Professional Documents
Culture Documents
1. INTRODUCTION
2. ABSTRACT
3. LITERATURE REVIEW
4. RESEARCH METHODOLOGY
5. PILOT SURVEY
6. ANALYSIS AND FINDINGS OF PILOT SURVEY
7. ANALYSIS AND FINDINGS OF FINAL SURVEY
8. INTERPRETATIONS AND RESULT
9. CONCLUSION
10.
RECOMMENDATIONS
11.
LIMITATION
12.
ANNEXURE
INTRODUCTION
The Indian Retail Industry is the largest among all the industries, accounting for
over 10 percent of the countrys GDP and around 8 percent of the employment.
The Retail Industry in India has come forth as one of the most dynamic and fast
paced industries with several players entering the market. Modern retailing has
emerged in India in the form of bustling shopping centres, multi-stored malls
and large complexes that offer shopping, food and variety of ways of
entertainment.
This study mainly deals with the customers perception towards Pantaloons.
Spotlighting today's buoyant youth, Pantaloons, India's premium lifestyle
apparel company offers chic and trendy fashion to meet their ever-changing
needs. Pantaloons reflect the ideology of always keeping alive the 'newness
factor' through fashion apparel and accessories that are visually appealing and
fashionably upbeat.
With a chain of 87 fashion stores across 43 cities and towns, Pantaloons is
constantly extending its foot-prints into the rest of modern India.
Pantaloons which was previously controlled by the Future Group has now been
taken over by Aditya Birla Nuvo Limited ['ABNL']. ABNL is a part of the
prestigious Aditya Birla Group, a $40 billion Indian multinational, operating in
36 countries across the globe with over 120,000 employees.
Pantaloons is one of the most popular retail shopping outlet,
claiming that they are providing one among the best products and services. In
this
research we have tried to find out the Level of Customers Satisfaction at
Pantaloons after it has been taken over by Aditya Birla Nuovo Ltd.
ABSTRACT
Customer satisfaction is a fundamental marketing construct in the last three
decades. In the past, it was unpopular and unaccepted concept because
companies thought it was more important to gain new customers than retain
the existing ones. However, in this present decade, companies have gained
better understanding of the importance of customer satisfaction (especially
service producing companies) and adopted it as a high priority operational
goal. This study aims at investigating the overall customer satisfaction at
PANTALOONS in India, to understand the how the transformation of the Retail
experience has changed since Aidtya BirlaNuovo. And what could be improved
to retain Customer loyalty as well attract new customers and maintain stand
against competition.The results obtained in this research indicated that 64.75%
of the respondents were satisfied with the shopping experience at Pantaloons.
And, hence, low revenue turnover can not be attributed to dissatisfied
customers.
LITERATURE REVIEW
CUSTOMER SATISFACTION
Customer satisfaction, as a construct, has been fundamental to marketing for
over three decades. As early as 1960, Keith (1960) defined marketing as
satisfying the needs and desires of the consumer. Hunt (1982) reported that
by the 1970s, interest in customer satisfaction had increase to such an extent
that over 500 studies were published. This trend continued and by 1992,
Peterson and Wilson estimated the amount of academic and trade articles on
customer satisfaction to be over 15,000.
Several studies have shown that it costs about five times to gain a new
customer as it does to keep an existing customer (Naumann, 1995) and this
results into more interest in customer relationships. Thus, several companies
are adopting customer satisfaction as their operational goal with a carefully
designed framework. Hill and Alexander (2000) wrote in their book that
companies now have big investment in database marketing, relationship
management and customer planning to move closer to their customers. Jones
and Sasser (1995) wrote that achieving customer satisfaction is the main goal
for most service firms today.
Increasing customer satisfaction has been shown to directly affect companies
market share, which leads to improved profits, positive recommendation, lower
marketing expenditures (Reichheld, 1996; Heskett et al., 1997), and greatly
impact the corporate image and survival (Pizam and Ellis, 1999).
