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  1. 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. 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 goods'. 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 ultimate consumers. wholesalers Manufacturers Retailers Ultimate Consumers
  3. 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 Provide assortment Breaking bulk Inventory holding and Provide services 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. 3. Globalisation
  4. 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. Retail characteristics 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. 5. between the price and assortment of merchandise they sell and services they offer to the customers.
  6. 6. Chapter 2 RESEARCH METHODOLOGY 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:  Exploratory Research  Conclusive Research 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. 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 projects. 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..  Personal Interview  Close observation  Survey conduction  Group Discussion 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 –  Internet  Books  Company website
  8. 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. They are:  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. 2.9RESEARCH METHODOLOGY 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. 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. 10. 2.11SOURCES OF DATA Primary Data The Primary Data is collected through questionnaire survey to customers. Secondary Data 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. Questionnaire Administration Information is gathering through questionnaires from customers of Bangalore. Sampling Sample size = 100 Statistical Tools For data analysis statistical tools used are simple percentage.
  11. 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 price. 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. 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. 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. 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. 15. Chapter 3 INDUSTRY/COMPANY PROFILE 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 process. 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. 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. 3.1.1 Background: 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 into India. 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. 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 retail presence. 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. 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 the consumer. 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 retailers., The Economist forecasts that Indian retail will nearly double in economic value, expanding by about $400 billion by 2020.The projected increase alone is equivalent to the current retail market size of France. In 2011, food accounted for 70% of Indian retail, but was under-represented by organized retail. A.T. Kearney estimates India's organized retail had a 31% share in clothing and apparel, while the home supplies retail was growing between 20% to 30% per year. These data correspond to retail prospects prior to November announcement of the retail reform. Major Indian retailers  REI AGRO LTD Retail: 6TEN and 6TEN kirana stores  Future Groups-Formats: Big Bazaar, Food Bazaar, Pantaloons, Central, Fashion Station, Brand Factory, Depot, aLL, E-Zone etc.  Raymond Ltd.: Textiles, The Raymond Shop, Park Avenue, Park Avenue Woman, Parx, Colourplus, Neck Ties & More, Shirts & More etc.
  19. 19.  Fabindia: Textiles, Home furnishings, handloom apparel, jewellery  The Tata Group-Formats: Westside, Star India Bazaar, Steeljunction, Landmark, Titan Industries with World of Titans showrooms, Tanishq outlets, Croma.  Reliance Retail-Formats: Reliance MART, Reliance SUPER, Reliance FRESH, Reliance Footprint, Reliance Living, Reliance Digital, Reliance Jewellery, Reliance Trends, Reliance Autozone, iStore  Reliance ADAG Retail-Format: Reliance World  K Raheja Corp Group-Formats: Shoppers Stop, Crossword, Hyper City, Inorbit Mall 3.1.4 Government Initiatives Finally paving way for foreign retailers like Wal-Mart, Tesco and Carrefour to open independent retail stores in India, the Government has initiated steps towards allowing 51 per cent FDI in multi-brand retail and raising FDI limit in single brand retail from 51 per cent to 100 per cent. Road Ahead The BMI India Retail Report for the first quarter of 2012 released forecasts that the total retail sales will grow from US$ 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. 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$18-20 billion market. It is expected to expand to 14-18% by 2015 i.e US$ 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 Diagram 3.1
  21. 21. Table 3.1 3.2COMPANY PROFILE 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. 201 204 238 278 321 368 421 496 0 100 200 300 400 500 600 1998 2000 2002 2004 2006 2008 2010 2012 India's Total Retail Size (in billions Rs)
  22. 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). 2000 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. 2002 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. 23. Preferential Issue of 8,65,000 Equity shares of Rs.10 each at a premium of Rs.40 per share to Promoters & Associates. 2003 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 2004 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 country. 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 2005 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. 2006 Pantaloon Retail enters into an agreement with CapitaLand Singapore
  24. 24. 2007 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. 2008 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 niche. 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. 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, 3.2.3 Vision , Mission and Quality policy Group Vision 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. Mission 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 economic development. 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.
