34434205 a project report on pantaloon 2

8/4/2019 34434205 a Project Report on Pantaloon 2

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INSTITUTE OF PROFESSIONAL EDUCATION &

RESEARCH, BHOPAL

2007-2009

FINAL PROJECTREPORTON PANTALOONANURAG SAHU


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A PROJECT REPORT

On

RETAIL STORE MARKETING ACTIVITY

(IN STORE TIE-UPS FOR LOYALTY PROGRAM TO ACHIEVEGREEN CARD TARGET, TIE-UPS FOR EOSS AND DENIM

EXCHANGE)

AT

PANTALOON RETAIL INDIA LTD.

FOR THE PARTIAL FULFILLMENT OF

THE REQUIREMENT

OF

MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY

ANURAG SAHU

MBA IV SEMESTER

INSTITUTE OF PROFESSIONAL EDUCATION &

RESEARCH, BHOPAL

(BARKATULLAH UNIVERSITY, BHOPAL)

2007-2009


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PREFACE

The research provides an opportunity to a student to demonstrate applicationof his/her knowledge, skill and competencies required during the technicalsession. Research also helps the student to devote his/her skill to analyze the

problem to suggest alternative solutions, to evaluate them and to provide

feasible recommendations on the provided data.

The research is on the topic ofRETAIL STORE MARKETINGACTIVITY(IN STORE TIE-UPS FOR LOYALTY PROGRAM TO

ACHIEVE GREEN CARD TARGET, TIE-UPS FOR EOSS AND

DENIM EXCHANGE)ATPANTALOON RETAIL INDIALTD.

Although I have tried my level best to prepare this report an error free reportevery effort has been made to offer the most authenticate position with

accuracy.


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DECLARATION

I hereby declare that the project report entitled RETAIL

STORE MARKETING ACTIVITY(IN STORE TIE-UPS FOR

LOYALTY PROGRAM TO ACHIEVE GREEN CARD TARGET, TIE UPS

FOR EOSS AND DENIM EXCHANGE) ATPANTALOON RETAIL

INDIA LTD. is an authentic work done by me.

The project was undertaken as a part of the course curriculum

of MBA program, Barkatullah University, Bhopal. This has not

been submitted to any other examination body earlier.

ANURAG SAHU


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TABLE OF CONTENT

SERIAL

NO.

CONTENTS PAGE

NO.1 Preface 4

2 Acknowledgements 5

3 Synopsis 6-10

4 Introduction

a. Industry Background

b. Introduction of Indian Retail King

c. Milestone to Success

d..Company Introduction

12-35

5 Terms Of Reference 36

6 Methodology 37-39

7 Work Profile

a .Customer Loyalty Program

b .About tie-ups for Green Card and EOSS

c. Customer Entry

d. How to increase the Customer Entry

e. Denim Exchange 07

f. Activities done for Denim exchange

g. Eoss

h. Activities done during EOSS

40-65

9 Findings of The Report 66-72

10 Recommendations 73-74

11 Conclusion 75

12 Bibliography 76


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JUSTIFICATION FOR THE SELECTION OF THIS

PROJECT AND TITLE

Pantaloon Retail (India) Limited, is Indias leading retailer that operates multiple retail

formats in both the value and lifestyle segment of the Indian consumer marker, along

with some other big names such as RPG, Shoppers Stop, Life Style, Westside, Ebony,

Piramyd etc.

The reason why I chose this sector is because as there are huge opportunities in this

sector in the coming years. India was not into retail before 10 years from now but now it

is very much into organized retailing. There is cut through competition in this field. Every

alternate day we hear of a new companies getting into Retail sector, where this makes

competition tough. I felt if I have experience in Pantaloon than I would be equipped to

face the challenges that will come across while working in this sector.

I was in marketing along with Customer Loyalty Program. I felt that while doing out

marketing projects for the Pantaloon store I will have well expose & experience of this

field. I got to learn a lot about retailing, marketing in retail sector, knowing different

people, how exactly product reaches final consumer, how all theses things are decided

and how. This is the reason why Retail sector influences me the most. Since I was

involved into marketing for different event of the store where all the parameters has to be

considered which made this project more challenging & interesting.


