Pradip Report

8/8/2019 Pradip Report

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RETAIL MARKETING PROJECT ON

PANTLOON RETAIL (INDIA) LTD

Submitted By:To :

PRADIP Kr, Prof. J.SHANTI

MBA, IIBS , BANGLORE.

2nd

SEM.



PANTALOONS RETAIL

2 |PRADIP Kr.MBA , IIBS

Contents,,,,,,,,,,,,,,,,,,,,,,,,

About pantaloons..................................... ................................. ..................

Store location ................................................. ..............................................

Retail Meaning......................................................................... ................... ..

Three Important Things About a Retail store...........................................

Placing of Products in the outlet.......................................................... ..........

Products Offerings.................................................. ........................................

Company Strategies.............................. ................................................. ........

Promotion Strategy..................................................

Pricing Strategy........................................... ............................ .......................

Position Strategy....

Building Customer Loyalty................. ................................................ ...........

Conclusion... ................................... ........................

References........................... ...................................





PANTALOONS RETAIL


Company Outlet:

Pantaloons :: THE FORUM VALUE MALL

Address : The Forum Value Mall, Ground Floor,

No. 62, Whitefield Main Road,BanglorePincode:560006

State : Karnataka

Size : 50,000 + sq. ft.

Tel: NA

R ET IL ME NING:-

Retail comes from the French word retailer which refers to "cutting off, clip and divide" in terms of tailoring (1365). It first was recorded as a noun with the meaning of a "sale in small quantities" in1433 (French). It's literal meaning for retail was to "cut off, shred, paring".

Business of selling products and services to the public as the ultimate consumer.Retailing involvesselling many different products and services, either from a store location or in direct selling through

vending machines and in-home presentations, mail order, and so on.

First retailers in India include BATA, Pantaloon, Bombay Dyeing, Spencer¶s, and Nilgiris. Thecurrent Retail scenario is controlled by the likes of shoppers stop, Big Bazaars.

Three i portant things about a retail store

1) Location2) Price

3) Promotion

PL CING OF PRODUCT INT E OUTLET

The Pantaloons outlet in ³Forum Value Mall´ has Two

floors ± ground and first floor.

The ground floor has women and kids wear. It also containswomen and kids accessories. The women wear is in the frontof the ground floor, while the kids wear is in the back of theshop. The middle portion of the shop in the ground floor hasthe women and kids accessories.

The first floor has men wear and accessories. The men wear

is in the front and accessories at the back of the floor.

The keeping of the products of the women and kids in the ground floor is only for convenience andalso due to the fact that women are more prone to shopping. Kids come to shop with their mother,and

so they can be attracted more by keeping the kids wear and accessories in the ground floor.



PANTALOONS RETAIL


PRODUCT OFFERINGS::::::

Pantaloons is positioned as an entire family store and it deals in men¶s wear, ladies wear and

kid¶s wear. It mainly focuses on its Private label programme because the share of private

label has increased over the previous year and stands at nearly 75%. Below are some of the

company¶s private labels:

MEN¶S WEAR

John Miller

JM Sports

Bare Denim

Rig

Ajile

Lombard

T-2000

Bare Leisure

LADIES WEAR

Honey

Akkriti

Annabelle

Mix & Match

Ajile

Rig

KID¶S WEAR

Chalk

Bare 7214



PANTALOONS RETAIL


ACCESSORIES

Cosmetics

Stationary for kids

Books & Magazines



PANTALOONS RETAIL


COMPANY STRATEGIES

PROMOTIONAL STRATEGIES:::::::

1. Green Card is passport to a whole new world of exclusive benefits and privileges.

Instant discounts for every time you shop at Pantaloons.

Exclusive shopping days to get hold of latest merchandise.

Regular updates on collections and promos via catalogues, sms and email.

2. Pantaloon continued to be the title sponsor for femina miss India MANASVI MAMGAI2010 pageant.

PRICING STRATEGY::::::

They propose to provide branded products at 10% less

than the Mrp and 20% off on the local brands, which is

similar to what has been carried out in Big bazaar.

Keeping costs down is clearly the cornerstone of policy

at both chains. Pantaloon chief Biyani ensures cheaper

prices by keeping watch at every step.

