SWAYAM SIDDHI COLLEGE OF

MANAGEMENT & RESEARCH

A PROJECT REPORT ON
STUDY ON CONSUMER SALES PROMOTIONS
OF APPAREL RETAIL STORES

SUBMITTED BY:
PARINAY SHASHIKANT MATKAR
MMS BATCH 2008-2010 (MARKETING)

UNDER THE GUIDANCE OF

PROF. TUSHAR CHAKRAVARTY

IN THE PARTIAL FULFILLMENT OF

MASTERS OF MANAGEMENT STUDIES (MMS)

OF
 UNIVERSITY OF MUMBAI

[Approved by AICTE, Affiliated to University of Mumbai & Govt. of Maharashtra DTE Code – MB
336]
(An ISO 9001-2000 Certified Institute)
Sonadevi Weight Bridge, Near Octroi Naka, Kalyan Road, Temghar, Bhiwandi, Dist. Thane – 421 302

CERTIFICATE

This is to certify that Mr. PARINAY SHASHIKANT MATKAR (Roll

No.1328) student of Second Year Master of Management Studies
(MMS/MBA) of SWAYAM SIDDHI COLLEGE OF MANAGEMENT &
RESEARCH has successfully completed the winter project work titled
“STUDY ON CONSUMER SALES PROMOTIONS OF APPAREL
RETAIL STORES” in partial fulfilment for the degree of Master of
Management Studies of University of Mumbai.

Date: / /2010

Signature of the project guide Director

Prof. Tushar Chakravarty Dr. Nilesh Chatterjee

 Declaration
I, Mr. Parinay Shashikant Matkar, hereby declare that the project report
titled “Study on consumer sales promotions of apparel retail stores” is the record
of authentic work carried out by me during the academic year 2008 – 2010 and has
not submitted to any other university or institution towards the award of any degree.

Date: / /2010 ______________________

Signature
(Parinay S. Mtakar)
 Acknowledgement

I, Mr. Parinay Shashikant Matkar (Swayam Siddhi College of Management and

Research, Bhiwandi), would like to thank my project guide, Prof. Tushar Chakravarty
for his valuable guidance and support which has helped me immensely in completing
this project.

I also want to thank the college director Mr. Nilesh Chatterjee and other professors,
my friends and colleagues, who have directly or indirectly helped me out in the
completion of my project.

Lastly, I would like to thank the entire staff of all the stores for their cooperation
during my project work.
 INDEX

Title Page no.

Introduction to retailing 1

Apparel Retail Industry 3

Major players in Apparel Retail 6

Sales Promotion 8

Objectives 11

Research Methodology 12

Analysis 15

Findings 41

Conclusion 43

Bibliography 44
 Executive Summary

In a market like India, there is a constant clash between challenges and opportunities
but chances favour those companies that are trying to establish themselves. To sustain
in such a volatile market, companies have to bring innovative solutions. With the
advent of modern format retailers and the growth of plastic cards, affluent urban
Indians are shopping like never before.
As apparel retail is led by fashion, a retailer needs to keep a close watch on fashion
amongst teenagers, as they are the trend setters. Seasonal variations on stocking
pattern and need to clear inventory at the end of season should be understood by
apparel retailer. This highlights the importance of sales promotions- short term
activities which induces trade or consumer to buy now, rather than in future, as the
value of apparel after the season goes down substantially and inventory carrying
burden turns out to be very high. Apparel retailer needs to understand critical role of
sales promotions.

The topic of the project is to perform a study on consumer sales promotion activities
of the apparel retail stores in Mumbai. To accomplish the above, three apparel retail
stores of different well known business groups, located in Mulund (W) area of
Mumbai were surveyed and interviewed. The responses were analyzed and results
were obtained. The core purpose of the survey was to study the sales promotion
activities performed by apparel retail outlets which results in stimulating product
interest, trial, purchase and stock clearance.

Introduction to retailing
The revolution in retailing industry has brought many changes and also opened door
for many Indian as well as foreign players. In a market like India, there is a constant
clash between challenges and opportunities but chances favour those companies that
are trying to establish themselves. Thus, to sustain in a market like India, companies
have to bring innovative solutions. Indian market has potential to accommodate many
retail players, because still a small proportion of the pie is organized.

Retailing is still in its infancy in India. In the name of retailing, the unorganised
retailing has dominated the Indian landscape so far. According to an estimate, the
unorganized retail sector has 97% presence whereas the organized accounts for
merely 3%. Industry has already predicted a trillion dollar market in retail sector in
India by 2010. However, the retail industry in India is undergoing a major shake-up as
the country is witnessing a retail revolution. The old traditional formats are slowly
changing into more complex and bigger formats. Malls and mega malls are coming up
in almost all the places, be it metros or the smaller cities, across the length and
breadth of the country.

A McKinsey report on India (2004) says organized retailing would increase the
efficiency and productivity of entire gamut of economic activities, and would help in
achieving higher GDP growth. At 6%, the share of employment of retail in India is
low, even when compared to Brazil (14%), and Poland (12%). Govt of India’s plan of
changing the FDI guidelines in this sector speaks of the importance attached to
retailing. Recent moves by big corporate houses like Reliance Industries has further
fuelled the major investments in retail sector. A strategic alliance, land acquisitions in
prime areas give the essence of the mood in this sector. Both MNCs and Indian firms
want to get their share of this burgeoning pie. Notable in Indian firms are Pantaloons
Retail & Big Bazaar, Trent’s Westside, Shopper’s stop, Reliance, Subhiskha, Wills
Lifestyle stores, Cafe Coffee Day, which are present in India in different retail
formats. Wal-Mart stores have just started operations in India. Some leading retail
coffee chains of the world like Starbucks, Barnies are planning to expand in a major
way in India.

