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Table of Content

Particulars Page no.
1. Introduction to Retail Industry. 2
2. Evolution of Pantaloons. 6
3. Growth of Pantaloons. 8
4. Retail Strategy. 11
5. Process & support function. 19
6. Future Growth plan of the company. 23
7. Comparison with Pantaloons. 24
8. Conclusion. 26
9. Bibliography. 26
10. Questionnaire. 27

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Introduction of Retail Industry:-
Retail consists of the sale of goods or merchandise from a fixed location, such
as a department store, boutique or kiosk, or by mail, in small or individual lots
for direct consumption by the purchaser. Retailing may include subordinated
services, such as delivery. Purchasers may be individuals or businesses. In
commerce, a "retailer" buys goods or products in large quantities from
manufacturers or importers, either directly or through a wholesaler, and then
sells smaller quantities to the end-user. Retail establishments are often called
shops or stores. Retailers are at the end of the supply chain. Manufacturing
marketers see the process of retailing as a necessary part of their overall
distribution strategy. The term "retailer" is also applied where a service
provider services the needs of a large number of individuals, such as a public
utility, like electric power.
Shops may be on residential streets, shopping streets with few or no houses or
in a shopping mall. Shopping streets may be for pedestrians only. Sometimes a
shopping street has a partial or full roof to protect customers from
precipitation. Online retailing, a type of electronic commerce used for
business-to-consumer (B2C) transactions and mail order, are forms of non-
shop retailing.
Shopping generally refers to the act of buying products. Sometimes 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
(just looking, not buying) and browsing and does not always result in a
purchase.

One of Indias major retailers with presence in following two
segments:

Lifestyle Retailing - Pantaloons, Central, Fashion Station, aLL,
MeLa.
Value Retailing - Big Bazaar, Food Bazaar.

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Types of Retail Outlets:-
A marketplace is a location where goods and services are exchanged. The
traditional market square is a city square where traders set up stalls and buyers
browse the merchandise. This kind of market is very old, and countless such
markets are still in operation around the whole world.
In 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.
Retail is usually classified by type of products as follows:
Food products
Hard goods ("hardline retailers") - appliances, electronics, furniture,
sporting goods, etc.
Soft goods - clothing, apparel, and other fabrics.
There are the following types of retailers by marketing strategy:
Department stores - A very large stores offering a huge assortment of
"soft" and "hard goods; often bear a resemblance to a collection of
specialty stores. A retailer of such store carries variety of categories and
has broad assortment at average price. They offer considerable customer
service.
Discount stores It tend to offer a wide array of products and services,
but they compete mainly on price offers extensive assortment of
merchandise at affordable and cut-rate prices. Normally retailers sell
less fashion-oriented brands.
Supermarkets - It sell mostly food products.
Warehouse stores - Warehouses that offer low-cost, often high-quantity
goods piled on pallets or steel shelves; warehouse clubs charge a
membership fee.
Variety stores or "Dollar stores" - These offer extremely low-cost
goods, with limited selection;
Demographic - Retailers that aim at one particular segment (e.g., high-
end retailers focusing on wealthy individuals).
Mom-And-Pop (or Kirana Stores as they call them in India) - It is a
retail outlet that is owned and operated by individuals. The range of
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products are very selective and few in numbers. These stores are seen in
local community often are family-run businesses. The square feet area
of the store depends on the store holder.
Specialty stores - A typical specialty store gives attention to a particular
category and provides high level of service to the customers. A pet store
that specializes in selling dog food would be regarded as a specialty
store. However, branded stores also come under this format.
General store - A rural store that supplies the main needs for the local
community.
Convenience stores - It is essentially found in residential areas. They
provide limited amount of merchandise at more than average prices with
a speedy checkout. This store is ideal for emergency and immediate
purchases.
Hypermarkets - It provides variety and huge volumes of exclusive
merchandise at low margins. The operating cost is comparatively less
than other retail formats. A classic example is the Metro in Bangalore.
Supermarkets - It is a self service store consisting mainly of grocery
and limited products on non food items. They may adopt a Hi-Lo or an
EDLP strategy for pricing. The supermarkets can be anywhere between
20,000-40,000 square feet. Example: SPAR supermarket.
Malls - It has a range of retail shops at a single outlet. They endow with
products, food and entertainment under a roof.
Category killers or Category Specialist - By supplying wide
assortment in a single category for lower prices a retailer can "kill" that
category for other retailers. For few categories, such as electronics, the
products are displayed at the Centre of the store and sales person will be
available to address customer queries and give suggestions when
required. Other retail format stores are forced to reduce the prices if a
category specialist retail store is present in the vicinity.
E-Tailers - The customer can shop and order through internet and the
merchandise are dropped at the customer's doorstep. Here the retailers
use drop shipping technique. They accept the payment for the product
but the customer receives the product directly from the manufacturer or
a wholesaler. This format is ideal for customers who do not want to
travel to retail stores and are interested in home shopping. However it is
important for the customer to be wary about defective products and non
secure credit card transaction. Example: Amazon and E-bay.
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Vending Machines - This is an automated piece of equipment wherein
customers can drop in the money in machine and acquire the products.
For example: Soft drinks vending at Bangalore Airport.
Some stores take a no frills approach, while others are "mid-range" or "high
end", depending on what income level they target.
Other types of retail store include:
Automated Retail Automates retail stores are self service, robotic
kiosks located in airports, malls and grocery stores. The stores accept
credit cards and are usually open 24/7. Examples include Zoom Shops
and Red box.
Big-box stores Big-box stores encompass larger department, discount,
general merchandise, and warehouse stores.
Convenience store - a small store often with extended hours, stocking
everyday or roadside items.
General store - a store which sells most goods needed, typically in a
rural area.
Retailers can opt for a format as each provides different retail mix to its
customers based on their customer demographics, lifestyle and purchase
behavior. A good format will lend a hand to display products well and entice
the target customers to spawn sales.



