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Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
Final projct on pantaloon
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  • 1. ON CUSTOMER SATISFACTION AT PANTALOON RETAIL STORE CROSS RIVER MALL SHAHADARA In the Partial Fulfillment of the Award of Degree Of MASTER IN BUSINESS ADMINISTRATION Batch (2010-12)Submitted to Submitted By:M.T.U ,Noida Shakti Kumar Singh MBA, III rd Sem Roll No: 1012970059 Forte institute of technology, Green Park Mawana Road, Meerut 1
  • 2. 2
  • 3. Guide certificate 3
  • 4. ACKNOWLEDGEMENTI, SHAKTI KUMAR SINGH, MBA Student in FIT, MEERUT is highly grateful to all those whoguided me in completing this project.First of all, I would like to pay my heartiest thanks to entire family of PANTALOONS,especially Mr. DEEPAK MANGLA (Store Manager) Pantaloon Retail Store Shahdara Delhi.Who provided me such a wonderful opportunity to do Summer Training and provided theirvaluable suggestions in understanding the work of Research Project.Last but not the least, I would like to thanks all faculty members, FIT, MEERUT, who gave methe useful tips and suggestions regarding project. I would like to thanksfor imparting her valuable guidance to me. 4
  • 5. DeclarationI hereby declare that I have carried out Summer Training Project on the topic entitled “CustomerProfiling & Purchase Parameters” at pantaloon retail store.I further declare that this project work is based on my original work and no part of this projecthas been published or submitted to anybody. SHAKTI KUMAR SINGH 5
  • 6. PREFACESummer training at any business organization makes the students more practical and habitual toanalyze the situation in more crucial a refined way, which ultimately contributes a later stage ofpractice. It also helps in filling up the gap between theoretical and practical experience. Thebusiness winner will be those organizations that size and expert opportunity by strategicallypositioning themselves.The Objective of this project is to find out the awareness of individual towards the Retail sector.And other most important objective of this project to know about “customer profiling andpurchase parameter”During preparing this project we meet many investors who have decided to buy a dresses. Weuse some source of information to prepare this project. We prepare this project on behalf of“Pantaloons retail store.”. Hence this framework is derived from the practice adopted by thecompanies in order to sustain and grow.We are serving the following pages that will endow the reader with insight in to the Indian retailsector from the corporate view- point. This study has been very useful learning experienceenriching knowledge in the field of retail sector. SHAKTI KUMAR SINGH 6
  • 7. Introduction 7
  • 8. Retail is India‟s largest industry, accounting for over 10 per cent of the countries GDP andaround eight per cent of the employment. The market size of Indian retail industry is about US$312 billion Organized retailing comprises only 4.5 per cent of the total retailing Estimated ataround US$ 8.7 billionThe organized retail sector is expected to grow to US $ 70 billion by 2010 International retailersIndias vast middle class with its expanding purchasing power and its almost untapped Retailindustry is key attractions for global retail giants wanting to enter newer markets. The Australiangovernments National Food Industry Strategy and Astride initiated a test marketing food retail inIndia wherein 12 major Australian food producers have tied up with India-based distributor ABMauri to sell their products directly at retail outlets. US-based home delivery and logisticscompany, Specialized Transportation Inkwell enter the Indian market through a strategic alliancewith Patel Retail, a subsidiary of Patel Integrated Logistics.Wal-Mart has announced its plans forIndia in partnership with Bharti,US coffee chain Starbucks‟ is well on its way to set up its firststore in India this Year.US based Tommy Hilfiger has tied up with Creative Portico, a Mumbaibased Home Textiles Company, to sell its home textiles and furnishings in India. Alfred Dunhill,a UK-based luxury men‟s brand, has tied up with Brand house. Retail Ltd. for its India ventureand will be opening four stores. The world‟s largest furniture retailer, Idea, has established anoffice in Gorgon for market research and is holding talks with domestic. 8
  • 9. TABLE OF CONTENTSREVIEW PAGE NO.Executive summary………………………………………………… 07-18Brief history of the organization…………………………………….19-34SWOT analysis ………………………………………… …………..35-39Award……………………………………………………………….40-44Board of director…………………………………………………….45-57Org. structure………………………………………………………. 58-60Mission, vision and philosophy……………………………………61-63Objective………………………………………………… 64-70.Research methodology…………………………………… 71-74 9
  • 10. Limitation…………………………………..,…………….. 75-76Data analysis……………………………………………… 77-84Findings…………………………......................................89-90Recommendation & Conclusion…………………………… 91-93Annexure……………………………………………………94-96Bibliography ………………………………………………..97-98 10
  • 11. Executive summary 11
  • 12. The Pantaloon group, a leading retailing group in India. In March 2006, the group renamed itselfas the Future Group and was further divided into six verticals - Future Retail, Future Brands,Future Space, Future Capital, Future Media, and Future Logistics. Headquartered in Mumbai(Bombay), the company operates Over 7 million square feet of retail space, has over 1000 storesacross 53 cities in India and employs over 25,000 people Future Group shall deliver Everything,Everywhere, Every time for Every Indian Consumer in the most profitable manner We shall beefficient, cost- conscious and committed to quality in whatever we do.Rewrite rules. Retain values.Mr. Kishore BiyaniWebsite: www.pantaloon.comCompany Outlet:Pantaloons:: cross river mallAddress : Shahadara New Delhi 12
  • 13. RETAIL MEANINGRetail comes from the French word retailer which refers to "cutting off, clip and divide" in termsof tailoring (1365). It first was recorded as a noun with the meaning of a "sale in smallquantities" in 1433 (French). Its literal meaning for retail was to "cut off, shred, paring".Business of selling products and services to the public as the ultimate consumer. Retailinginvolves selling many different products and services, either from a store location or in directselling through vending machines and in-home presentations, mail order, and so on.First retailers in India include BATA, Pantaloon, Bombay Dyeing, Spencer‟s The case highlightsthe emergence and evolution of PRIL from a small garment manufacturer to the retailer in Indiaby the early 21st century. It examines the evolution and growth of PRIL until the mid 1990s, andthen traces the rationale behind the launch of its first retail format Pantaloons, a familydepartmental store. It discusses in detail the marketing and promotional efforts undertaken byPRIL for Pantaloons, which made the store one of the most successful lifestyle stores in India inthe early 2000s. The case then examines the reasons for PRILs entry into discount store and foodstore businesses through Big Bazaars and Food Bazaars and discusses in detail the strategies andmarketing efforts put in place by PRIL to promote these formats. Recent trends in the Indianretailing industry, changing requirements and preferences of consumers, Understanding changingconsumer lifestyles. 13
  • 14. BackgroundThe organized retail industry in India did not evolve till the early 1990s. Until then, the industrywas dominated by the un-organized sector. It was a sellers market, with a limited number ofbrands, and little choice available to customers Lack of trained manpower, tax laws andgovernment regulations all discouraged the growth of organized retailing in India during thatperiod. Lack of consumer awareness and restrictions over entry of foreign players into the sectoralso contributed to the delay in the growth of organized retailing. This allowed the un-organizedsector to rule the Indian retailing industry. It was during this time that the foundation of PRILwas laid by Biyani. Biyani was a commerce graduate with a post-graduate diploma in marketing.After spending five years in managing his family business of trading textile and yarn, he startedwith apparel manufacturing in the mid-1980s. Is Kishor Biyani a retailer or a fund manager?That question might well be asked of him in the not too distant future. Over the last few months,Future Capital Holdings (FCH), led by CEO Sameer Sain, has stitched together a fully integratedfinancial services business model. 14
