51297290 28509242 Study on Consumer Sales Promotion of Apparel Retail Stores Himanshu

8/2/2019 51297290 28509242 Study on Consumer Sales Promotion of Apparel Retail Stores Himanshu

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SWAYAMSIDDHICOLLEGEOFMANAGEMENT&RESEARCH

APROJECTREPORTONSTUDYONCONSUMERSALESPROMOTIONSOFAPPARELRETAILSTORES

SUBMITTEDBY:PARINAYSHASHIKANTMATKARMMSBATCH2008-2010(MARKETING)

UNDERTHEGUIDANCEOF

PROF.TUSHARCHAKRAVARTY

INTHEPARTIALFULFILLMENTOFMASTERSOFMANAGEMENTSTUDIES(MMS)OF


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UNIVERSITYOFMUMBAI

[ApprovedbyAICTE,AffiliatedtoUniversityofMumbai&Govt.ofMaharashtraDTECodeMB336](AnISO9001-2000CertifiedInstitute)SonadeviWeightBridge,NearOctroiNaka,KalyanRoad,Temghar,Bhiwandi,Dist.Thane421302

CERTIFICATEThisistocertifythatMr.PARINAYSHASHIKANTMATKAR(RollNo.1328)studentofSecondYearMasterofManagementStudies(MMS/MBA)ofSWAYAMSIDDHICOLLEGEOFMANAGEMENT&RESEARCHhassuccessfullycompletedthewinterprojectworktitledSTUDYONCONSUMERSALESPROMOTIONSOFAPPARELRETAILSTORESinpartialfulfilmentforthedegreeofMasterofManagementStudiesofUniversityofMumbai.

Date:

//2010

Signatureoftheprojectguide

Director

Prof.TusharChakravarty

Dr.NileshChatterjee


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DeclarationI,Mr.ParinayShashikantMatkar,herebydeclarethattheprojectreporttitledStudyonconsumersalespromotionsofapparelretailstoresistherecordofauthenticworkcarriedoutbymeduringtheacademicyear20082010andhasnotsubmittedtoanyotheruniversityorinstitutiontowardstheawardofanydegree.

Date://2010

______________________Signature(ParinayS.Mtakar)


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AcknowledgementI,Mr.ParinayShashikantMatkar(SwayamSiddhiCollegeofManagementandResearch,Bhiwandi),wouldliketothankmyprojectguide,Prof.TusharChakravartyforhisvaluableguidanceandsupportwhichhashelpedmeimmenselyincompletingthisproject.IalsowanttothankthecollegedirectorMr.NileshChatterjeeandotherprofessors,myfriendsandcolleagues,whohavedirectlyorindirectlyhelpedmeoutinthecompletionofmyproject.Lastly,Iwouldliketothanktheentirestaffofallthestoresfortheircooperationduringmyprojectwork.


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INDEX

TitleIntroductiontoretailingApparelRetailIndustryMajorplayersinApparelRetailSalesPromotionObjectivesResearchMethodologyAnalysisFindingsConclusionBibliography

Pageno.1368111215414344


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ExecutiveSummaryInamarketlikeIndia,thereisaconstantclashbetweenchallengesandopportunitiesbutchancesfavourthosecompaniesthataretryingtoestablishthemselves.Tosustaininsuchavolatilemarket,companieshavetobringinnovativesolutions.Withtheadventofmodernformatretailersandthegrowthofplasticcards,affluenturbanIndiansareshoppinglikeneverbefore.Asapparelretailisledbyfashion,aretailerneedstokeepaclosewatchonfashionamongstteenagers,astheyarethetrendsetters.Seasonalvariationsonstockingpatternandneedtoclearinventoryattheendofseasonshouldbeunderstoodbyapparelretailer.Thishighlightstheimportanceofsalespromotions-shorttermactivitieswhichinducestradeorconsumertobuynow,ratherthaninfuture,asthevalueofapparelaftertheseasongoesdownsubstantiallyandinventorycarryingburdenturnsouttobeveryhigh.Apparelretailerneedstounderstandcriticalroleofsalespromotions.ThetopicoftheprojectistoperformastudyonconsumersalespromotionactivitiesoftheapparelretailstoresinMumbai.Toaccomplishtheabove,threeapparelretailstoresofdifferentwellknownbusinessgroups,locatedinMulund(W)areaofMumbaiweresurveyedandinterviewed.Theresponseswereanalyzedandresultswereobtained.Thecorepurposeofthesurveywastostudythesalespromotionactivitiesperformedbyapparelretailoutletswhichresultsinstimulatingproductinterest,trial,purchaseandstockclearance.

Introductiontoretailing


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TherevolutioninretailingindustryhasbroughtmanychangesandalsoopeneddoorformanyIndianaswellasforeignplayers.InamarketlikeIndia,thereisaconstantclashbetweenchallengesandopportunitiesbutchancesfavourthosecompaniesthataretryingtoestablishthemselves.Thus,tosustaininamarketlikeIndia,companieshavetobringinnovativesolutions.Indianmarkethaspotentialtoaccommodatemanyretailplayers,becausestillasmallproportionofthepieisorganized.RetailingisstillinitsinfancyinIndia.Inthenameofretailing,theunorganisedretailinghasdominatedtheIndianlandscapesofar.Accordingtoanestimate,theunorganizedretailsectorhas97%presencewhereastheorganizedaccountsformerely3%.IndustryhasalreadypredictedatrilliondollarmarketinretailsectorinIndiaby2010.However,theretailindustryinIndiaisundergoingamajorshake-upasthecountryiswitnessingaretailrevolution.Theoldtraditionalformatsareslowlychangingintomorecomplexandbiggerformats.Mallsandmegamallsarecomingupinalmostalltheplaces,beitmetrosorthesmallercities,acrossthelengthandbreadthofthecountry.AMcKinseyreportonIndia(2004)saysorganizedretailingwouldincreasetheefficiencyandproductivityofentiregamutofeconomicactivities,andwouldhelpinachievinghigherGDPgrowth.At6%,theshareofemploymentofretailinIndiaislow,evenwhencomparedtoBrazil(14%),andPoland(12%).GovtofIndiasplanofchangingtheFDIguidelinesinthissectorspeaksoftheimportanceattachedtoretailing.RecentmovesbybigcorporatehouseslikeRelianceIndustrieshasfurtherfuelledthemajorinvestmentsinretailsector.Astrategicalliance,landacquisitionsinprimeareasgivetheessenceofthemoodinthissector.BothMNCsandIndianfirmswanttogettheirshareofthisburgeoningpie.Notablei

nIndianfirmsarePantaloonsRetail&BigBazaar,TrentsWestside,Shoppersstop,Reliance,Subhiskha,WillsLifestylestores,CafeCoffeeDay,whicharepresentinIndiaindifferentretailformats.Wal-MartstoreshavejuststartedoperationsinIndia.SomeleadingretailcoffeechainsoftheworldlikeStarbucks,BarniesareplanningtoexpandinamajorwayinIndia.

