STRATEGIC RETAIL MANAGEMENT

ASSIGNMENT

TOPIC:

PANTALOON’S RETAIL STORE

Submitted To: Submitted By:

Ms.Nudrat Moini Rehman Ashutosh Kr. Singh

MBA(Gen.),4th Sem

ABOUT PANTALOONS

Pantaloon Retail (India) Limited, is India’s 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 Café, 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 men’s formal wear, men’s 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 men’s wear retailers earned margin between 55%-60% on private labels while in

women’s wear it was between 48%-50%

Special event pricing

Promotional pricing

Perceptual Map of PantaloonHigh Price

Low Price

Low Assortment High Assortment

•Globus

•Shoppers Stop

•Pantaloon

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 pricing-

Bundling

PROMOTION Saal ke sabse saste teen din

Future card

Wednesday bazaar