TRAINING REPORT ON PAYBACK MARKETING AT

Pantaloon Retail (India) Limited, Ambience mall, Gurgaon

Submitted in partial fulfillment of requirements for the award of the degree of Post Graduate Programme (Level-1, Level2) Under Guidance of: Amit Duklan CSD Student Name: Anil Kumar Saini SBS/MDU16MBA-1961

122 Institutional Area, Sector-44, Gurgaon- 122003, India.

PREFACE

The research provides an opportunity to a student to demonstrate application of his/her knowledge, skill and competencies required during the technical session. Research also helps the student to devote his/her skill to analyze the problem to suggest alternative solutions, to evaluate them and to provide feasible recommendations on the provided data The research is on the topic of

PAYBACK MARKETING
AT Pantaloon Retail (India) Limited, Ambience mall, Gurgaon

Although I have tried my level best to prepare this report an error free report every effort has been made to offer the most authenticate position with accuracy

CERTIFICATE

DECLARATION

I, Anil Kumar Saini having Roll No. SBS/MDU16MBA-1973 of PGP Semester 2 of Skyline Business School hereby declare that the project entitled PAYBACK MARKETING is an original work and the same has not been submitted to any other institute for award of any other degree. The feasible suggestions have been duly incorporated in consultation with the guide.

Signature of the candidate

Anil Kumar Saini

MBA -2ndSemester Skyline Business School, Gurgaon Under Guidance of:

Amit Duklan CSD Pantaloon Retail (India) Limited, Ambience mall, Gurgaon

ACKNOWLEDGEMENT

This Project has been made possible through the direct and indirect Co-operation of various persons, who have inspired me at every step of my work. It is a matter of pride for me to acknowledge entire staff of Pantaloon, for there valuable Cooperation and Guidance. And above all, I am beholden to my Parents and other family members for their blessing and encouragement in completing this task.

Anil Kumar Saini Internship Trainee

Content

1. Title Page 2. Preface 3. Company Certificate 4. Acknowledgement 5. Declaration 6. Scope 7. Objectives 8. Executive Summary/ Executive Synopsis 9. Industry Profile 10. Company Profile Mission, Vision, Values, Culture, History, Market size, Main Product, Competitors Information, S.W.O.T Analysis of the Organization. 11. Organization overview/Organization structure/Organization chart (with Explanation) 12. Departmental study (department structure, role of department) 13. Intern profile and Learning Outcomes 14. Critical Observations/Findings 15. Conclusion 16. Bibliography

SCOPE

This project will help Pantaloons to identify their competitors and above all the areas in which they can have an edge on Customer Loyalty Program.

1.

Pantaloon give various discounts and offers. This r e p o r t w i l l a l s o h e l p i n knowing whether various discounts and offers given by Pantaloons are enough for attracting customers or not.

2.

This research will also be helpful in knowing the loyalty of customers towards Pantaloons. By PBGC status we can get an idea about it.

OBJECTIVES
This study aims to review the loyalty program of PANTALOONS. In addition, main objective of this study is to examine the influence emerged from loyalty program on customer loyalty.

The specific objectives of the study are, 1. To know about the current trends regarding loyalty program and how they can be implemented. 2. Ways to improve the performance of loyalty program and make it more efficient and updated. 3. Analysis of sales performance as a result of loyalty program. 4. To find out the influence of the loyalty program on consumer perception. 5. A detailed study on the impact of loyalty program on consumer buying behavior.

EXECUTIVE SUMMARY
Summer internship training at Pantaloon Retail (India) Limited in Gurgaon. Primarily the study aims to give the reader an insight into the Indian retail industry. The recent revolution and growth of the industry and the entry of many large business houses into this domain has ushered in a definite transition of the structure of the industry from its traditional outlook. Different models employed to evaluate the industry are also covered in the first portion of this report. Secondly, the study aims to analyze the customer Loyalty Programs offered by Pantaloon Retail (India) Limited.

This project report throws light on the reasons behind c u s t o m e r s decision of choos ing Pantal oon for pu rchase o f A p p a r e l s a n d v a r i o u s other products from Pantaloon. Pantaloon is one of the emerging players in the Indian retail industry and offers a deep insight into the industry. Proactive customers gave many s u g g e s t i o n s f o r P a n t a l o o n l i k e t h e y s h o u l d h a v e m o r e S t a f f e s p e c i a l l y during Sales, more Sitting area, more variety, etc. Feeding the data into for analysis gave interesting conclusions which have been compiled in this report.

In this project has put an effort to understand the Customer Loyalty importance. 1. In this report, first of all given a brief review about retail sector as a whole. 2. Then it has given a review of the findings of some of the study that has already been done by industry. 3. Then it has enumerated objectives. 4. Then it has given the panoramic view regarding the topic. 5. Then it has analyzed the data which was collected by various sources.