TheIndianretailsector


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Indiaisthecountryhavingthemostunorganizedretailmarket.Traditionallyitwasafamilyslivelihood,withtheirshopinthefrontandhouseattheback,whiletheyruntheretailbusiness.Morethan99%retailersfunctioninlessthan500squarefeetofshoppingspace.TheIndianretailsectorisestimatedataroundRs900,000crore,ofwhichtheorganizedsectoraccountsforamere3percentindicatingahugepotentialmarketopportunitythatislyinginthewaitingfortheconsumer-savvyorganizedretailer.PurchasingpowerofIndianurbanconsumerisgrowingandbrandedmerchandiseincategorieslikeApparels,Cosmetics,Shoes,Watches,Beverages,FoodandevenJewellery,areslowlybecominglifestyleproductsthatarewidelyacceptedbytheurbanIndianconsumer.Indianretailersneedtotakeadvantageofthisgrowthandaimingtogrow,diversifyandintroducenewformatshastopaymoreattentiontothebrandbuildingprocess.Theemphasishereisonretailasabrandratherthanretailerssellingbrands.Thefocusshouldbeonbrandingtheretailbusinessitself.ThereisnodoubtthattheIndianretailsceneisbooming.AnumberoflargecorporatehousesTatas,Rahejas,Piramalss,Goenkashavealreadymadetheirforayintothisarena,withbeautyandhealthstores,supermarkets,selfservicemusicstores,newagebookstores,every-day-low-pricestores,computersandperipheralsstores,officeequipmentstoresandhome/buildingconstructionstores.Todaytheorganizedplayershaveattackedeveryretailcategory.

Apparelretailindustry


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InIndia,clothingretailaccountsfor36%oforganisedretailbusiness.Itisthelargestsector.Ready-madeapparelaccountedforanestimated20%ofdomesticclothingsalesin2005.Withgrowingworkingwomenwearingwesternweartowork,andpressedfortime,marketforgoodreadymadeclothesislikelytogrow.Indiaisafilmcrazynation,andthelargestproduceroffilms,withmorethan1,000everyyear.TheyprovideentertainmentandanescapefromrealityforIndiasmasses,andsetthepopularfashiontrend.BollywoodfashionshavebecomepanIndian.Theyaffectvarioussectorsofthemarketincludingclothing,footwear,weddingsandfashionaccessories.Withtheadventofmodernformatretailersandthegrowthofplasticcards,affluenturbanIndianwomenareshoppinglikeneverbefore.Theyspendmorningsbrowsinginstoreslookingfordealsorlateststyles.Upperincomeurbanwomenareadoptingethnicwears.ThesearedesignerclothesthatincorporateIndianmotifs,ethnicfabricsandareafusionofwesternandIndianstyles.Inthelargeurbancentres,apparelretailers,likeShoppersStop,WestsideandPantaloonhavepopularisedtheirprivatelabels,whichhaveattractedurbanshoppers.Westsidecarriesonlyitsownprivatelabels,whilefortheotherstores,20-30%oftheirapparelturnoverisfromprivatelabels.Customershaveloyaltytoastoreratherthananyparticulargarmentbrand.Thishasledtoathrivingunbrandedorlocalbrandmarketforready-to-wearclothesleadingtoseverecompetition.HenceorganizedretailerslikeLifestyle,forinstance,hasaloyaltyprogrammecalled`TheInnerCircle ,whilePantaloonsoffersa`GreenCard Rewardsprogrammes,Westsidehas`ClubWest towoothecustomers.Customerslooktodesignandfitoftheclothes,andusetheshopsnameasaqualitystandard.CharacteristicsofApparelretailsectorAsapparelretailisledbyf

ashion,aplayerneedstokeepaclosewatchonfashionamongstteenagersastheyarethetrendsetters.RoleofBollywoodinspreadingfashionneedstobeunderstood.Seasonalvariationsonstockingpatternandneedtoclearinventoryattheendofseasonshouldbeunderstoodbyapparelretailer.Typicallyonceanitemissoldfromtheoutlet,retailerensuresthatthereisnorepetitionofsame.Itgetsreplacedbydifferentdesign,styleandcolour.Importanceofstorelayout,dcorisverycritical.Apersonvisitingthestorefrequentlylikestosee


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changesinthelayoutotherwisehemaycarrytheimpressionthatstocksarenotmovingoutofthestore.Categorymanagementbecomesverycrucialfunctionastransformationofdesignintoproductionanddeliveryhastobecompletedbeforefashionorfadchangesinthemarket.Thishighlightstheimportanceofsalespromotions-shorttermactivitieswhichinducestradeorconsumertobuynowratherthaninfutureasthevalueofapparelaftertheseasongoesdownsubstantiallyandinventorycarryingburdenturnsouttobeveryhigh.Apparelretailerneedstounderstandcriticalroleofsalespromotions.Attractivepromotionsinducespurchaseacceleration,stockpilingandbrandswitchingonthepartofaconsumerwhichsubstantiallyreducesretailersfinancialandinventoryriskandconsumersfinancialriskandpsychologicalrisk.

SeasonsofRetailing


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SummerSeasonItisusuallyfromMaytoJuly.

Lowsalesarerecordedduringthisperiod.Thisseasonisgoodforpromotionsandlaunchingnewadvertisementcampaigns.FallSeasonAugustandSeptemberareimportantmonths.Retailersareprovidedagoodopportunitytoincreasetheirshare.HolidaySeasonItbeginsusuallyattheendofOctoberandcarriesthroughthefourthquarterendinginJanuary.FestivalslikeDusherra,Diwali,ChristmasandNewYearEvebringmorecustomers.Usuallyitisthebesttimeforretailers.SpringSeasonItlastsfromFebruarytoMayFewerfootfallsarerecordedinmalls.

CustomersMenWhilementendtoprioritizefashiontoalesserdegreethanwomen,right-

lookandthedescentimageisstillimportanttothem.Mentendtospendmoremoneyonelectronicgadgets,food,sportsgoods

andmusic.WomenTeengirlsrepresentalucrativeopportunityforretailers.Theyaregoingto

becomethefuturebuyers.Teengirlsaremoretrendsavvy.Itisnotjusttheclothesandaccessories,but

thewholelookthattheteengirlsaspiretodefine.Womenspendmoreonjewelleryandhouseholditemsandthusthey

contributealotmoreintermsofrevenue.