  26. 26. Values 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 QUALITY POLICY: 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 Group are: E-commerce: Pantaloons‟ website 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 sports. 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. 27. 3.2.4 Pantaloons Product Offerings: Table 3.2 MEN’S WEAR LADIES WEAR KID’S WEAR John Miller Scullers Indigo nation Urbana Daniel Hechtar Urban yoga Lee cooper JM Sports Bare Denim Rig Ajile Lombard Bare Leisure Honey Akkriti Rangmanch Trishaa Jealous 21 Honey Annabelle Mix & Match Ajile Rig Chalk Bare kids Sach 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. 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. 29. 3.2.8 Competitors Information Shoppers Stop 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 in India. Tata Group 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 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 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.
  30. 30. Welspun 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 (Westside) 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 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. 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 retail market: 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. 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. Finance management 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. Purchasing 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. 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. Handling Inventory 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 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. Accounting 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. 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 these cities. 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. FUTURE GROWTH 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. 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. STRATEGY 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. 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 one roof. 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 “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.
  37. 37. SYSTEM 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. STAFF 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. 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. SKILLS 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 structure. STYLE 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. 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. SHARED VALUES 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 the organization 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. 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 company. 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 Age Group No. Of respondents Percentage 18-30 39 39.00 30-45 25 25.00 45-60 21 21.00 60 & Above 15 15.00 Total 100 100.00 Source: Questionnaire
  41. 41. Interpretation 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 Hindu 91 91.00 Muslim 6 6.00 Others 3 3.00 Total 100 100.00 Source: Questionnaire 18-30 30-45 45-60 60 & Above Percentage 39 25 21 15 0 5 10 15 20 25 30 35 40 45 Percentage Graph 4.1: Age of the Respondents
  42. 42. Interpretation 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 Businessman 27 27.00 Employee 49 49.00 Housewife 22 22.00 Total 100 100.00 Source: Questionnaire Interpretation In the above table we can see that 27 % respondents were businessmen, 49% of them were employees and 22% were housewives. 0 10 20 30 40 50 60 70 80 90 100 Hindu Muslim Others 91 6 3 Graph 4.2: Religion of the Respondents Percentage
  43. 43. Table 4.4: Sources for Purchase of food items by the Respondents Type of store No of respondents Percentage Hyper Market 45 45.00 Super Market 27 27.00 Convenience Store 28 28.00 Total 100 100.00 Source: Questionnaire 0 5 10 15 20 25 30 35 40 45 50 Businessman Employee Housewife 27 49 22 Graph 4.3: Occupations of the Respondents Percentage 45% 27% 28% 0 Hyper Market Super Market convenience Store Graph 4.4: Purchase of fooditems of the Respondents
  44. 44. Interpretation: 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 Source: Questionnaire 0 10 20 30 40 50 60 Once in month Twice in a month Once in a week Twice in a week 55 20 17 8 Graph no. 4.5 Frequency of Purchase of Non-food Items Percentage
  45. 45. Interpretation: 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 week. Table 4.6: Reason for purchase from that place Particulars No of Respondents Percentage Convenience 33 33.00 No alternatives 5 5.00 Good relationships 10 10.00 Availability of many items 52 52.00 Total 100 100.00 Source: Questionnaire Interpretation 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 33 5 10 52 0 10 20 30 40 50 60 Convenience No alternatives Good relationships Availability of many items Graph no. 4.6 Reason for purchase from that place Percentage