10

INDUSTRY PROFILE
India, like Britain, 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 same time, 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 per cent of the total retail trade in the country AN UNDERDEVELOPED RETAIL MARKET Organized 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 homogeneous. They comprise many markets within a single country, with significantly varying cultures and customer preferences across regions. There is a significant rural population in both countries, which has much lower purchasing power compared to the urban population. Both countries are geographically very large and unevenly developed, adding a significant distribution and logistics dimension to the retail trade. Consumers in both countries are highly value conscious. Between 1996 and 2003, the organized retail market in China more than doubled. We estimate that the Indian retail market is today at the same inflection point as China was in the mid-1990s. Consequently, considering a similar per capita GDP and roughly similar rates of economic growth, 11

the Indian organized retail market has the potential for exponential growth over the next decade. CONSUMERISM: THE NEW WAVE Growing consumerism would be a key driver for organized retail in India. Several demographic indicators show favorable trends for the growth of organized trade: Rapid income growth : consumers have a greater ability to spend. Increasing urbanization: larger urban populations that value convenience, coupled with the higher propensity of the urban consumer to spend. Growing young population : growth of the post-liberalization maturing population, with the attitude and willingness to spend. Spend now vs. save earlier : consumers are willing to borrow for present consumption. THE SIZE OF THE OPPURTUNITY Research done by the Tata Strategic Management Group (TSMG) indicates that over the next 10 years, the total retail market in India is likely to grow at a compounded annual growth rate (CAGR) of 5.5 per cent (at constant prices) to USD374 billion (Rs 16,77,000 crore) in 2015. The organized retail market is expected to grow much faster, at a CAGR of 21.8 per cent toUSD55 billion (Rs 246,000 crore) in the same time frame, garnering around15 per cent of overall retail sales. Based on our projections, the top five organized retail categories by 2015 would be food, grocery and general merchandise; apparel; durables; food service; and home improvement.(Table 1) Organized retail market in India (Rs crore)

12

Retailers inspired by the Wal-Mart story of growth in small town America are tempted to focus on smaller towns and villages in India. However, a careful analysis of the town strata-wise population, population growth, migration trends and consumer spend analysis reveals a very different picture for India. As per our estimates, the share of the 35 towns with a present population of greater than 1 million in India's total population would grow much faster than their smaller counterparts, from 10.2 per cent today to reach 14.4 per cent by 2025. Simultaneously, the share of these towns in the overall retail market would grow from 21 per cent today to 40 per cent by 2025. Within these top 35 towns, an estimated 70 to 80 per cent of retail trade could be in the organized sector. This is similar to the experience in China, where in cities like Shanghai and Beijing, the organized sector accounts for 70 to 80 per cent of overall retail trade in certain categories. Retailers should therefore focus on the top 37towns in the next decade, as the opportunity in smaller towns and rural India would be smaller and more fragmented, compared to the larger towns. Gaining importance in the specialty retail categories. While supermarkets may emerge at the initial stages of retail market development, in the long term they are unable to match the consumer value proposition of convenience stores and hypermarkets.

13

PRIVATE LABEL BRANDS BECOME IMPORTANT Private labels today account for 17 per cent of global retail sales, with the highest share of 23 per cent in Europe and the lowest share of 4 per cent in Asia. M+M Planet Retail data shows that private label penetration varies from 25 per cent to 95 per cent among some of the largest retailers in the world. Growing acceptance among consumers, increasing price competition, the need for differentiation among retailers and the ability to offer higher margins are the key factors contributing to the growth of private labels. Private labels provide the retailer an ability to offer a significant price advantage to consumers, their prices being 16 to 32 per cent lower than manufacturers' brands. IMPLICATIONS OF INDIAN RETAILER Global trends have important implications for Indian retailers. The Indian consumer is very value conscious; willing to spend money in most cases, but constantly cost conscious, evaluating every rupee spent. It is therefore imperative for retailers to offer a price advantage through sourcing and operational efficiency, as well as a strong private label programme to attract customers. Existing and new entrants need to achieve scale quickly to drive efficiencies in procurement, supply chain and marketing. Else, they risk being marginalized by larger players. Real estate and human resources will be the critical drivers to build scale. While there are a few hundred malls under various stages of development across the country at present, retailers will also need to think out of the box to ensure the availability of real estate. This may include acquiring and developing the real estate themselves, rather than wait for mall development. Given 14

the rising demand for retail real estate, retailers will need to take a longterm view on rentals and look at alternative options like ownership or very long leases. Retailers that invest in training will be able to ensure the availability of quality manpower in a rapidly growing market. In conclusion, the retail market in India offers an opportunity for a large player to build a Rs 40,000-crore retail business spanning multiple categories by 2015 (at current prices). Compared to this, the revenue of the largest Indian retailer, Pantaloon, grossed only Rs 1,085 crore in 2005.Little wonder that large domestic business houses and international retailer shave expressed a keen interest to enter the retail sector in India. To capitalize on the opportunity, however, players need to be aggressive in outlook and build scale quickly.

