1

INDEX
Sr. No. 1. 2. 3. . #. ". Particulars Retail Marketing Types of Retail Outlets History of Pantaloons Profile of Pantaloons $usiness %iscription S(OT )nalysis a* Strengt+s b* (eaknesses c* Opportunities -* T+reats Strategies of Pantaloons Pantaloons . Success Story in Organi/eRetail 0ustomer Sur1ey 3in-ings from Sur1ey 0onclusion $ibliograp+y Page Number 1 2 3 !" &!' , ! 12 12 ! 13 13 ! 1# 1# ! 1& 1' ! 21 22 ! 2" 2& 2' 2, 32

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,. 12. 11. 12.

Retail Marketing
Retail is the sale of goods and services from individuals or businesses to the end-user. Retailers are part of an integrated system called the supply chain. A retailer purchases goods or products in large quantities from manufacturers directly or through a wholesale, and then sells smaller quantities to the consumer for a profit. Retailing can be done in either fixed locations like stores or markets, door-to-door or by delivery. Retailing includes subordinated services, such as delivery. The term retailer is also applied where a service provider services the needs of a large number of individuals, such as for the public. !hops may be on residential streets, streets with few or no houses or in a shopping mall. !hopping streets may be for pedestrians only. !ometimes a shopping street has a partial or full roof to protect customers from precipitation. "nline retailing, a type of electronic commerce used for business-to-consumer #$%&' transactions and mail order, are forms of non-shop retailing. !hopping generally refers to the act of buying products. !ometimes this is done to obtain necessities such as food and clothing( sometimes it is done as a recreational activity. Recreational shopping often involves window shopping #)ust looking, not buying' and browsing and does not always result in a purchase.

Types of retail outlets

*n some parts of the world, the retail business is still dominated by small family-run stores, but this market is increasingly being taken over by large retail chains. +ollowing are the Types of Retail ,arketing-.' /epartment !tores %' /iscount !tores. 0' 1arehouse !tores 2' 3ariety !tores 4' /emographic !tores 5' ,om-And-6op !tores 7' !pecialty !tores 8' $outiques or &oncept !tores 9' :eneral !tores .;' &onvenience !tores ..' <ypermarkets .%' !upermarkets .0' ,alls .2' &ategory =illers or &ategory !pecialist .4' >-tailers .5' 3ending ,achines .7' Automated Retail !tores .8' $ig $ox !tores

History Of Pantaloons
Pantaloon 4as incorporate- as Man/ (ear Pri1ate 5imite- in 1,'&. 6n t+e same year7 t+e company launc+e- Pantaloons trouser7 6n-ia8s first formal trouser bran-. 6n 1,,17 Pantaloon launc+e- $)R97 t+e :eans bran-. 6t starte- Pantaloon S+op7 a franc+ise- mens4ear store across 6n-ia in 1,, . 6n t+e same year7 Pantaloon initiate- -istribution of bran-e- garments t+roug+ multi!bran-e- retail outlets t+roug+out 6n-ia. 6n 1,,#7 it launc+e;o+n Miller7 t+e formal s+irt bran-. 6n 1,,&7 Pantaloon launc+e- a family store7 Pantaloons7 in <olkata7 6n-ia. 6n 22217 6n-ia8s first +ypermarket c+ain 8$ig $a/aar8 4as launc+e-. 6n t+e same year7 83oo- $a/aar8 4as also launc+e-. 6n t+e year 222#7 Pantaloon also launc+e- a557 a store t+at caters to plus!si/e market. 6n 222" Pantaloon launc+e- multiple retail formats inclu-ing 0ollection in 3urniture $a/aar7 S+oe 3actory7 9=one an- %epot. T+e company launc+e- futureba/aar.com7 its online retail store in 222&. 6n 222'7 t+e company -eci-e- to make four of its business -i1isions7 inclu-ing $ig $a/aar7 3oo- $a/aar7 Specialty Retail $usiness )cti1ities anProperty an- Mall Management %i1ision7 into in-epen-ent subsi-iaries. 6n t+e same mont+7 Pantaloon planne- to in1est 6NR37222 million >?&".3& million* in a retail :oint 1enture 4it+ National Te@tile 0orporation >NT0*. 6n Mumbai7 t+e company opene- its -estination mall7 0entral7 in Mumbai. T+e company8s flags+ip format7 Pantaloons7 opene- its first store in Nagpur an- $ig $a/aar 4as opene- in A4alior -uring t+e year in 222'. Pantaloon acBuire- t+e rural retail c+ain7 %ue to t+e uncertain e@ternal economic en1ironment7 Pantaloon initiate- 1arious cost control measures ancon-ucte- scenario planning e@ercises in 3C222'. T+ese initiati1es en+ancet+e efficiency an- pro-ucti1ity of t+e company. Pantaloon in association 4it+ Sac+in Ten-ulkar co!create- a bran-7 Sac+ anlaunc+e- of Sac+ toot+paste in Marc+ 2212.

