PANTALOON RETAIL INDIA (LIMITED

)

PROJECT REPORT

CONSUMER INTRECTION & CONSUMER SERVICE
KRISHNA PAL VERMA 8/27/2009

Guided By
Mr. UMESH PANDAY,¶DM¶

Submitted by
KRISHNA PAL VERMA

JPPGDM-080121 Contect no.-09452967144 J.P. Institute of Management Meerut

Distribuyion Channel

Board of directors Mr. Kishore Biyani, Managing Director

Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the Group Chief Executive Officer of Future Group. To know more.

Mr. Gopikishan Biyani, Wholetime Director

Gopikishan Biyani, is a commerce graduate and has more than twenty years of experience in the textile business.
Mr. Rakesh Biyani, Wholetime Director

Rakesh Biyani, is a commerce graduate and has been actively involved in category management; retail stores operations, IT and exports. He has been instrumental in the implementation of the various new retail formats.
Mr. Vijay Kumar Chopra, Independent Director

V.K.Chopra is a fellow member of The Institute of Chartered Accountants of India (ICAI) by profession and is a Certified Associate of Indian Institute of Bankers (CAIIB). His banking career spans over 31 years and he has served senior management positions in Central Bank of India, Oriental Bank of Commerce, SIDBI, Corporation Bank and SEBI.
Mr. Shailesh Haribhakti, Independent Director

Shri Shailesh Haribhakti, is a Chartered Accountant, Cost Accountant, and a Certified Internal Auditor. He is the Deputy Managing Partner of Haribhakti & Co., Chartered Accountants and past president of Indian merchant Chambers. He is on the Board of several Public Limited Companies, including Indian Petrochemicals Corporation Ltd., Ambuja Cement Eastern Ltd. etc. He is on the Board of Company since June 1, 1999.
Mr. S Doreswamy, Independent Director

S. Doreswamy, 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 among others.

Dr. D O Koshy, Independent Director

D. O. Koshy, holds a doctorate from IIT, Delhi and is the Director of National Institute of Design (NID), Ahmedabad. 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, Chennai and Bangalore. He is a renowned consultant specializing in international marketing and apparel retail management.

Ms. Bala Deshpande, Independent Director

Bala Deshpande, is Independent Director, Pantaloon Retail (India) Ltd. and also serves on the boards of Deccan Aviation, Nagarjuna Construction, Welspun India and Indus League Clothing Ltd, among others.

Mr. Anil Harish, Independent Director

Anil Harish, is the partner of DM Harish & Co. Associates & Solicitors and an LLM from University of Miami. He also serves on the board of Mahindra Gesco, Unitech, IndusInd Bank and Hinduja TMT, among others.

Specialized besinesses

CONTENTS
y Acknowledgement y Preface y Executive Summary y Objective of the project y Research Methodology y Company Profile y Marketing Plan y Management Hierarchy y Findings And Analysis y Limitation y Suggestions/Recommendations y Bibliography y Questionnaire

ACKNOWLEDGEMENT

A work is never a work of an individual. We owe a sense of gratitude to the intelligence and co -operation of those people who had been so easy to let us understand what we needed from time to time for completion of thi s exclusive project. We want to express our gratitude towards Mrs. Ismeet dheer ,HR, Pantaloons :: DT City Center:: Delhi ,for giving us an opportunity to do this project. Last but not the least, we would like to forward our gratitude to
Mr.Avnish pariyar, ¶store head¶,Mr.Umesh Panday,¶DM¶ Internet & J.P. Institute of Management College. Meerut . who always endured us and stood

by us and without whom we could not have envisaged the completion of our project.

KRISHNA PAL VERMA PGDM (2nd YEAR)

PREFACE

Business,theworld over are struggling to suction conpetitiveness in a rapidly globling economy. The boundaries of traditional trade partner are getting dissolved and emerging market present future opportunities as well as new rivals. In such competitive global environment, it is imperative for every organization to generate the highest level of customer satisfaction. To attain these objectives, it has become necessary for the organization to look for the high skilled and employee according to job. These days, corporate across the world are facing a difficult task of ³Customer interaction´. Retaining its best employees, a company can improve customer satisfaction, product sales etc. in other words a business can be improve in all over direction. Future group is a reputed company; future group brand store such as life style, shoppers stop, etc..Pantaloons store sailing many home brand international brand for man casuals and formals and also for kids and ladies. During working on this project I have observed how the pantaloon store because they perform our job very honestly and they maintain the section perfectly.

Major Milestones 1987 1991 1992 1994

Company incorporated as Manz Wear Private Limited. Launch of Pantaloons trouser, India¶s first formal trouser brand. Launch of BARE, the Indian jeans brand. Initial public offer (IPO) was made in the month of May. The Pantaloon Shoppe ± exclusive menswear store in franchisee format launched across the nation. The company starts the distribution of branded garments through multi -brand retail outlets across the nation. John Miller ±Formal shirt brand launched. Pantaloons ± India¶s family store launched in Kolkata. Big Bazaar, µIs se sasta aur accha kahi nahin¶ - India¶s first hypermarket chain launched. Food Bazaar, the supermarket chain is launched. Central ± µShop, Eat, Celebrate In The Heart Of Our City¶ - India¶s first seamless mall is launched in Bangalore. Fashion Station the popular fashion chain is launched

1995 1997 2001 2002 2004 2005

aLL ± µa little larger¶ - exclusive stores for plus-size individuals is launched
2006

Future Capital Holdings, the company¶s financial arm launches real estate funds Kshitij and Horizon and private equity fund Indivision. Plans forays into insurance and consumer credit. Multiple retail formats including Collection i, Furnitu re Bazaar, Shoe Factory, EZone, Depot and futurebazaar.com are launched across the nation. Group enters into joint venture agreements with Generali.