MajorPlayersinapparelretail


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ShoppersStopK.RahejagroupofcompaniesfoundedShoppers StoponOctober27,1991.Theorganizationhadalreadymadeitspresencefeltinthehospitalityandrealestatesector,andnowithascreatedalandmarkintheRetailsectorwithShoppers Stop.Shoppers Stopisfamousfortheexpertiseandacumenrelatingtothecurrentpracticesoftheindustry.Itprovidesqualityservices,productsandtherightkindofshoppingenvironment.Ithasdevelopeditselfasahouseholdnameandhassethighstandardsforitselfwiththemissionstatement:Nothingbutthebest".In2005,thecompanyhad25storeswithaturnoverofRs.1000croresand7lakhsq.feetretailspaceintheyear2005.Theaverageageoftheemployeesintheorganizationis25years.PantaloonRetail(I)Ltd.PantaloonRetailistheflagshipenterpriseoftheFutureGroup.PantaloonRetail(India)LimitedhasspreadacrossvariousbusinessesandcitiesinIndia.Pantaloonownsmultipleretailformatsandisabletocatertoalargesectionofthesociety.Thecompanyhasover140storesacross32citiesinIndiaand14000employees.Theorganizationmadeanincursionintothemodernretail(fashion)in1997.BigBazaar,ahypermarketchain,wasintroducedintheyear2001,withanIndiantouchofconvenienceandhygiene.FoodBazaar,foodandgrocerychain,andCentralMalllocatedatvariousMetrosareotherimportantpartsofthegroup.WestsideTataGroupfoundedTrentLtd.(Westside)in1998.TheacquisitionofaLondonbasedretailchainLittlewoodsbytheTataswasfollowedbytheestablishmentofTrentLtd,whichwaslaterrenamedasWestside.Itisoneofthelargestandfastestgrowingchainsservingthecustomersinvariouscategories,includingmen swear,women swear,kid swear,footwear,cosmetics,perfumesandhandbags,householdaccessories,lingerieandgifts.Thecompanyoffersproductswithabalance

betweenstyleandprice.Thereare25WestsidedepartmentalstoresoperatinginvariouscitieslikeMumbai,Hyderabad,Pune,Delhi,Banglore,Noida,Gurgaon,Nagpur,Kolkataandmanyothers.LifestyleInternationalPvt.Ltd.


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LifestyleisaninternationalfashionstoreoftheLandmarkGroup,aDubai-basedcompany.LifestylecreatedarevolutionintheIndianRetailIndustrybybringingatrulyinternationalshoppingexperience.ItwaslaunchedinChennai,andnowitisoneofthelargestprofessionalretailersspreadacross3,25,000sq.ft.invariouscitiessuchasChennai,Gurgaon,Mumbai,HyderabadandBanglore.Itisaheavenforshopperswithavibrantandspicylifestyle.Itprovidesawidechoiceofproductsataffordablepriceswithaconvenientworld-classenvironmentandafriendlylayout.Beingoneofthebestshoppingdestinations,ithaswonthe MostRespectedCompanyintheIndianRetailSector andthe MostAdmiredLargeFormatRetailCompany

awardsinIndia.GlobusGlobuswaslaunchedin1998asapartoftheRajanRahejaGroup.ThecompanyopeneditsfirstoutletinIndorefollowedbytwomoreinChennai.Theflagshipstorewasopenedon1stNovember2001inMumbai,followedbyavibrantstoreinNewDelhi.Subsequently,itsstoreswerelaunchedinBangalore,Ghaziabad,Kanpur,Ahmedabad,Noida,Lucknow,VaranasiandHyderabad.Theorganizationhasaninnovativeandadaptiveenvironment.Globushasachievedcustomerdelightbypresentingvalueproductsandservicesthroughcontinuousimprovement.WillsLifestyleITChasmadeapresenceintheRetailsectorthroughitsexclusivespecialtystore WillsLifestyle .Ithasdevelopeditselfasafashiondestinationofferingarangeofapparelsandaccessories.Topdesignersoftheindustrydesigntheseclothes.ThestoreoffersWillsClassicworkwear,WillsSportrelaxedwear,fashionaccessoriesandbath&bodycareproducts.WillsLifestylehasalsodevelopedJohnPlayersasabrandthatoffersafinecollectionofclothesfordynamicandvibrantpeople.ITCbelievesinthephilosophyofenjoyingthechangingenvironment.ThisseasonWills

Lifestylehasbroughtacompletearrayofproductsforveryaspectandmoodoflifebeitwork,relaxationorparty.Thestoreoffersatruly InternationalShoppingExperience throughworld-classenvironmentandarobustportfolioofofferings.

SalesPromotion


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Salespromotionsareshort-termincentivestoencouragethepurchaseorsaleofaproductorservice.Salespromotionincludesseveralcommunicationsactivitiesthatattempttoprovideaddedvalueorincentivestoconsumers,wholesalers,retailers,orotherorganizationalcustomerstostimulateimmediatesales.Theseeffortscanattempttostimulateproductinterest,trial,orpurchase.Examplesofdevicesusedinsalespromotionincludecoupons,samples,premiums,point-of-purchase(POP)displays,contests,rebates,andsweepstakesSalesPromotionStrategiesTherearethreetypesofsalespromotionstrategies:Push,Pull,oracombinationofthetwo.Apushstrategyinvolvesconvincingtradeintermediarychannelmembersto"push"theproductthroughthedistributionchannelstotheultimateconsumerviapromotionsandpersonalsellingefforts.Thecompanypromotestheproductthrougharesellerwhointurnpromotesittoyetanotherresellerorthefinalconsumer.Trade-promotionobjectivesaretopersuaderetailersorwholesalerstocarryabrand,giveabrandshelfspace,promoteabrandinadvertising,and/orpushabrandtofinalconsumers.Typicaltacticsemployedinpushstrategyare:allowances,buy-backguarantees,freetrials,contests,specialtyadvertisingitems,discounts,displays,andpremiums.

Apullstrategyattemptstogetconsumersto"pull"theproductfromthemanufacturerthroughthemarketingchannel.Thecompanyfocusesitsmarketingcommunicationseffortsonconsumersinthehopethatitstimulatesinterestanddemandfortheproductattheend-userlevel.Thisstrategyisoftenemployedifdistributorsarereluctantto


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carryaproductbecauseitgetsasmanyconsumersaspossibletogotoretailoutletsandrequesttheproduct,thuspullingitthroughthechannel.Consumer-promotionobjectivesaretoenticeconsumerstotryanewproduct,attractcustomersawayfromcompetitorsproducts,getconsumersto"loadup"onamatureproduct,hold&rewardloyalcustomers,andbuildconsumerrelationships.Typicaltacticsemployedinpullstrategyare:samples,coupons,cashrefundsandrebates,premiums,advertisingspecialties,loyaltyprograms/patronagerewards,contests,sweepstakes,games,andpoint-of-purchase(POP)displays.ReasonsforSalesPromotions

Thiscouldbeawayofmonitoringtheperformanceofproductmanagement.

Sincesalespromotioncanpossiblyprovideimmediateimpactonconsumersales,itisnotunusualtousethesestrategiestoattaintheirsalesobjectives.

