MANAGEMENT THESIS I

(Final Report)
ON

“A study of customer perception on the marketing strategies followed by PANTALOON for brand building”

Faculty Guide: Nageshwar Rao

Submitted By MD. RASHID KHAN 8NBHD008

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A THESIS ON

“A study of customer perception on the marketing strategies followed by PANTALOON for brand building”

By MD. RASHID KHAN
8NBHD008 (MBA 2008-10)

A REPORT SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENT OF MBA PROGRAM (2008-10)

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DECLARATION

This is to certify that the Management Thesis entitled as, “A study of

customer perception on the marketing strategies followed by PANTALOON for brand building” Submitted to INC ASIM in partial fulfillment of the requirement for the award of Master of Business Administration is record of original, project work done by me during the period of study in under the supervision of Mr. Nageshwar Rao (Faculty Supervisor).

Place: HYDERABAD Date:

MD RASHID KHAN (8NBHD008)

TABLE OF CONTENTS
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◙ ACKNOWLEDGEMENT ◙ LIST OF TABLES ◙ ABSTRACT/SUMMARY ◙ CHAPTER 1 :INTRODUCTION o Objectives o Limitations o Methodology

◙ CHAPTER 2: INDUSTRY PROFILE
◙ CHAPTER 3: COMPANY HISTORY AND PROFILE

o COMPANY HISTORY o COMPPANY PROFILE o MAJOR PLAYER IN RETAIL INDUSTRY o COMPANY STRATEGIES
◙ CHAPTER 4: THEORITICAL BACKGROUND (ABOUT TOPIC )

◙ CHAPTER 5: REVIEW OF LITERATURE ◙ CHAPTER 6: EMPIRICAL ANALYSIS ◙ CHAPTER 7 : FINDINGS ◙ CHAPTER 8: CONCLUSION ◙ CHAPTER 9 : ANNEXURES ◙ CHAPTER 10 : BIBLIOGRAPHY

ACKNOWLEDGEMENT
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At the outset, I thank my faculty supervisor Mr.Nageshwar Rao for coordinating the project work and giving me necessary directions on doing this project to the best of my abilities. Heartfelt thanks to all the persons whose ideas, critical insights and suggestions have been valuable in the preparation of this report. I also thank Mr. Trinath (Principal of our INC Adam Smith), who has sincerely supported me with the valuable insights into the completion of this project. I am grateful to my friends who have helped me in the successful completion of this Project.

MD. RASHID KHAN 8NBHD008

SEM-III

LIST OF TABLE AND ILLUSTRATIONS
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1) Indian retail market 2) Retail formats available in India 3) Fastest growing retail formats in India 4) Fastest growing retail segment in India 6|Page .

7|Page . To make a good brand image a company need to make a good strategy and all aspects of business that affected by that strategy. Product. promotion these are the most important things to remember in mind. price. place. As we all know customer is the king of the market the have the right to go any where. A customer thinks very differently that called consumer behavior. And the porters generic strategy cost leadership.ABSTRACT This report discuss about a customer perception and strategies used by retail companies. A customer wants to get the full value of their money whatever he buys he wants full satisfaction from that product and if the company succeeds to satisfy their customer then the company can easily make their brand image. product differentiation and focus these strategies help company to compete with its competitors. My topic is customer perception on strategy followed by pantaloon for brand building. So the company need to make good strategy and first starts with 4p’s of the company.

 To find out customers satisfaction level. Food Bazaar Limitations  The sales person is busy in our routine work so they refuse to give information.Future plan.  Most of the sales person is not give the information to the customers want and needs.  Some store information is confidential.  For Example: .  Pantaloon to hive off Big Bazaar. 8|Page .  To find out how this strategies useful to company as well as customers. Accounting information.CHAPTER-1 INTRODUCTION Objective  To find out the different strategies used by the company to increase the sales.  To get a right feedback from the existing customers.

interview. The project involves the study of customer’s perception. The study involves the primary data which is collected through questionnaire. 2. It involves analysis and tabulation of data which is collected from customers is done by various means such as line graphs. 9|Page . It involves use of secondary sources such as web and other research articles printed by various financial institutions and other journals and magazine. 4. Methodology 1. Most of the time customers are saying that they are busy or I have no time. and observation. 3. pie charts and bar graphs.

hefty pay-packets. Following Pantaloon's successful venture a host of Indian business giants such as Reliance. increase in disposable income and customer aspiration. nuclear families in urban areas. Driven by changing lifestyles. It is feared that the entry of global business giants into organized retail would make redundant the neighborhood Karana stores 10 | P a g e . A number of factors are driving India's retail market. tax laws and government regulations all discouraged the growth of organized retailing in India during that period. Retail sector is one of India's fastest growing sectors with a 5 per cent compounded annual growth rate. It accounts for over 10 per cent of the India's GDP and around 8 per cent of the employment. Indian retail is expected to grow 25 per cent annually. strong income growth and favorable demographic patterns. entertainment and food all under one roof. Lack of trained manpower. Lack of consumer awareness and restrictions over entry of foreign players into the sector also contributed to the delay in the growth of organized retailing. India's retail boom is manifested in sprawling shopping centers. increase in expenditure for luxury items. and low share of organized retailing. The organized retail industry in India had not evolved till the early 1990s. It was a seller’s market.malls and huge complexes that offer shopping. India's huge middle class base and its untapped retail industry are key attractions for global retail giants planning to enter newer markets. But there is a flip side to the boom in the retail sector. and little choice available to customers. Until then. multiplex. increasing workingwomen population. Foundation for organized retail in India was laid by Kishore Biyani of Pantaloon Retails India Limited (PRIL). These include: increase in the young working population. Bharti. Birla and others are now entering into retail sector. with a limited number of brands. the industry was dominated by the un-organized sector.CHAPTER-2 ABOUT RETAIL INDUSTRY IN INDIA Retail is India's largest industry. It is expected that retail in India could be worth US$ 175-200 billion by 2016.

