1. Chapter 1
INTRODUCTION TO RETAIL
Retailing has become an important institution in our modern society. It provides considerable
value to the consumers. It also offers opportunities for rewarding and challenging career to
people. There has been a significant shift in consumer‟s need and technology and it has
resulted in change in retail industry. 25 to 30 years ago modern retail formats and companies
were unknown which has become now the primary factor in retail industry. The key to
successful retailing is offering the right goods and services at the right price, in the right place
and at the right time to insure profits.
Retailing is one of the fastest growingsegments of the economy. As one of the nation‟s
largest employers, the retail industry provides excellent business opportunities.About 12
percent of the approximately750,000 new enterprises launched between2001 and 2002 (the
latest years forwhich data is available) were retail operations.The entrepreneurs behind these
venturesrisk their capital, invest their time andmake a living by offering consumers
somethingthey need or want. You‟ll meet severalof them in this guide and learn howthey
created a niche for themselves.
India 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 sometime,
the share of organized trade in this enormous market is currently very small. It is estimated at
just USD8 billion (Rs 35,000 crore) in 2005, up fromUSD6.25 billion (Rs 28,000 crore) in
2004. This accounts for less than 4 percent of the total retail trade in the countryman
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
2. homogeneous. They comprise many markets within a single country, with significantly
varying cultures and customer preferences across regions.
1.1 Meaning of Retailing
The word retailing has its origins in the French verb „retailer‟ ,which means “to cut up”, and
refers to one of the fundamentalretailing activities which is to buy in larger quantities and sell
insmaller quantities. For example, a convenience store would buytins of beans in units of two
dozen boxes, but sell in single-tinunits. However, a retailer is not the only type of business
entityto 'break bulk'. Wholesalers also buy in larger quantities and sellto their customers in
smaller quantities. It is the type ofcustomer, rather than the activity, that distinguishes a
retailerfrom other distributive traders; the distinction being that aretailer sells to final
consumers, unlike a wholesaler who sells toa retailer or other business organizations. A
generally accepteddefinition of a retailer is 'any establishment engaged in sellingmerchandise
for personal or household consumption andrendering services incidental to the sale of such
Manufacturers make products and sell them to wholesalers, or some times to retailers.
Wholesalers resell products to the retailers and again retailers resell them to customers. Thus,
wholesalers satisfy retailers‟ need whereas retailers direct their efforts to satisfy needs of the
3. 1.2 Functions of Retailers
Retailers enhance the value of the products and services they sell to ultimate consumers and
facilitates the distribution of those products and services for the manufacturers. The important
functions of retailers are given bellow
Inventory holding and
1.3 Economic Significance of Retailing
Retailing has direct influence in our day to day lives. Lifestyle retailing has now become one
of the country‟s largest industries.Some of the top global retailers are Wal- Mart, Metro, K-
Mart, Sears etc. Through merger and acquisition activity, many of these large retailers are
diversifying their format offerings to customers. The majority of the largest global retailers
are involved in the lifestyle and food sectors. While globalization is increasing throughout the
retail world, it has become particularly pronounce for US retailers, Indian government has
been allowed FDI in single as well as multi brand retailing.
1.4Trends in Retail Industry
Retail industry is changing very rapidly. Some of the most important changes are
1. Greater Diversity of Retailers
The growing diversity of retail formats has increased competition in the industry and
also has helped customers to buy merchandise and service from retailer that better
satisfied their needs for the specific purchase occasion. The new types of retailers co-
exist with traditional retailers.
2. Increased Industry Concentration
Through the numberof retail formats have grown, the number of competitors within
each format is increasing. A few national retailers dominate most formats.
4. Since long time, retail has been a local business. But because of globalisation many
competitors are there in the markets and customers are getting better products at a
very less price. And retailers are getting many opportunities in other foreign countries.
4. Use Multiple Channels to Interact Customers
In recent times retailers are using many cannels to reach the customers.
1. The type of merchandise sold
2. The variety and assortment of the merchandise
3. Level of customer service
4. Price of merchandise
1.5 The type of Merchandise Sold
The degree to which retailers compete against each other is based on the similarity of their
merchandise. The variety and assortment of the merchandise they offer and the services they
provide are considered.
1.6Variety and Assortment
Variety refers to the number of merchandise category a retailer offers to its customers.
Assortment is the number of different items in a merchandise category.
1.7Level of Customer Service
Customer service varies with retailer to retailer. Customer expect retailer to provide some
services like accepting cheque payments, providing ample parking space, long shopping
hours etc. Those retailers who cater to service- oriented customers offer customers most of
those services free or some extra charges.
1.8 Price of Merchandise
Typically, department stores have high prices because they have to stocka lot of varieties of
merchandise while discount stores appeal to customers who are favouring lower prices and
are not interested in services or wide range of merchandise, size and colour. The difference
between the retail mix of department and discount stores explains the trade off retailers make
5. between the price and assortment of merchandise they sell and services they offer to the
6. Chapter 2
Research methodology is a way to systematically solve the research problem. In it, step-by-
step Research Methodology is a way to systematically solve the research problem. In it, step-
by-step methods are followed to solve a particular problem. It refers to a search for
knowledge. It can also be defined as a scientific and systematic search for pertinent
information on a specific topic. In fact, research is an art of scientific investigation.
The methodology adopted for the present study was focus discussion, interview and close
observation through in-house study. Since the project is based on action research it was
necessary to build rapport to collect maximum information from the Customers. Hence the
research spent considerable time with the people who reside in city. The main focus was to
do with the assessing the satisfaction level of customer and explore the possibility of more
sound arrangement of disseminating outlook information system.
2.1 Market Research
Market research is the function which likes the consumers, customers & public the
marketer through information which is used to identify & define market opportunities &
problems, generate, refine & evaluate market action; monitor market performances &
improve understanding of marketing as a process.
2.2 TYPES OF MARKET RESEARCH
On the basis of fundamental objectives of the research, market research projects are
classified into two branches:
2.3 EXPLORATORY RESEARCH:
It seeks to discover new relationships. All marketing research projects start with it. This is
a preliminary phase & is absolutely essential in order to obtain a proper definition of
problems at hand. The major emphasis is on the discovery of ideas & insight.
7. Exploratory research looks for hypothesis in well-established fields of study. Hypothesis
usually comes from ideas developed in previous researches or are delivered from theory.
Hypothesis is tentative answer to the question that serves as guide for most of the research
2.4 CONCLUSIVE RESEARCH:
Conclusive research provides information that helps the executive so that he can make a
rational decision. This study has done well while attempting to arrive at a more clear
description of an apparent problem.
2.5 Data Collection
Primary data: Primary data is the new or fresh data collected from the respondents through
direct interview using a pre-structured questionnaire..
Secondary data: Secondary data may be obtained from many sources, including
literature, industry surveys, compilations from computerized databases and information
systems, and computerized or mathematical models of environmental processes.
I collected them by following method –
8. 2.6 STATEMENT OF PROBLEM
As retail is a growing industry in India with a rate of about 13% and very recently FDI is also
allowed in both single and multi-brand retailing to boost the growth further. This will lead to
more number of competitors in the market. As the competition increases, retaining customer
becomes very difficult for any of the firm. Therefore, an effort will be made with this study to
understand customer perception and their satisfaction towards the services provided by the
Pantaloon to its customers. The study also focused on assessing the brand awareness in the
minds of its customers and to identify the shopping experience and level of satisfaction.
2.7NEED FOR THE STUDY
PANTALOON RETAIL (INDIA) LIMITED believes in satisfactory delivery of service
quality to the customer, but due to unknown reasons that the customer satisfaction analyzed
by the company is not up to the mark. The company intends to find out the causes and
remedies for the low customer satisfaction.
2.8OBJECTIVES OF THE STUDY
The following are the objectives of the study to solve the problem.
To understand the customer profile.
To assess the brand awareness of Pantaloon in the minds of the customers.
To identify the competing retail stores for Pantaloon.
To study the shopping experience and the level of satisfaction at Pantaloon store.
To identify the problems faced by the customers at Pantaloon and to suggest suitable
measures to the company.
According to Random and Mory, “Research is a systematize effort to gain new knowledge”.
According to Francis Rummel, “Research is a careful inquiry or examination to discover new
information or relationships and to expand and verify existing knowledge.”