What is Pantaloons ? Celebrate the Fresh Look, Fresh Feel & Fresh Attitude at Pantaloons Fresh Fashion ! Fashion is all about the now. Why, then should people not see a fresh look every time they walk into a Pantaloons store? That is the thought behind 'Fresh Fashion'. An idea that has captured the imagination of young India. With a focus on the youth of today, Pantaloons offers trendy and hip fashion that defines the hopes and aspirations of this demography. Pantaloons Fresh Fashion stands out as a fashion trendsetter, on the lines of how fashion is followed internationally. The µlook¶ and µwhat¶s in¶ today for the season is sacrosanct. Pantaloons takes its promise of 'fresh fashion' very seriously making available to its customers the latest in fashion every week! All Pantaloons stores reflect the new ideology -- Fresh Feeling, Fresh Attitude, Fresh Fashion. The stores offer fresh collections and are visually stimulating thanks to appealing interiors and attractive product display! The first Pantaloons was opened in Gariahat in 1997. Over the years, it has undergone several transitions. When it was first launched, this store mostly sold external brands. Gradually, it started retailing a mix of external brands while at the same time introduced its own private brands. Initially positioned as a family store, it finally veered towards becoming a fashion store with an emphasis on 'youth' and clear focus on µfresh fashion¶. Today, the fashion store extends to almost all the major cities across the country. Pantaloons has established its presence with stores not just in the metros, but also in smaller towns.

Pantaloons stores have a wide variety of categories like casualwear, ethnicwear, formalwear, partywear and sportswear for Men, Women and Kids

Images Fashion Forum 2009

Most Admired Fashion Group Of The Year - Future Group Most Admired Private Label - Pantaloons, the lifestyle format Critics Choice Creation - Central For Pioneering Effort In Retail Concept

Coca-Cola Golden Spoon Awards 2009

Most Admired Food & Grocery Retailer Of The Year Most Admired Food Court Most Admired Food Professional
2008 Indian Retail Forum Awards 2008

Most Admired Retail Company of the year - Future Group Retail Face of the Year - Kishore Biyani Best Retailer Of The Year ( Hypermarket) - Big Bazaar Future Group was awarded the Most Admired Retail Company of the year by the Indian Retail Forum at a glittering ceremony organised in Mumbai. Mr Kishore Biyani also won Retail Face of the Year. India Retail Forum (IRF) is a platform for intellectual insights and information exchange for the retail business in the Indian subcontinent. The forum presents the business of retail in the region to a global audience, with the express aim of facilitating understanding about and encouraging investment in this massive marketplace. Big Bazaar, the value format of Future Group bagged the Best Retailer Of The Year ( Hypermarket).
The INDIASTAR Award 2008

Food Bazaar: Best Packaging Innovation Food Bazaar bagged the INDIASTAR Award for Best Packaging Innovation in India, for its private label brand Fresh And Pure Chakki Atta. INDIASTAR Award is a biennial event which aims to promote and

encourage excellence in packaging design, innovation and t echnology. The contest was established in 1972 and is considered as the most popular and premier event for India¶s packaging fraternity. This year there were around 357 entries and the participants had to submit a sample of their designs for selection. With this award, Pantaloon Retail (India) Limited becomes the first Indian Retailer to win the prestigious INDIASTAR Award.
Retail Asia Pacific 500 Top Awards 2008

Gold Winner -Top Retailer 2008 Asia Pacific Retail Asia Publishing Pte, the institutor of these awards, aims to set a platform that appraise, raises and recognizes the development and growth of retailing throughout the Asia Pacific region.
Coca-Cola Golden Spoon Awards 2008

Most Admired Food & Grocery Retail Visionary of the Year: Kishore Biyani Most Admired Food & Grocery Retailer of the Year ± Supermarkets: Food Bazaar Most Admired Food & Grocery Retailer of the Year - Hypermarkets: Big Bazaar Most Admired Retailer of the Year - Dynamic Growth in Network Expansion across Food, Beverages & Grocery: Future Group Most Admired Food & Grocery Retailer of the Year - Consumer's Choice: Big Bazaar The Coca-Cola Golden Spoon Awards 2008, were given away for the first time as a culmination of the µFood Forum India 2008¶ ± a two day convention, which saw the participation of leading brands, retailers & retail support organizations from across the globe. The awards were presented to honour enterprise, innovation and achievement in the food retailing business as a benchmark of excellence.
The Reid & Taylor Awards For Retail Excellence 2008

Retail Leadership Award: Kishore Biyani Retail Best Employer of the Year: Future Group

Retailer of The Year: Home Products and Office Improvements: HomeTown The Reid & Taylor Awards for Retail Excellence are an important feature of the Asia Retail Congress, Asia¶s single most important global platform to promote world-class retail practices. These awards are aimed at honouring the best, in the Asian Retail scenario. India played host to Asia Retail Congress 2008.

2007 Images Retail Awards

Most Admired Retail Face of the Year: Kishore Biyani Most admired retailer of the year: Large format, multi product store: Big Bazaar Most admired retailer of the year: Food and Grocery: Food Bazaar Most admired retailer of the year: Home & office improvement: HomeTown Most admired Retail Company of the year: Pantaloon Retail (India) Ltd. Images Retail Forum followed strict international benchmarks in deciding the top honours for Images Retail Awards ¶07, with IRIS as knowledge partner and global consulting firm AT Kearney as the Process Approver .
National Retail Federation Awards International Retailer for the Year 2007 ± Pantaloon Retail (India) Ltd

The National Retail Federation is the world¶s largest retail trade association with over 1.4 million members in the US and across the world. Some of the past winners of the award include Metro AG (Germany), Carrefour (France), Zara (Spain), Boticario (Brazil) and Ito Yokado (Japan). The award was presented at the Retail¶s Big Show held in January 2007 in New York.
World Retail Congress Awards Emerging Market Retailer of the Year 2007 ± Pantaloon Retail (India) Ltd

The inaugural World Retail Congress held in Barcelona, Spain in March 2007 attracted over one thousand retail professionals from over sixty countries. The awards were decided by a multinational Grand Jury.