resulting in dislocation in traditional economic structure. Procurement is very vital cog in the retail wheel. Also. The talent base is limited and with the entry of big giants there is a cat fight among them to retain this talent. If all the above challenges are tackled prudently there is a great potential that retail may offer employment opportunities to millions living in small town and cities and in the process distributing the benefits of economic boom and resulting in equitable growth. But retail offers tremendous for the growth of Indian economy. This has resulted in big salary hikes at the level of upper and middle management and thereby eroding the profit margin of the business. All the companies have laid out ambitious expansion plans for themselves and they may be hampered due lack of requisite skilled manpower. the growth path for organized retail in India is not hurdle free. 11 | P a g e . unsorted food provisions and daily fluctuating prices as against consumer expectations of round-the-year steady prices. unpredictable availability. sorted and cleaned food and fresh stock at all times. Trained human resource for retail is another big challenge. With the intrinsic complexities of retailing such as rapid price changes. The taxation system still favors small retail business. constant threat of product obsolescence and low margins there is always a threat that the venture may turn out to be a loss making one. The retailer has to fight issues like fragmented sourcing. A perfect business model for retail is still in evolutionary stage.

PRESENT INDIAN RETAIL SCENARIO The retail industry is divided into organized and unorganized sectors.000 sq. income tax. hand cart and pavement vendors. the local kirana shops. Unorganized retailing. refers to the traditional formats of low-cost retailing. of mall space under development * the top 3 modern retailers control over 750. and also the privately owned large retail businesses.000 sq. on the other hand. 000 cores * 5X growth in organized retailing between 2000-2005 * Over 4. 35. for example. owner manned general stores. that is. convenience stores.000 corers (US$ 7 Billion) or more by 2005-06The growth factors of the retail sector of Indian economy: • • • Increase in per capita income which in turn increases the household consumption Demographical changes and improvements in the standard of living Change in patterns of consumption and availability of low-cost consumer credit 12 | P a g e . etc. 583. ft.000 cores * Organized market: Rs. of retail space * Over 400. These include the corporate-backed hypermarkets and retail chains.5. Over 12 million outlets operate in the country and only 4% of them being larger than 500 sq ft (46 m²) in size. Growth in organized retailing on par with expectations and projections of the last 5 Years: on course to touch Rs.000 new modern Outlets in the last 3 years * Over 5. * Unorganized market: Rs. ft. paan/beedi shops.000 shoppers walk through their doors every week * 47 global fortune companies & 25 of Asia's top 200 companies are retailers * Biggest player in India is Pantaloon Retail India Limited. Organized retailing refers to trading activities undertaken by licensed retailers. those who are registered for sales tax.000. etc.

SKUs: 20000-30000. Supermarket: A subdued version of a hypermarket. And very soon the malls became the trend setters in the new millennium. And in the 1980’s people have seen the new formats like supermarket. In less than a decade hypermarkets have gained all the applause of the retail market and stood above all the other formats by bringing in the concept of “one stop shopping. Hypermarket: It is the largest format in Indian retail so far is a one stop shop for the modern Indian shopper. Vishal mega mart. Merchandise: food grocery to clothing to spots goods to books to stationery. This helped the consumers on to stick to a particular store for their day to day requirements and also avail the credit purchasing facility. departmental stores and discount stores entering into the Indian retail space. and above. Mom and Pop stores/ kirana stores.” This stood as an opening door for the new generation of the retail industry. 13 | P a g e .• Improvements in infrastructure and enhanced availability of retail space Entry to various sources of financing EVOLUTION AND TRENDS IN ORGANIZED RETAILING FORMATS AND RETAIL OUTLETS Historical Indian retail market consisted of weekly markets. Example: Pantaloon retail’s Big Bazaar. Space occupied: 50000 Square feet. RPG’s Spencer’s (Giant). This has coined the term of ‘shoppertainment’ (shopping and entertainment) which can be attributed to the changing life styles of the people. village fairs and mela’s and the 19th century gave birth to the retail outlets which took the form of convenience stores.

ft. These usually do well in busy market places and Metros. cosmetics. Piramal’s TruMart. Merchandise: Apparel.Merchandise: Almost similar to that of a hypermarket but in relatively smaller proposition. Crossword. Trinethra/more. MBO’s: Multi Brand outlets. Merchandise: Depends on the stores Example: Bata store deals only with footwear. ft.’s Westside. Merchandise: Offers several brads across a single product category. Example: Viswapriya Group’s Subiksha. 14 | P a g e . Discount store: Standard merchandise sold at lower prices with lower margins and higher volumes. Merchandise: A variety of perishable/ non perishable goods. ft. to 3000 Sq. Trent India Ltd. gifts etc. – 30000 Sq. Apna Bazaar. ft. also known as Category Killers. household accessories.) in India. SKUs: Around 10000. or more. RPG’s Music World. Example: Landmark Group’s LifeStyle. Example: stores located at the corners of the streets. Space occupied: Around 10000 Sq. Space occupied: 5000 Sq. Example: Nilgiris. Reliance Retail’s fresh Department store: A retail establishment which specializes in selling a wide range of products without a single prominent merchandise line and is usually a part of a retail chain. Merchandise: Groceries are predominantly sold. Convenience store: A subdued version of a supermarket. ft. Kirana stores: The smallest retail formats which are the highest in number (15 million approx. Specialty store: It consists of a narrow product line with deep assortment. Space occupied: Around 500 Sq.

