SWAYAM SIDDHI COLLEGE OF

MANAGEMENT & RESEARCH

A PROJECT REPORT ON

STUDY ON CONSUMER SALES PROMOTIONS OF APPAREL RETAIL STORES

SUBMITTED BY:

PARINAY SHASHIKANT MATKAR

MMS BATCH 2008-2010 (MARKETING)

UNDER THE GUIDANCE OF

PROF. TUSHAR CHAKRAVARTY

IN THE PARTIAL FULFILLMENT OF

MASTERS OF MANAGEMENT STUDIES (MMS)

OF

UNIVERSITY OF MUMBAI

[Approved by AICTE, Affiliated to University of Mumbai & Govt. of Maharashtra DTE Code – MB

336]

(An ISO 9001-2000 Certified Institute)

Sonadevi Weight Bridge, Near Octroi Naka, Kalyan Road, Temghar, Bhiwandi, Dist. Thane – 421 302

CERTIFICATE

This is to certify that Mr. PARINAY SHASHIKANT MATKAR (Roll

No.1328) student of Second Year Master of Management Studies

(MMS/MBA) of SWAYAM SIDDHI COLLEGE OF MANAGEMENT &

RESEARCH has successfully completed the winter project work titled

“STUDY ON CONSUMER SALES PROMOTIONS OF APPAREL

RETAIL STORES” in partial fulfilment for the degree of Master of

Management Studies of University of Mumbai.

Date: / /2010

Signature of the project guide Director

Prof. Tushar Chakravarty Dr. Nilesh Chatterjee

Declaration

I, Mr. Parinay Shashikant Matkar, hereby declare that the project report

titled “Study on consumer sales promotions of apparel retail stores” is the record

of authentic work carried out by me during the academic year 2008 – 2010 and has

not submitted to any other university or institution towards the award of any degree.

Date: / /2010 ______________________ Signature (Parinay S. Mtakar)

Acknowledgement

I, Mr. Parinay Shashikant Matkar (Swayam Siddhi College of Management and

Research, Bhiwandi), would like to thank my project guide, Prof. Tushar Chakravarty

for his valuable guidance and support which has helped me immensely in completing

this project.

I also want to thank the college director Mr. Nilesh Chatterjee and other professors,

my friends and colleagues, who have directly or indirectly helped me out in the

completion of my project.

Lastly, I would like to thank the entire staff of all the stores for their cooperation

during my project work.

INDEX

Title Page no.

Introduction to retailing 1

Apparel Retail Industry 3

Major players in Apparel Retail 6

Sales Promotion 8

Objectives 11

Research Methodology 12

Analysis 15

Findings 41

Conclusion 43

Bibliography 44

Executive Summary

In a market like India, there is a constant clash between challenges and opportunities

but chances favour those companies that are trying to establish themselves. To sustain

in such a volatile market, companies have to bring innovative solutions. With the

advent of modern format retailers and the growth of plastic cards, affluent urban

Indians are shopping like never before.

As apparel retail is led by fashion, a retailer needs to keep a close watch on fashion

amongst teenagers, as they are the trend setters. Seasonal variations on stocking

pattern and need to clear inventory at the end of season should be understood by

apparel retailer. This highlights the importance of sales promotions- short term

activities which induces trade or consumer to buy now, rather than in future, as the

value of apparel after the season goes down substantially and inventory carrying

burden turns out to be very high. Apparel retailer needs to understand critical role of

sales promotions.

The topic of the project is to perform a study on consumer sales promotion activities

of the apparel retail stores in Mumbai. To accomplish the above, three apparel retail

stores of different well known business groups, located in Mulund (W) area of

Mumbai were surveyed and interviewed. The responses were analyzed and results

were obtained. The core purpose of the survey was to study the sales promotion

activities performed by apparel retail outlets which results in stimulating product

interest, trial, purchase and stock clearance.

Introduction to retailing

The revolution in retailing industry has brought many changes and also opened door

for many Indian as well as foreign players. In a market like India, there is a constant

clash between challenges and opportunities but chances favour those companies that

are trying to establish themselves. Thus, to sustain in a market like India, companies

have to bring innovative solutions. Indian market has potential to accommodate many

retail players, because still a small proportion of the pie is organized.

Retailing is still in its infancy in India. In the name of retailing, the unorganised

retailing has dominated the Indian landscape so far. According to an estimate, the

unorganized retail sector has 97% presence whereas the organized accounts for

merely 3%. Industry has already predicted a trillion dollar market in retail sector in

India by 2010. However, the retail industry in India is undergoing a major shake-up as

the country is witnessing a retail revolution. The old traditional formats are slowly

changing into more complex and bigger formats. Malls and mega malls are coming up

in almost all the places, be it metros or the smaller cities, across the length and

breadth of the country.

A McKinsey report on India (2004) says organized retailing would increase the

efficiency and productivity of entire gamut of economic activities, and would help in

achieving higher GDP growth. At 6%, the share of employment of retail in India is

low, even when compared to Brazil (14%), and Poland (12%). Govt of India’s plan of

changing the FDI guidelines in this sector speaks of the importance attached to

retailing. Recent moves by big corporate houses like Reliance Industries has further

fuelled the major investments in retail sector. A strategic alliance, land acquisitions in

prime areas give the essence of the mood in this sector. Both MNCs and Indian firms

want to get their share of this burgeoning pie. Notable in Indian firms are Pantaloons

Retail & Big Bazaar, Trent’s Westside, Shopper’s stop, Reliance, Subhiskha, Wills

Lifestyle stores, Cafe Coffee Day, which are present in India in different retail

formats. Wal-Mart stores have just started operations in India. Some leading retail

coffee chains of the world like Starbucks, Barnies are planning to expand in a major

way in India.