Companieshavetocopewithpressureonsalesmarginswhichtheycan

achievethroughpayingcloserattentiontocost-effectivesalesvolume.Sincetheresultsofusingsalespromotionaltechniquescanbedeterminedaccurately,salesvolumescanbeeasilypredicted.

Moreimportantly,salespromotionsarenotonlyeffectiveinattainingshortcommunicationstoolssuchasadvertising.Theprogressive

termsales;theyarealsomorecost-effectivecomparedtootherintegratedmarketingfragmentationofaudiencesandtheincreaseinmediacostshavetippedthebalanceinfavorofsalespromotiontechniqueswhicharemorelikelytodeliverdemonstrableresults.PopularityofSalesPromotionsThereasonsalespromotionsaregainingpopularityisduetothefactthatproductandsalesmanagementareveryconfidentintheirabilitytohandlethetechniquesofsalespromotion.Otherformsofintegratedmarketingcommunicationtoolsneedtogothroughalotofthoughtandinternaldebatesbeforefundsareallocatedordecisionsarearrivedat.


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Productmanagersalsoaremoreincontrolofthedeterminationandimplementationofsalespromotionalactivities.Theyhaveafreehandwhenitcomestowhatsalesstrategiestouse.Theimportanceofsalespromotionsasanintegratedmarketingcommunicationstoolcouldbeattributedtotheincreaseinnumberofspecialistsalespromotionsagenciesoperatingincertainplaces.Inthepast,salespromotionwasviewedaspartofothermarketingcommunicationstechniques.Today,itisoneofthestand-aloneeffectivemarketingtools.DisadvantagesofSalesPromotions

Onthedownside,thesalespromotions,unlikeotherintegratedmarketingUnlikeadvertisingorpublicrelations,forinstance,salespromotionsstrategies

communicationtools,workoftenonashort-termbasisonly.

mayhavenolastingimpactonthebrand.

...


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ObjectivesoftheprojectTostudythesalespromotionactivitiesconductedbytheselectedthreemodernapparelretailoutletsinMumbai,namelyPantaloonRetail(I)Ltd.,WestsideandShoppersstop.

Sub-ObjectivesTostudythecurrentscenariooftheretailindustryinIndiaTostudythecurrntscenariooftheapparelindustryinIndiaTounderstandtheimportanceofsalespromotionactivitiesTostudyandanalysethesalespromotionactivitiesconductedbytheselectedthreeapparelretailoutletsinMumbai


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ResearchMethodology1.TypeofResearchResearchisanoriginalcontributiontotheexistingstockofknowledgemakingforitsadvancement.Thisresearchisanamalgamationofbothformularizeaswellasdescriptiveresearch.

2.ResearchapproachesTherearetwobasicapproachedtoresearch,quantitativeapproachandthequalitativeapproach.Theformerinvolvesthegenerationofdatainquantitativeform,whichcanbesubjectedtorigorousquantitativeanalysisinaformalandrigidmanner.Thisapproachisfurthersub-dividedintoinferentialapproachistoformadatabasefromwhichtoinfercharacteristicsorrelationshipofapopulation.Thisusuallymeanssurveyresearchwhereasampleofpopulationisstudiedusingquestionnairetodetermineitscharacteristicsanditistheninferredthatthepopulationhasthesamecharacteristics.Qualitativeapproachtoresearchisconcernedwithsubjectiveassessmentofattitudes,opinionsandbehaviour.Researchinsuchasituationisafunctionofresearchersinsightandimpressions.Suchanapproachtoresearchgeneratesresultseitherinnonquantitativeformorintheform,whicharenosubjectedtorigorousquantitativeanalysis.

Qualitativeapproachwasbeenadoptedinthisstudywheredatawascollectedbypersonallyinterviewingthestaffoftheselectedstores.


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3.SourcesofDataThefirstpartoftheprojectwastostudythecurrenttrendsandthefutureofretailandapparelindustryinIndiaandalsotogainsomebasicknowledgeonsalespromotion.Thisconsistedofdoingasecondaryresearchabouttheindustrywiththehelpofsometextbooksandalsothroughtheinternet.Oncethesecondaryresearchwasdone,apersonalvisitwasconductedtothethreewellknownapparelretailoutletsinMumbainamely,PantaloonRetail(I)Ltd.,WestsideandShoppersstopallofwhicharelocatedinMulund(W).Thesalespromotionactivitiesconductedinthestoreswereminutelyobserved.Personalinterviewswithfewofthestaffsofeachstorewereconductedtogainthein-depthknowledgeabouttheseasonalandnon-seasonalsalespromotionactivitiesconductedbythestores.


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4.SamplingPlan:(1)PopulationandSamplingunitThesampleunitistheindividualunitoftheselectedsample.HerethesampleunitweretheapparelretailoutletsinMumbai.(2)SampleSizeThisreferstothenumberofitemsselectedfromtheuniversetoconstitutethesample.Forthepurposeofthisstudy,asamplesizeofthreeapparelretailoutletswereselected,allofwhichareownedbythethreedifferentwellknownbusinessgroups.(3)SamplingProcedureTherearevarioussamplingproceduresforselectingthesampleprocedures.ThesamplingprocedurefollowedhereisSimplerandomsampling.


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ANALYSIS


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PantaloonRetail(India)Limited,isIndiasleadingretailerthatoperatesmultipleretailformatsinboththevalueandlifestylesegmentoftheIndianconsumermarket.HeadquarteredinMumbai(Bombay),thecompanyoperatesover12millionsquarefeetofretailspace,hasover1000storesacross71citiesinIndiaandemploysover30,000people.ThecompanysleadingformatsincludePantaloons,achainoffashionoutlets,BigBazaar,auniquelyIndianhypermarketchain,FoodBazaar,asupermarketchain,blendsthelook,touchandfeelofIndianbazaarswithaspectsofmodernretaillikechoice,convenienceandqualityandCentral,achainofseamlessdestinationmalls.SomeofitsotherformatsincludeBrandFactory,BlueSky,aLL,Top10andStarandSitara.Thecompanyalsooperatesanonlineportal,futurebazaar.com-asubsidiarycompany,HomeSolutionsRetail(India)Limited,operatesHomeTown,alarge-formathomesolutionsstore,Collectioni,sellinghomefurnitureproductsandeZone,focusedoncateringtotheconsumerelectronicssegment.PantaloonRetailwasrecentlyawardedtheInternationalRetaileroftheYear2007bytheUS-basedNationalRetailFederation(NRF)andtheEmergingMarketRetaileroftheYear2007attheWorldRetailCongressheldinBarcelona.PantaloonRetailistheflagshipcompanyofFutureGroup,abusinessgroupcateringtotheentireIndianconsumptionspace.FutureGroupmanifestoFuturethewordwhichsignifiesoptimism,growth,achievement,strength,beauty,rewardsandperfection.Futureencouragesgrouptoexploreareasyetunexplored,writerulesyetunwritten;createnewopportunitiesandnewsuccesses.Tostriveforagloriousfuturebringsgroupsstrength,abilitytolearn,unlearnandre-learnabilitytoevolve.TheFutureGroupwillnotwaitfortheFuturetounfolditselfbutcreatefuturescenariosintheconsumerspaceandfacilitateconsumptio

nbecauseconsumptionisdevelopment.Thereby,thefuturegroupswilleffectsocio-economicdevelopmentforthecustomers,employees,shareholders,associatesandpartners.Thecustomerswill