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OBJECTIVE OF THE STUDY

Objective of the Retail store Marketing was to make customers aware about the

Sale offers during Denim Exchange and EOSS i.e. End Of Season Sale provided by

Pantaloon and also to achieve the Green Card target of Customer loyalty Program

during EOSS.

To provide extra privileges to Pantaloons Green Card customers - keeping in

mind that they get extra privileges not only inside the store of Pantaloons, but also

outside the store and to make the Pantaloon Customer Loyalty Program more powerful

by doing tie-ups with Restaurants, Health-Clubs, Saloons, Pubs, colleges, Laundries,

Tattoos Makers.

To make Green Card Members realize that they are Special customers for the

company.

To find out customer loyalty for Pantaloon store

To find out customer satisfaction


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INTRODUCTION

INDUSTRY BACKGROUND

India, like Britain, is a nation of shopkeepers. With over 12 million retail

outlets, India probably has the highest density of retail outlets in the world,

with one for approximately every 90 persons; little wonder that the country

is the ninth-largest retail market in the world, with estimated annual retail

sales of around USD215 billion in 2005 (Rs 960,000 crore). At the same

time, the share of organised trade in this enormous market is currently very

small. It is estimated at just USD8 billion (Rs 35,000 crore) in 2005, up from

USD6.25 billion (Rs 28,000 crore) in 2004. This accounts for less than 4 per

cent of the total retail trade in the country

AN UNDERDEVELOPED RETAIL MARKET

Organised trade in India is very underdeveloped when compared with other

emerging markets in Asia, Latin America and Eastern Europe.

The Indian and Chinese markets are comparable in many aspects:

Both countries are not homogeneous. They comprise many markets within a

single country, with significantly varying cultures and customer preferences

across regions.


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There is a significant rural population in both countries, which has much

lower purchasing power compared to the urban population.

Both countries are geographically very large and unevenly developed,

adding a significant distribution and logistics dimension to the retail trade.

Consumers in both countries are highly value conscious.

Between 1996 and 2003, the organised retail market in China more than

doubled. We estimate that the Indian retail market is today at the same

inflection point as China was in the mid-1990s. Consequently, considering a

similar per capita GDP and roughly similar rates of economic growth, the

Indian organised retail market has the potential for exponential growth over

the next decade.

CONSUMERISM: THE NEW WAVE

Growing consumerism would be a key driver for organised retail in India.

Several demographic indicators show favourable trends for the growth of

organised trade:

Rapid income growth: consumers have a greater ability to spend.

Increasing urbanization: larger urban populations that value convenience,

coupled with the higher propensity of the urban consumer to spend.


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Growing young population: growth of the post-liberalization maturing

population, with the attitude and willingness to spend.

Spend now vs. save earlier: consumers are willing to borrow for present

consumption.

THE SIZE OF THE OPPURTUNITY

Research done by the Tata Strategic Management Group (TSMG) indicates

that over the next 10 years, the total retail market in India is likely to grow at

a compounded annual growth rate (CAGR) of 5.5 per cent (at constant

prices) to USD374 billion (Rs 16,77,000 crore) in 2015. The organised retail

market is expected to grow much faster, at a CAGR of 21.8 per cent to

USD55 billion (Rs 246,000 crore) in the same time frame, garnering around

15 per cent of overall retail sales. Based on our projections, the top five

organised retail categories by 2015 would be food, grocery and general

merchandise; apparel; durables; food service; and home improvement.

(Table 1) Organised retail market in India (Rs crore)


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organised sector accounts for 70 to 80 per cent of overall retail trade

in certain categories. Retailers should therefore focus on the top 37

towns in the next decade, as the opportunity in smaller towns and

rural India would be smaller and more fragmented, compared to the

larger towns. Organised retail market in India (Table 2)

There are a few key trends that one observes in international markets

TREND1: CONVINENCE STORES AND HYPERMARKETS ARE

GAINING PROMINENCE

These are driven by a consumer need for convenience and lower prices /

higher value in mass categories, while the big box category killer stores are


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gaining importance in the specialty retail categories. While supermarkets

may emerge at the initial stages of retail market development, in the long

term they are unable to match the consumer value proposition of

convenience stores and hypermarkets.

