PANTALOON :REVOLUTIONIZING THE INDIAN RETAILING INDUSTRY

SUBMITTED TO MR NILESH NEELMANI

SUBMITTED BY: ANITA GAURAV MOONGA NEHA SINGHAL PARUL CHUGH

INTRODUCTION 
India¶s leading retailer operating in value and lifestyle segment of the indian consumer market.  From a small single format store in 1993.PRIL had grown to become the largest multi-format store by 2004,comprising pantaloons(department store),big bazaar(hyper market),food bazaar(grocery store),gold bazaar(gold retail store) and central(malls).It was one of the largest players in discounting retail.  A flagship company of Future Group.

FUTURE GROUP 

VISION:-´to deliever everything,every where,every time to every indian consumer in the most profitable manner´  MISSION:-´Indianess as a core value´  CORPORATE CREDO:-´rewrite rules,retain value´

3% in organized retailing.the small individual proprietor store called ³kirana´ shops dominating the scene.  Food & Groceries.Unorganized sector accounted for over 98% of the retail stores.had a miniscule share of 0.  Apparel retailing was the second largest opportunity for the organized retailers.children¶s wear 20% and women¶s wear 8%.Branded apparel accounted for 20% of the total apparel market.  The organized retail sector in India was characterized by high attrition rates. .lack of trained manpower and low salaries.which accounted for nearly 50% of the consumer¶s total expenditure.of which men¶s clothing accounted for 70%.RETAIL INDUSTRY IN INDIA  In 2003 India had over 10 million retail outlets selling worth $200 billion.

.  In 2002-2003 discounts store made an entry into Indian retailing industry  In 2003-2004 international retailers plan to enter India but FDI was not allowed in retail segment.Contd.

the Indian jeans brand.  1995: John Miller ± Formal shirt brand launched.MAJOR MILESTONE  1987: Company incorporated as Manz Wear Private Limited.  1991: Launch of BARE. The company starts the distribution of branded garments through multi brand retail outlets across the nation. .  1997: Pantaloons ± India¶s family store launched in Kolkata. India¶s first formal trouser brand.  1992: Initial public offer (IPO) was made in the month of May. Launch of Pantaloons  trouser.  1994: The Pantaloon Shoppe ± exclusive menswear store in franchisee format launched  across the nation.

 2002: Food Bazaar.CONTD. µIs se sasta aur accha kahi nahin¶ India¶s first hypermarket chain  launched.India¶s first seamless  mall is launched in Bangalore.  2001: Big Bazaar.  2004: Central ± µShop. the supermarket chain is launched. Celebrate In The Heart Of Our City¶ . . Eat.

efficient supply chain. .  He emphasized on cheaper sourcing.location and floor space of the store.´setting up new stores.private labels.  Biyani believed that growth lays in.PANTALOON MODEL  Pantaloon adopted a pan-indian model that captured the value chain and allowed it to evolve with the customer prefrences.by introducing new retail formats.  He repositioned Pantaloons from a family to a lifestyle store as the market involved.affordable price.getting new customers.by introducing new products and by making no mistakes´.

PRODUCTS  Pantaloon sold aparrels and accessories categorized under:Men¶s formal Men¶s casual Ladies ethnic Ladies western Children¶s wear  Pantaloon develops three types of merchandise:Classic type Fashion type Collection type .

 In same year it launched a new apparel line called Passion Wear.  In 2003 pantaloon decided to launch designer labels. which he used for kids wear.Pantaloons also acquried the trademark and exclusive liscening rights for a apparel brand Norules.justin etc.  In 2000 pantaloon launched a new brand of casual sports wear.  In early 2003.it gots the right to use the youth characters of norules such as one eye jack.  He also acquried the licensing right for Popeye and Disney characters.Contd.The merchandize focus on World Cup.like Spring Board for women. .

 It also launched a youth brand Rig. .  In late 2003 Pantaloons tied up with the Italian apparel company Moda & Musica for the latter¶s UMM brand.Contd.  In 2001.Pantaloon tied up with Andhra Pradesh handloom weaver¶s cooperative society and NIFT to launch a womens¶s ethnic wear made from handloom.

Bare denim Ajile.BRANDS  Pantaloons focuses on company owned private labels and some other brands also.Rig.Rig Rig. Men¶s wear Ladies wear Children¶s wear John Miller.Bare .Ajile.

. an Italian firm known for its stylish stores.  In april 2004 pantaloons in partnership with Mattel india ltd.first pantaloon was positioned as a family store targeting the middle and upper class customers.in age group of 3-10. rather than stacked in shelves.  Garments was displaced on hangers.  In 2003 they focused more on youth segment and try to establish itself high on style graph.POSITIONING  With a tag line ³0-80´(age group).  The company had partnered with Gibam. Opened a µBarbie Concept Store¶ named as a Magical world of Barbie which targeted at young girls. to create a unique image for its stores.

featuring the upcoming Fashion events or its brand ambassadors who are generally eminent celebrity. .PROMOTION  To gain customer loyalty pantaloons launched following loyalty programmes *Green cards *Kids bank *Gift vouchers * Weekend adventure programmes  Hoardings:-Pantaloon puts its hoarding at prime locations.

