Pantaloon Retail Indias Leading Retailers Marketing Essay

Pantaloon sell Indias Leading sellers grocery store EssayPantaloons origin layabout be traced to 1987 when the comp each(prenominal) was incorporated as Manz Wear secluded Limited. Origin all toldy incorporated as Manz Wear Private Limited on October 12, 1987.The Companys name was changed to Manz Wear Limited on family 20,1991, further to Pantaloon Fashions (India) Limited on September 25, 1992 and to Pantaloon retail (India) Limited on July 7 1999.The company launched Pantaloons trouser, Indias premier(prenominal) formal trouser brand. In 1992, Pantaloon launched its IPO. In 1994, The Pantaloon Shoppe exclusive mens go into store in franchisee format was launched across the country. Pantaloon sentienceted distribution of brand garments by dint of with(predicate) multi-brand trade in outlets across the nation. In 2001, self-aggrandizing funfair, Indias eldest hyper grocery mountain range was launched. In 2002, viands bazaar, the supermarket chain was launched. In 2006, futurity crown Holdings, the companys m hotshottary arm launched existing estate memorys, Kshitij and Horizon and virtuoso-on- unmatchable equity fund Indivision. The company is to a fault planning forays into insurance and consumer credit.The Pantaloon Retail (India) Limited, bring downed the sell market in 1997 with its first flagship store hosted by Kolkata. Pantaloons began as a counterfeit sell chain. The incoming conclave launched it as its introductory surmise. Such was its popularity that by the course 2001, many to a greater extent sub- sell describes were launched that dealt in specific sell analogous footwear, fashion accessories, intellectual nourishment, grocery and electronics.Registered Office of the CompanyPantaloon Retail (India) LimitedPantaloon acquaintance House,Shyam Nagar, Off. Jogeshwari Vikhroli Link Road, Jogeshwari (East),Mumbai 400 060Registration No. 44954/1987Registrar of Companies at Mumbai, Maharashtra find at Hakoba Mill C ompound, Kalachowki,Mumbai 400 033.Headquarters MumbaiIndustry sell male p atomic number 18nt Kishore BiyaniArea served India (7 million squ atomic number 18 feet of sell space)P bent company Future GroupWebsite www.pantaloon.comRetail IndustryRetailing is the worlds full-grownst private industry. Retail is the worlds colossalst private industry with global sell gross sales of roughly USD 8 trillion. Retailing is in addition one of the biggest contributors to the Gross Domestic Product (GDP) of most countries and in like manner one of the biggest employers. (Source CII McKinsey Report titled Retailing in India, the Emerging Revolution)In India, however, the retail sector has seen a lofty level of fragmentation with a large sh are held by un create players.India has a large heel of retail enterprises. With close to 12 million retail outlets India has one of the highest retail densities in the world. In terms of the structure, the industry is fragmented and predominantly con sists of s all overeign, owner-managed sells. The retail condescensiones take a contour of traditional retail formats, such as kirana stores which stock basic plate necessities (including food products), street markets-regular markets held at heady centres retailing food and general merchandise items, street v fetch upors mobile retailers basically selling perishable food items-fruits, vegetables etc and small non specialized retailers.Growth of organize Retail in IndiaIndia is expected to show similar trends as Indian consumers in the past grant shown an ability to leapfrog evolution cycles as has happened in the case of various consumer products such as mobile phones.KSA Technopak estimates organized retail in India to trig up 12% to 13% of the wide retail market by 2010 with sales of Rs. 1700-1800 billion, aided by improved real estate infrastructure and easier access to capital.Rs(billion)20022010Estimated size of retail in India10,70014,000 office of organised reta il in India(%)212-13Size of organised retail in India2251700-1800Source KSA TechnopakThe Indian retail industry is evolving in line with the changing customer aspirations across product separates, with modern formats of retailing emergent. report of Organized RetailA break-up of sales in organized retail shows Lifestyle (clothing and textile, footwear, home, watches and jewellery and health and peach tree) as the largest segment accounting for 73% in rank terms. This is followed by food and grocery accounting for 14% of the organized retail re regard as.Break-up of consumers ingestion in organized retail rapid appendage of organized retailing is expected in the food segment. We moot this can be attributed to the highly unorganized nature of the market ongoingly, which gum olibanum presents an attractive potential, and the growing preference