MEANING
Parker and Mathew (2001) expressed that there are two basic definitional
approaches of the concept of customer satisfaction. The first approach defines
satisfaction as a process and the second approach defines satisfaction as an
outcome of a consumption experience. These two approaches are
complementary, as often one depends on the other.
Customer satisfaction as a process is defined as an evaluation between what
was received and what was expected (Oliver, 1977, 1981; Olson and Dover,
1979; Tse and Wilton, 1988), emphasizing the perceptual, evaluative and
psychological processes that contribute to customer satisfaction (Vavra, 1997,
p. 4).
Parker and Mathews (2001) however noted that the process of satisfaction
definitions concentrates on the antecedents to satisfaction rather than
satisfaction itself.
Satisfaction as a process is the most widely adopted description of customer
satisfaction and a lot of research efforts have been directed at understanding
the process approach of satisfaction evaluations (Parker and Mathews, 2001).
This approach has its origin in the discrepancy theory (Porter, 1961), which
argued that satisfaction is determined by the perception of a difference
between some standard and actual performance.
Cardozo (1965); and Howard and Sheth (1969) developed the contrast theory,
which showed that consumers would exaggerate any contrasts between
expectations and product evaluations.
Olshavsky and Miller (1972); and Olson and Dover (1979) developed the
assimilation theory, which means that perceived quality is directly increasing
with expectations. Assimilation effects occur when the difference between
expectations and quality is too small to be perceived.
achieving the relevant goals (Vroom, 1964). However, satisfaction can be either
way viewed as the end-point in the motivational process. Thus consumer
satisfaction can be seen as the consumer's fulfillment response (Rust and
Oliver, 1994, p. 4).
3. State Oliver (1989) expressed that there are four framework of satisfaction,
which relates to reinforcement and arousal. Satisfaction-as-pleasure results
from positive reinforcement, where the product or service is adding to an
aroused resting state, and satisfaction-as-relief results from negative
reinforcement .In relation to arousal, low arousal fulfillment is defined as
satisfaction-as contentment, a result of the product or service performing
adequately in an ongoing passive sense. High arousal satisfaction is defined as
satisfaction as either positive (delight) or negative surprise which could be a
shock (Rust and Oliver, 1994).
The other customer satisfaction definitions include: Satisfaction is the
cognitive state of the buyer about the appropriateness or inappropriateness of
the reward received in exchange for the service experienced (Howard and Seth,
1969, pp. 145); the evaluation of emotions (Hunt, 1977, p. 460); the
favorability of the individual's subjective evaluation (Westbrook, 1980, p. 49); a
positive outcome from the outlay of scarce resources (Bearden and Teel, 1983a,
p. 21); an overall customer attitude towards a service provider (Levesque and
McDougall, 1996, pp.14); is a judgment that a product or service feature, or the
product or service itself, provided (or is providing) a pleasurable level of
consumption-related fulfillment, included levels of under- or over
fulfillment(Oliver,1997, p. 13); is an experience-based assessment made by the
customer of how far his own expectations about the individual characteristics
or the overall functionality of the services obtained from the provider have
been fulfilled (Homburg and Bruhn, 1998); the fulfillment of some need, goal or
desire (Oliver, 1999); an emotional reaction to the difference between what
customers anticipate and what they receive (Zineldin, 2000); is based on a
customers estimated experience of the extent to which a providers services
fulfill his or her expectations (Gerpott et al. 2001).
For this study, customer satisfaction definition used is that of Homburg and
Bruhn (1998) which is an experience-based assessment made by the
customer of how far his own expectations about the individual characteristics
or the overall functionality of the services obtained from the provider have
been fulfilled.
The relevance of this definition to this study is that it indicates that customers
assess the mobile services based on experience of use and the rating is done in
accordance with the mobile services attributes. In this study, customer
satisfaction with the Nigerian mobile services will be evaluated based on
customers experience of network quality, billing, validity period and customer
care support.
BRIEF HISTORY
YEAR EVENTS 1987 - The Company was incorporated on the 12th October,
under the name of Manz Wear Private Limited.
