Professional Documents
Culture Documents
(Final Report)
ON
“A study of customer perception on the
Marketing strategies followed by PANTALOON
For brand building”
By
Md. Rabiul Hoque
0806999004
(MBA 2008-10)
“A study of
Customer perception on the marketing strategies followed by
PANTALOON for brand building”
ACKNOWLEDGEMENT
LIST OF TABLES
ABSTRACT/SUMMARY
CHAPTER 1 :INTRODUCTION
Objectives
Limitations
Methodology
CHAPTER 2: INDUSTRY PROFILE
COMPANY HISTORY
COMPPANY PROFILE
COMPANYSTRATEGIES
CHAPTER 7 : FINDINGS
CHAPTER 8: CONCLUSION
CHAPTER 9 : ANNEXURES
CHAPTER 10 : BIBLIOGRAPHY
ACKNOWLEDGEMENT
thisproject to the best of my abilities. Heartfelt thanks to all the persons whose ideas,
critical insights and suggestions have been valuable in the preparation ofthis report.
Md Rabiul Hoque
(0806999006)
(MBA2008-2010)
(6th trimester)
ABSTRACT
This report discuss about a customer perception and strategies used
by retail companies.
My topic is customer perception on strategy followed by
pantaloons for brand building. To make a good brand image a
company need to make a good strategy and all aspects of business
that affected by that strategy. As we all know customer is the king
of the market they have the right to go anywhere. A customer
thinks very differently that called consumer behavior. 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. So the company need to make good
strategy and first starts with 4p’s of the company. Product, price,
place, promotion these are the most important things to remember
in mind. And the porters generic strategy cost leadership, product
differentiation and focus these strategies help company to compete
with its competitors.
CHAPTER-1
INTRODUCTION
Objective
To find out the different strategies used by the company to increase
the sales.
To find out how this strategies useful to company as well as
customers.
To find out customers satisfaction level.
To get a right feedback from the existing customers.
Pantaloon to hive off Big Bazaar, Food Bazaar
Limitations
Methodology
1. The study involves the primary data which is collected
through questionnaire,interview, and observation.
2. It involves use of secondary sources such as web and other
research articlesprinted by various financial institutions and
other journals and magazine.
3. It involves analysis and tabulation of data which is collected
from customers isdone by various means such as line graphs,
pie charts and bar graphs.
4. The project involves the study of customer’s perception.
CHAPTER-2
ABOUT RETAIL INDUSTRY IN INDIA
Retail is India's largest industry. It accounts for over 10 per cent of the India's
GDP and around 8 per cent of the employment. Retail sector is one of India's
fastest growing sectors with a 5 per cent compounded annual growth rate. India's
huge middle class base and its untapped retail industry are key attractions for
global retail giants planning to enter newer markets. Driven by changing
lifestyles, strong income growth and favorable demographic patterns, Indian
retail is expected to grow 25 per cent annually. It is expected that retail in India
could be worth US$ 175-200 billion by 2016. The organized retail industry in
India had not evolved till the early 1990s. Until then, the industry was
dominated by the un-organized sector. It was a seller’s market, with a limited
number of brands, and little choice available to customers. Lack of trained
manpower, tax laws and government regulations all discouraged the growth of
organized retailing in India during that period. 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. Foundation for organized retail in
India was laid by Kishore Biyani of Pantaloons Retails India Limited (PRIL).
Following Pantaloons’ successful venture a host of Indian business giants such
as Reliance, Bharti, Birla and others are now entering into retail sector. A
number of factors are driving India's retail market. These include: increase in the
young working population, hefty pay-packets, nuclear families in urban areas,
increasing workingwomen population, increase in disposable income and
customer aspiration, increase in expenditure for luxury items, and low share of
organized retailing. India's retail boom is manifested in sprawling shopping
centers, multiplex- malls and huge complexes that offer shopping, entertainment
and food all under one roof. But there is a flip side to the boom in the retail
sector. It is feared that the entry of global business giants into organized retail
would make redundant the neighborhood Karana stores
Trained human resource for retail is another big challenge. The talent base
is limited and withthe entry of big giants there is a cat fight among them to
retain this talent. This has resulted inbig salary hikes at the level of upper
and middle management and thereby eroding the profitmargin of the
business. All the companies have laid out ambitious expansion plans
forthemselves and they may be hampered due lack of requisite skilled
manpower.