The Indian retail sector

India is the country having the most unorganized retail market. Traditionally it was a
family’s livelihood, with their shop in the front and house at the back, while they run
the retail business. More than 99% retailer’s function in less than 500 square feet of
shopping space. The Indian retail sector is estimated at around Rs 900,000 crore, of
which the organized sector accounts for a mere 3 per cent indicating a huge potential
market opportunity that is lying in the waiting for the consumer-savvy organized
retailer. Purchasing power of Indian urban consumer is growing and branded
merchandise in categories like Apparels, Cosmetics, Shoes, Watches, Beverages,
Food and even Jewellery, are slowly becoming lifestyle products that are widely
accepted by the urban Indian consumer. Indian retailers need to take advantage of this
growth and aiming to grow, diversify and introduce new formats has to pay more
attention to the brand building process. The emphasis here is on retail as a brand
rather than retailers selling brands. The focus should be on branding the retail
business itself. There is no doubt that the Indian retail scene is booming. A number of
large corporate houses —Tata’s, Raheja’s, Piramals’s, Goenka’s — have already
made their foray into this arena, with beauty and health stores, supermarkets, self-
service music stores, new age book stores, every-day-low-price stores, computers and
peripherals stores, office equipment stores and home/building construction stores.
Today the organized players have attacked every retail category.

Apparel retail industry

In India, clothing retail accounts for 36% of organised retail business. It is the largest
sector. Ready-made apparel accounted for an estimated 20% of domestic clothing
sales in 2005. With growing working women wearing western wear to work, and
pressed for time, market for good readymade clothes is likely to grow. India is a film-
crazy nation, and the largest producer of films, with more than 1,000 every year. They
provide entertainment and an escape from reality for India’s masses, and set the
popular fashion trend. Bollywood fashions have become pan Indian. They affect
various sectors of the market including clothing, footwear, weddings and fashion
accessories.

With the advent of modern format retailers and the growth of plastic cards, affluent
urban Indian women are shopping like never before. They spend mornings browsing
in stores looking for deals or latest styles. Upper income urban women are adopting
ethnic wears. These are designer clothes that incorporate Indian motifs, ethnic fabrics
and are a fusion of western and Indian styles.
In the large urban centres, apparel retailers, like Shoppers Stop, Westside and
Pantaloon have popularised their private labels, which have attracted urban shoppers.
Westside carries only its own private labels, while for the other stores, 20-30% of
their apparel turnover is from private labels. Customers have loyalty to a store rather
than any particular garment brand. This has led to a thriving unbranded or local brand
market for ready-to-wear clothes leading to severe competition. Hence organized
retailers like Lifestyle, for instance, has a loyalty programme called `The Inner
Circle', while Pantaloons offers a `Green Card' Rewards programmes, Westside has
`Club West' to woo the customers. Customers look to design and fit of the clothes,
and use the shop’s name as a quality standard.

Characteristics of Apparel retail sector

As apparel retail is led by fashion, a player needs to keep a close watch on fashion
amongst teenagers as they are the trend setters. Role of Bollywood in spreading
fashion needs to be understood. Seasonal variations on stocking pattern and need to
clear inventory at the end of season should be understood by apparel retailer.
Typically once an item is sold from the outlet, retailer ensures that there is no
repetition of same. It gets replaced by different design, style and colour. Importance
of store layout, décor is very critical. A person visiting the store frequently likes to see
changes in the layout otherwise he may carry the impression that stocks are not
moving out of the store. Category management becomes very crucial function as
transformation of design into production and delivery has to be completed before
fashion or fad changes in the market.

This highlights the importance of sales promotions- short term activities which
induces trade or consumer to buy now rather than in future as the value of apparel
after the season goes down substantially and inventory carrying burden turns out to be
very high. Apparel retailer needs to understand critical role of sales promotions.
Attractive promotions induces purchase acceleration, stock piling and brand switching
on the part of a consumer which substantially reduces retailers’ financial and
inventory risk and consumers’ financial risk and psychological risk.

Seasons of Retailing
Summer Season
• It is usually from May to July.
• Low sales are recorded during this period.
• This season is good for promotions and launching new advertisement
campaigns.
Fall Season
• August and September are important months.
• Retailers are provided a good opportunity to increase their share.
Holiday Season
• It begins usually at the end of October and carries through the fourth
quarter ending in January.
• Festivals like Dusherra, Diwali, Christmas and New Year Eve bring more
customers.
• Usually it is the best time for retailers.
Spring Season
• It lasts from February to May
• Fewer footfalls are recorded in malls.

Customers
Men
• While men tend to prioritize fashion to a lesser degree than women, “right-
look” and the “descent” image is still important to them.
• Men tend to spend more money on electronic gadgets, food, sports goods
and music.
Women
• “Teen” girls represent a lucrative opportunity for retailers. They are going to
become the future buyers.
• “Teen” girls are more trend savvy. It is not just the clothes and accessories, but
the whole look that the teen girls aspire to define.
• Women spend more on jewellery and household items and thus they
contribute a lot more in terms of revenue.

