PANTALOON :REVOLUTIONIZING THE INDIAN RETAILING

INDUSTRYSUBMITTED TO

MR NILESH NEELMANISUBMITTED BY:ANITAGAURAV MOONGA NEHA SINGHALPARUL CHUGH

INTRODUCTION

India’s leading retailer operating in value and lifestyle segment of the indian consumer market.

From a small single format store in 1993.PRIL had grown to become the largest multi-format store by 2004,comprising pantaloons(department store),big bazaar(hyper market),food bazaar(grocery store),gold bazaar(gold retail store) and central(malls).It was one of the largest players in discounting retail.

A flagship company of Future Group.

FUTURE GROUP

VISION:-”to deliever everything,every where,every time to every indian consumer in the most profitable manner”

MISSION:-”Indianess as a core value” CORPORATE CREDO:-”rewrite rules,retain

value”

RETAIL INDUSTRY IN INDIA In 2003 India had over 10 million retail outlets

selling worth $200 billion.Unorganized sector accounted for over 98% of the retail stores,the small individual proprietor store called “kirana” shops dominating the scene.

The organized retail sector in India was characterized by high attrition rates,lack of trained manpower and low salaries.

Food & Groceries,which accounted for nearly 50% of the consumer’s total expenditure,had a miniscule share of 0.3% in organized retailing.

Apparel retailing was the second largest opportunity for the organized retailers.Branded apparel accounted for 20% of the total apparel market,of which men’s clothing accounted for 70%,children’s wear 20% and women’s wear 8%.

Contd.

In 2002-2003 discounts store made an entry into Indian retailing industry

In 2003-2004 international retailers plan to enter India but FDI was not allowed in retail segment.

MAJOR MILESTONE 1987: Company incorporated as Manz Wear Private

Limited. Launch of Pantaloons trouser, India’s first formal trouser brand. 1991: Launch of BARE, the Indian jeans brand. 1992: Initial public offer (IPO) was made in the month

of May. 1994: The Pantaloon Shoppe – exclusive menswear

store in franchisee format launched across the nation. The company starts the distribution

of branded garments through multi- brand retail outlets across the nation. 1995: John Miller – Formal shirt brand launched. 1997: Pantaloons – India’s family store launched in

Kolkata.

CONTD.

2001: Big Bazaar, ‘Is se sasta aur accha kahi nahin’ - India’s first hypermarket chain

launched. 2002: Food Bazaar, the supermarket chain is

launched. 2004: Central – ‘Shop, Eat, Celebrate In The Heart Of

Our City’ - India’s first seamless mall is launched in Bangalore.

PANTALOON MODEL

Pantaloon adopted a pan-indian model that captured the value chain and allowed it to evolve with the customer prefrences.

Biyani believed that growth lays in.”setting up new stores,getting new customers,by introducing new retail formats,by introducing new products and by making no mistakes”.

He repositioned Pantaloons from a family to a lifestyle store as the market involved.

He emphasized on cheaper sourcing,efficient supply chain,affordable price,private labels,location and floor space of the store.

PRODUCTS

Pantaloon sold aparrels and accessories categorized under:-

Men’s formal Men’s casual Ladies ethnic Ladies western Children’s wear Pantaloon develops three types of merchandise:- Classic type Fashion type Collection type

Contd.

In 2000 pantaloon launched a new brand of casual sports wear.

In 2003 pantaloon decided to launch designer labels,like Spring Board for women.

In same year it launched a new apparel line called Passion Wear.The merchandize focus on World Cup.

In early 2003,Pantaloons also acquried the trademark and exclusive liscening rights for a apparel brand Norules.it gots the right to use the youth characters of norules such as one eye jack,justin etc.

He also acquried the licensing right for Popeye and Disney characters, which he used for kids wear.

Contd.

In late 2003 Pantaloons tied up with the Italian apparel company Moda & Musica for the latter’s UMM brand.

It also launched a youth brand Rig. In 2001,Pantaloon tied up with Andhra Pradesh

handloom weaver’s cooperative society and NIFT to launch a womens’s ethnic wear made from handloom.

BRANDS Pantaloons focuses on company owned private labels

and some other brands also.

Men’s wear John Miller,Rig,Ajile,Bare denim

Ladies wear Ajile,Rig

Children’s wear Rig,Bare

POSITIONING

With a tag line “0-80”(age group),first pantaloon was positioned as a family store targeting the middle and upper class customers.

In 2003 they focused more on youth segment and try to establish itself high on style graph.

The company had partnered with Gibam, an Italian firm known for its stylish stores, to create a unique image for its stores.

Garments was displaced on hangers, rather than stacked in shelves.

In april 2004 pantaloons in partnership with Mattel india ltd. Opened a ‘Barbie Concept Store’ named as a Magical world of Barbie which targeted at young girls,in age group of 3-10.

PROMOTION To gain customer loyalty pantaloons launched following

loyalty programmes *Green cards *Kids bank *Gift vouchers * Weekend adventure programmes Hoardings:-Pantaloon puts its hoarding at prime

locations, featuring the upcoming Fashion events or its brand ambassadors who are generally eminent celebrity.

