PRODUCT MANAGEMENT & UTILAZATION OF RETAIL SPACE

PANTALOON SAHARA GHANJ LUCKNOW

SUMMER TRAINING PROJECT REPORT RSUBMITTED IN PARTIL FULFILLMENT OF THE REQUIREMENTS FOR

THE DIPLOMA OF POST GRADUATE DIPLOMA IN MANAGEMENT ( RETAIL)

JAIPURIA INSITUTE OF MANAGEMENT, LUCKNOW

PROJECT GUIDE

SUBMITTED BY

AMRIT KUMAR SINGH

PGDM (RETAIL)

JIML-R-012

ACKNOWLEDGEMENT

DECLARATION

I hereby declare the best of my knowledge and ability that my work on the summer internship project namely “product management and utilization of retail space” is done completely by me without picking up extracts from already published data without reference. It is not published and is done for the purpose of summer internship with pantaloons retail pvt.ltd.

PLACE: SAHARAGANJ LUCKNOW

AMRIT KUMAR SINGH

TABALE OF CONTENTS

SR. NO. CONTENT PAGE NO.

1 Executive summary

2 Retail in India

3 Pantaloon profile

4 Objective and methodology

5 About the store

6 section Analysis

7 product mix analysis

8 customer profile analysis

9 Brand performance

10 Interview with the sales team

11 Carrying capacity of the section

12 Supply chain management

13 Conclusion

14 Recommendations

15 Annexure

Retail in India

The retail sector in India is highly fragmented and organized retail in the country is at a very

nascent stage. There are 12 million outlets spread across India, earning it the epithet of a “nation

of shopkeepers” more than 80% of these 12 million outlets are run by small family businesses

which use only household labour . Traditionally small store (kirana) retailing has been one of

the easiest ways to generate self employment, as it requires limited investment in land, capital

and labour. Consequently India has one of the largest retail densities in the world at 9% (13

million retail shops for about 300 million households). India’s peer , such as china and brazil ,

took 13-18 years to rises the share of organized retail sectors from 5% when the began , to 20%

and 38% respectively. India too is moving towards growth and maturity in the retail sector at a

fast pace. Retailing in India is growing at the rate of about 20-22 % per annum.

As part of its strategy to gradually open it up to foreign competition, the government is also in

the process of increasing foreign direct investment in the retail sector. At the same time, the

urban consumer is becoming more discerning and demanding as for as the lifestyle is concerned.

Urban Indian household incoming and purchasing power are also on the rise. Under such

circumstances, the success of organized retail in India mainly depends on delivery of services

through quality improvements. In service organizations, customer- perceived service quality is

considered as one of the key determinants of business performance. So far, in the Indian context,

there is a dearth of tested instruments which can measure customer-perceived service quality of

a retail store. At the same time, instruments developed service quality of retail store. At the same

time, instruments developed in other country have not been tested for there applicability in the

Indian retail industry.

Pantaloon Retail (India) Limited, is India’s leading retailer that operates multiple retail formats in both the value and lifestyle segment of the Indian consumer market. Headquartered in Mumbai (Bombay), the company operates over 16 million square feet of retail space, has over 1000 stores across 73 cities in India and employs over 30,000 people.

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

The company’s leading formats include Pantaloons, a chain of fashion outlets,  Big Bazaar, a uniquely Indian hypermarket chain, Food Bazaar, a supermarket chain, blends the look, touch and feel of Indian bazaars with aspects of modern retail like choice, convenience and quality and Central, a chain of seamless destination malls. Some of its other formats include Brand Factory, Blue Sky, ALL, Top 10 and Star and Sitara. The company also operates an online portal.

Future Group makes every effort to delight its customers, tailoring store formats to changing Indian lifestyles and adapting products and services to their desires.

We operate some of India’s most popular retail formats. Across value and lifestyle segments, our multi-format retail strategy caters to the complete consumption needs of a wide cross-section of Indian consumers.

HOME

Building Dreams in a New India- Launched in 2006, Future Group’s home retail business is among the fastest growing retail formats. Future Group provides products and services related to home building and home improvement through Home Town, a large-format home solutions store, along with specialized formats for home furniture and furnishing through Collection I and Furniture Bazaar

VALUE

(Helping India Save-- In the value segment, Future Group’s popular brand Big Bazaar is a hypermarket

chain that combines the look, touch and feel of Indian bazaars with the choice and convenience of

modern retail.

DIGITAL

Connecting the Youth of India- FutureBazaar.com has seized the e-commerce integrated shopping portal; it has enabled consumers to shop online for home delivery of products from our flagship stores eZone, Pantaloons and Big Bazaar. Operating in the space of Digital commerce spanning the Internet, phone, store kiosks and other sales channels, FutureBazaar.com offers a large variety of categories and home delivers products to more than 16,000 Pin Code addresses in 1,500 cities and towns across India.