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Evolution of Pantaloons:-

The Company was incorporated on October 12, 1987 as Manz Wear Private
Limited. The Company was converted into a public limited company on
September 20, 1991 and on September 25, 1992 the name was changed to
Pantaloons Fashions (India) Limited and in the same year the Company made
an initial public offering. We later changed our name to Pantaloons Retail
(India) Limited on July 7 1999.
The Equity Shares of the Company were first
listed on BSE, DSE and ASE, on July 30, 1992. Thereafter, the Equity Shares
were listed on the NSE on February 20, 2001. The company started his
operations by selling branded garments under Pantaloons, Bare and John
Miller brands. They set up our first menswear Pantaloons Shoppe Outlet in
1993. The business has grown from one store in Kolkata in 1997 occupying
an area of 8,000 Sq. ft. to 72 stores, apart from our 22 factory outlets located
in the multiple cities occupying an aggregate area of 21,07,608 Sq. ft. They
focus on the Lifestyle segment through 14 Pantaloons stores, 3 Central Malls,
2 aLL, 2 Fashion Station and 1 MeLa store. In the Value offering, they cater to
the mass through our 21Big Bazaar and 30 Food Bazaar outlets.

Objects of our Company our objects as contained in our Memorandum of
Association include:
To carry on the business of manufacturing, buying, selling, exchanging,
altering, importing, exporting, distributing or otherwise dealing in ready
made garments an hosiery made of cotton, silk, rayon, wool, nylon, man-
made fabrics, polyester, canvas, jute, leather, any other fabric coated with
any chemical or not, or other preparation and other fabric.
To carry on the business of manufacturing, processing, dyeing, bleaching,
buying, selling, exchanging, importing, exporting or otherwise dealing in
yarns and textiles made of cotton, silk, rayon, wool, nylon, man-made fibres,
polyester, canvas or any other substances.
To carry on trade or retail business in India through retail formats and
including but not limited to hyper markets, super markets, mega
stores/discount stores, cash & carry, departmental stores, shoppers plaza,
direct to home, phone order and mail order, catalogue, through internet and
other forms and multi level channels for all products an services, dealing in
all kinds of goods, materials and items including but not limited to food &
provisions, household goods, consumer durables, jewellery, home
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improvement products, foot wears, lug gages, books & stationery, health care
and beauty products, toys and music, computers & accessories, telecom
products, agri input products, furniture & furnishings, automobile &
accessories, and acquiring and running food, service and entertainment
centers including but not limited to multiplexes, cinemas, gaming centres,
amusement parks, restaurants and food courts and acquiring of land or
building on lease or freehold or any commercial or industrial or residential
building for running and management of retail business and to acquire flats,
offices and retail spaces for carrying on retail business and to sell them, lease
or sublet them and to undertake and execute civil, mechanical, electrical and
structural works contracts and sub contracts in all their respective branches
to carry on retailing business.




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Growth of pantaloons-
Pantaloons Retail (India) Limited, is Indias 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 16 million square feet of retail space, has over 1000 stores across 73 cities
in India and employs over 30,000 people.
The companys 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.

