. Food Bazaar. insurance. While retail forms the core business activity of Future Group. Mr. Some of its other formats include Brand Factory. a supermarket chain. retail real estate development. Kishore Biyani. is India’s leading retailer that operates multiple retail formats in both the value and lifestyle segment of the Indian consumer market. the company operates over 16 million square feet of retail space. a uniquely Indian hypermarket chain. a chain of fashion outlets. convenience and quality and Central. brand development.com. retail media and logistics. Top 10 and Star & Sitara. The company follows a multi-format retail strategy that captures almost the entire consumption basket of Indian customers. 3 . group subsidiaries are present in consumer finance. Future Group believes in developing strong insights on Indian consumers and building businesses based on Indian ideas. led by its founder and Group CEO. aLL. touch and feel of Indian bazaars with aspects of modern retail like choice. The company also operates an online portal.’ Pantaloon Retail (India) Limited (PRIL). ‘Rewrite rules. leisure and entertainment. capital. blends the look.’ The group’s corporate credo is. a chain of seamless destination malls. as espoused in the group’s core value of ‘Indianness.

led by its format divisions. covering an operational retail space of over 6 million square feet. Future Value Retail Limited continues to deliver more value to its customers. stakeholders and communities across the country and shape the growth of modern retail in India. This entity has been created keeping in mind the growth and the current size of the company’s value retail business.Pantaloons Collection i Star & Sitara eZone Top 10 Big Bazaar aLL Food Bazaar Brand Factory Other ventures of PRIL Blue Sky Future Value Retail Limited is a wholly owned subsidiary of Pantaloon Retail (India) Limited. 4 . among other formats. Big Bazaar and Food Bazaar. in over 70 cities across the country. The company operates 120 Big Bazaar stores. supply partners. As a focussed entity driving the growth of the group's value retail business. 170 Food Bazaar stores.

With a focus on the youth of today. on the lines of how fashion is followed internationally. ethnicwear. PANTALOONS 'FRESH FASHION'. the fashion store extends to almost all the major cities across the country.An idea that has captured the imagination of young India is the tag line of Pantaloons. Fresh Attitude. Home Solutions Retail (India) Limited. it started retailing a mix of external brands while at the same time introduced its own private brands. selling home furniture products and eZone. Women and Kids. watches and sunglasses. When it was first launched. Pantaloons Fresh Fashion stands out as a fashion trendsetter. footwear.Fresh Feeling. Fresh Fashion. Collection-i. All Pantaloons stores reflect the new ideology -. but also in smaller towns. it has undergone several transitions. formalwear. Gradually. ‘Pantaloons’ has established its presence with stores not just in the metros. partywear and sportswear for Men. operates Home Town.A subsidiary company. cosmetics and fashion accessories. this store mostly sold external brands. The store has now gone for the online shopping portal. Pantaloons stores have a wide variety of categories like casualwear. handbags. focused on catering to the consumer electronics segment. Initially positioned as a family store. a large-format home solutions store. 5 . it finally veered towards becoming a fashion store with an emphasis on ‘youth’ and clear focus on ‘fresh fashion’. Pantaloons offers trendy and hip fashion that defines the hopes and aspirations of this demography. the portal helps the customers to shop online as well as locate the nearest store. perfumes. Over the years. The stores offer fresh collections and are visually stimulating thanks to appealing interiors and attractive product displays! The first Pantaloons was opened in Gariahat in 1997. Today.

