You are on page 1of 19

A Retail Marketing Project

PANTALOON Retail (India) Ltd

Submitted to:-
Prof. Sujit Sengupta

Submitted By:-

Abhineet Gaurav
Arshita Srivastava
Ekta Shukla
Sourish Sengupta
Varun Suri
ACKNOWLDGEMENT
We would fail in our dream of making this project the best if we do not acknowledge the most
loving care and co-operation enjoyed by us, all through the working on this project.
We take this as an opportunity to express our sincere gratitude to Prof. Sujit Sengupta and Mr.
Udyan Chauhan, floor manager, “pantaloons” at Vaishali in Ghaziabad.Their guidance has
always been of immense help and support during the making of this project and also helped us a
great deal in enhancing our skills in the process.
We also thankful to all the employees of ‘Pantaloons’ who helped us in making our project, their
guidance carried us all through the preparation of this project.
We would like to thank our college, IILM INSTITUTE FOR HIGHER EDUCATION for
providing us with the excellent opportunity of working on this project and for guiding us all
through the way. It gave us all immense pleasure in embedding deep into the project and
acquiring new knowledge on the way.
We would like to extend our heartfelt gratitude towards the various websites and the books we
referred to. Without them the project would not have been possible.

Abhineet Gaurav
Arshita Srivastava
Ekta Shukla
Sourish Sengupta
Varun Suri

Pantaloon Retail (India) Limited


Pantaloon Retail
(India) Limited is India's leading retailer that operates multiple retail formats in both the
value and lifestyle segment. Pantaloon has ushered a retail revolution in India and its
founder Kishore Biyani is known as India's "King of Retail". Pantaloon's headquarter is
in Mumbai.
The company currently operates over 5 million square feet of retail space and has
plans to increase it to 30 million sq. ft by 2011. Pantaloon has plans to open over 3000
new stores by 2010.
Pantaloon’s fast pace of growth in retail shelf space will continue over the next few
years. The company will add about 1m sq of space in each of the next two years. The
company aggregate capex over the next two years is about Rs 1.5bn and its gearing may
increase to 1.5-2.0. Management is seized of the fact that delivering on the promised
schedule of store openings and management bandwidth to manage this growth are critical
challenges ahead. To cope, the company has strengthened the second line of management
and is beefing up its systems and processes. Pantaloons brisk growth in the last one year
has been in value retailing (Food Bazaar and Big Bazaar).

Pantaloon is the only retailer in the country to have demonstrated success across
multiple retail formats viz. Pantaloons-the departmental store, Big Bazaar-the food and
grocery store. Post establishment of its business model it is planning rapid scale up.
Pantaloon – is the leading retail company in India today. Currently 42 stores located in
seventeen cities, more stores are slated to come up in yet other cities across different zones.

Within existing cities, more stores are being launched through the different formats
that the company specializes in (Pantaloons, Big Bazaar, Food Bazaar, Central). While the
Pantaloon is the original apparel store, the Big Bazaar is the discount hypermarket and
Food Bazaar is, of course, for grocery and edibles. Central is India’s first seamless Mall
which was opened in Bangalore in May 2004. The company’s growth has been by strategy
and design. The format strategy proved to be a huge success. However, the growth was not
restricted only to formats and it has added significantly to its existing retail space. In 2002–
03 the retail space stood at 0.56 million sq feet, currently it has crossed 1.1 million sq feet.

As per the space sign till date, the company expects to cross a whopping 3
million sq feet in the next two years. The impressive performance of the company is
reflected adequately in the financial results of the company. The turnover increased from Rs
444.83crores in 2002–03 to Rs 658.31crores in 2003-04, while the net profit increased from
Rs 11.41crores to Rs 19.78crores. The future plans of the company remains focused on
growth. In fact, the frenetic pace with which the company is growing should make it shortly
touch its target turnover of Rs 1000crores. A special strength of the company has been to
recognize the changing dynamics of the Indian market in the coming years. It has gone
beyond the existing boundaries and implemented a more holistic approach in their strategy.
They are now following a multi pronged approach, which comprises geographic strategy,
product strategy, customer experience strategy, communication strategy and margin
strategy.