Future Value Retail Limited is a wholly owned subsidiary of Pantaloons
Retail (India) Limited. This entity has been created keeping in mind the
growth and the current size of the companys value retail business, led by its
format divisions, Big Bazaar and Food Bazaar.
The company operates 148 Big Bazaar stores, 169 Food Bazaar stores,
among other formats, in over 70 cities across the country, covering an
operational retail space of over 6 million square feet. As a focussed entity
driving the growth of the group's value retail business, Future Value Retail
Limited will continue to deliver more value to its customers, supply partners,
stakeholders and communities across the country and shape the growth of
modern retail in India.
A subsidiary company, Home Solutions Retail (India) Limited, operates Home
Town, a large-format home solutions store, Collection i, selling home furniture
products and e-Zone focused on catering to the consumer electronics segment.

Pantaloons Retail is the flagship company of Future Group, a business group
catering to the entire Indian consumption space.


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Why Pantaloons Retail India Ltd. ?
Pantaloons Retail is not just an organization - it is an institution, a Centre of
learning & development. We believe that knowledge is the only weapon at our
disposal and our quest for it is focused, systematic and unwavering.
At Pantaloons Retail, we take pride in challenging conventions and thinking
out of the box, in travelling on the road less traveled. Our corporate doctrine
Rewrite Rules, Retain Values is derived from this spirit.
Over the years, the company has accelerated growth through its ability to lead
change. A number of its pioneering concepts have now emerged as industry
standards. For instance, the company integrated backwards into garment
manufacturing even as it expanded its retail presence at the front end, well
before any other Indian retail company attempted this. It was the first to
introduce the concept of the retail departmental store for the entire family
through Pantaloons in 1997. The company was the first to launch a
hypermarket in India with Big Bazaar, a large discount store that it
commissioned in Kolkata in October 2001. And the company introduced the
country to the Food Bazaar, a unique 'bazaar' within a hypermarket, which was
launched in July 2002 in Mumbai. Embracing our leadership value, the
company launched aLL in July 2005 in Mumbai, making us the first retailer in
India to open a fashion store for plus size men and women.
Today pantaloons are the fastest growing retail company in India. The number
of stores is going to increase many folds year on year along with the new
formats coming up.
The way we work is distinctly "Pantaloons". Our courage to dream and to turn
our dreams into reality - that change peoples lives, is our biggest advantage.
Pantaloons is an invitation to join a place where there are no boundaries to
what you can achieve. It means never having to stop asking questions; it means
never having to stop raising the bar. It is an opportunity to take risks, and it is
this passion that makes our dreams a reality.
Come enter a world where we promise you good days and bad days, but never
a dull moment!

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Our Culture-
Passion for Retail is why we are here.
At Pantaloons Retail, Empowerment is what you acquire and Freedom at Work
is what you get. We believe our most valuable assets are our People. Young in
spirit, adventurous in action, with an average age of 27 years, our skilled &
qualified professionals work in an environment where change is the only
constant.

Powered by the desire to create path-breaking practices and held together by
values, work in this people intensive industry is driven by softer issues. In our
world, making a difference to Customers lives is a Passion and performance is
the key that makes it possible. Out of the Box thinking has become a way of
life at Pantaloons Retail and living with the change, a habit.
Leadership is a value that is followed by one and all at Pantaloons Retail.
Leadership is the quality that motivates us to never stop learning, stretching to
reach the next challenge, knowing that we will be rewarded along the way. In
the quest of creating an Indian model of retailing, Pantaloons Retail has taken
initiatives to launch many retail formats that have come to serve as a
benchmark in the industry. Believing in leadership has given us the optimism
to change and be successful at it. We do not predict the future, but create it.

At Pantaloons Retail you will get an opportunity to handle multiple
responsibilities, and therein, the grooming to play a larger role in the future.
Work is a unique mix of preserving our core Indian values and yet providing
customers with a service, on par with international standards.
At Pantaloons you will work with some of the brightest people from different
spheres of industry. We believe its a place where you can live your dreams
and pursue a career that reflects your skills and passions.
The Indian retail industry is the fifth largest in the world. Comprising of
organized and unorganized sectors, India retail industry is one of the fastest
growing industries in India, especially over the last few years. Though
initially, the retail industry in India was mostly unorganized, however with the
change of tastes and preferences of the consumers, the industry is getting more
popular these days and getting organized as well.
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Major Retailers in India-
Pantaloons:

Pantaloons is one of the biggest retailers in India with more than 1000 stores
across the country. Headquartered in Mumbai, it has more than 16 million sq.
ft retail space located across the country. It's growing at an enviable pace and
is expected to reach 30 million sq. ft by the year 2010. In 2001, Pantaloons
launched country's first hypermarket Big Bazaar. It has the following retail
segments:
Food & Grocery: Big Bazaar, Food Bazaar
Home Solutions: Hometown, Furniture Bazaar, Collection-i
Consumer Electronics: e-zone
Shoes: Shoe Factory
Books, Music & Gifts: Depot
Health & Beauty Care: Star, Sitara
E-tailing: Futurebazaar.com
Entertainment: Bowling Co.
Tata Group:
Tata group is another major player in Indian retail industry with its subsidiary
Trent, which operates Westside and Star India Bazaar. Established in 1998, it
also acquired the largest book and music retailer in India Landmark in 2005.
Trent owns over 4 lakh sq. ft retail space across the country.

RPG Group:
RPG Group is one of the earlier entrants in the Indian retail market, when it
came into food & grocery retailing in 1996 with its retail Foodworld stores.
Later it also opened the pharmacy and beauty care outlets Health & Glow.

Reliance:

Reliance is one of the biggest players in Indian retail industry. More than 300
Reliance Fresh stores and Reliance Mart are quite popular in the Indian retail
market. It's expecting its sales to reach ` 90,000 crores by 2010.

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Major Milestones-
1987
Company incorporated as Menz Wear Private Limited. Launch of
Pantaloons trouser, Indias first formal trouser brand.

1991
Launch of BARE, the Indian jeans brand.

1992
Initial public offer (IPO) was made in the month of May.

1994
The Pantaloons Shoppe exclusive menswear store in franchisee format
launched across the nation. The company starts the distribution of
branded garments through multi-brand retail outlets across the nation.

1995
John Miller Formal shirt brand launched.

1997
Company enters modern retail with the launch of the first 8000 square
feet store, Pantaloons in Kolkata.

2001
Three Big Bazaar stores launched within a span of 22 days in Kolkata,
Bangalore and Hyderabad.


2002
Food Bazaar, the supermarket chain is launched.
2004
Central - Indias first seamless mall is launched in Bangalore.
2005
Group moves beyond retail, acquires stakes in Galaxy Entertainment,
Indus League Clothing and Planet Retail. Sets up Indias first real estate
investment fund Kshitij to build a chain of shopping malls.
2006
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Future Capital Holdings, the companys financial is formed to manage
over $1.5 billion in real estate, private equity and retail infrastructure
funds. Plans forays into retailing of consumer finance products.
Home Town, a home building and improvement products retail chain is
launched along with consumer durables format, Ezone and furniture
chain, Furniture Bazaar.
Future Group enters into joint venture agreements to launch insurance
products with Italian insurance major, Generali. Forms joint ventures
with US office stationery retailer, Staples.

2007
Future Group crosses $1 billion turnover mark.
Specialized companies in retail media, logistics, IPR and brand
development and retail-led technology services become operational.
Pantaloons Retail wins the International Retailer of the Year at US-
based National Retail Federation convention in New York and
Emerging Retailer of the Year award at the World Retail Congress held
in Barcelona.
Futurebazaar.com becomes Indias most popular shopping portal.

2008
Future Capital Holdings becomes the second group company to make a
successful Initial Public Offering in the Indian capital markets. Big
Bazaar crosses the 100-store mark, marking one of the fastest ever
expansion of a hypermarket format anywhere in the world. Total
operational retail space crosses 10 million square feet mark.

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Pantaloons Competitive Strengths-
The following are our key strengths, which we believe, enable us to compete
in our business:

Brand Equity and early mover advantage

Pantaloons is one of Indias leading retailers with presence across multiple
formats and stores across large and medium cities across India. They
successfully introduced their hypermarket format through Big Bazaar,
introduced the concept of seamless malls through Central, launched Fashion
Station to offer fashion apparel and accessories to mass market buyers in a
theme based style, opened all an exclusive lifestyle store for plus size people
and continue to invest in new concepts and formats to capture a greater share
of the consumer wallet, either directly and through our strategic investments.

Entrepreneur led, professionally managed by an experienced team

Pantaloons have an experienced professional management team led by their
Promoter Mr. Kishore Biyani, who is one of the leading entrepreneurs in the
retail sector in the country and has received various awards over the years,
with the recent one being the Retail Face of the Year, 2005. Several of our
management team members have experience of managing other retail /
consumer facing organizations. They have thus been able to complement
rapid expansion with the ability to create adequate systems and processes.
The management team is complemented by a committed work force.
Pantaloons Human Resources policies aim to create an engaged and
motivated work force, which is essential for success in any service oriented
industry such as their owns.