of consumers to shop at modern retail formats. Clothing is the opposite segment expected to show high growth potential.Factors affect ing changes in the retail sectorAn analysis of private last(a) manipulation expenditure in India suggests that the food, beverages and tobacco segments constitute about 50% of total household expenditure, with clothing and footwear contributing dear roughly 5%. However contribution of food and groceries to organized retailing is just 14%.There are a large variety of retailers operational in the food retailing sector such as independent grocers, fair price shops, food specialists etc.A greater cast of higher income Indians, prefer to shop at supermarkets because of contraption, range of merchandise, higher standards of hygiene and the attractive ambience.Among the segments of organized retail, food retail is expected to develop the fastest. passage forward, it is expected that supermarkets will be the fastest growing food retailers. Their sales are expected to grow by about 40% per course during 2003-2008 (Source Retailing in India Euro monitor 2004 report).We study the t raditional Indian consumer who is like a shot becoming more fashion and brand conscious welcome more sophisticated outlets retailing footwear which is evident from the fact that the consumer spend on footwear has increased from 1% in 1999 to 2.3% in 2003.With growth in incomes, Indians eat been spending more on health and sweetheart products. As in the case of other retailing sectors, small single-outlet retailers also get the hang sales of health and beauty products.another(prenominal) interesting trend that is emerging is the increasing spend on leisure and entertainment. Indian consumers who were traditionally slow to spending money on entertainment have confidential informationted spending on eating out, movies and theatre.The entry of a large number of foreign consumer fixed companies into the Indian market during the 1990s after the government liberalized its foreign enthronement and import policies transformed the consumer durable sector dramatically. A much large v ariety of consumer electronic items and household appliances became available to the Indian customer. Competition among companies to sell their brands provided a solid impetus to the growth for retailers operating in this sector. neo Retail FormatsSome of the modern retail formats and their value positions are presumption below.Department storesThese large stores retail primarily non-food items such as apparel, footwear, accessories, cosmetics and household products. They stock multiple brands across product categories, though many of them heighten on their own store label (on the lines of Marks Spencers and St. Michael).Several local anesthetic department store chains have airfoiled shop in India in the past five forms. We deal the convenience factor joined with the aspirational perception of shop in a department store has contributed to their growth. The larger chains of department stores (Namely Pantaloons, Shoppers dwell,Westside and Lifestyle) have presence in the me tros and mini metros.SupermarketsA supermarket is a store which is more of a large self-service grocery store selling groceries and dairy products and household goods that are consumed regularly. These are region stores bring home the baconing home and person-to-person care products and food products that a typical household consumes on a day to day basis.These stores offer convenience of shop by making available a large variety of products at one place. Some of the well k instantlyn supermarket chain includes nutrient Bazaar, Nilgiris, fare World, Apna Bazaar, Trinethra etc.Hypermarkets/Discount storesA hypermarket is a store which combines a supermarket and a department store. The result is a retail facility which carries an marvelous range of products down the stairs one roof, including full lines of fresh groceries and apparel. It is a large format store that aims at retail consolidation by macrocosm a single point contact between the brand owners and customers. They ar e planned, constructed, and executed in a manner that a consumer can ideally satisfy all of their routine weekly shopping of necessity in one trip to the hypermarket. Large variety of products is available at levelheaded prices with discounts built in for volume barter ford. Big Bazaar, Spencers, champion India Bazaar are examples of hypermarket formats.Seamless MallSeamless mall is a format which is comparatively tender in India. In this format, various brands operate their retail domain of a component parts without any wall between them, providing a seamless shopping experience. This makes it possible for shoppers to examine brands with ease while they shop. We believe this also means that the store can reallocate space more easily