15

COMPANYS PROFILE
Pantaloon Retail (India) Limited, is Indias leading retailer that operates multiple retail formats in both the value and lifestyle segment of the Indian consumer market. Headquartered in Mumbai (Bombay), the company operates over 5 million square feet of retail space, has over 450 stores across 40 cities in India and employs over18,000 people. The companys leading formats include Pantaloons, a chain of fashion outlets, BigBazaar, a uniquely Indian hypermarket chain, Food Bazaar, a supermarket chain, blends the look, touch and feel of Indian bazaars with aspects of modern retail like choice, convenience and quality and Central, a chain of seamless destination malls. Some of its other formats include, Depot, Shoe Factory, Brand Factory, Blue Sky, Fashion Station, all, Top 10, mBazaar and Star and Sitara. The company also operates an online portal, futurebazaar.com. A subsidiary company, Home Solutions Retail (India) Limited, operates Home Town, a large-format home solutions store, Collection i, selling home furniture products and E-Zone focused on caterings to the consumer electronics segment. Pantaloon Retail was awarded the International Retailer of the Year 2007 by the US-based National Retail Federation (NRF) and the Emerging Market Retailer of the Year 2007 at the World Retail Congress held in Barcelona. Pantaloon Retail is the flagship company of Future Group, a business group catering to the entire Indian consumption space.

Future Group is Indias leading business group that caters to the entire Indian consumption space. Led by Mr. Kishore Biyani, the Future Group operates through six verticals: Retail, Capital, Brands, Space, Media and 16

Logistics. Apart from Pantaloon Retail, the groups presence in the retail space is complemented by group companies, Indus League Clothing, which owns leading apparel brands like Indigo Nation, Scullers and Urban Yoga, and Galaxy Entertainment Limited that operates Bowling Co, Sports Bar, F123 and Brew Bar. The groups joint venture partners include French retailer ETAM group, USbased stationary products retailer, Staples and UK-based Lee Cooper. Group Company, Planet Retail, owns and operates the franchisee of international brands like Marks &Spencer, Next, Debenhams and Guess in India. The groups Indian joint venture partners include, Manipal Healthcare, Talwalkars, Blue Foods and Liberty Shoes. Future Capital Holdings, the groups financial arm, focuses on asset management and consumer credit. It manages assets worth over $1 billion that are being invested in developing retail real estate and consumer-related brands and hotels. The group has launched a consumer credit and financial supermarket format, Future Money and soon plans to offer insurance products through a joint venture with Italian insurance major, Generalise. The group is currently developing over 50 malls and consumption centres across the country and has formed a joint venture company focusing on mall management with Singapore-based Capital and, one of Asias largest property companies. Future Groups vision is to, deliver Everything, Everywhere, Every time to Every Indian Consumer in the most profitable manner. The group considers Indian-ness as a core value and its corporate credo is - Rewrite rules, Retain values. Future the word which signifies optimism, growth, achievement, strength, beauty, rewards and perfection. Future encourages us to explore areas yet unexplored, write rules yet unwritten; create new opportunities and new successes. To strive for a glorious future brings to us our strength, our ability to learn, unlearn 17

and re-learn, our ability to evolve. We, in Future Group, will not wait for the Future to unfold itself but create future scenarios in the consumer space and facilitate consumption because consumption is development. Thereby, we will effect socio-economic development for our customers, employees, shareholders, associates and partners. Our customers will not just get what they need, but also get them where, how and when they need. We will not just post satisfactory results, we will write success stories. We will not just operate efficiently in the Indian economy, we will evolve it. We will not just spot trends, we will set trends by marrying our understanding of the Indian consumer to their needs of tomorrow. It is this understanding that has helped us succeed. And it is this that will help us succeed in the Future. We shall keep relearning. And in this process, do just one thing.

Rewrite Rules. Retain Values Group Vision

Future Group shall deliver Everything, Everywhere, Every time for Every Indian Consumer in the most profitable manner.

Group 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 18

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.

Core Values
Indianans: 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.

19

CULTURE
Passion for Retail is why we are here. At Pantaloon Retail, Empowerment is what you acquire and Freedom at Work is what you get.We believe our most valuable assets are our People. Young in spirit, adventurous in action, withan average age of 27 years, our skilled & qualified professionals work in an environment wherechange is the only constant.Powered by the desire to create path-breaking practices and held together by values, work in this people intensive industry is driven by softer issues. In our world, making a difference toCustomers lives is a Passion and performance is the key that makes it possible. Out of the Boxthinking has become a way of life at Pantaloon Retail Retail and living with the change, a habit.Leadership is a value that is followed by one and all at Pantaloon Retail. Leadership is thequality that motivates us to never stop learning, stretching to reach the next challenge, knowingthat we will be rewarded along the way. In the quest of creating an Indian model of retailing,Pantaloon Retail has taken initiatives to launch many retail formats that have come to serve as a benchmark in the industry. Believing in leadership has given us the optimism to change and besuccessful at it. We do not predict the future, but create it.At Pantaloon Retail you will get an opportunity to handle multiple responsibilities, and therein,the grooming to play a larger role in the future. Work is a unique mix of preserving our coreIndian values and yet providing customers with a service, on par with international standards.At Pantaloon you will work with some of the brightest people from different spheres of industry.We believe its a place where you can live your dreams and pursue a career that reflects your skills and passions