  • 15. Management business in India with almost $830 million in assets. Now, it has big plans ininsurance, retail lending and forex services. “Whether we have a consumer who wants toleverage future income to realise his aspirations today, or wants to save and invest, or buyprotection for his family, we want to be a part of it,” says Sain. He believes that in 5-7 years,FCH‟s bottom line will be bigger than the retail business! In the insurance business, the FutureGroup has managed to wrest a 74 per cent stake in a joint venture by investing just Rs 100 crore(its JV partner invested the same amount for a 26 per cent stake). “Italian Assicurazioni Generali,ranked 21 on the Fortune 500 list, is a good fit for us because they derive almost 17 per cent oftheir sales from mall assurance. They have also partnered another retailer in the Philippines,”says Sain. Biyani estimates that with just a 1 per cent footfall conversion rate, the insurancebusiness would have over 2 million customers. That would earn him huge fees on distributionand catapult the company to amongst the largest private insurance players by way of number ofpolicies sold. Despite the global economic recession and a consequent slowdown in the Indianeconomy, organized retail continued to make headway although at a slower pace in 2009.Nonetheless, if the current retail landscape is compared with that of 2004, it has undeniablybecome a much larger environment. Retail stalwarts such as Wal-Mart, Tesco and Marks &Spencer have already made inroads into the Indian retail industry and with multi-billion dollarinvestments. 15
  • 16. Retail Scene in Indiamillion sq.ft. in available mall space by the end of 2007.Food and Grocery retail holds the mostpotential, as almost 99% of it is unorganized. The Omnibus edition of Pantaloon retail papersspans this very happening sector, which not only brings so much joy to the inveterate shoppers interms of retail therapy, but also employment and livelihood to tens of thousands of Indians.India‟s GDP growth rate is a healthy 9% for 2005-06 – and this has had its ripple effect on allindustries – more so the Retail sector, of which only 3% organized until now. The Indian retailindustry accounts for 10% of GDP and 8% of employment. India is being touted as the next bigretail destination with an average three year Compounded annual growth rate of 46.64%.TheIndian economy is poised to take the third position in the world in terms of Purchasing PowerParity by the year 2010.The Indian Retail Market is a Rs. 1,200,000 million market as per theImages India Retail Report 2007.Organized Retail market is zooming ahead with an annualgrowth rate of 30%.The Retail sector is vibrant with growth happening in all related areas – bethey malls, hypermarkets or single brand luxury stores, they have dotted the commerciallandscape of the metros, and have even percolated to the Tier II and Tier III cities. Malls are fastbecoming sought-after entertainment hotspots. From a situation where There were no mallsabout a decade ago, the country will have over 300 malls translating to over 100 Number of bigplayers is entering the field of organized food retail like Reliance, AdityaBirla Group and theBharti Group, which has tied up with the world‟s largest retailer –Wal-Mart. All these majorplayers are expected to show an annual growth rate of 25 – 30%. 16
  • 17. The Retail boom has also led to the opening of a large number of single brand outletsacross thecountry. With big brands and bigger outlets across all segments, from Appareland Footwear,Watches, Books and Stationary to Jewelry and Consumer Durables, the sweep is indeed broad.in to sample the depth and breadth of this amazing sector. Types of Retail verticals operating inIndia.Food and BeverageHealth and BeautyClothing and FootwearHome Furniture and Household GoodsConsumer Durable GoodsLeisure and Personal GoodEconomic slowdown serves as reality check for retailersThe global economic crisis and its impact on India resulted in a slowdown of the Indian economyin 2009. This caused consumers to tighten their purses, and the availability of financial supportfor retail expansion dried up. This put a halt to the unprecedented expansion seen over the reviewperiod. Lower consumer confidence resulting from the recession, as well as job losses, resultedin fewer visits to retail stores, and consequently sales plummeted for major retailers. Withconsumers becoming highly discretionary, spending on non-essential items such as lifestylegoods was highly impacted, making it one of the worst performing categories. 17
  • 18. Retailers with financial backing weather the stormCredit from banks and other lenders has been difficult to obtain in the current environment, andretailers have suffered severely as a result. Some retailers are unable to pay rental fees becauseall lines of credit have dried up. In such a tough operating environment, retailers under theumbrella of a diversified holding company with access to internal funds are faring better thanother players. For example, Reliance Retail and Aditya Birla Retail emerged relatively unscathedcompared with smaller players such as Subhiksha and Vishal Retail.Internet retailing grows at phenomenal paceDue to the increased penetration of credit cards and availability of computing facilities to a widerpopulation, Internet retailing is witnessing stellar growth. Internet retailers offer products atdiscounted prices to consumers compared with store-based retailers and bargain-huntingconsumers are latching on to this fact. This has become even more pronounced in light of theeconomic downturn as consumers have become increasingly sensitive to price.India’s attractiveness stands over long termIndia‟s burgeoning middle class offers considerable promise for organized retailing, which isexpected to remain attractive to organized retailers over the long term. Liberalization andfinancial reforms would remain a key factor in the expansion of the organized retailenvironment. Currently, foreign direct investment is not allowed in single brand retail, and itproved a major hurdle in IDEA‟s billion-dollar plans in mid-2009 to enter the organized retailenvironment. However, with a stable government in place at the centre. 18
  • 19. Impact Of Recession On The Indian Retail MarketThe retail market in India is facing slowdown with the ongoing financial crisis happening acrossthe world markets. Since the markets always have internally linked with each other, the impactof the crisis is generally shared among all. The following circumstances are creating unwelcomeinterruptions to the Indian retail industry. The industry hopes for the best alternations toovercome the acrimonious situations. Markets in recession worldwide and India too: The currentmeltdown in the world markets is shaking the globe today. Not even a single country seems to beoff the hook. The high level of inflation has been a wet blanket for the global markets. The rootsof the world markets are nearly pulled away with the heavy downfall of the American financialgiants. Amongst many countries, India too not exempted from the impact of world financialcrisis. All this is leading to a temporary recess for the markets from a regular busy schedule.However,These fluctuations are not new for global market. For the decades long, markets, acrossthe world, have been witnessing such ups and downs. But the ultimately fact is that the marketgrowth rate is always constantly high when comparing to such downfalls Economic slowdownThe Financial crisis is adding to the pressure on global economies. The International MonetaryFund (IMF) now sees the world entering a major slowdown. 19
  • 20. Brief history of organization 20
  • 21. Pantaloon Retail (India) Limited, is India‟s leading retailer that operates multiple retail formatsin both the value and lifestyle segment of the Indian consumer market. Headquartered inMumbai (Bombay), the company operates over 16 million square feet of retail space, has over1000 stores across 73 cities in India and employs over 30,000 people. The company‟s leadingformats include Pantaloons, a chain of fashion outlets, Big Bazaar, a uniquely Indianhypermarket chain, Food Bazaar, a supermarket chain, blends the look, touch and feel of Indianbazaars with aspects of modern retail like choice, convenience and quality and Central, a chainof seamless destination malls. Some of its other formats include Brand Factory, Blue Sky, all,Top 10 and Star and Sitar. The company also operates an online portal, futurebazaar.com.Future Value Retail Limited is a wholly owned subsidiary of Pantaloon Retail (India)Limited. This entity has been created keeping in mind the growth and the current size of thecompany‟s value retail business, led by its format divisions, Big Bazaar and Food Bazaar.The company operates 120 Big Bazaar stores, 170 Food Bazaar stores, among other formats, inover 70 cities across the country, covering an operational retail space of over 6 million squarefeet. As a focussed entity driving the growth of the groups value retail business, Future ValueRetail Limited will continue to deliver more value to its customers, supply partners, stakeholdersand communities across the country and shape the growth of modern retail in India. 21
  • 22. A subsidiary company, Home Solutions Retail (India) Limited, operates Home Town, a large-format home solutions store, Collection i, selling home furniture products and ezone focused oncatering to the consumer electronics segment. Pantaloon Retail is the flagship company of FutureGroup, a business group catering to the entire Indian consumption space. Subsequently, withevolution of retail industry in India and change in consumer aspirations, Group/Companydiversified Pantaloon portfolio of offerings to include other retail goods. Currently,Group/Company sell readymade apparels and a wide range of household merchandise and otherconsumer goods such as footwear, toys, watches, toiletries, grocery items, sports items, crockery,gift and novelties. It began its retailing operations in India way back in 1987. Currently, itmanufactures and sells ready-made garments through its own retail outlets and two discountingstores. Group follows the concept of value retail in India. In other words, Pantaloon businessapproach is to sell quality goods at reasonable prices by either manufacturing ourselves ordirectly procuring from manufacturers (primarily from small and medium size vendors. 22