Project execution and operations capabilities

Pantaloons have created a project team which enables us to identify and roll
out properties quickly and seamlessly. This has allowed us to grow from
561000 Sq. ft. in 2003 to 2107608 Sq. ft

Pantaloons operations team facilitates new stores to be opened quickly and
integrated into their system and provides their customers with the similar
experience across all the stores, and also enables their stores to quickly scale
up to meet growing customer requirements.
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Vast range of lifestyle and value retail products and services

Pantaloons merchandise ranges across apparel, accessories, food products,
home and kitchen products, dry and fresh groceries, consumer durables and
non durables with over 270000 SKUs, which are complemented by their
services offerings. Presence in both Lifestyle and Value retailing enables
them to cater to a large segment of the population, besides benefiting from
the synergies which exists between the two segments.

Pantaloons offer their customers a variety of national and international
brands as well as our Private Label brands under one roof.

Strong focus on systems and processes

Pantaloons focus on systems and processes. They are in the process of
revamping their current IT setup to implement more advanced applications.
Automated core transaction systems have been developed in house and have
evolved with their business. Existing business applications handle all store
operations such as billing, customer loyalty programmes, store inventory,
management. Back office processes are also computerized which support
procurement, supply chain logistics, ware house management and inventory
control. All the locations are connected through company-wide VPN (Virtual
Private Network).

Business planning happens through a high end planning tool called
Cognos Planning. Oracle financials form the backbone of accounting
functions and gives online real-time access to the Companys overall
financial position at any given point in time.

Pantaloons believe this will help them as we embark on their growth strategy
and enhance to reach with their customers and help us provide them a
consistent brand experience across all stores.
Strong distribution and logistics network and supply chain

Pantaloons have created a strong distribution and logistics network, with
their 13 Distribution Centre covering 260000 Sq. ft, handling over 100000
SKUs, and working 24 hours a day and 7 days a week.

The distribution and logistics set up is networked and are on line allowing
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them to deliver merchandise to the store within 24 hours of receipt /
generation of auto replenishment order, which has helped them optimize in-
store availability of merchandise. They believe their existing Distribution
Centres, which have been designed to scale up, will be able to meet their
growth requirements as we expand the number of all stores.

The above initiatives have helped them in improving the efficiencies of
their supply chain, which they believe is critical for any retailer. These aim
at meeting the conflicting requirements of reducing their inventory whilst
ensuring availability of products at all stores as per customer needs, as
well as reducing our operational costs.

Large base of loyal customers

Pantaloons had 42280682 customer entries in our stores in the year ended
June 30, 2008. They believe that the emotional connect that they have been
able to create good relationship with their customers through service offering
and special promotions has helped them convert many of them into loyal
customers.



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Pantaloons Strategy-

Pantaloons intend to maintain and enhance their position as a leading retail
entity through continued focus on the Indian market and investing further in
their competitive strengths to grow their business. The key elements of
Pantaloons business strategy include:

Increasing offerings to meet a higher portion of the consumer
spend
Pantaloons intend enhancing there share of the customers monthly spend by
launching new formats or adding categories to their existing product range.
They intend to implement this by launching such formats directly or by
way of strategic tie ups in areas where they have the opportunity to tie
up with an appropriate partner.

Increasing penetration in existing cities and expanding their reach
across the country
Increasing their penetration in existing cities with a larger number of stores,
increasingly of larger size, will enable us to penetrate into new catchment
areas within these cities and optimize their infrastructure.
Enhancing they reach to cover additional cities; will enable them to reach out
to a larger population. This will help to provide a platform to domestic and
international brands wanting to reach out to domestic consumers with the
same profile as their customers.

Enhancing merchandise width by adding product categories
Consumers tastes are shifting and the propensity to spend on new categories
of merchandise is increasing along with needs for new services.

Pantaloons focus will be to add on such new categories in their stores along
with developing existing categories to increase their share of the spend of not
only existing customers, but also acquire new customers.


Introducing new brands and developing more Private Labels to
offer a better depth in each category
Pantaloons continuously focus on enhancing the depth and width of their
merchandise. Their Private Label and private brands initiative is part of such
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focus and offers us a differentiating factor as compared to their competition
at the same time helps us enhance margins.
They had a tie up with Popeye and Disney wherein they are their exclusive
retail licensee for India. They continue to evaluate such opportunities for tie
ups with national and international brands, which can be introduced in India
through their stores.

Utilising economies of scale as they grow in size and expand their
reach
Pantaloons believe that their existing corporate infrastructure and software
systems have been designed for a higher scale of operations than their
current size, and can help them grow with out the need to significantly
increase costs.