Winners in other categories included Inditex, Mall of Emirates, Marks & Spencer and IKEA.
Hewitt Best Employers 2007 Best Employers in India (Rank 14th) ± Pantaloon Retail (India) Ltd

Leading human resources consultancy, Hewitt Associates conducts an annual survey of the best employers in India, as part of its global initiative. It is based on CEO interview, People Practices Inventory and Employee Opinion Surveys. Pantaloon Retail became the only retailer to feature among the twenty-five best employers in India.
PC World Indian Website Awards Best Indian Website In The Shopping Category - Futurebazaar.com

PC World, a leading consumer technology magazine selected the best Indian websites in various categories based on use of technology for delivering solutions, information being presented in an intuitive a nd concise manner and overall experience aided by design.
Reader¶s Digest Trusted Brands Platinum Awards Trusted Brands Platinum Award (Supermarket Category) ± Big Bazaar

The Reader¶s Digest awards are based on surveys done among consumers by independent research agency, Nielsen Media Research. This is the second consecutive time Big Bazaar has won this award.
2006 Retail Asia Pacific Top 500 Awards Asia Pacific Best of the Best Retailers ± Pantaloon Retail (India) Ltd Best Retailer in India ± Pantaloon Retail (India) Ltd

The Retail Asia publication in association with EuroMonitor and KPMG honours the best retailers in 14 countries across the Asia Pacific region. The awards were presented in Singapore in October, 2006.
Asiamoney Awards Best Managed Company in India (Mid-cap) ± Pantaloon retail (India) Ltd.

The Asiamoney publication conducts a poll among fund manages and investors and does a quantitative analysis of financial performance to select best managed companies in Asian countrie s.

Ernst & Young Entrepreneur of the Year Award Ernst & Young Entrepreneur of the Year (Services) ± Kishore Biyani

Considered to be one of the most prestigious business awards in India, a jury comprising leading names in Indian business selected the win ners based on courage, creativity, passion, endurance and vision.
CNBC Indian Business Leaders Awards The First Generation Entrepreneur of the Year ± Kishore Biyani

Organized by CNBC-TV18, the twelve awardees in various categories are decided by a high profile jury, along with research partners - The University of Chicago Graduate School of Business, Development Dimensions International (DDI) and AC Neilson ORG MARG.
Lakshmipat Singhania ± IIM Lucknow National Leadership Awards Young Business Leader ± Kishore Biyani

The award recognizes and honors individuals who have contributed consistently to the betterment of our country through their pursuit of excellence. The awards were presented in New Delhi by the Prime Minister Dr. Manmohan Singh in December, 20 06.
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

The Images Retail Awards are decided through a nationwide consumer & industry poll and nominations followed by performance assessment by team of analysts and jury.
Readers¶ Digest Awards Platinum Trusted Brand Award - Big Bazaar

The Reader¶s Digest awards are based on surveys done among consumers by independent research agency, Nielsen Media Research.
CNBC Awaaz Consumer Awards Most Preferred Large Food & Grocery Supermarket ± Big Bazaar

Conducted in association with AC Nielsen-ORG Marg across 21 major cities, nearly 10,000 consumers were asked to choose their most prefe rred brands.
Reid & Taylor Awards for Retail Excellence Retail Entrepreneur of the Year ± Kishore Biyani 2005 Images Retail Awards 2005

PRIL- Most Admired Retailer of the Year Food Bazaar- Retailer of the Year(Food and Grocery) Big Bazaar-Retailer of the Year(Value Retailing) Central-Retail Launch of the Year
Voted by Business Today magazine as one of the

Top 20 Companies in India to watch in 2005 India¶s most investor-friendly companies in the top 75 India¶s Biggest wealth creators in the top 100
DAKS London

PRIL- Brand Builder of the Year
2004 Images Retail Awards 2004

PRIL- Most Admired Retailer of the Year Food Bazaar- Retailer of the Year(Food and Grocery) Big Bazaar-Retailer of the Year(Value Retailing) Central-Retail Launch of the Year
Reid & Taylor and DLF Awards

PRIL - Retailer of the year
2003 Indian Express Award

PRIL ±Marketing Excellence and Excellence in Brand Building
Indusland Bank (India Brand Summit)

PRIL - Excellence in Brand Building

CONSUMER BUYING BEHAVIOR Understanding the buying behavior of the target market is the essential task of marketing management under marketing concept. The consumer market consists of all the individuals and households who buy or acquire good and services for personal consumptions. The buying behavior tries to find out the answers for the questions, who buys? How do they buy? Where do they buy? Do they buy? (A) FACTORS INFLUENCING CONSUMER BUYING BEHAVIOR

There are four major factors that influence the buying behavior such as cultural factors, social factors, personal factors, and psychological factors. i.
CULTURAL FACTORS: Culture is the most fundamental determinant

of a person wants and behavior. Values, per ceptions, preferences, and behavior are the main variable under culture of an individual. Each culture contains sub-culture like nationality, religious group, geographical area, and linguistic divisions etc. ii.
SOCIAL FACTORS: A consumer behavior is also influenced by social

factors such as the consumer reference group family and social roles and status. iii.
PERSONAL FACTORS: A buyer decision is also influenced by his or

personal characteristics, notably the buyers age, lifestyle, occupation, economic circumstance s etc.

PSYCHOLOGICAL FACTORS: a person buying choice is also influenced

by four major psychological factors such as motivation, perception, learning belief and attitudes. (B) BUYING DECISION PROCESS It includes buying roles, types of buying and steps in bu ying process.
I. BUYING ROLE

The buying role could be classified into four parts. These are initiator, influencer, decider and buyer.
II. TYPES OF BUYING BEHAVIOR

Consumer decision taking varies with the type of buying decision. There are four types buying behavior such as Complex buying behavior, Habitual buying behavior, Variety seeking buying behavior.
III. STAGES IN BUYING DECISION PROCESS

Here are five stages in buying decision process namely problem recognition search, evaluation of alternatives purchase decision and past purchase behavior. NEED RECOGNITION The buying process starts with the buyer¶s recognition of a problem of need. The buyer senses a difference between his actual state and desired state. INFORMATION SEARCH There are different sources from where a consumer can gather information like personal sources commercial sources, experimental sources.

