Pantaloon Retail- Strategic Mgmt

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A Project

On

Analysis of various strategies adopted in Organized Retail Sector

Of

Strategic Management

Submitted to

UNIVERSITY OF MUMBAI

Submitted By

MANDAR A. BHOIR

Roll No. 65

MASTERS IN COMMERCE - MANAGEMENT (Sem I)

UNDER THE GUIDANCE OF:

Prof. Sandeep Sahu

RIZVI COLLEGE OF ARTS, SCIENCE,COMMERCE

Bandra (West), Mumbai

Academic Year

2013-2014


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DECLARATION

Myself, BhoirMandar Ashok of Rizvi College of Arts, Science & Commerce

studying M.COM-Sem-I hereby declare that I have completed this project on Analysis of

various strategies adopted in Organized Retail Sector in Academic Year 2013- 2014.

The information submitted in this project is true & original to the best of my

knowledge.

Date-

Place-MUMBAI

(BHOIR MANDAR ASHOK)


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ACKNOWLEDGMENT

I owe a great many thanks to a great many people who helped and supported me

during this project.

My deepest thanks to the Guide of this project Professor Sandeep Sahu, for

guiding and correcting various documents of mine with attention and care. He has taken

pain to go through the project and make necessary correction as and when needed.

I would also thank my Institution and my faculty members without whom this

project would have been a distant reality. I also extend my heartfelt thanks to my family

and well-wishers.


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INDEX

Chapter 1 - Introduction and Methodology

1. Introduction

2. Research Methodology

3. Executive Summary

4. What is Organized Retail?

5. Global Scenario of organized retail

Chapter 2- Organized Retail in India

Chapter 3- Key Challenges

1.

Economic Slowdown

2. Location

3. Merchandise

4. Pricing

5. Target Audience

6. Scale of Operation

7. The Retail Environment

8.

Disorganized supply chain network9. Technology hurdles

10. Lack of utilities

11. Location planning

12. Unproductive human resource

13. The presence of a grey market

Chapter 4- Strategies of Pantaloons Retail Limited

1. Introduction- Pantaloons

2. SWOT Analysis

3. Strategies of Pantaloons

Conclusion

Bibliography


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CHAPTER 1

INTRODUCTION AND METHODOLOGY

INTRODUCTION:

Retail Sector in Indiais one of the pillars of its economy and accounts for 14 to

15 percent of its GDP.TheIndianretail market is estimated to beUS$ 450billion and one

of the top five retail markets in the world by economic value. India is one of the fastest

growing retail markets in the world, with 1.2 billion people.

As of 2013, India's retailing industry was essentially owner manned small shops.In 2010, larger formatconvenience stores and supermarkets accounted for about 4 percent

of the industry, and these were present only in large urban centers. India's retail

andlogistics industry employs about 40 million Indians (3.3% of Indian population).

Until 2011, Indian central government deniedforeign direct investment (FDI) in

multi-brand retail, forbidding foreign groups from any ownership insupermarkets,

convenience stores or any retail outlets. Even single-brand retail was limited to 51%

ownership and a bureaucratic process.

In November 2011, India's central government announced retail reforms for both multi-

brand stores and single-brand stores. These market reforms paved the way for retail

innovation and competition with multi-brand retailers such

asWalmart,Carrefour andTesco, as well single brand majors such asIKEA,Nike,

andApple.

On 7 December 2012, the Federal Government of India allowed 51% FDI in multi-brand

