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Executive summary Retail Industry Introduction to a Retail Outlet Methodology used Address all the questions mentioned in the Course Outline

Other Important Deta

CURRENT PANTALOONS STATUS

Turnover -700crApparels40% Revenue from KolkataNo of stores -45 all over India (25 cities)Highest Revenue From John MillerLowest Revenue fromA g ile (sports new brand)

Private Label Contribution towards salesMens wear65% Womens wear 35 %

PR / PROMOTIONAL KITS:

Marketing Calendar The events are organized on the basis of occasionswhich come on a yearly basis. In total there are 14 special occasions listed in a year fore.g. Holi, Diwali, etc. The events are decided after the mark down budget has been made

in the marketing plan.They also conduct in house celebrations like womens week and events like End ofseason sale.

BRAND ARCHITECTUREa) Competitive Environment

The Managing Director of Pantaloons Retail(India) Limited, Mr. Kishore Biyani,states that the competition in the fashion segment would be Shoppers Stop, Trent andLifestyle to start with.

But Pantaloons also faces competition from Globus, Westside andthe stand alonestores in shopping malls and streets

b) Greater chunk of walletPantaloons has explored many new concepts.This is in pursuit of its strategy to sell everything to everybody.It does not, however, seek to be the Jack of all trades.

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It makes efforts to rope in those with category expertise.

c) TargetPantaloon targets the large and growing upper-middle andmiddle class of Indiansociety.

Pantaloons, with its focus on fresh look, feel and attitude offers, trendy and hipcollections that are in sync with the hopes and aspirations of discerning young andyoung-at-heart consumer

d) Benefits

The functional benefit that Pantaloon offers is an extensive and exclusive variety ofthe latest fashion and trends across its product categories such as apparel, accessories,footwear, etc.

The emotional benefit as quoted by Anil Bumb, Marketing Executive that, Pantaloons

offers is the entire retail experience and the feeling of pride with which the customer

walks out after having shopped from Pantaloons.

e) Values and Personality:Pantaloons is known to have a youthful persona and its own distinct sense of style thatappeals to millions. In accordance with the positioning paradigm of Pantaloons mantra of Fresh Fashionand perpetually reinventing itself with seasonal fashion wear, Pantaloons is associated

with Bobby Deol, Lara Dutta, Amrita Arora to endorse its brand.

Pantaloons also has an association with The Femina Miss India pageant .

Floor Plan

The floor plan demarcating the different sections and theirplacement is made by theconcept, design and visual merchandising team at the head office and is implemented by

the zonal teams

The plan changes after each End of Season Sale (EOSS) i.e. the Autumn-Summer ( August) and Autumn- Winter (February) salesChanges are made according to the revenue per square foot ofeach section and brand .

The Perfume section is always kept at the entrance in every

Pantaloons storeThe Brands are placed according to the expected salesHighpoints aim at attracting the consumer by displaying thelatest and inmerchandiseThe store also has clusters at entry and exit point .

Merchandise ManagementManagement of a category of merchandise is amore effective tool than managingindividual brands.The company stresses on promoting a product category, thusmaking brand marketinga secondary function.

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Pantaloons merchandising team is divided into the categorymanagement team and themerchandise management team

VisualMerchandising

Merchandise Display :A light to dark color story is always followedThe store usually also follows a color theme. For example if the color theme is pinkthen the garments at the focal points, on the clusters etc. will be within the pink palette.Smaller, quick pick up products such as Hairbrushes, clips, toys etc are kept nearthe billing counter .

Merchandise is also displayed on the mannequins (either standalone or clusters) bymixing clothes and accessories of different brands to put together a complete look.

There are A4 sized shelf talkers that tell the customer whichproduct is from which

brand

Window Display :

The windows in each store are segregated and have different themes for display.One of the windows is dedicated to Fashion Friday.Fashion Friday is a concept by Pantaloons since they believe in fresh fashion and saythat they bring something new to the customers every week .The display always follows a

color theme. The maximum time for which a display may be put up is a month thoughusually they try and change it every fortnight.

Point of SalePromotions and Signage: Various schemes arepromoted in the store through

announcements Other promotional materials such as those with the brand ambassadorsetc are given to various stores by the head office.

Shopping Bags: The bags are green in color with thebrand name and the customary leaf design.

Planning at PantaloonsPlanning at Pantaloon is a top-down, bottom-up process. The top managementforecasts the sales for each store and category and decides the space allocation for each

category based on which targets are set for sales, gross margins, inventory turnover,discounts, mark- ups, stock levels and net margins for each store and each category .

The category managers take a more micro approach wherein they study the categoryspast performance and trends in the marketplace .

The category manager here performs the twin functions of vendor development andsampling of SKUs, which would finally go into the merchandise mix of the stores .

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Merchandising ProcessFirst, the design team develops the design or a new pattern.

The team is led by the visual merchandising head and has 20 designers for productdevelopment.

The design department depends on fashion forecast magazines, exhibitions and mayalso visit leading retailers in the city to understand the latest styles.

Designs are developed not only for the fashion and collections category but also forthe classic segment so that there is something new every season.

The new designs are presented to the category management team, which consists ofclose to 40 people handling 16-17 categories of merchandise . The category captain and

his team is given the entire years budget and sales target for the category based onwhich he decides whether to experiment with a new design or not .

If yes, then the category manager will first establish the total purchase quantity of thatdesign and the stores in which this should go .

This is the most crucial stage where the category manager prepares themerchandise control chart .