based on merchandise/brand performance and customer feedback. Besides offering apparels, accessories and lifestyle products these malls are also equipped with entertainment and leisure facilities. Central is an example of a seamless mall.Speciali ty storesSpecialty stores as the name suggests are stores that specializes in a particular offering. A specialty store carries a rich assortment within a narrow line of goods. Furniture stores, florists, sporting-goods stores, and bookstores are all specialty stores. Examples of specialty stores in India would include satellite Sports, aLL, Planet M, Musicworld, Crossword etc.FUTURE GROUPIntroductionRetail forms the karyon business activity at Future Group and most of its businesses in the consumption space are built around retail. Future Groups retail net invent touches the lives of more than 200 million Indians in73 cities and 65 rural locationsacross the country. The group currently operates around1,000 storesspread over16 million square feetof retail space. Present in the value and lifestyle segments, the groups retail formats cater to almost the entire consumption expenditure of a wide cross- segment of Indian consumers.GROUP VISIONFuture Group shall deliver E realthing, Eve rywhere, Every time for Every Indian Consumer in the most profitable manner.GROUP MISSIONWe share the vision and touch 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 trend go downters in evolving speech communication formats, creating retail realty, making consumption affordable for all customer segments for screen outes and for masses.We shall impress Indian brands with confidence and renewed ambition.We shall be efficient, cost- conscious and committed to note in whatever we do.We shall ensure that our positive attitude, sincerity, humility and united finale shall be the driving force to make us successful.The Future Group in its turn has many verticals other than just Pantaloons and its associated fashion retail chain. In fact, there are 6 verticals in all under the domain of the Future Group that almost covered the entire desktop of Indian consumpt ion. These 6 areFuture Retail (retail related)Future Capital (Finance related)Future Brands (Brand Management related)Future Space (Real Estate related)Future Logistics (Management and diffusion related)Future Media (Retail Media Management related)Led by Pantaloon Retail, the Future groups flagship company, the group manages some of Indias most popular retail chains likeFashion The group offers a variety of options in fashion. Its brands include aLL, Blue Sky, Central, Etam, Fashion Station, Gini Jony, Navaras, Pantaloons, and tip 10. nutrition In food business, the group offers a host of options. fare Bazaar a chain of large supermarkets Brew Bar a beer bar caf Bollywood a national chain of eateries Chamosa a pan-Indian chain of sting counters, and Sports Bar a bistro focused on the world of sports. piazza 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 subvention 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 buyback and interactive video games to bumper cars.Wellness Beauty Options are Health colonization a state-of-the art spa and yoga centre Star Sitara Beauty beauty shop 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 tubful accessories.Books Music Future Groups brand Depot offers Books, CDs, and stationery items.The group also operates Indias leading rural retailing chain,Aadhaarthat is present in over 65 locations in rural India. Aadhaar, an agri-service cumrural retail initiative, provides a have sex solution provider for the Indian farmer.PANTALOONS FRESH FASHIONSFrom our beginning in 1987, we have today evolved as one of the leading manufacturer-retailer and are among the pioneers in screen background up a nation-wide chain of large format stores in India. We believe that the various initiatives taken by us have played a expose role in enhancing the standards of retail in the country.We started our operations by selling branded garments under Pantaloon, Bare and John Miller brands. We set up our first menswear Pantaloon Shoppe Outlet in 1993. Our business has grown from one store in Kolkata in 1997 occupying an area of 8,000 Sq ft to 72 stores, unconnected from our 22 factory outlets located in the multiple cities occupying an aggregate area of 21,07,608 Sq. ft. We focus on the Lifestyle segment with 14 Pantaloon stores, 3 Central Malls, 2 aLL, 2 Fashion Station and 1 MeLa store. In the Value offering, we c ater to the mass through our 21 Big Bazaar and 30 diet Bazaar outlets.Pantaloons believe that managing customer expectation by offering them all the requirements for their entire family under one roof is the let on to being a successful retailer, and hence have built our business model around Family focus rather than individual focus. They