The thesis is focused on finding out the concept of value retailing followed by the Pantaloons Retail India Limited in India and to do an empirical study and analysis on one of its business lines “The Food Bazaar”. The aim was also to find out that how the concept of private labeling has proved to be beneficial for the growth of the organization. The research was conducted to find out the ways and methods that the company has been following in the business of organized retailing including the hypermarket concept. The research was conducted in NCR region (Noida & Gurgaon) with the sample size of around 300 customers and primary information was collected from them in the form of questionnaire. Also the financial statements of past four years were analyzed to find out the financial performance of the company. After doing the brief analysis about each of the verticals of the Pantaloons Retail India Limited, an in-depth research was conducted on its food bazaar business line in order to find out that from where the modern consumer prefers to shop from and what ratio of his income is he willing to spend on various food items. The objective was to figure out that what are the various parameters that a shopper takes into account before he buys a particular item and how comfortable is he when he is buying from malls rather than the from the local kirana shops. The study was also done on consumer’s perception on the concept of “brand + bargain” and the analysis about the same has been mentioned at the end.


Thesis Synopsis
1) Title of the proposed thesis: success of Pantaloons retail India limited-the Indian wal-mart.

2) Objective of the thesis:
 To understand the concept of value retailing followed by pantaloons retail India limited in India.  To understand the concept of lifestyle retailing by the company.  To understand the management of the company, its expansion plans, growth strategies, challenges and competitive strength and a complete analysis of its business model.  To understand the concept of hypermarket and power of private labels by the company.  To do the empirical study on food bazaars

3) Research design :
 Research – Descriptive  Data source – Primary Data  Research Approach – Survey Method  Research Instrument – Questionnaire  Questionnaire type – Structured non-disguised  Type of questions – Both Close-ended & Open-ended  Sampling Unit – Individual


 Sample size – 300 customers approx 4) Scope of the thesis :the scope of the thesis is as follows:-  Complete information about Indian retail industry  The company background.pantaloon retail India  In-depth analysis about ‘Brand + Bargain shopping’  Empirical study on food bazaar o consumer perception research methodologies  Analysis  Suggestions and recommendations  conclusion iv . Sampling Frame – NCR  Sampling Procedure – Simple Random sampling to select 5 stores and convenience for select customer/shoppers.

Bharat Khera for his helpful and generously extended support and by sparing his valuable time to guide and suggest us towards completion of this project. v . I also thank the Director and the faculty of my institute for giving me an opportunity to do the thesis. Foremost among them is Mr. They too have contributed in no mean amount towards the success of my endeavors.ACKNOWLEDGEMENTS I would like to extend my heartfelt gratitude to all those who have contributed towards the successful completion of my thesis. I do owe a deep sense of gratitude to all the members of Pantaloons Retail India and all those who stood with me and for their continuous support and co-operation during the thesis.

1 Big Bazaar Revenue Mix 9. Characteristics of Select Retail Formats 6.2 International retailers 1. Key risks 13.1GINI & JONY FREE WORLD 8.2006 9.1 Some Key Facts 1. Indian Retail Industry 1.2 Pantaloon Revenue Mix 9.4 Fashion Station 8.3 Selling of Merchandise 11.3 Retail Omnibus 2. Bottlenecks and Challenges with Indian Retailers 11.4 Challenges 3. Data Analysis 9.1 Major Milestones 2. The power of private labels by Pantaloons 1 2 2 3 5 6 10 10 10 12 15 16 19 23 23 24 26 27 28 29 29 30 30 30 31 31 32 32 33 33 34 36 36 36 36 36 37 39 vi . Company background 2.2 Management of the Company 2.1 Pantaloons 7. Business Analysis of Pantaloon Model 7. Major verticals 7.8 Pillars Going Forward For 2010 10.7 Performance of various formats on 31.3 Expansion Plans 2.2 BLUE SKY 9.12.6 Retail Space Mix 9.3 Food Bazaar 7. Performance of Pantaloon Retail 11.3 Value Revenue Mix 9.4 Higher Inventory turns 12.4 Lifestyle Revenue Mix 9. Abstract Synopsis Acknowledgements 1. Pantaloon strategy 5. Pantaloon Competitive Strengths 4.2 Sourcing of merchandise 11.1 Point of sale 11.2 Big Bazaar 7.Table of Contents Page No.5 Revenue Mix 9. Brand factory 8.

2 15.3 16.14.1 15. TABLES 15.3Table No.1Choice of retail store for grocery shopping 17. Appendice 19. Detailed Financials 14.1Questionnaire 41 41 42 44 44 46 46 48 48 50 50 50 51 52 52 vii .1 Table No. List of references 19. Empirical Studies on Food Bazar 16.2 Expenditure on various food items 18.2 Table No.1 Income Statement 14.2 Balance Sheet 15. Analysis 17.1 Research methodology 17.

government policies are becoming more favorable and emerging technologies are facilitating operations. Trends and Opportunities 2007 Retail is India’s largest industry. It has emerged as one of the most dynamic and fast paced industries with several players entering the market. along with increasing workingwomen population and emerging opportunities in the services sector are going to be the key growth drivers of the organized retail sector in India. break even is difficult to achieve and many of these players have not tasted success so far. But because of the heavy initial investments required. The Indian retailing sector is at an inflexion point where the growth of organized retailing and growth in the consumption by the Indian population is going to take a higher growth trajectory. nuclear families in urban areas. accounting for over 10 per cent of the country’s GDP and around eight per cent of the employment. Modern retail has entered India as seen in sprawling shopping centers. The whole concept of shopping has altered in terms of format and consumer buying behavior. multi-storeyed malls and huge complexes offer shopping. the future is promising. A large young working population with median age of 24 years. Retail industry in India is at the crossroads. Retailing in India is gradually inching its way toward becoming the next boom industry. Indian Retail Industry: Strategies. the market is growing.1 SUCCESS OF PANTALOONS RETAIL INDIA LIMITED – INDIAN WAL-MART – 1. ushering in a revolution in shopping in India. The Indian population is witnessing a significant change in its demographics. entertainment and food all under one roof. However. .

US based Tommy Hilfiger has tied up with Creative Portico.1 Some Key Facts Retail is India’s largest industry. The market size of Indian retail industry is about US $312 billion Organized retailing comprises only 4. to sell its home textiles and furnishings in India.7 billion The organized retail sector is expected to grow to US $ 70 billion by 2010 1. has tied up with Brand house Retail Ltd. The world’s largest furniture retailer. a UK-based luxury men’s brand. will enter the Indian market through a strategic alliance with Patel Retail. accounting for over 10 per cent of the country’s GDP and around eight per cent of the employment. a Mumbai based home textiles company. Alfred Dunhill.5 per cent of the total retailing market and is estimated at around US$ 8.2 International retailers India's vast middle class with its expanding purchasing power and its almost untapped retail industry are key attractions for global retail giants wanting to enter newer markets. • • • . for its India venture and will be opening four stores in the country. • The Australian government's National Food Industry Strategy and Astride initiated a test marketing food retail in India wherein 12 major Australian food producers have tied up with India-based distributor AB Mauri to sell their products directly at retail outlets. Specialized Transportation Inc. a subsidiary of Patel Integrated Logistics. Ikea. • • Wal-Mart has announced its plans for India in partnership with Bharti. has established an office in Gurgaon for market research and is holding talks with domestic companies to open stores in India. • US-based home delivery and logistics company.2 1. US coffee chain Starbucks’ is well on its way to set up its first store in India this year.