Says Biyani: "We do three things -- buy directly from the manufacturers so that the middle

man is eliminated. We buy in cash and get a cash discount, and manage our stocks turns so

that we don't have money stuck up. The benefits are passed on to the customers.´



PANTALOONS RETAIL


POSITIONING STRATEGY::::::

Initially positioned as a family store, it finally veered towards becoming a fashion store withand emphasis on youths and clear focus on µFRESH FASHION¶. They are targeting youthand even women, since they are the ones defining most purchasing decisions.

Building customer loyalty:::::-

The key to a successful business is a steady customer base. After all, successful businesses typicallysee 80 percent of their business come from 20 percent of their customers. Too many businessesneglect thisloyal customer base in pursuit of new customers. However, since the cost to attract newcustomers issignificantly more than to maintain your relationship with existing ones, your effortstoward buildingcustomer loyalty will certainly payoff.

Here are ways that Pantaloons follow to build customer loyalty:

1. Communicate: Whether it is an email newsletter, monthly flier, a reminder card for a tune up,or aholiday greeting card, reach out to your steady customers i.e. they offer green cards on purchasing of Rs. 5000 or onwards with many discount schemes and inform the costumer about a special or extra

discounts through emails.

2. Employee Loyalty:Loyalty works from the top down. If you are loyal to your employees, they will

feel positively about their jobs and pass that loyalty along to your customers.

3. Employee Training: Train employees in the manner that you want them to interact with customers.Empower employees to make decisions that benefit the customer i.e. they provide one month trainingto their employees and give knowledge about fabrics in apparels and related products.

4. Customer Incentives: They give customers a reason to return to their business. For instance, because children outgrow shoes quickly, so they offer a card that makes the tenth pair of shoes half price. Likewise, a dentist may give a free cleaning to anyone who has seen him regularly for fiveyears.



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5. B Fl i

l : They t y t sol e customer problems or compl i ts to the best of their ability.

Accordi them excuses such as "That

s our policy" ? will lose more customers then setting the store

on f ire.

Point of-purchase (POP) Displays: They use POP displays by creating effecti e combination of

attracti e store layout and displays to make the impulse purchase of costumers.

I.e. In apparel segment they put the clothes in display from dark color to light color in winters and

vice versa in summers to attract customers or to increase their sales

SWOT analysis:::::-

Strength

Brand eq !

"

y and early m#

ver advantage; Entreprene r led, prof essionally managed

$ y an

experienced team; Project exec tion and operations capabilities; Vast range of lif estyle and value

retail products and services; Strong distribution and logistics network and supply chain; strong

distribution and logistics network, with our 21 distribution centers covering; and Large base of

customers and Strong focus on systems and processes; Retailing is a "technology-intensive" industry %



PANTALOONS RETAIL


It is technology that will help the organized retailers to score over the unorganized retailers.

Successful organized retailers today work closely with their vendors to predict consumer demand,

shorten lead times, reduce inventory holding and ultimately save cost. Example: Wal-Mart

pioneered the concept of building competitive advantage through distribution & information

systems in the retailing industry. They introduced two innovative logistics techni&

ues, cross-docking

and EDI (electronic data interchange). On an average a super market stocks up to 5000 SKU's against

a few hundred stocked with an average unorganized retailer. It is the main sponsor in Femina Miss

India. Strong management team Brand recognition and reputation and Diversity and variety in

products offered on the web (footwear, apparel, sporting e&

uipment etc.) Strong control over its

own distribution channel.No bad reputation like child labor or environment pollution.

W eak ' ess

Weaknesses found can be the opportunities of improvements. The No of outlets available in the

locations of pantaloons are very low. It does not have a strong presence everywhere. Promotional

Cost Vs Revenue Less Conversion level: Despite high footf alls, the conversion ratio has been very low

in the retail outlets in a mall as compared to the standalone counter parts. It is seen that actual

conversions of footf all into sales for a mall outlet is approximately 20-25%. On the other hand, a high

street store of retail chain has an average conversion of about 50-60%. As a result, a stand-alone

store has a ROI (return on investment) of 25-30%; in contrast the retail ma jors are experiencing a

ROI of 8-10%. Customer Loyalty: Retail chains are yet to settle down with the proper merchandise

mix for the mall outlets. Since the stand-alone outlets were established long time back, so they have

stabilized in terms of footf alls & merchandise mix and thus have a higher customer loyalty base.