retail in India. The government managed to get the approval of multi-brand retail in the
http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Retailhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/1000000000_(number)http://en.wikipedia.org/wiki/Convenience_storehttp://en.wikipedia.org/wiki/Logisticshttp://en.wikipedia.org/wiki/Foreign_direct_investmenthttp://en.wikipedia.org/wiki/Supermarkethttp://en.wikipedia.org/wiki/Walmarthttp://en.wikipedia.org/wiki/Carrefourhttp://en.wikipedia.org/wiki/Tescohttp://en.wikipedia.org/wiki/IKEAhttp://en.wikipedia.org/wiki/Nike,_Inc.http://en.wikipedia.org/wiki/Apple_Inc.http://en.wikipedia.org/wiki/Apple_Inc.http://en.wikipedia.org/wiki/Nike,_Inc.http://en.wikipedia.org/wiki/IKEAhttp://en.wikipedia.org/wiki/Tescohttp://en.wikipedia.org/wiki/Carrefourhttp://en.wikipedia.org/wiki/Walmarthttp://en.wikipedia.org/wiki/Supermarkethttp://en.wikipedia.org/wiki/Foreign_direct_investmenthttp://en.wikipedia.org/wiki/Logisticshttp://en.wikipedia.org/wiki/Convenience_storehttp://en.wikipedia.org/wiki/1000000000_(number)http://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Retailhttp://en.wikipedia.org/wiki/India


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parliament despite heavy uproar from the opposition.Some states will allow foreign

supermarkets likeWalmart,TescoandCarrefour to open while other states will not.

RESEARCH METHODOLOGY

Primary Data:

It will be collected with the help of Questionnaire and Survey

Research

Secondary Data:

It will be collected with the help of Internet, Books, Journal,

Newspaper and Magazines Research Papers related to Organized Retail Sector.
http://en.wikipedia.org/wiki/Walmarthttp://en.wikipedia.org/wiki/Tescohttp://en.wikipedia.org/wiki/Carrefourhttp://en.wikipedia.org/wiki/Carrefourhttp://en.wikipedia.org/wiki/Tescohttp://en.wikipedia.org/wiki/Walmart


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Executive Summary

The real GDP is expected to grow at 8-10 per cent per annum in the next five

years. As a result, the consuming class with annual household incomes above Rs. 90,000

is expected to rise from about 370 million in 2006-07 to 620 million in 2011-12.

Consequently, the retail business in India is estimated to grow at 13 per cent annually

from US$ 322 billion in 2006-07 to US$ 590 billion in 2011-12. The study shows:

The unorganized retail sector is expected to grow at about 10 per cent per annum with

sales rising from US$ 309 billion in 2006-07 to US$ 496 billion in 2011-12.

Given the relatively weak financial state of unorganized retailers, and thePhysical space

constraints on their expansion prospects, this sector alone willnot be able to meet the

growing demand for retail.

Hence, organized retail which now constitutes a small four per cent of total retail sector

is likely to grow at a much faster pace of 45-50 per cent per annum and quadruple its share

in total retail trade to 16 per cent by 2011-12.

This represents a positive sum game in which both unorganized and organized retail not

only coexist but also grow substantially in size.

The majority of unorganized retailers surveyed in this study, indicated their preference to

continue in the business and compete rather than exit.


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What is Organized Retail?

The Indian Retail industry is divided into the organized and the unorganized

sector. The unorganized sector mainly includes the local Kirana store and the mom and

pop stores. The organised sector includes the big companies like the RPG, Pantaloons and

the foreign players like addidas, Reebok, McDonalds and Pizza hut.

Most of the Indian Retail industry is characterized by an unorganized market but

the growth of the organised sector in the past few years has been incredible. Noting that

organised retail market is growing at the rate of 40%, Northbridge Capital said that faster

growth rate would be maintained in the next three years, especially with the entry of major

global players and Indian corporate houses.

The organized retail in India has been divided into various categories like

Jewellery and Watches, Catering and services, Furniture & furnishing, Footwear,

Consumer durables, food & grocery, Clothing & Textile, Mobile handsets, Books, music

& gifts etc. The market share categorization is Although there are abundant factors that

drives retailing in India but the challenges for the retailers are also numerous.


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Global Scenario of organized retail

Retail stores constitute 20% of US GDP & are the 3 rd largest employer segment

in USA. China on the other hand has attracted several global retailers in recent

times. Retail sector employs 7% of the population in China. Major retailers like Wal-

Mart & Carrefour have already entered the Chinese market. In the year 2003, Wal-Mart &

Carrefour had sales of US $ 70.4 Crore& US $ 160 Crore respectively.