 Initially.  In beginning the stores had a floor space of 4.  Pantaloon entered into a strategic alliance with Inox leisure to take up spaces in multiplexes.000 sq ft in high traffic areas like entertainment complexes and shopping malls.000-90. .  It takes 20.000-25.  One level distribution.property was purchased & developed by Biyani but after 2002 he decided to buy properties on lease.DISTRIBUTION  Pantaloons located at up market accessible & high footfall locations.000 sq ft.500 sq ft but later it grew bigger and occupied between 30.

AFL etc while rest were brands such as Levis.Arrow.  Special event pricing  Promotional pricing .PRICING  Pantaloons sold branded garments at affordable prices.John Millers.  In men¶s wear retailers earned margin between 55%60% on private labels while in women¶s wear it was between 48%-50%.reebok etc. HNY.  The price of private labels was 20%-25% lower as compared to the branded once.  More than 70% of apparel sales at pantaloons consisted of private labels like Bare.

blazers and suits which are delievered to customers within 48hrs.Earlier it was in aisle format but they changed it into L & U shaped counters. .  Pantaloons had a ³No Question Asked´ exchange policy.SERVICES  As it is a family store the staff was trained to handle older people.  They also launched a unique customized tailoring for trousers.  Pantaloons also changed the store layout.

PERCEPTUAL MAP OF PANTALOON high price globus Shoppers stop pantaloon Low assortment High Assortment Low price .

B2 Lifestyle-culture-oriented.economy.A2.metropolitan cities  DEMOGRAPHICFamily Size-family life cycle Income-upper middle &high  PSYCHOGRAPHICSocioeconomic Class-A1.service User status-regular Usage rate-medium Loyalty status-medium & strong Attitude-positive .outdoororiented  BEHAVIORALOccasions-regular Benefits-quality.sports-oriented.STP OF PANTALOON  GEOGRAPHIC-urban.

PRODUCT LEVELS  CORE BENEFIT.trendy & fashionable clothes  POTENTIAL PRODUCT.high end clothes .quality and variety  AUGEMENTED PRODUCT.protection  BASIC PRODUCT.different types of apparels and clothings  EXPECTED PRODUCT.

PECEPTUAL MAP OF BIG BAZAAR product mix(high) Big bazaar High price economic vishal Product mix(low) .

culture-oriented  BEHAVIORALOccasions.regular Benefits.outdoor-oriented.urban  DEMOGRAPHICIncome.STP OF BIG BAZAAR  GEOGRAPHIC.regular .lower middle Family size.B2 Life style.family life cycle  PSYCHOGRAPHICSocioeconomic class-B1.economy User status.middle.

PRICING     EDLP(every day low price) Promotional pricing Differentiated pricingBundling PROMOTION  SAAL KAY SABSE SASTE TEEN DIN  Future card  Wednesday bazaar .TARGET AUDIENCE  Big bazaar target middle class consumers who are highly price conscious and seeks value in purchase made.

.TARGET AUDIENCE  They are targeting the whole family in urban area.

fresh stock POSITIONING  Consistent positioning-always low price .STP OF FOOD BAZAAR  GEOGRAPHIC.economy.metro cities  DEMOGRAPHICAge-30 & above Family size-family life cycle Income.upper middle  BEHAVIORALBenefits.

T.time pricing PROMOTION  SAAL KAY SABSE SASTE TEEN DIN-26jan.15aug or diwali  Future card(3%)  Shakti card  Advertisements-print ads.V ads.PRICE      EDLP(every day low price) Promotional pricing Psychological discounting Special event pricing Differentiating pricing.radio ads  HAFTE KA SABSE SASTA DIN(Wednesday) .

DISTRIBUTION CHANNEL  Distribution is done by distributors who is the middle man between the manufacturer and retailer. .

system enabled vendors to send report directly to the pantaloons.  In 2001 pantaloons switched to bought out sales. tools such as point of sales software. .  Pantaloon instituionalised both at vendor primese & its own warehouses.  Pantaloon adopted MIS with a reporting module for its back office transactions.  A vendor mgmt.  It monitored price fluctions daily in whole sale market.SUPPLY CHAIN MANAGEMENT  In 1998.where pantaloons was responsible for the merchandise sold in the stores.Pantaloons recurited ex Ernest & Young employees to develop in-house supply chain mgmt.

consumer durables.  To re-establish and rejuvenate its existing brands.music & car acessories retailing.22 big bazaars.21 pantaloons & 4 centrals.pantaloons intended to spend INR 2 crores & additional INR 1 crore on its upcoming brands.  As a repositioning Biyani planned to give a new makeover to pantaloons.  The company also had an forged alliance with a sports retail footwear company called Royal sports house.THE ROAD AHEAD  Pantaloon planed to expand its retail stores to small cities like lucknow.  By the end of 2005.pantaloon is expected to have 30 food bazaars.nagpur etc.  Pantaloon also had plan to venture into footwear. .

 Pantaloons planned to launch a B2B portal.they planned to deploy a retail ERP solution.  The company was planning to reduce the number of vendorsfor both Pantaloons and Big bazaar  To meets it growing technology meet.which would support functions such as HR & Marketing.to bring transparency in the value chain. .CONTD.

THANK YOU .