This document is a project report submitted by Parinay Shashikant Matkar to Swayam Siddhi College of Management & Research. The report examines consumer sales promotions of apparel retail stores in Mumbai. It provides background on the growth of organized retailing in India. It then discusses the apparel retail industry and major players like Shoppers Stop, Pantaloon Retail, Westside, Lifestyle International, Globus, and Wills Lifestyle. The report will analyze consumer sales promotion activities of apparel retailers and their impact on stimulating product interest and purchase.

1. SWAYAM SIDDHI COLLEGE OF MANAGEMENT & RESEARCH A PROJECT REPORT ON STUDY ON
CONSUMER SALES PROMOTIONS OF APPAREL RETAIL STORES SUBMITTED BY: PARINAY
SHASHIKANT MATKAR MMS BATCH 2008-2010 (MARKETING) UNDER THE GUIDANCE OF PROF.
TUSHAR CHAKRAVARTY IN THE PARTIAL FULFILLMENT OF MASTERS OF MANAGEMENT STUDIES
(MMS) OF

2. UNIVERSITY OF MUMBAI [Approved by AICTE, Affiliated to University of Mumbai &
Govt. of Maharashtra DT E Code   MB 336] (An ISO 9001-2000 Certified
Institute) Sonadevi Weight Bridge, Near Octroi Naka, Kalyan Road, Temghar,
Bhiwandi, Dist. Thane   421 302 CERTIFICATE This is to certify that Mr.
PARINAY SHASHIKANT MATKAR (Roll No.1328) student of Second Year Master of
Management Studies (MMS/MBA) of SWAYAM SIDDHI COLLEGE OF M ANAGEMENT & RESEARCH
has successfully completed the winter project work titled  ST UDY ON CONSUMER
SALES PROMOTIONS OF APPAREL RETAIL STORES  in partial fulfilment f or the
degree of Master of Management Studies of University of Mumbai. Date: / /2010
Signature of the project guide Director Prof. Tushar Chakravarty Dr. Nilesh
Chatterjee

3. Declaration I, Mr. Parinay Shashikant Matkar, hereby declare that the project
report titled  S tudy on consumer sales promotions of apparel retail stores 
is the record of authe ntic work carried out by me during the academic year 2008
  2010 and has not submi tted to any other university or institution towards
the award of any degree. Date: / /2010 ______________________ Signature (Parinay
S. Mtakar)

4. Acknowledgement I, Mr. Parinay Shashikant Matkar (Swayam Siddhi College of
Management and Resear ch, Bhiwandi), would like to thank my project guide, Prof.
Tushar Chakravarty fo r his valuable guidance and support which has helped me
immensely in completing this project. I also want to thank the college director
Mr. Nilesh Chatterjee an d other professors, my friends and colleagues, who have
directly or indirectly h elped me out in the completion of my project. Lastly, I
would like to thank the entire staff of all the stores for their cooperation
during my project work.

5. INDEX Title Introduction to retailing Apparel Retail Industry Major players in
Apparel Retai l Sales Promotion Objectives Research Methodology Analysis
Findings Conclusion B ibliography Page no. 1 3 6 8 11 12 15 41 43 44

6. Executive Summary In a market like India, there is a constant clash between
challenges and opportu nities but chances favour those companies that are trying
to establish themselve s. To sustain in such a volatile market, companies have
to bring innovative solu tions. With the advent of modern format retailers and
the growth of plastic card s, affluent urban Indians are shopping like never
before. As apparel retail is l ed by fashion, a retailer needs to keep a close
watch on fashion amongst teenage rs, as they are the trend setters. Seasonal
variations on stocking pattern and n eed to clear inventory at the end of season
should be understood by apparel reta iler. This highlights the importance of
sales promotions- short term activities which induces trade or consumer to buy
now, rather than in future, as the value of apparel after the season goes down
substantially and inventory carrying burde n turns out to be very high. Apparel
retailer needs to understand critical role of sales promotions. The topic of the
project is to perform a study on consumer sales promotion activities of the
apparel retail stores in Mumbai. To accomplish the above, three apparel retail
stores of different well known business groups, located in Mulund (W) area of
Mumbai were surveyed and interviewed. The respons es were analyzed and results
were obtained. The core purpose of the survey was t o study the sales promotion
activities performed by apparel retail outlets which results in stimulating
product interest, trial, purchase and stock clearance. Introduction to retailing

7. The revolution in retailing industry has brought many changes and also opened do
or for many Indian as well as foreign players. In a market like India, there is
a constant clash between challenges and opportunities but chances favour those c
ompanies that are trying to establish themselves. Thus, to sustain in a market l
ike India, companies have to bring innovative solutions. Indian market has poten
tial to accommodate many retail players, because still a small proportion of the
pie is organized. Retailing is still in its infancy in India. In the name of re
tailing, the unorganised retailing has dominated the Indian landscape so far. Ac
cording to an estimate, the unorganized retail sector has 97% presence whereas t
he organized accounts for merely 3%. Industry has already predicted a trillion d
ollar market in retail sector in India by 2010. However, the retail industry in
India is undergoing a major shake-up as the country is witnessing a retail revol
ution. The old traditional formats are slowly changing into more complex and big
ger formats. Malls and mega malls are coming up in almost all the places, be it
metros or the smaller cities, across the length and breadth of the country. A Mc
Kinsey report on India (2004) says organized retailing would increase the effici
ency and productivity of entire gamut of economic activities, and would help in
achieving higher GDP growth. At 6%, the share of employment of retail in India i
s low, even when compared to Brazil (14%), and Poland (12%). Govt of India s
plan of changing the FDI guidelines in this sector speaks of the importance
attached to retailing. Recent moves by big corporate houses like Reliance
Industries has further fuelled the major investments in retail sector. A
strategic alliance, la nd acquisitions in prime areas give the essence of the
mood in this sector. Both MNCs and Indian firms want to get their share of this
burgeoning pie. Notable i n Indian firms are Pantaloons Retail & Big Bazaar,
Trent s Westside, Shopper s stop, Reliance, Subhiskha, Wills Lifestyle
stores, Cafe Coffee Day, which are present in India in different retail formats.
Wal-Mart stores have just started operati ons in India. Some leading retail
coffee chains of the world like Starbucks, Bar nies are planning to expand in a
major way in India. The Indian retail sector