The Indian retail sector

India is the country having the most unorganized retail market. Traditionally it was a

family’s livelihood, with their shop in the front and house at the back, while they run

the retail business. More than 99% retailer’s function in less than 500 square feet of

shopping space. The Indian retail sector is estimated at around Rs 900,000 crore, of

which the organized sector accounts for a mere 3 per cent indicating a huge potential

market opportunity that is lying in the waiting for the consumer-savvy organized

retailer. Purchasing power of Indian urban consumer is growing and branded

merchandise in categories like Apparels, Cosmetics, Shoes, Watches, Beverages,

Food and even Jewellery, are slowly becoming lifestyle products that are widely

accepted by the urban Indian consumer. Indian retailers need to take advantage of this

growth and aiming to grow, diversify and introduce new formats has to pay more

attention to the brand building process. The emphasis here is on retail as a brand

rather than retailers selling brands. The focus should be on branding the retail

business itself. There is no doubt that the Indian retail scene is booming. A number of

large corporate houses —Tata’s, Raheja’s, Piramals’s, Goenka’s — have already

made their foray into this arena, with beauty and health stores, supermarkets, self-

service music stores, new age book stores, every-day-low-price stores, computers and

peripherals stores, office equipment stores and home/building construction stores.

Today the organized players have attacked every retail category.

Apparel retail industry

In India, clothing retail accounts for 36% of organised retail business. It is the largest

sector. Ready-made apparel accounted for an estimated 20% of domestic clothing

sales in 2005. With growing working women wearing western wear to work, and

pressed for time, market for good readymade clothes is likely to grow. India is a film-

crazy nation, and the largest producer of films, with more than 1,000 every year. They

provide entertainment and an escape from reality for India’s masses, and set the

popular fashion trend. Bollywood fashions have become pan Indian. They affect

various sectors of the market including clothing, footwear, weddings and fashion

accessories.

With the advent of modern format retailers and the growth of plastic cards, affluent

urban Indian women are shopping like never before. They spend mornings browsing

in stores looking for deals or latest styles. Upper income urban women are adopting

ethnic wears. These are designer clothes that incorporate Indian motifs, ethnic fabrics

and are a fusion of western and Indian styles.

In the large urban centres, apparel retailers, like Shoppers Stop, Westside and

Pantaloon have popularised their private labels, which have attracted urban shoppers.

Westside carries only its own private labels, while for the other stores, 20-30% of

their apparel turnover is from private labels. Customers have loyalty to a store rather

than any particular garment brand. This has led to a thriving unbranded or local brand

market for ready-to-wear clothes leading to severe competition. Hence organized

retailers like Lifestyle, for instance, has a loyalty programme called `The Inner

Circle', while Pantaloons offers a `Green Card' Rewards programmes, Westside has

`Club West' to woo the customers. Customers look to design and fit of the clothes,

and use the shop’s name as a quality standard.

Characteristics of Apparel retail sector

As apparel retail is led by fashion, a player needs to keep a close watch on fashion

amongst teenagers as they are the trend setters. Role of Bollywood in spreading

fashion needs to be understood. Seasonal variations on stocking pattern and need to

clear inventory at the end of season should be understood by apparel retailer.

Typically once an item is sold from the outlet, retailer ensures that there is no

repetition of same. It gets replaced by different design, style and colour. Importance

of store layout, décor is very critical. A person visiting the store frequently likes to see

changes in the layout otherwise he may carry the impression that stocks are not

moving out of the store. Category management becomes very crucial function as

transformation of design into production and delivery has to be completed before

fashion or fad changes in the market.

This highlights the importance of sales promotions- short term activities which

induces trade or consumer to buy now rather than in future as the value of apparel

after the season goes down substantially and inventory carrying burden turns out to be

very high. Apparel retailer needs to understand critical role of sales promotions.

Attractive promotions induces purchase acceleration, stock piling and brand switching

on the part of a consumer which substantially reduces retailers’ financial and

inventory risk and consumers’ financial risk and psychological risk.

Seasons of Retailing

Summer Season

It is usually from May to July.

Low sales are recorded during this period.

This season is good for promotions and launching new advertisement

campaigns.

Fall Season

August and September are important months.

Retailers are provided a good opportunity to increase their share.

Holiday Season

It begins usually at the end of October and carries through the fourth quarter

ending in January.

Festivals like Dusherra, Diwali, Christmas and New Year Eve bring more

customers.

Usually it is the best time for retailers.

Spring Season

It lasts from February to May

Fewer footfalls are recorded in malls.

Customers

Men

While men tend to prioritize fashion to a lesser degree than women, “right-

look” and the “descent” image is still important to them.

Men tend to spend more money on electronic gadgets, food, sports goods and

music.

Women

“Teen” girls represent a lucrative opportunity for retailers. They are going to

become the future buyers.

“Teen” girls are more trend savvy. It is not just the clothes and accessories, but

the whole look that the teen girls aspire to define.

Women spend more on jewellery and household items and thus they contribute a

lot more in terms of revenue.

Major Players in apparel retail

Shopper’s Stop

K. Raheja group of companies founded Shoppers' Stop on October 27, 1991.The

organization had already made its presence felt in the hospitality and real estate

sector, and now it has created a landmark in the Retail sector with Shoppers' Stop.

