Pantaloons Retail (India) LimitedThe Indian Retailing Giant

Submitted to : Mr. Hitesh Manocha

Submitted by : Nisha Garg (29) Priti Nirala (34) Rajni Kundu (40) Rashmi Agarwal (42) Smita Jain (56) Jyoti Sharma (212)

Introduction

Indias 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 ,Big Bazaar ,Food Bazaar, Gold Bazaar, and Central Mall. It was one of the largest players in discounting retail store. A flagship company of Future Group.

Major Milestone

1987: Company incorporated as Manz Wear Private Limited. Launch of Pantaloons trouser, Indias 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 multibrand retail outlets across the nation.

1995: John Miller Formal shirt brand launched. 1997: Pantaloons Indias family store launched in Kolkata 2001: Big Bazaar, Isse sasta aur accha kahi nahin - Indias first hypermarket chain launched. 2002: Food Bazaar, the supermarket chain was launched. 2004: Central Shop, Eat, Celebrate - Indias first seamless mall was launched in Bangalore.

STP Of Pantaloons
GEOGRAPHIC : urban, metropolitan cities DEMOGRAPHIC : Income - middle & upper-middle PSYCHOGRAPHIC : Socioeconomic Class - B1,B2 Lifestyle - culture-oriented, sportsoriented, outdoor-oriented. BEHAVIORAL : Occasions - regular Benefits - quality ,economy, service Usage rate - high Loyalty status strong Attitude - positive

SWOT
Strengths Pioneer in the industry, largest market share. Presence in major cities. Trusted and respected brand by the consumers. Weaknesses Less Conversion level-despite high footfalls, the conversion ratio has been very low in the retail outlet

 Opportunity Organized retail is only 2% of the total retailing market in India. It is estimated to grow at the rate of 15-20% by 2010. Threats Being number one is means that you are the target of competition. Price wars between competitors, price cuts & so on could damage profits for Pantaloons Retail India

Big Bazaar

PRIL opened its first Big Bazaar in Kolkata. The USP of the Big Bazaar store is its low pricing. More focused on unbranded products. It followed mass retailing hyper store in which merchandize was stacked up to ceiling. The store stocked a wide range of products including apparels, footwear, utensils and other household items etc. and it covers 70% of customers shopping. Apparels and non-food segments were more profitable than food segment. The tagline Isse sasta aur accha kahin nahi highlights its low price.

Consolidators appointed at each category of goods who dealt directly with manufacturers and thus there were low distribution costs. For eg. -PRIL tied up with Arvind mills , Liberty (footwears), Cello(plastic items). By 2003, the company promoted its own apparel brands, especially jeans and shirts, at Big Bazaars to increase margins. In 2003, PRIL launched its Gold Bazaar which was Rs.400 bn gold retailing business. PRIL also tied up with ICICI bank to launch a special co-branded card called Big Bazaar ICICI credit card.

STP Of Big Bazaar

GEOGRAPHIC : urban DEMOGRAPHIC : Income - middle, lower middle PSYCHOGRAPHIC : Socioeconomic class- B1,B2 Life style - family-oriented, culture-oriented BEHAVIORAL : Occasions - regular Benefits - economy User status - regular

Target Audience

Big Bazaar target consumers who are price conscious and seek value in purchase made. The large and growing young working population is a preferred customer segment . Big Bazaar specifically targets working women and home makers who are the primary decision makers

SWOT
Strengths A vast variety of items available under one roof. Everyday low prices, which attract customers. Maximum percent of footfalls converted in sales Biggest value retail chain in India. It offers a family shopping experience, where entire family can visit together. Weaknesses General perception: Low price = Low quality. Overcrowded during offers. Long lines at billing counters which are consuming.

time

 Opportunities A lot of scope in Indian organized retail as it stands at approximately 2%. Increasing mall culture in India. More people these days prefer to visit big stores where they can find large variety under one roof. Threats Unorganized retail also appears to be a threat to Big Bazaars business. A large population still prefers to visit local convenient stores for daily purchases Changing Government policies International players looking to foray India.

Food Bazaars

The first Food Bazaar, set up in Lower Parel in suburban Mumbai in 2001. Replication of Local Mandi, displaying staples in the open. Targeted on Indian customers to purchase quality goods on wholesale prices. Built on the convergence model, sourcing food and vegetables directly from consolidator who were purchasing from farmers.

Products at food bazaars ranged from fruit and vegetables to staples, FMCG products and ready to cook products. The store was divided into six Hot Shops on the basis of product categories. Farm fresh Chill station Golden harvest Chef Zone Hungry kya! Head to toe In 2003, PRIL launched its own private labels in tea, salt and spices at Food Bazaar.

STP Of Food Bazaars

Geographic : - Urban Demographic : Income - Upper middle and High Psychographic : Socioeconomic class- A1, A2, B1, B2

Behavioral : Occasions Benefits User status

- Regular - Quality - Regular

SWOT Analysis
Strenghts: Quality & Hygienic products Different products under one roof Time saving for customers Weaknesses: Competitors - FoodWorld, Subhiksha. Perishable goods are difficult in managing and handling

 Opportunities: Busy schedule of people Increasing trend of shopping under one roof Increasing demand of processed and ready to eat food. Threats: Government Regulations Awareness about processed and packaged food.

Recommendation

It is entering into too many businesses at one time which might result to dilution of its flagship business of garment retailing. So, they should focus on their present business. PRIL can expand their business in small cities. They can set various Games Zones in their various retail outlets. Use of latest technology.

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