9. Research can be define as “ Logical and systematize application of fundamentals of science
to the general and overall questions of the study, and scientific techniques which provide
precise tools, specific procedures and technical rather than philosophical means for getting
and ordering the data prior to their logical and manipulation.”
The process used to collect information and data for the purpose of making business
decisions. The terminology may include publication research interviews, surveys and other
research techniques, and could include both present and historical information.
2.10 Basically any Research Work Proceeds as:
10. 2.11SOURCES OF DATA
The Primary Data is collected through questionnaire survey to customers.
Information is gathered from company profile, website
2.12 SCOPE OF THE STUDY
The scope of this study is limited to the customer satisfaction, products of others in
comparison to Pantaloon and customer expectations from Pantaloon and the impact of sales
strategies adopted by Pantaloon to strengthen the customer relationship. Since it is one of the
leading players of retail fashion outlet, the future researchers can focus their studies on
different angles of Pantaloon and its products such as marketing share, pricing strategies,
market segmentation and so on.
2.13 QUESTIONNAIRE DESIGN
Questionnaire Design is prepared on the basis of the following parameters.
Information is gathering through questionnaires from customers of Bangalore.
Sample size = 100
For data analysis statistical tools used are simple percentage.
11. 2.14LIMITATION OF THE STUDY:
The results of the study cannot to be generalized as the data collected for the study
limited to Bangalore city only.
Since the data will be collected from the respondents through questionnaire, the
information may be biased depending upon the opinions of the respondents at that
point of time.
Time is the biggest constraint because the study period is just six months.
Respondent attitude may change time to time
Review of literature
Rees (1992) in his study revealed that factors influencing the consumer‟s choice of
food are complex, and must be added to variables such as flavour, texture, appearance,
advertising etc. Demographic and household role changes and the introduction of
microwave ovens have produced changes in eating habits, a reduction in traditional
cooking, fragmentation of family means and an increase in „snacking‟. The vigorous sale
of chilled and other prepared foods is related to the large numbers of working wives and
single people, who require and value convenience. Developments in retailing with
concentration of 80% of food sales in supermarkets, is also important. Consumers are
responding to messages about safety and healthy eating they are concerned about the way
in which food is produced and want safe, „natural‟, high quality food at an appropriate
Kainth (1994) in his study on “Consumption of Apples: Consumer‟s Towards View
Pattern and Determinants” used ranking techniques to understand consumer preference for
apples in different income groups. He also used linear multi-variate regression to analyze the
factors affecting apple consumption.
12. Ragavan (1994) reported that quality, regular availability, price, accuracy in weighing
and billing, range of vegetables and accessibility as the factors in the order of importance
which had influenced purchase of vegetables by respondents from modern retail outlet.
Sundar (1997) study revealed that the Grocery Department of Saravana Bava
Cooperative Supermarket, Cuddalore was enjoying favourable images of consumers in the
attributes such as equality of price, behaviour of sales persons, moving space, location,
correctness of weight, packaging of goods, number of sales persons and convenient shopping
hours. At the same time, the image is weak in the attributes such as quality of goods,
availability of range of products, variety of goods, acceptance of returns, credit facility, door
delivery and in sales promotional measures.
Devlin et al. (2003) conducted a study on means-end chain analysis of the food sector
and explored the extent to which the findings made can be used to inform the retail
positioning strategy of food retailers in the UK, using data obtained from 15 respondents.
Using means-end theory as the theoretical underpinning of the study, the study employed
laddering methodology to identify the linkages between food retail store attributes and
personal values. The findings of the study presented a more personally relevant
representation of consumer's perceptual orientations towards food retail store image. At the
attribute level "good quality products", "good reputation", "store has additional services", and
"value for money", are most sought after. These were linked to the consequences "feel good"
and to "save time". Overall, the findings support previous value driven research, concluding
that "happiness" and "quality of life" were the most strived for personal values.
Cavard and Moreau (2003) undertook a survey among 2000 French consumers in
2002 to study their behaviour regarding the purchase of fruit and vegetables. It first appraised
purchasing frequency; the weekly purchase being prevalent. Regarding places of purchase,
supermarkets come first, followed closely by markets. In terms of modes of purchase, the self
13. service with assisted weighing was the preferred option. Consumer expectations concern
better control of labelling and quality on the selling place, with an indication of consumed-by
date. The main consumers, the old-aged people, appear, however, to be less concerned with
this additional information.
Michels et al. (2003) study revealed that almost all food retailers in Germany sold
organic products, fresh ones being estimated at 45% of the turnover. Surveys indicated that
49.7% of households bought fresh products, principally vegetables, at least once between
April and December 2002. Vegetables, fruit, potatoes, and eggs were the main categories on
offer in supermarket-type outlets; specialist whole food shops and producers' direct marketing
enterprises carried a wider range of produce including meat. Some 77% of turnover by the
larger retailers was from sales to regular purchasers. Average frequency of purchasing,
however, was not over 5 times in 9 months. Younger customers tended to buy from specialist
outlets rather than supermarkets.
Manivannan and Raghunanthan (2004) observed that there was no close relationship
between the age, sex, education, occupation and extend of utilizing departmental stores where
as income alone had shown a close relationship with the extent of utilizing departmental store
at 1 % significant level, which shows that there was a close relationship between income and
extent of utilizing department stores.
Kinsey et al. (2004) in his study identified seven forces that have converged to create
a demand-driven food system in the USA are (1) more diverse consumer characteristics and
tastes; (2) the universal product code (bar code) and all the information technology that
followed; (3) Wal-Mart (biggest food retailer in the world), the early adopter of information
technology and the mother of efficient supply chain management; (4) efficient consumer
response, a defensive response to Wal-Mart‟s expansion; (5) Concentration of retail
ownerships; (6) global concentration of food processing and manufacturing; and (7) new
14. business models.
Haese et al. (2005) study revealed that since late 1990s, the number of supermarkets
in South Africa has been steadily growing. Due to a more effective and efficient management
and procurement system, the supermarkets can benefit from economics of scale and sell food
at a relative low price. In their study they presented a case study of two villages in the
Transkei area of South Africa. In these poor rural communities, the majority of households
now buy their main food items from supermarkets rather than from local shops and farmers.
While presenting an important step towards livelihood development and food security, these
supermarkets also form a strong competitor for local agricultural sales. The supermarkets
provide many food items at lower prices. With an increase in income, the households look for
variety and exoticism in their food products, and will most likely find this in the
supermarkets, rather than the local stores.
15. Chapter 3
3.1 INDUSTRY PROFILE
Retailing in India is one of the pillars of its economy and accounts for 14 to 15 percent of its
GDP. The Indian retail market is estimated to be US$ 450billion and one of the top five retail
markets in the world by economic value. India is one of the fastest growing retail markets in
the world, with 1.2 billion people.
India's retailing industry is essentially owner manned small shops. In 2010, larger format
convenience stores and supermarkets accounted for about 4 percent of the industry, and these
were present only in large urban centres. India's retail and logistics industry employs about 40
million Indians (3.3% of Indian population).
Until 2011, Indian central government denied foreign direct investment (FDI) in multi-brand
retail, forbidding foreign groups from any ownership in supermarkets, convenience stores or
any retail outlets. Even single-brand retail was limited to 51% ownership and a bureaucratic
In November 2011, India's central government announced retail reforms for both multi-brand
stores and single-brand stores. These market reforms paved the way for retail innovation and
competition with multi-brand retailers such as Wal-mart, Carrefour and Tesco, as well single
brand majors such as IKEA, Nike, and Apple. The announcement sparked intense activism,
both in opposition and in support of the reforms. In December 2011, under pressure from the
opposition, Indian government placed the retail reforms on hold till it reaches a consensus.
In January 2012, India approved reforms for single-brand stores welcoming anyone in the
world to innovate in Indian retail market with 100% ownership, but imposed the requirement
that the single brand retailer source 30 percent of its goods from India. Indian government
continues the hold on retail reforms for multi-brand stores. IKEA announced in January that
it is putting on hold its plan to open stores in India because of the 30 percent
requirement. Fitch believes that the 30 percent requirement is likely to significantly delay if
not prevent most single brand majors from Europe, USA and Japan from opening stores and
creating associated jobs in India.