Shoppers' Stop is famous for the expertise and acumen relating to the current practices

of the industry. It provides quality services, products and the right kind of shopping

environment. It has developed itself as a household name and has set high standards

for itself with the mission statement: “Nothing but the best". In 2005, the company

had 25 stores with a turnover of Rs. 1000 crores and 7 lakh sq. feet retail space in the

year 2005. The average age of the employees in the organization is 25 years.

Pantaloon Retail (I) Ltd.

Pantaloon Retail is the flagship enterprise of the Future Group. Pantaloon Retail

(India) Limited has spread across various businesses and cities in India. Pantaloon

owns multiple retail formats and is able to cater to a large section of the society. The

company has over 140 stores across 32 cities in India and 14000 employees. The

organization made an incursion into the modern retail (fashion) in 1997. Big Bazaar, a

hypermarket chain, was introduced in the year 2001, with an Indian touch of

convenience and hygiene. Food Bazaar, food and grocery chain, and Central Mall

located at various Metros are other important parts of the group.

Westside

Tata Group founded Trent Ltd. (Westside) in 1998. The acquisition of a London-

based retail chain Littlewoods by the Tatas was followed by the establishment of

Trent Ltd, which was later renamed as Westside.

It is one of the largest and fastest growing chains serving the customers in various

categories, including men's wear, women's wear, kid's wear, footwear, cosmetics,

perfumes and handbags, household accessories, lingerie and gifts. The company

offers products with a balance between style and price. There are 25 Westside

departmental stores operating in various cities like Mumbai, Hyderabad, Pune, Delhi,

Banglore, Noida, Gurgaon, Nagpur, Kolkata and many others.

Lifestyle International Pvt. Ltd.

Lifestyle is an international fashion store of the Landmark Group, a Dubai-based

company. Lifestyle created a revolution in the Indian Retail Industry by bringing a

truly international shopping experience. It was launched in Chennai, and now it is one

of the largest professional retailers spread across 3,25,000 sq. ft. in various cities such

as Chennai, Gurgaon, Mumbai, Hyderabad and Banglore. It is a heaven for shoppers

with a vibrant and spicy lifestyle. It provides a wide choice of products at affordable

prices with a convenient world-class environment and a friendly layout. Being one of

the best shopping destinations, it has won the ''Most Respected Company in the Indian

Retail Sector' and the 'Most Admired Large Format Retail Company' awards in India.

Globus

Globus was launched in 1998 as a part of the Rajan Raheja Group. The company

opened its first outlet in Indore followed by two more in Chennai. The flagship store

was opened on 1st November 2001 in Mumbai, followed by a vibrant store in New

Delhi. Subsequently, its stores were launched in Bangalore, Ghaziabad, Kanpur,

Ahmedabad, Noida, Lucknow, Varanasi and Hyderabad.

The organization has an innovative and adaptive environment. Globus has achieved

customer delight by presenting value products and services through continuous

improvement.

Wills Lifestyle

ITC has made a presence in the Retail sector through its exclusive specialty store -

'Wills Lifestyle'. It has developed itself as a fashion destination offering a range of

apparels and accessories. Top designers of the industry design these clothes. The store

offers Wills Classic work wear, Wills Sport relaxed wear, fashion accessories and

bath & body care products. Wills Lifestyle has also developed John Players as a brand

that offers a fine collection of clothes for dynamic and vibrant people. ITC believes in

the philosophy of enjoying the changing environment. This season Wills Lifestyle has

brought a complete array of products for very aspect and mood of life be it work,

relaxation or party. The store offers a truly 'International Shopping Experience'

through world-class environment and a robust portfolio of offerings.

Sales Promotion

Sales promotions are short-term incentives to encourage the purchase or sale of a

product or service.

Sales promotion includes several communications activities that attempt to provide

added value or incentives to consumers, wholesalers, retailers, or other organizational

customers to stimulate immediate sales. These efforts can attempt to stimulate product

interest, trial, or purchase. Examples of devices used in sales promotion include

coupons, samples, premiums, point-of-purchase (POP) displays, contests, rebates, and

sweepstakes

Sales Promotion Strategies

There are three types of sales promotion strategies: Push, Pull, or a combination of

the two.

A push strategy involves convincing trade intermediary channel members to "push"

the product through the distribution channels to the ultimate consumer via promotions

and personal selling efforts. The company promotes the product through a reseller

who in turn promotes it to yet another reseller or the final consumer. Trade-promotion

objectives are to persuade retailers or wholesalers to carry a brand, give a brand shelf

space, promote a brand in advertising, and/or push a brand to final consumers. Typical

tactics employed in push strategy are: allowances, buy-back guarantees, free trials,

contests, specialty advertising items, discounts, displays, and premiums.

A pull strategy attempts to get consumers to "pull" the product from the manufacturer

through the marketing channel. The company focuses its marketing communications

efforts on consumers in the hope that it stimulates interest and demand for the product

at the end-user level. This strategy is often employed if distributors are reluctant to

carry a product because it gets as many consumers as possible to go to retail outlets

and request the product, thus pulling it through the channel. Consumer-promotion

objectives are to entice consumers to try a new product, attract customers away from

competitors’ products, get consumers to "load up" on a mature product, hold &

reward loyal customers, and build consumer relationships. Typical tactics employed

in pull strategy are: samples, coupons, cash refunds and rebates, premiums,

advertising specialties, loyalty programs/patronage rewards, contests, sweepstakes,

games, and point-of-purchase (POP) displays.