Major Players in apparel retail

Shopper’s Stop
K. Raheja group of companies founded Shoppers' Stop on October 27, 1991.The
organization had already made its presence felt in the hospitality and real estate
sector, and now it has created a landmark in the Retail sector with Shoppers' Stop.
Shoppers' Stop is famous for the expertise and acumen relating to the current practices
of the industry. It provides quality services, products and the right kind of shopping
environment. It has developed itself as a household name and has set high standards
for itself with the mission statement: “Nothing but the best". In 2005, the company
had 25 stores with a turnover of Rs. 1000 crores and 7 lakh sq. feet retail space in the
year 2005. The average age of the employees in the organization is 25 years.

Pantaloon Retail (I) Ltd.

Pantaloon Retail is the flagship enterprise of the Future Group. Pantaloon Retail
(India) Limited has spread across various businesses and cities in India. Pantaloon
owns multiple retail formats and is able to cater to a large section of the society. The
company has over 140 stores across 32 cities in India and 14000 employees. The
organization made an incursion into the modern retail (fashion) in 1997. Big Bazaar, a
hypermarket chain, was introduced in the year 2001, with an Indian touch of
convenience and hygiene. Food Bazaar, food and grocery chain, and Central Mall
located at various Metros are other important parts of the group.

Westside
Tata Group founded Trent Ltd. (Westside) in 1998. The acquisition of a London-
based retail chain Littlewoods by the Tatas was followed by the establishment of
Trent Ltd, which was later renamed as Westside.
It is one of the largest and fastest growing chains serving the customers in various
categories, including men's wear, women's wear, kid's wear, footwear, cosmetics,
perfumes and handbags, household accessories, lingerie and gifts. The company
offers products with a balance between style and price. There are 25 Westside
departmental stores operating in various cities like Mumbai, Hyderabad, Pune, Delhi,
Banglore, Noida, Gurgaon, Nagpur, Kolkata and many others.

Lifestyle International Pvt. Ltd.

Lifestyle is an international fashion store of the Landmark Group, a Dubai-based
company. Lifestyle created a revolution in the Indian Retail Industry by bringing a
truly international shopping experience. It was launched in Chennai, and now it is one
of the largest professional retailers spread across 3,25,000 sq. ft. in various cities such
as Chennai, Gurgaon, Mumbai, Hyderabad and Banglore. It is a heaven for shoppers
with a vibrant and spicy lifestyle. It provides a wide choice of products at affordable
prices with a convenient world-class environment and a friendly layout. Being one of
the best shopping destinations, it has won the ''Most Respected Company in the Indian
Retail Sector' and the 'Most Admired Large Format Retail Company' awards in India.

Globus
Globus was launched in 1998 as a part of the Rajan Raheja Group. The company
opened its first outlet in Indore followed by two more in Chennai. The flagship store
was opened on 1st November 2001 in Mumbai, followed by a vibrant store in New
Delhi. Subsequently, its stores were launched in Bangalore, Ghaziabad, Kanpur,
Ahmedabad, Noida, Lucknow, Varanasi and Hyderabad.
The organization has an innovative and adaptive environment. Globus has achieved
customer delight by presenting value products and services through continuous
improvement.

Wills Lifestyle
ITC has made a presence in the Retail sector through its exclusive specialty store -
'Wills Lifestyle'. It has developed itself as a fashion destination offering a range of
apparels and accessories. Top designers of the industry design these clothes. The store
offers Wills Classic work wear, Wills Sport relaxed wear, fashion accessories and
bath & body care products. Wills Lifestyle has also developed John Players as a brand
that offers a fine collection of clothes for dynamic and vibrant people. ITC believes in
the philosophy of enjoying the changing environment. This season Wills Lifestyle has
brought a complete array of products for very aspect and mood of life be it work,
relaxation or party. The store offers a truly 'International Shopping Experience'
through world-class environment and a robust portfolio of offerings.

Sales Promotion
Sales promotions are short-term incentives to encourage the purchase or sale of a
product or service.

Sales promotion includes several communications activities that attempt to provide

added value or incentives to consumers, wholesalers, retailers, or other organizational
customers to stimulate immediate sales. These efforts can attempt to stimulate product
interest, trial, or purchase. Examples of devices used in sales promotion include
coupons, samples, premiums, point-of-purchase (POP) displays, contests, rebates, and
sweepstakes

Sales Promotion Strategies

There are three types of sales promotion strategies: Push, Pull, or a combination of
the two.

A push strategy involves convincing trade intermediary channel members to "push"

the product through the distribution channels to the ultimate consumer via promotions
and personal selling efforts. The company promotes the product through a reseller
who in turn promotes it to yet another reseller or the final consumer. Trade-promotion
objectives are to persuade retailers or wholesalers to carry a brand, give a brand shelf
space, promote a brand in advertising, and/or push a brand to final consumers. Typical
tactics employed in push strategy are: allowances, buy-back guarantees, free trials,
contests, specialty advertising items, discounts, displays, and premiums.

A pull strategy attempts to get consumers to "pull" the product from the manufacturer
through the marketing channel. The company focuses its marketing communications
efforts on consumers in the hope that it stimulates interest and demand for the product
at the end-user level. This strategy is often employed if distributors are reluctant to
carry a product because it gets as many consumers as possible to go to retail outlets
and request the product, thus pulling it through the channel. Consumer-promotion
objectives are to entice consumers to try a new product, attract customers away from
competitors’ products, get consumers to "load up" on a mature product, hold &
reward loyal customers, and build consumer relationships. Typical tactics employed
in pull strategy are: samples, coupons, cash refunds and rebates, premiums,
advertising specialties, loyalty programs/patronage rewards, contests, sweepstakes,
games, and point-of-purchase (POP) displays.