1. 1. Organized Retail market is zooming ahead with an annual growth rate of 30%. which not only brings so much joy to the inveterate shoppers in terms of retail therapy. Benetton. The Retail sector is vibrant with growth happening in all related areas – be they malls. and have even percolated to the Tier II and Tier III cities. Swarovski.64%. India is being touted as the next big retail destination with an average three year compounded annual growth rate of 46. Sony.ft. Kodak. The Indian Retail Market is a Rs. India’s GDP growth rate is a healthy 9% for 2005-06 – and this has had its ripple effect on all industries – more so the Retail sector. hypermarkets or single brand luxury stores. Lee. Pizza Hut. Malls are fast becoming sought-after entertainment hotspots.200. Nike.000 million market as per the Images India Retail Report 2007. but also employment and livelihood to tens of thousands of Indians. Dominos. The Indian economy is poised to take the third position in the world in terms of Purchasing Power Parity by the year 2010.3 Retail Omnibus: Four Reports on the Retail Scene in India The Omnibus edition of Pantaloon retail papers spans this very happening sector. Levis. TGIF. . in available mall space by the end of 2007. of which only 3% organized until now. Sharp.3 Some of the international players that have already entered India include McDonald's. the country will have over 300 malls translating to over 100 million sq. From a situation where there were no malls about a decade ago. and Medicine Shoppe among others. • • • • • The Indian retail industry accounts for 10% of GDP and 8% of employment. Adidas. they have dotted the commercial landscape of the metros.

from Apparel and Footwear. Watches. The Retail Sector is definitely witnessing a growth phase and everyone wants to make their presence felt in order to take their share of this huge pie. the sweep is indeed broad. The Retail boom has also led to the opening of a large number of single brand outlets across the country. Books and Stationary to Jewelry and Consumer Durables. Types of Retail verticals operating in India • • • • • • Food and Beverage Health and Beauty Clothing and Footwear Home Furniture and Household Goods Consumer Durable Goods Leisure and Personal Goods . as almost 99% of it is unorganized. With big brands and bigger outlets across all segments. A number of big players are entering the field of organized food retail like Reliance. Take a gourmet trip – dig in to sample the depth and breadth of this amazing sector. Aditya Birla Group and the Bharti Group. All these major players are expected to show an annual growth rate of 25 – 30%. which has tied up with the world’s largest retailer – Wal-Mart.4 Food and Grocery retail holds the most potential.

Hyderabad. Pantaloon stores.000 square feet and are located in 17 states across India. Pantaloon. and Gurgaon (Delhi). respectively. Food Bazaar outlets and Gold Bazaar Stores with over 6. The company operates under multiple formats – hypermarket. etc.1. Bangalore. 2006. Central Malls.3. ft. Kanpur. retail space across Kolkata. In the Value segment. Kishore Biyani. Group/Company cater to the masses through Pantaloon Big Bazaar. Company Background – Pantaloon Retail India Founded in 1987. It has 4 kinds of stores. It is the flagship company of the future group.20 million and Rs.43 millions for fiscal 2006. Collection. As a result. as opposed to a turnover of Rs. Food Bazaar.12 million for fiscal 2005 and Rs. E Zone. During the same period Pantaloon profit after tax was Rs.30. Nagpur.com. Rs. futurebazaar. . of area under business.2.5 lakh sq. ALL Stores. apparel stores. As of November 15. Pantaloon Retail is one of the leading retail houses in India. Pantaloon Retail (India) Limited is today recognized as one of the pioneers in the business of organized retailing in the country with a turnover of over Rs.881.5 2. Thane. Group/Company operated 46 retail stores.44%. specialty stores under various brands including Big Bazaar.113. These 46 stores are spread over about 1.82 million.94% and Pantaloon profit after tax increased between fiscal 2004 and fiscal 2006 at a CAGR of 471. The company is headquartered in Mumbai with zonal offices at Kolkata.884. Pune. Chennai and Gurgaon (Delhi).463.75 million. The company also operates an online portal. Group/Company has set up seven regional distribution centers and an apparel manufacturing plant. ft. Bangalore. Pantaloon Retail in India’s leading Retail Company. Fashion Stations and Mela Store. Ahmedabad.04 million for fiscal 2004. including three stores which are operated by Pantaloon franchises. Mumbai. it currently has over 4 mm sq. Starting its 1st outlet in 1997. In efforts to strengthen Pantaloon supply chain. by Mr. Pantaloons in Kolkata.124. Pantaloon sales increased between fiscal 2004 and fiscal 2006 at a CAGR of 80.

sports items. toys. 1995: John Miller – Formal shirt brand launched.India’s first hypermarket chain launched. 2002: Food Bazaar. 1994: The Pantaloon Shoppe – exclusive menswear store in franchisee format launched across the nation. Currently. 1991: Launch of BARE. the Indian jeans brand. grocery items. with evolution of retail industry in India and change in consumer aspirations. Group/Company endeavor to facilitate one-stop-shop convenience for Pantaloon customers and to cater to the needs of the entire family. ‘Is se sasta aur accha kahi nahin’ . . 2. In other words.1 Major Milestones 1987: Company incorporated as Manz Wear Private Limited. Group/Company diversified Pantaloon portfolio of offerings to include other retail goods. Group follows the concept of value retail in India. watches. it manufactures and sells ready-made garments through its own retail outlets and two discounting stores. Launch of Pantaloons trouser. 1997: Pantaloons – India’s family store launched in Kolkata. gift and novelties. It began its retailing operations in India way back in 1987. 1992: Initial public offer (IPO) was made in the month of May. 2001: Big Bazaar. the supermarket chain is launched.6 Subsequently. toiletries. Currently. The company starts the distribution of branded garments through multibrand retail outlets across the nation. Group/Company sell readymade apparels and a wide range of household merchandise and other consumer goods such as footwear. Pantaloon business approach is to sell quality goods at reasonable prices by either manufacturing ourselves or directly procuring from manufacturers (primarily from small and medium size vendors and manufacturer). India’s first formal trouser brand. Group/Company believes this concept as helped us grow to Pantaloon current size within a short time frame of four years. crockery.