20

HISTORY
With a focus on todays youth, Pantaloons offers trendy and hip fashion that defines their hopes and aspirations. Our stores reflect our ideology: Fresh Feeling, Fresh Attitude, Fresh Fashion. We offer fresh collections that are visually stimulating thanks to appealing interiors and attractive product display. The first Pantaloons opened in Gariahat in 1997. Over the years it has undergone several transitions. When it was first launched, this store mostly sold external brands. Gradually, it started retailing a mix of external brands and its own recently-introduced private brands. Initially positioned as a family store, it finally veered towards becoming a fashion store with an emphasis on 'youth' and clear focus on fresh fashion. Pantaloons stores have a wide variety of categories like casual wear, ethnic wear, formal wear, party wear and sportswear for Men, Women and Kids. The fashion store extends to almost all major cities across the country. Pantaloons have established its presence with stores not just in the metros, but also in smaller towns.

21

Milestones
1987 The company is incorporated under the name of Manz Wear Private Ltd. Pantaloons, one of Indias first formal trouser brands, is launched. 1991 BARE, an Indian denim brand is launched. 1992 Pantaloon Retail India Ltd. makes an Initial public offer (IPO). 1994 The Pantaloon Shoppe, our exclusive menswear store in a franchisee format is launched across the nation. The company starts distribution of branded garments through multi-brand retail outlets across the nation. 1997 Pantaloon Retail enters modern retail with the launch of the first 8000-sq. ft. store Pantaloons in Kolkata. 2001 Pantaloon Retail launches three Big Bazaar stores within a span of 22 days in Kolkata, Bangalore and Hyderabad.

22

2002 Food Bazaar, the supermarket chain is launched. 2004 Pantaloon Retail launches Indias first seamless mall, Central, in Bangalore. 2006 Home Town, the home building and improvement products retail chain, is launched along with consumer durables format Ezone and furniture chain Furniture Bazaar. 2007 Pantaloon Retail wins the International Retailer of the Year award at USbased National Retail Federation convention in New York, and Emerging Retailer of the Year award at the World Retail Congress held in Barcelona. 2008 Big Bazaar crosses the 100-store mark, marking one of the fastest expansions of the hypermarket format anywhere in the world. 2009

23

Pantaloon Retail celebrates its first Shopping Festival across all retail formats in key Indian cities.

COMPETITION
LIFESTYLE The Dubai-based Landmark Group's department store chain, Lifestyle, started operations in India in1998. It currently operates 19 Lifestyle departmental stores in nine cities with a total retail space of 7,45,711 sq. ft. In 2004 the chain had seven stores in five cities with a space of 2,68,436 sq.ft, which grew to 10 stores in the same five cities with an increased retail space of 3,41 ,587 sq.ft. By2010 they plan to have 41 stores in 16 cities with a combined retail space of 19,33,931 sq.ft. The average store size of a Lifestyle department store is 46,000 sq.ft, the largest of them being the

Chennai store with an area of 75,000 sq.ft. Lifestyle now plans to majorly expand into the tier-II cities in the country. Ginger, Baby Doll and JRS Active are the three major private labels of Lifestyle, besides segmentspecific brands like 2xtremz for women and Juniors for infants. These private labels contribute approximately towards 10 per cent to the total revenue. Its customer loyalty programme is called The Inner Circle, which contributes 40 per cent to total sales. Each of the stores has a Coffee Island managed by Qwiky's. Lifestyle International has announced investments to the tune of Rs.400 crore in the next five years to fund its expansion in India. This includes plans to bring in its concept stores into the country, including the Max Hypermarkets and Lifestyle Centres. The Max chain of value stores and Home Centres have already been launched. Landmark is also working on a Lifestyle Centre 24

GLOBUS The Mumbai-based Rajan Raheja Group launched its first Globus department store in January 1998at Indore and since then it has become a 20-outlet strong chain with a presence in 14 cities. Apart from the Globus department stores, the chain also runs a second retail format with Globus 2, the factory outlet format. Globus' flagship store was launched in Mumbai in November 2001. The department store chain's customer loyalty programme is called the Globus Privilege Club card programme. In 2004, the chain had seven outlets in five cities with a total space of 1,39,658 sq.ft by2005 their retail presence had reached eight cities with 12 stores and a total retail space of 1,94,610sq.ft. Today the chain runs 20 outlets in 14 cities with a total retail space of 2,90,000 sq.ft. Retail expansion plans include having 30 outlets by 2007, 100 by 2008, and taking it to 120 by 2010 with a total retail space of 12,40,000 sq.ft. The chain's in-store labels apparel labels, Globus and F21, contribute about 35 per cent towards total retail sales. Frequent consumer promotions during peak sales periods like traditional festive seasons bring in 25-30 per cent increase in average sales.

