Avishek Lahiri Store Operation 15

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A PROJECT REPORT

On

STORE OPERATIONAT

PANTALOON RETAIL INDIA LTD.

REPORT SUBMITTED IN PARTIAL FULFILLMENT OF REQUIREMENT

FOR

POST GRADUATE PROGRAMME IN MANAGEMENT

BY

SUBMITTED BYAVISHEK LAHIRI

Reg. No. EIILM/PG_W/1WE-016

UNDER THE GUIDANCE OF

Miss. LISA CHAKRABORTY

(HRM) at kankurguchi PANTALOONS

Kolkata -700054

Prof. ABHIJIT CHAKRABORTY

EIILM KOLKATA

EASTERN INSTITUTE FOR LEARNING IN MANAGEMENT

6, WATERLOO STREET, KOLKATA - 700069

JANUARY -2011


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CERTIFICATION

BY INTERNAL GUIDE


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CERTIFICATE FROM THE ORGANISATION


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ACKNOWLEDGEMENT

Acknowledging the debt is not easy to me as I am indebted to so many people.

I will take this opportunity in expressing the fact that this Project Report isthe result of an unbelievable amount of encouragement, cooperation, willingto help and moral support that I have received from others.

It is beyond my literal and material means to express my heartfelt thanks to,Miss. LISA CHAKRABORTY (HRM at kankurguchi PANTALOONS) MyCorporate Guide, for his assiduous guidance, continuance encouragement andaspiring suggestions during the Project Study.

I am thankful to Prof. ABHIJIT CHAKRABORTY, Faculty Guide for

enlightening me with the subject and his valuable guidance from time to timein completing this Project.

I shall be special thanks to Mr. KANKAN BOSE (HR of future group) for hisguidance. He provided me proper knowledge about sales & management.Finally, once again I would like to thank all without whom I would not havebeen able to do the project.I would like to express my gratitude towards my faculty members for theirhelp & guidance.


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EXECUTIVE SUMMARY

Pantaloon Retail (India) Limited, is Indias 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 companys 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, 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.


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INDUSTRY BACKGROUND

India, like Britain, is a nation of shopkeepers. With over 12 million retailoutlets, India probably has the highest density of retail outlets in the world, with onefor approximately every 90 persons; little wonder that the country is the ninth-largest retail market in the world, with estimated annual retail sales ofaround USD215 billion in 2005 (Rs 960,000 corer). At the sometime, theshare of organized trade in this enormous market is currently very small. It is

estimated at just USD8 billion (Rs 35,000 corer) in 2005, up fromUSD6.25 billion(Rs 28,000 corer) in 2004. This accounts for less than 4 per cent of the total retailtrade in the country.

AN UNDER DEVELOPED RETAIL MARKET

Organized trade in India is very underdeveloped when compared with other emergingmarkets in Asia, Latin America and Eastern Europe. The Indian and Chinese marketsare comparable in many aspects: Both countries are not homogeneous. Theycomprise many markets within a single country, with significantly varying culturesand customer preferences across regions.There is a significant rural population in both countries, which has muchlower purchasing power compared to the urban population.Both count r ies are geographical ly very large and unevenly developed, adding a significant distribution and logistics dimension to the retail trade.Consumers in both countries are highly value conscious.Between 1996 and 2003, the organized retail market in China more than

doubled . We es t imate tha t the Indian re ta i l market i s today a t thesame inflection point as China was in the mid-1990s. Consequently, considering a

similar per capita GDP and roughly similar rates of economic growth, theIndian organized retail market has the potential for exponential growth over the nextdecade.


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CONSUMERISM: THE NEW WAVE

Growing consumerism would be a key driver for organized retail in India.Several demographic indicators show favorable trends for the growthof organized trade:Rapid income growth: Consumers have a greater ability to spend. Increasingurbanization: larger urban populations that value convenience, coupled withthe higher propensity of the urban consumer to spend.Growing young population

: Gr ow th of th e p os t- li be ra li za ti on ma tu ri ng population, with the attitudeand willingness to spend.

Spend now vs. save earlier

: Consumers are willing to borrow for present consumption.


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MILESTONES TO SUCCESS:

1987 - Company incorporated as Mans Wear Private Limited. Launch of Pantaloonstrouser, Indias first formal trouser brand.

1991 - Launch of BARE, the Indian jeans brand.

1992 - Initial public offer (IPO) was made in the month of May.

1 9 9 4 - T h e P a n t a l o o n S h o p p e e x c l u s i v e m e n s w e a r s t o r e i n franchisee format launched across the

nation. The company starts the distribution of branded garments through multi-brand retail outlets across the nation.

1995 - John MillerFormal shirt brand launched.

1997 - PantaloonsIndias family store launched in Kolkata.

2001 - Big Bazaar, Is se sasta aur accha kahi nahin - Indias firsthypermarket chain launched.

2002 - Food Bazaar, the supermarket chain is launched.