Pantaloon has come up with an excellent revenue model. Pantaloon has the second largest selling space amongst the retailers. The company plans to double its retail space in the next couple of years.India’s first seamless mall is launched in Bangalore.7 2004: Central – ‘Shop. Pantaloon has already opened two discount stores at Hyderabad and Calcutta.the popular fashion chain is launched ALL – ‘a little larger’ . 2005: Fashion Station . Big . Since the company has got strong brands like John Miller and Pantaloon. the company’s financial arm launches real estate funds Kshitij and Horizon and private equity fund Indivision. which targets the large and growing upper-middle and middle class of Indian society. This segment is very price conscious and always looks out for value for money. It also plans to sell household items through its discount stores along with apparels. which is targeted at the growing middle class segment. coupling it with the discount store model would boost the sales to the larger population. The company plans to diversify into the business of discounting in a big way. Plans forays into insurance and consumer credit.exclusive stores for plus-size individuals is launched 2006: Future Capital Holdings. ft. which forms the large chunk of Indian population.300 sq. This is totally in contrast to the other organized retail players. Celebrate In The Heart Of Our City’ . focusing on ‘value for money’ segment. which focus on high net-worth of individuals. It has India’s second largest retail chain with 46 retail outlets and two discounting stores branded as Big Bazaars across the country at an estimated retail space of 4. Pantaloon successfully launched its discount store chain (branded as Big Bazaar).01. Pantaloon plans to target the upper middle and the middle class segment. Eat. In order to reduce costs and take advantage of economies of scale Company have embarked on backward integration of Pantaloon products.

a bakery. them to enlarge their basket of offerings. aLL. MeLa Value Retailing – Big Bazaar. Central. bicycles. The brands include Pantaloon. Big Bazaar has diversified from apparels to household items in its discount stores. a photography shop. Higher percentage of ‘own brand’ sales improves margins. automobile accessories. This is backed by complete automation of the retail outlets. and Bare. Food Bazaar. Fashion Station. John Miller. After completion of the central hub at Mumbai the company’s operations would be fully integrated which would give its operating efficiency a boost? Big Bazaar has strong own brand names in its portfolio across product categories. Pantaloon Retail is one of India’s major retailers with presence in following two segments: Lifestyle Retailing – Pantaloons.8 Bazaar offers products and services such as a chemist. This has enabled . financial products. and electrical hardware among other items – the range is vast and fulfils practically every need of the consumer under one roof. thus reducing the break-even level of sales.

Leisure and sports Pantaloons Central Fashion Station aLL MeLa Big Bazaar Food Bazaar .9 Pantaloon Retail operations can be summarized in this following diagram Pantaloon Retail (India) Ltd. Lifestyle Retailing Value Retailing Entertainment.

to fulfill its massive expansion and growth plans. Bangalore. Though. The next year it plans to open more stores in Mumbai and Delhi at critical locations. the company is not a one man show and has built a strong second and third line of management. Kishore Biyani is the face of Pantaloon. Though there have been concerns regarding lack of talent in the growing retail sector.000 sq. where the population is dense and consists of a high middle-class population. Pantaloon has already bagged substantial retail space in Hyderabad (60. Mulund and the western suburbs.000 sq.) and Bangalore (40.10 2. It has planned to open three Big Bazaars (discount stores) in ‘A-class cities’ like Bangalore. The company has recently allotted shares to promoters at SEBI formula price. 2. As a  .000 sq.). ft. Mr.000 sq. The company plans to expand rapidly. the concept of discount stores is graining a lot of acceptance. area at each of its locations at Lower Parel. Calcutta and Hyderabad.3 Expansion Plans The concept of discount store resembles the Wal-Mart strategy. Kolkata (35.).4 Challenges The key challenges facing the company are as follows: Fund raising – The Company acknowledges that expansion plans of the company cannot be met from internal resources. ft. the company has the best talent in place to drive each business category. It plans to borrow heavily to fund its expansion plans.2 Management of the Company Pantaloon Retail over a period of time has built a strong management team to drive the company for its high growth phase. This means that the company has to tap external sources to fund expansion. ft. In India and especially in metro cities like Mumbai. In Mumbai it acquired 50. ft. 2.

the net profit margins would remain flat. it is mostly international chains such as Wal-Mart and Carrefour that are the better known names as discount stores worldwide. the general retailers in Mumbai are not too pleased about the concept of discount stores. The company is facing limited competition from the organized retailers but strong competition exists from the downtown center’s unorganized. It must have a feasible revenue model to sustain the venture”. Competition – Although there are a few stores operating in this segment such as Giant in Hyderabad. “Group/Company can’t figure out from where such stores get their margins.  .11 consequence of increased interest payment and depreciation expense. Meanwhile.

merchandizing sourcing. Pantaloon Competitive Strengths It is believed that the following are Pantaloon principal competitive strengths which have contributed to Pantaloon current position in the retail sector in India: 1. production. design and development of apparels. FMCG products. Central to Pantaloon value retail strategy is to pass on the benefits of cot reduction measures to Pantaloon customers. food products and consumer durables with over 63. Strong understanding of the ‘value retail’ segment: Pantaloon business plan involves implementation of the concept of the ‘value retailing’. such as. 2. In particular. . Group/Company sells a vast range of merchandise across apparels and accessories. ‘pilferage’ control replacement and replenishment. Pantaloon supply chain management gains strength from Pantaloon ability to undertake in-house manufacture. Pantaloon supply chain management provides us flexibility to adapt to changing patterns in consumer behavior and Pantaloon ability to add value at various steps/levels. efficient logistics and distribution systems along with customized product mix at Pantaloon stores depending on the regional customer behavior and preferences. Strong and efficient supply chain management: Pantaloon supply chain management involves planning. in-house production of apparels.12 3. standardization. logistics. quality control. targeting the middle and lower middle income groups. Group/Company endeavor to continuously reduce Pantaloon costs through a variety of measures. Group/Company intends to provide quality products at competitive prices. vendor management. procurement of goods directly from the small and medium size vendors and manufacturers. Pantaloon emphasis has been to maximize the value that the customers derive in spending on goods bought in Pantaloon stores. which constitute majority of the population in India.000 SKUs.

identify potential markets and efficiently establish new stores in different locations. Group/Company have an exclusive site identification and assessment team. which undertakes systematic analysis of the business . Group/Company are able to benefit from optimum utilization of the space allocated for display in Pantaloon stores. Group/Company believe. Group/Company possess the ability to identify new locations to promote Pantaloon business plans: Group/Company believe that Group/Company possess the ability to identify locations with potential for growth. Group/Company believe that Pantaloon distribution and logistics set up is well networked and allows us to fulfill the store requisition within short time period of generation and receipt of order. enables us to capture market share in locations where a majority of Pantaloon target customers are located. This has not only enabled us to build Pantaloon brand value but also facilitated us to explore cost-effective sourcing from different locations. which helps us to transport and deliver Pantaloon products in a cost and time efficient manner. 5. Strong and efficient logistics and distribution network: Pantaloon distribution and logistics network comprises seven distribution centers. 4. This provides us assistance in maintaining a low working capital requirement and less carrying cost. Besides. which is an industry practice. and instead undertake periodical replenishment of depleted stock. Group/Company have Pantaloon own fleet of 31 trucks. An aggregate of 40 of 46 of Pantaloon existing stores are located in Tier II and Tier III cities.13 3. in particular in Tier II and Tier III cities. Group/Company is in a position to leverage Pantaloon geographical spread: Pantaloon stores and distribution centers are spread in various parts and regions of the country. which. Pantaloon strong distribution and logistics network has enabled us to dispense with the requirement of a dedicated storage space at every store. which has helped us to optimize in-store availability of merchandise and minimize transportation costs. Due to adoption of an efficient racking system.