Reasons for Sales Promotions

• This could be a way of monitoring the performance of product management.

Since sales promotion can possibly provide immediate impact on consumer sales,
it is not unusual to use these strategies to attain their sales objectives.
• Companies have to cope with pressure on sales margins which they can
achieve through paying closer attention to cost-effective sales volume. Since the
results of using sales promotional techniques can be determined accurately, sales
volumes can be easily predicted.
• More importantly, sales promotions are not only effective in attaining short-
term sales; they are also more cost-effective compared to other integrated
marketing communications tools such as advertising. The progressive
fragmentation of audiences and the increase in media costs have tipped the
balance in favor of sales promotion techniques which are more likely to deliver
demonstrable results.

Popularity of Sales Promotions

The reason sales promotions are gaining popularity is due to the fact that product and
sales management are very confident in their ability to handle the techniques of sales
promotion. Other forms of integrated marketing communication tools need to go
through a lot of thought and internal debates before funds are allocated or decisions
are arrived at.
Product managers also are more in control of the determination and implementation of
sales promotional activities. They have a freehand when it comes to what sales
strategies to use.

The importance of sales promotions as an integrated marketing communications tool

could be attributed to the increase in number of specialist sales promotions agencies
operating in certain places. In the past, sales promotion was viewed as part of other
marketing communications techniques. Today, it is one of the stand-alone effective
marketing tools.

Disadvantages of Sales Promotions

• On the downside, the sales promotions, unlike other integrated marketing

communication tools, work often on a short-term basis only.
• Unlike advertising or public relations, for instance, sales promotions strategies
may have no lasting impact on the brand.

..

.
 Objectives of the project

To study the sales promotion activities conducted by the selected three modern
apparel retail outlets in Mumbai, namely Pantaloon Retail (I) Ltd., Westside and
Shopper’s stop.

Sub-Objectives

 To study the current scenario of the retail industry in India

 To study the current scenario of the apparel industry in India

 To understand the importance of sales promotion activities

 To study and analyse the sales promotion activities conducted by the selected

three apparel retail outlets in Mumbai

 Research Methodology

1. Type of Research
Research is an original contribution to the existing stock of knowledge making for its
advancement. This research is an amalgamation of both formularize as well as
descriptive research.

2. Research approaches

There are two basic approached to research, quantitative approach and the qualitative
approach. The former involves the generation of data in quantitative form, which can
be subjected to rigorous quantitative analysis in a formal and rigid manner. This
approach is further sub-divided into inferential approach is to form a database from
which to infer characteristics or relationship of a population. This usually means
survey research where a sample of population is studied using questionnaire to
determine its characteristics and it is then inferred that the population has the same
characteristics.

Qualitative approach to research is concerned with subjective assessment of attitudes,

opinions and behaviour. Research in such a situation is a function of researcher’s
insight and impressions. Such an approach to research generates results either in non-
quantitative form or in the form, which are no subjected to rigorous quantitative
analysis.

Qualitative approach was been adopted in this study where data was collected by
personally interviewing the staff of the selected stores.
 3. Sources of Data

The first part of the project was to study the current trends and the future of retail and
apparel industry in India and also to gain some basic knowledge on sales promotion.
This consisted of doing a secondary research about the industry with the help of some
text books and also through the internet.

Once the secondary research was done, a personal visit was conducted to the three
well known apparel retail outlets in Mumbai namely, Pantaloon Retail (I) Ltd.,
Westside and Shopper’s stop all of which are located in Mulund (W). The sales
promotion activities conducted in the stores were minutely observed. Personal
interviews with few of the staffs of each store were conducted to gain the in-depth
knowledge about the seasonal and non-seasonal sales promotion activities conducted
by the stores.
 4. Sampling Plan:

(1) Population and Sampling unit

The sample unit is the individual unit of the selected sample. Here the sample unit
were the apparel retail outlets in Mumbai.

(2) Sample Size

This refers to the number of items selected from the universe to constitute the sample.
For the purpose of this study, a sample size of three apparel retail outlets were
selected, all of which are owned by the three different well known business groups.

(3) Sampling Procedure

There are various sampling procedures for selecting the sample procedures. The
sampling procedure followed here is Simple random sampling.
ANALYSIS
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 12 million square
feet of retail space, has over 1000 stores across 71 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 Brand Factory, Blue Sky, aLL, Top 10 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
eZone, focused on catering 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 manifesto

“Future” – the word which signifies optimism, growth, achievement, strength, beauty,
rewards and perfection. Future encourages group to explore areas yet unexplored,
write rules yet unwritten; create new opportunities and new successes. To strive for a
glorious future brings group’s strength, ability to learn, unlearn and re-learn ability to
evolve. The Future Group will not wait for the Future to unfold itself but create future
scenarios in the consumer space and facilitate consumption because consumption is
development. Thereby, the future groups will effect socio-economic development for
the customers, employees, shareholders, associates and partners. The customers will
not just get what they need, but also get them where, how and when they need. Future
Group will not just post satisfactory results, but will write success stories.
Future Group will not just operate efficiently in the Indian economy, will evolve it.
Future Group will not just spot trends, group will set trends by marrying their
understanding of the Indian consumer to their needs of tomorrow.
It is this understanding that has helped Future Group succeeds. This will help
group succeed in the Future. The group shall keep relearning and in this process, do
just one thing.
“Rewrite Rules. Retain Values”

Group Vision
Future Group shall deliver Everything, Everywhere, Every time for Every Indian
Consumer in the most profitable manner.