  • 23. Future GroupFuture Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one of India‟s leadingbusiness houses with multiple businesses spanning across the consumption space. While retailforms the core business activity of Future Group, group subsidiaries are present in consumerfinance, capital, insurance, leisure and entertainment, brand development, retail real estatedevelopment, retail media and logistics. Led by its flagship enterprise, Pantaloon Retail, thegroup operates over 16 million square feet of retail space in 73 cities and towns and 65 rurallocations across India. Headquartered in Mumbai (Bombay), Pantaloon Retail employs around30,000 people and is listed on the Indian stock exchanges. The company follows a multi-formatretail strategy that captures almost the entire consumption basket of Indian customers. In thelifestyle segment, the group operates Pantaloons, a fashion retail chain and Central, a chain ofseamless malls. In the value segment, its marquee brand, Big Bazaar is a hypermarket format thatcombines the look, touch and feel of Indian bazaars with the choice and convenience of modernretail The group‟s specialty retail formats include supermarket chain - Food Bazaar, sportswearretailer - Planet Sports, electronics retailer - eZone, home improvement chain -Home Town andrural retail chain - Aadhaar, among others. It also operates popular shopping portal. www.futurebazaar.com. 23
  • 24. Future Group believes in developing strong insights on Indian consumers and buildingbusinesses based on Indian ideas, as espoused in the group‟s core value of „Indianness.‟ Thegroup‟s corporate credo is, „Rewrite rules, Retain values.‟ Company Background – PantaloonRetail India Founded in 1987, by Mr. Kishore Biyani, Pantaloon Retail in India‟s leading RetailCompany. It is the flagship company of the future group. Starting its 1st outlet in1997,Pantaloons in Kolkata, it currently has over 4 mm sq. ft. of area under business. Thecompany operates under multiple formats – hypermarket, apparel stores, specialty stores undervarious brands including Big Bazaar, Pantaloon, Food Bazaar, Collection, E Zone,etc. Thecompany also operates an online portal, futurebazaar.com.Pantaloon Retail (India) Limited istoday recognized as one of the pioneers in the business of organized retailing in the country witha turnover of over Rs.2,884.43millions for fiscal 2006, as opposed to a turnover of Rs.1,463.12million for fiscal 2005and Rs.881.04 million for fiscal 2004. During the same period Pantaloonprofit after tax was Rs.124.75 million, Rs.30.20 million and Rs.3.82 million, respectively. As aresult, Pantaloon sales increased between fiscal 2004 and fiscal 2006 at a CAGR of 80.94% andPantaloon profit after tax increased between fiscal 2004 and fiscal 2006 at a CAGR of471.44%.Pantaloon Retail is one of the leading retail houses in India. As of November 15,2006,Group/Company operated 46 retail stores, including three stores which are operated byPantaloon franchises. These 46 stores are spread over about 1,113,000 square feet and arelocated in 17 states across India. In efforts to strengthen Pantaloon supply chain,Group/Company has set up seven regional distribution centers and an apparelmanufacturingplant. 24
  • 25. The company is headquartered in Mumbai with zonal offices at Kolkata, Bangalore, andGurgaon(Delhi). It has 4 kinds of stores; Pantaloon stores, Central Malls, ALL Stores, Fashion Stationsand Mela Store. In the Value segment, Group/Company cater to themasses through PantaloonBig Bazaar, Food Bazaar outlets and Gold Bazaar Stores withover 6.5 lakh sq. ft. retail spaceacross Kolkata, Mumbai, Thane, Pune, Hyderabad, Bangalore, Nagpur, Ahmadabad, Kanpur,Chennai and Gurgaon (Delhi).. Group/Company endeavor to facilitate one-stop-shopconvenience for Pantaloon customers and to cater to the needs of the Group/Company believesthis concept as helped us grow to Pantaloon current size within a short timeframe of four years. 25
  • 26. Management of the CompanyPantaloon Retail over a period of time has built a strong management team to drive the companyfor its high growth phase. Though, Mr. Kishore Biyani is the face of Pantaloon, the company isnot a one man show and has built a strong second and third line of management, to fulfill itsmassive expansion and growth plans. Though there have been concerns regarding lack of talentin the growing retail sector, the company has the best talent in place to drive each businesscategory.Expansion PlansThe concept of discount store resembles the Wal-Mart strategy. In India and especially in metrocities like Mumbai, Bangalore, Calcutta and Hyderabad, where the population is dense andconsists of a high middle-class population, the concept of discount stores ingraining a lot ofacceptance. The company plans to expand rapidly. The next year it plans to open more stores inMumbai and Delhi at critical locations. It has planned to open three Big Bazaars (discount stores)in „A-class cities‟ like Bangalore. Pantaloon has already bagged substantial retail space inHyderabad (60,000sq. ft.), Kolkata (35,000 sq. ft.) and Bangalore (40,000 sq. ft.).In Mumbai itacquired50,000 sq. ft. area at each of its locations at Lower Parle, Mulund and thewestern suburbs.2.4 Challenges The key challenges facing the company are as follows: Fundraising – The Company acknowledges that expansion plans of the company Cannot be met frominternal resources. This means that the company has to tap external sources to fund expansion.The company has recently allotted shares to promoter‟s Asabi formula price. It plans to borrowheavily to fund its expansion plans. 26
  • 27. CompetitionAlthough there are a few stores operating in this segment such as Giant in Hyderabad, it ismostly international chains such as Wal-Mart and Carrefour that are the better known names asdiscount stores worldwide. Meanwhile, the general retailers in Mumbai are not too pleased aboutthe concept of discount stores.“Group/Company can‟t figure out from where such stores get theirmargins. It must have a feasible revenue model to sustain the venture”. The company is facinglimited competition from the organized retailers but strong competition exists from thedowntown centers unorganized.Pantaloon Competitive StrengthsIt is believed that the following are Pantaloon principal competitive strengths which haveContributed to Pantaloon current position in the retail sector in India: Strong understanding ofthe „value retail‟ segment: Pantaloon business plan involves implementation of the concept of the„value retailing‟, targeting the middle and lower middle income groups, which constitutemajority of the population in India. Group/Company intends to provide quality products atcompetitive prices. Group/Company sells a vast range of merchandise across apparels andaccessories, FMCG products, food products and consumer durables with over 63,000SKUs.Pantaloon emphasis has been to maximize the value that the customers derive in spendingon goods bought in Pantaloon stores. Group/Company endeavor to continuously reducePantaloon costs through variety of measures, such as, in-house production of apparels,procurement of goods directly from the small and medium size vendors and manufacturers,efficient logistics and distribution systems along with customized product mix at Pantaloon 27
  • 28. stores depending on the regional customer behavior and preferences. Central to Pantaloon valueretail strategy is to pass on the benefits of cot reduction measures to Pantaloon customers. Strongand efficient supply chain management: Pantaloon supply chain management involves planning,merchandizing sourcing, standardization, vendor management, production, logistics, qualitycontrol, „pilferage‟ control replacement and replenishment. Pantaloon supply chain managementprovides us flexibility to adapt to changing patterns in consumer behavior and Pantaloon ability.Manufactured by us such as Zapping, Paranoia, Chlorine, Kitten Studio,Famenne, FlourierWomen and Roseau. In fiscal 2006, Pantaloon income from Pantaloon private labels wasRs.483.50 million, which accounts for 16.76% of Pantaloon total sales for fiscal 2006.Group/Company believes that Pantaloon focus on Pantaloon private labels and their recognitionin Pantaloon customer segment enables us to differentiate ourselves from Pantaloon competitors.Group/Company effectively use information technology systems: Group/Company believe thatefficient information technology systems, processes and business applications are essential tohandle retail chain of Pantaloon magnitude. Pantaloon office processes are computerized whichsupport procurement, supply chain logistics, distribution centers management and storeoperations including inventory management and billing. Group/Company is in the process ofimplementing SAP. All Pantaloon stores and distribution centers are connected through acompany-wide. Group/Company has a highly experienced and competent managementTeam: Group/Company has an experienced management team which is committed workforce.Pantaloon management team comprises of talented professionals who are highly experience inthe retail sector. 28