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notjustgetwhattheyneed,butalsogetthemwhere,howandwhentheyneed.FutureGroupwillnotjustpostsatisfactoryresults,butwillwritesuccessstories.FutureGroupwillnotjustoperateefficientlyintheIndianeconomy,willevolveit.FutureGroupwillnotjustspottrends,groupwillsettrendsbymarryingtheirunderstandingoftheIndianconsumertotheirneedsoftomorrow.ItisthisunderstandingthathashelpedFutureGroupsucceeds.ThiswillhelpgroupsucceedintheFuture.Thegroupshallkeeprelearningandinthisprocess,dojustonething.RewriteRules.RetainValuesGroupVisionFutureGroupshalldeliverEverything,Everywhere,EverytimeforEveryIndianConsumerinthemostprofitablemanner.GroupMissionTosharethevisionandbeliefthatthecustomersandstakeholdersshallbeservedonlybycreatingandexecutingfuturescenariosintheconsumptionspaceleadingtoeconomicdevelopment.Tobethetrendsettersinevolvingdeliveryformats,creatingretailrealty,makingconsumptionaffordableforallcustomersegmentsforclassesandformasses.ToinfuseIndianbranswithconfidenceandrenewedambition.Tobeefficient,cost-consciousandcommittedtoqualityinwhateverwedo.Toensurethatpositiveattitude,sincerity,humilityanduniteddetermination

shallbethedrivingforcestomaketheorganizationsuccessful.


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Formats,GroupCompanies&JVofPantaloonRetailIndiaLtd


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MenSection


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WomenSectionSWOTAnalysisofPantaloonRetail(India)Ltd.StrengthIndustryleaderFirstMoverAdvantageHigherBargainingPowertohighernumberofstoreandgoodcoverageHighestnumberofformatsofstoresEasytoattracttalentHighestmarketshareinOrganizedretailStrongGoodWillinmarketwhichhelpstheminraisingmoneyforexpansion,formingJV,enteringnewmarketornewformatDiversifiedbusinessStrongerprivatelabelbrandsWeaknessGovernmentrulesandregulationsarenotfavorableFDIpolicynotsofavorablefortieupsCannibalizationwithintheformatsRecessionandglobalmelt-downaffectedtheperformanceofthebookShrinkingmarginsduehigherinputcosts

OpportunitiesLuxurybrandsegmentsuntappedbypantaloonTie-upwithforeignplayertobringintechnicalexpertiseandfundstoexpandsaggressivelySmallerformatsshouldexpandmoreaggressivelyintierIIandtierIIIcitiesScopeofPrivatelabelsIntegratingsupplychainwithotherretailersLicenseagreementwithforeignbrandsRestaurantandfastfoodchainincludedinthecurrentformats

ThreatsRapidexpansionbycurrentplayerslikeTrent,ShoppersStop,Reliance,More,BhartiandSpencersTie-upofcompetitorswithforeignretailgiants.ForexampleBharti&WalmartMarketconditionshighlyvolatilelastyearduetomeltdown


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Realestateprice&Rentalslowering

SalesPromotiontechniquesatPantaloonRetail(I)Ltd.1.Price-offoffer:Underthisoffer,productsaresoldatapricelowerthantheoriginalprice.Thistypeofschemeisdesignedtoboostupsalesinoff-seasonandsometimeswhileintroducinganewproductinthemarket.Example:Buy2menT-shirtsatRs.599/-and1T-shirtatRs.399/-(MRP:Rs.399/Tshirt).Buy2menT-shirtsatRs.749/-and1T-shirtatRs.499/-(MRP:Rs.499/Tshirt).Buy3menroundneckT-shirtsforRs.399/-(MRP:Rs.199/Tshirt).Buy2menVneckT-shirtsatRs.499/-and1T-shirtforRs.299/-(MRP:Rs.299/Tshirt).Buy3womenT-shirtsatRs.399/-(MRP:Rs.199/Tshirt).Buy1womantopandgetRs.100/-offonthebottoms.

2.Discounts:Underthis,theproductsaresoldatadiscountedpricewithpercentagediscountsontheoriginalprice.Thistypeofschemeisdesignedtoboostupsalesinoff-season.Example:30%offonallthemenformalshirtsandtrousers.30%offonallthewomenformalsandcasualoutfits.


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3.Endofseasonsale:EndofSeasonsaleorstockClearancesaleisbeenconductedatPantaloonFactoryOutlets.Theyareofferingsurprisingdiscountsasifyoubuy2anyitemsofgarmentsandyouwillget3morewithyourchoiceabsolutelyfree.TheseoffersaregivenascelebrationofNewYear.

4.Seasonaloffers:Pantaloonprovidesthecustomerswithvariousdiscountsandprice-offoffersatthestoresandfactoryoutletsontheseasonslikewinterandmonsoon.Thistypeofschemeisdesignedtoboostupsalesintheseseasons.

5.Festiveoffers:


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PantaloonshavecomeupwithfestiveofferduringDiwaliandChristmasbygivingawaygiftsforpurchasesthataremadeatthestoreforcheaperprice.IfyoushopforRs.4500yougetaStrolleybagworthRs.1299forRs.149only.IfyoushopforRs.2400andaboveyougetalemonset,whichissaidtobeimported,worthRs.649forRs.99only.6.NewYearoffers:PantaloonsoffersgiftsforpurchasesthataremakeatthestoreduringtheNewYearforcheaperprice.IfyoushopforRs.3500yougetaImportedDesignerGlassSetforRs.249only.IfyoushopforRs.2500,yougeta3nightsand4daysholidaypackageforacoupleonanInternationalcruise.

7.DiscountCoupons:Pantaloonoffers25%discountonitslargerangeofapparels.Thecouponisvalidforlimitedperiod.Thiscouponisvalidfor25%offonanyproductpurchasedfromwww.pantaloon.futurebazaar.com.