The global retail industry has traveled a long way from a small beginning to an

industry where the world wide retail sales is valued at $ 7 x 10 5 Crore. The top 200

retailers alone accounts for 30 % of the worldwide demand. Retail turnover in the EU is

approximately Euros 2,00,000 Crore and the sector average growth is showing an upward

pattern. The Asian economies (excluding Japan) are expected to grow at 6% consistently

till 2005-06.

On the global Retail stage, little has remained same over the last

decade. One of the few similarities with today is that Wal-Mart was ranked the top

retailer in the world then & it still holds that distinction. Other than Wal-Mart's

dominance, there's a little about today's environment that looks like the mid-1990s.

The global economy has changed, consumer demand has shifted & retailers' operating

systems today are infused with far more technology than was the case six years ago.


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CHAPTER 2

Organized retail in India

The Indian organized retail industry is valued at about $300 billion and is expected

to grow to $427 billion in 2010 and $637 billion in 2015. Retail Market India today is the

second fastest growing economy of the world after China. Indian economy will grow

larger than Britain's by 2022, Japan by 2032 and by 2050 will become the second largest

economy of the world after China. Indian market has become the most lucrative marketfor retail investment in the world. Some of the factors which have contributed to the

growth of organized retail in India are: increase in the purchasing power of Indians, rapid

urbanization, increase in the number of working women, large number of working young

population.

Today people look for better quality product at cheap rate, better service, better

ambience for shopping and better shopping experience. Organized retail promises to

provide all these. The Industry The various formats of organized retail are: Hypermarkets:

They store products of multiple brands comprising food items and non-food items.

Supermarkets: These are self service stores selling food and personal care products. E.g.:

Subhiksha. Departmental stores: Retails branded goods in non-food categories. E.g.:

Shoppers Stop. Specialty Chains : These stores focuses on a branded product or a product

category. E.g.: Bata Convenience stores: These are small self service outlet located in

crowded urban area. Malls: A huge enclosures which has different retail formats. e.g.:

Nucleus Key players in organised retail are: Pantaloon Retail: It was started by Kishore

Biyani- India's largest retailer. The various formats of pantaloon retail are: Pantaloons, Big

Bazaar, Food Bazaar, Central etc. RPG Retail: Its various formats are: Food World, Music

World, Health & Glow, Spencer's Tata Retail (known as TRENT): Its various formats are:


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CromaWestsideStar India Bazaar K Raheja Corp. Group: Shoppers' Stop, Hypercity,

Crossword, InOrbit Mall Reliance Retail Job Opportunities: Retail accounts for 8%

employment in the country. In the next 2 years the sector is set to provide 2.5 lakh job

opportunities.

The types of jobs available in retail are: Retail sales, Store management, Stock

management, Supply chain management, warehousing and operations. In organised retail

the frontliners like shop floor executives, sales executives etc are in great demand. The

frontliners have to directly communicate with the customers. The other jobs are for store

managers, store planners, cashiers, stockists, logistics, operations, distribution, marketing,

finance, HR, IT etc. Good communication skill, high interpersonal skills, convincing

power, positive attitude and ability to handle stress is a prerequisite for these jobs. Fresh

graduates who want to make career in retail can easily fill these jobs. Stock planners,

Operations, logistics, cashiers have to deal with the numbers daily. Besides having good

communication skills they also require numerical and analytical ability.

Bharati retail is planning to invest $2.5bn by 2015 which will create employment

opportunity for 60,000 people. Bharti Resources, a learning and development solutions

subsidiary of Bharti Group, has tied-up with GlobalRetailSchool (GRS) to groom

graduates and undergraduates in retail management and other sectors. They will provide 3-

month and 6-month certificate courses for Rs 30,000 and Rs 15,000 respectively in Retail

Sales and Marketing, Retail Visual Merchandising and Space Planning, Retail Supply

Chain Management, for creating frontend manpower professionals. Indeed it is a fact that

organised retail in India is all set to grow at an stupendous pace

Indian organized retail market is growing at a fast pace due to the boom in the

India retail industry. In 2005, the retail industry in India amounted to Rs 10,000 billion


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accounting for about 10% to the country's GDP. The organized retail market in India out

of this total market accounted for Rs 350 billion which is about 3.5% of the total revenues.