  • 29. Pantaloon strategy:Group/Company intends to pursue the following strategies in order to consolidate Pantaloonposition as one of the leading operators in the „value retail‟ segment in India. Pantaloon growthstrategy is based on:1Increasing Pantaloon penetration in the country by leveraging PantaloonSupply chain, distribution and logistics network.2 Emphasis on backward integration3 Expansion of FMCG4 Procurement from low-cost production centers outside India.5 Increasing customer satisfaction and Pantaloon base of loyal customers.6 Continue to upgrade information technology systems and processes.7 Continue to train employees and seek entrepreneurship from employeesBusiness Analysis of Pantaloon ModelAs Group know &, India is not an integrated homogenous market like other western markets –it‟s a hierarchy of markets catering to people at many different income levels 7tastes. Hence it‟svery important to understand the customer and its needs. Pantaloon has-been able to crack this byBig BazaarShop till you drop! Big Bazaar has democratized shopping in India & is so much more than ahypermarket. There are over 170,000 products under 1 roof that caters to every need of a family,making Big Bazaar India‟s favorite shopping destination. 29
  • 30. Awards & RecognitionIn the month of July 2006 – Big Bazaar won the prestigious „CNBC TV18 AwaazConsumersAward 2006‟ in the retail category, as the most preferred, large, food& grocery store. At ImagesRetail Awards it was adjudges the Best Value Retail Store & Best Retail.Destination of year 2006In Reader‟s Digest Consumer Survey 2006, Bazaar won the prestigious Platinum Trusted BrandAward in the Indian services category Fashion Focus Big Bazaar continues to be a fashion – leddelivery format, with fashion comprising About 40% of its revenues. Big Bazaar Getting BiggerNew categories like consumer electronics, furniture, communication, food & beverages,pharmacies, beauty retail, saloons, books, stationery & music are being added to Big Bazaar.Pioneering the Hypermarket Format It‟s the hypermarket format in the value retail segment ofthe company; its aim is to capture the middle income value focused customer. Product offeringsare mainly general merchandise and apparels. Apparels form 40% of the total revenue, 60%being generalmerchandise.The company has maintained 50% of apparel sales from privatelabels. It is the fastest growing format in the organized retail space. Pantaloon hasaggressiveplans for this format of taking to total number of outlets to 225 by 2010.Currently itsabout 70 outlets. Big Bazaar covers 3-25 mn sq. ft. currently, to increase to 9 mn sq. ft. by2010.Averagesales per sq. ft. at Rs.8500 can generate a sales of Rs.7650 cr, by 2010.ExpectedGross Margin -24%.Expected EBIDTA – 7-9%. This format would face maximum competitiongoing forward as all the major new Entrants have plans to enter into the hypermarket segment. 30
  • 31. Food BazaarThe food and grocery retail format of the company is capturing the middle income value focusedcustomer.FMCG along with dry and wet staples from the main product categories of this format.The format has been will accepted by the Indian women as it has been able to offer scheme anddiscounts on various products because of its economies of scale in operations. The company hasbeen able to offer all the daily needs related to the food and grocery less than one roof. Pantaloonretail plans to expand this format (to smaller towns and cities) more rapidly going forward toachieve further economies of scale. The success of this format has prompted the company to takethis format to smaller towns and cities. Though being a low margins business but higher turnovernature makes it profitable proposition for Pantaloon. In order to maintain its competitiveadvantage in this format, the company needs to invest to improve the back end. Central Thedepartmental format of the company, aims to cater the upper middle incomeconsumers.It‟s beenpositioned as one stop destination for shopping and entertainment. Central has the same growthrate of 40%.In the Central Model the company sub leases its spaces to concessionaries, restaurantand food court managers which assure a fixed rental and a certain percentage of sales, with noinventory carrying on its books, this constitutes 70% of central sales. Currently the company has3 Central Stores (2006 end).Central model is highly scalable and would be successful in othercities where the company. Pantaloon Retail (India) Limited, is India‟s leading retailer thatoperates multiple retail formats in both the value and lifestyle segment of the Indian consumermarket. Headquartered in Mumbai (Bombay), the company operates over 16 million square feetof retail space, has over 1000 stores across 73 cities in India and employs over 30,000 people. 31
  • 32. The company‟s leading formats include Pantaloons, a chain of fashion outlets, Big Bazaar, auniquely Indian hypermarket chain, Food Bazaar, a supermarket chain, blends the look, touchand feel of Indian bazaars with aspects of modern retail like choice, convenience and quality andCentral, a chain of seamless destination malls. Some of its other formats include Brand Factory,Blue Sky, all, Top 10 and Star and Sitar. The company also operates an online portal,futurebazaar.com.Future Value Retail Limited is a wholly owned subsidiary of PantaloonRetail (India) Limited. This entity has been created keeping in mind the growth and the currentsize of the company‟s value retail business, led by its format divisions, Big Bazaar and FoodBazaar. The company operates 120 Big Bazaar stores, 170 Food Bazaar stores, among otherformats, in over 70 cities across the country, covering an operational retail space of over 6million square feet. As a focussed entity driving the growth of the groups value retail business,Future Value Retail Limited will continue to deliver more value to its customers, supply partners,stakeholders and communities across the country and shape the growth of modern retail in India.A subsidiary company, Home Solutions Retail (India) Limited, operates Home Town, a large-format home solutions store, Collection i, selling home furniture products and rezone focused oncatering to the consumer electronics segment. Pantaloon Retail is the flagship company of FutureGroup, a business group catering. 32
  • 33. Future GroupMr. Kishore Biyani, Managing DirectorKishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the GroupMr. Gopikishan Biyani, DirectorGopikishan Biyani is a commerce graduate and has more than twenty years of experience in thetextile business.Mr. Rakesh Biyani, Whole time DirectorRakesh Biyani is a commerce graduate and has been actively involved in category management;retail stores operations, IT and exports. He has been instrumental in the implementation of thevarious new retail formats.Mr. Vijay Biyani, Whole time DirectorVijay Biyani has more than twenty years of experience in manufacturing, textiles and retailindustry and has been actively involved in the financial, audit and corporate governance relatedissues within the company. Mr. Kailash Bhatia, Whole time Director He has over 28 years of valuable experience in the fashion business and has worked with some of the well known companies like Arvin Mills and Weekender. Mr. Vijay Kumar Chopra, Independent Director V.K.Chopra is a fellow member of The Institute of Chartered Accountants of India (ICAI) by profession and is a Certified Associate of Indian Institute of Bankers (CAIIB). His 33
  • 34. banking career spans over 31 years and he has served senior management positions inCentral Bank of India, Oriental Bank of Commerce, SIDBI, Corporation Bank and SEBI.Mr. Shailesh Haribhakti, Independent DirectorShri Shailesh Haribhakti is a Chartered Accountant, Cost Accountant, and a CertifiedInternal Auditor. He is the Deputy Managing Partner of Haribhakti & Co., CharteredAccountants and past president of Indian merchant Chambers. He is on the Board of severalPublic Limited Companies, including Indian Petrochemicals Corporation Ltd., AbujaCement Eastern Ltd. etc. He is on the Board of Company since June 1, 1999.Mr. S Doreswamy, Independent DirectorS. Doreswamy is a former Chairman and Managing Director of Central Bank of India andserves on the board of DSP Merrill Lynch Trustee Co and Limited among others.Dr. D O Koshy, Independent DirectorDr. Darlie Koshy, a PhD from IIT Delhi and rank holder in MBA headed NID (Ministry ofCommerce, GOI) as Director for 2 terms of office prior to which he was the foundingChairperson of Fashion Management at the National Institute of Fashion Technology(Ministry of Textiles, GOI). He is currently the Director General & CEO of ATDC Networkof 58 Institutes / Centers and two premier campuses of Institute of Apparel Managementunder the aegis of AEPC (Sponsored by Ministry of Textiles, GOI). Dr. Koshy received theDelhi IIT Alumni Award for contribution of National Development in 2008. Dr. Darlie 34