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8.GiftVouchers:PantaloonsFreshFashionoffersmanyPantaloonsvouchersrangingdifferentdenominationslikeRs100,Rs.250,Rs.1000andRs.2000.ThesePantaloonsvouchersareexchangeablewiththeproductsbythecustomersatallthePantaloonsShowroomsinIndia.Thevouchersareabetteroptionratherthangiftsfortheemployeesandcustomersastheyarenotboundforaparticularthingtoaccept.Theyaregivenfreechoiceforchoosingbettergiftsforthemselvesbyusingvouchers.Pantaloonsvouchersofferawiderangeofproductsandservicesforshopping.Ithasgotcoveragein15citiesincluding22outlets.Itthusoffersgoodgiftvoucherstoitscustomers,clientsandsalesforcealsotokeepgoodrelationshipsamongsteachother.ThemostfamousGiftVouchersbyPantaloonsFreshFashionareTrendsettersandConnoisseursChoice.TrendsettersGiftVoucher:ThisPantaloonsvouchertothecustomersfortheproductsofvalueofRs.500atallshowroomsofPantaloonsalloverIndia.Thisvoucherisvalidforallapparelsonly.Theamountoftheproductsboughthavetobewithinthefacevalueofthevoucher,ifitexceedstheactualamountthecustomerhastopaytheexceededamountaftertheshopping.Thisgiftvoucherisvalidtill1yearfromtheissuedate.Itcannotbeexchangedtopartorfullcash.

ConnoisseursChoice:ThisPantaloonsvoucherisavailablefortheproductsvaluedatRs.500atallPantaloonsshowrooms.ThisisknowntobeasgoodasthecashunderPantaloons.Thisisvalidforoneyearafterissuance.Thevouchercannotbe


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exchangedneitheritcanbeencashed.Thevouchercanbeconvertedforonce.Anybalanceonvoucherwillnotbeexchangedascashoranyproduct.ThepantaloonsalloverIndiahavegotthisfacilitysothatthecustomerscanavailitanytimeanywhere.

9.Pantaloonloyaltyprogram(Greencard):

GreenCardisapassporttoawholenewworldofexclusivebenefitsandprivilegestothecustomers.InstantdiscountsforeverytimeyoushopatPantaloonclusiveshoppingdaystogetholdoflatestmerchandise.Regularupdatesoncollectionsandpromosviacatalogues,smsandemail.Specialinvitestothemosthappeningevents.Extendedexchangeperiodsandcomplimentarydropsforalterations.Exclusivebillingcountersandmuchmore.


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ShoppersStopLtd.,hasredefinedretailinIndia,takingittothenextlevel.Frombeingjustthesaleofgoodstoconsumers,thecompanyhascreatedauniqueauraaroundretailandturneditintoanexperience,anindulgence.ThepioneeroforganizedretailinIndia,ShoppersStopLtd.,hasbeeninstrumentalinbringingaboutaretailrevolutioninthecountryandhasbecomethehighestbenchmarkfortheindustry.Withitsgrowthplansfirmlyinplaceandundeniableleadershipinthefield,ShoppersStopLtd.,iswellonitswaytoraisethebarofperformanceevenhigher.ShoppersStopLtd.hasmadethispurchaseofgoodsextremelypleasurable.Thestoreshaveredefinedshoppingbymakingitmorethanjustatransaction.Theentireshoppingprocessisthecomingtogetherofanamazingarrayofofferings,warmbutunobtrusiveserviceandspecialprivilegesandbenefitsthattranslateeveryvisitintocustomerdelight.


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Sinceitsinceptionin1991,ShoppersStopLtd.,whichwasfoundedbytheKRahejaCorp.Group(ChandruLRahejaGroup),oneoftheleadingplayersinthecountryinthebusinessofrealestatedevelopmentandhotels,hasbeenofferingpremiumandluxuryvaluefortheentirefamily.ShoppersStopLtd.hasmetamorphosedfrombeingachainofretailstorestoemergingasaFashion&Lifestyledestination,whichnowincludesretailconceptssuchasbookstores,cafsandhigh-endlifestylemerchandiseforthegrowingaffluentmiddleclassinIndia.Today,itsnameissynonymouswithsuperiorqualityproduct,servicesandaboveall,aninternationalshoppingexperience.Inordertoenhancethelevelofcustomerserviceandgaininsightintonewandemergingpracticesfollowedinternationally,ShoppersStopLtd.isamemberoftheInterContinentalGroupofDepartmentStores(IGDS).ItistheonlyIndianmemberalongwith29otherexperiencedretailersfromallovertheworld.Leveragingexpertise,excellenceandexperience,ShoppersStopLtd.hasbecomeabenchmarkfortheIndianretailindustrytofollow.ApioneeroforganizedretailinIndia,ShoppersStoptoday,isthecountrysbiggestDepartmentStoreChain.Itofferscustomersaninternationalshoppingenvironmentandaworld-classshoppingexperiencethroughits20storesin11cities.Ithousesahostofinternationalanddomesticbrandsacrosscategoriessuchasapparel,accessories,cosmetics,home&kitchenwareasalsoitsownprivatebrands.ShoppersStopoffersawiderangeofbrands(morethan400brands)fortheentirefamilytochoosefrom.Exclusiveand


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establishedbrandsshareshelfspacetoofferanarrayofchoicescustomersacrossallages,tastesandoccasions.ShoppersStopisthesinglelargestretailerforLevisStrauss,Pepe,Lee,Arrow,Zodiac,Ray-Ban,Swatch,amongothers.

PrivateLabelsShoppersStophasarangeofPrivateLabelsacrossMen

scasualweartoformalstoWomen swear.PrivateLabelscontributeamere20%toitsTotalSales.HerearethePrivateLabelsSoldinShoppersStopoutlet,

Kashish-Mens sEthnicWearStop-WesternWear-Men&WomenLife-MensCasualWear,JeansWearMarioZegnoti-Men

sFormalWearAcropolis-Men

sFormalWearPushandShove-EyeWearVettorioFratini-PremiumMen sWear

MenSection


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WomenSection

SWOTANALYSISOFSHOPPERSSTOP:StrengthsVarietyRangeDifferentBrandsPioneerLoyalcustomerLowrnancialpositionPresenceacrossvarioussegmentsParikramathefestivalWeaknessVeryhighpricesLessSchemesLessDiscountsCompetitionfromstandalonesLateentryintovalueretailingStoremakeoverexpenditure


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ThreatsGovernmentPoliciesEntranceofNewPlayersHighattritionLessererspendingEntryofforeignplayersUnorganizedsectorIndependentstores

OpportunitiesAwarenessaboutthebrandsQualityYoungstersHigherdispcomeCollaboratePrivatelevelsTier2&tier3citiesEnternewconsumergoodssegments

SalesPromotiontechniquesatShoppersstop1.Price-offoffer:Underthisoffer,productsaresoldatapricelowerthantheoriginalprice.Thistypeofschemeisdesignedtoboostupsalesinoff-seasonandsometimeswhileintroducinganewproductinthemarket.Example:Buy2menT-shirtsatRs.799/-and1T-shirtatRs.499/-(MRP:Rs.499/Tshirt).Buy3womenT-shirtsatRs.999/-(MRP:Rs.499/Tshirt).2.Discounts:Underthis,theproductsaresoldatadiscountedpricewithpercentagediscountsontheoriginalprice.Thistypeofschemeisdesignedtoboostupsalesinoff-season.Example:20%offonallthemenformalshirtsandtrousers.