Group Mission
• To share the vision and belief that the customers and stakeholders shall be
served only by creating and executing future scenarios in the consumption space
leading to economic development.
• To be the trendsetters in evolving delivery formats, creating retail realty,
making consumption affordable for all customer segments – for classes and for
masses.
• To infuse Indian brands with confidence and renewed ambition.
• To be efficient, cost- conscious and committed to quality in whatever we do.
• To ensure that positive attitude, sincerity, humility and united determination
shall be the driving forces to make the organization successful.
Formats, Group Companies & JV of Pantaloon Retail
India Ltd
Men Section
 Women Section
SWOT Analysis of Pantaloon Retail (India) Ltd.
Strength
 Industry leader
 First Mover Advantage
 Higher Bargaining Power to higher
number of store and good coverage
 Highest number of formats of stores
 Easy to attract talent
 Highest market share in Organized retail
 Strong Good Will in market which helps
them in raising money for expansion,
forming JV, entering new market or new
format
 Diversified business
 Stronger private label brands
Opportunities
 Luxury brand segments untapped by
pantaloon
 Tie-up with foreign player to bring in
technical expertise and funds to expands
aggressively
 Smaller formats should expand more
aggressively in tier II and tier III cities
 Scope of Private labels
 Integrating supply chain with other
retailers
 License agreement with foreign brands
 Restaurant and fast food chain included in
the current formats
Weakness
 Government rules and regulations
are not favorable
 FDI policy not so favorable for tie-
ups
 Cannibalization within the formats
 Recession and global melt-down
affected the performance of the
book
 Shrinking margins due higher
input costs
Threats
 Rapid expansion by current players
like Trent, Shoppers Stop, Reliance,
More, Bharti and Spencers
 Tie-up of competitors with foreign
retail giants. For example Bharti &
Walmart
 Market conditions highly volatile
last year due to meltdown
 Real estate price & Rentals lowering

Sales Promotion techniques at Pantaloon Retail (I) Ltd.

1. Price-off offer:
Under this offer, products are sold at a price lower than the original price. This type of
scheme is designed to boost up sales in off-season and sometimes while introducing a
new product in the market.
Example:
• Buy 2 men T-shirts at Rs. 599/- and 1 T-shirt at Rs. 399/- (MRP: Rs.399/Tshirt).
• Buy 2 men T-shirts at Rs. 749/- and 1 T-shirt at Rs. 499/- (MRP: Rs.499/Tshirt).
• Buy 3 men round neck T-shirts for Rs. 399/- (MRP: Rs.199/Tshirt).
• Buy 2 men V neck T-shirts at Rs. 499/- and 1 T-shirt for Rs. 299/- (MRP:
Rs.299/Tshirt).
• Buy 3 women T-shirts at Rs. 399/- (MRP: Rs.199/Tshirt).
• Buy 1 woman top and get Rs. 100/- off on the bottoms.

2. Discounts:
Under this, the products are sold at a discounted price with percentage discounts on
the original price. This type of scheme is designed to boost up sales in off-season.
Example:
• 30% off on all the men formal shirts and trousers.
• 30 % off on all the women formals and casual outfits.
3. End of season sale:
End of Season sale or stock Clearance sale is been conducted at Pantaloon Factory
Outlets. They are offering surprising discounts as if you buy 2 any items of garments
and you will get 3 more with your choice absolutely free. These offers are given as
celebration of New Year.

4. Seasonal offers:
Pantaloon provides the customers with various discounts and price-off offers at the
stores and factory outlets on the seasons like winter and monsoon. This type of
scheme is designed to boost up sales in these seasons.

5. Festive offers:
Pantaloons have come up with festive offer during Diwali and Christmas by giving
away gifts for purchases that are made at the store for cheaper price. If you shop for
Rs. 4500 you get a Strolley bag worth Rs. 1299 for Rs. 149 only. If you shop for Rs.
2400 and above you get a lemon set, which is said to be imported, worth Rs. 649 for
Rs. 99 only.

6. New Year offers:

Pantaloons offers gifts for purchases that are make at the store during the New Year
for cheaper price. If you shop for Rs. 3500 you get a Imported Designer Glass Set for
Rs. 249 only. If you shop for Rs. 2500, you get a 3 nights and 4 days holiday package
for a couple on an International cruise.

7. Discount Coupons:
Pantaloon offers 25% discount on its large range of apparels. The coupon is valid for
limited period. This coupon is valid for 25% off on any product purchased
from www.pantaloon.futurebazaar.com.
8. Gift Vouchers:
Pantaloons Fresh Fashion offers many Pantaloons vouchers ranging different
denominations like Rs100, Rs.250, Rs.1000 and Rs.2000. These Pantaloons vouchers
are exchangeable with the products by the customers at all the Pantaloons Showrooms
in India. The vouchers are a better option rather than gifts for the employees and
customers as they are not bound for a particular thing to accept. They are given free
choice for choosing better gifts for themselves by using vouchers.
Pantaloons vouchers offer a wide range of products and services for shopping. It has
got coverage in 15 cities including 22 outlets. It thus offers good gift vouchers to its
customers, clients and sales force also to keep good relationships amongst each other.
The most famous Gift Vouchers by Pantaloons Fresh Fashion are Trendsetters and
Connoisseurs Choice.
Trendsetters Gift Voucher: This Pantaloons voucher to the customers for the
products of value of Rs.500 at all showrooms of Pantaloons all over India. This
voucher is valid for all apparels only. The amount of the products bought have to be
within the face value of the voucher, if it exceeds the actual amount the customer has
to pay the exceeded amount after the shopping. This gift voucher is valid till 1 year
from the issue date. It can not be exchanged to part or full cash.

