Business Plan

´Fun @ coffeeµ
Submitted to: Prof. R. Ravichandran
Submitted by: Group 6 Anshumali Anupriya Verma Vinay Rao Prashant. K Girish. P

1

retail real estate development. 2 . Future Group led by its founder and Group CEO. Retailing includes retail formats like Pantaloons. The company also operates on online future bazzar. a business group catering to the entire Indian consumption space. Star & sitar and e zone. The company is in aspect of giving retailing a modern look with reachable for middle and middle lower class people.PANTALOON-BUSINESS STRATEGY INTRODUCTION _ Pantaloon Retail (India) Limited is India¶s largest leading retailers. While retail forms the core business activity of Future Group. leisure and entertainment. Blue sky. Big bazaar. is one of India¶s leading business houses with multiple businesses spanning across the consumption space. and Top 10. capital. brand factory. Company head quarters located in Mumbai. It operates on multiple platforms like Value and life style segment in the Indian consumers market. retail media and logistics. group subsidiaries are present in consumer finance. LEADERSHIP AND HOLDING COMPANY BACKGROUND Pantaloon Retail is the flagship company of Future Group. insurance. Mr. 1000 stores in 71 cities with employee strength of 30. Food bazaar.000 people. Company operates over 12 million square feet of retail space. brand development.com for upper class that can get internet connectivity. Kishore Biyani.

BUSINESS STRATEGY Diversification strategy The company started its business as textile manufactures but growth in modern organized retailing attracted the company to switch diversify to the next consumption pattern. Bare. Bare Denim. Chalk. 3 . But company did not forget ripe its strategy and values in the diversified company. Thus the store focuses on providing value for money proposition as it provides quality products at affordable prices. They are targeting youth and even women. Honey etc. national and regional brands as well as private labels. women wear and kids wear. Pantaloons have the best known national. since they are the ones defining most purchasing decisions. Initially positioned as a family store. PRODUCTS AND OFFERINGS Pantaloons have a wide range of brands in menswear. Pantaloons believe that they will be drivers of fashion. Bare Leisure. The company diversified and acquired a large business in organic and inorganic way. Its core offering is branded merchandise. retailing international. international and regional brands apart from stocking its own private label.POSITIONING OF PANTALOONS Pantaloons are positioned as a departmental store catering to the middle and upper middle class sections of the society. it finally veered towards becoming a fashion store with and emphasis on youths and clear focus on µFRESH FASHION¶. Some of the brands they stock include Ajile. Akkriti.

Company has divided Indian customers in three different groups. brand factory.Till recent times the modern retiling formats is offered for this class. INDIA ONE.In every new business company started to rewrite the rules by retaining values. According Maslow¶s theory of hierarchy the 14% people are in self actualization and Esteem needs in the pyramid. Each has different values. office peon etc. Each business is set to operate on defined strata. This is the people who make service INDIA ONE class. E zone. INDIA TWO or the serving class it includes people like house hold helpers. In the needs hierarchy they are located in for Social and security . Diversification is done in two main categories RETAIL FORMATS and SPECIALIZED BUSINESS.Earning capacity of 4 . The company in latter stage organized to support each other by physical material flow if required. For this class pantaloon patterned Future bazaar. Classes destination strategy Future group has diversified its business keeping the retiling as common goal. Home town and star Galaxy entertainment. INDIA TWO. INDIA ONE or consuming class .The population of this constitutes only 14%. Central. The population of this class is more than 30%. products and quality requirements. To set and concentrate on one stratum is main objective of this strategy. INDIA THREE.

