STRATEGIES OF PANTALOON RETAIL (INDIA) LIMITED

Back ground Pantaloon Retail (India) Limited is India¶s largest leading retailers. It operates on multiple platforms like Value and life style segment in the Indian consumers market. Company head quarters located in Mumbai. As on Feb 2009 Company operates over 12 million square feet of retail space, 1000 stores in 71 cities with employee strength of 30,000 people. The company is in aspect of giving retailing a modern look with reachable for middle and middle lower class people. Retailing includes retail formats like Pantaloons, Big bazzer, Food bazzar, brand factory, Blue sky, and Top 10, Star & sitar and e zone. The company also operates on online future bazzar.com for upper class that can get internet connectivity. Home Town a large-format home solutions store. Pantaloon Retail is the flagship company of Future Group, a business group catering to the entire Indian consumption space. Future Group led by its founder and Group CEO, Mr. Kishore Biyani, is one of India¶s leading business houses with multiple businesses spanning across the consumption space. While retail forms the core business activity of Future Group, group subsidiaries are present in consumer finance, capital, insurance, leisure and entertainment, brand development, retail real estate development, retail media and logistics. [1]

Corporate statement  Our customers will not just get what they need, but also get them where, how and when they need.  We will not just post satisfactory results, we will write success stories.  We will not just operate efficiently in the Indian economy, we will evolve it.  We will not just spot trends, we will set trends by marrying our understanding of the Indian consumer to their needs of tomorrow.[2]

Rewrite Rules, Retain Values.
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Strategies of Pantaloon retail (India) limited

Specialized companies in retail media.Mail stone to world class retiling The company was established in 1987 as Manz wear private Limited launched its first product Pantaloons rousers. IPR and brand development and retail-led technology services become operational.ft store. In 2007 Group had turnover of $1 billion. US based company and with Genreali a Italian Insurance major. logistics. In 2004 central mall was lunched to concentrate on India one sector launched near brigade road in Bangalore. In 2006 company starts finical facilitation company to help internal need Future capital Holdings.com y Ernst & Young Entrepreneur of the Year Award Ernst & Young Entrepreneur of the Year (Services) ± Kishore Biyani y CNBC Indian Business Leaders Awards The First Generation Entrepreneur of the Year ± Kishore Biyani y Lakshmipat Singhania ± IIM Lucknow National Leadership Awards 2 Strategies of Pantaloon retail (India) limited . In May-1992 company offered Initial public offering. Starts its first Home building and improvement product retailing in Bangalore. In 2002 company initiated a lunch of food chain market Food bazzar. In 2005 group moves beyond retailing starts diversification and in organic growth by acquiring galaxy entrainment. In 2008 big bazaar crosses 100 malls. Indus League clothing and Planet retail. Starts joint ventures with Staples. Reorganization and awards y y y Coca-Cola Golden Spoon Awards 2008 2007 Images Retail Awards -Kishore Biyani National Retail Federation Awards International Retailer for the Year 2007 ± Pantaloon Retail (India) Ltd y World Retail Congress Awards Emerging Market Retailer of the Year 2007 ± Pantaloon Retail (India) Ltd y Hewitt Best Employers 2007 Best Employers in India (Rank 14th) ± Pantaloon Retail (India) Ltd y PC World Indian Website Awards Best Indian Website In The Shopping Category Futurebazaar. The company enters in modern retails business in 1997 from Kolkata with 8000Sq.

72 festivals Young country -60% below 30 years of age Resistance from small retailer Shut down of subiksha Figure 1 SWOT Analysis for Pantaloon retail chain 3 Strategies of Pantaloon retail (India) limited . Opportunities.12 different langauages.y Images Retail Awards Best Value Retail Store ± Big Bazaar Best Retail Destination ± Big Bazaar Best Food & Grocery Store ± Food Bazaar Retail Face of the Year ± Kishore Biyani y y Readers¶ Digest Awards Platinum Trusted Brand Award . and Threats involved in a project or in a business venture.1 SWOT analysis SWOT Analysis is a strategic planning method used to evaluate the Strengths. The technique first used by Stanford University in 1960 by Albert Humphrey. Favorability of the strategy based on the factors can be analyzed. no interaction of EDLP(Value pricing) customer for value pricing Threats Increasing Competitors Government polices Unrecognized modern retailing Local politics Opportunity Increasing interest in organized retailing Changing consumer preference Demographical advantage 29 states.Big Bazaar CNBC Awaaz Consumer Awards Most Preferred Large Food & Grocery Supermarket ± Big Bazaar 1. Weaknesses. Strength High brand equity Brand embossed Large Variance under one roof Weakness Management Uniform customer visits Multi diversified business No single platform for all the business needs. No bargaining markets .[3]This analysis helps in pointing out the objective and flow of business under internal and external factors. Figure 1 is formulated based on the factors for pantaloon retail chain.

