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Business strategy

Business strategy of

BIG BAZAAR, SHOPPER¶S STOP, PANTALOONS, LIFESTYLE

Submitted by: Group 6 Anshumali Anupriya Verma Vinay Rao Prashant. K Girish. P

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Kishore Biyani. Star & sitar and e zone. Company operates over 12 million square feet of retail space. brand factory. is one of India¶s leading business houses with multiple businesses spanning across the consumption space. 1000 stores in 71 cities with employee strength of 30.scribd. Big bazaar. a business group catering to the entire Indian consumption space. and Top 10. Company head quarters located in Mumbai.http://www. It operates on multiple platforms like Value and life style segment in the Indian consumers market. Future Group led by its founder and Group CEO. While retail forms the core business activity of Future Group. The company is in aspect of giving retailing a modern look with reachable for middle and middle lower class people. The company also operates on online future bazzar. LEADERSHIP AND HOLDING COMPANY BACKGROUND Pantaloon Retail is the flagship company of Future Group. group subsidiaries are present in 2 . Retailing includes retail formats like Pantaloons.com/doc/36606651/Fmcg-Companies-in-Rural-Markets PANTALOON-BUSINESS STRATEGY INTRODUCTION _ Pantaloon Retail (India) Limited is India¶s largest leading retailers. Mr.com for upper class that can get internet connectivity. Blue sky.000 people. Food bazaar.

leisure and entertainment. retailing international. Bare Leisure. capital. women wear and kids wear. Chalk.com/doc/36606651/Fmcg-Companies-in-Rural-Markets consumer finance. it finally veered towards becoming a fashion store with and emphasis on youths and clear focus on µFRESH FASHION¶.scribd. national and regional brands as well as private labels. Thus the store focuses on providing value for money proposition as it provides quality products at affordable prices. Honey etc. retail real estate development. Pantaloons believe that they will be drivers of fashion. Akkriti.http://www. Pantaloons have the best known national. POSITIONING OF PANTALOONS Pantaloons are positioned as a departmental store catering to the middle and upper middle class sections of the society. Bare Denim. Initially positioned as a family store. Bare. insurance. PRODUCTS AND OFFERINGS Pantaloons have a wide range of brands in menswear. BUSINESS STRATEGY 3 . since they are the ones defining most purchasing decisions. They are targeting youth and even women. retail media and logistics. international and regional brands apart from stocking its own private label. brand development. Its core offering is branded merchandise. Some of the brands they stock include Ajile.

Company has divided Indian customers in three different groups. According Maslow¶s theory of hierarchy the 14% people are in self actualization and Esteem needs in the pyramid. Each business is set to operate on defined strata. INDIA THREE. INDIA TWO. products and quality requirements.com/doc/36606651/Fmcg-Companies-in-Rural-Markets 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. The company diversified and acquired a large business in organic and inorganic way. But company did not forget ripe its strategy and values in the diversified company.The population of this constitutes only 14%. INDIA ONE. Diversification is done in two main categories RETAIL FORMATS and SPECIALIZED BUSINESS. Each has different values.http://www. The company in latter stage organized to support each other by physical material flow if required. To set and concentrate on one stratum is main objective of this strategy.scribd. INDIA ONE or consuming class . For this class pantaloon 4 . Classes destination strategy Future group has diversified its business keeping the retiling as common goal.Till recent times the modern retiling formats is offered for this class. In every new business company started to rewrite the rules by retaining values.

Earning capacity of this class is 60% lesser than INDIA ONE. INDIA THREE has seen 10 % decline. The present business model is not addressing this class. This segment doesn¶t contribute much in the contribution cycle. INDIA TWO or the serving class it includes people like house hold helpers.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. In the needs hierarchy they are located in for Social and security . The class led life on hand to mouth existence. 5 . Home town and star Galaxy entertainment.scribd. As ambiance is factor and other pleasuring non value added services are necessary. E zone. INDIA TWO has not changed it conception level. office peon etc. This is the people who make service INDIA ONE class. INDIA THREE or struggling class.com/doc/36606651/Fmcg-Companies-in-Rural-Markets patterned Future bazaar. They can¶t afford for beater living style.http://www. brand factory. For this class as the big bazaar. The need of the segment is local as they are finding it cheaper. The population of this class is more than 30%. Figure 1 shows change in consumption patter by different class in 2001-02 and 2007-08. Central. Future money and other retail formats are presented. Food bazaar.

com/doc/36606651/Fmcg-Companies-in-Rural-Markets 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 product value will be associated with external factors. This are considered as learning. The business will sell at marginal profit some times to attract the new customer who will prove potential customers in future. Pricing strategies Pricing is strategy used by Pantaloon retail chain to attain maximum market shares.The Company does not bothers about short term profit or loss by a strategy. The company¶s schemes are categorized in following groups y Value pricing This approach is used where external factors such as recession or increased competition force companies to provide 'value' products and services to retain sales. The company offers numerous schemes to attract the new customer as well as to retain the present customers.scribd.http://www. The strategy achieved by focusing pricing factors in INDAI TWO and on service and quality in INDIA ONE. y Promotional pricing 6 .

y Time pricing The innovative way of attract the customer is Timely pricing it is known that during holidays rate of customer is more. Example: A Person needs one soap for a period of time But bundling with attractive price with more than 3 soaps can attract them. y Low interest rate financing Future money helps in asset purchase at 0% interest. BTGO (Buy Two Get One Free) etc.scribd. 7 . Example a product is priced for 99 instead of 100. Reduction of profit margin with lot of advertisement will invite new customers.com/doc/36606651/Fmcg-Companies-in-Rural-Markets Pricing to promote a product is a very common application.http://www. The application of this done by BOGO (Buy one Get One). y Physiological discounting In India this approach is called as Bata rating system. y Bundling Bundling is marketing tool sell two or more complementary product as a package with attractive price. Consumer looks at 3 digits to 2 digits rather than exact value.When board shows price reduction from 100 to 99. Organization utilizes this approach when product has emotional value rather than rational value. The company has learnt it from strategy made on public holiday 26-Feb. The price is will lesser then individual selling price.