Space occupied: Ranges from 60.000 sq ft. 15 | P a g e . 00. Malls: The largest form of organized retailing today located mainly in metro cities. all under a common roof. service and entertainment. Space occupied: 50 sq ft and even smaller ones exist. in proximity to urban outskirts.Merchandise: Mostly food and groceries. Merchandise: They lend an ideal shopping experience with an amalgamation of product.000 sq ft to 7. Example: Pantaloon Retail’s Central. Mumbai’s Iorbit.

In the above graph it shows that the there are many formats of retailing in India but the specialty store and supermarket is fastest growing formats in India. As the customer constitutes the source of a company's 16 | P a g e . Then dressing because India is now turning to modern age and the people of modern age like to dress well and look well. and competitors in the market arena. corporate missions. prospects. defining how the organization will successfully engage customers. and corporate goals. It is partially derived from broader corporate strategies. Key part of the general corporate strategy A marketing strategy is most effective when it is an integral component of corporate strategy.In the above graph it shows that the in India the fastest growing retail segment is food and grocery because in India people spend more on eating.

Pantaloon's origin can be traced to 1987 when the company was incorporated as Manz Wear Private Limited. Big Bazaar. "Kshitij" and "Horizon" 17 | P a g e . The company launched Pantaloons trouser. India's first formal trouser brand. ft by 2011. In 1994. The company currently operates over 5 million square feet of retail space and has plans to increase it to 30 million sq. In 2002. marketing strategy is closely linked with sales. India's first hypermarket chain was launched.exclusive menswear store in franchisee format was launched across the country. Pantaloon started distribution of distribution of branded garments through multi-brand retail outlets across the nation. Food Bazaar. The Pantaloon Shoppe . Pantaloon has plans to open over 3000 new stores by 2010. Pantaloon's headquarter is in Mumbai. the supermarket chain was launched. In 2001.revenue. Pantaloon has ushered a retail revolution in India and its founder Kishore Biyani is known as India's "King of Retail". Future Capital Holdings. the company's financial arm launched real estate funds. Pantaloon launched its IPO. A key component of marketing strategy is often to keep marketing in line with a company's overarching mission statement. In 2006. Basic theory: 1) Target Audience 2) Proposition/Key Element 3) Implementation CHAPTER-2 COMPANY HISTORY Pantaloon Retail Pantaloon Retail (India) Limited is India's leading retailer that operates multiple retail formats in both the value and lifestyle segment. In 1992.

Leisure & Entertainment. MD & Group CEO Bombay Stock Exchange BOM: 523574 June Retailing and Dept. Telecom & IT. Big Bazaar (hypermarket).000 (June. Books & Music. General Merchandise.and private equity fund "In division".019 crores for the financial year ending June 2006. 2008) 18 | P a g e . Food Bazaar (supermarket). Fashion Station (popular fashion). 2. Store Chains 35. Wellness. Central (seamless malls). Health & Beauty and E-tailing and that helps the company cater to every Indian customer. Blue Sky (fashion accessories) and all (fashion apparel for plus-size individuals). Collection i (home furnishings). Company Name: Key People: Listed on: Stock Code: Fiscal Year Ending: Major Industry: Employees: Pantaloon Retail (India) Limited Kishore Biyani. Some of the leading formats include. Depot (books and music) and Shoe Factory (footwear). Pantaloons (department store). Fashion. E-Zone (consumer electronics). The company operates across multiple segments including –Food. The company is also planning forays into insurance and consumer COMPANY PROFILE Pantaloon Retail (India) Limited is India’s leading retailer with gross sales of Rs. Home & Electronics.

the company forayed into modern retail in August 1997 with the launch of its first department store. Indus League Clothing Ltd. Mumbai 400 060 Tel: +91 22-6644 2200 Fax: +91 22-6644 2222 Partner companies Pantaloon Industries Ltd. Pantaloons in Kolkata. Joint Ventures Companies Planet Retail Holdings Ltd. Foot mart Retail GJ Future Fashions CapitaLand Retail India ETAM Future Fashions India Pvt. Galaxy Entertainment Corporate Ltd. Home Solutions Retail (India) Ltd. Ltd.000 Corporate Headquarters: Pantaloon Retail (India) Limited Knowledge House. Background: Founded in 1987 as a garment manufacturing company. Future Capital Holdings Converge M Retail (India) Ltd. 19 | P a g e .2007 Sales: 34.686. Shyam Nagar Off Jogeshwari-Vikhroli Link Road Jogeshwari (East).000.

he was the CEO of Globus. Wholetime Director Rakesh Biyani. Exchange (BSE. is an engineer by training and is a graduate of the Indian Institute of Management. Director Ved Prakash Arya. Symbol: PANTALOONR). Gopikishan Biyani. Mr. Ved Prakash Arya. Managing Director Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the Group Chief Executive Officer of Future Group. retail stores operations. He has been instrumental in the implementation of the various new retail formats. Rakesh Biyani. Mr. 20 | P a g e . IT and exports. Ahmedabad. Prior to joining Pantaloon Retail. Mr. is a commerce graduate and has more than twenty years of experience in the textile business. Wholetime Director Gopikishan Biyani. is a commerce graduate and has been actively involved in category management. BOARD OF DIRECTORS Mr.Listing: Pantaloon Retail is a listed company on the Bombay Stock Scrip Code: 523574) and National Stock Exchange (NSE. Kishore Biyani.