8. India is the country having the most unorganized retail market. Traditionally it
was a family s livelihood, with their shop in the front and house at the back,
wh ile they run the retail business. More than 99% retailer s function in less
than 5 00 square feet of shopping space. The Indian retail sector is estimated
at aroun d Rs 900,000 crore, of which the organized sector accounts for a mere 3
per cent indicating a huge potential market opportunity that is lying in the
waiting for the consumer-savvy organized retailer. Purchasing power of Indian
urban consume r is growing and branded merchandise in categories like Apparels,
Cosmetics, Sho es, Watches, Beverages, Food and even Jewellery, are slowly
becoming lifestyle p roducts that are widely accepted by the urban Indian
consumer. Indian retailers need to take advantage of this growth and aiming to
grow, diversify and introduc e new formats has to pay more attention to the
brand building process. The empha sis here is on retail as a brand rather than
retailers selling brands. The focus should be on branding the retail business
itself. There is no doubt that the In dian retail scene is booming. A number of
large corporate houses  Tata s, Raheja s, Pi ramals s, Goenka s  
have already made their foray into this arena, with beauty and he alth stores,
supermarkets, selfservice music stores, new age book stores, everyday-low-price
stores, computers and peripherals stores, office equipment stores and
home/building construction stores. Today the organized players have attacked
every retail category. Apparel retail industry

9. In India, clothing retail accounts for 36% of organised retail business. It is t
he largest sector. Ready-made apparel accounted for an estimated 20% of domestic
clothing sales in 2005. With growing working women wearing western wear to
work , and pressed for time, market for good readymade clothes is likely to
grow. Ind ia is a filmcrazy nation, and the largest producer of films, with more
than 1,00 0 every year. They provide entertainment and an escape from reality
for India s ma sses, and set the popular fashion trend. Bollywood fashions
have become pan Indi an. They affect various sectors of the market including
clothing, footwear, wedd ings and fashion accessories. With the advent of modern
format retailers and the growth of plastic cards, affluent urban Indian women
are shopping like never be fore. They spend mornings browsing in stores looking
for deals or latest styles. Upper income urban women are adopting ethnic wears.
These are designer clothes that incorporate Indian motifs, ethnic fabrics and
are a fusion of western and I ndian styles. In the large urban centres, apparel
retailers, like Shoppers Stop, Westside and Pantaloon have popularised their
private labels, which have attrac ted urban shoppers. Westside carries only its
own private labels, while for the other stores, 20-30% of their apparel turnover
is from private labels. Customers have loyalty to a store rather than any
particular garment brand. This has led to a thriving unbranded or local brand
market for ready-to-wear clothes leading to severe competition. Hence organized
retailers like Lifestyle, for instance, h as a loyalty programme called `The
Inner Circle , while Pantaloons offers a `Gre en Card Rewards programmes,
Westside has `Club West to woo the customers. Cust omers look to design and fit
of the clothes, and use the shop s name as a quality standard. Characteristics
of Apparel retail sector As apparel retail is led by f ashion, a player needs to
keep a close watch on fashion amongst teenagers as the y are the trend setters.
Role of Bollywood in spreading fashion needs to be unde rstood. Seasonal
variations on stocking pattern and need to clear inventory at t he end of season
should be understood by apparel retailer. Typically once an ite m is sold from
the outlet, retailer ensures that there is no repetition of same. It gets
replaced by different design, style and colour. Importance of store lay out,
décor is very critical. A person visiting the store frequently likes to see
Â
Â
Â

10. changes in the layout otherwise he may carry the impression that stocks are not
moving out of the store. Category management becomes very crucial function as tr
ansformation of design into production and delivery has to be completed before f
ashion or fad changes in the market. This highlights the importance of sales pro
motions- short term activities which induces trade or consumer to buy now rather
than in future as the value of apparel after the season goes down substantially
and inventory carrying burden turns out to be very high. Apparel retailer needs
to understand critical role of sales promotions. Attractive promotions induces
purchase acceleration, stock piling and brand switching on the part of a consume
r which substantially reduces retailers  financial and inventory risk and
consumer s  financial risk and psychological risk. Seasons of Retailing

11. Summer Season • It is usually from May to July. • Low sales are recorded
during this period. • This season is good for promotions an d launching new
advertisement campaigns. Fall Season • August and September are im portant
months. • Retailers are provided a good opportunity to increase their shar e.
Holiday Season • It begins usually at the end of October and carries through
th e fourth quarter ending in January. • Festivals like Dusherra, Diwali,
Christmas a nd New Year Eve bring more customers. • Usually it is the best
time for retailers. Spring Season • It lasts from February to May • Fewer
footfalls are recorded in mal ls. Customers Men • While men tend to prioritize
fashion to a lesser degree than women,  rightlook  and the  descent 
image is still important to them. • Men tend to spend more money on electronic
gadgets, food, sports goods and music. Women •  Teen  girls represent a
lucrative opportunity for retailers. They are going to become the future buyers.
•  Teen  girls are more trend savvy. It is not just the clothes and
accessories, but the whole look that the teen girls aspire to define. • Women
spend more on jewellery and household items and thus they contribute a lot more
in terms of revenue. Major Players in apparel retail