EVALUATION OF ALTERNATIVES After gathering information about different products the customer will be in a fuss as to choose which product among the mainly alternatives consumer

usually evaluate the alternatives on traditional basis, on the basis of utility function etc. from the many alternative consumers at last choose the best one for him. PURCHASE DECISION A consumer who decides to execute purchase intention will be making up to five purchase decisions. POST PURCHASE BEHAVIOR After purchasing the product and services the consumer will experience some level of satisfaction or dissatisfaction with the product and se rvices that will influence subsequent behavior. If consumer is satisfied he may show the probability of buying the product the next time, satisfied customer will say good thing about the product, proving the statement that "satisfied customer is the best advertisement.´ A dissatisfied customer may take some action against it. They may try to reduce the dissonance by abandoning returning the product. Understanding consumer needs and buying process is the foundation of any company. By understanding how buyer s go through problem recognition, information search evaluation of alternatives, the purchase decision and post purchase behavior marketers can pick up many clues as to how to meet buyers need.

LITERATURE REVIEW Marketing Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and services of value with others or other wise it is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, services to create exchanges that satisfy individual and organizational goals. Marketing Strategy Marketing strategy is a set of objectives, policies and rules that leads the company's marketing efforts. It is the marketing approa ch to accomplish the bread objective of the marketing approach to accomplish the bread objective of the marketing plan. The various process of marketing strategy are given below. 1. Selecting largest markets segmentation 2. Positioning 3. Product 4. Price 5. Place 6. Promotion 7. Research and development 8. Marketing research

Market segmentation and selecting target market It is an effort to increase a company's precision marketing. The starting point of any segmentation discussion is mass marketing. In mass marketing, the seller engaged in the mass production, mass distribution and mass promotion of one

product for all buyers. Market segment consists of a large identifiable group within a market with similar wants, purchasing power geographical location, buying attitudes or buying habita. It is an approach midway between mass marketing and individual marketing. Through this the choice of distribution channels, and communicaton channels become much easier. The researchers try to form segments by looking at consumer characteristics; geographic, demographic, and psychographic. After segmenting the market then target market selected.
2. Positioning: - The positioning is a creative exercise donw with an existing

product. the well known products generally hold a distinctive position in consumer's minds. The positioning requires that every tangible aspect of product, price, place and promotion must suppor t the chosen positioning strategy. Company should develop a unique selling proposition (USP) for each brand and stick to it, PPL consistently promotes its DAP fertilizer by Higher yield at lower cost. As companies increase the number of claims for their br and, they risk disbelief and a loss of clear positioning. In general a company must avoid four major positioning errors. Those are under positioning over positioning, confused positioning and doubtful positioning. 3. Product: - A product is any offering that can satisfy a need or want. The major types of basic offerings are goods, services, experiences, events, places, properties, organizations, information and ideas. The company gives more importance in quality, packaging, services etc. to satisfy the cust omers. The products has it's life cycle. The product strategies are modified in different stages of product life cycle.

4. Price: - It is the most important aspect in company's point of view. Price of the product will be decided by the company according to the competitor's price.
5. Place: - This plays a major role in the entire marketing system. The company

emphasis on it's distribution network. Proper distribution network gives proper availability of the product. 6. Promotion: - Promotion is the one of the major aspects in marketing strategies. By adopting various promotional activities the company create strong brand image. It also helps in increasing the brand awareness. It includes advertising, sales promotioins and public relations etc. 7. Research and Development: - After testing, the new product manager must develop a preliminary marketing strategy plan for introducing the new product in to the market. The plan consists of three parts. The first part describes the target market's size, structure and behavior. The second part out lines the planned price, distribution strategy and marketing budget for the first year. The third part of the development describes the long run sales and profit goals and marketing mix strategy over time.

MARKETING MIX Target Market

Product

Price

Promotion

Place

Product variety Quality Design Features Brand name Packaging Sizes Services Warrantie returns

List price Discounts Allowances Payment period Credit terms

Sales promotion Advertising Sales forces Public relation Direct marketing

Channels Coverage Assortments Locations Inventory Transport

MARKETING STRATEGY

Marketing is not Euclidean geometry a fixed system of concept. Rather marketing is one of the dynamic fields with in the management arena. The market faces continually a new challenge everyday and companies must respond to it positively. Therefore it is not surprising that new market idea keep surfacing to meet new market place challenges. The market process is applicable to more than goods and services. Anything related to market including ideas, events, policies, prices and personalities comes under market strategy. However it is important to emphasize opportunity in the market through market strategy. Following strategies adopted by the organization. A strong quality of the product and customer satisfaction: Customers always believe in good quality product. in my survey I found that in percentage term more people is quality conscious and not price conscious. Customer satisfaction is very important part of the organization that at any cost they have to fulfill. A growing relationship with customer and customer retention: Nowadays a good relation with customer is very important for organization. Sale is totally depending on the relation with the customers. Customer's retention is also a major aspect for growing business. It means keep the old customer and try to make new customer. Focus on competitors activity: Every organization should must be careful about it's competitors step, because they can disturb the growing sales process of the organization. A growing emphasis on global thinking and local marketing planning:

Companies are increasing by pursuing market beyond their borders. 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.

Promotional Strategy Under the market strategy promotional idea is very important. Organization provides some schemes or rebates to retailers or consumers. They make advertisement according to convenient of the people and the feature of the product. So on the basis of marketing strategy a organizat ion runs in the market. It is several types of which makes helpful to increase sales and turnover of the organization.