Independent Director D. Independent Director Anju Poddar. 1999. D O Koshy. Independent Director 21 | P a g e .. He has over 24 years of rich experience in the textiles and garment industry and was instrumental in the setting up of NIFT centres in Delhi. O. Delhi and is the Director of National Institute of Design (NID). S Doreswamy. Koshy. He is the Deputy Managing Partner of Haribhakti & Co. etc. Mr. Cost Accountant. is a Chartered Accountant. Ambuja Cement Eastern Ltd. Doreswamy. He is a renowned consultant specializing in international marketing and apparel retail management. He is on the Board of several Public Limited Companies. holds a Bachelor of Engineering from University of Oklahoma and is a Director. including Indian Petrochemicals Corporation Ltd. Ms. Bala Deshpande. NIFT. Chartered Accountants and past president of Indian merchant Chambers.. Ahmedabad. Ms. Shailesh Haribhakti. Hyderabad chapter. and a Certified Internal Auditor. Independent Director Shri Shailesh Haribhakti. He is on the Board of Company since June 1. Independent Director S. She also serves on the board of Maharishi Commerce Ltd and Samay Books Ltd. Anju Poddar. Chennai and Bangalore.Mr. is a former Chairman and Managing Director of Central Bank of India and serves on the board of DSP Merrill Lynch Trustee Co and Ceat Limited Dr. holds a doctorate from IIT.

India’s first seamless mall is launched in Bangalore. Launch of Pantaloons trouser. 1997 Pantaloons – India’s family store launched in Kolkata. 1995 John Miller –Formal shirt brand launched. India’s first formal trouser brand. Nagarjuna Construction. The company starts the distribution of branded garments through multi-brand retail outlets across the nation. Independent Director Anil Harish. 2001 Big Bazaar. IndusInd Bank and Hinduja TMT. 2002 Food Bazaar. the Indian jeans brand. Eat. 1991 Launch of BARE.the popular fashion chain is launched          22 | P a g e . Unitech. Anil Harish. ‘Is se sasta aur accha kahi nahin’ .Bala Deshpande. 2005 Fashion Station . 1994 The Pantaloon Shoppe – exclusive menswear store in franchisee format launched across the nation.India’s first hypermarket chain launched. 1992 Initial public offer (IPO) was made in the month of May. Pantaloon Retail (India) Ltd. Celebrate in the Heart of Our City’ . Welspun India and Indus League Clothing Ltd. is the partner of DM Harish & Co. the supermarket chain is launched. Associates & Solicitors and an LLM from University of Miami. Major Milestones  1987 Company incorporated as Manz Wear Private Limited. is Independent Director. Mr. and also serves on the boards of Deccan Aviation. 2004 Central – ‘Shop. He also serves on the board of Mahindra Gesco.

The company’s leading formats include Pantaloons.000. the company operates over 10. Furniture Bazaar.000 people. Shoe Factory. aLL. 2006 Future Capital Holdings.com. futurebazaar. Big Bazaar.000 square feet (930.000 m2) of retail space. Food Bazaar. EZone. a uniquely Indian hypermarket chain. Plans forays into insurance and consumer credit. Depot. has over 1. Shoe Factory. a chain of seamless destination malls.000 stores across 61 cities in India and employs over 30. Brand Factory. a chain of fashion outlets. 23 | P a g e . The company also operates an online portal. the company’s financial arm launches real estate funds Kshitij and Horizon and private equity fund In division. a supermarket chain.com are launched across the nation. ABOUT THE COMPANY Pantaloon Retail (India) Limited. Top 10 and Star and Sitara. convenience and quality and Central. Headquartered in Mumbai (Bombay). Group enters into joint venture agreements with ETAM Group and Generali. blends the look. is India’s leading retailer that operates multiple retail formats in both the value and lifestyle segment of the Indian consumer market. touch and feel of Indian bazaars with aspects of modern retail like choice. Depot and futurebazaar. Blue Sky. Some of its other formats include. Multiple retail formats including Collection i.

Indus League Clothing and Galaxy Entertainment which manages Sports Bar. Central. Future Group Future Group is one of the country’s leading business groups present in retail. 24 | P a g e . Depot. Collection i. has over 1. retail media. The group’s flagship company. Future Generali India.futurebazaar. Future Money and online retail format www.000 people. Future Capital Holdings. a large-format home solutions store.000 m2) of retail space. Pantaloon Retail (India) Limited operates over 10. asset management. Future Group companies includes.000 square feet (930.000.000 stores and employs over 30. Future Group is present in 61 cities and 65 rural locations. Future Capital Holdings. Big Bazaar. Home Town. Pantaloon Retail is the flagship company of Future Group. Some of its leading retail formats include Pantaloons. selling home furniture products and E-Zone focussed on caterng to the consumer electronics segment. Pantaloon Retail was recently awarded the International Retailer of the Year 2007 by the US-based National Retail Federation (NRF) and the Emerging Market Retailer of the Year 2007 at the World Retail Congress held in Barcelona. focuses on asset management and consumer credit. eZone. It manages assets worth over $1 billion that are being invested in developing retail real estate and consumer-related brands and hotels.A subsdiary company. insurance. the group’s financial arm.com. operates Home Town. Food Bazaar. retail spaces and logistics. consumer finance. a business group catering to the entire Indian consumption space. Brew Bar and Bowling Co. Home Solutions Retail (India) Limited.