12. Shopper s Stop K. Raheja group of companies founded Shoppers Stop on October
27, 1991.The organization had already made its presence felt in the hospitality
and real estate sector, and now it has created a landmark in the Retail sector
with Shoppers Stop. Shoppers Stop is famous for the expertise and acumen
relating t o the current practices of the industry. It provides quality
services, products and the right kind of shopping environment. It has developed
itself as a househo ld name and has set high standards for itself with the
mission statement:  Nothing but the best". In 2005, the company had 25 stores
with a turnover of Rs. 1000 c rores and 7 lakh sq. feet retail space in the year
2005. The average age of the employees in the organization is 25 years.
Pantaloon Retail (I) Ltd. Pantaloon R etail is the flagship enterprise of the
Future Group. Pantaloon Retail (India) L imited has spread across various
businesses and cities in India. Pantaloon owns multiple retail formats and is
able to cater to a large section of the society. The company has over 140 stores
across 32 cities in India and 14000 employees. T he organization made an
incursion into the modern retail (fashion) in 1997. Big Bazaar, a hypermarket
chain, was introduced in the year 2001, with an Indian tou ch of convenience and
hygiene. Food Bazaar, food and grocery chain, and Central Mall located at
various Metros are other important parts of the group. Westside Tata Group
founded Trent Ltd. (Westside) in 1998. The acquisition of a Londonbas ed retail
chain Littlewoods by the Tatas was followed by the establishment of Tr ent Ltd,
which was later renamed as Westside. It is one of the largest and faste st
growing chains serving the customers in various categories, including men s w
ear, women s wear, kid s wear, footwear, cosmetics, perfumes and handbags, house
hold accessories, lingerie and gifts. The company offers products with a balance
between style and price. There are 25 Westside departmental stores operating in
various cities like Mumbai, Hyderabad, Pune, Delhi, Banglore, Noida, Gurgaon, N
agpur, Kolkata and many others. Lifestyle International Pvt. Ltd.
Â
Â
Â
Â
Â
Â

13. Lifestyle is an international fashion store of the Landmark Group, a Dubai-based
company. Lifestyle created a revolution in the Indian Retail Industry by bringi
ng a truly international shopping experience. It was launched in Chennai, and no
w it is one of the largest professional retailers spread across 3,25,000 sq. ft.
in various cities such as Chennai, Gurgaon, Mumbai, Hyderabad and Banglore. It
is a heaven for shoppers with a vibrant and spicy lifestyle. It provides a wide
choice of products at affordable prices with a convenient world-class environmen
t and a friendly layout. Being one of the best shopping destinations, it has won
the Most Respected Company in the Indian Retail Sector and the Most Admired
Large Format Retail Company awards in India. Globus Globus was launched in 199 8
as a part of the Rajan Raheja Group. The company opened its first outlet in In
dore followed by two more in Chennai. The flagship store was opened on 1st Novem
ber 2001 in Mumbai, followed by a vibrant store in New Delhi. Subsequently, its
stores were launched in Bangalore, Ghaziabad, Kanpur, Ahmedabad, Noida, Lucknow,
Varanasi and Hyderabad. The organization has an innovative and adaptive environ
ment. Globus has achieved customer delight by presenting value products and serv
ices through continuous improvement. Wills Lifestyle ITC has made a presence in
the Retail sector through its exclusive specialty store Wills Lifestyle . It ha
s developed itself as a fashion destination offering a range of apparels and acc
essories. Top designers of the industry design these clothes. The store offers W
ills Classic work wear, Wills Sport relaxed wear, fashion accessories and bath &
body care products. Wills Lifestyle has also developed John Players as a brand
that offers a fine collection of clothes for dynamic and vibrant people. ITC bel
ieves in the philosophy of enjoying the changing environment. This season Wills
Lifestyle has brought a complete array of products for very aspect and mood of l
ife be it work, relaxation or party. The store offers a truly International Sho
pping Experience through world-class environment and a robust portfolio of offe
rings. Sales Promotion
Â
Â
Â
Â
Â
Â
Â
 Â

14. Sales promotions are short-term incentives to encourage the purchase or sale of
a product or service. Sales promotion includes several communications activities
that attempt to provide added value or incentives to consumers, wholesalers, re
tailers, or other organizational customers to stimulate immediate sales. These e
fforts can attempt to stimulate product interest, trial, or purchase. Examples o
f devices used in sales promotion include coupons, samples, premiums, point-of-p
urchase (POP) displays, contests, rebates, and sweepstakes Sales Promotion Strat
egies There are three types of sales promotion strategies: Push, Pull, or a comb
ination of the two. A push strategy involves convincing trade intermediary chann
el members to "push" the product through the distribution channels to the ultima
te consumer via promotions and personal selling efforts. The company promotes th
e product through a reseller who in turn promotes it to yet another reseller or
the final consumer. Trade-promotion objectives are to persuade retailers or whol
esalers to carry a brand, give a brand shelf space, promote a brand in advertisi
ng, and/or push a brand to final consumers. Typical tactics employed in push str
ategy are: allowances, buy-back guarantees, free trials, contests, specialty adv
ertising items, discounts, displays, and premiums. A pull strategy attempts to
get consumers to "pull" the product from the manufac turer through the marketing
channel. The company focuses its marketing communica tions efforts on consumers
in the hope that it stimulates interest and demand fo r the product at the end-
user level. This strategy is often employed if distribu tors are reluctant to