Pantaloons offers products in the ACCESSORIES category and also in the BEAUTY PRODUCTS CATEGORY. 80% of the revenue is generated by the Private Brands. Women and Kids. Apart from clothes. Fresh Fashion. It targets the ‘Indianness’ in the products as well. Pantaloons provides more assortments of private level brands to compete with supplier's brands. The store offers wide variety of categories like casual wear. DEPTH: The product assortment is broad and deep. Fresh Attitude. party wear and sportswear for Men. this shows that Pantaloons has established its brands as stand alone. The External Brands in the store include: PEPE: APPARELS KILLER: APPARELS LEE: APPARELS BLACKBERRY: APPARELS COLOR PLUS: APPARELS LEVIS: APPARELS URBANA: APPARELS 6 . PRODUCT: Pantaloons benefits because consumers perceive their store brands to have consistent and comparable quality and availability in relation to branded products. As discussed above it believes in Fresh Feeling. The store offers various famous External Brands as well as a lot of Private Brands. formal wear. youth is defined broadly by the company from the kids to adults whoever considers themselves as young.Marketing Decision at Pantaloons TARGET MARKET: The target market of Pantaloons is the Youth of today. there are many product categories and each has a lot of variants in terms of size. PRODUCT ASSORTMENT: Pantaloons offers trendy and hip fashion that defines the hopes and aspirations of this demography. fit and color. ethnic wear. Now Pantaloons is even considering of opening individual stores for the famous Private Brands. They maintain a lot of brands in the store.

SCULLERS: APPARELS VOGUE: GOGGLES DIOR: GOGGLES NAVARAS: JEWELLERY L'OREAL: BEATUY PRODUCTS LAKME: BEATUY PRODUCTS ADIDAS: APPAREL & ACCESSORIES (PERFUMES. DEODRANTS ETC) AXE: ACCESSORIES The Private Brands include: AJILE: CASUAL MENSWEAR AJILE: CASUAL MENSWEAR ANNA-BELLE: CASUAL/FORMAL WOMEN WEAR BARE DENIM: CASUAL WEAR UNISEX BARE: CASUAL UNISEX CASUAL WEAR BARE LEISURE: CASUAL/SEMI FORMALS UNISEX CHALK: KIDS WEAR 7 .

Pantaloon has developed an innovative solution for managing the supply chain problems.F FACTOR: MEN’S PARTY WEAR HOLII: ACCESSORIES (BAGS) LADIES HONEY: CASUAL WOMEN WEAR JM SPORT: MEN’S SPORTS WEAR LOMBARD: MEN’S FORMAL WEAR MOHENA: LINGERIE MY TEE: MEN’S T-SHIRTS RANG MANCH: WOMEN’S TRADITIONAL WEAR RIG: CASUAL WEAR UNISEX UMM: CASUAL WEAR UNISEX Supply Chain Management Critical components of supply chain planning applications helps Pantaloons meet retailers' service levels and maintain profit margins. lean systems and staff help Pantaloons get advantage over competitors. inventory planning. 8 . demand planning. frequent sales operation management. production planning. Innovative solutions like performance management.

MERCHANDISE HANDLING SYSTEM AND INVENTORY MANAGEMENT: The total data flow and the billing process can be understood from the diagram below. Under each regional hub there are several distribution collection centers. each region has a regional hub. PERFORMANCE OF A STORE: Though there was no direct information regarding the store performance. The central division asked for the number of customers visiting the store. As the customer purchases the product its entry is made into the Inventory store and the merchandising system. from the data collected by central division from the store we can deduce a few things. it seems that they might be looking at the direct product profitability. they have access to the data about the billings and revenue. profit per customer entering in the store. The warehouse analyses the data and sends the product to the store. Since each store is connected to the central division via the internet. Also 9 . The product is displayed in the store and the remaining merchandise is stored in form of inventory.PROCUREMENT: They have a central procurement system. The total product selection and distribution is handled by the DCC and the store manager. The function of each DCC is to distribute products across Pantaloons retail stores. So the benchmarking is done on the basis of direct product profitability. the size and available space in the store and the number of sales representatives present. The Merchandising system orders the goods to the Warehouse through the Order processing system. But as the company is now going forward with the launch of individual retail stores for the private brands which are doing good. The same would be reflected in the IT systems installed and would inform the store manager of the products to be ordered which will again follow the same procedure. profit per square foot basis. or the overall profit.