Retail market in the Indian organized sector is expected to cross Rs 1000 billion by

2010. Traditionally the retail industry in India was largely unorganized, comprising of

drug stores, medium, and small grocery stores. Most of the organized retailing in India

have started recently and is concentrating mainly in metropolitan cities.

The growth in the Indian organized retail market is mainly due to the change in the

consumers behavior. This change has come in the consumer due to increased income,

changing lifestyles, and patterns of demography which are favorable. Now the consumer

wants to shop at a place where he can get food, entertainment, and shopping all under one

roof. This has given Indian organized retail market a major boost.

Retail market in the organized sector in India is growing can be seen from the fact

that 1500 supermarkets, 325 departmental stores, and 300 new malls are being built. Many

Indian companies are entering the Indian retail market which is giving Indian organized

retail market a boost. One such company is the Reliance Industries Limited. It plans to

invest US$ 6 billion in the Indian retail market by opening 1000 hypermarkets and 1500

supermarkets.

Pantaloons is another Indian company which plans to increase its retail space to 30

million square feet with an investment of US$ 1 billion. Bharti Telecoms an Indian

company is in talks with Tesco a global giant for a 750 million joint venture. A number

of global retail giants such as Walmart, Carrefour, and Metro AG are also planning to set

up shop in India. Indian organized retail market will definitely grow as a result of all this

investments.

Indian organized retail market is increasing and for this growth to continue the

Indian retailers as well as government must make a combined effort.


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CHAPTER 3

KEY CHALLENGES:

1) ECONOMIC SLOWDOWN:

With economic slowdown hitting most of the economies, the organized retail

sector in India is also witnessing a hold back. Most of the major retail giants have either

postponed their ideas of expansion and are afraid of undertaking any new big projects.

Although most of the companies have already taken an initiative to make their way in the

rural market and others are also planning to do the same but due to the economic turmoil,

this effort seems to have taken a back seat.

2) LOCATION:

"Right Place, Right choice"

Location is the most important ingredient for any business that relies on customers, and is

typically the prime consideration in a customers store choice. Locations decisions are

harder to change because retailers have to either make sustainable investments to buy and

develop real estate or commit to long term lease with developers. When formulating

decision about where to locate, the retailer must refer to the strategic plan:

* Investigate alternative trading areas.

* Determine the type of desirable store location

* Evaluate alternative specific store sites


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3) MERCHANDISE:

The primary goal of the most retailers is to sell the right kind of merchandise and nothing

is more central to the strategic thrust of the retailing firm. Merchandising consists of

activities involved in acquiring particular goods and services and making them available at

a place, time and quantity that enable the retailer to reach its goals. Merchandising is

perhaps, the most important function for any retail organization, as it decides what finally

goes on shelf of the store.

4) PRICING:

Pricing is a crucial strategic variable due to its direct relationship with a firm's goal and its

interaction with other retailing elements. The importance of pricing decisions is growing

because today's customers are looking for good value when they buy merchandise and

services. Price is the easiest and quickest variable to change.

5) TARGET AUDIENCE:

"Consumer the prime mover"

"Consumer Pull", however, seems to be the most important driving factor behind the

sustenance of the industry. The purchasing power of the customers has increased to a great

extent, with the influencing the retail industry to a great extent, a variety of other factors

also seem to fuel the retailing boom.


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6) SCALE OF OPERATIONS:

Scale of operations includes all the supply chain activities, which are carried out in the

business. It is one of the challenges that the Indian retailers are facing. The cost of

business operations is very high in India.