Profile of Pantaloons
Spotlig+ting to-ay8s buoyant yout+7 Pantaloons7 6n-ia8s premium lifestyle apparel company offers c+ic an- tren-y fas+ion to meet t+eir e1er!c+anging nee-s. Pantaloons reflects t+e i-eology of al4ays keeping ali1e t+e 8ne4ness factor8 t+roug+ fas+ion apparel an- accessories t+at are 1isually appealing an- fas+ionably upbeat. T+e first Pantaloons store 4as launc+e- ami-st muc+ fanfare in Aaria+at7 <olkata in 1,,&. O1er t+e years7 t+e bran- +as un-ergone se1eral transitions an- re!in1ente- itself to bring fort+ compelling tren-s an- styles catering to t+e e1ol1ing fas+ion +ub. Since its inception7 Pantaloons progresse- from retailing :ust a mi@ of bran-s to its 1ery o4n popular pri1ate labels as 4ell7 -esigne- by t+e in!+ouse %esign Stu-io. (it+ a s+arp focus on bringing t+e latest in fas+ion7 t+e %esign Stu-io combines its pro4ess in -esign an- aest+etics to present styles t+at keep t+e consumer fas+ionably -resse- eac+ season. 6nitially positione- as a store catering to t+e fas+ion nee-s of t+e entire family7 Pantaloons +as transitione- to a fas+ion an- lifestyle bran4it+ an emp+asis on yout+ an- a focus on -esigns t+at are in+erently in sync 4it+ current fas+ion tren-s. T+is compelling combination +as +elpePantaloons retain its place on t+e style ra-ar of e1ery consumer8s 4ar-robe. Pantaloons stores +a1e an abun-ance of c+oices across categories t+at range from 4estern to 6n-ian 4ear7 formal to party 4ear anacti1e 4ear for men7 4omen an- ki-s. To furt+er a-- to t+e customer8s innumerable c+oices t+at reflect style7 attitu-e7 an- comfort7 Pantaloons +as e@ten-e- its +ori/ons to fas+ion accessories like fragrances7 foot4ear7 +an-bags7 4atc+es7 sunglasses an- muc+ more. (it+ a c+ain of &2 fas+ion stores across 3# cities an- to4ns7 Pantaloons is constantly e@ten-ing its foot!prints into t+e rest of mo-ern 6n-ia. Pantaloons 4+ic+ 4as pre1iously controlle- by t+e 3uture Aroup +as no4 been taken o1er by )-itya $irla Nu1o 5imite- D8)$N58E. )$N5 is a part of t+e prestigious )-itya $irla Aroup7 a ? 2 billion 6n-ian multinational7 operating in 3" countries across t+e globe 4it+ o1er 1337222 employees. T+e )-itya $irla Aroup ranks +ig+ in t+e 5eague of 3ortune #22 0orporations of t+e 4orl- 4it+ a strong mi@ of talente- an- capable personnel comprising of 2 -ifferent nationalities7 4+o are cre-ite- 4it+ anc+oring t+e organi/ation an- scripting one brilliant success story after
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anot+er. $acke- by t+e giant conglomerates7 )$N5 an- 3uture Aroup7 bot+ t+e entities 4ill 4ork in tan-em to -eri1e operational synergies for back!en-7 supply c+ain an- ot+er crucial 1alue -ri1ers of t+e business. (it+ all t+ese a-1ancements7 Pantaloons is one of t+e fastest gro4ing apparel companies. )n- is poise- to gro4 bigger an- better... (it+ a 1ast collection of more t+an a 122 prestigious bran-s for t+e -iscerning fas+ionista7 Pantaloons offers an incre-ible an- complete one!stop s+opping e@perience to its buyers. T+e &2 aest+etically -esignestores sprea- across t+e country7 -isplay a range of classy an- tren-y merc+an-ise t+at truly li1es up to Pantaloons8 ma@im of 8fres+ fas+ion8. ) typical Pantaloons store is sprea- across a spra4ling retail space of about 2'7222 sB. ft.7 4it+ a bran- portfolio t+at runs across a 4i-e gamut of styles t+at spell class. T+e range caters to 4omen7 men an- ki-s alike. T+e collection is all about rea-y!to!4ear 4estern an- et+nic apparel for men7 4omen an- ki-s7 complimente- 4it+ an e@+austi1e range of accessories. T+e 4omen8s section +ouses pri1ate labels of $are %enim7 $are 5eisure7 Rig7 )nnabelle7 Honey7 an- ):ile7 in 4estern 4ear7 in a--ition to a c+oice of et+nic 4ear from Rang Manc+7 Tris+aa an- )kkriti. Ot+er popular bran-s like 5ee 0ooper7 $iba are also a1ailable. T+e pri1ate labels for men in 4estern 4ear inclu-e 5ombar-7 Rig7 $are %enim7 $are 5eisure an- ;M Sport apart from tren-y bran-s like Frbana7 Scullers7 ;o+n Miller an- 6n-igo Nation 4+ile )kkriti pro1i-es a 4i-e selection of et+nic 4ear. <i-s can c+oose from pri1ate labels like $are %enim7 $are 5eisure7 Rig7 or in-ulge in e@clusi1e bran-s like 5ee 0ooper ;uniors7 0+alk7 Pink G $lue an- Sac+ in a--ition to international bran-s like $arbie an%isney 4+ic+ cater e@clusi1ely to ki-s. 3or t+e et+nic look7 t+ey can opt for tra-itional 4ear from )kkriti. Pantaloons offers muc+ more t+an :ust apparel. 0ustomers can s+op from an assortment of 4atc+es from reno4ne- international bran-s like Tommy Hilfiger7 9sprit7 <ennet+ 0ole7 0iti/en an- Time@7 or Titan an3astrack among ot+er bran-s. Pantaloons is focuse- on gro4t+ 4+ile continuing to create fres+ fas+ion. Pantaloons is recognise- by its 4arm perso nalise- ser1ice t+at completes t+e core proposition of t+is tren-y c+ain.
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BUSINESS DESCRIPTION
Pantaloon Retail >Pantaloon or Ht+e companyI* operates multiple retail formats in bot+ t+e 1alue an- lifestyle segments in 6n-ia. 6t operates o1er 1222 stores across &3 cities in 6n-ia7 an- occupies retail space of about 12 million sBuare feet. T+e company offers its pro-ucts in 1arious lines of businesses suc+ as foo-7 fas+ion7 +ome an- electronics7 telecom an- 6T7 general merc+an-ise7 leisure an- entertainment7 4ellness an- beauty7 books an- music. T+e company also offers pro-ucts t+roug+ its 6nternet retailing store futureba/aar.com. Pantaloon offers foo- pro-ucts t+roug+ retail formats suc+ as $re4 $ar7 0afe $olly4oo-7 3oo- $a/aar7 an- Sports $ar. $re4 $ar offers o1er 1# bran-s of -omestic an- importe- beer. $re4 $ar also offers snacks an- set meals. 0afe $olly4oo- >$olly4oo- refers to t+e 6n-ian film in-ustry* is a fast foo- retail c+ain offering eateries in a $olly4oo- ambiance. 6t offers 6n-ian street foo-7 burgers7 pi//as7 an:uices. 3oo- $a/aar is a c+ain of supermarkets 4+ic+ offers pre!packecommo-ities. Sports $ar is a concept bar t+at focuses on t+e 4orl- of sports. Sports $ar offers -omestic an- importe- spirits7 beers an- 4ines. Pantaloon offers fas+ion relate- pro-ucts un-er banners suc+ as a557 $ig $a/aar7 $lue Sky7 $ran- 3actory7 0elio7 0entral7 9t+nicity7 fas+ionJ$ig $a/aar7 5ee 0ooper Na1aras7 Pantaloons an- Planet Sports. a55 is a fas+ion store for plus si/e men an- 4omen. 6t offers rea-y! to!4ear fas+ionable clot+es an- accessories in 4estern 4ear7 6n-o!4estern or et+nic 4ear in bot+ formal an- casual categories. . Pantaloons stores offers fas+ion pro-ucts suc+ as casual7 et+nic7 formal7 party an- sports 4ear for men7 4omen an- ki-s. 6n t+e general merc+an-ise category7 Pantaloons operates retail formats suc+ as $ig $a/aar7 $ig $a/aar (+olesale 0lub7 $lue Sky7 $ran- 3actory7 0entral7 Na1aras7 Pantaloon an- S+oe 3actory. Pantaloon +as presence in t+e leisure an- entertainment space t+roug+ an affiliate- company7 Aala@y 9ntertainment. Pantaloon operates foo- courts7 fine -ine specialty restaurants7 t+ali restaurants7 banBuets an- multiple kiosks 4it+ bran-s suc+ as 0opper 0+imney7 $ombay $lue7 Noo-le $ar7 Spag+etti <itc+en an- T+e Spoon. T+e company operates specialty stores in t+e 4ellness an+ealt+ retailing. 6t operates Star G Sitara an- 3it G Healt+y. Star G Sitara pro1i-es skin an- +air relate- beauty ser1ices for men an- 4omen. Pantaloon +as presence in t+e books an- music category t+roug+ 8%epot8 4+ic+ offers books7 music 0%s an- cassettes7 +ome 1i-eos7 multime-ia
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>0%!ROMs* pro-ucts an- gift items.

COMPETITORS
6n t+e fas+ion segment7 t+ey face competition from S+oppers Stop7 Trent7 (estsi-e an- 5ifestyle. T+oug+ t+e +ypermarket is ne4 only t+ree to four years ol- in t+e country competition is face- from likes RPA >Spencer8s*7 Trent >Star 6n-ia $a/aar* an- 4it+ S+oppers Stop . 6n t+e 3oobusinesscompetition is face- from Sub+iks+a an- 3oo- (orl-.

SWOT ANALYSIS
Pantaloon Retail >Pantaloon*7 a part of t+e 3uture Aroup7 is a lea-ing 6n-ian operator of multiple retail formats. T+e company balance- its 1alue an- lifestyle portfolio t+ere by +a1ing presence in t+e mass market t+is enable- Pantaloon to tap a large market an- at t+e same time engage in +ig+ margin business 4ill sustain profitability for Pantaloon. Ho4e1er7 +ig+ penetration of unorgani/e- retail players couple- 4it+ e@pansion of large foreign players increase- t+e competition in t+e market 4+ic+ mig+t lea- to market s+are erosion an+ig+ pressure on margins.