after procuring the materials. Post purchase service Ancillary service 10 . they are also involved in creating awareness about various offers which may benefit the customer. restroom. The sales force is focused on assisting the customers in the selection of merchandise best suited for the customer. The private labels have their own pricing system. They believe that in store service is the key to better customer satisfaction. Soft tags and String tags. There are three types of tags used by the store: Hard tags. Second. •There are a lot of customer loyalty programs which run various schemes for the customers. SMART TAGS: Smart tags help in two ways. recreational activities are provided by the mall. fixes the price of the branded material competitive to the market price.as the data about number of customers visiting the store is collected they might be doing the benchmarking on the basis of revenue or profit per customer entering the store. PRICE: The pricing of the products is done as per the individual brands. if the customer is not satisfied with the product the department guides the customer through the appropriate channel to solve his/her grievances. First. The average age of the employees in the organization is 27 yrs. SERVICE: Pantaloons believes that people are its greatest resource. The scanners at the gates of the store sound an alarm if there is any smart tag going out of the store premises. The Hard tags are RFID enabled which help in controlling shoplifting. String tags give the pricing details. Plus. Pre purchase service •Every store has a trained sales force. Soft tags provide the information about the product. they help in the billing process and the merchandise handling system. Pantaloons provide customers with prepurchase trial service. The customers are made aware of these offers via email and mobile phones (SMS). There is also a provision for gift packing. As the stores are generally in a big mall the parking. The procurement department. •The sales department also takes care of minor alteration of the clothes if required by the customer. they help in preventing the cases of shop lifting. They employ young and energetic individuals.

perfume. The visual communication strategy is planned and is also brand positioned. The customer focuses generally at a particular height level which gives us insight about place of product. festivals etc to decide about the ambience of the store.Visual Appeal of the Store Pantaloons focuses a lot on the visual effects inside the store. The colors inside are more earthly to convey the freshness. Theme or lifestyle displays using stylized mannequins and props. GOGGLE LIKE DEVICE: The stores’ employees are told to keep certain products at a certain height. There is a central team which takes care of the ambience in the store. In the premium products and beauty products segment. Pantaloons pays a lot of attention to the store atmosphere. Also the lighting is dim so that the customer is able to focus on the products. arrangement of products etc are designed store specific. In visual merchandising the store looks at the following aspects: PLACE OF VARIOUS PRODUCTS INSIDE THE STORE: The height and relative location of various products inside the store. signage’s and specialized props is very important for any retail store. are used to promote collections and are changed to keep in touch with the trend. The store employees are also involved in the process as they understand the local tastes better. A main component is the use of technology like the goggle like devices used to assess the most attractive position for products in the store. The merchandise presentation ought to be very creative and displays are often on nonstandard fixtures and forms to generate interest and add attitude to the merchandise. lighting. This shows that somewhere in the system the store chain implements this strategy may be at the central level of planning to decide about the highest level of attraction of customer. This is done on the basis of the research and development done by the central team. and the store design is made according to that. music. There are pictures and signage’s signaling to the customer about the product category being displayed. 11 . time of the day. The colors. These people suggest the ambience according to the mood of customers. The use of Lighting. Another strategy used to enhance the visual appeal of the store is the VISUAL MERCHANDISING. pictures of celebrities are posted endorsing various brands. STORE ATMOSPHERE: The store atmosphere is one of the very important factors influencing the purchase. which are based on a season or an event.

The central team analyses the data gathered from previous sales to establish a relationship between the type of product and its colors and sizes. Various communication tools used by Pantaloons for this purpose include advertising. the store tries to display as many products as possible. DISPLAY: This is the most important part which helps to analyze the order and assortment of colors and sizes in the display and the type of display used. In the wardrobe display the store generally keeps the lighter shades and smaller sizes in the front followed by darker and larger sizes. The display is further boosted by the mannequins and the posters of celebrities along the shelves. celebrity endorsement. use of print media. the degree to which the products gets positioned in their minds. For example: a formal men’s trouser in the economy range: the store looks into the 4-5 basic colors (black. There is a department to take care of the advertisement and communication strategy of the whole retail chain. persuade them to visit the store and remind them about the store. press releases and viral marketing. brown. This helps in Inventory management as well. EVERY STORE HAS ITS UNIQUENESS: Each store is given some autonomy and has a say in the decision process. There are options of wardrobe display or shelf display. COMMUNICATION: The effectiveness of the Pantaloons’ communication is in its offering to the target customers. In the shelf style the store assorts the product based on the style in a shelf and the different colors are available in the same shelf. The communication is taken care by the central promotions group. banners. grey etc. they accept that the product that sells in Mumbai may not sell in Indore. The same has to be incorporated in the display at the store. Also in this section the lighting is focused specially on the mirrors where the customer tries on the product. For accessories the display is exhaustive. Apart from the advertising at the central level the store gets a budget for the local advertisement in newspapers. The message clearly conveys to the target audience that the mall offers them exactly what they require and that it meets all their expectations. navy blue. The company considers that every place has its own unique characters. The core purpose is to inform the target customers about the offering of the store. The message is differentiating in offering from that of its competitors without even naming them. 12 .) and sizes (waist size 28-42 inch) sold and their corresponding quantity. buzz marketing (WoM).COLORS AND SIZES: There is a considerable effort put into the decision making about the sizes and colors of clothes to be displayed in the store. posters etc. local TV channels. The atmosphere in terms of colors and lighting is vibrant in tune with the product.