16. Organised retailing, in India, refers to trading activities undertaken by licensed retailers, that
is, those who are registered for sales tax, income tax, etc. These include the publicly-
traded supermarkets, corporate-backed hypermarkets and retail chains, and also the privately
owned large retail businesses.
Unorganized retailing, on the other hand, refers to the traditional formats of low-cost
retailing, for example, the local mom and pop store, owner manned general stores, paan/beedi
shops, convenience stores, hand cart and pavement vendors, etc.
Organised retailing was absent in most rural and small towns of India in 2010. Supermarkets
and similar organized retail accounted for just 4% of the market.
India's retail and logistics industry, organized and unorganized in combination, employs
about 40 million Indians (3.3% of Indian population). The typical Indian retail shops are very
small. Over 14 million outlets operate in the country and only 4% of them being larger than
500 sq ft (46 m2
) in size. India has about 11 shop outlets for every 1000 people. Vast majority
of the unorganized retail shops in India employ family members, do not have the scale to
procure or transport products at high volume wholesale level, have limited to no quality
control or fake-versus-authentic product screening technology and have no training on safe
and hygienic storage, packaging or logistics. The unorganized retail shops source their
products from a chain of middlemen who mark up the product as it moves from farmer or
producer to the consumer. The unorganized retail shops typically offer no after-sales support
or service. Finally, most transactions at unorganized retail shops are done with cash, with all
sales being final.
3.1.2 Growth over 1997-2010
India in 1997 allowed foreign direct investment (FDI) in cash and carry wholesale. Then, it
required government approval. The approval requirement was relaxed, and automatic
permission was granted in 2006. Between 2000 and 2010, Indian retail attracted about $1.8
billion in foreign direct investment, representing a very small 1.5% of total investment flow
Single brand retailing attracted 94 proposals between 2006 and 2010, of which 57 were
approved and implemented. For a country of 1.2 billion people, this is a very small number.
Some claim one of the primary restraints inhibiting better participation was that India
17. required single brand retailers to limit their ownership in Indian outlets to 51%. China in
contrast allows 100% ownership by foreign companies in both single brand and multi-brand
Indian retail has experienced limited growth, and its spoilage of food harvest is amongst the
highest in the world, because of very limited integrated cold-chain and other infrastructure.
India has only 5386 stand-alone cold storages, having a total capacity of 23.6 million metric
tons. However, 80 percent of this storage is used only for potatoes. The remaining
infrastructure capacity is less than 1% of the annual farm output of India and grossly
inadequate during peak harvest seasons. This leads to about 30% losses in certain perishable
agricultural output in India, on average, every year.
Until 2010, intermediaries and middlemen in India have dominated the value chain. Due to a
number of intermediaries involved in the traditional Indian retail chain, norms are flouted and
pricing lacks transparency. Small Indian farmers realize only 1/3rd of the total price paid by
the final Indian consumer, as against 2/3rd by farmers in nations with a higher share of
organized retail.The 60%+ margins for middlemen and traditional retail shops have limited
growth and prevented innovation in Indian retail industry.
The Retail Business in India is currently at the point of inflection. As of 2008, rapid changes
with investments to the tune of US $ 25 billion were being planned by several Indian
and multinational companies in the next 5 years. It is a huge industry in terms of size and
according to India Brand Equity Foundation (IBEF), it is valued at about US$ 395.96 billion.
Organised retail is expected to garner about 16-18 percent of the total retail market (US $ 65-
75 billion) in the next 5 years.
India has topped the A.T. Kearney‟s annual Global Retail Development Index (GRDI) for the
third consecutive year, maintaining its position as the most attractive market for retail
investment. The Indian economy has registered a growth of 8% for 2007. The predictions for
2008 were 7.9%. The enormous growth of the retail industry has created a huge demand for
real estate. Property developers are creating retail real estate at an aggressive pace and by
2010, 300 malls are estimated to be operational in the country.
18. 3.1.3 Growth after 2011
Before 2011, India had prevented innovation and organized competition in its consumer retail
industry. Several studies claim that the lack of infrastructure and competitive retail industry is
a key cause of India's persistently high inflation. Furthermore, because of unorganized retail,
in a nation where malnutrition remains a serious problem, food waste is rife. Well over 30%
of food staples and perishable goods produced in India spoils because poor infrastructure and
small retail outlets prevent hygienic storage and movement of the goods from the farmer to
One report estimates the 2011 Indian retail market as generating sales of about $470 billion a
year, of which a miniscule $27 billion comes from organized retail such as supermarkets,
chain stores with centralized operations and shops in malls. The opening of retail industry to
free market competition, some claim will enable rapid growth in retail sector of Indian
economy. Others believe the growth of Indian retail industry will take time, with organized
retail possibly needing a decade to grow to a 25% share.A 25% market share, given the
expected growth of Indian retail industry through 2021, is estimated to be over $250 billion a
year: a revenue equal to the 2009 revenue share from Japan for the world's 250 largest
The Economist forecasts that Indian retail will nearly double in economic value, expanding
by about $400 billion by 2020.The projected increase alone is equivalent to the current retail
market size of France.
In 2011, food accounted for 70% of Indian retail, but was under-represented by organized
retail. A.T. Kearney estimates India's organized retail had a 31% share in clothing and
apparel, while the home supplies retail was growing between 20% to 30% per year. These
data correspond to retail prospects prior to November announcement of the retail reform.
Major Indian retailers
REI AGRO LTD Retail: 6TEN and 6TEN kirana stores
Future Groups-Formats: Big Bazaar, Food Bazaar, Pantaloons, Central, Fashion Station,
Brand Factory, Depot, aLL, E-Zone etc.
Raymond Ltd.: Textiles, The Raymond Shop, Park Avenue, Park Avenue Woman, Parx,
Colourplus, Neck Ties & More, Shirts & More etc.
19. Fabindia: Textiles, Home furnishings, handloom apparel, jewellery
The Tata Group-Formats: Westside, Star India Bazaar, Steeljunction, Landmark, Titan
Industries with World of Titans showrooms, Tanishq outlets, Croma.
Reliance Retail-Formats: Reliance MART, Reliance SUPER, Reliance FRESH, Reliance
Footprint, Reliance Living, Reliance Digital, Reliance Jewellery, Reliance Trends,
Reliance Autozone, iStore
Reliance ADAG Retail-Format: Reliance World
K Raheja Corp Group-Formats: Shoppers Stop, Crossword, Hyper City, Inorbit Mall
3.1.4 Government Initiatives
Finally paving way for foreign retailers like Wal-Mart, Tesco and Carrefour to open
independent retail stores in India, the Government has initiated steps towards allowing 51 per
cent FDI in multi-brand retail and raising FDI limit in single brand retail from 51 per cent to
100 per cent.
The BMI India Retail Report for the first quarter of 2012 released forecasts that the total
retail sales will grow from US$ 422.09 billion in 2011 to US$ 825.46 billion by 2015. The
report highlights strong underlying economic growth, population expansion, increasing
disposable income and rapid emergence of organised retail infrastructure as major factors
behind the forecast growth.
The report further predicts that sales through mass grocery retail (MGR) outlets will increase
by 219 per cent to reach US$ 28.14 billion by 2015 while automotive sales would swell by
almost 44.8 per cent from 3.6 million units in 2011 to 5.21 million units in 2015. Consumer
electronic sales are estimated at US$ 29.44 billion in 2011, with over-the-counter (OTC)
pharmaceutical sales at US$ 3.03 billion.
On the similar lines, global consultancy firm PricewaterhouseCoopers expects Indian retail
sector to be worth US$ 900 by 2014 in its report „Strong and Steady 2011'.
20. Brief About Indian Retail Industry
India Continues to be an Attractive Proposition for Retail
India is set to become a US$ 450 billion market by 2015
Current share of organized retail is estimated to be 4-5% i.e US$18-20 billion
It is expected to expand to 14-18% by 2015 i.e US$ 75 billion .