INDIA TWO has not changed it conception level.INDIA ONE has changed from 25% to 35% normally the total profit in this segment will comparatively 20% more than they are sold in next segment. Figure 1 shows change in consumption patter by different class in 2001-02 and 2007-08.this class is 60% lesser than INDIA ONE. The class led life on hand to mouth existence. Maximum market shares strategy The retail chain by pantaloon in all business patterns tries to achieve maximum market share in all the products or service it provides . The business will sell at marginal profit some times to attract the new customer who will prove potential customers 5 . Food bazaar. As ambiance is factor and other pleasuring non value added services are necessary. Future money and other retail formats are presented.The Company does not bothers about short term profit or loss by a strategy. This segment doesn¶t contribute much in the contribution cycle. The need of the segment is local as they are finding it cheaper. The present business model is not addressing this class. This are considered as learning. INDIA THREE or struggling class. INDIA THREE has seen 10 % decline. They can¶t afford for beater living style. For this class as the big bazaar.

y Bundling Bundling is marketing tool sell two or more complementary product as a package with attractive price. Example: A Person needs one soap for a period of time 6 . The company¶s schemes are categorized in following groups y Value pricing This approach is used where external factors such as recession or increased competition force companies to provide 'value' products and services to retain sales.in future. The product value will be associated with external factors. The price is will lesser then individual selling price. y Promotional pricing Pricing to promote a product is a very common application. BTGO (Buy Two Get One Free) etc. The application of this done by BOGO (Buy one Get One). Pricing strategies Pricing is strategy used by Pantaloon retail chain to attain maximum market shares. The strategy achieved by focusing pricing factors in INDAI TWO and on service and quality in INDIA ONE. The company offers numerous schemes to attract the new customer as well as to retain the present customers.

Consumer looks at 3 digits to 2 digits rather than exact value. With such experience crowded management is essential so to divert potential customers ³Wednesday bazaar´ where it will offer less profit margin sales.When board shows price reduction from 100 to 99. When the turnover of the day reached 30 cores where average is 5 cores. Reduction of profit margin with lot of advertisement will invite new customers. Organization utilizes this approach when product has emotional value rather than rational value.But bundling with attractive price with more than 3 soaps can attract them. Example a product is priced for 99 instead of 100. With its first- 7 . The company has learnt it from strategy made on public holiday 26-Feb. y Low interest rate financing Future money helps in asset purchase at 0% interest. The Right Joint Ventures at the Right Time In accordance with its experimentation policy Pantaloon has formed key joint ventures with a number of popular names like Staples and Starbucks. y Physiological discounting In India this approach is called as Bata rating system. y Time pricing The innovative way of attract the customer is Timely pricing it is known that during holidays rate of customer is more.

But still the company has introduce modern retailing malls to the social class people of India it has fear of threat of business decline from the competitors like Reliance fresh. CONCLUSION Pantaloon retail India evolved its business strategy based on understudying customers. FUTURE OF PANTALOONS We believe that Pantaloons would continue to experiment.mover advantage. Private label is gaining popularity in India and Pantaloons with its superior brand image would reap rich dividends with its private label offering. The organization deploys the cultural and regional strategies to attract the customers. it actively shut doors for the competition by snapping up major brands before others could get to them. might push its private label hard. The changing emotions of customers are tracked and they are linked with the power of modern retailing environment. 8 .

The lifestyle retailing business division also caters to the mid-segment market through its brands John Players and Miss Players. WLS became the title partner of the premium fashion event ³India Fashion Week´. 9 . Later in 2006. 200 billion ready to wear apparel industry with the launch of its Wills Sport range of internationally-styled premium relaxed wear for men & women in the year 2000. The WLS chain of exclusive stores later expanded its range to include Wills Classic formal wear in 2002 and Wills Clublife evening wear in 2003. This association has helped the brand grow stronger and also make the product portfolio richer.ITC LIFESTYLE-ANALYSIS COMPANY PROFILE ITC Lifestyle Retailing Business Division made foray into the Rs. The company¶s first exclusive store ³Wills Lifestyle´ was opened in South Extension in Delhi in July 2000.