15. carry a product because it gets as many consumers as possible to go to retail ou
tlets and request the product, thus pulling it through the channel. Consumer-pro
motion objectives are to entice consumers to try a new product, attract customer
s away from competitors  products, get consumers to "load up" on a mature
product, hold & reward loyal customers, and build consumer relationships.
Typical tactic s employed in pull strategy are: samples, coupons, cash refunds
and rebates, pre miums, advertising specialties, loyalty programs/patronage
rewards, contests, sw eepstakes, games, and point-of-purchase (POP) displays.
Reasons for Sales Promot ions • This could be a way of monitoring the
performance of product management. Since sales promotion can possibly provide
immediate impact on consumer sales, i t is not unusual to use these strategies
to attain their sales objectives. • Companies have to cope with pressure on
sales margins which they can achieve through paying closer attention to cost-
effective sales volume. Since th e results of using sales promotional techniques
can be determined accurately, sa les volumes can be easily predicted. • More
importantly, sales promotions are not only effective in attaining shortcomm
unications tools such as advertising. The progressive term sales; they are also
more cost-effective compared to other integrated marke ting fragmentation of
audiences and the increase in media costs have tipped the balance in favor of
sales promotion techniques which are more likely to deliver demonstrable
results. Popularity of Sales Promotions The reason sales promotions are gaining
popularity is due to the fact that product and sales management are very
confident in their ability to handle the techniques of sales promotion. Ot her
forms of integrated marketing communication tools need to go through a lot o f
thought and internal debates before funds are allocated or decisions are arriv
ed at.

16. Product managers also are more in control of the determination and implementatio
n of sales promotional activities. They have a freehand when it comes to what sa
les strategies to use. The importance of sales promotions as an integrated marke
ting communications tool could be attributed to the increase in number of specia
list sales promotions agencies operating in certain places. In the past, sales p
romotion was viewed as part of other marketing communications techniques. Today,
it is one of the stand-alone effective marketing tools. Disadvantages of Sales
Promotions • On the downside, the sales promotions, unlike other integrated
marketing Unlike advertising or public relations, for instance, sales promotions
strategies communication tools, work often on a short-term basis only. • may
have no lasting impact on the brand. .. .

17. Objectives of the project To study the sales promotion activities conducted by
the selected three modern a pparel retail outlets in Mumbai, namely Pantaloon
Retail (I) Ltd., Westside and Shopper s stop. Sub-Objectives To study the
current scenario of the retail industry in India To study the curre nt scenario
of the apparel industry in India To understand the importance of sal es
promotion activities To study and analyse the sales promotion activities cond
ucted by the selected three apparel retail outlets in Mumbai

18. Research Methodology 1. Type of Research Research is an original contribution to
the existing stock of knowledge making f or its advancement. This research is an
amalgamation of both formularize as well as descriptive research. 2. Research
approaches There are two basic approached to research, quantitative approach and
the qualit ative approach. The former involves the generation of data in
quantitative form, which can be subjected to rigorous quantitative analysis in a
formal and rigid manner. This approach is further sub-divided into inferential
approach is to for m a database from which to infer characteristics or
relationship of a population . This usually means survey research where a sample
of population is studied usi ng questionnaire to determine its characteristics
and it is then inferred that t he population has the same characteristics.
Qualitative approach to research is concerned with subjective assessment of
attitudes, opinions and behaviour. Resea rch in such a situation is a function
of researcher s insight and impressions. Suc h an approach to research
generates results either in nonquantitative form or in the form, which are no
subjected to rigorous quantitative analysis. Qualitative approach was been
adopted in this study where data was collected by personally interviewing the
staff of the selected stores.

19. 3. Sources of Data The first part of the project was to study the current trends
and the future of retail and apparel industry in India and also to gain some
basic knowledge on sa les promotion. This consisted of doing a secondary
research about the industry w ith the help of some text books and also through
the internet. Once the secondar y research was done, a personal visit was
conducted to the three well known appa rel retail outlets in Mumbai namely,
Pantaloon Retail (I) Ltd., Westside and Sho pper s stop all of which are
located in Mulund (W). The sales promotion activities conducted in the stores
were minutely observed. Personal interviews with few of the staffs of each store
were conducted to gain the in-depth knowledge about th e seasonal and non-
seasonal sales promotion activities conducted by the stores.

20. 4. Sampling Plan: (1) Population and Sampling unit The sample unit is the
individual unit of the s elected sample. Here the sample unit were the apparel
retail outlets in Mumbai. (2) Sample Size This refers to the number of items
selected from the universe to constitute the sample. For the purpose of this
study, a sample size of three ap parel retail outlets were selected, all of
which are owned by the three differen t well known business groups. (3) Sampling
Procedure There are various sampling procedures for selecting the sample
procedures. The sampling procedure followed here is Simple random sampling.

21. ANALYSIS

22. Pantaloon Retail (India) Limited, is India s leading retailer that operates
multip le retail formats in both the value and lifestyle segment of the Indian
consumer market. Headquartered in Mumbai (Bombay), the company operates over 12
million square feet of retail space, has over 1000 stores across 71 cities in
India and employs over 30,000 people. The company s leading formats include
Pantaloons, a ch ain of fashion outlets, Big Bazaar, a uniquely Indian
hypermarket chain, Food Ba zaar, a supermarket chain, blends the look, touch and
feel of Indian bazaars wit h aspects of modern retail like choice, convenience
and quality and Central, a c hain of seamless destination malls. Some of its
other formats include Brand Fact ory, Blue Sky, aLL, Top 10 and Star and Sitara.
The company also operates an onl ine portal, futurebazaar.com- 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 on catering to the consumer electronics segment. Pantaloon Retail
was recently awarded the International Re tailer of the Year 2007 by the US-
based National Retail Federation (NRF) and the Emerging Market Retailer of the
Year 2007 at the World Retail Congress held in Barcelona. Pantaloon Retail is
the flagship company of Future Group, a business group catering to the entire
Indian consumption space. Future Group manifesto  Fut ure    the word
which signifies optimism, growth, achievement, strength, beauty, rew ards and
perfection. Future encourages group to explore areas yet unexplored, wr ite
rules yet unwritten; create new opportunities and new successes. To strive f or
a glorious future brings group s strength, ability to learn, unlearn and re-
lea rn ability to evolve. The Future Group will not wait for the Future to
unfold it self but create future scenarios in the consumer space and facilitate
consumptio n because consumption is development. Thereby, the future groups will
effect soc io-economic development for the customers, employees, shareholders,
associates a nd partners. The customers will