India is at the brink of a Creative Economy driven by speed and imagination
Shopping basket of average Indian ranges from US$7-10 lower than international
average is expected to increase
India is one of the youngest consumer markets in the world. Over 50% of the
population is below the age of 25 years
India‟s working population to be 68% in FY2020 from 63% in FY2008
Self employed people form a majority of consumers in India (organized sector
accounts for less than 10% of jobs)
Segments in the Indian Retail Industry
21. Table 3.1
3.2.1 BACKGROUND AND INCEPTION OF COMPANY
The Organized retail industry in India did not evolve till the early 1990s. Until then, the
industry was dominated by the un-organized sector. It was a seller market, with a limited
number of brands, and little choice available to customers. Lack of trained manpower, tax
laws and government regulations all discouraged the growth of organized retailing in India
during that period. Lack of consumer awareness and restrictions over entry of foreign players
into the sector also contributed to the delay in the growth of organized retailing. This allowed
the un-organized sector to rule the Indian retailing industry. It was during this time that the
foundation of PRIL was laid by Biyani.
The history of PRIL can be traced to the mid -1980s, when Biyani, a commerce graduate quit
his family business of trading textiles and yarn to start manufacturing apparels. In 1987, PRIL
was incorporated as Manz Wear Pvt Ltd and manufactured readymade trousers under the
„Pantaloon‟ brand. On September 20,1991 , Manz Wear Pvt Ltd, went public and in 1992, the
name was changed to Pantaloon Fashions (India) Limited (PFIL). At that time , the company
was distributing its garments across India through multi-brand garments stores.
1998 2000 2002 2004 2006 2008 2010 2012
India's Total Retail Size (in billions Rs)
22. In 1992, the company inaugurated its first exclusive men‟s store called Pantaloons Shoppe
and by 1995, the number of stores had grown to 70, with most of them being franchisee
outlets . Biyani felt that the best way to realize the potential of the retail sector was to launch
departmental stores owned and managed by the company.
In august 1997, the first departmental store called Pantaloons was opened in the city of
Kolkata with an investment of Rs 0.7 million. Later the investment in this store was raised to
Rs 50 million and Rs 0.4 million was spent on advertising it, an unheard sum for a retailer to
spend on advertising at that time. The store was a success and recorded revenues of Rs 100
million within the first year of operations. It was the first retail store in India that marketed
apparel for the entire family, unlike other stores, which catered to a single market segment
such as men, women, or kids. In 1999, the company‟s name was changed to Pantaloon Retail
(India) Limited (PRIL).
The company share transfer committee, have allotted 10, 00,000 No.of equity shares
of Rs. 10/- each at a premium of Rs. 33/- per share on privatePlacement basis to
ICICI Ltd. A/c. Structured Products Fund.
The total paid up capital of the company is 1, 25, 19,413 No. of equity shares of Rs.
10/- each, ICICI Ltd. A/c Structured Products Fund will be holding 7.99% of the
enhanced share capital.
Pantaloon Retail (India) Ltd. has launched stain free with Scotchgard, a new range of
formal shirts and trousers.
Pantaloon Retail India Ltd has informed that the Board of Directors of the company
has allotted 40 lac equity shares to the promoters and their associates on preferential
basis at a price of Rs.31.50 per share.
Promoters sell 584098 shares
Pantaloon has launched a range of the movie-specific merchandise such as notebooks,
folders, pens, mouse pads etc.
Incidence of fire occurred at one of ATM centre in Maheshwari Plaza Mall/Big
Bazaar at Abids, Hyderabad.
23. Preferential Issue of 8,65,000 Equity shares of Rs.10 each at a premium of Rs.40 per
share to Promoters & Associates.
Allotment of 8,65,000 equity shares to the promoters and their associates on
preferential basis at a price of Rs.50/- per shares as approved by the members of the
company at their meeting held on December 20, 2002
Pantaloon Retail (I) Ltd. enters into Strategic alliance with ArvindBrands Ltd.
Pantaloon Retail calls off strategic alliance with Arcus Ltd.
Appoints Mr. Ved Prakash Arya as Chief Operating Officer. Mr. Arya will take
charge of the retail operations of the company.
Ties up Arvind Brands Ltd for Ruf&Tuf brand at its Big Bazaar outlets across the
Pantaloon Retail (India) Ltd has signed a memorandum of understanding (MoU) with
K.J. Somaiya Institute of Management & Research Studies to offer a specialised
course in retail management.
Pantaloon join hands with Unitech for home stores chain
The Pantaloon Retail has made an offer under Regulation 10 of the SEBI (SAST)
Regulations to the Public shareholders of Galaxy Entertainment Corporation Ltd
(Target Company) toacquire up to 2,542,400 fully paid equity shares of Rs 10/- each,
representing in the aggregate 20% of the Post issue voting capital at a price of Rs 51/-
(Rupees Fifty One only) per share (the Offer price) payable in cash subject to the
terms & conditions mentioned.
Pantaloon Retail enters into an agreement with CapitaLand Singapore
Pantaloon Retail India Ltd has entered into a 50:50 joint venture(JV) with Axiom
Telecom LLC, UAE, to do sourcing and wholesale distribution of mobile handsets,
accessories and setting up service centres and Authorised After Sales Service Centres
for mobile handsets in India.
Pantaloon Retail (India) Ltd. has appointment Mr. Deepak Tanna as Deputy Company
Secretary and he shall be Compliance Officer with immediate effect.
Pantaloon Retail has inked a 50-50 joint venture pact with French apparel firm Celio
to add to its garment retailing in India.
The Company has issued Bonus Shares in the Ratio of 1:10.
Pantaloons India is one of the leading retailer stores of India, which operates numerous
formats of retail both in the lifestyle and value segment of the consumer market in India. The
company has its headquarters in Mumbai and operates more than 12 million sq. feet retail
space, with more than 1000 stores transversely in 71 Indian cities as well as employs more
than 30, 000 people. Pantaloon India is the subsidiary company of the Future Group, which is
considered as a business venture providing the needs and requirements of the Indian market
3.2.2 Nature of business Carried:
Pantaloon Retail India Limited is a leading Indian retailer, offering retail solutions for five
business segments - food, fashion and footwear, general merchandise, leisure &
entertainment and home. The Company operates in the value and lifestyle segments of the
Indian consumer market.
The Company operates through its multiple delivery formats like fashion store formats under
the Pantaloons brand, the seamless mall concept under the Central brand, hypermarket
formats under Big Bazaar, food & grocery format under the Food Bazaar brand and the home
segments solutions through formats like E-zone, Home Town and others.
25. The Company has also ventured into telecommunications retail and other lines of businesses
such as wellness and beauty as well as books and music. Some of its other formats include
Depot, Shoe Factory, Brand Factory, Blue Sky, Fashion Station, aLL, Top 10, mBazaar and
Star and Sitara. Its online venture includes a web-based portal, futurebazaar.com.
3.2.3 Vision , Mission and Quality policy
Future Group shall deliver Everything, Everywhere, Everytime for Every Indian Consumer in
the most profitable manner.
Vision of Pantaloons India
Pantaloons India, in association with The Future group shall deliver every time, everywhere,
and everything for every consumer of India in a profitable way.
Pantaloons India shares the belief that the potential stakeholders and customers shall be
provided by executing and creating future developments in the leading consumption space to
the economic development.
We share the vision and belief that our customers and stakeholders shall be served
only by creating and executing future scenarios in the consumption space leading to
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 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.
Indianness: 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 and information.
Valuing and Nurturing Relationships: To build long term relationships.
Simplicity & Positivity: Simplicity and positivity in our thought, business and action.
Adaptability: To be flexible and adaptable, to meet challenges.
Flow: To respect and understand the universal laws of nature
With a focus on today‟s youth, Pantaloons offers trendy and hip fashion that defines their hopes
and aspirations. Our stores reflect our ideology: Fresh Feeling, Fresh Attitude, and Fresh
Fashion. We offer fresh collections that are visually stimulating thanks to appealing interiors
and attractive product display.
3.2.3 SERVICE PROFILE OF PANTALOON RETAIL INDIA LTD:
Pantaloon Retail is the flagship company of Future Group. The lines of business of Future
E-commerce: Pantaloons‟ website Futurebazaar.com has revolutionized the e-commerce
business in India. It offers a wide range of products at affordable prices. It has been named as
Best Indian Website 2007 in the Shopping category by PC World.
Food: In food business, the group offers a host of options. Food Bazaar - a chain of large
supermarkets; Brew Bar - a beer bar; café Bollywood - a national chain of eateries; Chamosa
- a pan-Indian chain of snack counters, and Sports Bar - a bistro focused on the world of
Fashion: The group offers a variety of options in fashion. Its brands include aLL, Blue Sky,
Central, Etam, Fashion Station, Gini&Jony, Navaras, Pantaloons, and Top 10.