  46. 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 Source: Questionnaire 70% 79% 71% 65% 75% 40% 0% 20% 40% 60% 80% 100% Pantaloon Life Style Reliance More Soppers' Stop West Side Graph no. 4.7 Popular retail stores
  47. 47. Interpretation: 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 Life Style 19 19.00 Pantaloon 18 18.00 West Side 8 8.00 Shoppers‟ Stop 20 20.00 Reliance 12 12.00 Big Bazaar 8 8.00 Central 15 15.00 Total 100 100.00 Source: Questionnaire Interpretation: 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. 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 Source: Questionnaire 19% 18% 8% 20% 12% 8% 15% 0% 5% 10% 15% 20% 25% Life style Pantaloons West side Shoppers's Stop Reliance Big Bazaar Central Graph 4.8: Purchase of Non-food items from the Respondents
  49. 49. Interpretation: 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 Source: Questionnaire 0 50 100 Friends Parents/relatives Internet Others 53 20 7 20 Graph no. 4.9 Awareness Sources for Pantaloons Percentage
  50. 50. Source: Questionnaire Interpretation: 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. 0 10 20 30 40 50 60 70 80 90 100 Reliability Customer Service Availability of products All the above Graph no. 4.10 Reason for choosing Pantaloons for Purchase Percentage
  51. 51. 4.3 SHOPPING EXPERIENCE AND THE LEVEL OF SATISFACTION AT PANTALOON STORES 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 Source: Questionnaire Note: Recorded multiple responses from the respondents & figures in bracket shows the percentage of respondents. Interpretation: 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. 98 95 89 84 86 88 90 92 94 96 98 100 Joyful Experience Value for Money Better Discounts & Offers Graph no. 4.11 Shopping Experience Percentage
  52. 52. Table4.12: Customer Satisfaction towards Pantaloon with respect to the selected parameters (Percentageof Respondents) Parameter Satisfied Moderately Satisfied Not Satisfied 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 respondents. Source: Questionnaire Note: Recorded multiple responses from the respondents & figures in bracket shows the percentage of respondents. 59 82 27 37 62 32 16 36 12 22 9 2 37 51 16 0 20 40 60 80 100 120 Not Satisfied Percentage Moderately Satisfied Percentage Satisfied Percentage Graph no. 4.12 Customer Satisfaction towards Pantaloon
  53. 53. Interpretation 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 Source: Questionnaire Note: Recorded multiple responses from the respondents & figures in bracket shows the percentage of respondents.
  54. 54. Interpretation 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. 57 63 31 78 27 38 43 19 0 10 20 30 40 50 60 70 80 90 Percentage Graph no. 4.13: Problems Faced by the Customers at Pantaloons
  55. 55. Chapter 5 FINDINGS, SUGGESTIONS & CONCLUSIONS 5.1 FINDINGS  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% others.  27 % respondents were businessmen, 49% of them were employees and 22% were housewives.  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. 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. 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 and Muslims.  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. 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. 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. 60. Chapter 6 BIBLIOGRAPHY Book Referred 1. Philips Kotler – Marketing Management – 13th Edition Web sites (Links) Company Data Journal 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.
  61. 61. ANEXTURE Questionnaire The information given by you will be used for research purpose only Name. …………………………….. Mobile. No. ………………………. Occupation………………………... Income (per annum)………………. Expenses (Rs/month) on a. Food………………….. b. Non-food……………... Purchase pattern: 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 a. Convenience b. No alternatives c. Good relationships d. Availability of many items 5. Name of the popular retail stores you know in Bangalore 1. 2.
  62. 62. 3. 4. 6. How many Pantaloon outlets you know in Bangalore……………. 7. Do you know what kind of store Pantaloon is? a. Supermarkets b. Discount Store c. Hypermarket d. Convenient store 8. How you came to know about Pantaloons? a. Friends b. Parents/relatives c. Internet d. Others…………………… 9. The pantaloon is famous for a. Reliability 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 a. b. c. 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. 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? Score- 15. How much satisfied are you with the Ambience of PANTALOON? score 16. How much satisfied are you with the Location of Pantaloons? Score- 17. How much satisfied are you with the Parking reimbursements provided by Pantaloons? Score- 18. Rate your satisfaction level of shopping at Pantaloon Score- 19. List the problems faced by you at Pantaloon? 1. 2. 3. 4. 20. Please, suggest some solutions to overcome from those problems by you at Pantaloon? 1. 2. 3.