SHOPPERS'STOP Shopper's Stop Ltd from the K Raheja Group, opened its first Shoppers' Stop department store in Mumbai in 1991; and over the last 16 years has established itself as the largest player in the department store category in India. From 16 stores in nine cities with an area of7,52,848 sq.ft, the chain today operates 26 outlets in 12 cities with a total retail space of 15,07,126 sq.ft, with plans to have 34 stores by 2007. By 2010 Shoppers' Stop plans to 25

have nearly 50 outlets in 20 cities across a total retail space of 36,26,899 sq.ft. Shoppers' Stop was the first retailer in the country to have Bar-coded garments, Co-branded credit card; and Retail ERP Shoppers' Stop, unlike Pantaloon and Westside where the chunk of sales are driven by private labels, houses a large number of external brands. The chain is today the largest retailer for popular brands like Levi's Strauss, Pepe, Arrow,Zodiac, Ray-Ban, Swatch, ete. The launch of Buzz (the designer pret wear section) and Kasba by Raghavendra Rathore were some new additions. Some of the chain's private labels include Stop, Life, Vettorio Fratini, Haute Curry, indi-vidual and Acropolis, sales from which grew by 44 per cent in2005, over the previous year. Shoppers' Stop customer loyalty programme, First Citizen's Club has approximately 4,40,000 members, who contribute to over 50 per cent of the total sales. Shoppers' Stop, which has tied up with Mothercare, the global brand for infants and children, will be opening40 Mothercare outlets over the next five years. It currently has 11 Mothercare outlets. The bookstore section, Crossword; as well as food and beverages outlets such as Cafe WESTSIDE The lifestyle store by the Tatas that caters to the upper middle class segment, has built its customer base through its USP of affordable style. There are 23 Westside stores in 14 cities Price is crucial in the Indian retail scenario and Westsides focus on this factor is part of the reason. If customers are looking for style, they will probably go to Westside and buy something for Rs 400rather than go to Mango (a UK-based chain). Another issue is convenience of parking space. Almost everyone in major metros has a car and doesnt want to go through the hassle of finding parking space. Westside has worked on molding its outlets along the snazzy, well-designed, hands-on ambiences and coffee shop displays 26

typical of Lacoste, Nike and Switch retail stores in the West, and personalized its offerings by offering style and accessory guides to its customers. Westside houses a collection of the finest merchandise for the entire family. There are spacious shopping areas for the various sections womens wear, mens wear and the children's and the household sections occupy the floor level. Caf West from the Taj group on a level above is an ideal place for a coffee break on a shopping spree. Westside offers customers the very best and latest international shopping experience. Westside has a team of dedicated stylists, merchandisers, helpful and courteous store staff and talented in-house designers. The combination of the very latest in-style fashion with affordability is highlighted in all of Westsides merchandise. Westside stands out from the competition for a variety of reasons. One is that a majority of the brands the chain stocks and sells are its own, unlike retailers who store multiple labels. About 90 per cent of Westsides offerings are home-grown, and they cater to different customer segments. The other 10per cent includes toys, cosmetics and lingerie. However, recently Westside has recently expand edits range of merchandise by offering outfits from some of Indias best-known fashion designers, among them Wendell Roderick, Anita Dongre, Krishna Mehta and Mona Pali. This is an interesting marketing shift, since it means moving away from the chains only-our-own-brands concept.

In the fashion segment, they face competition from Shoppers Stop, Reliance Trendz, Trent, Westside and Lifestyle. Though the hypermarket is new only three to four years old in the country competition is faced from likes RPG (Spencer's), Trent (Star India Bazaar) and with Shoppers Stop. Several other outlets which are giving competition to Pantaloon are Koutons, Charlie outlaw, Cantabil, etc. Another competitor may prove to 27

be a very potential, which is going to enter in the Indian market, and it is the WALL- MART coming to India, in partnership with Bharti. PANTALOONS and COMPETITOR Brand: The American Marketing Association describes a brand as name, term, symbol or design, or a combination of them intended to identify the goods and service of one seller or group of sellers and to differentiate them from those of competition . The company has its own brands but it focus on other multiple brands as well. It also provides various other brands to its customers. It has collaboration with many different brands and it sales them under its name, it provides benefit to both. The Competitor Brands in the Market are: Koutons, Tng, Cantabil, TQS, La FAnso, Charlie Outlaw, Reliance, Cobb Italy, Levis, etc. As these are the small retail outlets placed nearby to the local markets, so they are giving competition to Pantaloon. These are the few famous brands which are available at Pantaloons:

S.No
1 2 3 4 5

Category
MENS WEAR JEANS,GABARDINE,JACKETS AND NIGHTWEARS WESTERN CLOTHES FOR YOUNG GIRLS SHIRTS LADIES WEAR

Private Label
PANTALOONS TROUSERS BARE DENIM HONEY JOHN MILLER SRISHTI

28

6 7 8 9 10 11 12 13 14 15 16 17 18 19

ELEGANT SALWAR SUITS SPORTS WEAR WESTERN AND FORMAL WEAR JEANS AND ACCESSORIES WINTER WEAR JACKETS,BLAZERS,SWEATERS EXCLUSIVE WESTERN,INDOESTERN,SKIRTS,JEANS KIDS WEAR BUYING SEPARATE AND COMBINING CLASSIC ENGLISH FORMAL WEAR STICHING SALWAR KAMMEZ JEANS.SHIIRTS,JACKETS,TRENDY SPORTS AND ULTILITY WEAR MENS WEAR MENS ETHNIC WEAR MENS N WOMENS ETHNIC WEAR

RANG MANCH AGILE ANNABELLE JEALOUS SCOTSVILLE REMANIKA CHALK MIX N MATCH LOMBARD TRISHAA UMM URBAN YOGA GHAGROOS AKRITI

S.No 1 2 3 4 5 6 7

Category JEANS,T-SHIRTS FOR MEN N WOMEN AND KIDS JEANS,T-SHIRTS FOR MEN N WOMEN KIDS WEAR,INFANTS KIDS WEAR SPORTS WEAR,JACKETS,SHOES EXCLUSIVE TRENDY WEAR FOR GIRLS FORMAL WEAR FOR MEN

Licensed Label LEVIS PEPE LILLIPUT CATMOSS CONVERSE 109.F INDIGO NATION

29

PLASTIC CARDS VALUEPROPOSITION with earlier Pantaloons Greencards

SPECIAL DESK INSTANT DISCOUNT FOR BILLING

HOME DELIVERY

PARKING EXCLUSIVES HOPPING DAYS REFUNDED VALUE

PROPOSITION

ONLINE REGULAR UPDATE SPECIAL INVITES IN HAPPEING EVENTS EXCHANGE PERIOD PURCHASING

30

PAYBACK GREEN CARD

BENEFITS WITH NEW CARD

31

About Payback:
A powerful loyalty program offering a multitude of advantages for consumers. PAYBACK is Indias largest loyalty program. It presents many advantages over traditional, stand-alone customer loyalty schemes restricted to one brand or company only. The power of PAYBACK stems from pooling loyalty benefits from many attractive partners: Using one single card, members earn loyalty points when they shop at a wide range of different merchants and brands - offline and online. Importantly, PAYBACK partners are mostly market leaders in consumer segments covering daily needs, ranging from food to travel and entertainment. As a result, members are able to accumulate a large number of points quickly. A coalition of strong partners united on the common PAYBACK platform also multiplies redemption opportunities.

The combination of rapid accumulation of points and their easy redemption for desirable rewards makes PAYBACK so attractive. Other benefits include discounts on purchases through points earned or through coupons and exclusive special offers. Shoppers love these unrivalled features, because they simply get more value for every Rupee spent.

32

MARKETING PROGRAME
At Future Group, we believe in building long-lasting relationships with customers. We encourage repeat customer visits through our unique offers and special sale days. Future Group has taken the whole concept of customer loyalty to the next level by joining hands with PAYBACK. PAYBACK is Indias largest and one of Europes most successful multi-partner loyalty programs. With PAYBACK, customers can shop, save and get rewarded. This program enables consumers to collect millions of points across online and offline partners with just a single card. Customers can accumulate points across Future Group formats, thereby making shopping rewarding. What Is PAYBACK? PAYBACK is Europe's leading customer loyalty program, headquartered in Germany, with a total of 25.5 million active cardholders in Germany and Poland. In India, PAYBACK consolidated its position after taking a major stake in I-Mint. Today, with more than 30 partners with 1,500 outlets and 10 million card members, its the only program which works with market leading pan-India players from the banking, travel, petroleum and online sectors such as ICICI Bank, HPCL, Univercell, BookMyShow and MakeMyTrip. Now that Future Group has become a part of this bandwagon, customers are bound to earn points at every step from formats like Big Bazaar, Food Bazaar, Pantaloons, Central, Home Town, eZone, Brand Factory and Future Bazaar. These points can then be redeemed for air miles, movie tickets, air tickets and vice versa. With Future Group and PAYBACK Shopping is Rewarding. Benefits Of PAYBACK

33

Our formats Big Bazaar, Food Bazaar, Pantaloons, Central, Home Town, eZone, Brand Factory and Future Bazaar are a part of the PAYBACK Loyalty program.