In fiscal 2006. Group/Company effectively use information technology systems: Group/Company believe that efficient information technology systems. apparels manufactured by us) such as Zeppin. 8. Pantaloon income from Pantaloon private labels was Rs. income levels.14 prospects. Famenne. This has assisted us in effective management of Pantaloon stores.76% of Pantaloon total sales for fiscal 2006. 7. accessibility. Chlorine. taking into account factors such as population. All Pantaloon stores and distribution centers are connected through a company-wide virtual network connection which helps to efficiently manage Pantaloon network of outlets throughout the country.e. Group/Company believe Group/Company have created the right balance of performance bonuses and other incentives for Pantaloon employees.483.50 million. Kittaan Studio. nature of occupation. literacy levels. Fleurier Women and Roseau. Further Group/Company have a dedicated warehouse for the purposes of storing the materials essential for setting up of new stores. basic infrastructure and establishment and running costs. distribution centers management and store operations including inventory management and billing. Group/Company derive substantial revenues from Pantaloon private labels: Group/Company have a number of private labels for apparels (i. supply chain logistics. Group/Company have a highly experienced and competent management team: Group/Company have an experienced management team which is complemented by a committed workforce. Pantaloon office processes are computerized which support procurement. Paranoia. 6. Group/Company believe that Pantaloon focus on Pantaloon private labels and their recognition in Pantaloon customer segment enables us to differentiate ourselves from Pantaloon competitors. Pantaloon management team comprises of talented professionals who are highly experience in the retail sector. Group/Company is in the process of implementing SAP. which accounts for 16. . processes and business applications are essential to handle retail chain of Pantaloon magnitude.

15 4. Pantaloon growth strategy is based on: 1 2 3 4 5 6 7 Increasing Pantaloon penetration in the country by leveraging Pantaloon Emphasis on backward integration. Continue to upgrade information technology systems and processes. Procurement from low-cost production centers outside India. Pantaloon strategy: Group/Company intends to pursue the following strategies in order to consolidate Pantaloon position as one of the leading operators in the ‘value retail’ segment in India. Continue to train employees and seek entrepreneurship from employees. supply chain. . Expansion of FMCG. Increasing customer satisfaction and Pantaloon base of loyal customers. distribution and logistics network.

Vijay Sales (Mumbai) 7-Eleven. In & Out Examples . Globus.000+ 15. RUs. Characteristics of Select Retail Formats Format Description Size (Sq.000+ 500. accessories.16 5. Offers an assorted mix of products including milk. Nalli’s Kumaran (Chennai).1-000 Marks & Spencer. Pantaloons. Shopper’s Stop. Home Depot. The Loft (Mumbai.000 50. Convenience Usually located near residential areas & open long hours. Toykemp (Bangalore). Selfridges. with each operating as a department. like apparel. Harrods. ft. Speed mart. Merchandise may be sold at price lower than that. Department Store break and eggs. 75. Large store selling several product lines. Macy’s Bloomingdale’s.) (India) Category Specialist Killer Offer a narrow variety with a very deep assortment of the merchandise. Ebony 3.00-8.000+ Circuit City.000 500-1. Product mix is largely non-food.

DVD’s footwear.000 5. Levels of service are low. Giant.000-10.17 books. 49 to 999 80. etc. Wrangler Factory Outlet. . Large self service stores selling a mix of products.000 Wal-Mart.000 Levi’s Factory Outlet. CD’s. Big Bazaar. these are franchise outlets located away from the Hypermarket main markets. The low price for the products is a key attraction for Single Price Stores the customer. Dollar General. level of service is Factory Outlets very high.000 40. footwear etc.000-1. 9 to 9.000 500+ Family Dollar. Reebok Factory Outlet. these stores offer large depth in the product mix which includes Food non-food items like apparel.000-220. music.00075. typically.000-20. Offer an assorted mix of branded and unbranded 5. Stores which sell branded merchandise at discount. Sabka Bazaar 5.

000 2. Nilgiri’s. to appeal to the budget conscious Specialty Stores customer. Focus on brand or a particular category.000-20.000 Asada. level Supermarket of service is high. 5. Planet M.000 Walgreen’s. Foodworld. Rhythm House. Music world . Food land. low cost. Kroger. Food Bazaar. low margin and high volume operators. These stores offer food. They offer a narrow product line but good depth. 8.000 800-5. They are self service.18 merchandise.000-8. Tesco. Boots. laundry and household maintenance products.000-5. Crossword.

Hence it’s very important to understand the customer and its needs. Pantaloon has created a well niche brand for itself. .19 6. India is not an integrated homogenous market like other western markets – it’s a hierarchy of markets catering to people at many different income levels 7 tastes. It has been able to target 75% of the consumer wallet. Pantaloon has been able to crack this by offering all what the consumers want at different price points. Business Analysis of Pantaloon Model As Group know &. The company through constant roll out of different formats is trying to capture the maximum of consumer’s wallet. Business Strategy Targeting the market segment & the product Understanding the market requirements Arranging the sourcing and the logistics Final point of sale through different formats Strategy to touch all price points to diversify business & improve profitability.

Music & Gifts Entertainment All – Planet Retail Blue Sky Footwear Bazaar Health Village – Star and Sitara – Tulsi Turmeric Electronic Bazaar – E-zone M Bazaar – M port Collection I – Furniture Bazaar – Got it – Home Town Food Bazaar Brew Bar – Café Bollywood – Chamasa – Rain – Sports Bar.20 Categories / Formats Where the consumer spends Clothing. Big Bazaar – Central – Fashion Station – Gini and Jony – Pantaloon – Jewelry. Watches & Accessories Footwear Health & Beauty Care Services Health & Beauty Care Products Consumer Durables Mobile Handsets Furniture & Fixtures Food & Grocery Catering Service (F&B) Books. Tables & Fashion Retail formats where the consumer can spend. Depot Bowling Co-FIZ3 .

99 1. of Stores . in mn 4 3 2 1 0 0.77 3.58 0.32 2002 0. of Stores 200 150 100 50 0 2002 2003 2004 2005 2006 2007 Targeting higher consumer wallet share No. ft. ft. of retail space by 2011 No.21 PANTALOON RETAIL – No of Stores & Retail Space Retail Space Retail Space sq.95 2.8 2003 2004 2005 2006 2007 To add 27mn sq.