They are having in place their distribution and logistics infrastructure,
which can handle larger business volumes at marginal addition to costs.
Higher business volumes will also improve their negotiating powers and help
us get further economies of scale in their buying with opportunities of
incremental margins.

Enhancin operational efficiencies through systems and processes
They are having a consistent focus on enhancing their operational
efficiencies and monitor key operational parameters on an ongoing basis
using concepts such as gross margin return on floor space, gross margin
return on labour and gross margin return on inventory to improve their
productivity on space, labour and inventory.

Pantaloons benchmark of the stores on performance parameters on a
historical as well as on a comparable basis to seek areas for improvement to
reduce their operating costs and enhance our productivity levels.

Enhancing human capital
The aim at recruiting the best talent available in a cross section of industries,
identifying fresh talent, grounding them in the value system and providing
opportunities for growth. They follow a Balanced Score Card approach
which deals with the individual aspirations/goals and links them to the
overall company strategy.

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Processes and support functions
(1)Category Management: Pantaloons have employed the concept of
category management in our day-to-day merchandising function as against
the traditional brand management merchandising practice followed by most
retailers. Category managers look at sales and margins of each brand in a
category. The whole idea of category management is to create products across
length and breadth of a category at different price points, fabrics, design,
shape, seasons, colour and size.

Functions under category management can be broken into:

Merchandising
The Category manager develop a merchandising strategy for the
category taking into consideration customer profile, classification,
resource structure, vendors, fashion trends, items and price points.
The category manager visit stores regularly to check assortments of
merchandise displays, stock levels and old season merchandise, consult
with team leaders and sales people on problems and suggestions.

Sourcing / Purchasing
The category manager controls quantities to be purchased as per
the sales forecast. The purchasing is done based on range plan made
for the season and re-orders been placed based on sales and stock
levels. The Category Manager reviews the actual sales versus planned
sales and source the material based on feedback from storefront.

Logistics
Category manager ensure that goods are dispatched in right
quantities and at right time to reach stores with sufficient time in hand
to promptly cater to customer demands.

Promotions
Category manager plans promotions / brand or product building
schemes. The category manager identifies slow movers and also
disposal plan for the same.

(2)Visual Merchandising-
In modern retail, we believe that visual merchandising is key to encourage a
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customer to purchase the products. Visual merchandising involves store
window, store directories, in- posters, unit top poster / visual, placement of
products, highlighting products in the store. Pantaloons use visual
merchandising skills to present their merchandise at its best, in order to
appeal to the customer. This is a critical in store activity with their visual
merchandising team deciding on the theme as well as the manner in which the
merchandise is proposed to be displayed across their stores nation wide.

(3)Supply Chain management-
Availability of products at the right time and at affordable cost is of
utmost importance in retail business. Supply Chain management ensures
this. The diverse requirements of different retail formats in which they
operate requires a model which is flexible enough to meet the diverse
requirement of their various formats; incase of Pantaloons- the time to market
is of paramount importance whereas for Big Bazaar the cost to market is
crucial. Keeping this in mind, we have created their own supply chain and
logistics model. The Supply Chain function involves vendor management,
quality assurance and transportation.

The quality assurance function has been strengthened with the
implementation of internal quality control measures. Quality hubs have been
established at zonal level with a view to proactively prevent quality defects.

They have one central warehouse and 12 regional warehouses. These
warehouses are located in Pune, Delhi, Ghaziabad, Nasik, Ahmedabad,
Bangalore, Hyderabad, Gurgaon, Mumbai, Nagpur and Kolkata.

In case of lifestyle retailing, the entire apparel stock is generally delivered
to the central warehouse. The central warehouse then services individual
stores. In addition to central buying, there is restricted local buying. A unique
aspect of the supply chain model is the factory outlet. Its the last level of
supply chain model which ensures that slow-moving merchandise are
disposed off on a regular basis.

While pantaloons outsource intercity transport of goods to third parties, intra
city movement form warehouse to the stores is handled by the own fleet of
vehicles. For lifestyle retail formats, they use the services of logistic solution
providers in order to deliver products on time to the stores.
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Pantaloons Corporate Functions

1. Information Technology
2. Human Resources
3. Retail Information System
4. Internal Controls
5. Measurement of Customer Satisfaction


1. Information Technology
A key element of the corporate functions is the Information Technology
strategy and set up. They are in the process of revamping their systems to
address the growing demands of the customer and to have a seamless flow of
activities.