RESEARCH METHODOLOGY:: RESEARCH METHODOLOGY The research for tthe sttudy compriised off:: The research for he s udy compr se d o A. SECONDARY RESEARCH:

A comprehensive secondary research was carried out to find out the various factors that affect the buying decisions of the consumers in a

department store. The main objective of this study was to analyze how much significant effect each of these factors has on conversion rate of a store and also their influence on the buying decisions of the consumers. It consisted of: - Searching secondary data sources, which included books, journals, magazines, Internet, library, etc. - Research and analysis of the secondary data collected from the store to determine the trends.

B. PRIMARY RESEARCH

The research was carriied outt iin ttwo sttages:: The research was carr ed ou n wo s ages 1.. Trackiing tthe custtomerrs¶ movementts iin tthe sttorre.. 1 Track ng he cus ome s¶ movemen s n he s o e The movementt of around 100 custtomers¶¶ iin tthe sttore was ttracked on tthe The movemen of around 100 cus omers n he s ore was racked on he sttorre map (obttaiined form tthe sttore).. Thiis was carrrriied outt iin a sttrructturred,, s o e map (ob a ned form he s ore) Th s was ca ed ou n a s uc u ed diisguiised manner tto underrsttand and evalluatte:: d sgu sed manner o unde s and and eva ua e  The hiigh,, mediium and llow ttraffffiic zones iin tthe sttore..  The h gh med um and ow ra c zones n he s ore  The purchases and converrsiion rratte off each secttiion..  The purchases and conve s on a e o each sec on  Custtomerrs¶ movementt iin tthe sttore and tthe diifferrences iin tthe behaviiorrs of  Cus ome s¶ movemen n he s ore and he d ffe ences n he behav o s of men//women// kiids and ttheiirr diifferentt shoppiing prrefferences.. men women k ds and he d fferen shopp ng p e erences  The rrettaiill settttiings tthatt affectt tthe buyiing deciisiions..  The e a se ngs ha affec he buy ng dec s ons
2.. Custtomer surrvey tthrough a sttructtured,, non--diisguiised questtiionnaiire.. 2 Cus omer su vey hrough a s ruc ured non d sgu sed ques onna re

The questtiionnaiirre was prreparred on tthe basiis of iin-deptt iintterrviiews wiitth The ques onna e was p epa ed on he bas s of n-dep n e v ews w h tthe sttorre custtomerrs and managementt sttafff.. IItt was ttestt marketted on a few he s o e cus ome s and managemen s a f was es marke ed on a fe w consumers and tthen tthe ffiinall drraftt was made.. consumers and hen he na d af was made

SAMPLING PLAN:: SAMPLING PLAN Non Probabiilliitty Conveniience samplliing metthod was used tto sellectt tthe Non Probab y Conven ence samp ng me hod was used o se ec he custtomerrs.. cus ome s
y y y y

y y

The samplle siize was 100,, a numberr derriived jjudgmenttalllly.. The samp e s ze was 100 a numbe de ved udgmen a y Anallyttiicall ttoolls used:: SPSS Soffttwarre and Miicrosoftt Excell.. Ana y ca oo s used SPSS So wa e and M crosof Exce

2..4a LIIMITATIONS OF THE SURVEY:: 2 4a L MITATIONS OF THE SURVEY 

The research and anallysiis of tthe prrojjectt was conductted over a perriiod of  The research and ana ys s of he p o ec was conduc ed over a pe od of tthree montths.. The scope of tthiis projjectt has tthereforre been lliimiitted by tthe hree mon hs The scope of h s pro ec has herefo e been m ed by he ttiime avaiillablle forr tthe same.. me ava ab e fo he same  The sttudy was conductted on tthe fflloor and hence was lliimiitted tto tthe  The s udy was conduc ed on he oor and hence was m ed o he custtomers viisiittiing tthe sttore.. cus omers v s ng he s ore  Non Probabiilliitty Conveniience Samplliing,, whiich has been used iin tthe  Non Probab y Conven ence Samp ng wh ch has been used n he rresearrch,, has iitts own setts of lliimiittattiions,, tthough an effforrtt was made tto be esea ch has s own se s of m a ons hough an e fo was made o be as rattiionall as possiiblle whiille pursuiing tthiis rresearrch.. as ra ona as poss b e wh e pursu ng h s esea ch  Allll tthe lliimiittattiions and diisadvanttages tthatt attttach tthemsellves tto any effortt  A he m a ons and d sadvan ages ha a ach hemse ves o any effor iin tthe collllecttiion,, ttabullattiion and anallysiis of tthe prriimarry datta applly tto tthiis n he co ec on abu a on and ana ys s of he p ma y da a app y o h s projjectt as wellll.. Thiis woulld iincllude tthe sellecttiion errrorr,, tthe measurrementt pro ec as we Th s wou d nc ude he se ec on e ro he measu emen error,, iintterrviiewer effectt,, non- rresponse ratte,, and datta llogiin error off tthe error n e v ewer effec non- esponse ra e and da a og n error o he anallystt.. ana ys

2.4b SCOPE OF THE STUDY y The study is limited to the customers visiting the store from the entire

NCR region.
y The study is also limited to a particular store only.

SECONDARY RESEARCH SECONDARY RESEARCH
3.1 SCIENCE OF SHOPPING

The science of shopping is a hybrid discipline, part physical science and part social science and only part science at all because it is also an art. It is a practical field concerned with providing information that can improve the retailer's edge and the odds of making a wrong decision. Much of the value of the science lies in the ability to go beyond collecting data and making educated guesses about what it means and how best to respond.
1

³A recent study discovered that 75-80 per cent of shoppers often leave a

store without any purchases due to the inability to find products or differentiate between them.´ Here comes the two-fold challenge. How to

connect with the customer and at the same time grow in a competitive marketplace crowded with similarities at every level? Since the mass market and universal audience are things of the past, traditional advertising no longer works to convey a brand's image with a difference. In search for growth, companies must think beyond conventional avenues. For most, growt h is not always about square footage expansion but making the most of what they already have.