Lifestyle

(style for every Occasion- In the lifestyle segment, Future group operates Pantaloons, a

fashion retail chain and Central, a chain of seamless destination malls among others.

As modern retail drives fresh demand and consumption in new categories, our strategy is based on a deep understanding of Indian consumers, the products they want, and making these products available in every city, in every store format. Future Group offers innovative offerings at affordable prices tailored to the needs of every Indian household.

Pioneers in the India’s retail space, our formats are household names in more than 85 cities and 60 rural locations across the country

Our stores cover around 15 million square feet of retail space and attract around 220 million customers each year

Pantaloon Retail (India) Limited focuses on the lifestyle retail segment led by the Pantaloons and Central formats

Future Value Retail focuses on the value retail segment through the Big Bazaar, Food Bazaar and KB’s Fairprice formats

FUTURE GROUP

Future group is India’s leading business group that caters to entire Indian consumption space. Led by Kishore Biyani, the future group operates through six vertical:

Future Retail Future capital Future Brand Future Space Future Media Future Logistics.

Apart from pantaloon retail, the group’s presence in the retail space is complemented by group companies, Indus league clothing, which owns leading apparel brand like indigo nation , scullery and urban yoga , and Galaxy Entertainment Limited that operates bowling co, Sport Bar, F123 and Brew Bar.

Future Capital holding the group financial arm focuses on asset management and consumer credit. It manage asset worth over $4billion that are being invest in developing retail real estate and consumer related brand and hotels.

GROUP VISION

Future Group shall deliver everything, everywhere, every time for every Indian consumer in the most profitable manner.

GROUP MISSION

We share the vision and belief that our customers and stakeholders shall be served only by creating and executing future scenarios in the consumption space leading to economic development.

We will be the trendsetters in evolving delivery formats, creating retail realty, making consumption affordable for all customer segments – for classes and for masses.

We shall infuse Indian brands with confidence and renewed ambition.

We shall be efficient, cost- conscious and committed to quality in whatever we do.

We shall ensure that our positive attitude, sincerity, humility and united determination shall be the driving force to make us successful.

CORE VALUES

Indianans: confidence in ourselves.

Leadership: to be a leader, both in thought and business.

Respect & Humility: to respect every individual and be humble in our conduct.

Introspection: leading to purposeful thinking.

Openness: to be open and receptive to new ideas, knowledge and information.

Valuing and Nurturing Relationships: to build long term relationships.

Simplicity & Positivity: Simplicity and positivity in our thought, business and action.

Adaptability: to be flexible and adaptable, to meet challenges.

Flow: to respect and understand the universal laws of nature.

COMPANY JOURNEY

1987- Company incorporated as Man Wear Private Limited. Launch of Pantaloons trouser, India’s 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 Pantaloon 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 - India’s 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 India’s first real estate investment fund Kshitij to build a chain of shopping malls.

2006- Future Capital Holdings, the company’s 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.Pantaloon 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 India’s 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.Future Group acquires rural retail chain, Aadhar present in 65 rural locations

LINE OF BUSINESS

OBJECTIVE AND METHODOLOGY

OBJECTIVE: product management and utilization of retail space of ladies ethnic section & kids section of store.

SUB-SUBJECT:

Arrive at realistic sales potential for the section. Break this over all sale potential into sub brand in the ladies ethnic section & kids

section. Estimating the carrying capacity of the section. Inventory management.

METHOLOGY:

ESTIMATING OVERALL REALASTIC SALES POTENTIAL.

SECTION ANALYSIS: major brand (a brief introduction of each brand). PRODUCT MIXE ANALYSIS: top to bottom ratio in terms of sales and the

size in terms of fast mover and slow mover. CUSTOMER ANALYSIS: profile \ demographics – by interacting with

customer\ actual selling\ observations. BRAND PERFORMANCE: It included a comparative study of the brands in

terms of the sales, quantity sold, net margin % and value per price.

BREAKING OVER ALL SALES TEAM

Interview with the sales team Analysis

ESTIMATE THE CARRYING CAPICITY OF THE LADIES ETHNIC SECTION & KIDS SECTION:

Different floor fixtures. Wall fixtures.

INVENTORY MANAGEMENT:

Warehousing facility of pantaloon. Role of category

ABOUT THE STORE

The store is situated at saharaghanj mall in hazartganj, Lucknow. It is an exclusive lifestyle store having apparels and accessories. The size of store is approximately 21400 square feet of which the retail space is 14000 square feet. There are an 8 trial rooms and the store room also. The store is one of the anchor store in the mall. The store on the ground floor, and also one of the entrances is from the first floor. The stores adjacent are Dockers and Woodland.

The ladies western\ ethnic wear and kids section on ground floor along with the accessories and beauty and wellness section.