TREND2: PRIVATE LABEL BRANDS BECOME IMPORTANT

Private labels today account for 17 per cent of global retail sales,

with the highest share of 23 per cent in Europe and the lowest share

of 4 per cent in Asia. M+M Planet Retail data shows that private label

penetration varies from 25 per cent to 95 per cent among some of

the largest retailers in the world. Growing acceptance among consumers,

increasing price competition, the need for differentiation among retailers

and the ability to offer higher margins are the key factors contributing to the

growth of private labels. Private labels provide the retailer an ability to offer

a significant price advantage to consumers, their prices being 16 to 32 per

cent lower than manufacturers' brands.

IMPLICATIONS OF INDIAN RETAILER


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Global trends have important implications for Indian retailers. The Indian

consumer is very value conscious; willing to spend money in most cases,

but constantly cost conscious, evaluating every rupee spent. It is therefore

imperative for retailers to offer a price advantage through sourcing and

operational efficiency, as well as a strong private label programme to attract

customers. Existing and new entrants need to achieve scale quickly to drive

efficiencies in procurement, supply chain and marketing. Else, they risk

being marginalised by larger players.

Real estate and human resources will be the critical drivers to build scale.

While there are a few hundred malls under various stages of development

across the country at present, retailers will also need to think out of the box

to ensure the availability of real estate. This may include acquiring and

developing the real estate themselves, rather than wait for mall

development. Given the rising demand for retail real estate, retailers will

need to take a long-term view on rentals and look at alternative options like

ownership or very long leases. Retailers that invest in training will be able

to ensure the availability of quality manpower in a rapidly growing market.

In conclusion, the retail market in India offers an opportunity for a large

player to build a Rs 40,000-crore retail business spanning multiple

categories by 2015 (at current prices). Compared to this, the revenue of the


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largest Indian retailer, Pantaloon, grossed only Rs 1,085 crore in 2005.

Little wonder that large domestic business houses and international retailers

have expressed a keen interest to enter the retail sector in India. To

capitalise on the opportunity, however, players need to be aggressive in

outlook and build scale quickly.

INTRODUCTION OF INDIAN RETAIL KING


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MEET INDIA'S KING OF RETAIL

MR. KISHORE BIYANI

Unlike most people, Kishore Biyani makes no bones about his simplicity.

He's the man you're most likely to ignore at the Pantaloon or Big Bazaar

store, as he stands in a corner observing the way you shop. But make no

mistake; what he may lack in sartorial style, he more than makes up through

his observation powers.

You'll never catch him in a tie and jacket. He isn't a stickler for large cars,

and has just graduated from driving a Honda City to a Honda Accord,

though he's just as content driving around in a junior manager's Maruti 800.

He is a strict vegetarian, and is currently off cheese and fried foods, but will

otherwise eat anything that is green.


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Pantaloon's Kishore Biyani has become India's largest retailer, but still has

several aces up his John Miller shirtsleeves.

In India's chaotic markets, Kishore Biyani is the unchallenged king of retail.

He has the knack of catching rivals off-guard and striking where it hurts

most.

Biyani's victory isn't unexpected. India's own Sam Walton (the legendary

promoter of Walmart) is quick to seize any advantage. Which is why the

denim manufacturer who quit the trade because "it wasn't creative enough"

commands over 1.3 million sq ft of retail space.

But even size hasn't made a difference to Biyani's vaulting ambitions and

he's on an even faster trajectory of growth. He's booked over 4.5 million sq

ft of space across the country, and will utilise 3 million sq ft by this year's

end in 23 Indian cities.

He will invest over Rs 200 crore (Rs 2 billion) to make this dream a reality.

Says R S Roy, editorial director of the magazine Retail, which tracks the

industry closely: "Mall developers have him in mind before they start

constructing. His presence ensures footfalls and a premium for the mall."


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Two years ago, no one took Kishore Biyani seriously. His company,

Pantaloon Retail, was seen as a one-man show. Biyani himself was regarded

as unpredictable, and not a long-term bet. Today, he is the biggest retailer in

India. In two years, Kishore Biyani has bounced back to become India's

largest retailer.