Stren t!s
$alance- 1alue an- lifestyle portfolio PantaloonKs -ominant presence in t+e 1alue retail segments capitali/es on t+e attracti1e -emograp+ic profile of t+e country. 6n-iaKs ma:or population currently is an- in t+e future is e@pecte- to be in t+e mi--le class income group. T+is group7 by natural inclinations7 prefers 1alue retailing formats like +ypermarkets7 supermarkets7 -iscount an- con1enience stores. Since 1alue retail stores are usually large7 t+ey ser1e as a one!stop s+op for customers an- offer -istinct a-1antages of con1enience an- time effecti1eness compare- to t+e small unorgani/e- retail sector in 6n-ia. 6n a sur1ey con-ucte- by <PMA7 respon-ents c+ose 1alue retailing formats like supermarkets7 +ypermarkets an- -iscount stores to +a1e t+e most potential for gro4t+ in t+e 6n-ian market. Since 1alue retail is a preferre- format in 6n-ia7 Pantaloon focuse- on formats catering to t+is segment. 6t launc+e- $ig $a/aar an- 3oo- $a/aar an- e@pan-et+e formats aggressi1ely in ma:or eig+t cities of t+e country 4it+ fa1orable -emograp+ics. T+e t4o formats increase- t+eir s+are o1er t+e years to reac+ &1.#L of t+e total retail sales in 3C 222,. (+ile 1alue retailing pro1i-es 1olumes on account of better bargains an- lo4er ticket si/e7 lifestyle stores pro1i-e a better s+opping e@perience anbran-e- Buality merc+an-ise. 0onseBuently7 operating margin in t+e lifestyle segment is +ig+er t+an t+at in t+e 1alue retail segment. Hence7 9$6T%) margin in t+e lifestyle segment 4+ic+ inclu-es Pantaloons7 0entral an- $ran- 3actory ranges bet4een 22.23L 4+ile t+at of t+e 1alue segment ranges belo4 1#L. Pantaloon is increasing its focus on lifestyle stores to create a balance bet4een 1alue an- lifestyle retailing7 t+ereby pro1i-ing cus+ion to its operating margin. %ue to lease mo-el7
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t+e margin in t+e 0entral format is +ig+est at 22."L in 3C 222,7 attracting ma:or in1estments in t+is format. Pantaloon +as balance- its 1alue an- lifestyle portfolio t+ereby +a1ing presence in t+e mass market enabling it to tap a large market at t+e same time engaging in +ig+ margin business 4ill sustain profitability for t+e business. 5ogistics net4ork an- back4ar- integration 4ill impro1e margins Pantaloon +as a large an- efficient logistics an- in1entory management system in place to cater to a large market. T+e companyKs logistic net4ork t+at carries an a1erage of t4o million pieces e1ery-ay 4it+ peak single!-ay transactions reac+ing four million pieces. ) fleet of o1er '22 1e+icles from o1er 222 1en-ors to #2 4are+ouses to stores in o1er &2 cities are transporte- on a regular basis. ) speciali/e- company 3uture 5ogistic Solutions 5imite- >35S5* +an-les all t+e relate- functions. %uring t+e year7 Pantaloon rationali/e- t+e number of 4are+ouses as fe4er an- bigger 4are+ouses facilitate economies of scale an- at t+e same time7 consoli-ation of merc+an-ise in fe4er locations +as also resulte- in +ig+er pro-uct a1ailability an- 4i-er c+oice to customers. T+e company create- +ig+ly automate%istribution 0enters >%0s* t+at ensure- +ig+er 1ertical space utili/ation an- +ig+er t+roug+puts. 6mplementation of a-1ance- (are+ouse Management System >(MS* an- )utomatic Replenis+ment System >)RS* +as significantly impro1e- in1entory 1isibility across 4are+ouses 4+ic+ 4ill facilitate impro1e- or-er fulfillment anaccuracy. PRl5 +as also set up a +ub7 4+ere it takes t+e -eli1ery no4 instea- of to separate 4are+ouses. T+is +as le- to +ig+er efficiency in costs an- +ig+er in1entory turno1er. )not+er significant step t+at Pantaloon +as taken is to re-uce interme-iaries. Fntil no47 t+ere 4ere t+ir- parties +an-ling t+e fruits an- 1egetables category at its 1arious $ig $a/aar an- 3oo- $a/aars. Pantaloon7 4+ic+ till no4 outsource- t+e procurement7 +as no4 -eci-e- to set up a separate -i1ision +ea-e- by Mr. <. Ra-+akris+nan 4+o +a- establis+e- 3oo- (orl- for Spencer8s an- 4as +an-ling t+e +ypermarket an- 1alue retail format at Reliance Retail. Pantaloon also took a-1antage of t+e -o4nturn last year to cut out interme-iaries in its supply c+ain. To re-uce its reliance on 4+olesalers7 it approac+e- oil mills7 rice mills an- ot+er suppliers -irectly to sa1e costs. Ho4e1er7 4it+ economies of scale rising from increase- space un-er operations7 cost re-uction met+o-s an- a-option of better in1entory management an- supply c+ain management systems7 t+e operating profit margin of t+e company impro1e- to 12.#L in 3C222, from ".&L in 3C222&. T+e efficient logistics an- in1entory
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management is a competiti1e a-1antage in an en1ironment 4+ere margins are lo4 an- competition is furt+er pressuri/ing t+em. Pantaloon is a -ominant player an- is e@pan-ing t+roug+ collaborations anacBuisitions Pantaloon is one of t+e largest retailers in 6n-ia. 6t -emonstrate- aggressi1e gro4t+ in recent years an- touc+e- o1er 12 million sB ft in retail space. T+e company +as tie- up aroun- 12 million sB ft. of retail space 4it+ -e1elopers at rentals lo4er t+an in-ustry a1erage. 3oot falls increase- from 11# million in 222& to 1"3 million in 222' an- 1'# million in 222,. Pantaloon +as also +as +ig+ly successful con1ersion rates from 1L in 222' to 3L in 222,. )1erage ticket si/e increase- from 6NR&#2 >?1#.&* in 222' to 6NR&,2 >?1"."* in 222,7 all t+e factors contributing in increasing t+e re1enues furt+er strengt+ening t+e companyKs presence. )ccor-ing to in-ustry sources 3oo- $a/aar captures aroun- 2'L of total sales of 3M0A pro-ucts in mo-ern retail. 6n certain cities like )+me-aba-7 Pune an- <olkata7 t+is s+are is close to #2L. T+is formi-able s+are allo4s Pantaloon to -efine t+e market7 buil- ne4 categories an- -e1elop ne4 bran-s in t+e 3M0A space. Alobally7 Pantaloon is t+e fastest to ac+ie1e t+e first 122 +ypermarket stores e@pansion t+roug+ organic gro4t+7 in-icating t+e +ig+ rate of penetration into t+e market. To furt+er strengt+en its presence Pantaloon +as also focuse- on inorganic e@pansion. 6n 22127 t+e company +as acBuire- a Sout+ )frica!base- S+oprite Hol-ings8 store in Mulun- area of Mumbai an- rename- it as 3oo- Rite. Similarly7 Pantaloon also forme- a #2!#2 :oint 1enture 4it+ t+e F<!base- 0G; 0lark 6nternational to engage in 4+olesaling of 0lark8s bran-epro-ucts in 6n-ia. 0G; 0lark is one of t+e largest makers of casual s+oes in t+e 4orl-7 manufacturing bran-s like 0larks7 $ostonian an- < S+oes for men7 4omen an- c+il-ren. )lso7 3uture Aroup entere- an agreement 4it+ 3renc+ retailer 0arrefour7 to open t+e 0arrefour bran-e- franc+ise stores in 6n-ia. T+e company +as plans to open bet4een 1#2 an- 322 0arrefour bran-e- +ypermarkets in t+e ne@t # years. T+e -eal 4ill allo4 3uture Aroup to source pro-ucts an- seek tec+nical7 tec+nological an- ot+er e@pertise from 0arrefour. Suc+ a tie! up 4oul- gi1e Pantaloon access to a larger in1estment 4ar c+est. Pantaloon in collaboration 4it+ 0apital 3oo-s7 a 3M0A company7 is also planning to form a special purpose 1e+icle >SPM* to set up t4o mega foo- parks 4it+ an in1estment of 6NR3222 million >?"2.& million*. T+e company t+roug+ its establis+e- presence is able to capture a large a--ressable market. 6t 4ill be able to fle@ its muscle to impro1e efficiencies in pricing an- supply c+ain. )--itionally7 t+e strong presence an- aggressi1e e@pansion 4ill better eBuip Pantaloon to
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effecti1ely -eal 4it+ competition 4+ic+ +as intensifie- in t+e market.