7) The Retail Environment:-

The foreign retailers who considered India as a gold mine, till a few years back,

have now started rethinking about their plans for entering the market. The ever increasing

terrorist activities have added on to the economic slowdown. First of all, the government

regulations on the foreign entry in retail (51 % in single brand retailing and 100 % in cash

and carry format) along with the economic slow downs and terrorist activities has forced

most of the companies to reconsider about their plans of entering Indian retail industry.

8) Disorganized supply chain network:

Along with economic slow down, a disorganized supply chain is also standing

in the way of organised players to tap the rural markets and expand their operations. An

efficient supply chain network enables the company to reduce the cost as well as manage

the demand of its customer. Without an efficient supply chain, it becomes almost

impossible for these companies to provide better product assortments across the country

effectively with minimum cost. Therefore, an under developed supply chain network has

also been hindering the scaling of the retail operations since a long time.


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9) Technology hurdles: -

.An effective IT system is very crucial for the success of the supply chain which supports

the retailing operations but as compared to the developed countries, India is incompetent

in installing and managing an effective IT system especially in the rural areas which has

been a trouble for the Indian Retailers since a long time.

10) Lack of utilities:

Most of the metro cities are equipped with all the facilities and requirements of the

modern businesses but the inadequate utilities like transport system, power,

telecommunication, water, internet facilities etc. in the other part of the countries has also

pushed the retailers one step back in sustaining the retail operations in a widespread

geographical location. Although relevant steps have been taken over the past few years to

make these facilities available in all parts of the country but this endeavor needs an

acceleration to match the growth of the zooming industry.

11) Location planning:

Location is considered as one of the most important ingredients for the success of a retail

business. But because of the fluctuating cost of the real estate in the country, a higher

stamp duty as compared to the other countries and the zoning laws, a dilemma has been

created over the land use for the commercial purposes. The Retailers are finding it very

difficult to first of all select a location which is found to be the most appropriate for their


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operations and then to cope up with the fluctuating costs of land and paying a high stamp

duty which adds on to their investment and reduces their margin.

12) Unproductive human resource:

The retail industry has been creating a lot of employment and a major chunk of the

population has been engaged in the retail industry but looking at the tough working

conditions in retail i.e. long working hours, no weekends and festival holidays, it becomes

very difficult to hire people who can create a bottleneck for the success. In the aura of

optimizing the cost, the companies are also neglecting the training needs of the newly

hired people which is also a major factor for reducing the efficiency of the human

resource.

13) The presence of a grey market:

In most of the cities, the dominance of the grey markets has been acting as a threat to the

big retailers. By selling the product at a cheaper rate, they are shifting the consumer

perception from the focus on quality to a focus on price.


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CHAPTER 4

Introduction- Pantaloon

Pantaloons, India's premium lifestyle apparel company offers chic and trendy

fashion to meet their ever-changing needs. Pantaloons reflects the ideology of always

keeping alive the 'newness factor' through fashion apparel and accessories that are visually

appealing and fashionably upbeat.

The first Pantaloons store was launched amidst much fanfare in Gariahat, Kolkata

in 1997. Over the years, the brand has undergone several transitions and re-invented itself

to bring forth compelling trends and styles catering to the evolving fashion hub.

Since its inception, Pantaloons progressed from retailing just a mix of brands to its

very own popular private labels as well, designed by the in-house Design Studio. With a

sharp focus on bringing the latest in fashion, the Design Studio combines its prowess in

design and aesthetics to present styles that keep the consumer fashionably dressed each

season.

Initially positioned as a store catering to the fashion needs of the entire family,

Pantaloons has transitioned to a fashion and lifestyle brand with an emphasis on youth and

a focus on designs that are inherently in sync with current fashion trends. This compelling

combination has helped Pantaloons retain its place on the style radar of every consumer's

wardrobe.

Pantaloons stores have an abundance of choices across categories that range fromwestern to Indian wear, formal to party wear and active wear for men, women and kids.