But retail offers tremendous for the growth of Indian economy. If all the
above challenges aretackled prudently there is a great potential that retail
may offer employment opportunities tomillions living in small town and
cities and in the process distributing the benefits ofeconomic boom and
resulting in equitable growth.
Indian Retail Market
700
600
500
400
300
200
100
0
2006 2010 2015
US $ Billion
%split
Urban 45
Rural 55
CHAPTER-3
COMPANY HISTORY
Pantaloons Retail
Pantaloon Retail (India) Limited is India's leading retailer that operates
multiple retail formats in both the value and lifestyle segment. Pantaloon
has ushered a retail revolution in India and its founder Kishore Biyani is
known as India's "King of Retail". Pantaloon's headquarter is in Mumbai.
The company currently operates over 5 million square feet of retail space
and has plans to increase it to 30 million sq. ft by 2011. Pantaloon has plans
to open over 3000 new stores by 2010.
COMPANY PROFILE
Pantaloon Retail (India) Limited is India’s leading retailer with gross sales
ofRs. 2,019 crores for the financial year ending June 2006. The company
operates acrossmultiple segments including –Food, Books & Music,
Fashion, Telecom & IT, Home &
Electronics, General Merchandise, Leisure & Entertainment, Wellness,
Health & Beauty andE-tailing and that helps the company cater to every
Indian customer.Some of the leading formats include, Pantaloons
(department store), Central (seamless malls),Blue Sky (fashion accessories)
and all (fashion apparel for plus-size individuals), Big
Bazaar(hypermarket), Food Bazaar (supermarket), Fashion Station (popular
fashion), collection i(home furnishings), E-Zone (consumer electronics),
Depot (books and music) and ShoeFactory (footwear).
BOARD OF DIRECTORS
Mr. Kishore Biyani, Managing Director
Kishore Biyani is the Managing Director of Pantaloon Retail (India)
Limitedand the Group Chief Executive Officer of Future Group.
Major Milestones
1987 Company incorporated as Manz Wear Private Limited. Launch
of Pantaloons trouser, India’s first formal trouser brand.
1991 Launch of BARE, the Indian jeans brand.
1992 Initial public offer (IPO) was made in the month of May.
1994 The Pantaloon Shoppe – exclusive menswear store in
franchiseeformat launched across the nation. The company starts the
distribution ofbranded garments through multi-brand retail outlets
across the nation.
1995 John Miller –Formal shirt brand launched.
1997 Pantaloons – India’s family store launched in Kolkata.
2001 Big Bazaar, ‘Is se sasta aur accha kahi nahin’ - India’s
firsthypermarket chain launched.
2002 Food Bazaar, the supermarket chain is launched.
2004 Central – ‘Shop, Eat, Celebrate in the Heart of Our City’ -
India’sfirst seamless mall is launched in Bangalore.
2005 Fashion Station - the popular fashion chain is launched
2006 Future Capital Holdings, the company’s financial arm launches
realestate funds Kshitij and Horizon and private equity fund In
division.Plans forays into insurance and consumer credit. Multiple
retail formatsincluding Collection i, Furniture Bazaar, Shoe Factory,
EZone, Depotand futurebazaar.com are launched across the nation.
Group enters intojoint venture agreements with ETAM Group and
Generali.
ABOUT THE COMPANY
Pantaloon Retail (India) Limited, is India’s leading retailer that
operatesmultiple retail formats in both the value and lifestyle segment of
the Indianconsumer market. Headquartered in Mumbai (Bombay), the
company operatesover 10,000,000 square feet (930,000 m2) of retail space,
has over 1,000 stores
across 61 cities in India and employs over 30,000 people.