  • 35. Koshy was also conferred with the “Star of Italian Solidarity” one of the highest civilianawards of the Government of Italy. Dr. Koshy is the author of three pioneering booksincluding the much acclaimed “Indian Design Edge”.Ms. Bala Deshpande, Independent DirectorBala Deshpande is Independent Director, Pantaloon Retail (India) Ltd. and also serves on theboards of Deccan Aviation, Nagarjuna Construction, Welspun India and Indus LeagueClothing Ltd, among others.Mr. Anil Harish, Independent DirectorAnil Harish is the partner of DM Harish & Co. Associates & Solicitors and an LLM fromUniversity of Miami. He also serves on the board of Mahindra Gesco, Unitech, IndusInd 35
  • 36. Pantaloon Retail (India) LimitedType Public companyIndustry RetailingFounded IndiaHeadquarters MumbaiArea served IndiaKey people Kishore Biyani, (MD & CEO)Products Super centersParent Future GroupWebsite Pantaloon.com 36
  • 37. SWOT analysis 37
  • 38. Pantaloon Retail (India) Ltd. - SWOT AnalysisReport Summary Pantaloon Retail (India) - SWOT Analysis company profile is the essentialsource for top-level company data and information. Pantaloon Retail (India) - SWOT Analysisexamines the companys key business structure and operations, history and products, andProvides summary analysis of its key revenue lines and strategy. Pantaloon Retail (Pantaloon orthe company), a part of the Future Group, operates retail chains. The company operates retailchains Including Pantaloon, a chain of fashion outlets; Big Bazaar, a hypermarket chain; FoodBazaar, a supermarket chain; and Central, aChain of malls. Its business lines also include Depot,Shoe Factory, Brand Factory, Blue Sky, Fashion Station, all, Top 10, bazaar And Star andSitara. The company operates an online portal named futurebazaar.com. The company isheadquartered in Mumbai, India and employs about 25,000 people. The company recordedrevenues of INR34, 685.6 million (approximately $787 million) in the Financial year (FY) endedJune 2007, an increase of 79.4% over 2006. The operating profit of the company was INR1,798.9 million (Approximately $41 million) in FY2007, an increase of 49.6% over 2006. The netprofit was INR355.4 million (approximately $8Million) in FY2007, a decrease of 33.8% over2006.Scope of the Report Provides all the crucial information on Pantaloon Retail (India)required for business and competitor intelligence needs Contains a study of the major internaland external factors affecting Pantaloon Retail (India) in the form of a SWOT analysis as wellAsa breakdown and examination of leading product revenue streams of Pantaloon Retail(India)Data is supplemented with details on Pantaloon Retail (India) history, key executives,business description, locations andReasons to Purchase 38
  • 39. Support sales activities by understanding your customers businesses better Qualify prospectivepartners and suppliers Keep fully up to date on your competitors business structure, strategy andprospects Obtain the most up to date company information available The Pantaloon Retail(India) - SWOT Analysis company profile is the essential source for top-level company data andinformation. Pantaloon Retail (India) - SWOT Analysis examines the company‟s key businessstructure and operations, history and products, and provides summary analysis of its key revenuelines and strategy. Pantaloon Retail (Pantaloon or “the company”), a part of the Future Group,operates retail chains. The company operates retail chains including Pantaloon, a chain offashion outlets; Big Bazaar, a hypermarket chain; Food Bazaar, a supermarket chain; andCentral, a chain of malls. Its business lines also include Depot, Shoe Factory, Brand Factory,Blue Sky, Fashion Station, aLL, Top 10, mBazaar and “Star and Sitara”. The company operatesan online portal named “futurebazaar.com”. The company is headquartered in Mumbai, Indiaand employs about 25,000 people. The company recorded revenues of INR34, 685.6 million(approximately $787 million). 39
  • 40. WITH 5 COMPANY - OWNED BRANDSCOVERING 63 MERCHANDISE CATEGORIESTHE FMCG SPACE, THE COMPANY NOWONE OF THE LARGEST PORTFOLIOS INTHIS SEGMENT. 40
  • 41. Awards 41
  • 42. CNBC Awaaz Consumer Awards 2009Most Preferred Multi Product Chain - Big BazaarMost Preferred Multi Brand Food & Beverage Chain - Big BazaarImages Fashion Forum 2009Most Admired Fashion Group of the Year - Future GroupMost Admired Private Label - Pantaloons, the lifestyle formatCritics Choice for Pioneering Effort in Retail ConceptCreation - CentralCoca-Cola Golden Spoon Awards 2009Most Admired Food & Grocery Retailer of The YearMost Admired Food CourtMost Admired Food ProfessionalIndian Retail Forum Awards 2008Most Admired Retail Company of the year - Future GroupRetail Face of the Year - Kishore BiyaniBest Retailer Of The Year (Hypermarket) - Big BazaarFuture Group was awarded the Most Admired Retail Company of the year by the Indian RetailForum at a glittering ceremony organized in Mumbai. Mr. Kishore Biyani also won Retail Faceof the Year. India Retail Forum (IRF) is a platform for intellectual insights and information 42
  • 43. exchange for the retail business in the Indian subcontinent. The forum presents the business ofretail in the region to a global audience, with the express aim of facilitating understanding aboutand encouraging investment in this massive marketplace. Big Bazaar, the value format of FutureGroup bagged the Best Retailer Of The Year (Hypermarket).The INDIASTAR Award 2008Food Bazaar: Best Packaging Innovation Food Bazaar bagged the INDIASTAR Award for BestPackaging Innovation in India, for its private label brand Fresh And Pure Chakki Atta.INDIASTAR Award is a biennial event which aims to promote and encourage excellence inpackaging design, innovation and technology. The contest was established in 1972 and isconsidered as the most popular and premier event for India‟s packaging fraternity. 43
  • 44. Retail Asia Pacific 500 Top Awards 2008Gold Winner - Top Retailer 2008 Asia Pacific Retail Asia Publishing Pte, the institutor of theseawards, aims to set a platform that appraise raises and recognizes the development and growth ofretailing throughout the Asia Pacific region.Coca-Cola Golden Spoon Awards 2008Most Admired Food & Grocery Retail Visionary of the Year: Kishore BiyaniMost Admired Food & Grocery Retailer of the Year – Supermarkets: Food BazaarMost Admired Food & Grocery Retailer of the Year - Hypermarkets: Big BazaarMost Admired Retailer of the Year - Dynamic Growth in Network Expansion across Food,Beverages & Grocery: Future GroupMost Admired Food & Grocery Retailer of the Year - Consumers Choice: Big Bazaar The Coca-Cola Golden Spoon Awards 2008, were given away for the first time as a culmination of the„Food Forum India 2008‟ – a two day convention, which saw the participation of leading brands,retailers & retail support organizations from across the globe. The awards were presented tohonour enterprise, innovation and achievement in the food retailing business as a benchmark ofexcellence. 44
  • 45. The Reid & Taylor Awards for Retail Excellence 2008Retail Leadership Award: Kishore BiyaniRetail Best Employer of the Year: Future GroupRetailer of The Year: Home Products and Office Improvements: HomeTownThe Reid & Taylor Awards for Retail Excellence are an important feature of the Asia RetailCongress, Asia‟s single most important global platform to promote worldBRAND FACTORYPantaloon‟s game plan with this new format is to raise the bar of customer expectations&experience when it comes to „Brand + Bargain shopping‟. There is a huge market opportunity inthis category where over 70% of the people shopping at Factory outlets are under the age groupof 30 years who want fashion brands at reasonable price.Pantaloon retail is trying to fill in one gap in the apparels, offered through Pantaloons (life style)& big bazaar (value segment) .The Company plans to offer all the majornational & internationalbrands. 45
  • 46. BOARD OFDIRECTORS 46
  • 47. 47
  • 48. WE ARE PROUD TO HAVE BUILT THISORGANIZATION WITH A CULTURE FOCUSEDON CORE VALUES THAT CAN BUILD UPON ITSELF IN A POSITIVE MANNER. THIS HAS ENSURED THAT WE SUSTAIN WHAT IS UNIQUE TO US AS WE GROW.” Kishor biyani 48
  • 49. Mr. SHAILESH HARIBHAKTI Chairman Mr. KISHORE BIYANI Managing Director Mr. GOPIKISHAN BIYANI Whole time Director Mr. RAKESH BIYANI Whole time Director Mr. VIJAY BIYANI Whole time Director(Appointed w.e.f. 26-09-2009) Mr. S. DORESWAMY Director Dr. DARLIE KOSHY Director Mr. ANIL HARISH 49
  • 50. Director Ms. BALA DESHPANDE DirectorMr. VIJAY KUMAR CHOPRA Director COMPANY SECRETARY Mr. DEEPAK TANNA STATUTORY AUDITORS NGS & CO. RISK ADVISORSERNST & YOUNG PVT. LTD 50
  • 51. REGISTERED OFFICE & CORPORATE OFFICE Knowledge House, Shyam Nagar,Off Jogeshwari-Vikhroli Link Road, Jogeshwari (East), Mumbai – 400 060. Tel. No. : + 91 22 6644 2200 Fax No. : + 91 22 6644 2201 190 MILLION + CUSTOMERS 34,000 + SHAREHOLDERS 33,500 + EMPLOYEES 51