Wea"nesses
Hig+ -ebt >compare- to competitors* 4ill increase financial risk. T+e company reporte- -ebt of 6NR2'7#22 million >?#,#.& million* at t+e en- of 3C222,7 4+ic+ translates into a -ebt to eBuity ratio of 1.2# times. 0omparing Pantaloon 4it+ its )sian peers7 t+e company +as +ig+ -ebt. 6ts )sian peers +a1e far lo4er -ebt to eBuity. 3or instance7 2.137 1.227 2.#,7 2.# an- 2.2 are t+e -ebt eBuity ratios of 5otte s+opping7 Parkson retail group7 5ifestyle 6nternational Hol-ings7 Aol-en 9agle Retail Aroup an- Aior-ano 6nternational respecti1ely. 6nterest an- financial c+arges outflo4 +as increase- from 6NR17'#2.& million >?3'.& million* in 222&!2' to 6NR371'2.2 million >?"".# million* in 222'!2,. T+e increase in interest an- financial c+arges is on account of a--itional borro4ing for fun-ing t+e gro4t+ plans. )s a result7 t+e interest an- financial c+arges co1er -uring t+e year un-er re1ie4 +as fallen -o4n to 2.12 times as compare- to 2.#1 times in t+e prece-ing year. )--itionally7 4eig+te- a1erage cost of borro4ing +as marginally increase- from 11.1#L to 11.3&L on account of +ig+er cost of fun-sN borro4ings -ri1en by market con-itions. Pantaloon +as raise- fun-s t+roug+ Bualifie- institutional placement -uring 222, an- t+e -ebt eBuity ratio 4oul- re-uce to a certain e@tent in 2212. Ho4e1er7 Pantaloon 4ill nee- a--itional -ebt for its e@pansion plans. T+e retail business runs on 4afer t+in margins an-7 +ence7 internal accruals 4ill not be sufficient to fun- e@pansion plans. 0onseBuently7 +ig+er -ebt mig+t be reBuire- to fun- t+e e@pansion. Hig+ interest rates are recurring e@penses 4+ic+ 4ill affect t+e margins a-1ersely. Hig+er -ebt also increases t+e risk in t+e business as t+e interest an- finance co1er re-uces. ) -irect impact of t+is is t+at cost of capital 4oul- furt+er increase7 making it e1en more costly to fun- t+e e@pansion. T+erefore7 +ig+ amounts of -ebt 4ill raise t+e cost of fun-ing an- also increases t+e amount of recurring e@penses for Pantaloon.

O##ort$nities
$ooming 6n-ian retail market an- prefences of t+e 6n-ian mi--le class. T+e retail in-ustry in 6n-ia is large o4ing to a large population an- is set to gro4 as se1eral factors contribute. 6n-ustry reports forecast t+at total retail sales 4ill gro4 from
13

6NR1".3 trillion >?3#3.2 billion* in 2212 to 6NR2# trillion >?# 3.2 billion* by 221 . Strong un-erlying economic gro4t+7 population e@pansion7 t+e increasing 4ealt+ of in-i1i-uals an- t+e rapiconstruction of organi/e- retail infrastructure are key factors be+in- t+e forecast gro4t+. )lso7 as mi--le an- upper class consumer base e@pan-s7 t+ere 4ill also be opportunities in 6n-ia8s secon- an- t+ir-!tier cities. T+e greater a1ailability of personal cre-it an- a gro4ing 1e+icle population are to impro1e mobility 4+ic+ 4ill also contribute to a trento4ar-s annual retail sales gro4t+ of 11. L. 6n-ia8s nominal A%P is a forecast at ?1.#2 trillion in 2212. )1erage annual A%P gro4t+ of &.'L is pre-icte- t+roug+ to 221 7 making it one of t+e fastest gro4ing economy in t+e 4orl-. (it+ t+e population e@pecte- to increase from 1.1, billion in 2212 to 1.2# billion by 221 7 A%P per capita is forecast to rise by o1er &#L by t+e en- of t+e forecast perio-7 reac+ing ?2723'. T+e consumer spen-ing per capita is estimate- to increase from ?&,3 in 2212 to ?171"2 in 221 . )not+er key a-1antage is t+e lo4 penetration of organi/e- retail 4+ic+ pro1i-es immense scope for Pantaloon. Organi/e- retail7 or large c+ains7 make up only "L of t+e market but is e@pecte- to e@pan- at 22L a year. T+is is -ri1en by t+e emergence of s+opping centers anmalls7 an- a mi--le class of close to 322 million people t+at is gro4ing at :ust un-er 2L a year7 accor-ing to -ata from National 0ouncil of )pplie- 9conomic Researc+ >N0)9R* an- (orl- $ank. Mass grocery retail is une@ploite- to t+e full potential an- sales in 6n-ia from t+is c+annel are forecast to un-ergo enormous gro4t+. 6n-ustry sources pre-ict t+at sales t+roug+ mass grocery retail outlets 4ill increase by 1# L to reac+ ?1#.2, billion by 221 . T+is is a conseBuence of s+ift from small in-epen-ent retailers to large7 mo-ern outlets. Pantaloon +as establis+e- its presence in t+e market an- is a -ominant player. 6ts aggressi1e gro4t+ plans t+roug+ organic an- inorganic means 4ill enable it to effecti1ely tap into t+e +ig+ gro4t+ market. 6ncreasepenetration of pri1ate labels 4ill impro1e margins. Pantaloon +as been focusing on increasing t+e s+are of pri1ate label sales. T+ese labels are price- lo4er t+an national bran-s 4+ile +a1ing better margins. Pantaloon +as create- many pri1ate label bran-s t+at are sol- un-er 1arious formats like Pantaloons7 $ig $a/aar7 3oo- $a/aar7 Home To4n7 $ran- 3actory an- 9!/one. T+e s+are of pri1ate labels is -ifferent for 1arious segments operate- by t+e company. 6ts s+are in t+e fas+ion anelectronics segment is +ig+er at '2L an- 22L7 respecti1ely7 4+ile t+at in foo- an- general merc+an-ise is lo4er at #!'L. Pantaloon +as been launc+ing pri1ate labels in 3M0A category. 6t +as launc+e- 3res+ an1

Pure >foo- an- staples*7 0leanmate >+ome care*7 0aremate >personal care pro-ucts*7 Tasty Treat >foo-7 snacks7 cola an- soft -rinks* anPremium Har1est >package- pulses an- rice*. T+e company plans to launc+ more pri1ate labels in t+e 3M0A space to generate better margins from t+e segment. 0urrently7 pri1ate labels contribute 22L to PantaloonKs top line7 an- Pantaloon e@pects to increase its s+are to 2#L. (+ile t+e national bran-s +a1e margins at 12 to 1&L7 t+e pri1ate label margins are as +ig+ as 2#L to 2L. 6ncrease- penetration of pri1ate label bran-s t+roug+ ne4 launc+es 4ill enable t+e company to increase t+e profits affecting profitability positi1ely. (ell positione- to foray into t+e online c+annel t+roug+ futureba/aar.com . Pantaloon launc+efutureba/aar.com t+roug+ 3utureba/aar 6n-ia 5t- >3$65*7 to le1erage on se1eral a-1antages t+at t+e c+annel offers. 9!retailing re-uces t+e cape@ an- increases t+e reac+ of t+e company at minimal e@tra cost. 6t also re-uces costs like rental7 employee cost an- in1entory carrying costs 4+ic+ 4oul- +a1e to be incurre- in a brick an- mortar format. 6t creates time utility for customers by sa1ing tra1elling cost for t+e customer an- transportation cost for t+e company. Pantaloon is furt+er is furt+er creating synergy in bot+ t+e brick an- mortar format an- e! retailing by pro1i-ing similar -eals on bot+ platforms. T+e online customers 4ere offere- t+e same -eals like t+at are a1ailable at $ig $a/aar. 3urt+ermore7 Pantaloon combine- t+e online portal 4it+ catalogue retailing t+roug+ kiosks locate- in malls an- s+opping centers to attract a ne4 set of customers. T+e 6n-ian e!commerce market is set to boom an- as t+e e!commerce market in rest of t+e 4orl- is gro4ing at '!12L7 6n-iaKs e!commerce is estimate- to gro4 4ell abo1e 32L. Pantaloon t+roug+ its presence in t+e segment 4ill be able to increase t+e potential customer base an- 4ill effecti1ely participate in t+e booming e!commerce market.