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MILESTONES TO SUCCESS:

1987 - Company incorporated as Manz Wear Private Limited. Launch

of Pantaloons trouser, Indias first formal trouser brand.

1991 - Launch of BARE, the Indian jeans brand.

1992 - Initial public offer (IPO) was made in the month of May.

1994 - The Pantaloon Shoppe exclusive menswear store in

franchisee format launched across the nation. The company starts the

distribution of branded garments through multi-brand retail outlets

across the nation.

1995 - John Miller Formal shirt brand launched.


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COMPANY PROFILE

Pantaloon Retail (India) Limited, is Indias leading retailer that operates

multiple retail formats in both the value and lifestyle segment of the Indian

consumer marker. Headquartered in Mumbai (Bombay), the company

operates over 5 million square feet of retail space, has over 350 stores

across 40 cities in India and employs over 18,000 people.


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The companys leading formats include Pantaloons, a chain of fashion

outlets, Big Bazaar, a uniquely Indian hypermarket chain, Food Bazaar, a

supermarket chain, blends the look, touch and feel of Indian bazaars with

aspects of modern retail like choice, convenience and quality and Central, a

chain of seamless destination malls. Some of its other formats include,

Depot, Shoe Factory, Brand Factory, Blue Sky, Fashion Station, aLL, Top

10, mBazaar and Star and Sitara. The company also operates an online

portal, futurebazaar.com.

A subsidiary company, Home Solutions Retail (India) Limited, operates

Home Town, a large-format home solutions store, Collection i.e. selling

home furniture products and E-Zone focused on catering to the consumer

electronics segment.

Pantaloon Retail is the flagship company of Future Group, a business group

catering to the entire Indian consumption space.


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FUTURE GROUP:

Future Group is Indias leading business group that caters to the entire

Indian consumption space. Led by Mr. Kishore Biyani, the Future Group


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operates through six verticals: operates through six verticals: Retail, Capital,

Brands, Space, Media and Logistics.

Apart from Pantaloon Retail, the groups presence in the retail space is

complemented by group companies, Indus League Clothing, which owns

leading apparel brands like Indigo Nation, Scullers and Urban Yoga, and

Galaxy Entertainment Limited that operates Bowling Co, Sports Bar, F123

and Brew Bar.

The groups joint venture partners include French retailer ETAM group,

US-based stationary products retailer, Staples and UK-based Lee Cooper.

Group Company, Planet Retail, owns and operates the franchisee of

international brands like Marks & Spencer, Next, Debenhams andGuess in

India. The groups Indian joint venture partners include, Manipal

Healthcare, Talwalkars, Blue Foods and Liberty Shoes.

Future Capital Holdings, the groups financial arm, focuses on asset

management and consumer credit. It manages assets worth over $1 billion

that are being invested in developing retail real estate and consumer-related

brands and hotels. The group has launched a consumer credit and financial

supermarket format, Future Money and soon plans to offer insurance

products through a joint venture with Italian insurance major, Generali.


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The group is currently developing over 50 malls and consumption centers

across the country and has formed a joint venture company focusing on

mall management with Singapore-based CapitaLand, one of Asias largest

property companies

Future Groups vision is to, deliver Everything, Everywhere, Every time to

Every Indian Consumer in the most profitable manner. The group

considers Indian-ness as a core value and its corporate credo is - Rewrite

rules, Retain values.

Companys vision:

Future Group shall deliver Everything, Everywhere, Everytime for Every

Indian Consumer in the most profitable manner.

Companys Mission:

We shall infuse Indian brands with confidence and renewed ambition. We

shall be efficient, cost- conscious and committed to quality in whatever we

do. We shall ensure that our positive attitude, sincerity, humility and united

determination shall be the driving force to make us successful.


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PARTNER COMPANIES OF PANTALOON

1. Home Solutions Retail (India) Ltd:

Home Solutions Retail (India)

Ltd. (HSRIL) leads the groups foray in the home improvement and

consumer electronics retailing segment. It caters to home management

requirements and products, including furnishings and textiles, furniture,

consumer electronics, home electronics and home services. It operates retail

formats like Home Town, Furniture Bazaar, Collection I, E-Zone, and

Electronics Bazaar.