23. not just get what they need, but also get them where, how and when they need. Fu
ture Group will not just post satisfactory results, but will write success stori
es. Future Group will not just operate efficiently in the Indian economy, will e
volve it. Future Group will not just spot trends, group will set trends by marry
ing their understanding of the Indian consumer to their needs of tomorrow. It is
this understanding that has helped Future Group succeeds. This will help group
succeed in the Future. The group shall keep relearning and in this process, do j
ust one thing.  Rewrite Rules. Retain Values  Group Vision Future Group
shall delive r Everything, Everywhere, Every time for Every Indian Consumer in
the most profi table manner. Group Mission • To share the vision and belief
that the customers an d stakeholders shall be served only by creating and
executing future scenarios i n the consumption space leading to economic
development. • To be the trendsetters in evolving delivery formats, creating
retail realty, making consumption afforda ble for all customer segments   for
classes and for masses. • • • To infuse Indian brand s with confidence and
renewed ambition. To be efficient, cost- conscious and com mitted to quality in
whatever we do. To ensure that positive attitude, sincerity , humility and
united determination shall be the driving forces to make the organization
successful.

24. Formats, Group Companies & JV of Pantaloon Retail India Ltd

25. Men Section

26. Women Section SWOT Analysis of Pantaloon Retail (India) Ltd. Strength Industry
leader First Mover Advantage Higher Bargaining Power to higher number of store
and good coverage Highest number of formats of stores Easy to a ttract talent
Highest market share in Organized retail Strong Good Will in marke t which helps
them in raising money for expansion, forming JV, entering new mark et or new
format Diversified business Stronger private label brands Weakness Gov ernment
rules and regulations are not favorable FDI policy not so favorable for tieups
Cannibalization within the formats Recession and global melt-down affecte d the
performance of the book Shrinking margins due higher input costs Opportunities
Luxury brand segments untapped by pantaloon Tie-up with foreign pl ayer to bring
in technical expertise and funds to expands aggressively Smaller f ormats should
expand more aggressively in tier II and tier III cities Scope of P rivate labels
Integrating supply chain with other retailers License agreement wi th foreign
brands Restaurant and fast food chain included in the current formats Threats
Rapid expansion by current players like Trent, Shoppers Stop, Reliance, More,
Bharti and Spencers Tie-up of competitors with foreign retail giants. For
example Bharti & Walmart Market conditions highly volatile last year due to melt
down

27. Real estate price & Rentals lowering Sales Promotion techniques at Pantaloon
Retail (I) Ltd. 1. Price-off offer: Under this offer, products are sold at a
price lower than th e original price. This type of scheme is designed to boost
up sales in off-seaso n and sometimes while introducing a new product in the
market. Example: • • • Buy 2 me n T-shirts at Rs. 599/- and 1 T-shirt at
Rs. 399/- (MRP: Rs.399/Tshirt). Buy 2 m en T-shirts at Rs. 749/- and 1 T-shirt
at Rs. 499/- (MRP: Rs.499/Tshirt). Buy 3 men round neck T-shirts for Rs. 399/-
(MRP: Rs.199/Tshirt). • • • Buy 2 men V neck T-s hirts at Rs. 499/- and 1
T-shirt for Rs. 299/- (MRP: Rs.299/Tshirt). Buy 3 women T-shirts at Rs. 399/-
(MRP: Rs.199/Tshirt). Buy 1 woman top and get Rs. 100/- o ff on the bottoms. 2.
Discounts: Under this, the products are sold at a discounted price with perce
ntage discounts on the original price. This type of scheme is designed to boost
up sales in off-season. Example: • • 30% off on all the men formal shirts
and trouse rs. 30 % off on all the women formals and casual outfits.

28. 3. End of season sale: End of Season sale or stock Clearance sale is been conduc
ted at Pantaloon Factory Outlets. They are offering surprising discounts as if y
ou buy 2 any items of garments and you will get 3 more with your choice absolute
ly free. These offers are given as celebration of New Year. 4. Seasonal offers:
Pantaloon provides the customers with various discounts and price-off offers at
the stores and factory outlets on the seasons like winter an d monsoon. This
type of scheme is designed to boost up sales in these seasons. 5. Festive
offers:

29. Pantaloons have come up with festive offer during Diwali and Christmas by giving
away gifts for purchases that are made at the store for cheaper price. If you s
hop for Rs. 4500 you get a Strolley bag worth Rs. 1299 for Rs. 149 only. If you
shop for Rs. 2400 and above you get a lemon set, which is said to be imported, w
orth Rs. 649 for Rs. 99 only. 6. New Year offers: Pantaloons offers gifts for pu
rchases that are make at the store during the New Year for cheaper price. If you
shop for Rs. 3500 you get a Imported Designer Glass Set for Rs. 249 only. If yo
u shop for Rs. 2500, you get a 3 nights and 4 days holiday package for a couple
on an International cruise. 7. Discount Coupons: Pantaloon offers 25% discount
on its large range of apparel s. The coupon is valid for limited period. This
coupon is valid for 25% off on a ny product purchased from
www.pantaloon.futurebazaar.com.