PAYBACK increases customer loyalty and boosts partners sales. In an increasingly complex marketplace, customer loyalty is gaining in significance all the time. Particularly in places where the real and virtual worlds meet, successful customer relationship management can prove an effective success strategy and give companies a real competitive edge. PAYBACK is proving a real success both as a loyalty program and as a marketing platform with very efficient and, above all, effective communication channels. The success rests on the principle that a single loyalty card can be used on a day-to-day basis to collect points with a whole range of strong brand-name partners. This enables consumers to quickly collect an attractive points balance and earn the reward of their choice. The reward scheme also helps partner companies to reach customers with highly personalized, relevant offers. This has enabled PAYBACK to become the largest multichannel marketing platform in Europe.

34

Pantaloons - MARKETING MIX (4 PS)

The kind of product mix to be offered by the retailer is another important consideration. As mentioned earlier the main product line of Pantaloons is mens and womens clothing and other accessories comprising a vigilant mix of private as well as other labels... Since Pantaloons provides products to a potentially large number of customers at affordable prices, it falls in the High Turnover -Low Margin Category.

PRODUCT

Spring (designer wear for men and women) Ladies formal Ladies ethnic and casuals Nightwear Infant necessities Indo-Western Kids wear

Mens occasion wear

Mens formal Mens ethnic Denim wear Active wear, Sports wear Teen boys wear Mens casuals

35

PRICE
Buy directly from the manufacturers so that the middle man is eliminated. We buy in cash and get a cash discount, and Manage their stocks turns so that they don't have money stuck up. The benefits are passed on to the customers. Cash discounts (for buying goods upfront in cash) on the other hand could range from 2 per cent to 10 per cent. Almost 70 per cent of the ready-to-wear products in the store are manufactured by the group's own garment units. As a result it is able to offer prices in ready-to-wear that are virtually 30 per cent cheaper than competitors. They increase their margins by pushing their own in-house label Pantaloons visual merchandising is creative, innovative and outstanding which can be seen from its own in house private brands such as John Miller. The new launched products are showed by prominent color back ground. Window display is highly interactive for impulsive buyer. Price range is average. 30% discount allowance to employees working at pantaloons

36

PROMOTION
Sponsorship Celebrity Endorsements Season Sale Hoardings Advertisement

Promotion Strategy
Sales promotion is a key ingredient in marketing campaign consists of a collection of incentives tools, mostly short-term, design to stimulate quicker or greater purchase of particular product, services by consumers or consumers or the trade.

PLACE
Tarapur is Pantaloon's central warehouse. Whenever it procures merchandise from its suppliers, the entire process had to undergo two to three steps before it reaches outlets. At each step, considerable human intervention is required and barcode readers had been installed at all merchandising locations.

37

SWOT
Strength 1. Product of different price range. 2. Product availability. 3. Fashion Friday. 4. Dedicated customer service desk. 5. Loyalty program. 6. Stores location. Weakness 1. Shrinkage rates are higher than industry norms. 2. Store renovations of older stores not done. 3. Low employee retention levels at shop floor level due to better pay package by competitors. 4. Floor level Customer Relations Executives not having proper product, store etc. knowledge due to lack of proper training. 5. Loyalty program of competitors is more effective due to better scheme and merchandise. 6. Merchandise and product focus not consistent and clear Opportunity 1. Geographical Expansion: Untapped market in terms of tier II and tier III cities. 2. Untapped segments such as ethnic wear, Organic cotton wear etc. 3. Luxury segment with brands like Gucci, Tommy, Armani etc. 4. Standalone stores of other brands like Bare, UMM etc. 38

5. Getting license agreement of smaller regional brands. 6. More effective online shopping for garments. 7. Custom Tailoring business untapped. 8. Suiting brand from Future group can be feasible. Threat 1. Economic slowdown and scanty rainfallwhich has major impact on IndianEconomy. Consumer spending on non-essential fashion items, garments etchave been reduced significantly. 2. Competitive rivalry in the industry like BigBazaar is facing competition fromFashion Yatra (Trent Ltd), HyperCity (Shoppers Stop), Max ( Landmarkgroup), Megamart (Arvind). Pantaloon &Central is facing competition from Westside (Trent), Shoppers Stop, Reliance Trends, Lifestyle, Globus etc. 3. Foreign players like Carrefour, Tesco, Walmart lined for their Indian operations

39

ORGANIZATION OVERVIEW - Line of business Line of business of PRIL

PANTALOON RETAIL (INDIA) LIMITED

Wellness (Cosmetics)

Blue Sky (Fashion Accessories)

MELA (Home Designing)

Apparels

Depot (Stationary)

MEN

WOMEN

KID

Watch
Casual, Ethnic, Formal, Accessories Casual, Ethnic, Formal, Accessories

Sunglass

40

MANAGEMENT HIERARCHY IN THE RETAIL OUTLET

Store Manager

Asst. Store Manager

Department Manager Asst. Department Manager Team Leader Team member Team member trainee