In every new business company started to rewrite the rules by retaining values. They are  Diversification strategy  Classes destination strategy  Maximum market shares strategy Diversification strategy The company started its business as textile manufactures but growth in modern organized retailing attracted the company to switch diversify to the next consumption pattern.Company is very conscious about culture and regional consumption pattern.1. In uphill if you stop pedaling you will slide down´. Strategies change frequently due to orient to the customer¶s needs. But company did not forget ripe its strategy and values in the diversified company. Diversification is done in two main categories RETAIL FORMATS and SPECIALIZED BUSINESS shown in Figure 2. The statement express the need of continues learning process to form the strategies. Based on analysis its business strategies can be categorized in 3 major groups. The continues of learning.2 Strategies The company observes retail customer trend and changing consumption tastes. The company diversified and acquired a large business in organic and inorganic way. As Kishore Biyani MD Pantaloon retail India LTD says ³Retail is like riding bicycle. unlearning and relearning is applied to update the quick changing strategies across the organization. The company in latter stage organized to support each other by physical material flow if required. Organization is customer driven opposed to product driven . Figure 2 Business diversification of pantaloon [4] 4 Strategies of Pantaloon retail (India) limited .

The population of this class is more than 30%. INDIA THREE or struggling class. Each business is set to operate on defined strata. INDIA TWO or the serving class it includes people like house hold helpers. The class led life on hand to mouth existence. For this class as the big bazaar. INDIA ONE or consuming class .Till recent times the modern retiling formats is offered for this class. office peon etc. The need of the segment is local as they are finding it cheaper. Figure 3 shows change in consumption patter by different class in 2001-02 and 2007-08. As ambiance is factor and other pleasuring non value added services are necessary.INDIA ONE has changed from 25% to 35% normally the total profit in this segment will comparatively 20% more than they are sold in next segment. E zone. Company has divided Indian customers in three different groups.The population of this constitutes only 14%. products and quality requirements. They can¶t afford for beater living style. According Maslow¶s theory of hierarchy the 14% people are in self actualization and Esteem needs in the pyramid. Each has different values. INDIA ONE. To set and concentrate on one stratum is main objective of this strategy.Earning capacity of this class is 60% lesser than INDIA ONE. INDIA THREE has seen 10 % decline. Central. Future money and other retail formats are presented. Home town and star Galaxy entertainment.Classes destination strategy Future group has diversified its business keeping the retiling as common goal. This segment doesn¶t contribute much in the contribution cycle. In the needs hierarchy they are located in for Social and security . Food bazaar. INDIA TWO. brand factory. INDIA TWO has not changed it conception level. The present business model is not addressing this class. For this class pantaloon patterned Future bazaar. This is the people who make service INDIA ONE class. INDIA THREE. Figure 3 Indian consumption patterns [4] 5 Strategies of Pantaloon retail (India) limited .

