final project rsm

7/28/2019 Final Project RSM

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A

Project on Retail Outlet


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CHAPTER -1

INTRODUCTION


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Overview:

As Indias leading retailer, Pantaloon Retail inspires trust through innovative offerings,

quality products and affordable prices that help customers achieve a better quality of life

every day. We Serve Customers In 93 Cities And 60 Rural Locations Across The

Country Through Over 17 Million Square Feet Of Retail Space.

Pantaloon Retail Is The Flagship Company Of Future Group, Indias retail pioneer

catering to the entire Indian consumption space. Through multiple retail formats, we connect

a diverse and passionate community of Indian buyers, sellers and businesses. The collective

impact on business is staggering: Around 300 Million Customers Walk Into Our Stores

Each Year and choose Products And Services Supplied By Over 30,000 Small, Medium

And Large Entrepreneurs and manufacturers from across India. This number is set to grow.

The Net Increase In Retail Space During The Year Was 2.26million Square Feet,

Taking The Total Operational Space To 15.24 Million Square Feet.

The Company Opened 6 New Stores During The Financial Year, including ones in

Vishakapatnam, Jaipur, Thane, Raipur, Surat And The Third One In Bangalore . The

Total Operational Space For This Format, Along With Brand Factory Is Now At 2.59

Million Square Feet.

Lines of Business

The company is present across several lines of business which have various formats (stores)

Plywood, The Dollar Store (JV)

Fashion - Pantaloons, Central, aLL, Brand Factory, Blue Sky, Top 10, FashionStation, Big Bazaar, Lee Cooper (JV)

General Merchandise - Big Bazaar, Shoe Factory, Navras, Electronics Bazaar,Furniture Bazaar, KB'S FAIR PRICE, Food Rite

Electronics - eZone, Electronic Bazzaar, Koryo , Sensei, STAPLES (JV) Home Improvement - Home Town Furniture - Collection i, Furniture Bazaar, Home Bazaar E-tailing (online shopping) -


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Books and music - Depot Leisure and entertainment - Bowling Co., F123, TGIF (Thank God it's Friday!) Wellness - Star & Sitara, Tulsi Telecom and IT - Gen M, M Bazaar, M-Port, ConvergeM, Future Axiom, T 24, One

Mobile (in alliance with TATA Teleservices)

Consumer durables - Koryo, Sensei, IPAQ Service - E Care, H Care, Design & Service Malls - Central (Bangalore, Hyderabad, Pune, Mumbai,Kochi, Vadodara, Gurgaon,

Indore, Ahmedabad, Thane, Surat)

Investment and savings - Insurance: ULIP, Pension, Endowment, etc.

Retail Space In Million Squre Feet:

Pantaloons Retails Limited


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Future Value Retail

Milestones:(2012)

On 1st May 2012, the company introduced a new retail initiativePublic Holiday Sale Foodhall the premium lifestyle food destination launched its second store in Bengaluru on 4th

May 2012

Big Bazaar redefined the concept of customer service with the launch of the RajajinagarFamily Centre in Bengaluru with its unique Seva initiative on 24th February 2012

Future Sharp Skills Ltd. launched its first skill centre in Kolkata with a vision to train andprovide sustainable livelihood to five lakh youth of West Bengal by 2022

Pantaloons became the first retailer to introduce a reality hunt as it set out on a countrywidesearch for their next Fresh Face

Pantaloons launched its first store in Ludhiana, Visakhapatnam, Bilaspur Future Group started Aadhaar Franchise Future Supply Chains Express Logistics business became the fastest profitable Express

Business in India

Keeping pace with the ongoing trends Fashion@ Big Bazaar decided to reposition itself asfbb

Pantaloons joined hands with PAYBACK . Being India's largest and one of the strongestloyalty programs in Europe, PAYBACK offers were made available to all Pantaloons

customers

Big Bazaar launched its home delivery services in Mumbai.


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CHAPTER-2

DELIVERING VALUE THROUGH

RETAIL FORMATS


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RETAIL FORMAT:

They Operate Multiple Retail Formats In Both The Value And Lifestyle Segments Of

The Indian Consumer Market Including:

Pantaloons - a chain of fashion outlets.

Big Bazaar - a uniquely Indian hypermarket chain.

HomeTown - One-stop destination for every need of the aspirational Indian home-owner.

Food Bazaar - a supermarket chain that blends the look and feel of Indian bazaars with

modern retail aspects like choice, convenience and quality.

Central - a chain of seamless destination malls.

Ezone - eZone brings to you the latest in electronics at the lowest prices.

The Other Formats Include Brand Factory, Planet Sports, All And More.

As modern retail drives fresh demand and consumption in new categories, our strategy is

based on a deep understanding of Indian consumers the products they want, and making these

products available in every city in every store format. We are in line with our broad objective


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of being a catalyst in Indias consumption-led growth and being a positive agent of change in

the communities we serve.

Winning the Hearts of Indian Consumers

Pantaloon Retail makes every effort to delight its customers, tailoring store formats to

changing Indian lifestyles and adapting products and services to their desires.