Reasons for Sales Promotions

This could be a way of monitoring the performance of product management. Since

sales promotion can possibly provide immediate impact on consumer sales, it is

not unusual to use these strategies to attain their sales objectives.

Companies have to cope with pressure on sales margins which they can achieve

through paying closer attention to cost-effective sales volume. Since the results of

using sales promotional techniques can be determined accurately, sales volumes

can be easily predicted.

More importantly, sales promotions are not only effective in attaining short-term

sales; they are also more cost-effective compared to other integrated marketing

communications tools such as advertising. The progressive fragmentation of

audiences and the increase in media costs have tipped the balance in favor of sales

promotion techniques which are more likely to deliver demonstrable results.

Popularity of Sales Promotions

The reason sales promotions are gaining popularity is due to the fact that product and

sales management are very confident in their ability to handle the techniques of sales

promotion. Other forms of integrated marketing communication tools need to go

through a lot of thought and internal debates before funds are allocated or decisions

are arrived at.

Product managers also are more in control of the determination and implementation of

sales promotional activities. They have a freehand when it comes to what sales

strategies to use.

The importance of sales promotions as an integrated marketing communications tool

could be attributed to the increase in number of specialist sales promotions agencies

operating in certain places. In the past, sales promotion was viewed as part of other

marketing communications techniques. Today, it is one of the stand-alone effective

marketing tools.

Disadvantages of Sales Promotions

On the downside, the sales promotions, unlike other integrated marketing

communication tools, work often on a short-term basis only.

Unlike advertising or public relations, for instance, sales promotions strategies

may have no lasting impact on the brand.

..

.

Objectives of the project

To study the sales promotion activities conducted by the selected three modern

apparel retail outlets in Mumbai, namely Pantaloon Retail (I) Ltd., Westside and

Shopper’s stop.

Sub-Objectives

To study the current scenario of the retail industry in India

To study the current scenario of the apparel industry in India

To understand the importance of sales promotion activities

To study and analyse the sales promotion activities conducted by the selected

three apparel retail outlets in Mumbai

Research Methodology

1. Type of Research

Research is an original contribution to the existing stock of knowledge making for its

advancement. This research is an amalgamation of both formularize as well as

descriptive research.

2. Research approaches

There are two basic approached to research, quantitative approach and the qualitative

approach. The former involves the generation of data in quantitative form, which can

be subjected to rigorous quantitative analysis in a formal and rigid manner. This

approach is further sub-divided into inferential approach is to form a database from

which to infer characteristics or relationship of a population. This usually means

survey research where a sample of population is studied using questionnaire to

determine its characteristics and it is then inferred that the population has the same

characteristics.

Qualitative approach to research is concerned with subjective assessment of attitudes,

opinions and behaviour. Research in such a situation is a function of researcher’s

insight and impressions. Such an approach to research generates results either in non-

quantitative form or in the form, which are no subjected to rigorous quantitative

analysis.

Qualitative approach was been adopted in this study where data was collected by

personally interviewing the staff of the selected stores.

3. Sources of Data

The first part of the project was to study the current trends and the future of retail and

apparel industry in India and also to gain some basic knowledge on sales promotion.

This consisted of doing a secondary research about the industry with the help of some

text books and also through the internet.

Once the secondary research was done, a personal visit was conducted to the three

well known apparel retail outlets in Mumbai namely, Pantaloon Retail (I) Ltd.,

Westside and Shopper’s stop all of which are located in Mulund (W). The sales

promotion activities conducted in the stores were minutely observed. Personal

interviews with few of the staffs of each store were conducted to gain the in-depth

knowledge about the seasonal and non-seasonal sales promotion activities conducted

by the stores.

4. Sampling Plan:

(1) Population and Sampling unit

The sample unit is the individual unit of the selected sample. Here the sample unit

were the apparel retail outlets in Mumbai.

(2) Sample Size

This refers to the number of items selected from the universe to constitute the sample.

For the purpose of this study, a sample size of three apparel retail outlets were

selected, all of which are owned by the three different well known business groups.

(3) Sampling Procedure

There are various sampling procedures for selecting the sample procedures. The

sampling procedure followed here is Simple random sampling.

ANALYSIS

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 12 million square

feet of retail space, has over 1000 stores across 71 cities in India and employs over

30,000 people. 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, futurebazaar.com- a

subsidiary company, Home Solutions Retail (India) Limited, operates Home Town, a

large-format home solutions store, Collection i, selling home furniture products and

eZone, focused on catering to the consumer electronics segment. Pantaloon Retail was

recently awarded the International Retailer of the Year 2007 by the US-based

National Retail Federation (NRF) and the Emerging Market Retailer of the Year 2007

at the World Retail Congress held in Barcelona. Pantaloon Retail is the flagship

company of Future Group, a business group catering to the entire Indian consumption

space.

Future Group manifesto

“Future” – the word which signifies optimism, growth, achievement, strength, beauty,

rewards and perfection. Future encourages group to explore areas yet unexplored,

write rules yet unwritten; create new opportunities and new successes. To strive for a

glorious future brings group’s strength, ability to learn, unlearn and re-learn ability to

evolve. The Future Group will not wait for the Future to unfold itself but create future

scenarios in the consumer space and facilitate consumption because consumption is

development. Thereby, the future groups will effect socio-economic development for

the customers, employees, shareholders, associates and partners. The customers will

not just get what they need, but also get them where, how and when they need. Future

Group will not just post satisfactory results, but will write success stories.

Future Group will not just operate efficiently in the Indian economy, will evolve it.

Future Group will not just spot trends, group will set trends by marrying their

understanding of the Indian consumer to their needs of tomorrow.