Fashion .eZone.The group’s joint venture partners include Italian insurance major Generali. French retailer ETAM group. Top 10.Pantaloons.Bowling Co. Home Bazaar E-tailing (Online Shopping) . Retain values.” The group considers ‘Indian-ness’ as a core value and its corporate credo is . Big Bazaar. “Deliver Everything. Sports Bar & Sports Bar Express. F123 25 | P a g e • • • • • • • • . Fashion Station. Everytime to Every Indian Consumer in the most profitable manner. Blue Sky. Shoe Factory. US-based stationary products retailer Staples Inc and UK-based Lee Cooper and India-based Talwalkar’s.Collection i. Home Improvement . These include: • Food .Depot Leisure & Entertainment . Furniture Bazaar.com Books & Music .www.futurebazaar.Food Bazaar. Brew Bar. KB'S FAIR PRICE Electronics . aLL. Brand Factory. Future Group’s vision is to. Chamosa. Central. Cafe Bollywood. Electronics Bazaar. Spoon. Lee Cooper (JV).Home Town Furniture . Everywhere. Furniture Bazaar. Lines of Business The company is present across several lines of business which have various formats (stores) operational under it. Blue Foods and Liberty Shoes.Rewrite rules. Navras.Big Bazaar. General Merchandise ..

Star & Sitara. Food Bazaar . and Sports Bar . ConvergeM Pantaloon Retail is the flagship company of Future Group. Brew Bar . M Bazaar.a bistro focused on the world of sports.• • Wellness . Food In food business.a national chain of eateries.Gen M.a beer bar.a pan-Indian chain of snack counters. the group offers a host of options. It offers a wide range of products at affordable prices. café Bollywood . The lines of business of Future Group are: E-commerce Pantaloon's website Futurebazaar. Tulsi Telecom & IT . It has been named as Best Indian Website 2007 in the Shopping category by PC World. Chamosa .a chain of large supermarkets.com has revolutionized the e-commerce business in India. 26 | P a g e . M-Port.

Electronics Bazaar offers branded electronic goods and appliances.Fashion The group offers a variety of options in fashion.entire range of Home Furniture.offers a wide range of gaming options ranging from bowling and pool to redemption and interactive video games to bumper cars. herbal and specialty skin items. novel and unique leisure and entertainment options. and Top 10. Tulsi .one stop destination for all the home needs. e-zone . 27 | P a g e . Navaras. Home Town . Fashion Station.a state-of-the art spa and yoga centre. Leisure & Entertainment Options are: Bowling Co. Blue Sky. Etam. ayurvedic and homeopathic medicinal products. Star & Sitara: Beauty salon for men and women. Central.state-of-the-art premium family entertainment centre.offers beauty products like color cosmetics. Its brands include aLL. Furniture Bazaar . hair products and bath accessories.a lifestyle furniture store.provides access to the best allopathic. Wellness & Beauty Options are: Health Village . Gini & Jony. Pantaloons. F 123 . Home & Electronics Options include: Collection is . Turmeric . offering multiple. . fragrances.trendiest electronics items.

and Bharti Enterprises Ltd. The other three groups are focusing either on perishables and groceries. Chroma. K Raheja Corp Group-Formats: Shoppers’ Stop. Tanishq outlets. Central. the Aditya Birla Group. In orbit Lifestyle International-Lifestyle. The Tata Group-Formats: Westside. and Titan Industries with World of Titans showrooms. Fashion Station. Landmark. MAJOR INDIAN RETAILERS The low-intensity entry of the diversified Mahindra Group into retail is unique because it plans to focus on lifestyle products. Pantaloons. Depot. Crossword. Spencer’s Super. Brand Factory. The Mahindra group is the fourth large Indian business group to enter the business of retail after Reliance Industries Ltd. Hyper City. E-Zone etc. Star India Bazaar. CDs. or both. RPG Retail-Formats: Music World. Home Centre. and stationery items. Steel junction. Daily & Fresh Pantaloon Retail-Formats: Big Bazaar. Fun City and International Franchise brand stores. 28 | P a g e . Spencer’s Hyper. Books & Beyond."Depot" offers Books.Books & Music Future Group's brand . Food Bazaar. or a range of products. aLL. Max.

promotion and advertising plan. visual merchandising. Market strategy should entice customers to buy the product or service. wholesale) and what specific customer groups will be targeted. customer relations and an evaluation of the marketing strategy. Market strategy encompasses customer perception of the relationship between price and quality. pricing and terms of sale. The marketing plan provides information on what the market will be (retail.Formats: Fabmall supermarket chain and Fabcity hypermarket chain Vishal Retail Group-Formats: Vishal Mega Mart BPCL-Formats: In & Out Reliance Retail-Formats: Reliance Fresh Reliance ADAG Retail-Format: Reliance World German Metro Cash & Carry Shoprite Holdings-Formats: Shoprite Hyper MARKET STRATEGY Market strategy is defined as an action plan for influencing customer choices and obtaining a market share. TruMart Nilgiri’s-Formats: Nilgiri's’ supermarket chain Subhiksha-Formats: Subhiksha supermarket pharmacy and telecom discount chain. Trinethra.Pyramid Retail-Formats: Pyramid Megastore. 29 | P a g e . what will be sold. customer perception is the bottom line. inventory selection and management. where it will be sold. Market strategy also includes the distribution channels for the product. Remember. Is the quality of the product or service worth the price? Is the price too low for the quality the customer desires? Is the price higher than the customer's perception of quality? Market research identifies the price and quality relationship customers perceive to be important. marketing budgets. and how wide the area of distribution will be.