& Appliances Food. Beverages & General Merchandise Clothing & Footw ear .00% 30.00% 50.00% 0. Furnishing.22 Recreation & Entertainm ent 80.00% 20.00% 2002 2004 2007 Com m unications Modical & Health Care Services Furniture.00% 40.00% 60.00% 10.00% 70.

ft. MAJOR VERTICALS 7.500 crore by 2010 Expected Gross margin – 45% Expected EBIDTA – 14-16% Competition in this format is expected to be limited because of the brand image that Pantaloon has created in the minds of the consumer. It’s been a high margin business. The format is rapidly expanding which itself would create entry barriers for competition.500 can generate sales of Rs 1. ft. 42 stores by 2007 end & 80 by 2010 1. ft by 2010 Average Sales per sq. The company has roped in Bollywood stars to promote its apparel offerings. . by 2007 end & 2.23 7.0mn sq. which allows it to differentiate in products & generate higher margins. Pantaloon currently is the largest apparel retailer in India.1mn sq.1 Pantaloons Pantaloons lifestyle format of retailing is the apparel store of the company catering to the ever-changing fashion needs of the customers. Private labels constitute 75% of the apparel sales. of Rs 7. Pantaloons cater to the Middle Income & Upper Middle Income consumers. Pantaloon has been the pioneer & only apparel retailer to offer several (7) fashion seasons of new & contemporary fashion. Pantaloon has also adopted a private label strategy.

large. stationery & music are being added to Big Bazaar.2 Big Bazaar Shop till you drop! Big Bazaar has democratized shopping in India & is so much more than a hypermarket. furniture. making Big Bazaar India’s favorite shopping destination. Big Bazaar Getting Bigger New categories like consumer electronics. with fashion comprising about 40% of its revenues. books. There are over 170. beauty retail. At Images Retail Awards it was adjudges the Best Value Retail Store & Best Retail Destination of year 2006 In Reader’s Digest Consumer Survey 2006. communication. Bazaar won the prestigious Platinum Trusted Brand Award in the Indian services category Fashion Focus Big Bazaar continues to be a fashion – led delivery format. Awards & Recognition In the month of July 2006 – Big Bazaar won the prestigious ‘CNBC TV18 Awaaz Consumers Award 2006’ in the retail category. as the most preferred. food & grocery store. food & beverages. pharmacies. saloons. .24 7.000 products under 1 roof that caters to every need of a family.

ft.7650 cr. This format would face maximum competition going forward as all the major new entrants have plans to enter into the hypermarket segment. 60% being general merchandise. by 2010. ft.8500 can generate a sales of Rs. Average sales per sq. by 2010. Product offerings are mainly general merchandise and apparels. The company’s aggressive roll out plan for this format is to be able to achieve economies of scale in souring of products and protect the overall margins.25 Pioneering the Hypermarket Format It’s the hypermarket format in the value retail segment of the company. Apparels form 40% of the total revenue. Currently its about 70 outlets. . ft. It is the fastest growing format in the organized retail space. Big Bazaar covers 3-25 mn sq. Pantaloon has aggressive plans for this format of taking to total number of outlets to 225 by 2010. Expected Gross Margin -24%. to increase to 9 mn sq. currently. its aim is to capture the middle income value focused customer. Expected EBIDTA – 7-9%. at Rs. The company has maintained 50% of apparel sales from private labels.

In the Central Model the company sub leases its spaces to concessionaries. . Central model is highly scalable and would be successful in other cities where the company plans to open.000. In order to maintain its competitive advantage in this format. 110 stores by 2007 end.50 mn sq. The format has been will accepted by the Indian women as it has been able to offer scheme and discounts on various products because of its economies of scale in operations. the company needs to invest to improve the back end. Pantaloon retail plans to expand this format (to smaller towns and cities) more rapidly going forward to achieve further economies of scale.3250 cr. restaurant and food court managers which assure a fixed rental and a certain percentage of sales.26 7.3 Food Bazaar The food and grocery retail format of the company is capturing the middle – income value focused customer. The company has been able to offer all the daily needs related to the food and grocery under one roof. By 2010. with no inventory carrying on its books. Average sales per sq. Expected gross margin – 15%. and 250 by 2010 1. and 2. It’s been positioned as one stop destination for shopping and entertainment. by 2010. aims to cater the upper middle income consumers. ft. ft.2 mn sq. Central has the same growth rate of 40%. The success of this format has prompted the company to take this format to smaller towns and cities. at Rs. Central The departmental format of the company. by 2007 end. Can generate a sales of Rs.14. this constitutes 70% of central sales.ft. Though being a low margins business but higher turnover nature makes it a profitable proposition for Pantaloon. FMCG along with dry and wet staples from the main product categories of this format. Currently the company has 3 Central Stores (2006 end).

by 2010 Average sales per sq. ft.2300 cr.7500 Can generate a sales of Rs.15 mm sq. By 2010 Expected gross margin – 41% Expected EBIDTA – 12% . Expected EBIDTA – 12-15% FASHION STATION 15 stores by 2007 end & 80 by 2010 0. by 2007 end & 1 mn sq. at Rs.27 9 Stores by 2007 end and 22 by 2010.35 mn sq.ft. 1.5 mn sq. by 2010 Average sales per sq. by 2010 Expected Gross Margin – 28%. by 2007 end and 3. at Rs. 8000 Can generate a sales of Rs.ft.ft. 770 cr. ft. ft.

offered through Pantaloons (life style) & Big bazaar (value segment). ft. 13. BRAND FACTORY Pantaloon’s game plan with this new format is to raise the bar of customer expectations & experience when it comes to ‘Brand + Bargain shopping’. Pantaloon retail is trying to fill in one gap in the apparels. There is a huge market opportunity in this category where over 70% of the people shopping at Factory outlets are under the age group of 30 years who want fashion brands at reasonable price. Instead.25 mn sq.0 mn sq. By 2010 Expected cross margin – 28% Expected EBIDTA – 8% . The company plans to offer all the major national & international brands. 3 stores by 2007 & 20 by 2010 0. by 2007 & 1. ft. it’s all about an amazing experience of ‘Buying Smart’.28 8. Pantaloon retail is trying to change the perception of the consumers that factory outlet shopping is not about seconds’ experience & it is not about buying cheap.000 Can generate a sales of Rs. at Rs. by 2010 Average sales per sq. ft. 1300 cr.

By 2010 Expected gross margin – 53% Expected EBIDTA – 9% 8.000 Can generage a sales of Rs. 6. at Rs. By 2010 Expected gross margin – 32% Expected EBIDTA – 12% . at Rs.ft. As the urban child is getting more exposed to the western world through various media. & 125 by 2010 0. one of the leading kids apparel brand.2 BLUE SKY 50 Stores by 2007 end.ft.29 GINI & JONY FREE WORLD Today’s urban child is like a king in the family. as its importance is increasing & influencing in all the purchasing decisions of the family. 130 bn. The CAGR growth in the branded apparel segment has been about 46% for the past 3 years. by 2010 Average sales per sq. 100 cr. The size of the kids apparel market is estimated at Rs. currently & 0.ft.700 Can generate a sales of Rs. Pantaloon retail wants to capture the growing aspirations amongst kids. 10. 83 stores by 2007 end & 180 by 2010 Average sales per sq.04 mn sq. Pantaloon is tapping this mega opportunity by having a Joint venture with Gini & Jony.ft.10 mn sq. 120 cr. the child today is becoming smarter & also has started having aspirations.