T!reats
6ntensely competiti1e market 4it+ +ig+ penetration of unorgani/e- retailers is set to become e1en more so 4it+ entry of large foreign players 6n-iaKs retail en1ironment is c+aracteri/e- 4it+ a large pool of in-epen-ent retailers 4+o are currently -ominant players in t+e market. T+ere are close to 12 million in-epen-ent retailers 4it+ a market s+are of close to , L. T+ese in-epen-ent retailers +a1e lo4 operational costs an- reBuire 1ery lo4 start up costs. Hence7 t+e penetration into t+e markets is +ig+er an- t+eir small formats pro1i-e a uniBue a-1antage of con1enience compare- to large organi/e- retailers. )lso7 t+e kirana stores >as in-epen-ent small retailers are referre- to*
1#

stock only t+e pro-ucts t+at are +ig+ly suitable for t+eir customers as t+ey speciali/e in ser1ing a selecte- group of customers an- are 4ell a4are of t+e nee-s an- reBuirements. )--itionally7 t+ese stores also pro1i-e +ig+ customer ser1ice an- informal cre-it ser1ice as 4ell7 4+ic+ makes t+em t+e preferre- retailers for a large pool of customers in 6n-ia. T+e customer perception of 1alue is +ig+er for t+ese kirana stores. T+e s+ift in t+is perception 4ill take some time to set in an- until t+en organi/e- retail +as to increase efforts to capture a large a--ressable market reBuire- to le1erage t+e +ig+ start up anoperational costs of t+ese organi/e- retailers like Pantaloon. 6n-ia +as been ranke- first on Alobal Retail %e1elopment 6n-e@7 222, signifying t+at t+e 6n-ian retail sector is at a peaking stage7 is -e1eloping Buickly an- is rea-y for mo-ern retail. T+is +as ma-e t+e ne@t t+ree to four years t+e best time for foreign retailers an- ot+er 6n-ian corporate retailers to enter 6n-ia. 6t is also t+e perfect time for e@isting players to un-ergo aggressi1e e@pansion. T+is lea- to large 6n-ian players like Reliance 6n-ustries7 )-itya $irla Aroup an- $+arti )irtel to e@panaggressi1ely to tap t+e +uge gro4t+ potential opportunities. )ccor-ing to t+e current 3%6 norms7 foreign companies are not allo4e- to o4n stakes in multi!bran- retail businesses7 a rule -esigne- to protect 6n-ia8s 1ast in-epen-ent retail sector. T+e prospect of a rule c+ange +as seen local players e@pan- fast in or-er to secure a -ominant position before t+e seemingly ine1itable arri1al of multinationals7 4+ile it +as also seen multinationals enter t+e country t+roug+ 4+olesale :oint 1entures in or-er to begin buil-ing functions for a time 4+en t+ey can operate alone. T+e recent uptick in e@pansionary in1estment is also a pro-uct of gro4ing sentiment suggesting t+at t+e go1ernment mig+t re1erse its restricti1e stance on international in1estment. )--itionally7 se1eral large international players +a1e entere- t+e 6n-ian market. (al!Mart +as a :oint 1enture 4it+ $+arti 9nterprises an- it +as launc+e- t4o 4+olesale stores an- plans to open anot+er 12!12 o1er t4o!t+ree years. Tesco7 t+e F<8s largest retailer +as a tie!up 4it+ Trent for a franc+ise agreement for its +ypermarket c+ain. Aermany8s Metro +as its o4n cas+!an-!carry business7 4+ic+ operates un-er its o4n bran- name. 6n t+e lifestyle segment7 F<8s Marks G Spencer operates an apparel retail c+ain an- +as a :oint 1enture 4it+ Reliance Retail. )lt+oug+ 6n-ia is a large country 4it+ immense opportunities most of t+ese players are entering t+roug+ large metro areas 4+ere t+e market is mature an- t+ere are large players competing. Pantaloon -eri1es "2L of its re1enues from top eig+t cities in t+e country. 6ncreasing number of players entering t+e market 4ill intensify t+e competition lea-ing to margin
1"

pressure. )--itionally7 t+e organi/e- retail is a nascent stage analt+oug+ set to gro4 at a fast pace7 t+e player are competing 4it+ in t+e "L of 6n-iaKs retail market. )n- t+e prospect of retail liberali/ation +as seen an aggressi1e in1estment by t+e 6n-ian peers to e@pan- t+e market s+are. )ll t+ese factors +a1e increase- t+e competition in t+e market 4+ic+ mig+t lea- to market s+are erosion an- +ig+ pressure on margins. Hig+ lease rentals an- in1estments 4ill a-1ersely affect profitability an- e@pansion plans. T+e lease rentals an- infrastructure in1estments +a1e le- to t+e retail sector in 6n-ia being t+at of +ig+ in1estment anlo4 return business. Rentals in 6n-ia are consi-ere- to be among t+e +ig+est in t+e 4orl- an- account for 12L to 1#L of t+e retailerKs operating cost. T+e percentage in ot+er countries is as lo4 as L to #L. )ccor-ing to in-ustry e@perts7 retailers in 6n-ia can sustain rents of 6NR1#2 >?3.1* per sB. ft per mont+ if t+ey -o business of about 6NR1#7222 >?313.#* for t+e same space in t+at time. Ho4e1er7 rents +atoppe- 6NR"#2 >?13."* per sB. ft per mont+ in Ne4 %el+i7 6NR &' >?,.,* in Noi-a an- 6NR3'# >?'* in Aurgaon7 some of t+e largest metropolitan regions in 6n-ia. T+e rents are 1ery +ig+ for t+e business as accor-ing to t+e company estimates t+e per sBuare feet sales are to come in t+e 1icinity of 6NR,7222 >?1''.1* per mont+ as t+e economy re1i1es. )not+er factor t+at restricts t+e a1ailability of -esirable retail space is t+at malls an- large retail comple@es are -e1elope- only in fe4 top cities in t+e country. )ccor-ing to estimates ma-e7 at least &#2 malls are being built in t+e country an- retailers in cities suc+ as Mumbai7 %el+i an- 0+ennai see cannibali/ation -ue to presence of retailers 4+o offer t+e same goo-s an- ser1ices. 3urt+ermore7 6n-ian infrastructure remains +ugely un-er-e1elope- an- t+is necessitates massi1e supply c+ain in1estments before a single store7 let alone a nation4i-e net4ork7 can be opene-. T+is c+allenge 4ill remain a big one for large retailers like Pantaloon to -e1elop a national c+ain7 specifically to penetrate into rural 6n-ia. T+ese factors +a1e contribute- to t+e in1estments being large an- t+e operational costs are also +ig+ o4ing to +ig+ lease rentals7 +ig+ oil prices an- +ig+ labor costs. T+ese factors +a1e been constantly pressuri/ing t+e returns on in1estments an- profitability an- +a1e been acting as barriers for Buick e@pansion. PantaloonKs margins mig+t be a-1ersely affecte- o4ing to suc+ +ig+ costs.