To further add to the customer's innumerable choices that reflect style, attitude, and

comfort, Pantaloons has extended its horizons to fashion accessories like fragrances,

footwear, handbags, watches, sunglasses and much more.


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STRATEGIES OF PANTALOON RETAIL LIMITED

Back ground

Pantaloon Retail (India) Limited is Indias largest leading retailers. It operates on

multiple platforms like Value and life style segment in the Indian consumers market.

Company head quarters located in Mumbai. As on Feb 2009 Company operates over 12

million square feet of retail space, 1000 stores in 71 cities with employee strength of

30,000 people. The company is in aspect of giving retailing a modern look with reachable

for middle and middle lower class people. Retailing includes retail formats like

Pantaloons, Big bazzer, Food bazzar, brand factory, Blue sky, and Top 10, Star & sitar and

e zone. The company also operates on online future bazzar.com for upper class that can

get internet connectivity. Home Town a large-format home solutions store.

Pantaloon Retail is the flagship company of Future Group, a business group

catering to the entire Indian consumption space. Future Group led by its founder and

Group CEO, Mr. Kishore Biyani, is one of Indias leading business houses with multiple

businesses spanning across the consumption space. While retail forms the core business

activity of Future Group, group subsidiaries are present in consumer finance, capital,

insurance, leisure and entertainment, brand development, retail real estate development,

retail media and logistics. [1]

Corporate statement

Our customers will not just get whatthey need, but also get them where, how

and whenthey need.

We will not just post satisfactory results, we will write success stories.

We will not just operate efficiently in the Indian economy, we will evolveit.

We will not just spot trends, we will set trendsby marrying our understanding of

the Indian consumer to their needs of tomorrow.


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SWOT analysis

SWOT Analysis is a strategic planning method used to evaluate the Strengths,

Weaknesses, Opportunities, and Threats involved in a project or in a business

venture.[3]This analysis helps in pointing out the objective and flow of business under

internal and external factors. Favorability of the strategy based on the factors can be

analyzed. The technique first used by Stanford University in 1960 by Albert Humphrey.

Figure 1 is formulated based on the factors for pantaloon retail chain.

Strength Weakness

High brand equity Management Uniform customer visits

Brand embossed Multi diversified business

Large Variance under one roof No single platform for all the business needs.

EDLP(Value pricing)

No bargaining markets , no interaction of

customer for value pricing

Threats Opportunity

Increasing Competitors Increasing interest in organized retailing

Government polices Changing consumer preference

Unrecognized modern retailing Demographical advantage

Local politics 29 states,12 different langauages,72 festivals

Resistance from small retailer

Young country -60% below 30 years of age

Shut down of subiksha


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Classes destination strategy

Future group has diversified its business keeping the retiling as common goal. To

set and concentrate on one stratum is main objective of this strategy. Each business is set

to operate on defined strata. Company has divided Indian customers in three different

groups. INDIA ONE, INDIA TWO, INDIA THREE. Each has different values, products

and quality requirements.

INDIA ONE or consuming class .The population of this constitutes only 14%.Till

recent times the modern retiling formats is offered for this class. According Maslows

theory of hierarchy the 14% people are in self-actualization and Esteem needs in the

pyramid. For this class pantaloons patterned Future bazaar, E zone, Central, brand factory,

Home town and star Galaxy entertainment.

INDIA TWO or the serving class it includes people like house hold helpers, office

peon etc. This is the people who make service INDIA ONE class. The population of this

class is more than 30%. In the needs hierarchy they are located in for Social and security

.Earning capacity of this class is 60% lesser than INDIA ONE. For this class as the big

bazaar, Food bazaar, Future money and other retail formats are presented.

INDIA THREE or struggling class. The class led life on hand to mouth existence.

They cant afford for beater living style. This segment doesnt contribute much in the

contribution cycle. The need of the segment is local as they are finding it cheaper. The

present business model is not addressing this class.