41

DEPARTMENTAL STUDY 1. HUMAN RESOURCE DEPARTMENT 2. ACCOUNTS DEPARTMENT 3. MAINTENANCE DEPARMENT 4. FINANCE DEPARTMENT 5. SYSTEMS DEPARTMENT 6. LOGISTICS DEPARTMENT 7. MARKETING DEPARTMENT

Customer Service Desk

From that perspective, customer service should be included as part of an overall approach to systematic improvement. Some have argued that the quality and level of customer service has decreased in recent years and that this can be attributed to a lack of support or understanding at the executive and middle management levels of a corporation and/or a customer service policy. Customer service is an organization's ability to supply their customers' wants and needs. Excellent customer service (is) the ability of an organization to constantly and consistently exceed the customer's expectations.

42

"It consists of all those activities by the retailer that influence (1) The ease with which a potential customer can shop or learn about the stores offering. (2) The ease with which a transaction can be completed once the customer attempts to make a purchase, and, (3) The customers satisfaction with the transaction.

Activities undertaken by a retailer in conjunction with the basic goods and services it sells.

Parking Credit acceptance Salespeople In store announcement Gift Wrapping and packaging Merchandise Availability Complaint handling Merchandise returns Servicing and repair Deliveries Alteration

43

INTERN PROFILE
Week 1-2: Dated [16th May to 27th May 2012] 1. Task assigned Leads generation for Sponsorship for the pantaloons model hunt event held at various metropolitan cities on 3rd June 2012 Target market was real estate. mailing to the interested players and getting feedback second week, store location was assigned in the store, learnt about the payback green card and its process 2. Progress 1st Week task - call 50 real estate companies marketing heads. Understanding of the process of payback green card migration and issuing new cards green card migration and issuing new cards

44

3. Learning outcomes Learned Telephonic etiquettes, documentation, data analysis and report generation in a professional way.

Week 3-4: Dated [28th May to th 10 June 2012] 1. Task assigned Achored in Model Hunt Event "Get The Style" Handled payback process Handling Payback customer loyalty program launched At sahara mall, gurgaon. customer interaction 2. Progress Issuing new Payback Greencards to the new customers and existing greencard holders. 3. Learning outcomes Migration of old card and Issuing new card (Process and Customer Interaction) Handling queries of customers in the best possible way with maximum utilization of the
45

least possible time available to communicate the marketing promotions. Week 4 & 5: Dated [11th June to 30th June 2012] 1. Task assigned Host an in-house event at pantaloons ambience mall Handling Payback and Issuing Gift Vouchers to the Payback Greencard holders. Trained new trainees on Payback. 2. Progress handling Payback operations and report generation. Provide training to the new joiners. 3. Learning outcomes Support and work with team to handle daily operations smoothly in a professional way.

46

Week 6 (From 1st July to 7th July ) : 1) Task assigned Handling Payback process and Issuing Gift Vouchers to the Payback Greencard holders. Trained new trainees on Payback. preparation for the end of season sale Called the customer to invite them for end of season sale

2) Progress handling Payback operations and report generation. Provide training to the new joiners. called 50 customers a day. trained the new trainees. 3) Learning outcomes Support and work with team to handle daily operations smoothly in a professional way.

47

FINDINGS

o Old records can be maintained. o High competition between pantaloons and Lifestyle. o Strategies to be no. 1 in Retail market. o Good relationship with all the employees. o Free tea snacks for staff. o EDC offer card to employees. o All birth day babies all greeted with birth day card and chocolates. o A training program is conducted to all management and worker staff every month last week. o Brand portfolio management. o Quality of human resource management

48

CONCLUSIONS:
Objective of the study of Marketing Management as a part of customer experience is to put things in mind as to how customer service affects the whole shopping experience of the customers and what all is needed on of retailer to make that experience a remembering one for every individual customer. I have got an idea that before setting up any marketing promotion it is very much essential to know certain things and these are as follows: 1.) Know your business. 2.) Consult with customers and employees. 3.) Set customer sensitive services standard 4.) Communicate service standards to customers and performance to employees. 5.) Manage your organization based on service standards and quality. In this project, I also tried to cover the few aspects of the store which is being assigned to me. I have tried to Gain knowledge about the customer, there psyche, Behavior of customer in the store, understood the need, requirement of customer. What other competitors are doing in the market under the radius of store. Try to regain customers. Using various kinds of tactics to get customers it is important for a lifestyle retailer.

49

BIBLIOGRAPHY

1. Principles of marketing By PHILIP KOTLER. 2. http://pantaloon.futurebazaar.com/indexPantaloon.jsp. 3. http://en.wikipedia.org/wiki/Pantaloon_Retail_India. 4. http://business.mapsofindia.com/india-retail-industry/. 5. http://en.wikipedia.org/wiki/Retailing_in_India

50