1&

Strate ies of Pantaloons

T+e company obser1es retail customer tren- an- c+anging consumption tastes. Organi/ation customer -ri1en oppose- to pro-uct -ri1en .0ompany is 1ery conscious about culture an-regional consumption pattern. Strategies c+ange freBuently -ue to orient to t+e customer8s nee-s. T+e continues of learning7 unlearning an- relearning is applie- to up-ate t+e Buick c+anging strategies across t+e organi/ation. )s <is+ore $iyani M% Pantaloon retail 6n-ia 5T% says Retail is like ri-ing bicycle. 6n up+ill if you stop pe-aling you 4ill sli-e -o4n . T+e statement e@press t+e nee- of continues learning process to form t+e strategies. $ase- on analysis its business strategies can be categori/e- in 3 ma:or groups. T+ey are 1* %i1ersification strategy 2* 0lasses -estination strategy 3* Ma@imum market s+ares strategy

Di%ersifi&ation strate y
T+e company starte- its business as te@tile manufactures but gro4t+ in mo-ern organi/e- retailing attracte- t+e company to s4itc+ -i1ersify to t+e ne@t consumption pattern. T+e company -i1ersifie- an- acBuire- a large business in organic an- inorganic 4ay. $ut company -i- not forget ripe its strategy an- 1alues in t+e -i1ersifie- company. 6n e1ery ne4 business company starte- to re4rite t+e rules by retaining 1alues. T+e company in latter stage organi/eto support eac+ ot+er by p+ysical material flo4 if reBuire-. %i1ersification is -one in t4o main categories Retail 3ormats an- Specialise- $usiness.

Classes 'estination strate y

3uture group +as -i1ersifie- its business keeping t+e retailing as common goal. To set an- concentrate on one stratum is main ob:ecti1e of t+is strategy. 9ac+ business is set to operate on -efine- stratagies. 0ompany +as -i1i-e- 6n-ian customers in t+ree -ifferent groups. 6N%6) ON97 6N%6) T(O7 6N%6) THR99. 9ac+ +as -ifferent 1alues7 pro-ucts an- Buality reBuirements. 6N%6) ON9 or consuming class .T+e population of t+is constitutes only 1 L.Till recent times t+e mo-ern retailing formats is offere- for t+is class. )ccor-ing Maslo48s t+eory of +ierarc+y t+e 1 L people are in self actuali/ation an9steem nee-s in t+e pyrami-. 3or t+is class pantaloons patterne- 3uture ba/aar7 9 /one7 0entral7 bran- factory7 Home to4n an- star Aala@y entertainment. 6N%6) T(O or t+e ser1ing class it inclu-es people like +ouse +ol- +elpers7 office peon etc. T+is is t+e people 4+o make ser1ice 6N%6) ON9 class. T+e
1'

population of t+is class is more t+an 32L. 6n t+e nee-s +ierarc+y t+ey are locate- in for Social an- security .9arning capacity of t+is class is "2L lesser t+an 6N%6) ON9. 3or t+is class as t+e big ba/aar7 3oo- ba/aar7 3uture money an- ot+er retail formats are presente-. 6n-ia T+ree or struggling class. T+e class le- life on +an- to mout+ e@istence. T+ey can8t affor- for beater li1ing style. T+is segment -oesn8t contribute muc+ in t+e contribution cycle. T+e nee- of t+e segment is local as t+ey are fin-ing it c+eaper. T+e present business mo-el is not a--ressing t+is class. 0+ange in consumption patter by -ifferent class in. 6n-ia One +as c+ange- from 2#L to 3#L normally t+e total profit in t+is segment 4ill comparati1ely 22L more t+an t+ey are sol- in ne@t segment. )s ambiance is factor an- ot+er pleasuring non 1alue a--e- ser1ices are necessary. 6n-ia T4o +as not c+ange- it conception le1el. 6n-ia T+ree +as seen 12L -ecline.

Ma(i)$) )ar"et s!ares strate y

T+e retail c+ain by pantaloons in all business patterns tries to ac+ie1e ma@imum market s+are in all t+e pro-ucts or ser1ice it pro1i-es. T+e 0ompany -oes not bot+ers about s+ort term profit or loss by a strategy. T+is are consi-ere- as learning. T+e business 4ill sell at marginal profit some times to attract t+e ne4 customer 4+o 4ill pro1e potential customers in future. T+e strategy ac+ie1e- by focusing pricing factors in 6n-ia T4o an- on ser1ice anBuality in 6n-ia One.

Pri&in strate ies

Pricing is strategy use- by Pantaloon retail c+ain to attain ma@imum market s+ares. T+e company offers numerous sc+emes to attract t+e ne4 customer as 4ell as to retain t+e present customers. T+e company8s sc+emes are categori/e- in follo4ing groups Malue pricing. T+is approac+ is use- 4+ere e@ternal factors suc+ as recession or increase- competition force companies to pro1i-e 81alue8 pro-ucts an- ser1ices to retain sales. T+e pro-uct 1alue 4ill be associate- 4it+ e@ternal factors. Promotional pricing Pricing to promote a pro-uct is a 1ery common application. T+e application of t+is -one by $OAO >$uy one Aet One*7 $TAO >$uy T4o Aet One 3ree* etc. $un-ling $un-ling is marketing tool sell t4o or more complementary pro-uct as a package 4it+ attracti1e price. T+e price is 4ill lesser t+en in-i1i-ual selling price. 9@ampleO ) Person
1,

nee-s one soap for a perio- of time $ut bun-ling 4it+ attracti1e price 4it+ more t+an 3 soaps can attract t+em. 5o4 interest rate financing 3uture money +elps in asset purc+ase at 2L interest. P+ysiological -iscounting in 6n-ia t+is approac+ is calle- as $ata rating system. Organi/ation utili/es t+is approac+ 4+en pro-uct +as emotional 1alue rat+er t+an rational 1alue. 9@ample a pro-uct is price- for ,, instea- of 122.(+en boar- s+o4s price re-uction from 122 to ,,70onsumer looks at 3 -igits to 2 -igits rat+er t+an e@act 1alue time pricing. T+e inno1ati1e 4ay of attract t+e customer is Timely pricing it is kno4n t+at -uring +oli-ays rate of customer is more. Re-uction of profit margin 4it+ lot of a-1ertisement 4ill in1ite ne4 customers. T+e company +as learnt it from strategy ma-e on public +oli-ay 2"!3eb. (+en t+e turno1er of t+e -ay reac+e- 32 cores 4+ere a1erage is # cores. (it+ suc+ e@perience cro4-e- management is essential so to -i1ert potential customers P(e-nes-ay ba/aarQ 4+ere it 4ill offer less profit margin sales.

$un-ling MarketingO! Tec+niBue of offering t4o or more complementary goo-s or ser1ices toget+er as a package -eal. $un-le- items are sol- at a price attracti1ely lo4er t+an t+e total of t+eir in-i1i-ual selling prices.