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Maximum market shares strategy

The retail chain by pantaloon in all business patterns tries to achieve maximum market

share in all the products or service it provides .The Company does not bothers about short

term profit or loss by a strategy. This are considered as learning. The business will sell at

marginal profit some times to attract the new customer who will prove potential customers

in future. The strategy achieved by focusing pricing factors in INDIA TWO and on service

and quality in INDIA ONE.

Pricing strategies

Pricing is strategy used by Pantaloons retail chain to attain maximum market

shares. The company offers numerous schemes to attract the new customer as well as to

retain the present customers. The companys schemes are categorized in following groups

Value pricing

This approach is used where external factors such as recession or increased

competition force companies to provide 'value' products and services to retain

sales. The product value will be associated with external factors.

Promotional pricing

Pricing to promote a product is a very common application. The application

of this done by BOGO (Buy one Get One), BTGO (Buy Two Get One Free) etc.

Bundling

Bundling is marketing tool sell two or more complementary product as a

package with attractive price. The price is will lesser then individual selling price.

Example: A Person needs one soap for a period of time But bundling with

attractive price with more than 3 soaps can attract them.

Low interest rate financing

Future money helps in asset purchase at 0% interest.

Physiological discounting

In India this approach is called as Bata rating system. Organization utilizes

this approach when product has emotional value rather than rational value.

Example a product is priced for 99 instead of 100.When board shows price


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reduction from 100 to 99, Consumer looks at 3 digits to 2 digits rather than exact

value.

Time pricing

The innovative way of attract the customer is Timely pricing it is known

that during holidays rate of customer is more. Reduction of profit margin with lot

of advertisement will invite new customers. The company has learnt it from

strategy made on public holiday 26-Feb. When the turnover of the day reached 30

cores where average is 5 cores.

With such experience crowded management is essential so to divert

potential customers Wednesday bazaar where it will offer less profit margin

sales.

Bundling

Marketing: Technique of offering two or more complementary goods or

services together as a package deal. Bundled items are sold at a price attractively

lower than the total of their individual selling prices.

Levers issues

Human resource

Well trained staff, Appearance, Empowered individuals, Use scenario planning as a

tool for quick decision making, Brand ambassador

Organization structure & controls

The entrepreneurial culture and spirit prevails in the company, Appetite for taking

risks is encouraged, learning while doing, No rigid organizational structure,

organization design approach, Balanced Score card approach


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Retail control

Semi Centralized, Complex

Sourcing

E-touch with supplier, Self production facilities with small number of suppliers,

Short term contracts (based on lowest bid)

Process

Modern hard technology, Devolved internally, Reduces cost, new strategies and

process innovations

Facilities

Special propose, Large, Capital driven, Placed in major cities


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and orders are given to suppliers immediately if product is not available the next supplier

will be asked to supply.

Cost can be reduced drastically as there is no fixed assets or big infrastructures or

inventory is required the complete model works on customer money because customer

will pay fir for the item he will get tomorrow.

Can provide customer with good quality as there is no chance of perishing. Home

delivery is compulsory in this model in which customer can enjoy the pleasure of getting

goods on door. There is no billing time in this model as it is internet base within fractions

of second billing is done.

Why not e-retailing ?

The organization focused on mall base selling rather than e business in initial

stages. Apart from having so many advantages company had no focused on this pattern.

The reasons for not selecting this system is probably

Targeted on INDIA ONE initially , Who are away from internet services

Supplier base and support was not so strong

Absence of good software support in supplier management

E business threat of cash jam in initial days

Face to face communication is tradition of Indian retailing from many years

The threat or cyber crime


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Conclusion:

Pantaloon retail India evolved its business strategy based on understudying

customers. The organization deploys the cultural and regional strategies to attract the

customers. The changing emotions of customers are tracked and they are linked with the

power of modern retailing environment. But still the company has introduce modern

retailing malls to the social class people of India it has fear of threat of business decline

from the competitors like Reliance fresh and Adityabirla more Who are potential

competitors.


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Bibliography

www.wikipedia.com

www.pantaloons.com

Documents

Pantaloon Retail- Strategic Mgmt