DISTRIBUTION

Pantaloons located at up market accessible & high footfall locations.

Initially,property was purchased & developed by Biyani but after 2002 he decided to buy properties on lease.

In beginning the stores had a floor space of 4,500 sq ft but later it grew bigger and occupied between 30,000-90,000 sq ft.

It takes 20,000-25,000 sq ft in high traffic areas like entertainment complexes and shopping malls.

Pantaloon entered into a strategic alliance with Inox leisure to take up spaces in multiplexes.

One level distribution.

PRICING

Pantaloons sold branded garments at affordable prices. More than 70% of apparel sales at pantaloons consisted

of private labels like Bare, HNY,John Millers,AFL etc while rest were brands such as Levis,Arrow,reebok etc.

The price of private labels was 20%-25% lower as compared to the branded once.

In men’s wear retailers earned margin between 55%-60% on private labels while in women’s wear it was between 48%-50%.

Special event pricing Promotional pricing

SERVICES

As it is a family store the staff was trained to handle older people.

Pantaloons also changed the store layout.Earlier it was in aisle format but they changed it into L & U shaped counters.

Pantaloons had a “No Question Asked” exchange policy.

They also launched a unique customized tailoring for trousers,blazers and suits which are delievered to customers within 48hrs.

PERCEPTUAL MAP OF PANTALOON

high price

Low assortment

HighAssortment

Low price

pantaloon

Shoppers stop

globus

STP OF PANTALOON GEOGRAPHIC-urban,metropolitan cities DEMOGRAPHIC- Family Size-family life cycle Income-upper middle &high PSYCHOGRAPHIC- Socioeconomic Class-A1,A2,B2 Lifestyle-culture-oriented,sports-oriented,outdoor-

oriented BEHAVIORAL- Occasions-regular Benefits-quality,economy,service User status-regular Usage rate-medium Loyalty status-medium & strong Attitude-positive

PRODUCT LEVELS

CORE BENEFIT- protection BASIC PRODUCT- different types of apparels and

clothings EXPECTED PRODUCT- quality and variety AUGEMENTED PRODUCT- trendy & fashionable

clothes POTENTIAL PRODUCT- high end clothes

PECEPTUAL MAP OF BIG BAZAAR

product mix(high)

Product mix(low)

High price economic

Big bazaar

vishal

STP OF BIG BAZAAR GEOGRAPHIC- urban DEMOGRAPHIC- Income- middle,lower middle Family size- family life cycle PSYCHOGRAPHIC- Socioeconomic class-B1,B2 Life style- outdoor-oriented,culture-oriented BEHAVIORAL- Occasions- regular Benefits- economy User status- regular

TARGET AUDIENCE Big bazaar target middle class consumers who are

highly price conscious and seeks value in purchase made.

PRICING EDLP(every day low price) Promotional pricing Differentiated pricing- Bundling

PROMOTION SAAL KAY SABSE SASTE TEEN DIN Future card Wednesday bazaar

TARGET AUDIENCE They are targeting the whole family in urban area.

STP OF FOOD BAZAAR

GEOGRAPHIC- metro cities DEMOGRAPHIC- Age-30 & above Family size-family life cycle Income- upper middle BEHAVIORAL- Benefits- economy,fresh stock

POSITIONING Consistent positioning-always low price

PRICE EDLP(every day low price) Promotional pricing Psychological discounting Special event pricing Differentiating pricing- time pricing

PROMOTION SAAL KAY SABSE SASTE TEEN DIN-26jan,15aug or diwali Future card(3%) Shakti card Advertisements-print ads,T.V ads,radio ads HAFTE KA SABSE SASTA DIN(Wednesday)

DISTRIBUTION CHANNEL

Distribution is done by distributors who is the middle man between the manufacturer and retailer.

SUPPLY CHAIN MANAGEMENT In 1998,Pantaloons recurited ex Ernest & Young employees

to develop in-house supply chain mgmt. tools such as point of sales software.

Pantaloon adopted MIS with a reporting module for its back office transactions.

It monitored price fluctions daily in whole sale market. A vendor mgmt. system enabled vendors to send report

directly to the pantaloons. Pantaloon instituionalised both at vendor primese & its own

warehouses. In 2001 pantaloons switched to bought out sales,where

pantaloons was responsible for the merchandise sold in the stores.

THE ROAD AHEAD Pantaloon 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 plan to venture into footwear,consumer durables,music & car acessories retailing.

The company also had an forged alliance with a sports retail footwear company called Royal sports house.

As a repositioning Biyani planned to give a new makeover to pantaloons.

To re-establish and rejuvenate its existing brands,pantaloons intended to spend INR 2 crores & additional INR 1 crore on its upcoming brands.

CONTD. The company was planning to reduce the number of

vendorsfor both Pantaloons and Big bazaar To meets it growing 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.

THANK YOU