believe addressing the family attracts more customers into the store. They retail a range of branded and Private Label apparel, footwear, perfumes, cosmetics, jewellery, lash products and accessories, home products, books, music and toys in our stores. To complete the idea of a family store, in any case garments, we also retail household items, consumer durables, and home furnishings, apart from food and personal care products. This is complemented by cafes, food stalls, entertainment, personal care and various beauty related services. Promotions and events are an integral part of our service offering to our customer, which overhauls us creat e a unique shopping experience.They have also entered into partnerships/ occasion ventures to expand our offerings from home to apparel to household products to durables etc. They believe their focus on customers supported by systems and processes and a committed work force are the key factors that have contributed to our success and will help us scale up as we embark on our strategic growth plan.Core values followed by Pantaloons, India Indianness To boast confidence menstruate To understand and respect the global nature laws. Adaptability To become adaptable and pliant to accomplish the challenges. Positivity and simplicity, in the business thought and action. To nurture and keep an eye on long-term relationships. To be receptive and cave in to the innovative ideas, information and knowledge. To value all(prenominal) customer and being modest in the conduct.Major Achievements of Pantaloon RetailChosen as International Retailer for the Year 2007Chosen as Emerging Market Retai ler of the Year 2007Best Employers in India (Rank 14th) in the Hewitt Best Employers 2007 survey.Best Managed Company in India (Mid-cap) for the year 2006.Won Images Retail Awards 2006 for Best Value Retail Store, Best Retail Destination, and Best Food Grocery Store.Retail Face of the Year Kishore Biyani some Admired Food Grocery Retail Visionary of the Year Kishore BiyaniPositioningIn the life-style segment (Pantaloons) the positioning of the store is very different. The store is very open and has a soothing music when the customer enters. The store is very open and spacious the door of the store is always open which is inviting customers. Since the store is very spacious Pantaloons has separate its products in a Demographic way and this is the very(prenominal) in all the outlets .The entrance would have the cosmetics jewellery etc then is the ladies sectionwhich first has the Indian wear then the western after that its the mens wear and then the sportswear. Pantaloons brands like UMM, DJC are always positioned at the eyelevel. There is a lot of detailing on the presentation of the products which are then displayed on the mannequin. The company would place its beat products on the mannequin. Pantaloon always positions its product at a place where the consumer would see the product once and is easy to locate. situationplays a major(ip)(ip) role in positioning the product in their store to enhance sale. The company would also position itself according to the needs of the youth because it is the target market and likes things fresh.BUSINESS STRATEGYPromotional scheme-Under the market strategy promotional idea is very important. institution provides some schemes or rebates to retailers or consumers. They make advertisement according to well-provided of the people and the feature of the product. So, on the basis of marketing strategy an government activity runs in the market. It is several instances of which makes helpful to increase sales and turnover of the placement. Pantaloons is the first company to promote their products through movies like Na Tum Jano Na Hum and many others, since the companys focus is youth they tend to promote their products through youth icons like Mahendra Singh Dhoni, Bipasha Basu, they also tend to sponsor events which are watched by the youth like the Pantaloons Femina Miss India which they relate to or is liked by the youth. The company also promotes its products through discounts. For Example-In Pantaloons (life style segment) on a get of one t-shirt(UMM)you would have to pay Rs349 and on a purchase of dickens one would buy it for Rs549.The company keeps yearly or quarterly discounts. Pantaloon majorly promotes its brands through promotions in events which involve youth like Malhaar, Umang and popular college festivals etc.Sectoral Strategies India has been a country which followed the concept of an organized retail till very recently when the real retail boom happened. The major change was b rought in by Pantaloon and Shoppers Stop. Both these companies belonged to a family and the concept of malls started in India and within 5 to 9 years has become a huge sector. Retail contributes 10% to Indias