It is this understanding that has helped Future Group succeeds. This will help

group succeed in the Future. The group shall keep relearning and in this process, do

just one thing.

“Rewrite Rules. Retain Values”

Group Vision

Future Group shall deliver Everything, Everywhere, Every time for Every Indian

Consumer in the most profitable manner.

Group Mission

To share the vision and belief that the customers and stakeholders shall be served

only by creating and executing future scenarios in the consumption space leading

to economic development.

To be the trendsetters in evolving delivery formats, creating retail realty, making

consumption affordable for all customer segments – for classes and for masses.

To infuse Indian brands with confidence and renewed ambition.

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

To ensure that positive attitude, sincerity, humility and united determination shall

be the driving forces to make the organization successful.

Formats, Group Companies & JV of Pantaloon Retail India Ltd

Men Section

Women Section

SWOT Analysis of Pantaloon Retail (India) Ltd.

Strength

Industry leader

First Mover Advantage

Higher Bargaining Power to higher

number of store and good coverage

Highest number of formats of stores

Easy to attract talent

Highest market share in Organized retail

Strong Good Will in market which helps

them in raising money for expansion,

forming JV, entering new market or new

format

Diversified business

Stronger private label brands

Weakness

Government rules and regulations

are not favorable

FDI policy not so favorable for tie-

ups

Cannibalization within the formats

Recession and global melt-down

affected the performance of the

book

Shrinking margins due higher input

costs

Opportunities

Luxury brand segments untapped by

pantaloon

Tie-up with foreign player to bring in

technical expertise and funds to expands

aggressively

Smaller formats should expand more

aggressively in tier II and tier III cities

Scope of Private labels

Integrating supply chain with other

retailers

License agreement with foreign brands

Restaurant and fast food chain included in

the current formats

Real estate price & Rentals lowering

Threats

Rapid expansion by current players

like Trent, Shoppers Stop, Reliance,

More, Bharti and Spencers

Tie-up of competitors with foreign

retail giants. For example Bharti &

Walmart

Market conditions highly volatile

last year due to meltdown

Sales Promotion techniques at Pantaloon Retail (I) Ltd.

1. Price-off offer:

Under this offer, products are sold at a price lower than the original price. This type of

scheme is designed to boost up sales in off-season and sometimes while introducing a

new product in the market.

Example:

Buy 2 men T-shirts at Rs. 599/- and 1 T-shirt at Rs. 399/- (MRP: Rs.399/Tshirt).

Buy 2 men T-shirts at Rs. 749/- and 1 T-shirt at Rs. 499/- (MRP: Rs.499/Tshirt).

Buy 3 men round neck T-shirts for Rs. 399/- (MRP: Rs.199/Tshirt).

Buy 2 men V neck T-shirts at Rs. 499/- and 1 T-shirt for Rs. 299/- (MRP:

Rs.299/Tshirt).

Buy 3 women T-shirts at Rs. 399/- (MRP: Rs.199/Tshirt).

Buy 1 woman top and get Rs. 100/- off on the bottoms.

2. Discounts:

Under this, the products are sold at a discounted price with percentage discounts on

the original price. This type of scheme is designed to boost up sales in off-season.

Example:

30% off on all the men formal shirts and trousers.

30 % off on all the women formals and casual outfits.

3. End of season sale:

End of Season sale or stock Clearance sale is been conducted at Pantaloon Factory

Outlets. They are offering surprising discounts as if you buy 2 any items of garments

and you will get 3 more with your choice absolutely free. These offers are given as

celebration of New Year.

4. Seasonal offers:

Pantaloon provides the customers with various discounts and price-off offers at the

stores and factory outlets on the seasons like winter and monsoon. This type of

scheme is designed to boost up sales in these seasons.

5. Festive offers:

Pantaloons have come up with festive offer during Diwali and Christmas by giving

away gifts for purchases that are made at the store for cheaper price. If you shop for

Rs. 4500 you get a Strolley bag worth Rs. 1299 for Rs. 149 only. If you shop for Rs.

2400 and above you get a lemon set, which is said to be imported, worth Rs. 649 for

Rs. 99 only.

6. New Year offers:

Pantaloons offers gifts for purchases that are make at the store during the New Year

for cheaper price. If you shop for Rs. 3500 you get a Imported Designer Glass Set for

Rs. 249 only. If you shop for Rs. 2500, you get a 3 nights and 4 days holiday package

for a couple on an International cruise.

7. Discount Coupons:

Pantaloon offers 25% discount on its large range of apparels. The coupon is valid for

limited period. This coupon is valid for 25% off on any product purchased

from www.pantaloon.futurebazaar.com.

8. Gift Vouchers:

Pantaloons Fresh Fashion offers many Pantaloons vouchers ranging different

denominations like Rs100, Rs.250, Rs.1000 and Rs.2000. These Pantaloons vouchers

are exchangeable with the products by the customers at all the Pantaloons Showrooms

in India. The vouchers are a better option rather than gifts for the employees and

customers as they are not bound for a particular thing to accept. They are given free

choice for choosing better gifts for themselves by using vouchers.

Pantaloons vouchers offer a wide range of products and services for shopping. It has

got coverage in 15 cities including 22 outlets. It thus offers good gift vouchers to its

customers, clients and sales force also to keep good relationships amongst each other.

The most famous Gift Vouchers by Pantaloons Fresh Fashion are Trendsetters and

Connoisseurs Choice.