27. 3.2.4 Pantaloons Product Offerings:
MEN’S WEAR LADIES WEAR KID’S WEAR
Mix & Match
Home & Electronics: Options include: Collection i - a lifestyle furniture store; Electronics
Bazaar - offers branded electronic goods and appliances; e-zone - trendiest electronics items;
Furniture Bazaar - entire range of Home Furniture; Home Town - one stop destination for all
the home needs.
Leisure & Entertainment: Options are: Bowling Co. - state-of-the-art premium family
entertainment Centre, offering multiple, novel and unique leisure and entertainment options;
F 123 - offers a wide range of gaming options ranging from bowling and pool to redemption
and interactive video games to bumper cars.
Wellness & Beauty: Options are: Health Village - a state-of-the art spa and yoga Centre;
Star &Sitara: Beauty salon for men and women; Tulsi - provides access to the best allopathic,
ayurvedic and homeopathic medicinal products; Turmeric - offers beauty products like colour
cosmetics, fragrances, herbal and specialty skin items, hair products and bath accessories.
28. Books & Music: Future Group's brand - "Depot" offers Books, CDs, and stationery items.
3.2.6 Area of operation – National
Pantaloons operate nationally throughout the India in the major cities. Pantaloons serve
customers in 85 cities and 60 rural locations across the country through over 15 million
square feet of retail space.As India‟s leading retailer, Pantaloon Retail inspires trust through
innovative offerings, quality products and affordable prices that help customers achieve a
better quality of life every day.
Pantaloon Retail is the flagship company of Future Group, India‟s retail pioneer catering to
the entire Indian consumption space. Through multiple retail formats, Pantaloons connect a
diverse and passionate community of Indian buyers, sellers and businesses. The collective
impact on business is staggering: Around 220 million customers walk into our stores each
year and choose products and services supplied by over 30,000 small, medium and large
entrepreneurs and manufacturers from across India. This number is set to grow
3.2.7 BOARD OF DIRECTORS
SHAILESH HARIBHAKTI Chairman & Non-Executive Independent Director
KISHORE BIYANI Managing Director
S DORESWAMY Non-Executive Independent Director
Dr. DARLIE KOSHY Non-Executive Independent Director
ANIL HARISH Non-Executive Independent Director
BALA DESHPANDE Non-Executive Independent Director
V. K. CHOPRA Non-Executive Independent Director
GOPIKISHAN BIYANI Non-Executive Director Director
RAKESH BIYANI Executive Director
VIJAY BIYANI Executive Director
KAILASH BHATIA Executive Director
29. 3.2.8 Competitors Information
Shoppers Stop is an Indian department store chain promoted by the K Raheja Corp Group
(Chandru L Raheja Group), started in the year 1991 with its first store
in Andheri, MumbaiShoppers Stop Ltd has been awarded "the Hall of Fame" and won "the
Emerging Market Retailer of the Year Award", by World Retail Congress at Barcelona, on
April 10, 2008. Shoppers Stop is listed on the BSE. In 2011, Shoppers Stop has 97 stores
Tata group is another major player in Indian retail industry with its subsidiary Trent, which
operates Westside and Star India Bazaar. Established in 1998, it also acquired the largest
book and music retailer in India „Landmark‟ in 2005. Trent owns over 4 lakh sq. ft retail
space across the country.
RPG Group is one of the earlier entrants in the Indian retail market, when it came into food &
grocery retailing in 1996 with its retail Foodworld stores. Later it also opened the pharmacy
and beauty care outlets „Health & Glow‟.
Reliance is one of the biggest players in Indian retail industry. More than 300 Reliance Fresh,
reliance trends stores and Reliance Mart are quite popular in the Indian retail market. It's
expecting its sales to reach ` 90,000 crores by 2011.
AV Birla Group
AV Birla Group has a strong presence in Indian apparel retailing. The brands like Louis
Phillipe, Allen Solly, Van Heusen, Peter England are quite popular. It's also investing in other
segments of retail. It will invest `8000-9000 crores by 2011.
Welspun Retail Ltd India‟s first and only organized retail company in the home segment
based in Mumbai, Maharashtra. It is a part of the 7,686.55 crore (US$1.46 billion) Welspun
Group. It was incorporated in 2006, to promote Welspun products. It retails its products
through its two brands: Welhome and Home Décor. It main products includes home
furnishing such as bed, bath, kitchen, dining and living items. It has more than 200 stores and
60 Spaces stores across 120 cities with plans to open another 900 stores with over a million
sq.ft. of retail space in India in over 235 cities and town.
Trent is the retail arm of the Tata group. Started in 1998, Trent operates Westside, one of the
many growing retail chains in India based in Mumbai, Maharashtra.
Megamart, is a retail-value clothing store based in 60 cities of India and having around 160
divisions. It is one of the biggest clothing stores in the country and has also received attention
from the media because of its growing popularity. It was founded in 1996 by the Arvind Ltd.
foundation and has grown to a very great extent.
3.2.8 Infrastructural Facilities
The Indian retail market is expected to continue its growth trajectory into 2012.Mall
management has been identified as a critical factor for the success of malls and the retail
industry across the world. Mall management broadly includes mall positioning, zoning,
tenant mix, promotions marketing and facility/finance management .Currently, the Indian
retail market lacks designated mall management firms. Large real estate developers and retail
chains either have their own mall management arms operating as subsidiaries or have
contractual agreements with international property consultants. Till recently, mall
management was limited to facility management by a majority of developers in India, leading
to gaps in mall management practices.
31. Organised retailing in India witnessed a gross turnover of USD 320 billion in 2008. Although
this figure is low compared with other developed economies, industry experts expect the
growth rate of this sector at 35% until 2012. At present, about 300 malls are operational at a
Pan-India level with a total area of 19 million sq ft. As per the current estimates, about 300
additional malls are expected to be constructed across the country by 2012.specific to
individual malls. We anticipate that the success of Indian malls will not only be achieved by
housing the biggest and the best mix of retailers, but also by setting up new standards and
procedures in mall management that will provide a platform to differentiate its products and
services from competitors.
Globally, mall management broadly includes: positioning a mall zoning – formulating the
right tenant mix and its placement in a mall promotions and marketing facility management –
infrastructure, traffic and ambience management, financemanagement. Mall‟s success in the
future,however, a sense of concern was expressed over the following challenges to the Indian
Lack of quality locations, shortage of trained staff, rising rental values mall management. The
first three concerns can be classified as external factors, whereas mall management is
internal. External factors are common to all players in the Indian retail industry
Positioning also refers to the location of the shopping mall. A good location defined in terms
of factors like ease of access via roads, good visibility, etc. is considered as one of the prime
prerequisites for a mall. Although other activities such as trade/tenant mix can be revisited or
redefined, the location remains fixed, making it an imperative factor for a mall.
Infrastructure Management – Infrastructure management refers to the management of
facilities provided to the tenants within the mall. This includes provision of adequate power
supply, safety issues in case of emergency and miscellaneous issues related to signage, water
supply, sanitation, etc.
Ambience Management – The overall shopping experience provided for consumers
becomes an important factor for the success of any mall. Ambience management includes
management of parks, fountains and overall look of the mall. A mall is not just a place for
shopping but is also a place where people spend their leisure time. In favorable, lush green
32. landscaping with seating facilities and the presence of food and beverage inside or outside the
mall can increase foot traffic.
Traffic Management – Traffic management includes managing foot traffic into the mall and
parking facilities. Foot traffic management involves crowd management inside the
operational area of a mall. The flow of people is related to the design of the mall and the
spatial distribution of its tenants.
Professional financial management of a mall as a business venture is a must. Mall
management also covers financial management, which involves monitoring and controlling
of various issues such as:
cash receipts and collection of income including rentals, service charges, car park receipts,
electricity and other utility income developing accounting systems to track the ageing of
debts, payment delay patterns, bad debts and payment of all invoices and expenseseveloping
standard financial templates so that a detailed annual property budget is preparedat times,
organising resources to deliver an efficient and effective annual external audit
3.2.9 Work flow model (END to END)
Retail store operations involve a number of operational processes performed on a continual
basis by different members of a retail store team. The workflow of retail operational
processes is fairly similar between different organizations, as companies have shared best
practices and experiences over the years. Understanding the basic operational processes and
workflow of a retail store can help you to structure operations for your own retail business.