because they can disturb the growing sales process of the organization. When they enter other countries they must follow the tradition of that country and also they make plan for local market that which type of product has more demand and how can it run in the market. 5. A strong quality of the product and customer satisfaction: Customers always believe in good quality product. It means keep the old customer and try to make new customer. A marketing strategy should be centre around the key concept that customer satisfaction is the main goal. 4. They make advertisement according to convenient of the people and the feature of the product. market segments with a potential for high sales. 3. A marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. 2. Sale is totally depending on the relation with the customers. growth and a minimum of competition are the most attractive. It is several types of which makes helpful to increase sales and turnover of the organization. So on the basis of marketing strategy a organization runs in the market.Ideally. 1. profits. A growing relationship with customer and customer retention: Nowadays a good relation with customer is very important for organization. Customer satisfaction is very important part of the organization that at any cost they have to fulfill. Customer's retention is also a major aspect for growing business. Organization provides some schemes or rebates to retailers or consumers. 30 | P a g e . In my survey I found that in percentage term more people is quality conscious and not price conscious. Focus on competitor’s activity: Every organization should must be careful about it's competitors step. A growing emphasis on global thinking and local marketing planning: Companies are increasing by pursuing market beyond their borders. Following strategies adopted by the organization. Promotional Strategy: Under the market strategy promotional idea is very important.

Every organization is an open system of management which means change is inevitable and is associated with environmental factors.6. In Pantaloons 70% of apparel sales come from own labels. We have come across a term “Unique Selling Proposition”(USP) which companies feel as a constant factor . Honey.e. Growth through private labels: A striking characteristic of Pantaloons has been the strength of its private label programme. Companies need to focus not only on USP of their products but also on the “Unique Customer Perception” (UCP) of the final end users. MARKETING MIX STRATEGY PRODUCT Variety Quality Design Features Brand name Services Warranty PRICE List price Discount Allowances Payment period Credit term PROMOTION Advertising Public relation Sales forces Direct marketing PLACE Channel Coverage Location Assortment Inventory Transport CHAPTER-4 THEORETICAL BACKGROUND Unique Customer Perception (UCP) Marketing is a domain which is dynamic i. Scottsville. The prop of marketing is based on the need identification and the USP's are prepared based on the identified needs. Annabelle. Bare are some of the successful brands created by the company. involves change. John Miller. If the needs are wrongly identified then even the USP's which are 31 | P a g e . an important phenomenon not to be overlooked. Lombard. Ajile.

“Customer Perception is the Rule and not Customer Satisfaction”.e. Now this expectation is what has been derived from perception. right or wrong. 32 | P a g e . Companies spend considerable amount on advertisement and in this world of competitive advantage advertisement has to be repetitive in nature. So it is not the USP but UCP that plays an important role . Brand hammering results in brand recall which is a costly affair. Remember that a customer always buys a product or service with a lot of expectations which he has derived from the promotional inputs of the company or other sources including wordof. Thus UCP has to be rightly analyzed for better results by the company to match performance and expectation. Since people are unique.unique to the product would not serve the purpose.This has lead to the concept . Money is a budgetary constrain for an ideal advertising campaign.mouth. each of their perceptions are unique . The reason for the brands not to do well is probably the communications which does not reflect the customer’s perception. Each situation will create expectations’ of what the next experience will probably be like. So companies need to understand the Unique Customer Perception to facilitate advertising and Sales Promotional (ASP) efforts towards a better bargain. The cost incurred on advertisement is huge i. So a customer would be satisfied when Performance is equal to Expectation while would not be satisfied when Performance does not match with Expectations. Perception is not good or bad. USP identifies a product/service from its competitors while UCP is the perception or picture a customer develops from all types of promotional inputs from the company about their product or service. if we refer to the 5 M's of advertising.On the other hand each situation is a "point of contact" with an employee that will tell the customer a "truth" about the company's idea of customer service. It is often seen that some brands do extremely well compared to other brands having the same resources. it is just the way someone judges an experience based on their value system of what they believe should happen.

how we handle the telephone is essential to creating a perception for our customer that aligns with the company mission of service. Slowing down ensures that the customers perception is of an organized systematic company that can handle their project. It is ultimately that customer look for satisfaction based on the picture of perception derived from various sources. Smiling stretches your vocal cords. and gives a more upbeat presentation to the customer. Getting it done right and on time consistently. Article source: http://www. Unique Customer Perception is what is required by companies instead of Unique Selling Proposition. This has lead to the concept .com BY SOUMEN CHATTERJEE Unique customer perception (UCP): According to soumen. Given that 90% plus of our orders at some point involve the phone. If these perceptions of customer can be analyzed then promotion would be easier for customer centric marketing. 33 | P a g e .fibre2fashion.“Customer Perception is the Rule and not Customer Satisfaction”.CHAPTER-5 REVIEW OF LITERATURE PJ GERMAIN The customer's perception: Customer perception is an important component of our relationship with our customers.