The company’s leading formats include Pantaloons, a chain of fashion
outlets,Big Bazaar, a uniquely Indian hypermarket chain, Food Bazaar, a
supermarketchain, blends the look, touch and feel of Indian bazaars with
aspects of modernretail like choice, convenience and quality and Central, a
chain of seamless
destination malls. Some of its other formats include, Depot, Shoe
Factory,Brand Factory, Blue Sky, aLL, Top 10 and Star and Sitara. The
company alsooperates an online portal, futurebazaar.com.
Future Group
Future Group is one of the country’s leading business groups present in
retail,asset management, consumer finance, insurance, retail media, retail
spaces andlogistics. Future Group is present in 61 cities and 65 rural
locations. Thegroup’s flagship company, Pantaloon Retail (India) Limited
operates over
10,000,000 square feet (930,000 m2) of retail space, has over 1,000 stores
andemploys over 30,000 people. Some of its leading retail formats
includePantaloons, Big Bazaar, Central, Food Bazaar, Home Town, eZone,
Depot,Future Money and online retail format www.futurebazaar.com.
Lines of Business
The company is present across several lines of business which have
variousformats (stores) operational under it. These include:
Food - Food Bazaar, Chamosa, Spoon, Brew Bar, Sports Bar
&SportsBar Express, Cafe Bollywood,
Fashion - Pantaloons, Central, aLL, Brand Factory, Blue Sky, Top
10,Fashion Station, Big Bazaar, Lee Cooper (JV),
General Merchandise - Big Bazaar, Shoe Factory, Navras,
ElectronicsBazaar, Furniture Bazaar, KB'S FAIR PRICE
Electronics - eZone,
Home Improvement - Home Town
Furniture - Collection i, Furniture Bazaar, Home Bazaar
E-tailing (Online Shopping) - www.futurebazaar.com
Books & Music - Depot
Leisure & Entertainment - Bowling Co., F123
Wellness - Star & Sitara, Tulsi
Telecom & IT - Gen M, M Bazaar, M-Port, ConvergeM
Fashion
The group offers a variety of options in fashion. Its brands include aLL,
BlueSky, Central, Etam, Fashion Station, Gini & Jony, Navaras,
Pantaloons, andTop 10.
MARKET STRATEGY
Market strategy is defined as an action plan for influencing customer
choices and obtaining amarket share. Market strategy should entice
customers to buy the product or service. Market
strategy encompasses customer perception of the relationship between
price and quality. Isthe 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? Marketresearch identifies the price and quality relationship
customers perceive to be important.
Remember, customer perception is the bottom line.
Market strategy also includes the distribution channels for the product,
pricing and terms ofsale, promotion and advertising plan, marketing
budgets, inventory selection andmanagement, visual merchandising,
customer relations and an evaluation of the marketingstrategy.
The marketing plan provides information on what the market will be (retail,
wholesale) andwhat specific customer groups will be targeted, what will be
sold, where it will be sold, andhow wide the area of distribution will be.
Ideally, market segments with a potential for high sales, profits, growth and
a minimum ofcompetition are the most attractive.
The prop of marketing is based on the need identification and the USP's are
prepared basedon the identified needs. If the needs are wrongly identified
then even the USP's which areunique to the product would not serve the
purpose. USP identifies a product/service from itscompetitors while UCP is
the perception or picture a customer develops from all types ofpromotional
inputs from the company about their product or service. It is often seen
thatsome brands do extremely well compared to other brands having the
same resources. Thereason for the brands not to do well is probably the
communications which does not reflect
the customer’s perception. So it is not the USP but UCP that plays an
important role .This haslead to the concept - “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 ourrelationship with our customers. Given that 90% plus of
our orders at some point involve the
phone, how we handle the telephone is essential to creating a perception for
our customer thataligns with the company mission of service. Smiling
stretches your vocal cords, and gives amore upbeat presentation to the
customer. Slowing down ensures that the customersperception is of an
organized systematic company that can handle their project. Getting itdone
right and on time consistently.Article source:
http://www.fibre2fashion.com
BY SOUMEN CHATTERJEE
Unique customer perception (UCP): According to soumen, Unique
Customer Perception iswhat is required by companies instead of Unique
Selling Proposition. It is ultimately that
customer look for satisfaction based on the picture of perception derived
from varioussources. If these perceptions of customer can be analyzed then
promotion would be easier forcustomer centric marketing. This has lead to
the concept - “Customer Perception is the Ruleand not Customer
Satisfaction”.