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20%offonallthewomenformalsandcasualoutfits.3.Endofseasonsale:

EndofSeasonsaleorstockClearancesaleisbeenconductedatShoppersstop.Theyareofferingsurprisingdiscountsupto50%onallthemenandwomenapparels.TheseoffersweregivenlastyearforlimitedperiodinthemonthofSeptember.

4.Seasonaloffers:Shoppersstopprovidesthecustomerswithvariousdiscountsandprice-offoffersatthestoresontheseasonslikewinterandmonsoon.Thistypeofschemeisdesignedtoboostupsalesintheseseasons.DifferentoffersareprovidedbythestoresduringtheseperiodsfromJunetoJanuary.


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5.Festiveoffers:ShoppersstophavecomeupwithfestiveofferduringDiwaliandChristmasbygivingawaygiftsforpurchasesthataremadeatthestoreforcheaperpriceorfree.IfyoupurchasemenapparelworthRs.6000/-,theyouareentitledtogetaPolobagworthRs.2000/-absolutelyfree.


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6.GiftVouchers:ShoppersStopofferGiftVouchersofdenominationrangingfromRs.250toRs.5000.

7.RepublicDayoffer:Shoppersstopconducted3DaySurpriseofferontheoccasionofRepublicDay,givingflat20percentdiscountcouponsonpurchaseofgoodsworthRs.3000/-,whichcanberedeemedonthenextpurchase.


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8.Contests:ShoppersStophasannounceda101-dayShoppingBonanzatopullincustomersintothestores.Luckydrawwinnersofthecontestwillgettoseeoneofthesevenwondersoftheworldandtwoluckycoupleswhogetthegrandprizewillbetreatedtoaroundtripwhichwillcoverallthesevenwondersoftheworld.9.Shoppersstoployaltyprogram(FirstCitizenCitibankcreditcard)AssFirstCitizenCreditcardmember,yougetthebenefitsoftheShoppersStoployaltyprogram,FirstCitizen.TheFirstCitizenmembershipentitlesyoutoexclusiveprivilegessuchasproductpreviews,prioritybillingandotherspecialbenefits.Addtothis,thefabulousexperienceofshoppingatthepremierShoppersstopoutletsacrossthecountry.


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10.Exchangeoffer:Underthisoffer,youhavetobringinyouoldsalwarkameezandtakeawayanewonewithdiscountedprice.


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Style,affordableprices,qualitythesearethefactorsthathaveshapedWestside

ssuccessstoryintheretailfashionstoresbusiness.Launchedin1998inBangalore,theWestsidechainhas,eversince,beensettingthestandardsforotherfashionretailerstofollow.

Establishedin1998aspartoftheTataGroup,TrentLtd.operatesWestside,oneofIndia slargestandfastestgrowingchainsofretailstores.TheWestsidestoreshave


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numerousdepartmentstomeetthevariedshoppingneedsofcustomers.TheseincludeMenswear,Womenswear,Kidswear,Footwear,Cosmetics,PerfumesandHandbags,HouseholdAccessories,lingerie,andGifts.Thecompanyhasalreadyestablished36Westsidedepartmentalstores(measuring15,000-30,000squarefeeteach)inAhmedabad,Bangalore,Chennai,Delhi,Gurgaon,Ghaziabad&Noida(tobeconsideredas1city),Hyderabad,Indore,Jaipur,Kolkata,Ludhiana,Lucknow,Mumbai,Mysore,Nagpur,Pune,Rajkot,Surat,VadodaraandJammu.Thecompanyhopestoexpandrapidlywithsimilarformatstoresthatofferafinebalancebetweenstyleandpriceretailing.Trentventuredintothehypermarketbusinessin2004withStarBazaar,providinganampleassortmentofproductsmadeavailableatthelowestprices,aptlyexemplifyingitsChotaBudget,LambiShoppingmotto.AtpresentStarBazaarhas4storesin3citieslocatedinAhmedabad,MumbaiandBangalore.Thisstoreofferscustomersaneclecticarrayofproductsthatincludestaplefoods,beverages,healthandbeautyproducts,vegetables,fruits,dairyproducts,consumerelectronicsandhouseholditemsatthemostaffordableprices.Thisstorybegancirca1998whenTheTatasacquiredLittlewoodsaLondonbasedretailchain.ThisacquisitionwasfollowedbytheestablishmentofTrentLtd(aTataenterprisethatpresentlyoperatesWestside).LittlewoodswassubsequentlyrenamedWestside.Inarapidlyevolvingretailscenario,Westsidehascarvedanicheforitsbrandofmerchandisecreatingaloyalfollowing.Currently,thecompanyhas36Westsidestoresmeasuring15,000-30,000squarefeeteachacross20cities.Withavarietyofdesignsandstyles,everythingatWestsideisexclusivelydesignedandthemerchandiserangesfromstylizedclothes,footwearandaccessoriesformen,womenandchildrentowell-co-coordinatedtablelinens,artifacts,homeacces

soriesandfurnishings.Well-designedinteriors,sprawlingspace,primelocationsandcoffeeshopsenhancethecustomersshoppingexperience.

SWOTANALYSISOFWESTSIDE:


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StrengthsGrowingatthefasterpaceBrandnameofTATAs.GoodcustomerarelsarecheaperAttractivepromotionalschemesandheavydiscountsQualityandbrandedstuffonlyLocationadvantage

WeaknessNotmuchproductrangeformiddleclassFacingproblemsduetopollenvironmentNeedhelpintakingoverpropertiesandrealestateNeedsomeconcessionsfromlaborlawsLackofdifferentiationPoorinventoryturnsandstockavailability

OpportunitiesHugeuntappedmarketRisingdisposableincomeUrbanization

ThreatsCompetitionfromorganizedretailplayersCompetitionfromlocalretailers.

LadiesSection


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MenSection

KidsSectionPRIVATELABELSPrivatelabelproductsorservicesaretypicallythosemanufacturedorprovidedbyonecompanyforofferunderanothercompany sbrand.Privatelabelgoodsandservicesareavailableinawiderangeofindustriesfromfoodtocosmeticstowebhosting.Theyareoftenpositionedaslowercostalternativestoregional,nationalorinternationalbrand.Westsidehasmanyprivatelabelsinitsmerchandiseportfolio.PrivatelabelsinWestsideinclude2F4USRCGia


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UrbanangelIntimaDavidJonesAscot

AllthesebrandsareproducedforWestsideonlyandcanbefoundinWestsideonly.Theseapparelbrandsaregivenseparatespacefordisplayingtheirmerchandiseandmorepromotionaloffersarethereonthemtoincreasetheirsales.Atsomeplaces,theseprivatebrandsaremixedwithbrandedclothessointhatcasetheseprivatelabelsareputinlowershelves.Ateyesightlevel,brandedclothesareput.