30. 8. Gift Vouchers: Pantaloons Fresh Fashion offers many Pantaloons vouchers rangi
ng different denominations like Rs100, Rs.250, Rs.1000 and Rs.2000. These Pantal
oons vouchers are exchangeable with the products by the customers at all the Pan
taloons Showrooms in India. The vouchers are a better option rather than gifts f
or the employees and customers as they are not bound for a particular thing to a
ccept. They are given free choice for choosing better gifts for themselves by us
ing vouchers. Pantaloons vouchers offer a wide range of products and services fo
r shopping. It has got coverage in 15 cities including 22 outlets. It thus offer
s good gift vouchers to its customers, clients and sales force also to keep good
relationships amongst each other. The most famous Gift Vouchers by Pantaloons F
resh Fashion are Trendsetters and Connoisseurs Choice. Trendsetters Gift Voucher
: This Pantaloons voucher to the customers for the products of value of Rs.500 a
t all showrooms of Pantaloons all over India. This voucher is valid for all appa
rels only. The amount of the products bought have to be within the face value of
the voucher, if it exceeds the actual amount the customer has to pay the exceed
ed amount after the shopping. This gift voucher is valid till 1 year from the is
sue date. It can not be exchanged to part or full cash. Connoisseurs Choice:
This Pantaloons voucher is available for the products value d at Rs.500 at all
Pantaloons showrooms. This is known to be as good as the cash under Pantaloons.
This is valid for one year after issuance. The voucher can no t be

31. exchanged neither it can be encashed. The voucher can be converted for once. Any
balance on voucher will not be exchanged as cash or any product. The pantaloons
all over India have got this facility so that the customers can avail it any ti
me any where. 9. Pantaloon loyalty program (Green card): Green Card is a
passport to a whole new world of exclusive benefits and privileg es to the
customers. • • • • • • Instant discounts for every time you shop at
Pantaloons. Ex clusive shopping days to get hold of latest merchandise. Regular
updates on coll ections and promos via catalogues, sms and email. Special
invites to the most ha ppening events. Extended exchange periods and
complimentary drops for alteration s. Exclusive billing counters and much more.

32. Shopper s Stop Ltd., has redefined retail in India, taking it to the next
level. F rom being just the sale of goods to consumers, the company has created
a unique aura around retail and turned it into an experience, an indulgence. The
pioneer of organized retail in India, Shopper s Stop Ltd., has been
instrumental in bringi ng about a retail revolution in the country and has
become the highest benchmark for the industry. With its growth plans firmly in
place and undeniable leadersh ip in the field, Shopper s Stop Ltd., is well on
its way to raise the bar of perfo rmance even higher. Shopper s Stop Ltd. has
made this purchase of goods extremely pleasurable. The stores have redefined
shopping by making it more than just a tr ansaction. The entire shopping process
is the coming together of an amazing arra y of offerings, warm but unobtrusive
service and special privileges and benefits that translate every visit into
customer delight.

33. Since its inception in 1991, Shopper s Stop Ltd., which was founded by the K
Rahej a Corp. Group (Chandru L Raheja Group), one of the leading players in the
countr y in the business of real estate development and hotels, has been
offering premi um and luxury value for the entire family. Shopper s Stop Ltd.
has metamorphosed f rom being a chain of retail stores to emerging as a Fashion
& Lifestyle destinat ion, which now includes retail concepts such as bookstores,
cafés and high-end lif estyle merchandise for the growing affluent middle class
in India. Today, its na me is synonymous with superior quality product, services
and above all, an inter national shopping experience. In order to enhance the
level of customer service and gain insight into new and emerging practices
followed internationally, Shopp er s Stop Ltd. is a member of the Inter
Continental Group of Department Stores (IG DS). It is the only Indian member
along with 29 other experienced retailers from all over the world. Leveraging
expertise, excellence and experience, Shopper s St op Ltd. has become a
benchmark for the Indian retail industry to follow. A pione er of organized
retail in India, Shoppers  Stop today, is the country s biggest Depa rtment
Store Chain. It offers customers an international shopping environment an d a
world-class shopping experience through its 20 stores in 11 cities. It house s a
host of international and domestic brands across categories such as apparel,
accessories, cosmetics, home & kitchenware as also its own private brands. Shop
pers  Stop offers a wide range of brands (more than 400 brands) for the entire
fam ily to choose from. Exclusive and

34. established brands share shelf space to offer an array of choices customers acro
ss all ages, tastes and occasions. Shoppers  Stop is the single largest
retailer f or Levi s Strauss, Pepe, Lee, Arrow, Zodiac, Ray-Ban, Swatch, among
others. Private Labels Shoppers Stop has a range of Private Labels across Men s
casual wear to formals to Women s wear. Private Labels contribute a mere 20% to
its Total Sales. Here a re the Private Labels Sold in Shoppers Stop outlet, •
• • • • • • Kashish - Mens s Ethnic Wear Stop - Western Wear - Men &
Women Life - Mens Casua l Wear , Jeans Wear Mario Zegnoti - Men s Formal Wear
Acropolis - Men s Formal W ear Push and Shove - Eye Wear Vettorio Fratini -
Premium Men s Wear Men Section
Â
Â
Â
Â
Â
Â

35. Women Section
SWOT ANALYSIS OF SHOPPERS STOP: Strengths • • • • • • • • •
Variety Range Different Brands Pioneer Loyal customer Low risk Go nancial
position Presence across various segments Parikrama the festival Weaknes s •
• • • • • Very high prices Less Schemes Less Discounts Competition
from standalone store s Late entry into value retailing Store makeover
expenditure

36. Threats • • • • • • • Government Policies Entrance of New Players
High attrition Lesser consu er spending Entry of foreign players Unorganized
sector Independent stores
Opportunities • • • • • • • • Awareness about the brands Quality
Youngsters Higher disposable come Collaborate Private levels Tier 2 & tier 3
cities Enter new consumer goods segments Sales Promotion techniques at Shoppers
stop 1. Price-off offer: Under this offer, products are sold at a price lower
than th e original price. This type of scheme is designed to boost up sales in
off-seaso n and sometimes while introducing a new product in the market.
Example: • • Buy 2 me n T-shirts at Rs. 799/- and 1 T-shirt at Rs. 499/-
(MRP: Rs.499/Tshirt). Buy 3 w omen T-shirts at Rs. 999/- (MRP: Rs.499/Tshirt).
2. Discounts: Under this, the p roducts are sold at a discounted price with
percentage discounts on the original price. This type of scheme is designed to
boost up sales in off-season. Example : • 20% off on all the men formal shirts
and trousers.