Article Source: http://EzineArticles.com/?expert=Soumen_Chatterjee
BY JEN B
Brand recognition will change customer perception: According to JenB,
for a biggerstronger business you have to get some serious brand
recognition happening. People need toknow your name before any thing
else. You want people to thing of you a certain way too.This is the ticket to
getting the image that you want. If you get a lot of blank looks frompeople
that are not current customers then you probably have no recognition at all.
Thatmeans it is time for an advertising switch. Even if people don’t buy the
product they willrecognized the name. Remembering a business is one step
closer to trusting a business. Brandrecognition is accomplished only by
people seeing your logo and business name over andover again. This will
create the repetition that your customers and future customers need topick
your product out of a crowd time and time again.
Article Source: http://www.a1articles.com/article_1035917_15.html
HUAWEI
Satisfy customers perception is the biggest challenge: In meeting
customers' requirementsand measuring customers' satisfaction indexes,
customer perception should be definitely a
key consideration. Qualified services in the operation execution layer,
technical managementlayer and business development layer are necessary.
It is more important to understandcustomer expectations and make efforts
to exceed their expectations. In customer satisfactionmanagement, the
biggest challenge is customer perception management, or
customerperception satisfaction. The major characteristics of service is
intangible, hence the corevalue of services is not like a physical product but
the spiritual experience and perception ofcustomers. The final aim and
ideal effect of service provisioning is to have customers
Perceive and enjoy the service. Such perception is both at psychological
and behavior levels,and it is the contents of high quality life in the modern
society. Customers are seeking for
Material deliverables as well as perceptive enjoyment when purchasing a
service product.Since perceptive enjoyment is a vital service objective, one
of the key service management
Objectives shall be meeting customers' perceptive enjoyment.
Article source: Huawei Technologies Co., Ltd
MORGAN STANLEY
Quick Comment – Impact on our views: We met Rakesh Biyani, Director
Future Group,who heads the retail business. Our investment thesis
regarding improving business outlookand availability of capital to fund
growth plans continues to hold good. Management hasconsciously shifted
focus to growth quality rather than just growth. We reiterate ourOverweight
rating and believe that any volatility in the stock price should be viewed as
an entry opportunity. 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. This compares with
F2009 SSG of 7.0%. The company plans to
achieve this target by adopting active merchandise management. First, the
company islikely to ensure that its fastest-sellingproducts don’t go out of
stock. It has increased its orderper SKU range from 900-1,400 to 600-6,000
to ensure reduced stock outs for fast-sellingproducts. Second, it has put in
place a system to continuously monitor
underperformingcategories/segments/SKUs so that they can be
immediately replaced. Third, it has improved
product quality and pricing across its merchandise (particularly private
label) to ensuremarket share gains. Fourth, it has now set store-wise,
product-wise and SKU-wise,daily/weekly sales targets so that the
monitoring and feedback system improves significantly.
CHAPTER-6
EMPIRICAL ANALYSIS
Pantaloon Retail is investing in new business lines, which would catalyze
consumptionwithin the company's retail stores. In line with this strategy,
the company has invested indifferent new businesses such as capital,
consumer finance, brands, andmedia, through jointventures with various
companies across the world.
Pantaloon has entered several joint ventures to add new and branded
products in its portfolio.The company offers office products through a joint
venture with Staples, and telecomequipments through an alliance with
Axiom Telecom. Such alliances would help it attaininternational appeal
and enhance the customer shopping experience.
The company has stores in nearly 30 cities across the country, constituting
over 2.7 millionsquare feet of retail space. The company has also signed
close to 10 million sq. ft. of retailspace to be operational by end 2008,
which represents 20-30 % of all modern retail spacecoming up in the next
three years. Over 200 million footfalls are expected in our stores by2006-
07.
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.