Pantaloon has the status of being an anchor tenant in India. As the country
witnesses a mall-making frenzy (250 nos. in the building process), the company is able to
get bigger and better deals from the property dealers and builders. As a matter of fact, the
company aims to improve its margin through various means. With established formats and
increasing retail space, it is in position to bargain better and source directly from the
manufactures. It has also stepped up momentum on the private label front. In addition, to
almost doubling the existing private labels in Pantaloon; it has launched in-house label in
both Big Bazaar and Food Bazaar. The total numbers of private label is now almost 50.
This has resulted in more variety low price for the customers.

Since Pantaloon has a vertically integrated structure and manufacturing expertise –


it is poised to reduce the current time to market and launch cutting edge fashion, which will
have a positive impact on the existing margins. In the last decade, Pantaloon came to be
known as India’s family store. The latest demographic studies indicate that India’s
Population is getting younger. Pantaloon now plans to be more relevant to the younger
consumers and will position itself differently in terms of identity, merchandise, and retail
concept. According to the principal partner of KSA Technopak, a leading retail consultancy
firm, Mr Harminder Sahni, “To continue opening stores at the rate at which he is doing
without being exhausted, is something most players in this sector have not been able to
manage.” Says the retail market watchers: pantaloons will be the Indian equivalent of
Spanish fashion retailer Zara.

Pantaloon Retail (India) Limited was incorporated as Manz Wear Private Limited
by Kishore Biyani on 12 October 1987, converted into a public limited company in
September 1991, renamed as Pantaloon Fashions (India) Limited a year later and thereafter
into Pantaloon Retail (India) Limited in July 1999. The company is headquartered in
Mumbai. Mr Kishore Biyani is the Managing Director

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 (Bombay), the company operates over 10 million
square feet of retail space, has over 1000 stores across 61 cities in India and employs over
30,000 people.
The company’s leading formats include Pantaloons, a chain of fashion
outlets, Big Bazaar, a uniquely Indian hypermarket chain, Food Bazaar, a supermarket
chain, blends the look, touch and feel of Indian bazaars with aspects of modern retail
like choice, convenience and quality and Central, a chain of seamless destination malls.
Some of its other formats include, Depot, Shoe Factory, Brand Factory, Blue Sky,
Fashion Station, aLL, Top 10, mBazaar and Star and Sitara. The company also operates
an online portal, futurebazaar.com.
A subsidiary company, Home Solutions Retail (India) Limited, operates Home
Town, a large-format home solutions store, Collection i, selling home furniture products
and E-Zone focussed on caterng to the consumer electronics segment.

Pantaloon Retail was recently awarded the International Retailer of the Year
2007 by the US-based National Retail Federation (NRF) and the Emerging Market
Retailer of the Year 2007 at the World Retail Congress held in Barcelona. Pantaloon
Retail is the flagship company of Future Group, a business group catering to the entire
Indian consumption space.

Future Group
Future Group is one of the country’s leading
business groups present in retail, asset management,
consumer finance, insurance, retail media, retail spaces
and logistics. The group’s flagship company, Pantaloon
Retail (India) Limited operates over 10 million square
feet of retail space, has over 1,000 stores and employs
over 30,000 people.

Future Group is present in 61 cities


and 65 rural locations in India. Some of its leading
retail formats include, Pantaloons, Big Bazaar, Central,
Food Bazaar, Home Town, eZone, Depot, Future
Money and online retail format, futurebazaar.com.
Future Group companies includes, Future Capital
Holdings, Future Generali India Indus League Clothing
and Galaxy Entertainment that manages Sports Bar,
Brew Bar and Bowling Co. Future Capital Holdings,
the group’s financial arm, focuses on asset management
and consumer credit. It manages assets worth over $1
billion that are being invested in developing retail real
estate and consumer-related brands and hotels. The
group’s joint venture partners include Italian insurance
major, Generali, French retailer ETAM group, US-
based stationary products retailer, Staples Inc and UK-
based Lee Cooper and India-based Talwalkar’s, Blue
Foods and Liberty Shoes.
1.
Company profile:

Registered Office
Knowledge
Mr. KishoreHouse,
BiyaniShyam Nagar
Managing Director
Mr. Gopikishan Biyani
Wholetime Director
Mr. Rakesh Biyani
Wholetime Director
Mr. Shailesh Haribhakti
Director
Mr. S. Doreswamy
Director
Dr. Darlie Koshy

INDUSTRY OUT LOOK


Industry Evolution

• Traditionally retailing in India can be traced to

• The emergence of the neighborhood ‘Kirana’ stores catering to the convenience of the
consumers

• Era of government support for rural retail: Indigenous franchise model of store chains run
by Khadi & Village Industries Commission

• 1980s experienced slow change as India began to open up economy.

• Textiles sector with companies like Bombay Dyeing, Raymond's, S Kumar's and Grasim
first saw the emergence of retail chains

• Later Titan successfully created an organized retailing concept and established a series of
showrooms for its premium watches

• The latter half of the 1990s saw a fresh wave of entrants with a shift from Manufactures
to Pure Retailers.
• For e.g. Food World, Subhiksha and Nilgiris in food and FMCG; Planet M and Music
World in music; Crossword and Fountainhead in books.

• Post 1995 onwards saw an emergence of shopping centers,

• mainly in urban areas, with facilities like car parking

• targeted to provide a complete destination experience for all segments of society

• Emergence of hyper and super markets trying to provide customer with 3 V’s - Value,
Variety and Volume

• Expanding target consumer segment: The Sachet revolution - example of reaching to the
bottom of the pyramid.

• At year end of 2000 the size of the Indian organized retail industry is estimated at Rs.
13,000 crore

Retailing formats in India


○ Malls:

The largest form of organized retailing today. Located mainly in metro cities, in
proximity to urban outskirts. Ranges from 60,000 sq ft to 7, 00,000 sq ft and
above. They lend an ideal shopping experience with an amalgamation of product,
service and entertainment; all under a common roof. Examples include Shoppers
Stop, Pyramid, Pantaloon.
○ Specialty Stores:

Chains such as the Bangalore based Kids Kemp, the Mumbai books retailer
Crossword, RPG's Music World and the Times Group's music chain Planet M, are
focusing on specific market segments and have established themselves strongly in
their sectors.

○ Discount Stores:
As the name suggests, discount stores or factory outlets, offer discounts on the MRP
through selling in bulk reaching economies.

Core Target
Audience:-
Typically a 30 year old guy who works and lives in the city. He buys clothes because he’s
fashion-conscious, without being a slave to fashion. He enjoys nice clothes because he likes to be
comfortable and look appealing. Pantaloons, as an international brand, has to adapt to this guy's
specifics (where he spends his money, whether he has a lot of money or a little, whether he’s
large or small, whether or not he likes to be given advice, whether he likes such and such style,
colour and whether he has a preference for casual, sportswear or city wear).

Product:-
Specialists in men’s ready-to-wear, Pantaloons offers its customers trousers, shirts, sweaters, t-
shirts, polo-shirts, suits, jackets, belts, ties and boxer shorts. A fashion collection reinterpreted
every season in order to remain the most innovative, structured around our three categories -
Sportswear, Casual and Business. The brand is retailed through exclusive brand outlets (EBOs)
and select stores of Pantaloons and Central.
Brand Factory