The very concept of conversion rate implies that shoppers need to be transformed into buyers, i.e. when potential customer becomes an actual customer. Conversion rates vary widely depending on what kind of store or product we're talking about. In some sections of the supermarket, conversion rate is probably 100% (dairy or toilet paper). In an art gallery full of paintings,

probably the conversion will be less than 1%. Conversion rate measures what you make of what you have - it shows how well or how poorly the entire enterprise is functioning.

3.2 CUSTOMER SERVICE

For a retailer, it costs more to get new customers than to keep the ones you have. Also the longer you can keep a customer, the more valuable that customer becomes. Studies done by consultants such as McKinsey have shown

that repeat customers generate over twice as much gross income than new customers.
2

"Firms that only understand buyer behavio r may do a good job of selling

existing products within existing channels of distribution. But firms that understand consumption behaviors are able to create value with new or improved products and distribution channels.´

For example, if an apparel retailer wants to find out what types of clothing its

typical customers really want to buy, it might want to get into consumers' closets, literally. Enlightened retailers might ask women to show them how they put together their wardrobes -- how they use the fashions they own, which may span several years. From such an exercise, retailers can learn how consumers mix and match items, which items they choose to keep in their closets for many years, and why.

However, many organizations do not allocate the time, or the money, to educate and train their employees to deliver the service customers want. Often, the reason is that those organizations don't realize how important customer service is to their bottom lines. Importance of a good customer service: 

Educating employees to provide quality service works to an organization's advantage in many ways. Of primary importance is that it improves customer retention. By finding out what services customers want -- and then delivering them -- businesses can develop and nurture a strong, loyal customer base.  Loyal customers are not only important, they are essential. 3´Research
shows 65 percent of a typical organization's business comes from current loyal customers.´

Besides making up a base of customers who continue to purchase a company's products or services, those loyal customers help drive the
company's business by delivering the most powerful and cheapest form of advertising available : word of mouth. A strong customer base is the

most credible source to potential customers, spreading the reputation of the business, free of charge, and attracting new customers. 

4As a customer's relationship with [a] company lengthens, profits rise. ³Customer defections have a sur prisingly powerful impact on the
bottom line. It is common for a business to lose 15 to 20 percent of its customers each year. When defections are cut in half, the average growth rate more than doubles. A five percent change in rate of retention swings profit increases from 25 percent all the way to 100 percent .´ 

Bad service has another pitfall: It causes employee turnover. Studies have shown that employee turnover was inversely proportional to employee perceptions of the quality of service provided by the ir

employers. When service is perceived as bad, not only do consumers not like to patronize the company, but employees don't like to work for it. The highest turnover rates are associated with companies possessing the lowest employee ratings of service qua lity. That finding was confirmed when Sears surveyed customers in 771 of its stores. In stores that received relatively high customer service ratings, 54 percent of the sales force turned over in a year compared with 83 percent at stores with low customer service scores.  How we treat customers throughout the year when they are
purchasing or even when they are returning items, sets the stage for their future business. Contradictions in consistency will drive them to

the competition. You see the gift at the holidays, is the gift our customers give us by coming back to show how much they have appreciated us all year long! 

Employees are not bad performers, just poorly trained. In order to have consistent service, employees must have consistent training on a continual basis. What's more is that they must be held accountable for their performance on a continual basis, not just at a once a year review time. Lastly, employees need to be rewarded consistently so that they realize their importance in the company. Wi thout them, there would be no business, now would there?  Treating Customers Well:
We make it difficult for them to buy and then we make it more difficult for them to bring it back and we wonder why they choose to shop elsewhere?

Train the employees to have patience to work within store policy and to do it positively while showing how proud they are of the store and its products.

PANTALOONS: Fashion by Pantaloons

Pantaloons is the company's departmental store and part of life style retail format. In fact, PRIL took its very initial steps in the retail journey by setting up the first Pantaloons store in Kolkata in 1997. In a short time Pantaloons has been able to carve a special place for it self in the hearts and minds of the aspirational Indian customers. The Stores have entire range of Menswear, Womenswear, Kidswear, Activewear, Accessories, Cosmetics, Fragrances, Homeware, Jewellery, Toys, Books, Music, Stationery, Gift, Novelties, etc. With 16 stores across the country and a n ever-increasing stable of private brands, Pantaloons - in the coming years is poised to become a leading fashion trendsetter. Growth through private labels: A striking characteristic of Pantaloons has been the strength of its private label programme. In Pantaloons 70% of apparel sales come from own labels. John Miller, Ajile. Scottsvile, Lombard, Annabelle, Honey, Bare are some of the successful brands created by the company. Manufacturing: There is a drive for backward integration, into manufacturing.
Pantaloons is a manufacturer retailer. Manufacturing helps the company plan

the products better depending on what is selling at the stores and also helps better margin. The company has trouser manufacturing unit in Tarapur and a denim plant in Goregaon, Mumbai.

Customer Relationship Management (CRM)

CRM is a management approach that seeks to create, develop and enhance relationships with carefully targeted customers to maximize customer value, corporate profitability and shareholder value. CRM leverages information technology (IT) to implement relationship-marketing strategies. Already customers are getting actively involved, either directly or indirectly with production processes. They make suggestions, they ask for smaller, brighter, easier-to-use products.

CRM is not a tool that is specific to any industry type, so there is no one single definition of Customer Relationship Management. It is up to the organization to formulate one for itself in order to achieve the CRM goals that it sets for itself. Companies that have adopted CRM regard every customer as an individual with specific needs and tailor their services accordingly. Information Technology comes into the picture to help manage Customer relationships in an organized way. On an average a company has only a 5 to 20 percent probabil ity of making a successful sale to a new prospect but has a 60 to 70 percent probability of selling again to active customers. It would be wiser to invest in encouraging an existing customer to purchase again. Companies that followed up lapsed cases experienced 20 to 40 percent successful sales. Without a doubt customer retention is vital to every company's long -term profitability and success and CRM, through target selling and customer loyalty programs, can help to motivate the best customers and to remain loyal as a method of increasing revenues internally.