The IT vision is to address multiple aspects like connectivity, infrastructure,
security, real time information and tools for financial management amongst
others. The IT strategy has been framed keeping in mind the growth in
formats, chains, product categories and locations.

The most rudimentary issue is that of connectivity, it means ensuring
seamless flow of data to the head office from regional offices, zonal centre,
stores and warehouses. All locations are connected through company wide
virtual private network, stock and sales data from each store is consolidated
on a daily basis allowing close monitoring and quick decision-making.

Strategic Direction
The organization is in the midst of upgrading the IT set up with a strategic
relationship with SAP, business software solutions provider. They intend to
implement my SAP Business Suite, SAP Advanced Planning Tool for
Merchandise and Assortment Planning and SAP Apparel and Footwear
Solutions.

The organization also in the process of installing Closed Circuit Television at
stores (CCTV) , using the virtual private planning, live feeds from the
CCTVs will be relayed to the head office and the zones. This will
compliment the video conferencing facility that already exists between the
stores and the head office. To enable quicker decision-making and reduce the
Page 22 of 27

lag time, different needs of different users are being addressed through the
creation of a personalized dash-board(a graphical personalised interface
through which one can access information available in the central database).
Individual users will be able to receive alerts based on their profiles and
categories on various aspects related to stock, sales etc. Graphs pertaining to
key performance areas will be generated enabling better control and informed
decision-making.

2. Human Resource
In a business where individuals comprise the principal asset, the structure
of the people pyramid influences the quality of knowledge captured, the
speed with which decisions are made and the morale of the organization.
Human Resource is one of the critical support functions and forms another
key element of the corporate backbone. Pantaloons have more than 8000
employees as a very young and energetic organization with average
employee age being 30 years.

They believe that service is the core philosophy and people are the most
important resources. The organization attempt has always been to create an
environment where the employees feel pride of being called
Pantaloonians.

The Pantaloons People Management System
Pantaloons People management system is built on 5 pillars of people based
growth:
Culture Building.
Performance Management through Balanced Score Card.
People Processes.
Management Processes.
Leadership Excellence.

Organization Structure
The organization is headed by our Managing Director. The employees
follow an inverse pyramid structure; as a result decisions are taken closest
to the point of customer action. Sales executive are encouraged to think
customer first. They are empowered to run their respective departments
like small business owners.

Page 23 of 27

Future Growth of plan of the Pantaloons-
The retail industry in India is currently growing at a great pace and is expected
to go up to US$ 833 billion by the year 2013. It is further expected to reach
US$ 1.3 trillion by the year 2018 at a CAGR of 10%. As the country has got a
high growth rates, the consumer spending has also gone up and is also
expected to go up further in the future. In the last four year, the consumer
spending in India climbed up to 75%. As a result, the India retail industry is
expected to grow further in the future days. By the year 2013, the organized
sector is also expected to grow at a CAGR of 40%.
Future Group announces its plan to double the number of its flagship multi-
brand Pantaloons stores in the next three-four years. The expansion of new
stores would embark on an image makeover for the apparel and accessories
chain to target youngsters. Group Company Pantaloons Retail India, which
opened its 50th store spread across 31,109 sq ft in New Delhi, plans to add
another 50 Pantaloons stores across metros and smaller cities. Such landmark
expansion plan of the retail chain would be a new sunshine opportunity for the
signage companies dealing with in-store displays and others.
The retail business is expected to end 2010 with revenues of Rs 14,000 crore,
followed by the FMCG and consumer durables entity with Rs 1,800-2,000
crore and the fashion venture with Rs. 2,000-2,200 crore, according to the
Future Groups own projections.
Once the restructuring is complete, there could be a second round of changes,
though this depends on the success of the groups talks with a foreign retailer
for a JV. If they indeed succeed, Pantaloons Retail will spin off two of its
biggest revenue grossers in retailBig Bazaar and Food Bazaar, into a new
entity, to be called Future Value Retail. The two formats constitute over 55%
of the turnover of the countrys biggest retailer.
Pantaloon Retail is currently believed to be in talks with Carrefour, the worlds
second-largest French supermarket group, for a JV in India.
Besides Big Bazaar, Future runs formats such as Food Bazaar, KBs Fair Price
shops, Pantaloons, Central, Home Town, eZone, Aadhaar and Brand Factory.
Group officials said sales from their own private FMCG brands are
comparable to a mid-rung Indian FMCG company.
Page 24 of 27

Store profile and information on Sales Promotion Activities
Store Name Pantaloons Central Reliance Tr. Globus Westside
Format
Type
Multibrand Multibrand