Connoisseurs Choice: This Pantaloons voucher is available for the products valued
at Rs.500 at all Pantaloons showrooms. This is known to be as good as the cash under
Pantaloons. This is valid for one year after issuance. The voucher can not be
exchanged neither it can be encashed. The voucher can be converted for once. Any
balance on voucher will not be exchanged as cash or any product. The pantaloons all
over India have got this facility so that the customers can avail it any time any where.

9. Pantaloon loyalty program (Green card):

Green Card is a passport to a whole new world of exclusive benefits and privileges to
the customers.

• Instant discounts for every time you shop at Pantaloons.

• Exclusive shopping days to get hold of latest merchandise.
• Regular updates on collections and promos via catalogues, sms and email.
• Special invites to the most happening events.
• Extended exchange periods and complimentary drops for alterations.
• Exclusive billing counters and much more.
Shopper’s Stop Ltd., has redefined retail in India, taking it to the next level. From
being just the sale of goods to consumers, the company has created a unique aura
around retail and turned it into an experience, an indulgence. The pioneer of
organized retail in India, Shopper’s Stop Ltd., has been instrumental in bringing about
a retail revolution in the country and has become the highest benchmark for the
industry. With its growth plans firmly in place and undeniable leadership in the field,
Shopper’s Stop Ltd., is well on its way to raise the bar of performance even higher.
Shopper’s Stop Ltd. has made this purchase of goods extremely pleasurable. The
stores have redefined shopping by making it more than just a transaction. The entire
shopping process is the coming together of an amazing array of offerings, warm but
unobtrusive service and special privileges and benefits that translate every visit into
customer delight.
Since its inception in 1991, Shopper’s Stop Ltd., which was founded by the K Raheja
Corp. Group (Chandru L Raheja Group), one of the leading players in the country in
the business of real estate development and hotels, has been offering premium and
luxury value for the entire family. Shopper’s Stop Ltd. has metamorphosed from
being a chain of retail stores to emerging as a Fashion & Lifestyle destination, which
now includes retail concepts such as bookstores, cafés and high-end lifestyle
merchandise for the growing affluent middle class in India. Today, its name is
synonymous with superior quality product, services and above all, an international
shopping experience.
In order to enhance the level of customer service and gain insight into new and
emerging practices followed internationally, Shopper’s Stop Ltd. is a member of the
Inter Continental Group of Department Stores (IGDS). It is the only Indian member
along with 29 other experienced retailers from all over the world. Leveraging
expertise, excellence and experience, Shopper’s Stop Ltd. has become a benchmark
for the Indian retail industry to follow. A pioneer of organized retail in India,
Shoppers’ Stop today, is the country’s biggest Department Store Chain. It offers
customers an international shopping environment and a world-class shopping
experience through its 20 stores in 11 cities. It houses a host of international and
domestic brands across categories such as apparel, accessories, cosmetics, home &
kitchenware as also its own private brands. Shoppers’ Stop offers a wide range of
brands (more than 400 brands) for the entire family to choose from. Exclusive and
established brands share shelf space to offer an array of choices customers across all
ages, tastes and occasions. Shoppers’ Stop is the single largest retailer for Levi’s
Strauss, Pepe, Lee, Arrow, Zodiac, Ray-Ban, Swatch, among others.

Private Labels
Shoppers Stop has a range of Private Labels across Men's casual wear to formals to
Women's wear. Private Labels contribute a mere 20% to its Total Sales. Here are the
Private Labels Sold in Shoppers Stop outlet,

• Kashish - Mens's Ethnic Wear

• Stop - Western Wear - Men & Women
• Life - Mens Casual Wear , Jeans Wear
• Mario Zegnoti - Men's Formal Wear
• Acropolis - Men's Formal Wear
• Push and Shove - Eye Wear
• Vettorio Fratini - Premium Men's Wear

Men Section
 Women Section

SWOT ANALYSIS OF SHOPPERS STOP:

Strengths Weakness
• Variety • Very high prices
• Range • Less Schemes
• Different Brands • Less Discounts
• Pioneer • Competition from standalone stores
• Loyal customer • Late entry into value retailing
• Low risk • Store makeover expenditure
• Good financial position
• Presence across various
segments
• Parikrama the festival
Threats Opportunities
• Government Policies • Awareness about the brands
• Entrance of New Players • Quality
• High attrition • Youngsters
• Lesser consumer spending • Higher disposable income
• Entry of foreign players • Collaborate
• Unorganized sector • Private levels
• Independent stores • Tier 2 & tier 3 cities
• Enter new consumer goods
segments

Sales Promotion techniques at Shoppers stop

1. Price-off offer:
Under this offer, products are sold at a price lower than the original price. This type of
scheme is designed to boost up sales in off-season and sometimes while introducing a
new product in the market.
Example:
• Buy 2 men T-shirts at Rs. 799/- and 1 T-shirt at Rs. 499/- (MRP: Rs.499/Tshirt).
• Buy 3 women T-shirts at Rs. 999/- (MRP: Rs.499/Tshirt).

2. Discounts:
Under this, the products are sold at a discounted price with percentage discounts on
the original price. This type of scheme is designed to boost up sales in off-season.
Example:
• 20% off on all the men formal shirts and trousers.
• 20 % off on all the women formals and casual outfits.

3. End of season sale:

End of Season sale or stock Clearance sale is been conducted at Shopper’s stop. They
are offering surprising discounts upto 50% on all the men and women apparels. These
offers were given last year for limited period in the month of September.