The men’s casual and formal section is on the first floor. In ladies ethnic section so the various brands in the section include Trishaa, Aakriti,

Rangmanch, and All. In kids section so the various brand in the section include aakriti, bare, chalk, rig, lee

cooper junior and pink & blue.

SECTION ANALYSIS

The ladies ethnic section and kids section are on the ground floor and area that has been allotted to the section is 540 and 963 square feet. The various brands that are there in the section are:

All Trishaa Rangmanch Aakriti (ethnic ) Aakriti(kids) Rig (kids) Chalk (kids) Bare (kids) Lee cooper junior (kids)

Among these All , Trishaa, Aakriti, Ranggmanch, Rig , Chalk, Bare and pink& blue are pantaloon privet label brand and lee cooper junior national label brands .

Below is the brief introduction of each brand.

ALL

All is the privet label brand of pantaloon, and the punch line for ALL is “A little larger” I e it is meant for person how are a little bulky and look for bigger size. Since all deals with the larger sizes ranging from zero to five, that is why it is made a different line of business. It is one of the major crowd pullers of the store. There are varies merchandise categories in All namely formal bottom wear, top wear, all ladies mix and match, All ladies sport wear and casual ware. The fabric that is widely used is cotton blends.

If we talk about the age group then all offers a variety of apparels for all age groups, except the kids.

The price rang for top wear is different for different merchandise categories. The t-shorts are price at Rs. 599 the formal shirts start from Rs. 799/ - and goes up to Rs.999- the kurti start from Rs. 649/ and the maximum price in this is Rs. 1599/ the bottoms in All fall in the price rang of Rs. 899 to 1699.

TRISHAA

Trishaa is the privet label brand of pantallon and includes SKD sets (salwar kameez and dupatta)which is the marchandise category. The space that is allocated to the brand is 144 square feet. Tishaa basicaly caters to the needs of women who lie betwwen the age group of 20 to 35 years . the SKD sets are very colourful and rich in fabric with decent embroideried and embellishments. Trishaa suits come in three risk levels . these are core , fashion and core fasion.

The risk level defines the type of marchandies like the core rang is the one that has to be there in the store in a particular season for which it has been ordered. The types of siuts that come in core rang are more of casual types and wearable for a normal day whereas for a normal day whereas the fashion rang consist of the SKD’s which are more expansive as compared to core and are more fashionable. Trishaa offers suits starting from the price range of Rs. 1199/- and goes upto 2999/- the fabric that is used for Trishaa suits is mainly cotton and cotton blends as it is designed for the summer season right now. Polyester is also used for some. Each suit has its USP (unique selling proposition).

RANGMANCH

Rangmanch is the privet lavel brand of pantaloon, and a cover a wide range of topwear, bottomwear, and stoles/ dupattas mix n match is the marchandies category. Rangmanch has the speciality that the fabric used in the suits is the very colourful as the name suggests.

The space that has been allocated to rangmanch is 392 square feet. It has been given the maximum space because it includes a very deep assortment of bottowear and stoles along with the skd sets. The starting rang of the brand is Rs. 399/ for topwear and Rs. 299/ for the bottom wear. The maximum rang for top and bottom is Rs. 1199 / and Rs. 649/ respectivly. The stoles/ dupattas fall in the rage of rs. 199/ to 299/ . the brand offers the apparels that are suitable for all age group if we talk about the between the age group of 20 to 40 years. As for the risk level mainly core merchandise can be seen. This is so because the apparels are more of casual wear and less of partwear . the fabric used is mostly cotton and cotton blends.

AKKRITI

Akkriti is anot is her private label brand of pantaloon and there is basically one class in it, which is PF Ladies ethinic. These are the ladies ethnic wear which covers skirts and tops, there is also a good range of capries and lowews in aakriti. There are two merchandise categries in it, these are aakriti ladies topwear and aakriti ladies bottomwear. This brand is known for its very wearable yet a good blend of western and ethnic skirts and tops.

Skirts in aakriti are again mostly made of cotton and are ankle length …..the age group that is more attracted towards the brand is that of 16-25, it is becasuse of the fact that the apparels are jazzier and meant for the youth.

Besides this another fact the came to my notice, is that the ladies came to the section and they specifically ask for long skirts which are in these days. But in the section there is no such stock of long skirts; the maximum lenth which you will get is just above the ankle. If we talk about the risk level again there are three of them, that is ……….the core, fashion and core fashion out of which fashion range is the maximum. The starting price for skiets is rs. 699 and upto rs.1599. the price bracket for top wear is rs. 499/to rs.1599 , if we talk about the other bottmwear stuff then that cames in the range of Rs. 499/ to rs. 1199/.

The fabric used is cotton , crepe , de-shine and cotton blends. The bottom wear in aakriti include skirts, capris, and lowers.

KIDS SECTION

Rig

CHALK

AAKRITI KIDS