  • 52. Pantaloon Retail (India) Limited,It is a large Indian retailer, which is part of the Future Group, and operates multiple retail formatsin both the value and lifestyle segment of the Indian consumer market. Headquartered inMumbai, the company has over 1,000 stores across 71 cities in India and employs over 30,000people, and as of 2010, it was the countrys largest listed retailer by market capitalization andrevenue. With effect from 1 January 2010 the company separated its discount store business,which includes the Big Bazaar hypermarket and the Food Bazaar supermarket businesses, intoFuture Value Retail Ltd., its wholly-owned subsidiary, so that the company may be listedindependently. The company‟s brands include Pantaloons, a chain of fashion outlets, Big Bazaar,a hypermarket chain and Food Bazaar, a supermarket chain. Some of the companys otherregional brands include, Depot, Shoe Factory, 52
  • 53. Brand Factory,Blue Sky, aLL, Top 10 and Star and Sitara. A subsidiary company, Home Solutions Retail(India) Limited, operates Home Town, a large-format home solutions store, Collection sellinghome furniture products and E-Zone focused on catering to the consumer electronics segmentHaving the right real estate in prime locations is the key for a retail chain, availability oversightreal estate would drive the sales, a proper catchments analysis of locations of outlets is needed toincrease the footballs & conversions. Pantaloon in this regard is a way ahead because it haslocked into real estate at prime locations in all the major cities of India. The company is expected30 million sq. feet of prime locations in all the major cities of India. The company is expected 30million sq.feet of real space by 2011 covering 80 cities of India. 11.2 Sourcing of merchandise–Sourcing of merchandise from the right vendor at the right price is an important factor, becauseefficiency in buying would ultimately increase gross margins. Going with competition in majorformats, it would be difficult to improve gross margins.Butcompetition would not be amongstretailers alone but also amongst vendors to supply at the most competitive price. Any retailerwith significant size will be able to improve itssourcing.Pantaloon with its projected scale is ableto source its merchandise from its vendor at reasonable rates. 53
  • 54. KEY RISKSExecution of plans is the biggest riskThe company plans to become 10x its current size in terms of floor area by 2010.Thereare a lotof exogenous factors that could impact the company‟s plans. Delivery of stores is behindschedule by an average of 2 quarters for most companies. As these store deliveries get bunchedup for most of the players towards 2009-2010.There could be further delay in store delivery.Besides, there are multiple clearances to be taken by local& other authorities, which can prove tobe bottleneck. Rising resource cost to put margin pressure The employee cost & property costswill be 2 key pressure points for all retailers. Traditional human resource management methodshave been unable to reduce employee turnover. Likely equity dilution to finance growth Thecompany would need capital in the region of USD 600 mn. For its growth plan UntilFYO9E.TheCompany would need external funds for its growth.9% dilution has already happened. Strain onmanagement bandwidth PRIL is expanding into multiple formats & multiple geographic over thenext few years. Besides, it is investing in various non-retailing businesses. The company couldface management bandwidth shortage in a few years from now. Decision making is quitedecentralized . 54
  • 55. Lines of BusinessThe company is present across several lines of business which have various formats (stores)plywood, The Dollar Store (JV) Fashion - Pantaloons, Central, all, Brand Factory, Blue Sky, Top10, Fashion Station, Big Bazaar, Lee Cooper (JV) General Merchandise - Big Bazaar, ShoeFactory, Navras, Electronics Bazaar, Furniture Bazaar, KBS FAIR PRICE Electronics - ezone,Electronic Bazaar, STAPLES (JV) Home Improvement - Home Town Furniture - Collection i,Furniture Bazaar, Home Bazaar E-tailing (Online Shopping) - www.futurebazaar.com Books &Music – Depot Leisure & Entertainment - Bowling Co., F123 Wellness - Star & Sitara, TutsiTelecom & IT - Gen M, M Bazaar, M-Port, Converge, Future Axiom Consumer Durables -Koryo, Sensei, IPAQ 55
  • 56. Stock InformationListed on: Bombay Stock ExchangeStock Code: BOM: 523574Company TimelineMajor Milestones1987Company incorporated as Manz Wear Private Limited. Launch of Pantaloons trouser, India‟sfirst formal trouser brand.1991Launch of BARE, the Indian jeans brand.1992Initial public offer (IPO) was made in the month of May.1994The Pantaloon Shoppe – exclusive menswear store in franchisee format launched across thenation. The company starts the distribution of branded garments through multi-brand retailoutlets across the nation.1995John Miller – Formal shirt brand launched.1997Company enters modern retail with the launch of the first 8000 square feet store, Pantaloons inKolkata.2001 56
  • 57. Three Big Bazaar stores launched within a span of 22 days in Kolkata, Bangalore andHyderabad.2002Food Bazaar, the supermarket chain is launched.2004Central - India‟s first seamless mall is launched in Bangalore.2005Group moves beyond retail, acquires stakes in Galaxy Entertainment, Indus League Clothing andPlanet Retail Sets up India‟s first real estate investment fund Kshitij to build a chain of shoppingmalls.2006Future Capital Holdings, the company‟s financial is formed to manage over $1.5 billion in realestate, private equity and retail infrastructure funds. Plans forays into retailing of consumerfinance products. Home Town, a home building and improvement products retail chain islaunched along with consumer durables format, Ezone and furniture chain, Furniture Bazaar.Future Group enters into joint venture agreements to launch insurance products with Italianinsurance major, Generali.2007Future Group crosses $1 billion turnover mark. Specialized companies in retail media, logistics,IPR and brand development and retail-led technology services become operational.Pantaloon Retail wins the International Retailer of the Year at US-based National RetailFederation convention in New York and Emerging Retailer of the Year award at the WorldRetail Congress held in Barcelona. 57
  • 58. 2008 Future Capital Holdings becomes the second group company to make a successful Initial Public Offering in the Indian capital markets .Big Bazaar crosses the 100-store mark, marking one of the fastest ever expansion of aImage of shahadara pantaloon 58
  • 59. 59
  • 60. ORGANISATION STRUCTURE Chairman Mr.SHAILESH HARIBHAKTI 60
  • 61. Managing director Mr. Kishor biyani Director Mr. GOPIKISHAN BIYANISAHADARA ORGANIGATION Store manager Deepak mangla 61
  • 62. Department managerSumit verma Team Leader-1 Mr.vinodMr.vinod Team member Management trainee 62
  • 63. Mission, visionAnd Objective 63
  • 64. Rewrite Rules. Retain Values.Group VisionFuture Group shall deliver Everything, Everywhere, Everytime for Every Indian Consumer in themost profitable manner.Group MissionWe share the vision and belief that our customers and stakeholders shall be served only bycreating and executing future scenarios in the consumption space leading to economicdevelopment. We will be the trendsetters in evolving delivery formats, creating retail realty,making consumption affordable for all customer segments – for classes and for masses. We shallinfuse 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.Core ValuesIndianness: confidence in ourselves. Leadership: to be a leader, both in thought and business.Respect & Humility: to respect every individual and be humble in our conduct. Introspection:leading to purposeful thinking. Openness: to be open and receptive to new ideas, knowledge andinformation. Valuing and Nurturing Relationships: to build long term relationships. Simplicity &Positivity: Simplicity and positivity in our thought, business and action. Adaptability: to beflexible and adaptable, to meet challenges. Flow: to respect and understand the universal laws ofnature 64
  • 65. BRAND Future Group Manifesto“Future” – the word which signifies optimism, growth, achievement, strength, beauty, rewardsand perfection. Future encourages us to explore areas yet unexplored, write rules yet unwritten;create new opportunities and new successes. To strive for a glorious future brings to us ourstrength, our ability to learn, unlearn and re-learn, our ability to evolve. We, in Future Group,will not wait for the Future to unfold itself but create future scenarios in the consumer spaceand facilitate consumption because consumption is development. Thereby, we will effect socio-economic development for our customers, employees, shareholders, associates and partners.Our customers will not just get what they need, but also get them where, how and when theyneed. We will not just post satisfactory results, we will write success stories. We will not justoperate efficiently in the Indian economy, we will evolve it. We will not just spot trends, we willset trends by marrying our understanding of the Indian consumer to their needs of tomorrow.It is this understanding that has helped us succeed. And it is this that will help us succeed in theFuture. We shall keep relearning. And in this process, do just one thing. WE Central wasconceived as being more than just a Shopping destination; instead a community space wherepeople from all walk of life come and enjoy with their friends and family in a festive, celebratorySetting. In keeping with this, we made celebrations, something close to Indians‟ hearts, anintegral part of Shopping with us. Beginning this year, we implemented a 52-week Calendar ofevents, to celebrate within Central. This reflects every Indian festival, sporting, lifestyle andleisure events from around the world as well as social causes like Environment Day. We keptGiving our customers a reason to celebrate, anExcuse visiting the store and they kept coming 65