High prices in some products E-retailing is limited

limited variety of products available online direct sale to consumers is creating conf licts with its

own resellers online customer service not "helpful" or easy to find.



PANTALOONS RETAIL


Opportu( ity

The Indian middle class is already 30 Crore& is pro jected to grow to over 60 Crore by 2010 making

India one of the largest consumer markets of the world. The IMAGES-KSA pro jections indicate that

by 2015, India will have over 55 Crore people under the age of 20 - ref lecting the enormous

opportunities possible in the kids and teens retailing segment. Organized retail is only 3% of the

total retailing market in India. It is estimated to grow at the rate of 25-30% p.a. and reach INR 1,

00,000 Crore by 2010. Percolating down- In India it has been found out that the top 6 cities

contribute for 66% of total organized retailing. While the metros have already been exploited, the

focus has now been shifted towards the tier-II cities. The 'retail boom', 85% of which has so f ar been

concentrated in the metros is beginning to percolate down to these smaller cities and towns. The

contribution of these tier-II cities to total organized retailing sales is expected to grow to 20-25%.

Rural

Retailing: India

'sh

uge rural populationh

as caugh

t th

e eye of th

e retailers looking for newareas of growth. ITC launched India's first rural mall "Chaupal Saga" offering a diverse range of

products from FMCG to electronic goods to automobiles, attempting to provide f armers a one-stop

destination for all their needs." Hariyali Bazar" is started by DCM Sriram group which provides f arm

related inputs & services. The Godre j group has launched the concept of 'agri-stores' named

"Adhaar" which offers agricultural products such as fertilizers & animal feed along with the re)

uired

knowledge for effective use of the same to the f armers. Pepsi on the other hand is experimenting

with the f armers of Pun jab for growing the right quality of tomato for its tomato purees & pastes.

Collaborate with other online retailers to offer its products Possibility of outsourcing the web

development and e-commerce to a third party developer new avenues for opening of outlets. And

Increase the promotional activities.

Threats

Increase in the Price of Raw materials Pantaloon strong reputation in the apparel industry Identif y

the Threats - competitors activities More number of outlets of competitors available in the

surrounding If the unorganized retailers are put together, they are parallel to a large supermarket

with no or little overheads, high degree of f lexibility in merchandise, display, prices and turnover.

Shopping Culture: Shopping culture has not developed in India as yet. Even now malls are just a

place to hang around with f amily and friends and largely confined to window-shopping.



PANTALOONS RETAIL


RETAILGLOBAL SCENARIO:::::

In the year 2000 the global retail market was 8144.2billion$ and during the year 2009 it will

be around12104.00billion$.The united state of America dominates the world retail market

and accounts for32.3% of the global retailing group. Europe generates30.8%,Asia

pacific25.6% and the rest of the world11.20%.In the world Wal-Mart is regarded as the top

retailer having different format. following table shows 15 largest retailer of the world.

Corporation

Wal-mart

Carrefour

Home depot

Metro

Royal a hold

Tesco

Kroger

Target

Costco

Albert sons

Aeon

Wal Green

GroupeAuchan



PANTALOONS RETAIL


Share of retailing in total employment in selected country:::::

Country Share of retail in total employmentIndia 6-7%China 6%Poland 12%Brazil 1 %U.S.A 11.7Korea 18%U.K 11%

Malaysia 7%

Shares price in the World:::::-

Total no of shares held by the entity in the Company: 18.41%.

CONCLUSION::::

Pantaloon Retail (India) Ltd is a company where it strives for lifestyle and value through its productsand services. Through the study, it is observed that pantaloon can be said an organization where theP¶s of marketing is taken seriously for the maximum profitability through large range of products, promotional activities for the company through newspapers , magazines , internet ,banners and postersand a solid sales organization monitoring that the P¶s are worked effectively. The store has been wellmaintained in accordance with the latest demands of the consumers and through all these strategiesPantaloon ensures repeated customer patronage.

References:::::

www.pantaloon.com

http://www.fibre2fashion.com/news/company-news/pantaloon-retail-india/

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