They operate some of Indias most popular retail formats. Across value and lifestyle

segments, the multi-format retail strategy caters to all the consumption needs of a wide cross-

section of Indian consumers.

Pantaloon Retail (India) Ltd. focuses on the lifestyle retail segment led by

the Pantaloonsand Central formats.

Future Value Retail focuses on the value retail segment through theBig Bazaar, FoodBazaar and KBs FairPrice formats.

Its business is well capitalized to propel pure retail growth momentum. They believe the

Indian consumption story is intact and the combination of consumption and investment

driven growth will power our success. They aim to maintain the focus on increasing

consumption demand through innovative customer engagement activities.

The aim to continue on their growth path through a combination of realization efficiency and

space expansion. The Aim Is To Maintain The Momentum Of Topline Growth Through

Continuous Efforts To Increase Store Efficiencies And Productivity As Evident In

Improved Throughputs.


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CHAPETER-3

STORE LOCATION


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The Location Of A Retail Store Occupies An Important Place In Retail Strategy.

It not only conveys the image of the store, but also influences the merchandise mix and

the interior layout of the store. While the merchandise mix can be changed and prices can

be adjusted, it is difficult to change the decision on store location.

Traffic

The trafficpedestrian as well as vehicularthat passes the site is an important determinant

of the potential sales that can be generated from a store. A pantaloon is known to have good

parking space whereverits located.

Accessibility of the market

Accessibility of a market is defined in terms of the availability of public transport and

road/local trains connections to the markets. It is mostly located in posh locality in the center

of the city. Further the easy availability of transport facilitates makes the location really

accessible for shopping.

Visibility

Pantaloons is situated very close to the main road. Pantaloons being a three floor building

have great visibility. To enhance the visibility pantaloons has put its sign board on the top

of the building.

Method of estimating demand

As modern retail drives fresh demand and consumption in new categories, its strategy is

based on a deep understanding of Indian consumers the products they want, and making

these products available in every city in every store format. They are in line with the broad

objective of Being A Catalyst In Indias Consumption-Led Growth And Being A

Positive Agent Of Change In The Communities We Serve.


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CHAPTER-4

CATEGORY MANAGEMENT


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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, colour 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. 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.

Pantaloon Retail makes every effort to delight its customers, tailoring store formats to

changing Indian lifestyles and adapting products and services to their desires. Pantaloons,

Indias favourite fashion chain has 65 stores across the country offering the most popular

loyalty program Green Card.

Display Areas, Walkways & doors

Pantaloons stores have very attractive display areas, in which they put the dummies,

accessories & all. They have a broad walkway & doorways. Also there are small screens put

up at various corners which are most visible, and which they show case ads of their own as

well as other brands available there. Here each rack are placed in such a way so that

consumers can easily take their wanted products. Pantaloons have their own in house brands

in Apparel as well as different sections. 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 are 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.


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CHAPTER-5

SUPPLY CHAIN MANAGEMENT


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The basic need of Pantaloons was to have a robust transaction management system and

an enterprise wide platform to run the operations.

The Solution was the implementation of SAP

Some of the Qualities Of SAP Retail Solutions are :

It supports Store & channel management Merchandise assortment management Supply chain management Retain revenue management.

SAP implementation is not a single phase process. The project was divided into

Three Phase:

The First Phase involved blueprinting existing processes and mapping them to the desired

state. In this phase, the entire project team worked on current processes within the structure

of the organisation, analysed and drafted them. This blueprint was later used in the formation

of new states of the solution. Since the SAP would combine all the processes, each and every

one of these had to be evaluated.

In The Second Phase, the SAP platform was developed with the help of Novasofts

template which was predefined by SAP after evaluation of Pantaloons needs and expertise in

retail solutions.

The Last Phase in this project was for stores to switch over to the new system and for

current data to be ported. Before the SAP implementation, all the data was unorganised. This

data had to be migrated to the new SAP application.

The Key Challenges in this project were not in the implementation. Rather, the

difficulties were faced during the data migration and in managing the interim period

when the project was underway for about six months. Migrating unorganized data to an

organised format is a challenging task.


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Benefits:

Greater visibility of AR and AP throughout tprofit centers. Increased business transparency via drill down reporting capabilities Real-time, continuous reconciliation of cost elements and expense accounts, freeing

up personnel for more value-added activities

Ability to close books 15% to 20% faster 5% to 10% reduction in accountsreceivables


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CHAPTER-6

RETAIL BUYING


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At The Heart Of Future Group's Ethos

At Future Group, corporate social responsibility, inclusive growth and sustainability are at the

core of our strategy and business practices. This reflects in our commitment to the

community, environment and to every stakeholder in building a stronger foundation for our

long-term, sustainable growth.

We believe modern organized retail has the power to strengthen the economy, create grass

root employment and contribute significantly to social inclusion. As Indias premier retail

player and one of Indias leading home-grown business houses, Future Group is present

across the consumption value chain. Through millions of customers and thousands of

suppliers, we are conscious of the economic, social and environmental impact of our

activities.

We believe the challenges of inequity in our robust and growing domestic economy need to

be tackled through sustainable development. Consequently, our principles are focussed ontwo main areas: integrating sustainable development into business activities and promoting

sustained economic development for the country.