Multibrand


Exclusive
Brand
Exclusive
Tata Brand
Positioning Family Store Family Store

Family store Style &
Affordability
Style &
Affordability
Floor Size 18000 sq ft 150000 sq ft


60000 sq ft 20000 sq ft 40000 sq ft
Location MG. Road,
Indore pose
locality

YN Road, Indore

AB Road,
Indore
AB Road,
Indore
Race Course
Road, Indore
Categories Apparel &
accessories
for
men, women
& children
Apparel &
accessories for
men, women &
children, apparels
& Accessories


Apparel &
accessories for
men, women &
children,
apparels &
Accessories
Stylish
Cloths for
men &
women &
accessories
Stylized
clothes,
footwear &
accessories
# of skus 45000 100000


60000 NA NA
# of
Suppliers
20-25 50-60


35-45 8-15 NA
Avg. billing
per
Customer
1800 2000-2500


1500 800-1000 199-1500
Average
Footfalls
800-1000on
weekday &
1500-2500
on weekends
400-800 on
weekday & 1000-
1200 on
weekends


650-800 on
weekdays &
1000-1200 on
weekends
200-400 on
weekdays &
500-700 on
weekends
100-150 on
weekdays &
200-400 on
weekends


Page 25 of 27

Sales Promotions

End of
Season

Yes Yes Yes Yes Yes
Festive
Promotions
e.g. Diwali,
Christmas


Yes Yes Yes No Yes
Loyalty
Card
Programme


Yes No Yes Yes Yes
Special
Promotion
(events)

Yes Yes Yes No Yes
Joint
Promotion


No No No No No
Media
Used


Hording, Print,
Electronic, In
store(SMS,
Email)
Hording, Print,
Electronic, In
store(SMS,
Email)
Hording, In
store,
electronic
In store,
Hording
Print,
Hording, In
store


Promotion
Type


Price off,
Exchange
offer, Free
Gifts,
Discounts
Price off,
contests,
combo
offer,
discounts
Price off,
contests,
combo
offer,
discounts
Discounts,
Combo offers
Cause
Related, gift
vouchers,
discounts,
combo offers
Evolution
of
Promotion


Sales,
Quarterly
Profit
Sales,
Quarterly
Profit
Sales,
Quarterly
Profit
Sales, Average
Bill Size,
Conversion
Sales,
Quarterly
Profit





Page 26 of 27


Conclusion

Pantaloons Retail (India) Ltd is a company where it strives for lifestyle and
value through its products and services. Through the study, it is observed
that Pantaloons can be said an organization where the Ps of marketing is
taken seriously for the maximum profitability through large range of
products, promotional activities for the company through newspapers ,
magazines , internet ,banners and posters and a solid sales organization
monitoring that the Ps are worked effectively. The store has been well
maintained in accordance with the latest demands of the consumers and
through all these strategies. Pantaloons ensures repeated customer
patronage.

Bibliography-

Marketing Management Philip Kotler

www.pantaloonretail.in

http://en.wikipedia.org/wiki/Pantaloon

www.pantaloon.com

www.future-group.com

www.riedelresearch.com/.../34_Pantaloon%20Retail%20India%20Ltd%2004S
ep2008

WWW.INDIANREALTYNEWS.COM

Page 27 of 27

Questionnaire-


Name - Gender- Male/Female
Contact No.
Age Group-
a) 15-25yrs b) 26-35yrs c)36-45yrs d) above 45yrs

. Q1. Which Retail store is more comfortable for your shopping-
(a)Pantaloons (b) Central (c) Reliance Trend (d) Globus (e) Westside
Q2. Which store products/merchandise collection available is more trendy or
latest?
(a)Pantaloons (b) Central (c) Reliance Trend (d) Globus (e) Westside

Q3. Which retail stores coordination of staff members at more comfortable
for you?
(a)Pantaloons (b) Central (c) Reliance Trend (d) Globus (e) Westside
Q4. From where you heard about the sale available at pantaloons store?
(a)TV (b)Radio (c) Newspapers (d) Hording (5) others.

Q.5 Are you happy with the available offers at the store
(a)Satisfied (b) Highly Satisfied (c) Dissatisfy

Q.6 you prefer to shopping with us due to-
(a) Attractive offers (b) High Quality (c) Variety (d) Better Assistant

Q.7 on which time you prefer for shopping apparels?
(a) During offers (b) fresh stock (c) on festivals (d) anytime

Q.8 which store is having the best ambience in Indore?
(a)Pantaloons (b) Central (c) Reliance trend (d) Globus (e) Westside


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