4. Seasonal offers:
Shopper’s stop provides the customers with various discounts and price-off offers at
the stores on the seasons like winter and monsoon. This type of scheme is designed to
boost up sales in these seasons. Different offers are provided by the stores during
these periods from June to January.
 5. Festive offers:
Shopper’s stop have come up with festive offer during Diwali and Christmas by
giving away gifts for purchases that are made at the store for cheaper price or free. If
you purchase men apparel worth Rs. 6000/-, the you are entitled to get a Polo bag
worth Rs. 2000/- absolutely free.
 6. Gift Vouchers:
Shoppers Stop offer Gift Vouchers of denomination ranging from Rs. 250 to Rs.
5000.

7. Republic Day offer:

Shopper’s stop conducted 3 Day Surprise offer on the occasion of Republic Day,
giving flat 20 percent discount coupons on purchase of goods worth Rs. 3000/-, which
can be redeemed on the next purchase.
 8. Contests:
Shoppers Stop has announced a 101-day Shopping Bonanza to pull in customers into
the stores. Lucky draw winners of the contest will get to see one of the seven wonders
of the world and two lucky couples who get the grand prize will be treated to a round-
trip which will cover all the seven wonders of the world.

9. Shopper’s stop loyalty program (First Citizen Citibank credit card)

As s First Citizen Credit card member, you get the benefits of the Shopper’s Stop
loyalty program, First Citizen. The First Citizen membership entitles you to exclusive
privileges such as product previews, priority billing and other special benefits. Add to
this, the fabulous experience of shopping at the premier Shopper’s stop outlets across
the country.
 10. Exchange offer:
Under this offer, you have to bring in you old salwar kameez and take away a new
one with discounted price.
Style, affordable prices, quality these are the factors that have shaped Westside's
success story in the retail fashion stores business. Launched in 1998 in Bangalore, the
Westside chain has, ever since, been setting the standards for other fashion retailers to
follow.

Established in 1998 as part of the Tata Group, Trent Ltd. operates Westside, one of
India's largest and fastest growing chains of retail stores. The Westside stores have
numerous departments to meet the varied shopping needs of customers. These include
Menswear, Women’s wear, Kid’s wear, Footwear, Cosmetics, Perfumes and
Handbags, Household Accessories, lingerie, and Gifts. The company has already
established 36 Westside departmental stores (measuring 15,000-30,000 square feet
each) in Ahmedabad, Bangalore, Chennai, Delhi, Gurgaon, Ghaziabad & Noida (to be
considered as 1 city), Hyderabad, Indore, Jaipur, Kolkata, Ludhiana, Lucknow,
Mumbai, Mysore, Nagpur, Pune, Rajkot, Surat, Vadodara and Jammu. The company
hopes to expand rapidly with similar format stores that offer a fine balance between
style and price retailing.
Trent ventured into the hypermarket business in 2004 with Star Bazaar, providing an
ample assortment of products made available at the lowest prices, aptly exemplifying
its ‘Chota Budget, Lambi Shopping’ motto. At present Star Bazaar has 4 stores in 3
cities located in Ahmedabad, Mumbai and Bangalore. This store offers customers an
eclectic array of products that include staple foods, beverages, health and beauty
products, vegetables, fruits, dairy products, consumer electronics and household items
at the most affordable prices. This story began circa 1998 when The Tatas acquired
Littlewoods – a London based retail chain. This acquisition was followed by the
establishment of Trent Ltd (a Tata enterprise that presently operates Westside).
Littlewoods was subsequently renamed Westside. In a rapidly evolving retail
scenario, Westside has carved a niche for its brand of merchandise creating a loyal
following. Currently, the company has 36 Westside stores measuring 15,000-30,000
square feet each across 20 cities. With a variety of designs and styles, everything at
Westside is exclusively designed and the merchandise ranges from stylized clothes,
footwear and accessories for men, women and children to well-co-coordinated table
linens, artifacts, home accessories and furnishings. Well-designed interiors, sprawling
space, prime locations and coffee shops enhance the customers’ shopping experience.

SWOT ANALYSIS OF WESTSIDE:

Strengths Weakness
• Growing at the faster pace • Not much product range for
• Brand name of TATA’s. middle class

• Good customer base. • Facing problems due to political

• Apparels are cheaper environment

• Attractive promotional schemes • Need help in taking over

and heavy discounts properties and real estate

• Quality and branded stuff only • Need some concessions from

labor laws
• Location advantage
• Lack of differentiation
• Poor inventory turns and stock
availability

Opportunities Threats
• Huge untapped market • Competition from organized
• Rising disposable income retail players

• Urbanization • Competition from local retailers.

Ladies Section
 Men Section

Kids Section
PRIVATE LABELS

Private label products or services are typically those manufactured or provided by

one company for offer under another company's brand. Private label goods and
services are available in a wide range of industries from food to cosmetics to web
hosting. They are often positioned as lower cost alternatives to regional, national or
international brand. Westside has many private labels in its merchandise portfolio.
Private labels in Westside include-
• 2F4U
• SRC
• Gia
 • Urban angel
• Intima
• David Jones
• Ascot

All these brands are produced for Westside only and can be found in Westside only.
These apparel brands are given separate space for displaying their merchandise and
more promotional offers are there on them to increase their sales. At some places,
these private brands are mixed with branded clothes so in that case these private labels
are put in lower shelves. At eyesight level, branded clothes are put.