Brand Factory hosts several Indian and International fashion brands including Levis,
Pepe Jeans, Dockers, Wrangler, ProVogue, Arrow, Nike, Adidas, Reebok, Louis Phillip, Allen
Solly, Reid and Taylor, Gini and Jony amongst others.
Pantaloons Brand Factory brings to the Indian consumers the promise of revolutionizing
value shopping by offering the best Indian and International brands at Smart Prices
Pantaloons Brand Factory promises its customers that value shopping is not about
seconds’ experience, it’s not about a garage sale environment and it’s not about buying cheap.
Instead, it’s all about an amazing experience of ‘Buying Smart’.
The thought behind Brand Factory is to raise the bar of expectation and experience
when it comes to ‘Brand + Bargain Shopping’. Over the years Factory Outlets have become
distinct shopping destinations with distinct audiences. With fashion cycles reducing, larger
quantities of stocks are reaching factory outlets. But then what gets compromised in the process
is the brand and its image.
The emphasis at Brand Factory is to offer the customer the widest range of brands and
categories possible at absolutely great prices, in an ambience that befits the brand. Brand Factory
presents the brands in a fully air-conditioned, slick environment varying between 70,000 to
1,50,000 square feet.
The stores offers a wide range of products including apparels for men and women; infant
wear; accessories; cosmetics; footwear; sportswear, luggage; home linen and much more.
Pantaloon announced launching of a series of value stores--brand factory across the country
offering fashion brands at factory prices.

The first of the four shops would come up in Bangalore shortly with the others being planned in
Hyderabad and Ahmadabad, Mr. Vishnu Prasad, President South and CEO Central and Brand
factory told newsmen here today. By 2010 around 55 outlets would be operational in 40 cities
across the country he added.

Brand Factory brought to consumers the best brands that India and the world has to offer
at discounted prices, without compromising on the shopping experience. The brands would be
presented in a fully air-conditioned slick environment spanning 60,000 to 100,000 sq ft.

Over the years factory outlets have become distinct shopping destinations covering distinct
audiences.

All top notch brands for all sections of people would be present at the brand factory outlets.
BRANDS
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.
PANTALOONS RETAIL MIX
PRICING
They believe in democratizing their services and
charging a fair price. The idea is to set new benchmarks
for pricing in this segment,
Pantaloon Retail India CEO-Pantaloons, Sanjeev
Agrawal said that the company has taken a conscious
decision to reduce product prices at Pantaloons to that
of two years ago. “This will build a value-for-money
proposition for consumers and will help to grow sales. Even the new private labels will have a
similar pricing strategy,” he said.
Store Design and Display
Pantaloons grocery department called food bazaar. In the
grocery segment the store has good product mix. Here
each racks 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

Merchandise Assortment
They are characterized by a broad variety, deep assortment. Its
leading brands are John Miller, Annabelle, T- 2000, Ajile,
Scotsville, Bare, Honey & Pantaloons. Pantaloons have
collections for your entire family and that's why it is called India's
favorite store with the best bargains in town.
The kids section, where there is are fantastic collections from the toon world with characters like
Popeye, Tom and Jerry, Mickey Mouse, Donald etc,
For the ladies, Pantaloons has a wide range of ethnic salwars from brands like Biba, Shreshta and
Western wear which is elegance personified with ethnic
ensemble also.
Location
Pantaloons, a part of Pantaloon Retail (I) Ltd., are among
India’s largest chains of fashion stores, with 40 stores
across 23 locations.
Pantaloons is present in 23 locations across India
including - Mumbai, Navi Mumbai, New Delhi, Noida,
Gurgaon, Gaziabad, Kolkata, Chennai, Bangalore, Pune,
Ahmedabad, Hyderabad, Baroda, Lucknow, Agra, Kanpur,
Indore, Secunderabad, Mangalore, Bhubaneshwar, Surat, Siliguri & Rajkot.
Communication Mix
Pushpinder Singh-led Saints & Warriors has been awarded the advertising duties of fashion retail
brand Pantaloons. According industry sources close to the development, the estimated account
size is in the region of Rs 15-16 crore. While Saints & Warriors would handle fashion advertising
for Pantaloons, PerceptH would handle part of the departmental store campaigns. TBWA\India
handles their mall business pan-India.
Keeping the nature of markets in mind, the company is deploying a different marketing mix. It
would reach out to customers more directly using communication tools such as rallies, auto
advertising and banners.
The ads marked a change from the earlier campaigns that showed families — now, it featured
trendy young men and women wearing the latest fashions.
The latest campaign, in April this year to launch the summer collection, was similar in execution.
In both campaigns, the focus has been on the variety of merchandise lines and the message is
clear: Pantaloons stocks the latest designs and fashions.
On the communication mix, Singh said, “The communication for the business would be
supported through print and outdoor. It would also be contributed through the television
medium.”
COMPANY STRENGTH
The Company looking at capturing a significant portion of the entire opportunity that the Indian
economy provides. These are being done through multiple initiatives in existing businesses and
also by building new businesses on the peripheries of the retail business. The Company has
significantly strengthened its existing mature businesses and is expanding established retail
formats into new geographies and cities. At the same time, to capture new consumption trends,
the Company has rolled out a large number of new initiatives and retail formats in segments like
home improvement, consumer durables, communication products, books, music and
entertainment, health, beauty and wellness among others. These specialty retail formats are in
many cases the first in India and are expected to garner a significant portion of consumption
expenditure going into new categories.
During the period under review, the Company opened 11 Pantaloons, 27 Big Bazaar,13 stand-
alone Food Bazaar, 1 Central and 5 Brand Factory. Subsidiary Company, Home Solutions Retail
India Limited rolled out 2 Home Town, very-large format stores along with other retail formats.
New stores covering around 2 million square feet of retail space were rolled out taking the total
retail space under operation to around 5.2 million square feet as on June 2007.
The Company plans to increase its retail space by nearly 4.5 million to 5.5 million square feet
in the coming year. In order to further leverage its reach and ability to attract increasing number
of customers within its stores, the Company has rolled out new businesses and subsidiaries in the
areas of consumer finance,capital, insurance, real estate funds, retail media, brand development
and logistics. Each of these new initiatives is a step towards driving more value from its existing
retail businesses and at the same time.