Retail store managers often handle purchasing duties for their specific outlets. In larger
organizations, purchasing may be centralized, with front-line managers only responsible for
reporting inventory levels to the main office. It is more likely in smaller retail businesses,
Suppliers Retail outlets Customers
33. however, that store managers will handle all purchasing activities themselves. Retail
employees regularly take stock of the inventory they have on hand, including goods on the
shelf as well as inventory in storage areas. Customizing company procedures to suit their own
management styles and the specific needs of their individual outlets, managers place orders
with suppliers either on a regular basis or when they reach an optimum re-order point for a
specific item to ensure their outlets are always fully stocked.
Inventory handling duties can be a part of everyone's job in a retail store. Handling begins
with receiving shipments, which includes unpacking boxes, sorting received items, and
disposing of boxes and packing materials. Store employees store new inventory items
according to company policies -- usually following the first in, first out rule -- and restock
inventory on the shelves whenever it is needed. Store associates are responsible for
maintaining the aesthetic appeal of inventory items in the store by straightening items after
customers handle them, making sure all items are clean and free of dust, and occasionally re-
organizing shelves and displays to give the store a fresh look and feel to keep customers
engaged and interested while shopping.
Customer service is the core element of retail store operations, and it is the lynchpin that
holds the entire workflow together. The fundamental purpose of a retail store is to provide an
outlet for customers to view, handle and purchase items, which means all activities in a retail
store ultimately revolve around customer service. Customer service in a retail store can be
broken down into three categories: in-store assistance, transaction processing and handling
complaints. In-store assistance involves helping customers to find what they are looking for
without a hassle. Transaction processing includes ringing up transaction totals, accepting
payments and packaging items for the customer to take home. Handling complaints includes
dealing with product returns, short-change claims, potential issues arising between customers
and store staff, and general dissatisfaction with the store's service or products.
Individual retail outlets report all that they do to a main office. One major component of retail
workflow is regularly reporting financial information to the accounting department. Store
34. managers send daily updates to report sales numbers, refunds, lost inventory, hourly payroll
data and information on bank deposits before the workflow cycle begins again the next day.
3.2.10 Future growth and prospects
Future Plans of the company
Keeping in mind the growing market of organized retail as well as the growing competition
the company is planning to take the following initiatives.
1) One of the strategies that Pantaloon is pursuing for the future is the wide scale
expansion of the established retail formats into new geographies and territories. The
focus is more on Pantaloons, Big Bazaar and Food Bazaar formats. Especially with
Big Bazaar the company is planning to expand in the tire II and tire III cities. It has
become a rat race among the large retailers as to who comes up with their store first in
2) Pantaloon at the same time plans to capture the changing consumption trend. This it
plans to do so by experimenting with new formats and specialty formats.
3) Increase retail space by around 6 million sq. feet in the current financial year.
4) Since location is a very important factor in retail the company is acquiring real estate
at prime locations. However the surge in real estate prices has affected the plans of the
company. The company has already acquired 23 million sq. feet of retail space which
it plans to make operational on or before 2011.
India‟s largest listed retailer, Pantaloon, is expected to record a sales growth of 20 to 25 per
cent over the next two years on the back of aggressive expansion as well as a robust same
store sales growth. The company is also planning to team up with Carrefour, the world‟s
second largest retailer after Wal-Mart, to set up its branded stores in India.
The company which currently operates about 16 million sq. ft. of space is expected to add
about 1.5 million to 2 million sq. ft. of retailing space annually over the next two years. On
the back of capacity addition as well as strong same store sales growth across formats (value,
lifestyle and home), the company expects to grow its sales by 25 to 30 per cent in 2011-12.
35. The completion of the restructuring process and the company‟s focus on its core retail
operations will help it improve cash flow and profits.
Pantaloons plans huge expansion
Pantaloons, an India-based apparel retailer and subsidiary of Future Group, plans to open a
store every day during this fiscal quarter of 2011.
The retailer has opened 177 stores or 2.26m sqft of space in the financial year 2011. Now it
plans to open 88 outlets across different formats or 1.05m sqft of retail space, according to
Business Standard. Future Group chief executive Kishore Biyani said that the company
expect a huge shortage of space in the next three to four years.
The group also plans to expand other subsidiaries including Central, a mall concept spanning
0.58m sq. ft.; and Big Bazaar, hypermarkets spanning 0.76m sq. ft. The company is also
reportedly planning to open 20 stores of Fashion@Big Bazaar this year.
Future Group plans to invest INR 900 crore ($195.354) to open stores in the next three years.
Biyani indicated that the group will develop around 3m sq. ft. of space, of which Big Bazaar
will account for 70%.
3.2.11 MC KINESEY’S 7 S MODEL
The 7 S Framework of Mc Kinsey is a model that describes 7 factors to organize a company
in a holistic and effective way. Together these factors determine the way in which a retail
store operates. Store Manager should take into account all seven factors, to be sure of
successful implementation of strategy. Richard Pascal and Anthony Athos first mentioned the
7-S Framework in “The Art of Japanese Management ‟‟ in 1981.
Mckinsey’s 7s frame work with reference to organization.
The business strategy of Pantaloon Retail has been to capture the entire consumption space of
the Indian consumers. The company has moved from one retail business to another, keeping
in pace with the changing needs and aspirations of the Indian consumer. They company
36. which primarily started as a garment retailing company has moved into multiple businesses
on the backdrop of the endless opportunities being provided by the growing Indian economy.
The company has adopted a strategy to serve all segments of the Indian Consumer market
whether it is lifestyle stores like Pantaloons that aims to offer customers enhanced shopping
experience or value format stores like Big Bazaar which follows a strategy of always
providing at the lowest possible prices as well as the convenience of finding everything under
The company has adopted a strategy of catalyzing consumption and not just capturing it. The
company follows a strategy of discovering new customers, new markets, new geographies
and new business possibilities.
“Structure” is the organizational structure or the hierarchy of the organization that comprises
of the authority, responsibility and relationships in the firm. This function of framework is
concerned with direction of the delegation of authority, organizational structure whether flat
or tall and the degree of centralization or decentralization.
Considering this scale of expansion, technology plays a significant facilitating role. The
introduction of SAP in 2005-06 and its roll out during the year positively impacted the
business. Big Bazaar has initiated the process of Auto Replenishments Systems, thus
improving operational efficiencies and productivity. The company has also rationalized
nearly 250 vendors through better vendor management in terms of potential to expand, and
for inclusion and up gradation to the online B2B platform.
Pantaloon has been successful in keeping its workforce of 25000 highly satisfied and
motivated. The company has an attrition rate of 8.12%, much below industry levels.
Pantaloon would not have been able to expand and have the same level of success without
hiring and taking care of quality employees. Some of Pantaloon human resource activities
include employee advancement, employee recruitment on college universities, and employee
38. training and development. Additionally, while most firms in retail facing talent crunch
Pantaloon has tied up with various college and institutes to ensure it has fresh supply of talent
at its disposal. Close to 46% of the employees in the organization are women and the average
age within the organization is 27 years.
The company has a adopted a policy of collaborating on joint degree programs with 15
management schools, design institutes and institutes of higher learning in areas like food
business, supply chain management, design experience management etc. This „Seekho‟
programme for the external and internal candidates ensures a steady stream of mid-level, well
trained retail professionals every year. The company‟s „Gurukool‟ programme provides the
front-end employees an opportunity to imbibe the company‟s values and a sense of
ownership to the company.
Pantaloon by tying with various management institutes in India has ensured that it has
sufficient inflow of managerial skill required. In addition to that the human resource
department undertakes various training and development programs to ensure that the
employees have the necessary skills to discharge their responsibilities.
Also another area where Pantaloon scores over its competitors is its bargaining skills. It has
been able to ensure higher margins for itself from the suppliers. Also the supply chain skills
of the company are among the best in the Indian retail sector. The company carefully
rationalizes its vendors. For instance, Pantaloon buys its dry staples directly from millers for
its Food Bazaars; it is now experimenting with contract farming, too, to lower its cost
At Pantaloon, empowerment and freedom of work is clearly apparent. This can be seen with
various category managers at each store level being empowered with taking all decisions with
respect to their departments from deciding inventory levels to placing replenishment orders.