2. Future Capital Holdings:

Future Capital is the financial arm of

the group and is involved in asset management (both private equity and real

estate funds) with plans to get into other financial services including

insurance, credit and other consumer related financial services. Its associate

companies are Kshitij Investment Advisory Co. Ltd., Indivision Investment

Advisers Ltd., and Ambit Investment Advisory Co. Ltd.

3. Indus league clothing Ltd. :


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Footmart Retail is a joint venture with Liberty Shoes and is engaged in the

retailing of footwear products in India.

3. Capital Land Retail India:

The group is a joint venture partner in CapitaLand Retail India, along with

Singapore-based CapitaLand Limited. The company provides retail

management services to retail properties owned or managed by various

group companies and investment funds.


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LINE OF BUSINESS

e telling

Futurebazaar.com offers the widest range of products at lowest prices

everyday!

Having pioneered the retailing business in India, PRIL has now decided to

revolutionize the consumer e-commerce business in India. It intends to

provide customers with a streamlined, efficient and world class

personalized shopping experience, which will be supported with the best

technology platform.


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Buying products is a 3 step simple process. All one has to do is Search,

Register and Buy. Here you can expect a shopping experience akin to

shopping at an actual bazaar but with added simplicity & everyday low

prices and an assurance of 'your product' will be delivered within 7 days

of purchase.

We are proud to inform you that Future Bazaar has been named as the

Best Indian Website 2007 in the Shopping category by PC World.

Future Bazaar won the top spot after beating other established players like

Rediff, Indiatimes, Sify, ebay, Indiaplaza, Chennai Bazaar and India Mall.

The award was presented to Future Bazaar for its "decent, no-nonsense

approach, while providing a good shopping experience".

2.Food

Brew Bar : The Brew Bar is a classy and refined; yet reasonable an

egalitarian a bar with loads of bonhomie.

Caf Bollywood : Indian street food but with assurance of highest

levels of hygiene and quality.

Chamosa : Chamosa is a branded chain, which sell the local Indian

snack combination of tea and samosas.


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Food Bazaar : Life is all about good taste and food bazaar aims to

ensure the same. With the low prices, a wide selection of products and

guaranteed freshness, you are bound to find it irresistible.

Sports Bar : A bistro focused on the world of sport, the Sports Bar is

complimented with an unrivalled ambience.

3.Fashion:

ALL : Shop big and shop for big, coz fashion just got a little larger!

Fashion for plus size people.

Big Bazaar : If value for money is what drives your purchase; there

can be no better place for you other than Big Bazaar.

Blue sky : Accessories like never before....get the best in sunglasses

and watches at your kind of prices.

Central : A showcase, seamless mall for all your needs. Located in the

heart of your city, Central invites you to Shop, Eat, and Celebrate.

Fashion station : Fashion Station takes fashion a notch higher in the

value segment... for the ones who have an eye for it.


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Giny & Jony : Gini and Jony is a lifestyle brand with a radical

approach to kids fashion. The brand caters to an age group of 2 to 16 years,

that is uber chic, style conscious and stresses on a head to toe fashion

concept.

Navaras : Navaras is a fine 22 carat pure gold and diamond jewellery

brand, retailed from Big Bazaar stores.

Lee Cooper : Regarded as a brand that is fun to wear and be

associated with, Lee Cooper offers the entire range of lifestyle products in

fashions category for young men and ladies.

Pantaloons : Today a leader in fashion... Promises Fresh Fashion for

the young and trendy.

Top 10 : Top 10 is based on the concept of the ever popular

countdown shows, where the trendiest styles get ranked from 1 to 10; the

highest selling item gets the highest ranking!


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BOARD OF DIRECTORS

MANAGING DIRECTOR:

Mr. Kishore Biyani is the Managing Director of Pantaloon Retail (India)

Limited and the Group Chief Executive Officer of Future Group.


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WHOLE TIME DIRECTOR:

o Mr. Gopikishan Biyani.

o Mr. Rakesh Biyani.

NON- WHOLE TIME DIRECTOR:

o Mr. Ved Prakash Arya.

INDEPENDENT DIRECTORS:

o Mr. Shailesh Haribhakti.

o Mr. S Doreswamy.

o Dr. D O Koshy.

o Ms. Anju Poddar.

o Ms. Bala Deshpande.

o Mr. Anil Harish.