1991 - The Company was converted into a Public Limited Company under the
name of Manz Wear Limited on 20th September.
- The Company name was changed to Pantaloons Fashions (India) Limited vide
certificate of incorporation dated the 25th September.
- The Company is engaged in the manufacture and marketing of quality Readymade Garments for men, including Trousers, Shirts, Denims, Blazers and Sleep
Suits, at its units located at Andheri in Bombay.
- The Company's Products are being marketed under the brand name
"PANTALOON" and "BARE NECESSITIES" through a network of over 300 dealers
spanning the Metro and Class l cities in the country.
- The Company is promoted by Shri Kishore Biyani, friends and associates.
1992 - The Company has successfully launched the "Pantaloon" Trousers,
Shirts, Denims, Sleep Suits and other ready-made garments.
1992 - The Company recently made a Public Issue of 25,55,000 equity shares
of Rs.10/- each for cash at par in May. The Company has allotted 36,57,100
Equity Shares on 28th July in consultation with the Stock Exchange Bombay.
1994 - The Company is launching a new brand of shirts called `John Miller' at
affordable prices.
1995- Pantaloon Fashions (India) Limited has launched "John Miller" shirts
1996- Pantaloons Fashions (India) Ltd. has launched the Yorker to concede with
the world cup
1997 - The Company has launched women's wear, children's wear and
household products in the last few months.
- The Company has issued 10, 00,000 Non-Cumulative Preference Shares Rs.
10/- each aggregating Rs. 1, 00,00,000/- on Private Placement basis.
1998 - The Company has introduced "Shrishti" range of SalwaarKameez. The
Company has also added Knitted T-shirts to its range of products.
1999 - The Company opened a state-of-art family store at prestigious
"Crossroads", Haji Ali, Mumbai, spread over an area of 4,500 sq. ft.
- The name of the Company was changed with the approval of the Members to
Pantaloon Retail (India) Ltd.
- The company has recently set up a state-of-the-art trouser manufacturing
plant in Mumbai with a capacity of 1,200 pieces per day.
- Entrepreneurial Jadeja is setting up a joint venture sports wear company with
the promoters of Pantaloon Retail (India) Ltd.
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 private
placement 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 stainfree with Scotchgard, a new
range of formal shirts and trousers.
2001
-Retail major Pantaloons has forged an alliance with Arvind Mills for the supply
of fabric and apparel for its in-house brands.
-Finalised a leasing deal to occupy 50,000 sqft of space for Rs 25 lakh
-Issue of 4 million equity shares of Rs.10/- each to the Promoters of the
company on a preferential basis at a price as per SEBI Guidelines.
-Tied up with Andhra Pradesh Handloom Weavers Co-operative Society and
National Institute of Fashion Technology
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.
- Preferential Issue of 8,65,000 Equity shares of Rs.10 each at a premium of
Rs.40 per share to Promoters & Associates.
2003
-Appoints Mr. VedPrakashArya 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") to acquire upto 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.
-Pantaloon sets up restaurant at Bangalore Central Hall
2006
-Pantaloon Retail enters into an agreement with CapitaLand Singapore
-Pantaloon Retail join hands with management schools across the country
-Pantaloon Retail India Ltd has launched its newest retail venture `Depot'
-Pantaloon Retail - Strategic alliance agreement with Ruchi Soya Industries
-Pantaloon Retail signed MOU with Blue Foods on July 31, 2006
-Pantaloon Retail signs MOU with Manipal Health Systems on August 05, 2006.
- Company has splits its Face value of Shares from Rs 10 to Rs 2
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 centers and Authorizedafter Sales
2012
- Kishore BiyanisPantaloon Retail to be re-named as Future Retail India Ltd
post demerger.
- Pantaloon Retail gains over 2% after govt gets Maya boost in RS.
- Future Group Demerges Pantaloons Retail Format from Flagship Company
Aditya Birla NUVO to Invest in Pantaloons Format.
- Future Group forays into elite gourmet retailing in Bengaluru with the launch
of the first Foodhall in the city.