  • 66. backo us. These events have truly helped Central toDifferentiate itself from the competition andhelped us to connect with our customers at an emotional level. Over a decade of experience inretailing has taught us the significance of keeping the excitement at the shop floor alive,irrespective of whether the economy is upon down. Based on the success of this initiative we arerolling out 52-week events and excitement calendars for our other formats as well. In May 2009,Central completed five glorious years. What started as a dream in 2004 to redefine lifestyle?Shopping in India by creating a seamless offering of Shopping, eating and celebration, with the oof our first mall in Bangalore, is now at a stage where Central is among the fastest growinglifestyle retail Chains in the country with 10 stores across 7 cities. In the financial year 2008-09Central opened 2More stores in Indore and Mumbai and added over3, 50,000 square feet of retailspace. The Central in Indore is our biggest store in the country. 66
  • 67. The power of private labels by PantaloonsWhen PepsiCo‟s Frito-Lay decided of boycott Pantaloon‟s Food Bazaar due to differences interms of trade, it was the latter‟s private label which got a boost in shares. Today Tasty Treat, theready-to-eat private label of Food Bazaar, is leading with a 16 percent share among the rest ofthe snack brands. Today Pantaloon Retail has 80 products comprising 350 SKUs with fiveprivate labels. Since PepsiCo‟s rejection, it has promptly approached local manufacturers suchasPrakash Snacks in Indore and Pogo Chips in Kolkata to manufacture its snacks brands.ArvindChaudhary, CEO (Foods Business), Pantaloon Retail, adds, “The purpose of Pantaloon privatelabels is to grow the category and fill the gaps between demand and supply. TodayGroup/Company have upgraded Pantaloon suppliers with better quality systems and processesfor the snacks category, where there was a gap.” The power of private labels is being explored bymost retailers today, as they do not want on be at the mercy of the big manufacturers. At thesame time they also realize that it‟s not going to be easy as it takes time and money to buildprivate labels. Observes K.Radhakrishnan, Chief Executive. Hypermarkets, Reliance Industries,“While it‟s Pantaloon strategic intent is to build private labels, it is more difficult and takeslonger to build these brands. However, in categories such as commodities, it is easier to buildprivate labels. At present, nearly 15 percent of Pantaloon hypermarket brands compriseprivatelabels.” 67
  • 68. The private label product proposition: Quality and price, primarily, relative to branded. Howstrong supplier brands are in the minds of Indian Consumers: Many supplier brands are relativelynew in India, so potentially have less awareness, and therefore, easier for private label productsto supplant supplier brand products. How effectively suppliers innovate: Supplier innovation ifoften what allows them to stay ahead of retailer private label? Innovative suppliers can come outwith new products that retailers haven‟t necessarily thought of. How consolidated Indian retaileventually becomes: The more market share a retailer has, the greater the opportunity to createthe leverage a retailer can put on a supplier. This may be one reason why the UK has greater PLpenetration than the US – UK retail is more consolidated than US retail. Right now. 68
  • 69. Objective of the Report 69
  • 70. The scope and potential of the Indian economy in general, And the domestic consumption sectorin particular is Characterized by someIrreversibletrends.Theseincludeayoungdemographicprofile,increasingconsumerAspirations,ngmiddle class in urban areas and the Growth in the rural economy. However, thelasttwelvemonthswere also characterized With an unprecedented economic turmoil that tested Managerial,strategic and leadership skills across Organizations. The organization rose up to the challenge byTaking significant steps to secure preserve and enhance its economic value creation. One of thekey characteristics of the preceding year‟s wasThe high-cost economy. In the last two years, wesaw lot of new players coming in and that had resulted in a significant Rise in real estate rentals,resource costs and people costs. Most of the competitors who had come in during the high Costseconomy of the past two years aimed at building Scale in a shorter period of time. Luckily for us,we wherein existence for a little longer and growing quite rapidly, Except in the home businesswhere we entered about two Years ago. The year gave us an opportunity to learn a lot, correctmost of the challenges associated with a high cost Economy and build the foundations for asustainable and Profitable growth for the Company. Looking back, we too had probably made afew mistakes earlier. This was the time to question whether we are doing too many things,whether we are having too many Formats, whether each of the formats will achieve certain Sizeand whether we should merge or abandon some. We Started to understand how consumers reactto each and Every format. At the same time, the focus was on how Do we bring down the cost ofoperations per square foot? How do we increase the productivity, how do we increase Theefficiency and how do we increase the margins. Each of these issues were cognizant earlier aswell, but the External economic scenario made us react more swiftly on Each of these. Duringthe year we have worked diligently to bring in productivity and efficiency to increase square 70
  • 71. Foot sales. We are working and have achieved progress in Increasing margins on categories. Wehave also worked Hard in terms of rationalizing all the resources and Allocation of resources tobusinesses which give us better Returns, faster breakeven and faster return on capital. With allthese corrections we will start seeing results happening during the course of the forthcomingyear. Operational Overview the two key strategic objectives that the Company Has pursued aregaining a leadership position in key Geographies and in key categories of consumption. The Topeight cities–Mumbai, Delhi, Bangalore, Kolkata, Hyderabad, Chennai, Pune and Ahmadabad- iswhere the largest share of addressable consumption markets resides. Now, almost 60% of theCompany‟s stores are located in these key eight cities and 25% are in the fast growing tieredcities and the balance in the tier III and smaller towns. The Company intends to continuebuilding its dominance Within the bigger cities for which its roadmap is clear. The Company hasidentified four categories that it will focus on and these categories capture more than 70% of Theconsumers‟ wallet. These categories are – fashion, Food, general merchandise and home, whichincludes Consumer electronics and furniture. Historically, the Company‟s strength has been inFashion category, wherein the organization has not only Has a huge knowledge base but also asignificant stakeOver the entire value chain of the category. During the Year, we were able tosignificantly increase the share of Company-owned brands in the category in both PantaloonsAnd Central. We also introduced the concept of Fashion Big Bazaar both as a standalone conceptas well as within Big Bazaar, in order to improve the share of the category in Total sales. Ourfocus has also been towards ensuring that we are selling a lot more merchandise at full price andalso Increase the share of core fashion merchandize collection that remain on store shelves acrossall seasons. These efforts were simultaneously complimented with number of efforts at thebackend focusing on improving Productivity and efficiency. Better and faster order Fulfillment 71
  • 72. rates between the stores and warehouses, Improved markdown management during, automaticReplenishments and enhanced business intelligence has Resulted in higher availability ofmerchandize within the Store and is leading lead to better customer satisfaction Andproductivity. On the food category, the focus is now on building the Private brand piece ofbusiness in a big way and a lot of Work has happened with a separate team working on thePrivate brands business. The existing Company-owned Brands have already gained around 18 to20% share in every category where it is present in. The Company is also about to launch a newbrand called „Ektaa‟ which will be? Capturing around 40 SKUs to start with. The objective intoreplicate the Company‟s existing strength in fashion Into the food . 72
  • 73. Researchmethodology 73