TERMS OF REFERENCE

The time period given for the tie-ups for the Green

Card Customer Loyalty Program, Denim Exchange and EOSS i.e. End of

Season Sale was a short span of time i.e. Just 20 Days.


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The marketing activity was restricted to Pune region

only.

There was no monetary stipulation for the Project

only traveling allowances were given.

We were asked to present the findings on the Excel

sheet or on the word.

RESEARCH METHODOLOGY

Research is an organized and systematic way of finding answers to

questions


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SYSTEMATIC because there is a definite set of procedures and steps

which you will follow. There are certain things in the research process which

are always done in order to get the most accurate results.

ORGANIZED in that there is a structure or method in going about doing

research. It is a planned procedure, not a spontaneous one. It is focused and

limited to a specific scope.

FINDING ANSWERS is the end of all research. Whether it is the answer to

a hypothesis or even a simple question, research is successful when we find

answers. Sometimes the answer is no, but it is still an answer.

QUESTIONS are central to research. If there is no question, then the

answer is of no use. Research is focused on relevant, useful, and important

questions. Without a question, research has no focus, drive, or purpose.

DATA COLLECTION METHOD

The methodology adopted for data collection for the marketing activities i.e.

the tie-ups with

Restaurants

Pubs


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Saloons

Laundries

Societies etc was Primary Method because all this was done by

meeting personally talking directly face to face or it can also be called as

Personal Interview method.

SAMPLING

Sampling method used was Stratified Sampling.

STRATIFIED SAMPLING

In stratified sampling the entire population is divided into number of strata

like income, sex education etc .A random sample is then drawn from each

strata such that size of sample drawn from each strata is proportional to size

of strata.

Time required for this sampling method is low.

Lower sample size is required for this sampling and the cost involved is

average.

Sampling Method used was stratified method because the entire Pune city

was divided into different stratas and then we had to take the sample of

only A+ Restaurants, saloons, Pubs, laundries and societies etc.


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SAMPLE SIZE

Sample size was 75 including all restaurants, laundries, saloons, societies,

pubs etc.

SAMPLING PERIOD

Sampling Period given was just 20 days for all Green Card Customer

Loyalty Program also for the EOSS.


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QUESTIONNAIRE

PANTALOONS CONSUMER STUDY - PART OF GP(SHREY & AMRIT)

WHAT IS YOUR NAME

WHAT IS YOUR GENDER

MALE

FEMALE

WHAT IS YOUR AGE

0 to 20

20 to 30

30 to 40

40 plus

WHAT IS YOUR MONTHLY INCOME RANGE

less than 25,000

25,000 - 50,000

50,000 - 75,000

75000 plus

HOW OFTEN DO YOU SHOP AT PANTALOONS

ALMOST MONTHLY

QUATERLY

ALMOST EVERY 6 MONTHS

YEARLY


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WHAT IS YOUR AVERAGE SPENDING AT THE STORE

less than 500

500 to 10001000 to 1500

1500 to 2000

2000 plus

WHICH OF THE FOLLOWING SERVICES WOULD YOU LIKE TO BE INCORPORATED IN OURSTORE

STYLING COSULTANCY

KIDS PLAYING AREA

HOME DELIVERY AFTER ALTERATION

ARE YOU READY TO DISBURSE EXTRA AMOUNT FOR STYLING CONSULTANCY

YES

NO

IF SO, HOW MUCH

less than 50

50 to 100

100 to 150

150 plus

ARE YOU READY TO DISBURSE EXTRA AMOUNT IF WE PROVIDE YOU WITH THE KIDSPLAYING AREA

YES

NO

IF SO, HOW MUCH

less than 50

50 to 100

100 to 150

150 plus

ARE YOU READY TO DISBURSE EXTRA AMOUNT FOR HOME DELIVERY AFTERALTERATION


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YES

NO

IF SO, HOW MUCH

less than 50

50 to 100

100 to 150

150 plus

WHICH OF THE FOLLOWING STORES DO YOU FIND MOST ACCESSIBLE

PANTALOONS

SHOPPERS STOP

WESTSIDE

ANY OTHER

34434205 a project report on pantaloon 2

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