SalesPromotiontechniquesatWestside1.Festiveoffers:WiththisDiwaliDelightofferfromWestsideifyoushopfromtheirstoreforRs.5000andaboveyougetagiftvoucherfromthemforRs.1000forfree.AndifyoushopforRs.2500andaboveyougetafreegiftvoucherworthRs.400.Thisisvalidonlyifyoupurchasetheirin-housemerchandiseorbrandsonlyandnotvalidifyouchosetobuyotherbrandsavailableattheirstore.

2.Endofseasonsale:


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EndofSeasonsaleorstockClearancesaleisbeenconductedatWestside.Theyareofferingsurprisingdiscountsupto50%onallthemenandwomenapparels.TheseoffersweregivenlastyearforlimitedperiodinthemonthofJanuaryandJuly.

3.GiftVouchers:WestsideoffersGiftVouchersofdenominationrangingfromRs.100toRs.10000.


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4.Westsideloyaltyprogram(Clubwestcardprogram):Anassuredreturn-and-exchangepolicyreinforcescustomerconfidenceinthechain.AnotherwinningWestsideideaisClubWest,acustomerloyaltyprogramlaunchedinMay2001.The30,000-plusmembersofthisclubgetrebatesatrestaurantsandonholidaypackagesfromtheTajGroupofHotels,homedeliveryofalterations,andbestofall,specialshoppinghoursonthefirstdayofanydiscountsaleseventorganizedbythechain.

5.Contests:


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ShopforRs1,000atWestside,participateintheluckydrawandwinthegrandprizeacompleteholidaypackagesfortwotoMacau.YoucouldalsowinholidaypackagestobreathtakingbeachdestinationsinIndiaincludingGoa,Kovalam,PuriandPondicherry.6.Discounts:Underthis,theproductsaresoldatadiscountedpricewithpercentagediscountsontheoriginalprice.Thistypeofschemeisdesignedtoboostupsalesinoff-season.Example:20-50%offonallthemenformalshirtsandtrousers.2050%offonallthewomenformalsandcasualoutfits.

Findings


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SalesPromotion1.Endofseason2.FestivePromotions(Diwali,Christmasetc)LoyaltycardProgrammeSpecialPromotion(event)JointpromotionMediaused

PantaloonYesYes

WestsideYesYes

ShoppersStopYesYes

Yes

Yes

Yes

Yes(Exchangeoffer)

No

Yes(Exchangeoffer)NoPrint,electronic,hoardings,In-storemediaDiscounts,

giftvouchers,freegifts,exchangeoffer,Endofseasonsale,Loyaltyprogram

NoHoardings,print,electronic(SMS,E-mail),POPIn-storemediaPriceoff,freegifts,exchangeoffer,Festiveoffers,Endofseasonsale,Loyaltyprogram

NoPrint,electronic,hoardings,In-storemediaGiftvouchers,discount,contest,Endofseason

Promotiontype

Fromtheabovetable,itisclearthatallthreestoresengageinendofseason

sale.Thisreinforcesthefactthatseasonalityaffectsapparelsectorandhenceitbecomescriticalforaretailertoclearoffthestocksattheendofseason,otherwise,hemayhavetoincursubstantialinventorycarryingcosts,allocatescarceshelfspaceandoutoffashionapparelsmaybeworthless.Thusstockclearanceseemstobeveryimportantobjectiveforapparelretailerinusingendofseasonsalewhereindiscountgivenisupto50%oftheMRP(Maximumretailprice).


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Allthethreestoresuseloyaltycardstorewardloyalusersandencouragethemtovisitthestoreoftenandbuymorebyofferingwiderangeformen,womenandchildren.Somestorealsoofferhomefurnishings,accessoriesandfootwear,therebyprovidingconvenienceforonestopshopping.

Jointsalespromotioninvolvestieingupwithotherbrandslike,MacDonald,Havmore,Golds(local)GymandKayaskinclinic,etc.Noneofthethreestoreshasyetexploredavenueofjointsalespromotion.Suchjointpromotionshaveadvantagesintermsofsharingcostsofpromotions,crosssellingopportunitiestoeachotherscustomers,highervisibilityetc.

Intermsoftypeofconsumersalespromotions,almosteveryoneuseddiscount,couponprogrammesandluckydraws,contests,gift,buyonegetonefreetypeofpromotions.PantaloonandShoppersStopusesexchangeoffer.


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ConclusionUsageofsalespromotionactivitieshasadirectimpactonconsumerbehaviourasitmotivatesaconsumertobuynowratherthaninfuture,enhancesvalueofanoffertemporarilytillthepromotionperiod,encouragesswitching,reinforceorrewardloyaltyetc.Broadly,objectivessetfortheseactivitiesare;Togeneratestoretraffic,Tomoveexcessinventory,ToenhancestoreimageandTocreateapriceimage(highorlow).TrafficbuildingisachievedbyspecialeventpromotionslikeDiwali,Rakshabandhanpromotions;inventoryreductionthroughendofseasonsale;creationandbuildingstoreimagethroughfeatureadvertisinganddisplaysandjointpromotionsandpriceimagebyhighlightingthediscounts.Ithelpsconsumerreducenotonlyfinancialriskbutalsopsychologicalandsocialriskbymakingconsumerconfidentofhis/herpurchase,conformationtogroupnormsbyshoppingatfamousstores/brandsandpossibilityofacquiringwellknownbrandedapparelduringpromotions.Promotionsmayinducenonbuyerstowalkintothestoreandloyaltyprogrammesmayencouragethemtobuymore,moreoftenorupgradetobetterquality.Excitingpromotionsalsohavetendencytogeneratepositivewordofmouthandhelpconsumerfeelasmartshopper.Thus,notonlyprovideutilitarianbenefitslike,savingofmoney,timeorqualityupgradationbuthedonicbenefitslikefeelingconfident,feelingofexcitementandentertainmentetc.Executionofthesalespromotionactivitiesalsorequirepropercoordinationofsellingeffortandavailabilityofpromotedmerchandise.ApparelsectorislikelytogrowwithgrowingIndianeconomy.ManymultinationalplayerseitherhavealreadyplungedintoIndianmarketorplantodosoinapparelsector.Theywillb

ringmanypromotionalpracticeswhichtheyhavebeenfollowingindevelopedmarketswhichwillincreasetheuseofsalespromotionactivitiesevenfurther.Indianbrandswillhavetowithstandturbulentconditionsandlearntosurvive.Iftheroleofsuchpromotionalactivitiesisunderstoodwell,itmayhelpanyplayeralongwaytosurviveandgrow.


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Bibliography

www.google.comwww.pantaloon.comwww.mywestside.com

www.shoppersstop.com

http://besteoffers.blogspot.com/2009/12/free-discountcoupon-of-25-of.html

www.futurebazaar.com


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51297290 28509242 Study on Consumer Sales Promotion of Apparel Retail Stores Himanshu

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