Sales Promotion techniques at Westside

1. Festive offers:
With this Diwali Delight offer from Westside if you shop from their store for Rs.
5000 and above you get a gift voucher from them for Rs. 1000 for free. And if you
shop for Rs. 2500 and above you get a free gift voucher worth Rs. 400. This is valid
only if you purchase their in-house merchandise or brands only and not valid if you
chose to buy other brands available at their store.

2. End of season sale:

End of Season sale or stock Clearance sale is been conducted at Westside. They are
offering surprising discounts upto 50% on all the men and women apparels. These
offers were given last year for limited period in the month of January and July.

3. Gift Vouchers:
Westside offers Gift Vouchers of denomination ranging from Rs. 100 to Rs. 10000.
 4. Westside loyalty program (Club west card program):
An assured return-and-exchange policy reinforces customer confidence in the chain.
Another winning Westside idea is Club West, a customer loyalty program launched in
May 2001. The 30,000-plus members of this club get rebates at restaurants and on holiday
packages from the Taj Group of Hotels, home delivery of alterations, and best of all,
special shopping hours on the first day of any discount sales event organized by the chain.

5. Contests:
Shop for Rs 1,000 at Westside, participate in the lucky draw and win the grand prize -
a complete holiday packages for two to Macau. You could also win holiday packages
to breathtaking beach destinations in India including Goa, Kovalam, Puri and
Pondicherry.

6. Discounts:
Under this, the products are sold at a discounted price with percentage discounts on
the original price. This type of scheme is designed to boost up sales in off-season.
Example:
• 20 - 50% off on all the men formal shirts and trousers.
• 20 – 50 % off on all the women formals and casual outfits.

Findings
Sales Promotion Pantaloon Westside Shopper’s
Stop
1.End of season Yes Yes Yes
2.Festive Yes Yes Yes
Promotions
(Diwali,
Christmas etc)

Loyalty card Yes Yes Yes

Programme

Special Promotion Yes (Exchange offer) No Yes (Exchange

(event) offer)

Joint promotion No No No
Media used Hoardings, Print, Print,
print, electronic, electronic,
electronic (SMS, E-mail), hoardings, hoardings,
POP In-store media In-store media
In-store media
Promotion Price off, Gift vouchers, Discounts,
type free gifts, discount, gift vouchers,
exchange offer, contest, free gifts,
Festive offers, End of season exchange offer,
End of season sale, End of season
Loyalty program sale,
Loyalty
program

• From the above table, it is clear that all three stores engage in end of season sale.
This reinforces the fact that seasonality affects apparel sector and hence it
becomes critical for a retailer to clear off the stocks at the end of season,
otherwise, he may have to incur substantial inventory carrying costs, allocate
scarce shelf space and out of fashion apparels maybe worthless. Thus stock
clearance seems to be very important objective for apparel retailer in using end of
season sale wherein discount given is upto 50% of the MRP (Maximum retail
price).
• All the three stores use loyalty cards to reward loyal users and encourage them to
visit the store often and buy more by offering wide range for men, women and
children. Some store also offer home furnishings, accessories and footwear,
thereby providing convenience for one stop shopping.

• Joint sales promotion involves tieing up with other brands like, MacDonald,
Havmore, Gold’s (local) Gym and Kaya skin clinic, etc. None of the three
stores has yet explored avenue of joint sales promotion. Such joint promotions
have advantages in terms of sharing costs of promotions, cross selling
opportunities to each other’s customers, higher visibility etc.

• In terms of type of consumer sales promotions, almost everyone used

discount, coupon programmes and lucky draws, contests, gift, buy one get one
free type of promotions. Pantaloon and Shopper’s Stop uses exchange offer.
 Conclusion

Usage of sales promotion activities has a direct impact on consumer behaviour as it

motivates a consumer to buy now rather than in future, enhances value of an offer
temporarily till the promotion period, encourages switching, reinforce or reward loyalty
etc.
Broadly, objectives set for these activities are;
• To generate store traffic,
• To move excess inventory,
• To enhance store image and
• To create a price image (high or low).

Traffic building is achieved by special event promotions like Diwali, Rakshabandhan

promotions; inventory reduction through end of season sale; creation and building store
image through feature advertising and displays and joint promotions and price image by
highlighting the discounts. It helps consumer reduce not only financial risk but also
psychological and social risk by making consumer confident of his/her purchase,
conformation to group norms by shopping at famous stores/brands and possibility of
acquiring well known branded apparel during promotions. Promotions may induce non
buyers to walk in to the store and loyalty programmes may encourage them to buy more,
more often or upgrade to better quality. Exciting promotions also have tendency to
generate positive word of mouth and help consumer feel a smart shopper. Thus, not only
provide utilitarian benefits like, saving of money, time or quality up gradation but
hedonic benefits like feeling confident, feeling of excitement and entertainment etc.
Execution of the sales promotion activities also require proper coordination of selling effort
and availability of promoted merchandise.
Apparel sector is likely to grow with growing Indian economy. Many multinational players
either have already plunged into Indian market or plan to do so in apparel sector. They will
bring many promotional practices which they have been following in developed markets
which will increase the use of sales promotion activities even further. Indian brands will have
to withstand turbulent conditions and learn to survive. If the role of such promotional
activities is understood well, it may help any player a long way to survive and grow.
 Bibliography

• www.google.com

• www.pantaloon.com

• www.mywestside.com

• www.shoppersstop.com

• http://besteoffers.blogspot.com/2009/12/free-discount-

coupon-of-25-of.html

• www.futurebazaar.com