On- Shelf StrategiesPantaloon has a clear policy for each category of merchandise

The company gets weekly reports on Tuesdays, which it called u m p. This data isanalysed to see the movement of various types of goods. The tracking is done based onthe merchandise category classic, fashion or collection

Every month, the company identifies the good and bad sellers. According to companypolicy, a bad seller is a product that stays on the shelf for more than 60 ways In case ofany slow moving goods, the company analyses the results in context of price, style,

colour and size .

The company believes that if the style or colour is not right no amount of discountwill help sales So if the merchandise does not move during its shelf life, it is just

removed and kept at the warehouse for end of season sale. If the price appears to be a

deterrent, the company corrects it right away and marks down the price immediately .

To its advantage, the company is present in three formats the Pantaloon departmentstore, the factory outlet and the Big Bazaar.

A slow moving good is often moved to the factory outlet or the Big Bazaar, where it isdiscounted and sold

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The factory outlet stores also hold sales to dispose off the merchandise. In each ofthese cases, the company takes the approval of the vendor and often, the vendors take

part in the salesThe company discounts the goods -- from 10-40 per cent at the factory outlet to get ridof the stock . So if the merchandise does not move during its shelf life, it is just removed

and kept at the warehouse for end of season sale. If the price appears to be a deterrent, thecompany corrects it right away and marks down the price immediately .

To its advantage, the company is present in three formats the Pantaloon departmentstore, the factory outlet and the Big Bazaar.

A slow moving good is often moved to the factory outlet or the Big Bazaar, where it isdiscounted and sold .

The factory outlet stores also hold sales to dispose off the merchandise. In each ofthese cases, the company takes the approval of the vendor and often, the vendors take

part in the sales

The company discounts the goods -- from 10-40 per cent at thefactory outlet to get rid of the stock

Supply chain Infrastructure

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Strategies adopted by pantaloons

In 2005, pantaloons refurbished its image . Junking the old positioning of 'India's family store' and is planning to target the youthinstead .

Pantaloons now carries the `Fresh Fashion' statement across its 12 storesGoing forward with increasing sales promotion and massive store expansion it is justgoing to increase the brand value in the mind of the consumers . It has transformed the consumers from being a brand loyal to store loyal .The company has roped in Bollywood stars topromote its apparel offering .

Loyalty ProgrammeLoyalty programme Green cardOver 390000 card holders having exclusive privileges, rewards andbenefitsGreen Card holders contribute to nearly 50 % of sales annuallyThey practice a 4 tier (1, 3, 5, and 7- Star) approach to cater to different segmentsAn integrated loyalty programme for its various formats, to have an understanding ofcustomer buying habits across different formats

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Pantaloons, and Jet Airways' Jet Privilege frequent flyer programme have entered intoa partnership for co-branded loyalty programmes

An Interview With An ExpertMerchandising: The branded merchandise, is supplied either directlyto the store or to the distribution centres or warehouses located in different cities, whichis then sent to the stores, depending upon the agreement with the supplier

The In-house or the own brands, is distributed to the stores by different DCs(Distribution Centres ) by raising STOs (Stock Transfer Orders ), the manufacturer of theproduct, supply the product to DC, after receiving PO (Purchase Order) from the category

based at HO .

Store Layout: Once the layout is ready and handed over to thebusiness, the assortmentplan is prepared ( brand mix of merchandise ) and plannogramming is done ( placing ofthe SKUs , based on customer demand , share in the product category and paid visibility )

Store layout is decided on the basis of :-

- Total space in the store

- The concept of the store ( Hypermarket or Supermarket )- The flow of the customer

- The number of categories present

- The business returns of the present categorieThe number of stores depend upon the different factors such as the - class of the city tier1 or tier 2, buying power of the people in city, number of present stores in the city It can

range from minimum 1 to 22Location of the store depends upon , the catchment, the currentbusiness potential,space /property availability for the store and future business prospects and competitors

and last but not the least feasibility of businessMarketing is broken down in two activities, ATL ( Above the line ) and BTL ( Belowthe line SCM & Inventory:The planning is done for 4 to 5 months in advance, depending

on the annual business targets, the stock level is planned, which are based on the

promotions, coming for that period, weekends and Wednesdays, festivals and sales

periodsConsidering the sales targets, the stocks are calculated and the backward calculation isdone, for normal days the (MBQs) Minimum Base Quantities are set at the store levels

and ordering is done accordingly, also we have gone live with (ARS) Auto ReplenishmentSystem, where the PO will be generated automatically, once the stocks reaches MBQ

level

Recommendations & Conclusions

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After a visit to Store, the first thing observed was the volume of the announcementsmade about the promotions of the store was very high. It needs to be reduced so as to

avoid any inconvenience to the customersDue to the numerous brands that Pantaloons sells, there is a lot of clutter with regardsto the display. This needs to be spaced out so that the arrangement looks pleasing to the

eyeResearch has proved the importance of music in a retail store and how it acts as astimulant to purchase. They should play music that is fresh so that it goes in sync with its

product offering and depending on the time of the day they should play loud or softmusic.

We recommend an area that would be made a Kidzone. This area would have toys,

books and games so that the kids can enjoy while the parents shop .A caf is recommended so that customers dont have to step out of the store incasethey are hungry or thirsty. It also keeps a customer engaged for a longer time in the store

An in-store ATM can be established by a tie up with a bank. Pantaloons would be thefirst in the industry to come up with this and would thus enjoy a first mover advantage

A common issue faced by many customers is the availability of sizes as far as denimsare concerned. The Stock keeping levels should be checked more often so as to avoid a

stock out of the products.