DATA ANALYSIS 9.2 Pantaloon Revenue Mix 18% 1% 39% 25% 17% Big Bazaar Pantaloons Food Bazaar Central Fashion Station .1 Big Bazaar Revenue Mix 40% General Merchandise Apparels 60% 9.30 9.

4 Lifestyle Revenue Mix 48% 52% Pantaloons Central .31 9.3 Value Revenue Mix 1% 37% 62% Big Bazaar Food Bazaar Fashion Station 9.

32 9.6 Retail Space Mix 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 58% 61% 64% 42% 39% 36% 2004 2005 2006 Value Life style .5 Revenue Mix 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 52% 43% 31% 48% 57% 69% 2004 2005 2006 Value Life style 9.

8 Pillars Going Forward For 2010 Formats Value Big Bazaar Food Bazaar Fashion Station Brand Factory Total Lifestyle Pantaloons Central Home Town E-Zone Total 42 9 5 20 76 80 22 35 86 223 1. ft) 2007 2010 10.12.5 No.7 Performance of various formats on 31.06 75 110 15 3 203 225 250 80 20 575 3.5 2.86 9.43 0.47 0.95 10 15 0 25 19 30 1 50 29 45 5 79 0.9 9 2.29 0.2 0.03 1.148 1.29 0.35 0. of Outlets 2007 2010 Space (mn sq.25 2 3.76 0.2006 Formats Value Retailing Big Bazaar Food Bazaar Fashion Station Total Lifestyle Pantaloons Central Total 12 1 13 12 3 15 21 3 24 0. Bottlenecks and Challenges with Indian Retailers .09 1.52 0.67 No.29 0.42 0.7 0.6 0.47 0.15 0.41 0.48 0.15 0. of Outlets 2004 2005 2006 Space (mn sq.33 9.3 1.5 1 1 13.83 0.11 0 0.1 1. ft) 2004 2005 2006 9.13 0.25 4.2 3.

high stamp duty Supply Chain Bottlenecks • • • Several segments like food & apparel reserved for SSIs Distribution. logistics constraints Long intermediation chain • • • • • • • structure Difficult to find good real estate in terms of location & size High land cost owing to constrained supply Disorganized nature of transactions. onestore formats with unmatchable cost High Cost of Real Estate • • Pro tenant rent laws Non-availability of government lands.34 Factors Structural Impediments Description Lack of urbanization Poor transportation infrastructure • • Implications Lack of awareness of Indian consumers Restricted retail growth Growth of small. Limited product range Makes scaling up difficult High cost & complexity of sourcing & planning Lack of value addition & increase in costs by Customer Preferences • • • Local consumption habits Need for variety Cultural issues • • Availability of talent • • Lack of proper training Highly educated class does not consider retailing a • • almost 15% Leads to product proliferation Increased complexity in sourcing & planning Increase the cost of store management Higher trail & error in managing retail operations • • • . zoning restrictions • Lack of clear ownership titles.

35 profession of choice Barriers to FDI • • FDI not permitted in pure retailing Franchisee arrangement allowed • • Increase in personnel cost. Limited exposure to best practices .

Real estate is the raw material of a successful retailing business.1 Point of sale . it would be difficult to improve gross margins.36 11. Pantaloon has created a bond with the Indian customer & clearly understand its needs & wants. The company is expected 30 million sq. because efficiency in buying would ultimately increase te gross margins. 11.3 Selling of Merchandise – Selling the right products to the right consumer is an important parameter of a retail chain. feet of prime locations in all the major cities of India. Performance of Pantaloon Retail (India – A Brief note :) 11. Any retailer with significant size will be able to improve its sourcing. The company is expected 30 million sq. feet of real space by 2011 covering 80 cities of India. Going with competition in major formats. Pantaloon has been very successful in this parameter by building different formats catering to different customer needs. Having the right real estate in prime locations is the key for a retail chain. 11. 11. Pantaloon in this regard is a way ahead because it has locked into real estate at prime locations in all the major cities of India. availability of right real estate would drive the sales.2 Sourcing of merchandise – Sourcing of merchandise from the right vendor at the right price is an important factor. Pantaloon with its projected scale is able to source its merchandise from its vendor at reasonable rates. This could only be achieved by having lower inventory levels & higher assets turns. Pantaloons inventory has been on a rise mainly because of the store expansion & fashion constituting 40% of the total sales. . But competition would not be amongst retailers alone but also amongst vendors to supply at the most competitive price. a proper catchments analysis of locations of outlets is needed to increase the footballs & conversions.4 Higher Inventory turns – In any retail chain selling merchandise should move quickly from the shelves. Pantaloon assets turns are not so impressive but going forward it would improve.

Likely equity dilution to finance growth The company would need capital in the region of USD 600 mn. KEY RISKS Execution of plans is the biggest risk The company plans to become 10x its current size in terms of floor area by 2010. The market for home improvement & furnishing is getting bigger due to the increasing number of However.37 12. 9% dilution has already happened Y TID FYO7E. Traditional human resource management methods have been unable to reduce employee turnover. There could be further delay in store delivery. Besides. Decision making is quite decentralized with powers devolved to line managers. Strain on management bandwidth PRIL is expanding into multiple formats & multiple geographics over the next few years. For its growth plan until FYO9E. which can prove to be bottleneck. Untested formats like Home solutions & new non-retailing business. There are a lot of exogenous factors that could impact the company’s plans. & risk management . as the company multiplies. Besides. there are multiple clearances to be taken by local & other authorities. they would need stranger MIS. PRIL plans to grow in the home solutions business over the next few years. internal auditing systems. The company could face management bandwidth shortage in a few years from now. The company would need external funds for its growth. to ensure good management of such large entity. it is investing in various non-retailing businesses. Rising resource cost to put margin pressure The employee cost & property costs will be 2 key pressure points for all retailers. Delivery of stores are behind schedule by an average of 2 quarters for most companies. As these store deliveries get bunched up for most of the players towards 2009-2010.