Trendsetters Gift Voucher: This Pantaloons voucher to the customers for the

products of value of Rs.500 at all showrooms of Pantaloons all over India. This

voucher is valid for all apparels only. The amount of the products bought have to be

within the face value of the voucher, if it exceeds the actual amount the customer has

to pay the exceeded amount after the shopping. This gift voucher is valid till 1 year

from the issue date. It can not be exchanged to part or full cash.

Connoisseurs Choice: This Pantaloons voucher is available for the products valued

at Rs.500 at all Pantaloons showrooms. This is known to be as good as the cash under

Pantaloons. This is valid for one year after issuance. The voucher can not be

exchanged neither it can be encashed. The voucher can be converted for once. Any

balance on voucher will not be exchanged as cash or any product. The pantaloons all

over India have got this facility so that the customers can avail it any time any where.

9. Pantaloon loyalty program (Green card):

Green Card is a passport to a whole new world of exclusive benefits and privileges to

the customers.

Instant discounts for every time you shop at Pantaloons.

Exclusive shopping days to get hold of latest merchandise.

Regular updates on collections and promos via catalogues, sms and email.

Special invites to the most happening events.

Extended exchange periods and complimentary drops for alterations.

Exclusive billing counters and much more.

Shopper’s Stop Ltd., has redefined retail in India, taking it to the next level. From

being just the sale of goods to consumers, the company has created a unique aura

around retail and turned it into an experience, an indulgence. The pioneer of

organized retail in India, Shopper’s Stop Ltd., has been instrumental in bringing about

a retail revolution in the country and has become the highest benchmark for the

industry. With its growth plans firmly in place and undeniable leadership in the field,

Shopper’s Stop Ltd., is well on its way to raise the bar of performance even higher.

Shopper’s Stop Ltd. has made this purchase of goods extremely pleasurable. The

stores have redefined shopping by making it more than just a transaction. The entire

shopping process is the coming together of an amazing array of offerings, warm but

unobtrusive service and special privileges and benefits that translate every visit into

customer delight.

Since its inception in 1991, Shopper’s Stop Ltd., which was founded by the K Raheja

Corp. Group (Chandru L Raheja Group), one of the leading players in the country in

the business of real estate development and hotels, has been offering premium and

luxury value for the entire family. Shopper’s Stop Ltd. has metamorphosed from

being a chain of retail stores to emerging as a Fashion & Lifestyle destination, which

now includes retail concepts such as bookstores, cafés and high-end lifestyle

merchandise for the growing affluent middle class in India. Today, its name is

synonymous with superior quality product, services and above all, an international

shopping experience.

In order to enhance the level of customer service and gain insight into new and

emerging practices followed internationally, Shopper’s Stop Ltd. is a member of the

Inter Continental Group of Department Stores (IGDS). It is the only Indian member

along with 29 other experienced retailers from all over the world. Leveraging

expertise, excellence and experience, Shopper’s Stop Ltd. has become a benchmark

for the Indian retail industry to follow. A pioneer of organized retail in India,

Shoppers’ Stop today, is the country’s biggest Department Store Chain. It offers

customers an international shopping environment and a world-class shopping

experience through its 20 stores in 11 cities. It houses a host of international and

domestic brands across categories such as apparel, accessories, cosmetics, home &

kitchenware as also its own private brands. Shoppers’ Stop offers a wide range of

brands (more than 400 brands) for the entire family to choose from. Exclusive and

established brands share shelf space to offer an array of choices customers across all

ages, tastes and occasions. Shoppers’ Stop is the single largest retailer for Levi’s

Strauss, Pepe, Lee, Arrow, Zodiac, Ray-Ban, Swatch, among others.

Private Labels

Shoppers Stop has a range of Private Labels across Men's casual wear to formals to

Women's wear. Private Labels contribute a mere 20% to its Total Sales. Here are the

Private Labels Sold in Shoppers Stop outlet,

Kashish - Mens's Ethnic Wear

Stop - Western Wear - Men & Women

Life - Mens Casual Wear , Jeans Wear

Mario Zegnoti - Men's Formal Wear

Acropolis - Men's Formal Wear

Push and Shove - Eye Wear

Vettorio Fratini - Premium Men's Wear

Men Section

Women Section

SWOT ANALYSIS OF SHOPPERS STOP:

Strengths

Variety

Range

Different Brands

Pioneer

Loyal customer

Low risk

Good financial position

Presence across various

segments

Parikrama the festival

Weakness

Very high prices

Less Schemes

Less Discounts

Competition from standalone stores

Late entry into value retailing

Store makeover expenditure

Threats

Government Policies

Entrance of New Players

High attrition

Lesser consumer spending

Entry of foreign players

Unorganized sector

Independent stores

Opportunities

Awareness about the brands

Quality

Youngsters

Higher disposable income

Collaborate

Private levels

Tier 2 & tier 3 cities

Enter new consumer goods

segments

Sales Promotion techniques at Shoppers stop

1. Price-off offer:

Under this offer, products are sold at a price lower than the original price. This type of

scheme is designed to boost up sales in off-season and sometimes while introducing a

new product in the market.

Example:

Buy 2 men T-shirts at Rs. 799/- and 1 T-shirt at Rs. 499/- (MRP: Rs.499/Tshirt).

Buy 3 women T-shirts at Rs. 999/- (MRP: Rs.499/Tshirt).

2. Discounts:

Under this, the products are sold at a discounted price with percentage discounts on

the original price. This type of scheme is designed to boost up sales in off-season.

Example:

20% off on all the men formal shirts and trousers.

20 % off on all the women formals and casual outfits.