Out of the Box thinking has become a way of life at Pantaloon and living with the change, a
habit. Such a culture in necessary to go in line with the organizational strategy of exploiting
changing consumer aspirations. In the quest of creating an Indian model of retailing,
Pantaloon has taken initiatives to launch many retail formats that have come to serve as a
39. benchmark in the industry. The management is very dynamic and does not focus or focus of
predicting future but rather believes in creating the future.
The Future group as the name suggests believes in exploring areas yet unexplored. Writing
rules yet unwritten as well as creating new opportunities have been the building blocks of its
success. The group does not believe in waiting for the future to unfold itself rather it believes
in creating future scenarios. The group does not just spots trend but also creates them.
While doing all these, the following core values are shared and transpires among everyone in
Indianness: 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 and information.
Valuing and Nurturing Relationships: to build long term relationships.
Simplicity & Positivity: Simplicity and positivity in our thought, business and action.
Adaptability: to be flexible and adaptable, to meet challenges.
Flow: to respect and understand the universal laws of nature.
40. Chapter 4
RESULTS & DISCUSSIONS
The data obtained from the questionnaire were analysed with the suitable statistical tools, the
results were presented in tabular & graphical form as per the objectives in the study through
the following subheadings;
3.3 Understanding the customer profile.
3.4 Brand awareness of Pantaloon& its Competitive stores in the minds of the customers.
3.5 Shopping experience and the level of satisfaction at Pantaloon store.
3.6 Problems faced by the customers at Pantaloon and to suggest suitable measures to the
4.1 UNDERSTANDING THE CUSTOMER PROFILE
As per the objectives an effort was made to understand the customer profile of the people
who visits the Pantaloon stores and are presented in the following tables;
Table 4.1: Age of the Respondents
No. Of respondents Percentage
60 & Above
The above table reveals that 39% of the respondents were in age group of 18-30, 25% were
30-45, 21% were 45-60 and 15 % of them were 60 and above.
Table 4.2: Religion of the Respondents
Religion No. of Respondents Percentage
18-30 30-45 45-60 60 & Above
Percentage 39 25 21 15
Graph 4.1: Age of the Respondents
The above table reveals that majority (91%)of the respondents were Hindus followed by 6%
Muslims and three % others.
Table 4.3: Occupations of the Respondents
Occupation No. of Respondents Percentage
In the above table we can see that 27 % respondents were businessmen, 49% of them were
employees and 22% were housewives.
Hindu Muslim Others
Graph 4.2: Religion of the Respondents
43. Table 4.4: Sources for Purchase of food items by the Respondents
Type of store
No of respondents Percentage
Businessman Employee Housewife
Graph 4.3: Occupations of the Respondents
Graph 4.4: Purchase of fooditems of the Respondents
From the table we can see that 45% of respondents go to hypermarkets followed by 28%
supermarkets and 27%preferred convenience stores for their purchase of food items.
Table 4.5: Frequency of Purchase of Non-food Items
Frequently purchase Number of respondents Percentage
Once in month 55 55.00
Twice in a month 20 20.00
Once in a week 17 17.00
Twice in a week 8 8.00
Total 100 100.00
Once in month Twice in a
Once in a week Twice in a week
Graph no. 4.5 Frequency of Purchase of Non-food Items
From the table it was observed that 55% of the respondents had a habit of buying product
once in a month. 20% of the respondents purchase twice a month others once or twice a
Table 4.6: Reason for purchase from that place
No of Respondents Percentage
Availability of many items
From the table we can see that majority of the people purchase from the same place mainly
because of availability of many items at a time under the same place. Another 33% of the
Convenience No alternatives Good
Graph no. 4.6 Reason for purchase from that place
46. respondent has opted because of convenience. Very few people have opted for good
relationship, few people buy from that place because of no alternatives.
4.2 BRAND AWARENESS OF PANTALOONS & ITS COMPETITIVE STORES
IN THE MINDS OF THE CUSTOMERS.
Table 4.7: Popular Retail Stores in Bangalore
Stores No of Respondents Percentage
Pantaloon 70 70.00
Life Style 79 79.00
Reliance 71 71.00
More 65 65.00
Soppers‟ Stop 75 75.00
West Side 40 40.00
70% 79% 71% 65%
Pantaloon Life Style Reliance More Soppers' Stop West Side
Graph no. 4.7 Popular retail stores
The above table reveals that Pantaloons, Life Style, Reliance, More and Shoppers‟ Stop were
found to be very popular retail stores. However, Westside seems to be less popular among all
the available stores in the Bangalore city.
Table 4.8: Purchase of Non-food items from the Respondents
Name of the stores
No of respondents Percentage
From the table we can see that Shoppers Stop has a high customer value in regards of non-
food items followed by other competitors. In this section the poor performers are West side
and Big Bazaar.
48. Table 4.9: Awareness Sources for Pantaloons
Sources No of Respondents Percentage
Friends 53 53.00
Parents/relatives 20 20.00
Internet 7 7.00
Others 20 20.00
Totals 100 100.00
Life style Pantaloons West side Shoppers's Stop Reliance Big Bazaar Central
Graph 4.8: Purchase of Non-food items from the Respondents
From the table we can see that majority of the respondents came to know about Pantaloons by
their friends ie. 53%, 20% from their parents and relative as well as others(like
advertisements, mall etc) and 6% from the internet.
Table 4.10: Reason for choosing Pantaloons for Purchase
Particulars No. of Respondents Percentage
Reliability 4 4.00
Customer Service 3 3.00
Availability of products 2 2.00
All the above 91 91.00
Total 100 100.00
Graph no. 4.9 Awareness Sources for Pantaloons
50. Source: Questionnaire
The above table reveals that 4% of the respondents says that Pantaloons was famous for
reliability, 3% said customer service, 2% opined that availability of products but the majority
of them ie. 91% said all the above.
All the above
Graph no. 4.10 Reason for choosing Pantaloons for Purchase
51. 4.3 SHOPPING EXPERIENCE AND THE LEVEL OF SATISFACTION AT
Table 4.11: Shopping Experience of the Customers at Pantaloon
Decision No of Respondents Percentage
Joyful Experience 98 98.oo
Value for Money 95 95.00
Better Discounts & Offers 89 89.00
Note: Recorded multiple responses from the respondents & figures in bracket shows the percentage of
The above table represents that 98 % of respondents had joyful Experience, 95% opined
value for money and 89 % found better discounts & offers comparing to other stores.
Joyful Experience Value for Money Better Discounts & Offers
Graph no. 4.11 Shopping Experience
52. Table4.12: Customer Satisfaction towards Pantaloon with respect to the selected
parameters (Percentageof Respondents)
Parameter Satisfied Moderately
Ambience 59.00 32.00 9.00
Location 82.00 16.00 2.00
Staff Services 27.00 36.00 37.00
Parking Reimbursement 37.00 12.00 51.00
Shopping Satisfaction 62.00 22.00 16.00
Note: Recorded multiple responses from the respondents & figures in table shows the percentage of
Note: Recorded multiple responses from the respondents & figures in bracket shows the
percentage of respondents.
Not Satisfied Percentage
Moderately Satisfied Percentage
Graph no. 4.12 Customer Satisfaction towards Pantaloon
The above table reveals that 59% of respondents were satisfied with the ambience followed
by 82% by location, 27% from staff services, 37% from parking reimbursement and 62%
from shopping. 32% of them were moderately satisfied from ambience followed by 16% by
location, 36% from staff services, 12% from parking reimbursement and 22% from shopping.
9% of respondents were satisfied with the ambience followed by 2% by location, 37% from
staff services, 51% from parking reimbursement and 16% from shopping.
4.4 PROBLEMS FACED BY THE CUSTOMERS AT PANTALOON
Table no. 4.13: Problems Faced by the Customers at Pantaloons
Problems Respondents Percentage
Higher Prices 57 57.00
Non-availability of Medium range products 63 63.00
Non- availability of various size of products 31 31.00
Problems in billing 78 78.00
Poor service 27 27.00
No Proper gift wrapping 38 38.00
Non availability of coins for balance money 43 43.00
Bad attitude of the staff 19 19.00
Note: Recorded multiple responses from the respondents & figures in bracket shows the
percentage of respondents.