Le%ers iss$es
Human resource 4ell traine- staff7 )ppearance7 9mpo4erein-i1i-uals7 Fse scenario planning as a tool for Buick -ecision making7 $ranambassa-or Organi/ation structure G controls. T+e entrepreneurial culture anspirit pre1ails in t+e company. )ppetite for taking risks is encourage-7 learning 4+ile -oing7 No rigi- organi/ational structure7 organi/ation -esign approac+7 $alance- Score car- approac+ Retail control Semi 0entrali/e-7 0omple@ Sourcing 9!touc+ 4it+ supplier7 Self pro-uction facilities 4it+ small number of suppliers7 S+ort term contracts >base- on lo4est bi-* Process Mo-ern +artec+nology7 %e1ol1e- internally7 Re-uces cost7 ne4 strategies an- process inno1ations 3acilities Special propose7 5arge7 0apital -ri1en7 Place- in ma:or cities

22

21

Pantaloons * A S$&&ess Story in Or ani+e' Retail

Retail plays a ma:or role in increasing circulation an- sales for all kin-s of consumer goo-s an- ser1ices. 0ountries like FS)7 F.<. an- 0+ina are successful e@amples of t+e same. 0onsumer retail is t+e secon-!largest in-ustry in t+e Fnite- States7 bot+ by t+e number of establis+ments an- by t+e number of employees. (al!Mart7 t+e 4orl-Ks largest retailer7 is also t+e 4orl-Ks largest employer. 6t +as become t+e most successful retail bran- in t+e 4orl- -ue to its ability to le1erage si/e7 market segmentation7 an- its efficacy in assuming market -ominance. (al!Mart +ea-s t+e 3ortune maga/ine list of top #22 companies in t+e 4orl-. Retail Scenario in 6n-iaO 6n 6n-ia o1er , L of t+e retail sector consists of tra-itional mom!an-!pop stores an- street!1en-ors. (it+ no large players7 infrastructure being far from a-eBuate an- a tiny part of t+e population being able to affor- it7 7 6n-ian retail ne1er attracte- large business +ouses an- ma:orly focuse- on nic+e pro-uct segments an- lu@ury goo-s.. T+is 4as till t+ey reali/e- t+at retail in 6n-ia is a FS% ?3#3 billion in-ustry D$M6 6n-ia Retail Report 2212E gro4ing at a 0)AR of 12L an- contributing more t+an 2#L to t+e countryKs A%P. To-ay it mig+t seem implausible t+at t+is important sector of t+e countryKs economy +a- been o1erlooke- by 0orporate giants. Ho4e1er t+ey cannot be sBuarely blame- too. 6n-ian retail +as tra-itionally been an unorgani/e- sector7 4+ere retailers lacke- t+e means as 4ell as t+e 4ill to -e1elop or e@pan-. Retail coul- also ne1er en:oy t+e support of t+e 6n-ian consumer7 4+o is famous for being miserly an- treate- s+opping as a form of leisure t+an a necessary e1il7 t+us en:oying t+e t+rill of -isco1ering bargains an- -iscount -eals on +is o4n. Small gains7 lack of infrastructure7 an unattracti1e 6n-ian consumer anabsence of regulation ne1er pro1i-e- opportunities for retail giants to capitali/e. Mean4+ile7 t+e Ao1ernment preferre- to remain silent 4+ile t+e unorgani/e- retail sector pro1i-e- a meager stan-ar- of li1ing to millions in t+e country. Po1erty plague- a ma:ority of t+e population an- t+e corporate giants preferre- to spen- t+eir resources in areas like po4er an- telecom 4+ere large!scale opportunities 4ere abun-ant. To-ay t+e retail in-ustry +as 4itnesse- a remarkable transformation. T!e Ne, Story T+e countryKs to4ering economic gro4t+ of aroun- 'L +as resulte- in ma:or s+ifts in t+e 6n-ian economic class7 4it+ +ig+er incomes lea-ing to t+e gro4t+ of t+e 6n-ian mi--le!class. T+is mi--le!class is a4are of t+e stan-ar-s of li1ing in ot+er countries7 t+anks to e@posure t+roug+ t+e tools of Alobali/ation . t+e Me-ia G t+e 6nternet. T+ey +a1e -eci-e- to t+us a-opt a HSpen-ingI approac+ to impro1e t+eir stan-ar- of li1ing rat+er t+an t+e tra-itional HSa1ingI
22

approac+. T+e currently estimate- 1alue of organi/e- 6n-ian retailKs target population is larger t+an t+at of t+e entire Fnite- States. Mote- t+e most attracti1e retail -estination in t+e 4orl- for t4o years in a ro47 6n-ia is e@pecte- to 4itness 12L gro4t+ in its retail sector o1er t+e ne@t fe4 years >SourceO HRetail in 6n-ia . Aetting Organi/e- to -ri1e gro4t+.I 066!).T. <earney7 No1. 222"7 )ssoc+am Press Release*. Recogni/ing t+e s+ort!term anlong!term gro4t+ of retail in 6n-ia7 a number of -omestic business giants +a1e entere- t+e retail in-ustry. (e focus on t+e factors t+at +a1e le- to t+e success of <is+ore $iyaniKs Pantaloon Retail. Pantaloon-s Story PantaloonKs success an- continuous gro4t+ in t+e 6n-ian organi/e- Retail market can be attribute- to a number of factors7 some of 4+ic+ +a1e been -eri1e- from t+e strategies of large retailers in t+e 4est7 4+ile ot+ers are completely tailor!ma-e for t+e 6n-ian market. (+at is e1i-ent at t+e outset is t+at $iyani +as foreseen an- un-erstoo- t+e 6n-ian retail roa-map better t+an anyone else. PantaloonKs ma:or a-1antage o1er its competitors in t+e retail sector +as been its uniBue un-erstan-ing of t+e 6n-ian organi/e- retail market 4it+ all its Buirks7 s+ortcomings an- c+allenges. $y creating a retail business from t+e groun-!up an- e@pan-ing rapi-ly7 Pantaloon +as follo4e- a (al!Mart like pattern of gro4t+. Ho4e1er7 unlike (al!Mart7 it -eci-e- to e@periment 4it+ as many retail formats7 pro-uct!mi@es an- bran-s as 4as possible in or-er to gain ma@imum kno4le-ge about t+e uncertain 6n-ian min-set. 6n fact7 ne4er entrants in t+e organi/e- retail market 4oul- learn t+e 4ays of t+e uniBue 6n-ian organi/e- retail sector as 4ell as fin- a 4ay to combat PantaloonKs -ominant market s+are in almost all forms of organi/e- retail a -aunting task. W!at 'i' it 'o Ri !t . T+e Retail 9@periment . Multiple 3ormats7 Multiple $ran-s Pantaloon +as e@perimente- 4it+ e1ery retail format possible. Most of t+eir e@periments +a1e pro1en to be successful an- Pantaloon continues to e@periment 4+ile e@pan-ing e@isting 1entures. Ho4e1er7 t+e real re4ar- of t+ese e@periments is t+e kno4le-ge an- e@perience gaine-! T+is 4as most elusi1e in a pre1iously untouc+e- an- unkno4n organi/e- retail sector. T+is is an e@ample of Pantaloon a-apting itself to t+e 6n-ian market rat+er t+an attempting to copy a (al!Mart. T+e e@perimentation process -i- not en- 4it+ testing -ifferent store formats aloneO Pantaloon is also e@perimenting 4it+ a 1ariety of pro-ucts. 3rom menKs 4ear t+e company +as mo1e- on to intro-uce furniture7 sports4ear7 kitc+en appliances7 foo-7 electronics an- c+il-renKs apparel. )gain7 it seems to kno4 4+at 4orks an- 4+at -oesnKt in t+e 6n-ian market7 somet+ing t+at 4oul- not +a1e been t+is apparent e1en 1 -eca-e ago.
23