37. • 20 % off on all the women formals and casual outfits. 3. End of season sale:
End of Season sale or stock Clearance sale is been conducted at Shopper s
stop. Th ey are offering surprising discounts upto 50% on all the men and women
apparels. These offers were given last year for limited period in the month of
September. 4. Seasonal offers: Shopper s stop provides the customers with
various discounts a nd price-off offers at the stores on the seasons like winter
and monsoon. This t ype of scheme is designed to boost up sales in these
seasons. Different offers a re provided by the stores during these periods from
June to January.

38. 5. Festive offers: Shopper s stop have come up with festive offer during
Diwali an d Christmas by giving away gifts for purchases that are made at the
store for ch eaper price or free. If you purchase men apparel worth Rs. 6000/-,
the you are e ntitled to get a Polo bag worth Rs. 2000/- absolutely free.

39. 6. Gift Vouchers: Shoppers Stop offer Gift Vouchers of denomination ranging from
Rs. 250 to Rs. 5000. 7. Republic Day offer: Shopper s stop conducted 3 Day
Surprise offer on the occasi on of Republic Day, giving flat 20 percent discount
coupons on purchase of goods worth Rs. 3000/-, which can be redeemed on the next
purchase.

40. 8. Contests: Shoppers Stop has announced a 101-day Shopping Bonanza to pull in c
ustomers into the stores. Lucky draw winners of the contest will get to see one
of the seven wonders of the world and two lucky couples who get the grand prize
will be treated to a roundtrip which will cover all the seven wonders of the wor
ld. 9. Shopper s stop loyalty program (First Citizen Citibank credit card) As
s Fi rst Citizen Credit card member, you get the benefits of the Shopper s
Stop loyalty program, First Citizen. The First Citizen membership entitles you
to exclusive privileges such as product previews, priority billing and other
special benefits . Add to this, the fabulous experience of shopping at the
premier Shopper s stop o utlets across the country.

41. 10. Exchange offer: Under this offer, you have to bring in you old salwar kameez
and take away a new one with discounted price.

42. Style, affordable prices, quality these are the factors that have shaped Westsid
e s success story in the retail fashion stores business. Launched in 1998 in Ban
galore, the Westside chain has, ever since, been setting the standards for other
fashion retailers to follow. Established in 1998 as part of the Tata Group,
Trent Ltd. operates Westside, one of India s largest and fastest growing chains
of retail stores. The Westside st ores have
Â
Â

43. numerous departments to meet the varied shopping needs of customers. These inclu
de Menswear, Women s wear, Kid s wear, Footwear, Cosmetics, Perfumes and
Handbags, H ousehold Accessories, lingerie, and Gifts. The company has already
established 3 6 Westside departmental stores (measuring 15,000-30,000 square
feet each) in Ahm edabad, Bangalore, Chennai, Delhi, Gurgaon, Ghaziabad & Noida
(to be considered as 1 city), Hyderabad, Indore, Jaipur, Kolkata, Ludhiana,
Lucknow, Mumbai, Mysor e, Nagpur, Pune, Rajkot, Surat, Vadodara and Jammu. The
company hopes to expand rapidly with similar format stores that offer a fine
balance between style and p rice retailing. Trent ventured into the hypermarket
business in 2004 with Star B azaar, providing an ample assortment of products
made available at the lowest pr ices, aptly exemplifying its  Chota Budget,
Lambi Shopping  motto. At present Star B azaar has 4 stores in 3 cities
located in Ahmedabad, Mumbai and Bangalore. This store offers customers an
eclectic array of products that include staple foods, beverages, health and
beauty products, vegetables, fruits, dairy products, consu mer electronics and
household items at the most affordable prices. This story be gan circa 1998 when
The Tatas acquired Littlewoods   a London based retail chain. This acquisition
was followed by the establishment of Trent Ltd (a Tata enterpri se that
presently operates Westside). Littlewoods was subsequently renamed Wests ide. In
a rapidly evolving retail scenario, Westside has carved a niche for its brand of
merchandise creating a loyal following. Currently, the company has 36 W estside
stores measuring 15,000-30,000 square feet each across 20 cities. With a variety
of designs and styles, everything at Westside is exclusively designed a nd the
merchandise ranges from stylized clothes, footwear and accessories for me n,
women and children to well-co-coordinated table linens, artifacts, home acces
sories and furnishings. Well-designed interiors, sprawling space, prime location
s and coffee shops enhance the customers  shopping experience. SWOT ANALYSIS
OF WESTSIDE:

44. Strengths • • • • • • • Growing at the faster pace Brand name of
TATA s. Good customer base. arels are cheaper Attractive promotional schemes
and heavy discounts Quality and branded stuff only Location advantage Weakness
• • • • • • Not much product range for middle class Facing problems
due to politica l environment Need help in taking over properties and real
estate Need some conc essions from labor laws Lack of differentiation Poor
inventory turns and stock a vailability Opportunities • • • Huge untapped
market Rising disposable income Urbanization Threats • • Competition from
organized retail players Competition from local retaile rs. Ladies Section

45. Men Section Kids Section PRIVATE LABELS Private label products or services are
typically tho se manufactured or provided by one company for offer under another
company s bra nd. Private label goods and services are available in a wide range
of industries from food to cosmetics to web hosting. They are often positioned
as lower cost alternatives to regional, national or international brand.
Westside has many pri vate labels in its merchandise portfolio. Private labels
in Westside include• • • 2F4U SRC Gia
Â