PESTAL ANALYSIS
GROWTH STRATEGY(ansoff matrix)

TARGET MARKET

EXISTING NEW

MARKET PENETRATION( MARKET EXPANSION


PANTLOON)

FORMAT DEVELOPMENT DIVERSIFICATION

EXIST
NEW

PANTALOON (MARKET PENETRATION)

It involves realizing growth by directing efforts towards existing customers using the present
retailing format. Pantaloon comes under market penetration because it is attracting customers
from its current target market to visit the retailer or buy more merchandise on each visit.

FINANCIAL HIGHLIGHTS

The operating results of PANTALOON for the year under review are as
Follows:

(Rs. in Crores)
2007-2008 2006-2007

Sales (Net of Taxes) 4,776.33 3,031.44


Operating Income 272.58 205.29
Other Income 3.76 92.03
Total Income 5052.67 3,328.76
Profit before Depreciation & Tax 279.01 217.87
Less: Depreciation 83.39 36.86
Profit before Tax 195.62 181.01
Less: Earlier Years Income Tax (0.03) 0.06
Less: Tax Expenses 69.68 60.96
Profit after Tax 125.97 119.99
Add: Profit brought forward from
Previous year 215.76 116.59
Surplus available for appropriation 341.73 236.58
Appropriation
Proposed Dividend 10.67 7.54
Tax on Proposed Dividend 1.81 1.28
Transfer to General Reserve 12.60 12.00
Balance carried to Balance Sheet 316.65 215.76

GMROI: GMROI is gross margin return on your inventory investment. In other words, it is
the amount of dollars you make after you deduct the cost of goods. This is how much money you
get per dollar of inventory invested made by the buyer.
GMROI= Gross margin percentage*sales-to-stock ratio
= Gross margin/Net sales*Net sales/Average inventory at cost
= Gross margin/Average inventory at cost.
So, the GMROI of PANTALOON is calculated below:
For 2007-2008: = 125.97 crore/105 crore*100
= 119%
For 2006-2007 = 119.99 crore/ 108*100
= 111%

So, for 2007-08 GMROI= 119% & for the year 2006-2007=111%
REFERENCES
Websites:-
www.pantaloon.com

http://osufacts.okstate.edu
www.scribd.com

Projects:-
-Fundamental-Analysis-of-Pantaloon mba NIT-DURGAPUR
- Pantaloon-Retail-BK-India

You might also like