When board shows price reduction from 100 to 99. This are considered as learning.The Company does not bothers about short term profit or loss by a strategy. Pricing strategies Pricing is strategy used by Pantaloon retail chain to attain maximum market shares. y Bundling Bundling is marketing tool sell two or more complementary product as a package with attractive price. Example a product is priced for 99 instead of 100.Maximum market shares strategy The retail chain by pantaloon in all business patterns tries to achieve maximum market share in all the products or service it provides . The company offers numerous schemes to attract the new customer as well as to retain the present customers. The application of this done by BOGO (Buy one Get One). The product value will be associated with external factors. y Promotional pricing Pricing to promote a product is a very common application. y Physiological discounting In India this approach is called as Bata rating system. Consumer looks at 3 digits to 2 digits rather than exact value. Organization utilizes this approach when product has emotional value rather than rational value. y Low interest rate financing Future money helps in asset purchase at 0% interest. The price is will lesser then individual selling price. 6 Strategies of Pantaloon retail (India) limited . The strategy achieved by focusing pricing factors in INDAI TWO and on service and quality in INDIA ONE. The company¶s schemes are categorized in following groups y Value pricing This approach is used where external factors such as recession or increased competition force companies to provide 'value' products and services to retain sales. The business will sell at marginal profit some times to attract the new customer who will prove potential customers in future. BTGO (Buy Two Get One Free) etc. Example: A Person needs one soap for a period of time But bundling with attractive price with more than 3 soaps can attract them.

Brand ambassador Organization structure & controls The entrepreneurial culture and spirit prevails in the company. Use scenario planning as a tool for quick decision making. Capital driven.3 Levers issues Human resource Well trained staff. y Bundling Marketing: Technique of offering two or more complementary goods or services together as a package deal. Balanced Score card approach Retail control Semi Centralized. Placed in major cities 7 Strategies of Pantaloon retail (India) limited . Large. organization design approach. Empowered individuals. No rigid organizational structure. With such experience crowded management is essential so to divert potential customers ³Wednesday bazaar´ where it will offer less profit margin sales.y Time pricing The innovative way of attract the customer is Timely pricing it is known that during holidays rate of customer is more. When the turnover of the day reached 30 cores where average is 5 cores. Short term contracts (based on lowest bid) Process Modern hard technology. The company has learnt it from strategy made on public holiday 26-Feb. Appetite for taking risks is encouraged. 1. Devolved internally. Self production facilities with small number of suppliers. Bundled items are sold at a price attractively lower than the total of their individual selling prices. Complex Sourcing E-touch with supplier. Reduction of profit margin with lot of advertisement will invite new customers. learning while doing. Appearance. new strategies and process innovations Facilities Special propose. Reduces cost.

This 8 Strategies of Pantaloon retail (India) limited . According to the Retail strategy work sheet in figure 4.2.6 Alternative strategy formulation Figure 4 Retail strategy work sheet for Pantaloon retail chain The retailing strategy work sheet worked out on the basic facts and requirements. To attain all the Retail outputs at the required level company should chose retailing business with the Internet shopping mode.

Home delivery is compulsory in this model in which customer can enjoy the pleasure of getting goods on door.asp. 2.7 Why not e-retailing The organization focused on mall base selling rather than e business in initial stages. Can provide customer with good quality as there is no chance of perishing. Apart from having so many advantages company had no focused on this pattern. Cost can be reduced drastically as there is no fixed assets or big infrastructures or inventory is required the complete model works on customer money because customer will pay fir for the item he will get tomorrow.pantaloon. http://www. Referencing 1. But still the company has introduce modern retailing malls to the social class people of India it has fear of threat of business decline from the competitors like Reliance fresh and Aditya birla more Who are potential competitors. The reasons for not selecting this system is probably  Targeted on INDIA ONE initially . The organization deploys the cultural and regional strategies to attract the customers. There is no billing time in this model as it is internet base within fractions of second billing is done.8 Conclusion Pantaloon retail India evolved its business strategy based on understudying customers.com/companyinfo. The changing emotions of customers are tracked and they are linked with the power of modern retailing environment.model provides great availability because the customer orders are processed and orders are given to suppliers immediately if product is not available the next supplier will be asked to supply. Retrieved on 16 Feb 2009 9 Strategies of Pantaloon retail (India) limited . Who are away from internet services  Supplier base and support was not so strong  Absence of good software support in supplier management  E business threat of cash jam in initial days  Face to face communication is tradition of Indian retailing from many years  The threat or cyber crime 2.

Retrieved on 20 Feb 2009 10 Strategies of Pantaloon retail (India) limited . Retrieved on 19 Feb 2009 4.com/PRIL_QIP_presn_Dec4_06_ver2.pantaloon.2. http://www.pantaloon. http://en.pdf .wikipedia. http://www.com/corporate_state.asp.org/wiki/SWOT_analysis . Retrieved on 18 Feb 2009 3.

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