Rising customer expectations have stiffened the competition among companies to improve their customer support services. Today¶s customer has access to the latest technological devices that give him ins tant information, allows him to make instant transactions, buy, sell or transfer money, he has access to it all over his palm top, PDA, mobile phone or desktop. Today¶s customer is knowledgeable, he knows what he wants and the Internet is a powerful tool i n his hands.

More than ever, customers today have an important role to play in the product lifecycle. Customers are continually pressing for improved support services in terms of product coverage, business-ease, response-time and price (or at least value-for-money!).´ With a wide variety of services available at competitive prices and easily accessible at the click of a button, improved customer services are becoming the need of the day. Customers are driving companies to migrate from being purely product-centric to purely customer-centric, taking care of all customer requirements even before they are demanded. From current customer trends, it is easy to define the future customer. The volume of information available via the Internet will make the future customer a knowledgeable one. As more customers and businesses go online, the Internet will foster a global community that communicates at real -time. Customers will have access to a wider variety of products and prices to choose from. To stay ahead of competition, companies will have to anticipate customer needs even before a need arises. As more and more women began to drive two wheelers in India, the smarter manufacturers realized that one factor that might hold a sari clad woman back, would be having to kick-start her bike. Along came the selfstarter button and presto, a surge of women two wheeler drivers! The success of companies will depend on how well they are able to predict customer behavior, anticipate requirements and provide for them. The future customer will have a larger stake in the company¶s project plans, his input will have value and his feedback will be consequential to the development of products or the way a service is delivered. This implies a significant alteration in the supply chains that we see today.

Fiigure F gure

The CRM strategy should include: (a) Operational CRM: Automating interaction with the customers and sales force, and (b) Analytical CRM: Sophisticated analysis of the customer data generated by operational CRM and other sources like POS (Point of Sales) transactions, web site transactions, and third-party data providers. A typical retail organization has a huge customer base and often customer's needs are fairly differentiated. Without the means to analyze voluminous customer data, CRM Strategy is bound to be a failure. Hence, Analytical CRM forms the core of a retailer's customer relationship strategy. Marketing and sales functions are the primary beneficiaries of Analytical CRM and the Main touch points from where the in sights gained about the customer is absorbed in the Organization. Analytical CRM uses the key business intelligence tools like data warehousing, data mining, and OLAP to present a unified view of the customer. Following are some of the uses of Analytical CRM In Retailing

Customer Segmentation

Customer segmentation is a vital ingredient in a retail organization's marketing recipe. It can offer insights into how different segments respond to shifts in demographics, fashions and trends. For example it can he lp classify customers in the following segments 1) Customers who respond to new promotions 2) Customers who respond to new product launch 3) Customers who respond to discounts 4) Customers who show propensity to purchase specific products

Campaign/ Promotion Effectiveness Analysis

Once a campaign is launched its effectiveness can be studied across different media and in terms of costs and benefits; this greatly helps in understanding what goes into a successful marketing campaign. Campaign/ promotion effectiveness analysis can answer questions like: Which media channels have been most successful in the past for various campaigns? Which geographic locations responded well to a particular campaign? What were the relative costs and benefits of this campai gn? Which customer segments responded to the campaign?

Customer Lifetime Value

Not all customers are equally profitable. At the same time customers who are not very profitable today may have the potential of being profitable in future. Hence it is absolutely essential to identify customers with high lifetime value; the idea is to establish long-term relations with these customers. The basic methodology used to calculate customer lifetime value is - deduct the cost of servicing a customer from the expected future revenue generated by the customer, add to this the net value of new custo mers referred by this customer, and discount the result for the duration of the relationship. Though this sounds easy, there are a number of subjective variables like overall duration of the customer's relation with the retailer, gap between intermediate c ash flows, and discount rate. We suggest data mining tools should be used to develop customized models for calculating customer lifetime value.

Customer Loyalty Analysis

It is more economical to retain an existing customer than to acquire a new one. To develop effective customer retention programs it is vital to analyze the reasons for customer attrition. Business Intelligence helps in understanding customer attrition with respect to various factors influencing a customer and at times one can drill down to individual transactions, which might have resulted in the change of loyalty.
Cross Selling

Retailers use the vast amount of customer information available with them to cross sell other products at the time of purchase. This effort is largely based on the tastes of a particular customer, which can be analyzed using BI tools based on previous purchases. Retailers can also 'up sell' - sell more profitable products - to the customer at the time of contact.
Product Pricing

Pricing is one of the most crucial marketing decisions taken by retailers. Often an increase in price of a product can result in lower sales and customer adoption of replacement products. Using data warehousing and data mining, retailers can develop sophisticated price models for different products, which can establish price - sales relationships for the product and how changes in prices affect the sales of other products.

Target Marketing

Retailers can optimize the overall marketing and promotion effort by targeting campaigns to specific customers or groups of customers. Target marketing can be based on a very simple analysis of the buying habits of the customer or the customer group; but increasingly data mining tools are being used to define specific customer segments that are likely to r espond to particular types of campaigns.

Fiig ure F gure

Anally siis off Questiionnaiire Ana ys s o Quest onna re

ere o you like to s o ?
15

46 39

Malls

Markets

Others

Most of the respondents go to near by areas to shop. The malls in Mumbai where weekend rush is a major pinpoint. The others are markets like Crawford , Heera panna.

Which Shopping store's do you like to shop?

12%

6%

6% 36%

Life style Pantaloon Shoppers Stop W estside Others

40%

The preference towards the area of Mall holds the key to where people frequently shop. The success of a store is concentrated towards the area of the place and the brand value it holds in terms of the changing consumer lifestyles. The average walk ins are high in Shoppers stop because of the wholesome entertainment in the location of the store. I believe if Pantaloon as a store can look for opportunities where there is wholesome entertainment along with the Mall E.g. Forum in Kolkotta it would surely add to the ir profits.

Are you a member of any Shopping Store Loyalty Program

31
44
NO

The Loyalty club members are less because of the number of people who frequently shop at the same store in a particular area. The respondents I asked questionnaire vary from places in Pantaloon, Shoppers Stop, Internet and marketing my mailers.

