STRATEGIC RETAIL MANAGEMENT ASSIGNMENT TOPIC:

PANTALOONS RETAIL STORE

Submitted To:
Ms.Nudrat Moini Rehman

Submitted By:
Ashutosh Kr. Singh
MBA(Gen.),4th Sem

ABOUT PANTALOONS

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, the company operates over 12 million square feet of retail space, has over 1000 stores across 71 cities in India and employs over 30,000 people. Pantaloon Retail is the flagship enterprise of the Future Group, with a presence across multiple lines of business. The company owns and manages multiple retail formats that cater to a wide cross-section of Indian society.

Pantaloon Retail forayed into retail in 1997 with the launching of its fashion retail chain, Pantaloons in Kolkata. In 2001, it launched Big Bazaar, a hypermarket chain. This was followed by Food Bazaar, a food and grocery chain. Next up was Central, a first of its kind located in the heart of major Indian cities. Some of its other formats include, Collection I (home improvement products), E-Zone (consumer electronics), Depot (books, music, gifts and stationary), ALL (a Little Larger, fashion apparel for plus-size individuals), Shoe Factory (footwear) and Blue Sky (fashion accessories). It has recently launched its e-business venture, futurebazaar.com. The group's subsidiary companies include, Home Solutions Retail India Ltd, Pantaloon Industries Ltd, Galaxy Entertainment and Indus League Clothing. The group also has joint venture

companies with a number of partners including French retailer Team group, Lee Cooper, Manipal Healthcare, Talwalkar's, Gini & Jony and Liberty Shoes. Planet Retail, a group company owns the franchisee of international brands like Marks & Spencer, Debenhams, Next and Guess in India.

The complete list of retail brands created and promoted by Pantaloon Retail India Ltd across various retail segments. FASHION: Pantaloons, Central Big Bazaar and Fashion Station FOOD: Food Bazaar GENERAL MERCHANDISE: Central Malls and Big Bazaar SPECIALITY RETAILING: All , Blue Sky HOME: Home Town, E-Zone, Furniture Bazaar, Electronics Bazaar, Collection I and Mela BOOKS AND STORES: Depot COMMUNICATIONS: M- Zone and Converge M WELLESS: Star and Sitara E-TAILING: Futurebazaar.Com FOOTWEAR: Show Factory LEISURE AND ENTERTAINMENT: Bowling Co, Rain, Bollywood Caf, Chamosa, Fuel, Sports Bar, Food Stop and Your Kitchen.

ASSORTMENT & VARIETY @ PANTALOONS Pantaloons typically fall in the High Assortment High Variety quadrant. Although the assortment and variety in each of the categories is high, depth is emphasized upon in case of core merchandise categories such as mens formal wear, mens casuals and sportswear. Conversely, the typical fashion apparels and accessories are dominant on the Width front.

The lifestyle retail segment comprises of mainly luxury apparels, footwear & leather accessories, and jewelry. While these segments form a smaller portion of the total retail pie in India, penetration of organized retail is high in these segments. Footwear (32%), clothing (17%) and consumer durables (16%) are highly organized as compared to other components of the retail industry. While 32% of footwear industry sales and 17% of clothing industry sales are organized, penetration is particularly higher in branded footwear and luxury apparels, which is catered by lifestyle segment . Through its value retailing format, Pantaloon caters to the segments least catered by organized retailers in Lifestyle formats.

Merchandise Management

Pantaloons have applied the concept of category management in its day-to-day merchandising function as against the traditional brand management merchandising practice followed by most retailers. Category managers look at sales and margins of each brand in a category. The whole idea of category management is to create products across length and breadth of a category at different price points, fabrics, design, shape, seasons, color and size. They are characterized by a broad variety, deep assortment. The Category manager develop a merchandising strategy for the

category taking into consideration customer profile, classification, resource structure, vendors, fashion trends, items and price points.

Pantaloons visual merchandising is creative, innovative and outstanding which can be seen from its own in house private brands such as John Miller. All the merchandise is placed at both 360 degree and 180 degrees. The new launched products are showed by prominent color back ground. Window display is highly interactive for impulsive buyer.

The category manager visit stores regularly to check assortments of merchandise displays, stock levels and old season merchandise, consult with team leaders and sales people on problems and suggestions. Although no concrete information was provided with respect to the ways of forecasting the sales and inventory planning, it was highlighted that a buffer stock of approximately 10-12% of the total stock is maintained in the store.

PROMOTION STRATERGY OF PANTALOONS They use magazines, newspapers, television, radios , hoardings, internet etc for promoting the brand . They have joint ventures and alliances with many companies to promote the brand. Seasonal Discounts , Sales Discounts during Festivals are offered to attract consumers

 Hoardings: Pantaloon puts its hoarding at prime locations, featuring the upcoming Fashion events or its brand ambassadors who are generally eminent celebrity.

Category manager plans promotions / brand or product building schemes. The category manager identifies slow movers and also disposal plan for the same.

CUSTOMER RELATIONSHIP MANAGEMENT : To survive in the tough competition Pantaloon uses different strategies to attract customers and to retain them like: Loyalty program : Green Card is passport to a whole new world of exclusive benefits and privileges.

Gift vouchers

Pricing
Pantaloons India has brought a whole new revolution when it comes to pricing strategies, which is evident through the success of its Big Bazaar and Food Bazaar outlets. Since Pantaloons provides products to a potentially large number of customers at affordable prices, it falls in the High Turnover - Low Margin Category. Price range is average. They propose to provide branded products at 10% less than the MRP and 20% off on the local brands, which is similar to what has been carried out in Big bazaar.

Q.Why & why are not Pantaloons fallowing everyday low pricing strategy ? Sol. Pantaloons are fallowing EDLP strategy because of underwritten reasons : 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 mens wear retailers earned margin between 55%-60% on private labels while in womens wear it was between 48%-50% Special event pricing Promotional pricing

Perceptual Map of Pantaloon

High Price Globus Shoppers Stop Pantaloon Low Assortment High Assortment

Low Price

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 pricingBundling

PROMOTION
Saal ke sabse saste teen din Future card Wednesday bazaar