3. End of season sale:

End of Season sale or stock Clearance sale is been conducted at Shopper’s stop. They

are offering surprising discounts upto 50% on all the men and women apparels. These

offers were given last year for limited period in the month of September.

4. Seasonal offers:

Shopper’s stop provides the customers with various discounts and price-off offers at

the stores on the seasons like winter and monsoon. This type of scheme is designed to

boost up sales in these seasons. Different offers are provided by the stores during

these periods from June to January.

5. Festive offers:

Shopper’s stop have come up with festive offer during Diwali and Christmas by

giving away gifts for purchases that are made at the store for cheaper price or free. If

you purchase men apparel worth Rs. 6000/-, the you are entitled to get a Polo bag

worth Rs. 2000/- absolutely free.

6. Gift Vouchers:

Shoppers Stop offer Gift Vouchers of denomination ranging from Rs. 250 to Rs.

5000.

7. Republic Day offer:

Shopper’s stop conducted 3 Day Surprise offer on the occasion of Republic Day,

giving flat 20 percent discount coupons on purchase of goods worth Rs. 3000/-, which

can be redeemed on the next purchase.

8. Contests:

Shoppers Stop has announced a 101-day Shopping Bonanza to pull in customers into

the stores. Lucky draw winners of the contest will get to see one of the seven wonders

of the world and two lucky couples who get the grand prize will be treated to a round-

trip which will cover all the seven wonders of the world.

9. Shopper’s stop loyalty program (First Citizen Citibank credit card)

As s First Citizen Credit card member, you get the benefits of the Shopper’s Stop

loyalty program, First Citizen. The First Citizen membership entitles you to exclusive

privileges such as product previews, priority billing and other special benefits. Add to

this, the fabulous experience of shopping at the premier Shopper’s stop outlets across

the country.

10. Exchange offer:

Under this offer, you have to bring in you old salwar kameez and take away a new

one with discounted price.

Style, affordable prices, quality these are the factors that have shaped Westside's

success story in the retail fashion stores business. Launched in 1998 in Bangalore, the

Westside chain has, ever since, been setting the standards for other fashion retailers to

follow.

Established in 1998 as part of the Tata Group, Trent Ltd. operates Westside, one of

India's largest and fastest growing chains of retail stores. The Westside stores have

numerous departments to meet the varied shopping needs of customers. These include

Menswear, Women’s wear, Kid’s wear, Footwear, Cosmetics, Perfumes and

Handbags, Household Accessories, lingerie, and Gifts. The company has already

established 36 Westside departmental stores (measuring 15,000-30,000 square feet

each) in Ahmedabad, Bangalore, Chennai, Delhi, Gurgaon, Ghaziabad & Noida (to be

considered as 1 city), Hyderabad, Indore, Jaipur, Kolkata, Ludhiana, Lucknow,

Mumbai, Mysore, Nagpur, Pune, Rajkot, Surat, Vadodara and Jammu. The company

hopes to expand rapidly with similar format stores that offer a fine balance between

style and price retailing.

Trent ventured into the hypermarket business in 2004 with Star Bazaar, providing an

ample assortment of products made available at the lowest prices, aptly exemplifying

its ‘Chota Budget, Lambi Shopping’ motto. At present Star Bazaar has 4 stores in 3

cities located in Ahmedabad, Mumbai and Bangalore. This store offers customers an

eclectic array of products that include staple foods, beverages, health and beauty

products, vegetables, fruits, dairy products, consumer electronics and household items

at the most affordable prices. This story began circa 1998 when The Tatas acquired

Littlewoods – a London based retail chain. This acquisition was followed by the

establishment of Trent Ltd (a Tata enterprise that presently operates Westside).

Littlewoods was subsequently renamed Westside. In a rapidly evolving retail

scenario, Westside has carved a niche for its brand of merchandise creating a loyal

following. Currently, the company has 36 Westside stores measuring 15,000-30,000

square feet each across 20 cities. With a variety of designs and styles, everything at

Westside is exclusively designed and the merchandise ranges from stylized clothes,

footwear and accessories for men, women and children to well-co-coordinated table

linens, artifacts, home accessories and furnishings. Well-designed interiors, sprawling

space, prime locations and coffee shops enhance the customers’ shopping experience.

SWOT ANALYSIS OF WESTSIDE:

Strengths

Growing at the faster pace

Brand name of TATA’s.

Good customer base.

Apparels are cheaper

Attractive promotional schemes

and heavy discounts

Quality and branded stuff only

Location advantage

Weakness

Not much product range for

middle class

Facing problems due to political

environment

Need help in taking over

properties and real estate

Need some concessions from

labor laws

Lack of differentiation

Poor inventory turns and stock

availability

Opportunities

Huge untapped market

Rising disposable income

Urbanization

Threats

Competition from organized

retail players

Competition from local retailers.

Ladies Section

Men Section

Kids Section

PRIVATE LABELS

Private label products or services are typically those manufactured or provided by

one company for offer under another company's brand. Private label goods and

services are available in a wide range of industries from food to cosmetics to web

hosting. They are often positioned as lower cost alternatives to regional, national or

international brand. Westside has many private labels in its merchandise portfolio.

Private labels in Westside include-

2 F 4 U

SRC

Gia

Urban angel

Intima

David Jones

Ascot

All these brands are produced for Westside only and can be found in Westside only.

These apparel brands are given separate space for displaying their merchandise and

more promotional offers are there on them to increase their sales. At some places,

these private brands are mixed with branded clothes so in that case these private labels

are put in lower shelves. At eyesight level, branded clothes are put.