38 residential as well as commercial buildings. . Significant amount of training & orientation would be required to convert the existing labour into professional skilled force. it will take a significant change in mindset to start buying from groceries store. & the organized market is almost non existent. non existence of contract based layout force & under investment. There are risks associated in entering into business like insurance because the way financial products & services are bought in India. The key reasons for the negligible presence of organized market are the lack of skilled professional service providers.

adds. “The purpose of Pantaloon private labels is to grow the category and fill the gaps between demand and supply. and therefore. it has promptly approached local manufacturers such as Prakash Snacks in Indore and Pogo Chips in Kolkata to manufacture its snacks brands. Observes K. Today Pantaloon Retail has 80 products comprising 350 SKUs with five private labels. the ready-to-eat private label of Food Bazaar. Since PepsiCo’s rejection. nearly 15 percent of Pantaloon hypermarket brands comprise private labels. However. At present. “While it’s Pantaloon strategic intent is to build private labels. it was the latter’s private label which got a boost in shares. easier for private label products to supplant supplier brand products . is leading with a 16 per cent share among the rest of the snack brands. CEO (Foods Business). At the same time they also realize that it’s not going to be easy as it takes time and money to build private labels. primarily. it is more difficult and takes longer to build these brands. relative to branded alternatives How strong supplier brands are in the minds of Indian Consumers: Many supplier brands are relatively new in India. in categories such as commodities. The power of private labels by Pantaloons When PepsiCo’s Frito-Lay decided of boycott Pantaloon’s Food Bazaar due to differences in terms of trade. so potentially have less awareness. Today Group/Company have upgraded Pantaloon suppliers with better quality systems and processes for the snacks category. where there was a gap.” The private label product proposition: Quality and price. it is easier to build private labels. as they do not want to be at the mercy of the big manufacturers.39 13. Reliance Industries. Pantaloon Retail. Today Tasty Treat.” The power of private labels is being explored by most retailers today. Hypermarkets. Arvind Chaudhary. Chief Executive. Radhakrishnan.

Innovative suppliers can come out with new products that retailers haven’t necessarily thought of. as KSA’s Maroo observes.40 How effectively suppliers innovate: Supplier innovation if often what allows them to stay ahead of retailer private label. Right now. the greater the opportunity to create the leverage a retailer can put on a supplier. This may be one reason why the UK has greater PL penetration than the US – UK retail is more consolidated than US retail. . so there’s a long way to go. How consolidated Indian retail eventually becomes: The more market share a retailer has. India retail is highly fragmented.

373) (42. Detailed Financials 14.988) (251) (220) (659) (499) (217) (1) (1) (1.580) (1) 0 (4.689) 2.264) (4.678 (17.033 (32.368) (116) (121) (345) (322) (129) (1) 0 (620) 562 FY05 10.155) 849 FY06 18.840 (9.420) (1.021) (4.827 .420 FY07 35.806) 4.079) (2.667) 1.971) (1.41 14.091) (1.297) (23.612) (666) (1) 0 (2.585 (6.1 Income Statement Particulars Net sales Operating expenses Raw material consumed Freight Power & fuel Employee expenses Selling & Distribution expenses Administrative expenses Bad debt provision / w-offs Royalty Other operating expenses Operating profit FY04 6.258) (12.991) (6.327) (697) (375) 0 0 (1.736 FY08E 63.200 (58.455) (383) (374) (1.367) (841) (701) (2.580) (1.

801 33 1.530 245 196 9.963 0 9.360 1.847 (243) 144 FY05 4.658 4.293) 0 .736 (327) 0 2.039 215 123 2.406 6.827 (451) 0 4.658 3.070 3.576 410 0 1.511 (374) 158 FY06 8.420 (208) 43 1.516 6.238 181 346 16.955 14.759 937 5 2.368) 3.660 (567) 861 FY07E 16.422 1.823 217 170 5.910 (1.110 0 7.984 6.295 2.410 (894) 0 FY08E 26.748 8.612 7.053) (421) (632) 1.406 3.355 11 8.300 138 176 1.748 1.078 1.254 (335) 919 2.955 1.008 (46) (15) (31) 211 211 (145) (75) (70) 338 338 (277) (128) (149) 643 643 (580) (252) (348) 1.018 2.376 (1.078 (1.906 5.008 256 484 919 1.614 319 2.42 EBITDA Depreciation Other income EBIT Interest paid Pre-tax profit (before non-recurring items) Pre-tax profit (after non-recurring items) Tax (current + deferred) Tax provided Deferred tax Net profit Adjusted net profit 562 (88) 18 492 (236) 256 849 (133) 50 766 (282) 484 1.409 (751) 1.2 Balance Sheet Particulars Current assets Cash & bank Debtors Inventory Loans & advances Other current assets Non-current assets Investments Fixed assets (Net block) Gross block Less: Depreciation Add: Capital WIP FY04 2.954 3.

43 Total assets Current liabilities Creditors Tax payable Dividends payable Tax on dividend payable Other current liabilities Other provisions Non-current liabilities Total debt Deferred tax liabilities Total liabilities Shareholders’ funds Paid up Capital Reserves and Surplus Share Premium Retained earnings Other reserves Less Misc expenditure Total equity & liabilities 4,101 729 546 27 29 4 113 10 2,427 2,366 60 3,156 945 191 758 366 381 10 (4) 4,101 6,653 1,455 895 96 35 8 375 25 2,988 2,857 130 4,436 2,212 220 1,995 1,251 665 79 (3) 6,653 14,183 2,622 1,844 198 67 9 454 51 6,292 6,013 279 8,914 5,269 269 5,000 3,721 1,166 113 0 14,183 23,953 3,900 2,671 199 70 10 950 0 11,771 11,144 627 15,671 8,282 281 8,001 5,691 2,197 113 0 23,653 35,256 6,126 4,460 361 70 10 1,225 0 18,913 17,634 1,259 25,038 10,217 281 9,936 5,691 4,132 113 0 35,256


15.1 Table No.1
Different Format at Pantaloon Retail India Product Category Food Concepts Brew Bar Café Bollywood Chomosa Food Bazaar Rain Sport Bar aLL Big Bazaar Blue Sky Central Fashion Station Gini & Jony Pantaloons Collection i Electronics Bazaar e-zone Furniture Bazaar Got it Home Town Gen M M Bazaar Status Operational Planned Operational Operational Operational Operational Operational Operational Operational Operational Operational Operational Operational Operational Operational Operational Operational Planned Planned Planned Planned Format/Offerings Beers, snacks and set meals Eateries Snack counter in high traffic area Supermarket Food and beverages Focused on sports lovers Fashion apparel for plus-size individual Hypermarket Fashion accessories Seamless malls Popular fashion Kids’ fashion Department store Home furnishings Present within Big Bazaar Consumer Electronics Home furniture One stop shop for home maintenance One stop Destination Hi-tech products Solutions for knowledge, entertainment and M Port General Merchandise Blue Sky Central Footwear Bazaar Operational Operational Planned Fashion Accessories Seamless malls Footwear and accessories Big Bazaar Planned Operational communication Standalone stores/Shop-inshop Hypermarket


Home & Electronics

Telecom & IT

45 Navarasa Pantaloons Shoe Factory Bowling Co. F 123 Wellness & Beauty Health Village Star Sitara Tulsi Turmeric Planned Operational Operational Operational Operational Planned Operational Operational Planned N.A. Department store Footwear and accessories Premium family entertainment center For leisure and entertainment N.A. Beauty salon for men and women Pharmacy ‘Cut-in’ format at Food

Leisure & Entertainment

Bazaar Books & Music Depot Operational Books and music e-tailing Online retailing Operational Futurebazaar.com Source: Complied by the author from the company website