How did you come to know about the loyalty club?
30 25 20 15 10 0 5 3 0 3 bony 0 22 2 Pantaloon

3 18 1 Shoppers Stop
In store

0 10 2 Westside

0 7 0 thers

riends

Internet

As you can see majority of the loyalty programs members are through In store purchases. The loyalty clubs in India are at initial stage of getting the customers. There are similar programs of every organized retailer for membership. The criteria for Pantaloon are higher because of majority of respondent from being collected from that area.

How did you come to know about the loyalty club?
1 0.8 0.6 0.4 0.2 0 0 0

0 0

0 0

0 0

0 0

#REF!

#REF!

#REF!

Which shopping club are you a member?
0% 0% 0%

0

0

0

0

0

Rate o r refere

l

0% 0% 0% 0%

0

0

0

0

0

Most of the people who frequently shop at the same stores are members of two or more loyalty club programs. Most of the common is being Shoppers Stop and Pantaloon. Shoppers Stop is most preferred loyalty club with members getting updates and knows how about the store regularly. Pantaloon loyalty program isn¶t followed in terms of its CRM processes unlike Shoppers Stop. Westside stores follow up is very punctual in terms of their reminders to their selected customers.

What offers do you get by those clubs?
#REF! #REF! #REF! #REF!

1 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 0 0 0 0 0

All the loyalty programs provide similar offers. They invite you to different events depending upon your membership relating to the card you hold.

Pa taloo

oyalty cl of services

i terms

20 15 10 5 0

eward tructure Promotion Offers

chemes privileges edemption options

25
20 15 10 5 0

ense of bonding with staff

Value Added services of the store

Other preferences:Parking preferences

The respondents who were members of pantaloon loyalty club were 24. The graph clearly shows that the staff of pantaloon is very good and helpful in terms of the services. Unlike most of the shoppers people aren¶t satisfied enough with

the kind of reward structure the company provides. But, the best part of the people is the kind of promotion offers differs from the rivals. I think this can be a Unique Selling Preposition for pantaloon stores all over India.

Why aren't you a part of any shopping store loyalty program?
Minimum Requirements

22% 44%
34%

Don¶t shop frequently at the same store ot interested

Most of the time the shoppers aren¶t interested in any sort of loyalty program because it doesn¶t add to much to their value. The criteria for the shopping stores to have a loyalty program is to increase the frequent purchases of the store but, somehow it isn¶t able to cater the services of the respondent who is at an age where he or she is doing her graduation or about to start his or her career.

Would you consider being a part of a loyalty club?
YES NO

32

68

Out of the 31 respondents most of the people aren¶t willing to be a member of any loyalty club as such probably because of shopping at different places in different areas. One of the mains reason being said by few customers is they don¶t add to the overall value to their purchases.

Ratio of Respondent
Male Female

27 48

SEC Classificatio
A1 40 34 30 20 10 14 0 0

otal

B2

27 A2

Series1

B1

Loyalty Club Members
23 A1 25 20

15 10 5 B2 2 0 0 19 A2
Series1

B1

As you can clearly see from the above graphs the loyalty club members are usually high-end A1 customers who frequently shop at a particular place. Most of the people are working executives and businessmen who find ambience and latest fashions the key dominants to shop and enroll for the loyalty program.
Fiindiings fr om Q uestiionnaiire F nd ngs fro m Que st onna re

1) People respond better to Internet mailers then courier. I think that this suggests the loyalty club members are technosavy so, there is a need for all

the loyalty clubs to start their online ventures in relation to their CRM process. 2) Most of the organized retailers in India are offering similar services on customer loyalty programs. From a customer¶s stand he or she would only be differentiated by the brand name of the company. 3) Shoppers Stop is the number one retailer whose Customer loyalty program is very well integrated compared to the other retailers. 4) Pantaloon as a store appeals more to the working class and family oriented people especially in Gurgoan. 5) Lifestyle is at a initial phase of launching the Customer loyalty program. 6) The average number of walks ins in a store is generally on the place of the mall. 7) The CRM strategies of all the organized retailers are still very less integrated in terms of the international players like Wal- Mart and other multi chain outlets in the World. 8) I think the changing consumer patterns are not tapped by the retailers for the Customer loyalty programs 9) Banks provide cash back credit card in form of an extended discount to various organized retail outlets. 10)The Reward structure needs a revision to tap in more customers so that the profit margins can be increased 11)Overall, the companies should start looking for means to attract people coming in at the store in the form of extended shopping hou rs, double points on off days etc. 12)The pantaloon store should have a small area specified to the entertainment segment inside the store in the form of contest etc.

BIBLIOGRAPHY

BOOKS

AUTHOR TITLE PLACE OF PUBLICATION DATE OF PUBLICATION NUMBER OF PAGES

PHILIP KOTLER MARKETING MANAGEMENT PRENTICE HALL OF INDIA LTD. NEW DELHI SEPTEMBER 31-50

MAGAZINE

AUTHOR TITLE DATE OF ISSUE PAGE NUMBER

MURTHY E.N. ANALYST JULY 2006 41-46

INTERNET

- www.pantaloon.com - www.amazon.com - www.economictimes.com

APPENDIX

QUESTIONAIEER (1) (2) (3) (4) (5) NAME : AGE : ADERSS: GENDER: How often do you buy apparels(clothes) ?

(6)

(7)

- Once a week - Once in 15 days - Once a month - Once every three month - Once every 6 month - Once a Year From where do you buy your apparels(clothes) ? y Pram id y Central ¶s y Shopper¶s y Mega mart How much do you normally spend on apparels(cloths) bought from shopping mall in a single shopping

(8)

(9)

y Less than 500 y Between 500 to 1000 y Between 1000 to 2000 y Between 2000 to 5000 y More than 5000 y Not applicable Do you have µGreen Card µ? y Yes y No Are you interested to be a part of µGreen Card ¶? y Yes y No

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