Sales Promotion techniques at Westside

1. Festive offers:

With this Diwali Delight offer from Westside if you shop from their store for Rs.

5000 and above you get a gift voucher from them for Rs. 1000 for free. And if you

shop for Rs. 2500 and above you get a free gift voucher worth Rs. 400. This is valid

only if you purchase their in-house merchandise or brands only and not valid if you

chose to buy other brands available at their store.

2. End of season sale:

End of Season sale or stock Clearance sale is been conducted at Westside. They are

offering surprising discounts upto 50% on all the men and women apparels. These

offers were given last year for limited period in the month of January and July.

3. Gift Vouchers:

Westside offers Gift Vouchers of denomination ranging from Rs. 100 to Rs. 10000.

4. Westside loyalty program (Club west card program):

An assured return-and-exchange policy reinforces customer confidence in the chain.

Another winning Westside idea is Club West, a customer loyalty program launched in

May 2001. The 30,000-plus members of this club get rebates at restaurants and on holiday

packages from the Taj Group of Hotels, home delivery of alterations, and best of all,

special shopping hours on the first day of any discount sales event organized by the chain.

5. Contests:

Shop for Rs 1,000 at Westside, participate in the lucky draw and win the grand prize -

a complete holiday packages for two to Macau. You could also win holiday packages

to breathtaking beach destinations in India including Goa, Kovalam, Puri and

Pondicherry.

6. Discounts:

Under this, the products are sold at a discounted price with percentage discounts on

the original price. This type of scheme is designed to boost up sales in off-season.

Example:

20 - 50% off on all the men formal shirts and trousers.

20 – 50 % off on all the women formals and casual outfits.

Findings

Sales Promotion Pantaloon Westside Shopper’s Stop

1.End of season Yes Yes Yes

2.Festive Promotions (Diwali, Christmas etc)

Yes Yes Yes

Loyalty card Programme

Yes Yes Yes

Special Promotion (event)

Yes (Exchange offer) No Yes (Exchange offer)

Joint promotion No No No

Media used Hoardings, print, electronic (SMS, E-mail),POP In-store media

Print, electronic, hoardings, In-store media

Print, electronic, hoardings, In-store media

Promotion type

Price off, free gifts,exchange offer,Festive offers,End of season sale,Loyalty program

Gift vouchers, discount, contest,End of season

Discounts, gift vouchers,free gifts,exchange offer,End of season sale,Loyalty program

From the above table, it is clear that all three stores engage in end of season sale. This

reinforces the fact that seasonality affects apparel sector and hence it becomes critical for

a retailer to clear off the stocks at the end of season, otherwise, he may have to incur

substantial inventory carrying costs, allocate scarce shelf space and out of fashion

apparels maybe worthless. Thus stock clearance seems to be very important objective for

apparel retailer in using end of season sale wherein discount given is upto 50% of the

MRP (Maximum retail price).

All the three stores use loyalty cards to reward loyal users and encourage them to visit the

store often and buy more by offering wide range for men, women and children. Some

store also offer home furnishings, accessories and footwear, thereby providing

convenience for one stop shopping.

Joint sales promotion involves tieing up with other brands like, MacDonald,

Havmore, Gold’s (local) Gym and Kaya skin clinic, etc. None of the three stores has

yet explored avenue of joint sales promotion. Such joint promotions have advantages

in terms of sharing costs of promotions, cross selling opportunities to each other’s

customers, higher visibility etc.

In terms of type of consumer sales promotions, almost everyone used discount,

coupon programmes and lucky draws, contests, gift, buy one get one free type of

promotions. Pantaloon and Shopper’s Stop uses exchange offer.

Conclusion

Usage of sales promotion activities has a direct impact on consumer behaviour as it

motivates a consumer to buy now rather than in future, enhances value of an offer

temporarily till the promotion period, encourages switching, reinforce or reward loyalty

etc.

Broadly, objectives set for these activities are;

To generate store traffic,

To move excess inventory,

To enhance store image and

To create a price image (high or low).

Traffic building is achieved by special event promotions like Diwali, Rakshabandhan

promotions; inventory reduction through end of season sale; creation and building store

image through feature advertising and displays and joint promotions and price image by

highlighting the discounts. It helps consumer reduce not only financial risk but also

psychological and social risk by making consumer confident of his/her purchase,

conformation to group norms by shopping at famous stores/brands and possibility of

acquiring well known branded apparel during promotions. Promotions may induce non

buyers to walk in to the store and loyalty programmes may encourage them to buy more,

more often or upgrade to better quality. Exciting promotions also have tendency to

generate positive word of mouth and help consumer feel a smart shopper. Thus, not only

provide utilitarian benefits like, saving of money, time or quality up gradation but

hedonic benefits like feeling confident, feeling of excitement and entertainment etc.

Execution of the sales promotion activities also require proper coordination of selling effort

and availability of promoted merchandise.

Apparel sector is likely to grow with growing Indian economy. Many multinational players

either have already plunged into Indian market or plan to do so in apparel sector. They will

bring many promotional practices which they have been following in developed markets

which will increase the use of sales promotion activities even further. Indian brands will have

to withstand turbulent conditions and learn to survive. If the role of such promotional

activities is understood well, it may help any player a long way to survive and grow.

Bibliography

www.google.com

www.pantaloon.com

www.mywestside.com

www.shoppersstop.com

http://besteoffers.blogspot.com/2009/12/free-discount-

coupon-of-25-of.html

www.futurebazaar.com