GDP. The retail sector in the country is around $350billionand is expected to grow at a very smooth pace. The organized retail sector is segmented into different types like the hypermarket, departmental store, specialty stores ,discount stores and there are other types.PRODUCT CATEGORYPantaloon sold apparels and accessories categorized under-Mens formalMens chance(a)Ladies ethnic Ladies westernChildrens wearPantaloon develops ternary types of merchandise-Classic typeFashion typeCollection typeLOYALTY PROGRAM verdure tantalizeYour cat valium Card is your passport to a whole new world of exclusive benefits and privileges.Instant discount* for all(prenominal) time you shop at PantaloonsExclusive shopping days to get hold of in style(p) merchandiseRegular updates on collecti ons and promos via catalogues, sms and emailSpecial invites to the most accident eventsExtended exchange periods and complimentary drops for alterationsExclusive billing counters and much more* Categories valid for Green Card DiscountsApparel, Perfumes Cosmetics, Toys, Bluesky, aLL, Depot, Planet Sports Accessories.MEMBERSHIPWhen you shop with Green Card, you get rewarded instantly,Online purchases are currently not eligible for Green Card discounts or counted in your purchases. This feature would be available in the skilful future.1 Star MembersGift Voucher worth Rs. 200 on enrolment3 Star Members5% discount on every purchase5 Star MembersAn exclusive 7.5% discount on every purchase7 Star MembersPresent your circuit card for the swipe every time you make a purchase at Pantaloons.HOW TO UPGRADE YOUR super C CARDMembership 12 month Purchase-based Upgrading SystemThree Star Card Upgrade to a 3 star place by shopping for Rs. 8000/- immediately preceding 12 months of current sho pping date. louvre Star card Upgrade to a 5 star view by shopping for Rs. 20000/- immediately preceding 12 months of current shopping date.Seven Star Upgrade to a 7 star post by shopping for Rs. 40000/- immediately preceding 12 months of current shopping date.12 month Purchase-based Upgrading SystemWhen you shop at Pantaloons and your total purchase (including that day) in the previous 12 months totals to the criteria value of the conterminous tier, you upgrade to the next status.Membership Validity1 Star card is valid for a period of 2 years from the date of enrolment.3, 5 and 7 star cards are valid for a period of one year from the date of upgrade.Membership RenewalPurchase worth Rs. 8000 within 2 years of card progeny date and retain a 1 star statusPurchase worth Rs. 8000 within 1 year of card issue date and retain a 3 star statusPurchase worth Rs. 20000 within 1 year of card issue date and retain a 5 star statusPurchase worth Rs. 40000 within 1 year of card issue date and re tain a 7 star status.SWOT abstract OF PANTALOONSStrengthPioneer in the industry, largest market share and capitalization.Reputation for value for money(Competitive pricing), convenience and a wide range of products all in one storePresence in major citiesHighly Strategic man resource management and development. It invests time and money in training people, and retaining them.Most trusted and respected brand by the consumersBeing financially strong helps pantaloons retail India deal with any problems, ride any dip in profits and out perform their rivalsDevelopment and Innovation are high at Pantaloons India with regards to it products and consumer preferences and lifestyle changes which keep its ahead of its competitors.WeaknessPantaloons does not function internationally, which has an effect on success, as they do not reach consumers in overseas markets.PRIL is the Worlds largest grocery retailer and control of its empire, despite its IT advantages, could leave it light-headed i n some areas due to the huge span of controlSince Pantaloons Retail India Ltd sell products across many sectors, it may not have the flexibility of some of its more focused competitors.Each business line faces controversy from specialty companies. Fashion segment, Shoppers Stop, Trent, Lifestyle. In hypermarket-RPG (Spencers),Trent (Star India Bazaar) In Food business, Reliance Fresh, Spinach, Food WorldOpportunitiesHuge untapped market(The Indian middle class is already 30 Crore is projected to grow to over 60 Crore by 2010 making India one of the largest consumer markets of the world)Organized retail is only 3% of the total retailing market in India. It is estimated to grow at the rate of 25-30% p.a. and reach INR 1, 00, 000 Crore by 2010.To take over, merge with, or form strategic alliances with other global retailers, focusing on specific marketsNew locations and store types offer PRIL opportunities to exploit market development.