The above table reveals that57% of respondents said that they are paying higher prices, 63%
said no availability of medium range products, 31% were facing problems with the sizes,
78% of respondents were facing problem in billing, 27% said that they were facing poor
services, 38% of them were not happy with the gift wrapping facility, 43% said non-
availability of coins for the balance money and 19% of respondents were dissatisfied because
of the bad attitude of the staff.
Graph no. 4.13: Problems Faced by the Customers at Pantaloons
55. Chapter 5
FINDINGS, SUGGESTIONS & CONCLUSIONS
39% of the respondents were in age group of 18-30, 25% were 30-45, 21% were 45-
60 and 15 % of them were 60 and above.
Majority of the respondents were Hindus ie. 91% followed by 6% Muslims and 3%
27 % respondents were businessmen, 49% of them were employees and 22% were
Shoppers Stop has a high customer value in regards of non food items followed by
other competitors. In this section the poor performers are West side and Big Bazaar.
55% of the respondents have a habit of buying product once in a month. 20% of the
respondents purchase twice a month others once or twice a week.
Majority of the people purchase from the same place because of availability of many
items at a time under the same place. Another 33% of the respondent has opted
because of convenience. Very few people have opted for good relationship, few
people buy from that place because of no alternatives.
Pantaloon, Life Style, Reliance, More and Shoppers‟ Stop are very popular retail
stores but west side has very less popularity.
Majority of the respondents came to know about Pantaloons by their friends ie. 53%,
20% from their parents and relative as well as others (like advertisements, mall etc)
and 6% from the internet.
4% of the respondents says that Pantaloons is famous for reliability, 3% says
customer service, 2% says availability of products but the majority of them ie. 91%
says all the above.
Majority (98%) of respondents think that shopping at Pantaloon is a joyful
experience, but other 2 % are not agreeing to them.
Majority (95%) of respondents think that shopping at Pantaloon is value for money,
but other 5 % are not agreeing to them.
56. Majority (89%) of respondents think that shopping at Pantaloon has better discounts
and offers then others, but other 11% are not agreeing to them.
59% of respondents were satisfied with the ambience followed by 82% by location,
27% from staff services, 37% from parking reimbursement and 62% from shopping.
32% of them were moderately satisfied from ambience followed by 16% by location,
36% from staff services, 12% from parking reimbursement and 22% from shopping.
9% of respondents were satisfied with the ambience followed by 2% by location, 37%
from staff services, 51% from parking reimbursement and 16% from shopping.
57% of respondents said that they are paying higher prices, 63% said no availability
of medium range products, 31% were facing problems with the sizes, 78% of
respondents were facing problem in billing, 27% said that they were facing poor
services, 38% of them were not happy with the gift wrapping facility, 43% said non-
availability of coins for the balance money and 19% of respondents were dissatisfied
because of the bad attitude of the staff.
57. 5.2 SUGGESTIONS
The study shown that the respondents visiting to the non-food stores profile includes
the age group of 18-45 (64%) and more than 45years (36%) and majority of them
were employees (49%) followed by businessmen (27%) and housewives
(22%).Therefore Pantaloons may think of attracting young & middle age groups than
the older ones and this category probably can be attracted through offering more and
more discounts & offers.
It was also observed that majority of the respondents visiting to these stores were
Hindus (91%), hence company can think of attracting other religions by keeping
different range of products exclusively used by these religions such as Sikh, Christian
Since Shoppers Stop has got higher customer value than other retailers especially in
terms of non-food category, Pantaloons should identify their bottlenecks and improve
its performance for increasing its market share.
The results show that 55% of the respondents had a habit of buying product once in a
month and 20% of them purchase twice in a month. Therefore, company should offer
discounts and offers twice a week to attract customer walk-ins even in the week days
rather than only in weekends.
As majority of the respondents purchase repeat theirpurchases from the same place
because of the availability of many items under one roof (52%), followed by the other
reasons such as convenience (33%), good relationship (10%) andno alternatives (5%).
Therefore, company should keep all these things in mind before opening their stores
in any other places.
Pantaloons seems to be one amongmany other retailers such as Life Style, Reliance,
More and Shoppers‟ Stop. Hence,it should maintain the same popularity for the
betterment in the future.
Majority of the respondents thought that shopping at Pantaloon is a joyful
experience(98%), value for money(95%) and better discounts and offers (89%). It
shows that respondents have a positive feedback in their minds about the company
and hence it need to maintain the same feedback for the future.
58. Study shows that many respondents were not happy with the staff service (27%) and
parking reimbursement (37%), so, the company needs to improve in these areas as the
customers were happy with many other areas of the company.
Even though many respondents were repeating their purchases at Pantaloons for many
other reasons but still they expressed that the company has got some problem with the
following areas where they need to concentrate, improve and upgrade in terms of
higher prices, availability of medium range products, billing, services, gift wrapping
facility, non- availability of coins and bad attitude of the staff.
59. 5.3 CONCLUSION
In Bangalore city respondents are aware of different brands of retail stores are available in
market. Among different brands of retail top 5 brands are as Shoppers‟ Stop, Lifestyle,
Pantaloons, Central and Westside. All retail companies are doing very effective marketing
due to cut throat competition among lifestyle brands.
In the study it was found that majority of the respondents thought that shopping at Pantaloon
is a joyful experience, value for money and better discounts and offers. It shows that
respondents have a positive feedback in their minds about the company and hence it need to
maintain the same feedback for the future.
Customers are concentrated on many parameters of the products like quality, price and brand
name etc, most of the respondents were happy with the services of Pantaloons and buying
from the store but still they have point out some problems like improve and upgrade in terms
of higher prices, availability of medium range products, billing, services, gift wrapping
facility, non- availability of coins and bad attitude of the staff.
The retail industry is one of the fastest growing segments of the economy. As one of the
nation‟s largest employers, the retail industry provides excellent business opportunities.
60. Chapter 6
1. Philips Kotler – Marketing Management – 13th
Web sites (Links)
YU CHIHCHING AND CONNOR, J. M., 2002, The price-concentration relationship in
grocery retailing: retesting Newmark, Agribusiness New York, 18(4): pp. 413-426.
SUBASINGHE, S., 2003, Shrimp - an ideal candidate for value-addition, INFOFISH-
International, (5): pp. 45-46, 48-50.
SUNDAR, K., 1997, Store image of Saravana Bava Supermarket in Cuddalore district - (A
critical study), Indian Journal of marketing, XXIV (4-6): pp. 25-30.
RUDOLPH, T., BUSCH, A. AND BUSCH, S., 2000, Retail failures and recovery strategies
in Switzerland, Journal of Marketing Channels, 7(3): pp. 69-91.
The information given by you will be used for research purpose
Mobile. No. ……………………….
Income (per annum)……………….
Expenses (Rs/month) on
1. Purchase of food items from …………………..
2. Purchase of Non-food items from……………….
3. How frequently you purchase
a. once in a month b. twice in a month
c. once in a week d. twice in a week
4. Why you purchase from that place
b. No alternatives
c. Good relationships
d. Availability of many items
5. Name of the popular retail stores you know in Bangalore
62. 3. 4.
6. How many Pantaloon outlets you know in Bangalore…………….
7. Do you know what kind of store Pantaloon is?
b. Discount Store
d. Convenient store
8. How you came to know about Pantaloons?
9. The pantaloon is famous for
b. Customer service
c. Availability of products
d. All the above
10. Do you think Pantaloon has got its competitors, if yes name the competitors you
know for the same
11. Do you feel shopping at Pantaloon is a joyful experience?
a. yes b. no
12. Do you feel shopping at Pantaloon is value for money?
a. yes b. no
13. Does Pantaloon give better discount/offers than other retail outlets?
a. yes b. no
63. Score from one to five for the questions------- 14-18
1- very poor, 2- poor, 3- good, 4- very good, 5- excellent
14. How much satisfied are you with the Staff at PANTALOON?
15. How much satisfied are you with the Ambience of PANTALOON?
16. How much satisfied are you with the Location of Pantaloons?
17. How much satisfied are you with the Parking reimbursements provided by Pantaloons?
18. Rate your satisfaction level of shopping at Pantaloon
19. List the problems faced by you at Pantaloon?
20. Please, suggest some solutions to overcome from those problems by you at Pantaloon?