8 . 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.http://www. CONCLUSION Pantaloon retail India evolved its business strategy based on understudying customers.com/doc/36606651/Fmcg-Companies-in-Rural-Markets When the turnover of the day reached 30 cores where average is 5 cores. The organization deploys the cultural and regional strategies to attract the customers. FUTURE OF PANTALOONS We believe that Pantaloons would continue to experiment. The changing emotions of customers are tracked and they are linked with the power of modern retailing environment. Private label is gaining popularity in India and Pantaloons with its superior brand image would reap rich dividends with its private label offering. With its firstmover advantage.scribd. 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. With such experience crowded management is essential so to divert potential customers ³Wednesday bazaar´ where it will offer less profit margin sales. might push its private label hard. it actively shut doors for the competition by snapping up major brands before others could get to them.

Later in 9 .com/doc/36606651/Fmcg-Companies-in-Rural-Markets 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. 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.http://www.scribd.

Lifestyle provides a different shopping experience through world-class ambience. International premium quality and vitality are imageries that the brand evokes. WLS became the title partner of the premium fashion event ³India Fashion Week´.com/doc/36606651/Fmcg-Companies-in-Rural-Markets 2006.http://www. Wills Sport relaxed wear.scribd. Wills Clublife evening wear. 10 . the fashion destination. The lifestyle retailing business division also caters to the mid-segment market through its brands John Players and Miss Players. sophistication and exclusivity sum up the core values of Wills Lifestyle. 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. POSITIONING AND VALUES OFFERED Elegance. 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. fashion accessories and Essenza Di Wills ± an exclusive range of fine fragrances and bath & body care products and Fiama Di Wills . This association has helped the brand grow stronger and also make the product portfolio richer.a range of premium shampoos and shower gels. offers a tempting choice of Wills Classic work wear. PRODUCTS ON OFFER ‡ Wills Lifestyle.

The company spends roughly 12 percent of its turnover on advertising and marketing. many premium category players like Westside. to get a new-look. ArvindMills. a LasVegas-based architectural. It has also tied up with the London-based Elemental Design on visual merchandising to make in-store product presentation more attractive. newspapers. it has roped in FRCH. The company also collaborated with the Italian design studios Alessandra Macchi Studio for flat knits and Ricardo Rami Studio for fashion wear for women. United Colours of Benetton. The company tied up with the US based Friedman group to train its people in selling skills thus converting more footfalls into sales. In the light of the slowdown. BTL spends are expected to go over 60 percent of the total spends. 11 . etc. and fashion trends to keep its loyal customer base intact. merchandising. INNOVATIVE MEDIA MIX Most of the marketing strategy for the brands revolves around its flagship event association with the fashion week. Recently. through personalized marketing. ITC changed gears. and sought international advice in areas like people training. Madura Garments. Since then. Besides. it¶s channeling its marketing spend more towards BTL initiatives like activation. as it gives it a clear chance to promote its flagship Signature collection in a big way. entered the fray targeting the young and upwardly mobile urban consumers.com/doc/36606651/Fmcg-Companies-in-Rural-Markets BUSINESS STRATEGIES GOING THE WHOLE HOG-STRATEGIC TIEUPS Even as Wills Lifestyle was busy preparing itself to rule the premium segment. store designing.scribd. planning and interior design services firm. the chain does extensive promos through mass media advertising like magazines. Provogue. etc. there has been a 20 percent increase in footfalls across its stores and 15-20 percent rise in productivity. and is also looking at Face Book and YouTube to attract the youth.http://www. loyalty leveraging and promo.

it has tied up with leading fashion institutes like NIFT. to ensure future supply of talent and to promote fashion further.500 sqft boutique is already operational at the ITC Maurya in New Delhi. That apart. A 1. The fashion week provides a great opportunity to create global benchmarks and has worked very well For its regular wear range. The main reason for its success is the synergy and the capitalization of ITC¶s powerful brand name. it found an easy-fit with India Fashion Week.http://www. aspirational and at the same time accessible and affordable.scribd. who are clued on to the latest fashion trends across the world. Wills Lifestyle will also open boutique stores across the group's hotels.com/doc/36606651/Fmcg-Companies-in-Rural-Markets A RAMPS-TO-RACKS PRESENCE-BRAND MANAGEMENT After creating its retail presence and establishing premium brand imagery. 12 . a bi-annual event title-sponsored by Wills Lifestyle for some years now. FUTURE PROSPECTS The lifestyle retail group believes that in hotel retailing and franchising is the way forward. the brand needed something to keep itself up-to-the-minute to get to the next level. And being a premium brand. and soon Chennai and Bangalore hotels will too have them. CONCLUSION Lifestyle has carved a niche for itself in the high end retail segment. Company emphasises that there's a perfect synergy between its brands and the fashion week. NID and Pearl Academy to help budding designers showcase their talent. The whole idea is to take designer wears from the ramp to the rack. making sure that the designer wear is glamorous. it has an in-house talent pool of 30 fashion designers. Currently lifestyle has no plans to go global rather its future strategy is hinged on the great Indian boom. 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 an eye on building future capacity and the capability of the fashion industry.

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