Customers are seeking for material deliverables as well as perceptive enjoyment when purchasing a service product.com/?expert=Soumen_Chatterjee BY JEN B Brand recognition will change customer perception: According to JenB. Ltd MORGAN STANLEY Quick Comment – Impact on our views: We met Rakesh Biyani. customer perception should be definitely a key consideration. You want people to thing of you a certain way too.html HUAWEI Satisfy customers perception is the biggest challenge: In meeting customers' requirements and measuring customers' satisfaction indexes. Brand recognition is accomplished only by people seeing your logo and business name over and over again. and it is the contents of high quality life in the modern society. If you get a lot of blank looks from people that are not current customers then you probably have no recognition at all. Remembering a business is one step closer to trusting a business. This will create the repetition that your customers and future customers need to pick your product out of a crowd time and time again. the biggest challenge is customer perception management. We reiterate our Overweight rating and believe that any volatility in the stock price should be viewed as an 34 | P a g e . Article source: Huawei Technologies Co. Article Source: http://www. Since perceptive enjoyment is a vital service objective. Qualified services in the operation execution layer. one of the key service management objectives shall be meeting customers' perceptive enjoyment. Our investment thesis regarding improving business outlook and availability of capital to fund growth plans continues to hold good. for a bigger stronger business you have to get some serious brand recognition happening. In customer satisfaction management.a1articles. The major characteristics of service is intangible.Article Source: http://EzineArticles. who heads the retail business. The final aim and ideal effect of service provisioning is to have customers perceive and enjoy the service. Director Future Group. It is more important to understand customer expectations and make efforts to exceed their expectations.. This is the ticket to getting the image that you want. or customer perception satisfaction. Such perception is both at psychological and behavior levels. Even if people don’t buy the product they will recognized the name. People need to know your name before any thing else. technical management layer and business development layer are necessary. Management has consciously shifted focus to growth quality rather than just growth.com/article_1035917_15. hence the core value of services is not like a physical product but the spiritual experience and perception of customers. That means it is time for an advertising switch.

Third. marketing dept or Company Directors? One this is for sure. it has improved product quality and pricing across its merchandise (particularly private label) to ensure market share gains. It has increased its order per SKU range from 900-1.400 to 600-6. daily/weekly sales targets so that the monitoring and feedback system improves significantly. This compares with F2009 SSG of 7. Gross margin improvement is likely to be driven by improvement in sell-through ratio (% of products sold through the primary store). Significant improvement in private label contribution. in fact.trentleyshan. it has put in place a system to continuously monitor underperforming categories/segments/SKUs so that they can be immediately replaced. The customer’s positive perception. Focus on efficiency to improve margins: The management is targeting 200-250 bps improvement in gross profit margin. sales person. particularly in the apparel segment. Here are the key takeaways from the meeting: Aggressive growth and margin targets: PRIL has set an aggressive 16-17% same store growth (SSG) target for F2010. it has now set store-wise. A breakdown on any level can be detrimental to a company’s success.entry opportunity. Second. it certainly isn’t the customers fault. their opinion matters none the less. TRENT LEYSHAN Creating the right ‘Value Perception’ for your Customers: According to Trent Leyshan Value Perception (VP) is the opinion your potential and current customers have of your product or service. which was an improvement from 64% in F2008. Value cascades down the value deliver system into the customer. sales manager. a 30% reduction in logistic costs. and a reduction in nonstore inventory during F2010. the company is likely to ensure that its fastest-selling products don’t go out of stock. may also help the overall mix improvement. critically so.0%. The company plans to achieve this target by adopting active merchandise management. Article source: www. This perception determines the value it adds to them in line with the problems it needs to solve or aspirations they want it to fulfill. The company achieved 79% in F2009. Fourth. from 79% in F2009 to 89% in F2010. First. “But the customer my have it wrong” In this instance we respond: whose fault is that: the customer. Irrespective of your customer’s opinion being right of wrong in your mind. Some may suggest. product-wise and SKU-wise.000 to ensure reduced stockouts for fast-selling products.com | 35 | P a g e . along with an effective sales process will help the customer make the appropriate buying decision.

technology up gradation to maintain a cost effective inventory management and better customer service. and telecom 36 | P a g e . through joint ventures with various companies across the world. The company offers office products through a joint venture with Staples. Pantaloon operates in three segments of the retail value chain: wholesale (procurement of stocks).CHAPTER-6 EMPIRICAL ANALYSIS Pantaloon Retail is investing in new business lines. and media. In line with this strategy. brands. Pantaloon is planning to strengthen its business in India through openings new stores in all retail formats. The company does not have a presence in two other sections of the retail value chain: raw materials and manufacturing. Pantaloon has entered several joint ventures to add new and branded products in its portfolio. which would catalyze consumption within the company's retail stores. online sales and other channels). the company has invested in different new businesses such as capital. consumer finance. operations and distribution (warehousing and transportation) and sales (physical store operations.

Such alliances would help it attain international appeal and enhance the customer shopping experience The company is planning to launch more several brands across categories in the near future including kid's wear. 1) The graph given below shows that the most of the people like to buy their product at the beginning of the month and they like to buy their products once in a month. Over 200 million footfalls are expected in our stores by 2006-07. which represents 20-30 % of all modern retail space coming up in the next three years. Pantaloon's production facilities are concentrated on trousers. of retail space to be operational by end 2008.7 million square feet of retail space. sportswear and possibly home textiles. ft. The company has also signed close to 10 million sq.equipments through an alliance with Axiom Telecom. The company has stores in nearly 30 cities across the country. constituting over 2. shirts and jeans. innerwear. 37 | P a g e .

38 | P a g e . 3) In the present scenario the customers likes to spend money because it shows the living status in the society.2) From the survey I found that the more people like to buy their product from pantaloon retail because they know the brand very well.