PRODUCTS ON OFFER ‡ Wills Lifestyle. etc. Lifestyle provides a different shopping experience through world-class ambience. United Colours of Benetton. Madura Garments. fashion accessories and Essenza Di Wills ± an exclusive range of fine fragrances and bath & body care products and Fiama Di Wills . POSITIONING AND VALUES OFFERED Elegance. and fashion trends to keep its loyal 10 . International premium quality and vitality are imageries that the brand evokes. offers a tempting choice of Wills Classic work wear. ArvindMills. the fashion destination. ITC changed gears. Life style has positioned itself in the premium segment of the market and it has been successful in establishing a well entrenched customer base consisting of the upwardly mobile urban professionals. merchandising.a range of premium shampoos and shower gels. Wills Clublife evening wear. store designing. BUSINESS STRATEGIES GOING THE WHOLE HOG-STRATEGIC TIEUPS Even as Wills Lifestyle was busy preparing itself to rule the premium segment. Wills Sport relaxed wear. Provogue. and sought international advice in areas like people training. customer facilitation and clearly differentiated product presentation Life style positions itself as a sophisticated retailer who offers the best in class products and shopping experience to its target group-the upper strata of the society. many premium category players like Westside. sophistication and exclusivity sum up the core values of Wills Lifestyle. entered the fray targeting the young and upwardly mobile urban consumers.

Besides. a LasVegas-based architectural. The company also collaborated with the Italian design studios Alessandra Macchi Studio for flat knits and Ricardo Rami Studio for fashion wear for women. The company spends roughly 12 percent of its turnover on advertising and marketing. who are clued on to the latest fashion trends across the world. Company emphasises that there's a perfect synergy between its brands and the fashion week. it has tied up 11 . it found an easy-fit with India Fashion Week. to get a new-look. newspapers. And being a premium brand. as it gives it a clear chance to promote its flagship Signature collection in a big way. aspirational and at the same time accessible and affordable. Recently. planning and interior design services firm. to ensure future supply of talent and to promote fashion further. a bi-annual event title-sponsored by Wills Lifestyle for some years now. it has an in-house talent pool of 30 fashion designers. it has roped in FRCH.customer base intact. It has also tied up with the London-based Elemental Design on visual merchandising to make in-store product presentation more attractive. making sure that the designer wear is glamorous. In the light of the slowdown. the chain does extensive promos through mass media advertising like magazines. A RAMPS-TO-RACKS PRESENCE-BRAND MANAGEMENT After creating its retail presence and establishing premium brand imagery. That apart. the brand needed something to keep itself up-to-the-minute to get to the next level. Since then. loyalty leveraging and promo. through personalized marketing. The company tied up with the US based Friedman group to train its people in selling skills thus converting more footfalls into sales. BTL spends are expected to go over 60 percent of the total spends. The fashion week provides a great opportunity to create global benchmarks and has worked very well For its regular wear range. INNOVATIVE MEDIA MIX Most of the marketing strategy for the brands revolves around its flagship event association with the fashion week. The whole idea is to take designer wears from the ramp to the rack. etc. and is also looking at Face Book and YouTube to attract the youth. there has been a 20 percent increase in footfalls across its stores and 15-20 percent rise in productivity. it¶s channeling its marketing spend more towards BTL initiatives like activation.

The major learning outcome from this analysis is that a group like ITC which has strong brand image can diversify and be successful thanks to customer patronage and forceful strategies.with leading fashion institutes like NIFT. The main reason for its success is the synergy and the capitalization of ITC¶s powerful brand name. 12 . A 1. with an eye on building future capacity and the capability of the fashion industry. CONCLUSION Lifestyle has carved a niche for itself in the high end retail segment.500 sqft boutique is already operational at the ITC Maurya in New Delhi. Currently lifestyle has no plans to go global rather its future strategy is hinged on the great Indian boom. and soon Chennai and Bangalore hotels will too have them. NID and Pearl Academy to help budding designers showcase their talent. FUTURE PROSPECTS The lifestyle retail group believes that in hotel retailing and franchising is the way forward. Wills Lifestyle will also open boutique stores across the group's hotels.