The stores are in a format of CONVENIENCE SHOPPING. There are a lot of brands in the store that make it a convenience store rather than a specialty store. This is done through the advanced electronic systems to measure the number of customers passing through the doors. The same data is exchanged between various stores across the country. Secondly there is a system to check if someone is shoplifting and going out. The customers are allowed to SELF SELECT the products with the assistance of the in-store staff. Pantaloons appreciates this fact and uses this to improve the sales. The major chunk of the total sales is made or influenced to a large extent by women. According to the data more than 80% of the total sales in retail are influenced largely by women. IN STORE CCTV: There is in store close circuit TV to ensure that the cases of shoplifting are minimized and it also allows the manager to keep a check on the employees. They tally the baggage with the invoice and put a seal to avoid duplication of the same receipt. and to ensure they are working during their shift. They have tried to understand the buying behavior of women and have tried to place their products accordingly. ELECTRONIC FUND TRANSFER: The store allows for the payment through credit cards and debit cards from the customers. ELECTRONIC DATA INTERCHANGE: There is a system to get the data from the customers. The PRIL group is the owner of the stores. There is a 2-tier system. the guards are in place to check the customers going out. CHECK OUT SCANNING SYSTEM: The store has a robust check out scanning system. They also have offers revolving around women. The customers are helped in selecting their apparels. The customers are asked to fill the forms for the customer loyalty programs and the data is transferred to the central server so that the analysis of data can be done to forecast the demands and patterns of purchases.OWNERSHIP: All the stores of the retail chain of Pantaloons are owned by the company. there is an automatic scanning system that beeps in case the locator is not removed. Further the store uses the electronic transfer system to pay to its suppliers. STORE TRAFFIC RADAR SYSTEM: The store keeps a track of the number of customers entering and exiting the store. WOMEN FACTOR: 13 .

1 Star • Gift Voucher worth Rs. Instant discount everytime the customer shops Exclusive shopping days to get hold of latest merchandise Regular updates on collections and promos via catalogues. Each customer who opts for the loyalty program is called a Star Member.5% discount on every purchase Member 7 Star • An exclusive 10% discount on every purchase Member 14 . the customer moves up the ranks to ultimately become a “7 Star Customer” at which point he/she is eligible for a 10% discount on every purchase across any Pantaloons store in India. But as the total value of the merchandise increases. 200 on enrolment Member 3 Star • An exclusive 5% discount on every purchase Member 5 Star • An exclusive 7. the customer becomes eligible for a higher grade of the green Card Membership program. At this stage. the customer is eligible only for discount vouchers. The green card enables the customer to get a whole range of benefits and discounts. Initially. sms and email Special invites to the most happening events Extended exchange periods and complimentary drops for alterations Exclusive billing counters As the number of times a customer shops increases. the customer is a “1 Star Customer” at the time of enrollment.Customer Loyalty Program The flagship loyalty program at Pantaloons is its Green Card Program.