Pantaloon +as also intro-uce- a number of pri1ate bran-s. 3or e@ample7 it +as e@perimente- 4it+ launc+ing clot+ing lines base- on famous $olly4oo- blockbusters.. (it+in t+e bran- retailing space7 Pantaloon +as also tie- up 4it+ some of 6n-iaKs most popular bran-s like Aini an- ;ony to sell t+em at t+eir stores. Rat+er t+an attempt to compete 4it+ e@isting popular bran-s t+e company +as -eci-e- to partner 4it+ t+em an- le1erage t+em in t+e ambiguous 6n-ian market. T+ese bran-s +a1e ac+ie1e- success an- a loyal fan follo4ingR PantaloonKs mo1e +as broug+t in more customers t+en t+ey coulretain. T+e competitors -o +a1e t+e opportunity to learn from t+e e@periences of 6n-iaKs largest retailer7 but t+e e@perience t+at comes 4it+ managing t+ese -i1erse retail formats in t+e 6n-ian scenario is somet+ing t+at ne4 entrants 4ill +a1e to learn on t+eir o4n. %ue to t+e pace at 4+ic+ Pantaloon +a- mo1e-7 it +as ma-e se1eral sectors of organi/e- retail out of anybo-yKs reac+. T+e Rig+t ;oint Mentures at t+e Rig+t Time 6n accor-ance 4it+ its e@perimentation policy Pantaloon +as formekey :oint 1entures 4it+ a number of popular names like Staples an- Starbucks. (it+ its first!mo1er a-1antage7 it acti1ely s+ut -oors for t+e competition by snapping up ma:or bran-s before ot+ers coul- get to t+em. /ersatile Retailin Rat+er t+an e@pan- as a mens4ear retailer alone7 PantaloonKs policy of compre+ensi1e e@perimentation +as gi1en it an important a-1antage . a 1ersatile retail presence. 0onsumers see Pantaloon as an e@clusi1e branretailer7 -iscount retailer7 specialty retailer an- foo- retailerO all at once. One of t+e reasons for t+is 1ersatility is t+at t+e bran- name +as not been force- on7 or e1en associate- 4it+ t+e -ifferent pro-ucts an- stores ot+er t+an t+e original mens4ear line. 6nstea-7 eac+ store an- pro-uct +as been gi1en its o4n i-entity an- presence. Pantaloon is essentially an organi/e- retailer in t+e guise of a large number an- 1ariety of unorgani/e- retailers. T+is again represents t+e companyKs uniBue un-erstan-ing of t+e 6n-ian scenario . consumers often feel t+reatene- in a monopolistic en1ironment7 an- are t+us allo4e- to c+oose bet4een multiple bran-s7 all of 4+ic+ essentially belong to t+e same parent SS Strengt+ening $ack 9n- OperationsO Supply!0+ain ) robust Supply c+ain ser1es as t+e backbone of a successful retail c+ain in t+e long!run. )lt+oug+ t+e company ignore- t+ese aspects in initial p+ases -ue to t+e ina-eBuacies in infrastructure7 it rig+tly fa1oree@perimentation o1er organi/ation. $ut to continue to gro4 at t+e pace it +aacBuire- in t+e first fe4 years7 it nee-e- to pay attention to its sourcing
2

net4ork7 transportation system an- ot+er logistics.. (+at Pantaloon is an- 4ill al4ays +a1e to impro1ise on is t+e absence of basic infrastructure like transportation an- regulation. T+e pace of e@pansion of t+e retail in-ustry is likely to outstrip t+at of -e1elopment of t+e countryKs infrastructure. Pantaloon 4ill +a1e to be inno1ati1e in -eci-ing as to +o4 it compensates for t+ese ina-eBuacies 4+ile efficiently managing its supply c+ain. MoneyO T+e Fltimate %ifferentiator Pantaloon +as t+e upper +an- as compare- to most potential foreign an-omestic competitors. Ho4e1er t+e same c+aracteristics t+at +a1e ma-e it an e@clusi1e an- 1ersatile retailer can pro1e to be a -isa-1antage. Muc+ of PantaloonKs competition comes from eit+er retail 1entures of ot+er large 6n-ian in-ustrial +ouses >Reliance Retail7 $irlaKs retail 1enture* or foreign retail giants >(al!Mart*. 6n ot+er 4or-s7 PantaloonKs competition is ric+7 1ery ric+. (+ile t+e competition may not +a1e ma-e inroa-s into t+e 6n-ian market as t+oroug+ly as Pantaloon7 it still +as enoug+ money to compensate for t+is s+ortcoming. S$))ary T+roug+ a carefully e@ecute- policy of compre+ensi1e multi format e@perimentation7 Pantaloon +as manage- to un-erstan- an- take a-1antage of t+e compresse- e1olution of t+e organi/e- 6n-ian retail in-ustry >mentioneearlier* to become t+e -ominant player. )s far as in-ustry kno4le-ge7 e@perience an- skill are concerne-7 Pantaloon 4it+ its -ream team is looking in goo- s+ape. No4 it is facing stiff competition t+at is financially better! eBuippe-. Ho4 it takes a-1antage of its e@isting resources7 accesses a--itional capital an- competes 4it+ its competitors in a race to -e1elop an efficient supply!c+ain 4ill -etermine t+e future of t+e company. (+ile t+e task is -aunting7 Pantaloon +as more lee4ay an- an enormous +ea-!start compare- to anyone else.

2#

C$sto)er S$r%ey
1. (+at is your nameT UUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU 2. )re you 4orking 7 stu-ent or Retre- >i.e. status*T UUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU 3. )re you a regular customer of PantaloonsT UUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU . (+y you prefer Pantallons to ot+er $ran-T UUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU #. (+at type of 0lot+es you buy from PantaloonsT UUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU ". )ccor-ing to you 4+at are t+e possiti1e points of PantaloonsT UUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU &. 3or +o4 many years you are using PantaloonsT UUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU '. )ny SuggetionsT UUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU

2"

0in'in 0ro) S$r%ey

6 took sur1ey of aroun- 22 customers of Pantaloons specially in $ori1ali area. 6 took sur1eys on 1arious -ays of t+e 4eek. 6 4as able to meet -ifferent age groups an- people from -ifferent financial status. 3orm t+e ans4ers gi1en by 1arious people it is foun- t+at youngsters are cra/y about t+e bran- HPantaloonsI. 6n youngsters specially college boys are more intereste- in buying bran-e- pro-ucts. )bout girls bet4een age group # to 12 years parents are intereste- to buy pro-ucts for girls because of -esigning an- fas+ion7 4+ic+ are rare an- -ifferent. Some parents clearly mentione- t+at t+ey prefer t+is bran- for ki-s because it is ma-e of cotton7 goo- for all seasons ansafe for skin. 0ollege girls an- 5a-ies +a1e bit -ifferent 1ie4 about t+e bran-. T+ey sai- t+ey are intereste- in t+e bran- for only casuals. No muc+ party!4ears are 4it+in t+ere bu-get. 6n-irectly t+ey sai- t+is is a costly bran-. 6f you put your bu-get you may get many more items to 4ear. Some of t+e 0ustomers ga1e a ne4 opinion t+at t+ey get -iscount coupons. So t+ey make yearly purc+ases of t+is bran- but t+ey are not 1ery muc+ fon- of pantaloons. T+e reasons being t+e pro-ucts are 1ery costly compare 4it+ ot+er bran-s. So e1eryone +as -ifferent intentions an- e@periences about same bran- because of t+eir age groups an- capacity to spen-.

2&

2'

Con&l$sion
T+roug+ t+e stu-y it is obser1e- t+at Pantaloons can be sai- an organi/ation 4+ere t+e P8s of marketing is taken seriously for t+e ma@imum profitability t+roug+ large range of pro-ucts. 0ompany +as -i1i-e- market into 3 groups7 6n-ia one 7 6n-ia t4o an- 6n-ia t+ree. 6n-ia one is t+e class 4+ic+ purc+ases t+e pro-uct 4it+ pleasure an- for self use. 6n-ia one class is about 1 L of t+e total population. 6n-ia t4o is t+e 4orking an- ser1icing class7 (+ic+ is 32L of t+e population 4+ic+ cannot affor- t+e bran- for self use. 6n-ia t+ree is a bare minimum class 4+ic+ is intereste- in buying t+e t+ings localy as t+ey are c+eap. Pantaloons 4is+ to con1ert 6n-ia t4o class an- 6n-ia t+ree class into t+eir customers. Promotional acti1ities for sales are taken seriously. $est Buality is t+eir moti1e. 5atest -e1elopment is Mr. )-itya $irla +as -eci-e- to in1est in t+is bran-7 So t+e bran- 4ill be more popular in near future.

2,

Bi1lio ra#!y

3or t+is pro:ect 6 +a1e taken references from 1arious 4eb sites. (ikipe-ia 444.pantaloons.co.in 3or sur1ey Vuestions )re aske- to Pantaloons customers.

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