46. • • • • Urban angel Intima David Jones Ascot All these brands are
produced for Westside only and can be found in Westside onl y. These apparel
brands are given separate space for displaying their merchandis e and more
promotional offers are there on them to increase their sales. At some places,
these private brands are mixed with branded clothes so in that case the se
private labels are put in lower shelves. At eyesight level, branded clothes a re
put. Sales Promotion techniques at Westside 1. Festive offers: With this Diwali
Delight offer from Westside if you shop from their store for Rs. 5000 and above
you get a gift voucher from them for Rs. 100 0 for free. And if you shop for Rs.
2500 and above you get a free gift voucher w orth Rs. 400. This is valid only if
you purchase their in-house merchandise or b rands only and not valid if you
chose to buy other brands available at their sto re. 2. End of season sale:

47. End of Season sale or stock Clearance sale is been conducted at Westside. They a
re offering surprising discounts upto 50% on all the men and women apparels. The
se offers were given last year for limited period in the month of January and Ju
ly. 3. Gift Vouchers: Westside offers Gift Vouchers of denomination ranging from
Rs. 100 to Rs. 10000.

48. 4. Westside loyalty program (Club west card program): An assured return-and-
exchange policy reinforces customer confidence in the chai n. Another winning
Westside idea is Club West, a customer loyalty program launch ed in May 2001.
The 30,000-plus members of this club get rebates at restaurants and on holiday
packages from the Taj Group of Hotels, home delivery of alteratio ns, and best
of all, special shopping hours on the first day of any discount sal es event
organized by the chain. 5. Contests:

49. Shop for Rs 1,000 at Westside, participate in the lucky draw and win the grand p
rize a complete holiday packages for two to Macau. You could also win holiday pa
ckages to breathtaking beach destinations in India including Goa, Kovalam, Puri
and Pondicherry. 6. Discounts: Under this, the products are sold at a discounted
price with percentage discounts on the original price. This type of scheme is d
esigned to boost up sales in off-season. Example: • • 20 - 50% off on all
the men fo rmal shirts and trousers. 20   50 % off on all the women formals
and casual outfit s. Findings

50. Sales Promotion 1.End of season 2.Festive Promotions (Diwali, Christmas etc)
Loyalty card Progra mme Special Promotion (event) Joint promotion Media used
Pantaloon Yes Yes Westside Yes Yes Shopper s Stop Yes Yes Yes Yes Yes Yes
(Exchange offer) No Yes (Exchange offer) No Print, electronic, hoardings, In-
store media Discounts, gift vouchers, free gifts, exchange offer, End of season
sale, Loyalty program No Hoardings, print, electronic (SMS, E-mail), POP In-
store media Price off, fre e gifts, exchange offer, Festive offers, End of
season sale, Loyalty program No Print, electronic, hoardings, In-store media
Gift vouchers, discount, contest , End of season Promotion type • From the
above table, it is clear that all three stores engage in end of season sale.
This reinforces the fact that seasonality affects apparel sector and hence it
becomes critical for a retailer to clear off the stocks at the end of season ,
otherwise, he may have to incur substantial inventory carrying costs, allocate
scarce shelf space and out of fashion apparels maybe worthless. Thus stock clea
rance seems to be very important objective for apparel retailer in using end of
season sale wherein discount given is upto 50% of the MRP (Maximum retail price)
.

51. • All the three stores use loyalty cards to reward loyal users and encourage
them to visit the store often and buy more by offering wide range for men, women
and children. Some store also offer home furnishings, accessories and footwear,
ther eby providing convenience for one stop shopping. • Joint sales promotion
involves tieing up with other brands like, MacDonald, Havm ore, Gold s (local)
Gym and Kaya skin clinic, etc. None of the three stores has ye t explored avenue
of joint sales promotion. Such joint promotions have advantage s in terms of
sharing costs of promotions, cross selling opportunities to each o ther s
customers, higher visibility etc. • In terms of type of consumer sales
promotions, almost everyone used discount, co upon programmes and lucky draws,
contests, gift, buy one get one free type of pr omotions. Pantaloon and
Shopper s Stop uses exchange offer.

52. Conclusion Usage of sales promotion activities has a direct impact on consumer
behaviour as it motivates a consumer to buy now rather than in future, enhances
value of an offer temporarily till the promotion period, encourages switching,
reinforce or reward loyalty etc. Broadly, objectives set for these activities
are; • To generat e store traffic, • To move excess inventory, • To
enhance store image and • To create a price image (high or low). Traffic
building is achieved by special event promo tions like Diwali, Rakshabandhan
promotions; inventory reduction through end of season sale; creation and
building store image through feature advertising and d isplays and joint
promotions and price image by highlighting the discounts. It h elps consumer
reduce not only financial risk but also psychological and social r isk by making
consumer confident of his/her purchase, conformation to group norm s by shopping
at famous stores/brands and possibility of acquiring well known br anded apparel
during promotions. Promotions may induce non buyers to walk in to the store and
loyalty programmes may encourage them to buy more, more often or u pgrade to
better quality. Exciting promotions also have tendency to generate pos itive
word of mouth and help consumer feel a smart shopper. Thus, not only provi de
utilitarian benefits like, saving of money, time or quality up gradation but
hedonic benefits like feeling confident, feeling of excitement and entertainment
etc. Execution of the sales promotion activities also require proper
coordination of selling effort and availability of promoted merchandise. Apparel
sector is likel y to grow with growing Indian economy. Many multinational
players either have al ready plunged into Indian market or plan to do so in
apparel sector. They will b ring many promotional practices which they have been
following in developed mark ets which will increase the use of sales promotion
activities even further. Indi an brands will have to withstand turbulent
conditions and learn to survive. If t he role of such promotional activities is
understood well, it may help any playe r a long way to survive and grow.

53. Bibliography • • • www.google.com www.pantaloon.com www.mywestside.com •
www.shoppersstop.com • http://besteoffers.blogspot.com/2009/12/free-
discountcoupon-of-25-of.html • www.futurebazaar.com