(Diversification into insurance , property, and variety of products and stores)Opportunities exist for PRIL to continue with its currentstrategyof large, super centres.Rural RetailingThreatsBeing number one means that you are the target of competition. (Extra competition and new competitors entering the market could unsteady pantaloons retail India)A slow economy or financial slowdown could have a major impact on pantaloons retail India business and profits.Consumer lifestyle changes could lead to less of a demand for pantaloons retail India products/servicesPrice wars between competitors, price cuts and so on could suffering profits for pantaloons retail India.The actions of a competitor could be a major threat against pantaloons retail India, for instance, if they bring in new technology or increase their workforce to meet demand obtain Culture Shopping culture has not developed in India as yet. Even now malls are just a place to hang around with family and friends and by and large confined to window-shopping.Ifunorganized re tailers are put together, they are parallel to a large supermarket withlittle overheads, high degree of flexibility in merchandise, display, prices and turnover.COMPETITORSIn the fashion segment, they face competition from Shoppers Stop, Trent, Westside and Lifestyle. Though the hypermarket is new, only three to four years old, in the country competition is faced from likes RPG (Spencers), Trent (Star India Bazaar) and with Shoppers Stop . In the Food business competition is faced from Subhiksha and Food World. Its major competitors are Westside, Globus,and central.With a sales turnover in 2008-09 FYof Rs. 5048.91 cr, pantaloon has been a clear market leader with the next competitor being Shoppers Stop with a turnover of Rs.1244.79 cr. The numbers suggest that Pantaloon has had no competition at all.Another interesting statistic is about the Pantaloons net profit for FY 2008 in comparison to Shoppers Stop. Pantaloon had a net profit of Rs.125.94 cr, while Shoppers Stop had an loss o f Rs.63.72 cr. Clearly Pantaloon ashes the market leader as far as retail isconcerned. world-wide RETAIL ENTERING INDIAInternational retailers Indias vast middle class with its expanding buying power and its almost untapped retail industry are key attractions for global retail giants wanting to enter newer markets.The Australian governments National Food Industry Strategy and Astrideinitiated a test marketing food retail in India wherein 12 major Australian foodproducers have tied up with India-based distributor AB Mauri to sell theirproducts directly at retail outlets.US-based home delivery and logistics company, Specialized Transportation Inc, will enter the Indian market through a strategic alliance with Patel Retail, a subsidiary of Patel Integrated Logistics.Wal-Mart has announced its plans for India in partnership with Bharti,US coffee berry chain Starbucks is well on its way to set up its first store in India this year.US based Tommy Hilfiger has tied up with notional Port ico, a Mumbai based home textiles company, to sell its home textiles and furnishings in India.Alfred Dunhill, a UK-based luxury mens brand, has tied up with Brand houseRetail Ltd. for its India venture and will be opening four stores in the country.THE ROAD in frontPantaloon planed to expand its retail stores to small cities like lucknow, Nagpur etc. By the end of 2005, pantaloon is expected to have 30 food bazaars,22 big bazaars,21 pantaloons 4 centrals.Pantaloon also had planned to venture into footwear, consumer durables, music car accessories retailing.The company also had a forged alliance with a sports retail footwear company called kinglike sports house.As a repositioning, Mr. Biyani has planned to give a new makeover to pantaloons.To re-establish and renew its existing brands, pantaloons intended to spend INR 2 crores additional INR 1 crore on its upcoming brand. The company was planning to reduce the number of vendors for both Pantaloons and Big bazaar.To meet its gro wing technology meet, they planned to deploy a retail ERP solution, which would support functions such as HR Marketing.Pantaloons planned to launch a B2B portal, to bring transparency in the value chain.CONCLUSIONPantaloon Retail (India) Ltd is a company where it strives for Pantaloon Retail (India) Ltd is a company where it strives for lifestyle and value through its products and services. Through the study, it is observed that pantaloon can be said an organization where the Ps of marketing is taken seriously for the maximum profitability through large range of products, promotional activities for the company and a solid sales organization monitoring that the Ps are worked effectively. The stores has been well maintained in accordance of rights with the latest demands of the maintained in accordance with the latest demands of the consumers and through all these strategies Pantaloon ensures repeated customer patronage.