46 15.Shoe shop Currently 9 Additions 4 Till Dec’ 2006 Total till 13 13 13 14 13 11 18 2 97 mart 9 4 Splash Home 9 4 Lifestyle Max Fashion Funcity Total 2 9 Brands 7 11 52 42 Center 10 9 4 4 2 Dec’ 06 Source : Company Website 15.2 Landmark Group’s Presence Across Different Formats of Retail in India Baby.2 Table No.3 Table No.3 Presence of Departmental Stores in various cities in India Location Ahmedabad Amritsar Bangalore Baroda Chandigarh Chennai Delhi Faridabad Ghaziabad Gurgaon Hyderabad Indore Jaipur Jalandar Kanpur Kolkata Lucknow Ludhiana Mangalore Mumbai Nagpur Noida Westside Pantaloon Lifestyle Ebony Shopper’s Globus Pyramid Total Stop 1 3 1 1 3 1 1 1 1 1 2 2 1 1 1 1 3 1 1 1 1 2 1 1 4 1 1 1 4 3 1 7 2 1 1 1 1 2 1 1 1 1 1 2 1 1 1 1 1 1 1 1 2 1 2 1 2 2 1 1 5 1 9 2 1 7 10 1 4 4 4 3 2 1 2 6 1 1 1 21 2 2 .

47 Rajkot Pune Thane Secunderaba d Total 1 1 1 5 1 1 98 1 2 1 1 23 22 9 7 19 13 4 .

• Sample size – 300 customers • Contact Method – Personal • Mode of Collecting Data – The respondents were chosen randomly and requested to grant interviews.1 Research Methodology • Research – Descriptive • Data source – Primary Data • Research Approach – Survey Method • Research Instrument – Questionnaire • Questionnaire type – Structured non-disguised • Type of questions – Both Close-ended & Open-ended • Sampling Unit – Individual • Sampling Frame – NCR • Sampling Procedure – Simple Random sampling to select 5 stores and convenience for select customer/shoppers. Empirical studies on Food Bazaar by Pantaloon Retail India Limited on Consumer Perception 16. The questions were then asked in predetermined sequence.48 16. .

.49 • Data Processing – (i) A number of tables was prepared to bring out the main characteristics of the collected data. (i) Inferences were drawn from the collected data.

50 17.1Choice of retail store for grocery shopping 95 90 85 80 75 70 N e ig h b o r h oo d K ir a na S up e r B a zaa r D a ily M o n th ly S u p p lie s R a tio n . Analysis 17.

“Food Focus Grows Format Exponentially www.com Chain Store Age. 3. 2. an ORG-MARG publication. LIST OF REFRENCES 1.retailyatra. Philip Kotler. Fruits & Fresh Juices Edible oils. Milestones.2 Expenditure on various food items 9% Staples 10% 29% Vegetables.com www. 5.51 ANALYSIS 17.pantaloon.com . 6. 4. spices & pickles 8% Bread related & biscuits Snacks 8% 8% 10% 18% Beverages Meat & eggs Dairy Products 18.economictimes.indiatimes. ‘An Outlook for Retailing in India’ www.

APPENDICIES 19. Loose milk (delivered at home) Packaged milk From dairy (freshly milked) Daily purchase (quantity) 4. Please tick the relevant option regarding milk purchase.52 19. 1-bing most important and 6-least important) Parameter Personal Attention Facility of home delivery Facility of credit purchase Ambience / Touch and feel Long term discount/ free gift Parking facility 2. Please tick the appropriate option (choose only one option for place of purchase) Place of purchase Kirana Frequency of Purchase Daily Twice Once Once Once Super Rupees .1 Questionnaire 1. Ranking (1-6) Please tick the appropriate option based on your choice of retail store you buy your groceries from…? Neighborhood Kirana/General Store a) Daily Supplies b) Monthly Ration Big Bazaar Other Store/super bazaar retail Purchase amount (monthly) 3. Please rank the following parameters in the order of their importance (on a scale of 1-6.

53 Store/sabzi Market/Big Mandi Bazaar a week a in 2 a or more Food Items a) StapleRice. chocolates Personal Care a) Cosmetics. Spices & Pickles d) Bread related & biscuits e) Snackscornflakes Chips Maggie Kurkure etc f) Beveragespacked juices & soft drinks g) Meat & eggs h) Dairy productsbutter. Sugar b) Vegetable. spend month week week month per . deodorant. & Fresh juices c) Edibles oils. Fruit. Pulses. ghee. beauty soaps.

In the previous question. sugar b) Vegetables. Tomato. the categories for which you have selected daily. multiple options allowed) a) Staples-Rice pulses. pickles d) Bread related & biscuits e) Snackscornflakes. Fruits c) Edibles oils.54 face wash. pizza base) Packed Snacks (chips. select the specific item (tick the option. broom. twice a week or once a week. toilet cleaner 5. Maggie Rice Potato. shampoo & oil b) Toiletriestooth paste & brush shaving products c) Sanitary napkin. onion Spices Bread Sugar Seasonal vegetables Mustard oil Bakery product (bun. kurkure) Breakfast items Wheat/flour Fresh juice Sunflower oil Branded biscuits Unbranded biscuits Pulses Fruits . spices. baby product HOME ESSENTIALS a) Washing Soap & detergent b) Mosquito repellent.

have better quality than the unbranded product available at local kirana store d) Vegetables. Beveragespacked juices & soft drinks Meat & eggs Dairy Productsbutter. Fruits would be cheaper in sabzi market as compared to an air conditioned shop e) Vegetables. How satisfied are you with your preferred store on the following parameters (please tick the appropriate option) Factors a) Packed Milk is of better quality than loose milk b) Store of some big company is expensive c) Packed flour.55 chips. chocolates Eggs Butter Chicken Ghee Mutton Chocolates Fish Packed juice Soft drinks Mineral water 6. etc. pulses. ghee. Fruits are fresher in sabzi market as compared to an air conditioned shop f) Will not purchase from Strongly disagree Disagree Neutral Agree Strongly agree . Maggie Kurkure etc.

g) I will prefer to purchase vegetables from an aircondition shop as compare to sabzi market h) I will purchase from a new store which provides cheaper goods even if I don’t know the store owner personally. Working Professional Self-employed Housewife Student Senior Citizen Monthly Expenditure: i. v.000 15. iv.000 and above .000-20. v.000 20.000-15. iv. ii.000 10. ii. iii. iii. Personal Details: Family size: 1 2 3 4 5 6 & above Occupation (earning member) i.56 a store. which sells fresh meat. Less than 5000 5000-10.

with STD code: ……………………………………………………………………………………….. Address: a) House no……………………………………………………………………. d) City………………………………………………………………………….. b) Sector / sub area / Locality…………………………………………………. c) Colony / Mohalla……………………………………………………………... Optional: Name member of family Date of birth Marriage anniversary Thank You To be filled by the interviewer Remarks: .57 Name: ……………………………………………………………………………………….. Contact no.

58 …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… ……… Name of the interviewer ……………………………………………. .Signature.

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