5) Assortment of the product is very important so that customer can get their product easily. 39 | P a g e .4) From the graph given below it shows that the 62% of the people think that the location of the store is perfect because it’s in the main market area and any one can come easily.

5% After sale service 12.Yes 30 No 10 6) People think that the quality of the product is good. Price 30% Quality 35% Service 22. 40 | P a g e .5% 7) This is one of the best strategy adopted by the pantaloon that they provide free home delivery if a customer purchase over Rs 500.

of customers are dissatisfied. 0% 13% 25% VERY SATISFIED SATISFIED VERY DISSATISFIED DISSATISFIED 62% P ALOONCUS ANT TOMERSS TIS ACTION A F 41 | P a g e .In my research I analyze the more no.Yes 30 No 10 8) CUSTOMERS SATISFACTION TABLE No. customers Very Satisfied 40 10 Satisfied 25 Very Dissatisfied 0 Dissatisfied 5 Analysis: . of customers are satisfied and some customers are very satisfied and less no.

CustomersPerception NO YES 42 | P a g e .9) In customer perception Pantaloon Company used by the marketing strategy is Good for the customers or Not No. of Customers 40 Yes 34 No 6 Analysis:- During the period of research I analyze the maximum customers are think Pantaloon Company used by the marketing strategy is good for the customers and very less customers are think it is not good.

internet. That’s why people know them very well and they have a positive perception about the pantaloon retail India limited. radio. television and banners. News paper 30% Radio 20% Television 50% CHAPTER-7 43 | P a g e .10) Promotional strategy used by the pantaloon this is also a strategy used by the company to make a brand they use all the tools of advertising like news papers.

As per customers wants they are providing goods and services to the customers. As well as customer satisfaction level. etc. etc.FINDINGS I am find out the which strategies used by the company. all part is suitable for the customers that’s why customers are buying the goods. In customers perception companies marketing strategy is very good and helpful to the company and the customers. price. what they want. 44 | P a g e . after sale services. In my serve I am find out the more than 50% customers satisfied to the pantaloon services. I was met forty customers of Pantaloon Company. They are thinking for the customers it means what are the needs of the customers. assortment of the product. Location of the store is convenient of the customers. And ask the some questions and find out the customer perception as well as satisfaction level. The company’s goods & services. quality product.

after sales service. As per they are using the strategy many customers give preference to the Pantaloon Company. The Pantaloon Company is providing to the good services. quality product. They also maintain a clean floors and nice staff who always ready to help you because a good behavior is also a reason for increase in sales. They also maintain a good relationship with their customer they don’t want to disappoint any customer that is why they provide a good service to customer.CHAPTER-8 CONCLUSION I conclude that the Pantaloon Company is the big company. They know very well how to attract the customers. etc. 45 | P a g e . If they not behave properly with the customer so that can be a big loss for the company. And they also have a good brand name their promotion strategy is good they know how to retain a customer and how to make a loyal customer and they believe to make a loyal customer because they know one loyal customer can make many customer. reasonable price. that’s why pantaloon customers satisfied level is high. And its marketing strategy is very effective.

Between 2000 to 5000 e. How often do you buy your product? a. Once in a year 2. From where do you buy your product? a. Once a week b. How much do you normally spent in a single shopping? a. What do you think this is the perfect location of the store? a. e. No 46 | P a g e . More than 5000 4. Once a month c. c.CHAPTER-9 APPENDICES QUESTIONNAIRS 1. Between 1000 to 2000 d. Less than 500 b. Between 500 to 1000 c. Yes b. b. Once in a six month e. Pantaloon Vishal mega mart Reliance Spencer’s More 3. Once in a three month d. d.

What do you feel he marketing strategy adopted by the company is good for customer or bad? a. Dissatisfied 9. Assortment of the product in store is suitable for you? a. Very dissatisfied d. Services d. Very satisfied b. No bad 10. Quality c. News paper b.5. On which basis you have purchase the goods? a. 7. Radio c. Satisfied c. Price b. Yes b. Yes b. No 8. Are you satisfied with the services of the store? a. Television 47 | P a g e . After sales services . According to you free home delivery providing to the shop is one of the reason of increase the sales? a. No 6. Yes good b. How do you come to know about this location of store? a.

16. 15. 13. 5. 9. S. 4. Anuradha Vishwanathan V. 17. Ram Kishan K. Sharma Uma Maheswar Rao Bhavani Y. Sai Shrikant Shiv Parvati Madhusudan Narsing Rao Pravin Kumar Kishan Srikrishna Srinivas G. 3.R. 2. 29.NAME OF THE PANTALOON CUSTOMERS 1. 27. Uarilal Ravindarnath Pravin Kumar Shekhar Kiran K Srinivas Rao K Sevarth Papa Rao Rasamal Rao Nageswar Rao 48 | P a g e . pand Rangachary Dr sermista chandraShekar Waghmare P. 10. 19. 18. Sarloe R. 14. K. 26. 22. Yadatah D. 21.Suresh M. 23. 24. 6. 12. 11. 8. 20. 7. 30. 28. 25.

Yousuf sharief D.Devikar Alim Ranga swami B. 34. 37. 38. 39. M.Ehcari Ranga Reddy Jaganmohan Rao Venkat Narsaya Madhukar Raj CHAPTER-10 49 | P a g e . 40.S. 32. 35.31. 33.S.Nagabhushan K. 36.

fibre2fashion.rediff.com www.BIBLIOGRAPHY Www.com www.scribd.com 50 | P a g e .corporateinformation.com www.datamonitar.com www.pantaloon.com www.

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