25
20
15
10
0
once a week once a month 0nce in a six months once in a year
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%
25%
Pantaloon
45% Reliance
Spencer's
Vishal mega mart
More
5%
20%
3) In the present scenario the customers likes to spend
money because it shows the living status in the society.
7%
18%
20%
Less then 500
Between 500-1000
Between 1000-2000
20% Between 2000-5000
More then 5000
35%
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.
38%
Yes
No
62%
5) Assortment of the product is very important so that
customer can get their product easily.
YES NO
30 10
25%
Yes
No
75%
9
10
5
6
0
Price Quality Service After sale service
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.
YES NO
30 10
25%
Yes
No
75%
13% 25%
very satisfied
Satisfied
Very dissatisfied
Dissatisfied
63%
9) In customer perception Pantaloon Company used by the
marketing strategy is Good for the customers or Not
No of customer Yes No
40 34 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.
15%
Yes
No
85%
10)Promotional strategy used by the pantaloon this is also a
strategyused by the company to make a brand they use all the
tools ofadvertising like news papers, radio, internet, television
and banners.That’s why people know them very well and they
have a positive
perception about the pantaloon retail India limited.
20
20
18
16
14 12
12
10
8 8
6
4
2
0
News paper
Television
Others
CHAPTER-7
FINDINGS
I am find out the which strategies used by the company. As well as
customersatisfaction level. I was met forty customers of Pantaloon
Company. And ask thesome questions and find out the customer perception
as well as satisfactionlevel.
In my serve I am find out the more than 50% customers satisfied to
thepantaloon services. In customers perception companies marketing
strategy isvery good and helpful to the company and the customers.
The company’s goods & services, quality product, price, after sale
services,assortment of the product, etc. all part is suitable for the customers
that’s whycustomers are buying the goods.
Location of the store is convenient of the customers. They are thinking for
thecustomers it means what are the needs of the customers, what they want,
etc. Asper customers wants they are providing goods and services to the
customers.
CHAPTER-8
CONCLUSION
I conclude that the Pantaloon Company is the big company. And its
marketingstrategy is very effective. They know very well how to attract the
customers. Asper they are using the strategy many customers give
preference to the PantaloonCompany. And they also have a good brand
name their promotion strategy isgood 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
loyalcustomer can make many customer.
They also maintain a clean floors and nice staff who always ready to help
youbecause a good behavior is also a reason for increase in sales. If they
not behaveproperly with the customer so that can be a big loss for the
company.
They also maintain a good relationship with their customer they don’t want
todisappoint any customer that is why they provide a good service to
customer.
The Pantaloon Company is providing to the good services, after sales
service,quality product, reasonable price, etc. that’s why pantaloon
customers satisfiedlevel is high.
CHAPTER-9
APPENDICES
QUESTIONNAIRS
1. How often do you buy your product?
a) Once a week
b) Once a month
c) Once in a three month
d) Once in a six month
e) Once in a year
2. From where do you buy your product?
a) Pantaloon
b) Vishal mega mart
c) Reliance
d) Spencer’s
e) More
3. How much do you normally spent in a single shopping?
a. Less than 500
b. Between 500 to 1000
c. Between 1000 to 2000
d. Between 2000 to 5000
e. More than 5000
4. What do you think this is the perfect location of the store?
a) Yes
b) No
5. Assortment of the product in store is suitable for you?
a) Yes
b) No
6. On which basis you have purchase the goods?
a) Price
b) Quality
c) Services
d) After sales services
7. According to you free home delivery providing to the shop is
oneof the reason of increase the sales?
a) Yes
b) No
8. Are you satisfied with the services of the store?
a) Very satisfied
b) Satisfied
c) Very dissatisfied
d) Dissatisfied
9. What do you feel he marketing strategy adopted by the company
isgood for customer or bad?
a) Yes good
b) No bad
10. How do you come to know about this location of store?
a) News paper
b) Television
c) Others
BIBLIOGRAPHY
Www.pantaloon.com
www.datamonitar.com
www.fibre2fashion.com
www.rediff.com
www.scribd.com
www.corporateinformation.com