Future Group targets long-term sustainability in its businesses through three aspects


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CHAPTER-7

STORE LAYOUT AND DESIGN


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PANTALOONS LAYOUT

Pantaloons follows a free form store layout. No particular format is followed anything is

placed anywhere but strategically. Pantaloons fall under following categories-

Departmental stores, Malls, E-retailers Here when it comes to arranging the clothes, same

type of clothes are put up together in different sizes so that same clothes are available for

every size at one point only.

Being a department store, Pantaloons exhibits an arrangement of merchandise in a

freeform layout. Such a layout allows free movement and also encourages people to browse

and shop with convenience.

The floor space is allocated on the basis of the contribution of a particular department to

business. As such, the Mens department has been assigned an entire floor. The total area of

the entire store is approximately 50000sq.ft.


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The layout of the store is modified on a regular basis by shifting the fixtures and display

of the merchandise so that the customers develop a feel of novelty in the store.

This Format Was Exhibited By All The Three Floors Of The store.


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Store Design- Store Exteriors & Store Interior

Pantaloons follows a theme based interior, like a corner is assigned to every brand and that

brand put up its product as per its liking. Also the posters and ads for discounts and offers

for them are put up there only Exteriors of pantaloons stores are very attractive & eye

catchy. They put up fresh fashion collections on the dummies on the entrance.

Exteriors Design

The exterior appearance of a store silently announces what customers can expect inside.

Good exterior visual merchandising attracts attention, creates interest and invites the

customer into the business.

The location of the building is very prominent. It is very much closer to the main road. It has

a modern look which is further enhanced by the silver finish as well as the green color

appropriately resembling the brand. The name Pantaloons Urbania at the top

of the building further enhances the stores visibility.

The clothes and accessories available in the store are nicely put up at the windows

of the building. At night the building is brightly lit up. The focus is

largely on the name plate at the top. The entrance has an automatic door closing system.

There is always someone to greet the customers entering the shop. Towards the

immediate right of the entrance is the baggage counter. Also a wheel chair is kept for the

disabled. As one proceeds, there is a customer grievances desk and a counter for green card

members. A couch has also been placed near the desk, which is really comforting

in case of a queue.

Interior Store DesignF loori ng and Ceil ing

The interior layout generates good brand associations through appropriate color

combinations. The white color of the walls and floor coupled with the green color of the

visual merchandise helps in portraying the brand effectively.


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Graphics and Sign ages

Exactly opposite to the entrance gate of the store is a store directory mentioning the various

sections/departments of the entire store (Ground, First and Second floors). On the right

hand side wall is a sign gage (exactly opposite to the customer grievances desk)

indicating the promotional schemes? However the directional signs are not quiet visible.

Lighting

Good lighting in a store involves more than illuminating space. Lighting is used to highlight

merchandise, sculpt face and capture a mood feeling that enhances the store image. White

lighting has been majorly used in the store so that the customers can identify the requisite

colors of the apparels. For lightening mostly focus lights are used for the clothes that are

hanged on wall white lights are used but for toys section as well as shoes section yellow

lights are used and even for the traditional wear yellow lights are used as this light match

with the color of the products put up there and even make them look more eye catchy and

attractive. Stores have transparent flooring furnished floorings.


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CHAPTER-8

RETAIL COMMUNICATION MIX


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A communication program can be designed to achieve a variety of objectives for the retailer,

such as building a brand image of the retailer in the customer's mind, increasing sales and

store traffic, providing information about the retailer's location and offering, and announcing

special activities. Retailers communicate with customers through advertising, sales

promotions, store atmosphere, Web sites, salespeople, e-mail, direct mail, m-commerce,

community building, publicity, and word of mouth. These elements in the communication

mix must be coordinated so customers have a clear, distinct image of the retailer and are not

confused by conflicting information. Many retailers use rules of thumb to determine the size

of the promotion budget. Marginal analysis, the most appropriate method for determining

how much must be spent to accomplish the retailer's objectives, should be used to determine

whether the level of spending maximizes the profits that could be generated by the

communication mix.

External communication

Pantaloons uses all the means of advertising like television, print, media, newspaper,

magazine, direct mail etc. The print media ad:


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CHAPTER-9

ESTABLISHING A PRICING

STRATEGY


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Prices are one of the most tangible ways to create differentiation and hence build the image of

the store. From the customers point of view price is frequently a major reason for shopping

in a particular store. Decision to price an item at a certain level would interact with the

retailers decisions on lines of merchandise carried, location, promotion, credit, customer

services, the store image the retailer wishes to convey as well as the legal constraints.

Pantaloon Retail inspires trust through innovative offerings, quality products and affordable

prices that help customers achieve a better quality of life every day.

Differentiated offering:

It Offers The Most Popular Loyalty Program:

Green Card. Payback Loyality Program. T24 provide customers with a dual advantage all 24 hours of the dayShop More,

Talk More and Talk More, Shop More.

They Offer Different Types Of Price Like :

Seasonal Price, Discount Price, Bundle Price.


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CHAPTER-10

REAL PICTURES OF THE

PANTALOON RETAIL


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final project rsm

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