While analyzing the operations it is also essential that we take into account some macroeconomic factors that might affect Pantaloons in the near future. earn JPMiles and Enjoy Green Card discounts for shopping at Pantaloons. customers and the day to day operations at a particular outlet. 100 spent Member 7 Star • 5 JPMiles for every Rs. 100 spent Member 3 Star • 3 JPMiles for every Rs. JetPrivilege members enjoy benefits from two loyalty programs i. The customers earn JPMiles everytime they shop at Pantaloons.Co-branding In a first of its kind partnership in retail. With this unique partnership. These JPMiles can be redeemed by the customer when he/she purchases an Airline ticket from Jet Airways. 100 spent Member 5 Star • 4 JPMiles for every Rs. 1 Star • 2 JPMiles for every Rs. 15 . 100 spent Member Strategic Analysis We have looked at the store from the view point of the employees.e. Pantaloons Green Card partnered with Jet Airways’ JetPrivilege to offer dual benefits to members.

They have been able to successfully launch and retain a lot of private brands. Bare .FIRM ANALYSIS . Despite the intense competition it has been able to retain most of their management level employees. Giny & Jony Weaknesses •Shrinkage rates higher than industry average •Low employee retention level •Loyalty programs offered by competitors better •Merchandise. 16 .SWOT From our visit to the store and understanding of its operations we have made the following inferences. product focus ambiguous Opportunities •Expanding consumer base into Tier II .Loss of focus •Increased competition from foreign firm •Increasing costs •Unorganized sector Pantaloons has outlets across 73 cities with over 4000 supply chain partners. Tier III cities •Untapped segments such as ethnic wears •Foray into Luxury brands •Custom tailored business still untapped Threats •Diversification of parent firm . which as Pantaloons opens exclusive showrooms for the private brands will directly compete with the more established external brands. Strengths •First Mover Advantage •Strong supply chain •Unique Market Knowledge •Presence Across Value Chain •Private Labels like UMM.

The merchandise presentation is very creative which adds to their visual appeal.ENVIRONMENTAL OUTLOOK Political •Govt. support to economic reforms •FDI in Retail •Inflation (CPI vs. 17 . It has been able to do so due to the various reasons and strategies listed above.rural and middle calls •Expected market by 2012 – US $573 billion •Expected contribution to GDP – 22% Social •Advent of dual income families •Increasing consciousness of brands and shopping experience •High proportion of young population Technical •MIS leading to cost efficiency •Electronic media creating wide awareness •Internet Revolution Key Learning’s Pantaloons is one of the most valued and recognized retail merchandize stores in India. But some of the main reasons why it has been able to stay ahead of the competition for so long are RIGHT POSITIONING The message conveyed by Pantaloons to its target customers is effective in differentiating its offerings from that of its competitors without even naming them. celebrity endorsements etc. lighting. signage’s and specialized props. buzz marketing. Pantaloons uses various communications tools like advertising. Season and trend based advertising is done to promote the latest collections. EFFECTIVE VISUAL COMMUNICATION Pantaloons gives great emphasis to on display visual merchandising. The message is clearly conveyed that they offer the customers the complete shopping-cum-entertainment experience. WPI) Economic •Increasing disposable income •Expanding customer base.

Mr. They get an advantage over their competitors by implementing processes like performance management. Kishore Biyani: The Man behind PANTALOONS 18 . lean systems and staff among many others. Pantaloons has recognized the value of building its own stores as brands to reinforce their marketing Positioning.STRONG SUPPLY CHAIN To maintain the profit levels a very strong supply chain is essential. Conclusion In the face of fierce competitive pressure. image and reputation into a coherent retail brand strategy. to communicate quality as well as value for money. Pantaloons has developed innovative solutions for managing the supply chain problems. CHANGING THE PERCEPTION Pantaloons has been able to benefit because the customers believe that its private brands have consistent and comparable quality and availability as compared to the more established external brands. An assortment of private brands is available to compete with the external brands. demand planning. inventory planning. They have developed a sustainable competitive advantage by translating core values combining products.

References PRIMARY Direct talk with    The store Manager of Pantaloons Store Indore The sales personnel at Pantaloons Store Indore The customers at Pantaloons Store Indore SECONDARY http://pantaloon.pdf 19 .jsp http://www.gov.sebi.asp http://www.pantaloonretail.futurebazaar.in/index.in/dp/pantaloon.com/indexPantaloon.

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