- Pantaloon Retail & Future Ventures Demerge Lifestyle Fashion Businesses to
Create India's Leading Integrated Fashion Company
SWOT
Strengths and Opportunities
Brand leadership
Pantaloons is among the top 3 large format fashion retailers in India. With
continued focus on FreshFashion and catering to varied apparel and nonapparel needs of Indian consumers in a modern retailenvironment, Pantaloons
has emerged as a strong brand in the fashion industry over the past
twodecades. Pantaloons is constantly innovating designs, concepts and
products by infusing the latesttrends in fashion and clothing styles. Pantaloons
operates across varied categories viz., casual wear,ethnic wear, formal wear,
party wear and active wear for Men, Women and Kids. Non-apparel
Unparalleled reach
Pantaloons retail presence through its own stores across India at the marquee
locations is one of the
highest in the Indian fashion industry. As on 31st March, 2014, it was operating
through 81 large format
Company operated stores. The average size of a Pantaloons store is around
23,000 square feet. However,
depending on the city, location and target market size, the store size varies
between 11,000 square feetto 80,000 square feet. Together with 26 Factory
Outlets, Pantaloons span a retail space (carpet area) of
about 2.0 million square feet which is among the largest in India in the
organised fashion retail segment.
Factory Outlets act as a channel for liquidating slow moving inventory for
Pantaloons. The Company has
been able to tie up real-estate in superior locations to fuel uninterrupted
growth.
purchases, special offers and discounts, and invitations to exclusive events and
promotions.
Research Methodology
Research design:
A research design is a logical and systematic plan prepared for directing a
research study. The methodology and techniques designed is the program that
guides the investigator in the process of collecting, analyzing and interpreting
data.
The research in this case is exploratory research. Single cross-sectional
study has been used here. Information has been collected from a given sample
of population only once by drawing the sample of respondents from the target
population.
A Research Design consists of the following parameters
The measurement and scaling procedure that can be adopted for the
research are dependent on the questionnaire designed and validity or
degree of precision desired.
Questionnaire design
Descriptive
research:
This
method
is
used
by
analyzing
the
questionnaire that had been filled by consumers to find the main factors
among the factors that had been spotted by exploratory research.
Secondary data:
Secondary data was collected mainly through the Internet, companies
websites and annual reports and through various business articles.
Primary data:
The Primary Data was collected from the survey which involved getting the
mailed questionnaire filled by various respondents and through direct personal
interview.
Scope of the study:
Area: Metros
Time: 15 days
Product scope : Pantaloons
The research is done by not focusing on the effects of time and cost
consideration.
The selected sample unit, sample and sample size will be representing
the target population.
The method of convenient sampling and sample frame selection will not
lead to much error in answers.
PILOT SURVEY
In order to estimate the level of customer satisfaction at Pantaloons, we have a
conducted a pilot survey consisting of ten respondents.
The analysis and findings of the pilot study are as follows:
Q1.
Q2.
Q3.
Q4.
Q5.
Q1.
Q2.
Q3.
Q4.
Q5.
Q6.
Q7.
Q8.
Q9.
Q10.
CONCLUSION
Hence, after conducting the final survey we can conclude that most of
the customers are satisfied with the shopping experience at Pantaloons.
Hence, on the basis of the primary data collected through the survey we
can clearly reject the research proposal made above that Pantaloons is
facing low revenues due to dissatisfied customers.
RECOMMENDATIONS
Over and Above Retail Expansion of larger Geographical areas,
Pantaloons could also focus on changing consumer perception about the
brand that has now taken a face lift under Aditya Birla. Pantaloons
currently falls in between upmarket and mass-priced department chain, It
needs to communicate aggressively that it has changed for the better." It
is now sponsoring Block Buster Movie Endorsements with renewed
fashion lifestyle products addition of New Brands like SF Jeans, Byford,
Candies, Cherpie Pie.
LIMITATIONS
Sample size of 130 units may not be sufficient to draw the accurate
conclusion.
Some important aspects affecting the consumer behavior may not be
covered or revealed in the questionnaire used.