  • 74. The research methodologies are using only primary data collection. Here primary datacollection is performing through questionnaire A sample size of 50 customers is taken randomly.Questionnaire on customer satisfaction at Pantaloons store was prepared and I got it filled fromcustomers. Based on percentages calculation are done and data is analysed.Data on sale of wholebrand and Wellness categories is being collected and collated in a stoe.store provides data from27th june 2010 to 15th July 2010.Detailed information can be obtained from the store about theperformance of the brands in the particular category from 27 june 2010 to 15th July 2010.Barcharts have been made based on real data obtained from between 27th june 2010 to 15th July2010.Pie charts are made based on data collected and collated from questionnaires filled by 50customers at the Pantaloons store,Shahadara of brand has also been done from 27 june to 15 July2010 contribution of single in total sales of store from 27 june 8th July 20010an specialemployee motivation programme for achievement of targets from 2th to 10 June 2010 run forstore employees .Research process is a series of systematic steps that are followed to solve abusiness problem. It is the framework of the entire plan-of-action. It clearly describes crucialissues like the study„s purpose and objectives, the type of data needed, the technique to be usedfor selecting samples, data collecting method, analyzing it, managing costs and other aspects thatare essential for conducting business research. 74
  • 75. SAMPLING DESIGN:-Sampling is an essential part of the business research process. Sampling is the technique ofselecting a representative part of a population for the purpose of determining the characteristicsof the whole population. During the research, Simple Random Sampling is used to collect datafrom the shoppers Because the target population is small, homogeneous, and the sampling frame.DATA COLLECTION:-Business research generally uses two types of data:Primary data- It is collected directly from the respondents using data collection methodslike survey interviews, questionnaires, measurements, direct observation, or tabulation.Secondary data- It is the data that which already exists and is collected by some otherperson or organization. Sources of secondary data include websites, journals, books, et cThis research uses a judicious mix of primary and secondary data to optimize theQuality of research findings within the allotted time and money. 75
  • 76. Research Process•Research – Descriptive•Data source – Primary Data•Research Approach – Survey Method•Research Instrument – Questionnaire•Questionnaire type – Structured non-disguised•Type of questions – Both Close-ended & Open-ended•Sampling Unit – Individual•Sampling Frame – NCRSampling Procedure – Simple Random sampling to select 5 stores andConvenience for select customer/shoppers.Sample size – 300 customers•Contact Method – Personal•Mode of Collecting Data – The respondents were chosen randomlyand requested to grantinterviews. The questions were then asked in predetermined sequence.•Data Processing – (i) A number of tables was prepared to bring out the main characteristics ofthe collected data. (i) Inferences wiredrawn from the collected data. 76
  • 77. LIMITATION 77
  • 78. Limitations:This project report suffers from following limitations:1. Questionnaires were filled in evenings, when most of the people are in hurryAnd they might not have responded truly to all the questions.2. Our research is limited to only one store of Pantaloon at Shahdara and sampleSize is of 100 respondents so errors may crop in while generalizing the results.3. Those who came out of Pantaloon Store after shopping were chosen for getting thequestionnaires filled but they held bulky polyethylene bags due to which they found it difficult tostand for long and answer the questions.4. Most of the retail outlets mentioned in our questionnaire may or may not beVisited by respondents; this affected their response to various questions. 78
  • 79. DATAANALYSIS 79
  • 80. 1. Are you like to purchase in pantaloon. 60% 50% 40% 30% 20% Series1 10% 0% PENTALOON OTHER 80
  • 81. 2. Whats your buying experience. 40% 30% 20% Series1 10% 0% BEST AVERAGE 81
  • 82. 3. After purchasing what‟s warranty condition. BEST GOOD AVERAGE NON 82
  • 83. 4. How much time you use pantaloon. 2-3 time in week 2-3 time in month more than 3 time in month 83
  • 84. 5. Compaire to other competitor. BEST GOOD AVERAGE NON 84
  • 85. 6. Will you purchase again. definite will probabily will not sure not purchase 85
  • 86. 7. What is the quality of product? best good average non 86
  • 87. RESEARCHFINDINGS 87
  • 88. 1. People were found to be very dissatisfied with the ambience of Pantaloon asCompared to some other outlets but mostly were satisfied.2. Majority of respondents were found complaining about the variety of products,Different sizes not available, footwear, and child section need improvement atPantaloon.3. Ladies complaint about jeweler variety is not there, Traditional wear should haveMore variety and Footwear.4. Location was one of the main reason which attracted people towards PantaloonAs it was situated just in them all and it took less time for majority of respondentsTo reach Pantaloon.5. As Pantaloon deals in discount retailing, it was believed that Pantaloon discountAnd low prices were one of the main attractions for people but people feel that theDiscount is not enough and it should be more.6. Some respondents complaint that there should be sitting space for ladies childAnd old age people and it was worked out during the project itself.7. Some respondents demanded book corner should be there. And there should bestaff and billing counter during sales to handle the huge no. of customers. 88
  • 89. RECOMMENDATIONS AND CONCLUSIONS . 89
  • 90. RecommendationsThis research throws light on various strengths and weaknesses of Pantaloon and can also helpPantaloon to improve on different fronts in order to have an edge over its competitors. Based onthe analysis and findings of my research I would like to give following recommendations:1. Pantaloon needs to improve so that it can accommodate more kinds of Products and alsoprovide space for children coming with their parents to Play and have fun so that for them visitingPantaloon becomes exciting.2. Pantaloon should incorporate more variety of products in its basket so That it provides theconvenience of availability of all things under one roof to its customers. Variety of products shouldspecially be increased in traditional wear for women, Footwear, jewelery, cosmetics and morevarieties in watches. More varieties in sizes in jeans, Shirts.3. Sitting area should be there for children and old people, so that they can Sit while other familymembers doing shopping.4. More computers should be included and number of billing counters Should be increasedespecially during the festive season and sales, so as To speed up the process of billing and avoidlarge queues.5. If possible more attractive discount and offers should be given in order to Attract morecustomers.6. Staff should be trained properly to assist people and to make them Understand the benefits ofgreen card membership, it will strengthen. 90
  • 91. CONCLUSIONThis research report aims to study consumer attitude towards Pantaloon and highlights its strengthsand weaknesses in order that Pantaloon can fight the competition in a better way. ThoughPantaloon captures a different market and is giving competition to big players like Vishal megamart and big bazaar. Retail in India is a booming sector nowadays and Pantaloon should try tobenefit more from it. Recommendations given should be considered by Pantaloon in order toemerge as a winner in long run. 91
  • 92. ANNEXURE 92
  • 93. Questionnaire1. Name……………………………………………2. Age………………………………………………3. Occupation………………………………………4. Address…………………………………………..5. E-mail……………………………………………..6. You like to purchase ina. Pantaloon ( ) b.big bazaar ( ) c.vishal mega mart ( ) d.other7. What is your buying experience?a. Good ( ) b.best ( ) c. average ( ) d.non ( )8. After purchasing what about warranty or repaired servicea. Good ( ) b.best ( ) c. average ( ) d.non ( ) 93
  • 94. 9. How much time you use pantaloon product.A.2to3 time in week ( ) b. 2to3 time in month ( ) c.more than 3 time in month ( )10. Compaire to other competitor.a. Good ( ) b.best ( ) c. average ( ) d.not say11. Will you purchase again.A.definitily will ( ) b.probabily will ( ) not purchase ( ) c.not sure ( )12. Whats quality of product according you .a. Good ( ) b.best ( ) c. average ( ) d.not say13. If you contact to customer care service then whats response.a. Good ( ) b.best ( ) c. average ( ) d.non ( )14.Anysuggestion………………………………………………………………………………………..…………………………………………………………………….……………………………………………………………………………………………………………………… 94
  • 95. BIBLIOGRAPHY 95
  • 96. 1. Principles of marketing By PHILIP KOTLER.2. http://pantaloon.futurebazaar.com/indexPantaloon.jsp.3. http://en.wikipedia.org/wiki/Pantaloon_Retail_India.4. http://business.mapsofindia.com/india-retail-industry/5. http://wikipedia.org/wiki/Retailing_in_India. 96
  • 97. Word of thanksI am very thank full to all the people who help me out to establish this report. Deepak mangla (store manager of pantaloons Sumit verma (department manager ) Deepak raj (team leader) 97
  • 98. 98

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