2004 - Cent ra l Shop, Eat , Celebrate in the Hear t of Our Ci ty -Indias first seamless mall is launched in Bangalore.

2005Fashion Stationthe popular fashion chain is launched ALLa little largerexclusive stores for plus-size individuals is launched.

2006 - Future Capital Holdings, the companys financial arm launchesr e a l e s t a t e f u n d s K s h i t i j a n d H o r i z o n a n d p r i v a t e e q u i t yf u n d Indivision. Plans forays into insurance and consumer credit. Multiple retail

formats including Collection i, Furniture Bazaar, Shoe Factory, Zone, Depot and

futurebazaar.com are launched across the nation. Group enters into jointventure agreements with ETAM Group and Generally.


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COMPANY PROFILE

Pantaloon Retail (India) Limited, is Indias leading retailer that operates

multiple retail formats in both the value and lifestyle segment of the Indian

consumer marker . Headquartered in Mumbai (Bombay) , the companyper ra tes over 5 mi l l ion square fee t of re ta i l space , has over 350

stores across 40 cities in India and employs over 18,000 people.

The companys leading formats inc lude Panta loons , a chain of f ash i

on outlets, Big Bazaar, a uniquely Indian hypermarket chain, Food Bazaar, super

market 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 des t ina t ion mal ls . Some of i t s o ther formats inc lude ,

Depot, Shoe Factory, Brand Factory, Blue Sky, Fashion Station, ALL, Top10,

bazaar and S tar and S i tara . The company a lso opera tes an

onl ine portal, futurebazaar.com. A subsidiary company, Home Solut ions

Retail (India) Limited, operates Home Town, a large-format home solutions

store, Collection i.e. selling home furniture products and E-Zone focused

on catering to the consumer electronics segment. Pantaloon Retail is the flagship

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

space.


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FUTURE GROUP:

Future Group is Indias leading bus iness group that ca ters to theentire Indian consumption space. Led by Mr. Kishore Biyani, the Future

Group operates through six verticals: operates through six verticals: Retail, Capital,Brands, Space, Media and Logistics. Apart from Pantaloon Retail, thegroups presence in the re ta i l space is complemented by groupcompanies, Indus League Clothing, which owns leading apparel brands likeIndigo Nation, Scullery and Urban Yoga, and Galaxy Entertainment Limitedthat operates Bowling Co, Sports Bar, and F123and Brew Bar. The groups jointventure partners include French retailer ETAM group, US-based stationaryproducts retailer, Staples and UK-based Lee Cooper.G r o u p C o m p a n y , P l a n e t R e t a i l , o w n s a n d o p e r a t e s t h e f r a n c h is e e o f international brands like Marks & Spencer, Next, Debenhams and

Guess in I n d i a .T h e g r o u p s I n d i a n j o i n t v e n t u r e p a r t n e r s i n c l u d e ,M a n i p a l Healthcare, Talwalkars, Blue Foods and Liberty Shoes.F u t u r e C a p i t a l H o l d i n g s , t h e g r o u p s f i n a n c i a l a r m , f o c u s e s on a s s e t management and consumer credit. It manages assets worth over$1 billion that are being invested in developing retail real estate and consumer-related brands and hotels. The group has launched a consumer credit and financialsupermarket format , Future Money and soon p lans to offer insurance products through a joint venture with Italian insurance major, generally.

The group is currently developing over 50 malls and consumption centersacross the country and has formed a join t venture company focusing on mallmanagement with Singapore-based CapitaLand, one of Asiaslargest property companies .Future Groups vision is to,deliver Everything,Everywhere, Every time toE v e r y I n d i a n C o n s u m e r i n t h e m o s t p r o f i t a b l e m a n n e r . T h e gr o u p considers Indian-nests as a core value and its corporate credo is - Rewrite

rules, Retain values.


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As Indias leading retailer, Pantaloon Retail inspires trust through innovative

offerings, quality products and affordable prices that help customers achieve a betterquality of life every day. We serve customers in 85 cities and 60 rural locationsacross the country through over 15 million square feet of retail space.

Pantaloon Retail is the flagship company of Future Group, Indias retail pioneer

catering to the entire Indian consumption space. Through multiple retail formats, weconnect a diverse and passionate community of Indian buyers, sellers and businesses.The collective impact on business is staggering: Around 220 million customers walkinto our stores each year and choose products and services supplied by over 30,000small, medium and large entrepreneurs and manufacturers from across India. Thisnumber is set to grow.

We operate multiple retail formats in both the value and lifestyle segments of the Indian

consumer market including:

Pantaloons - a chain of fashion outlets.

Big Bazaar - a uniquely Indian hypermarket chain.

Hometown - One-stop destination for every need of the as pirational Indian home-owner.

Food Bazaar - a supermarket chain that blends the look and feel of Indian bazaars with modernretail aspects like choice, convenience and quality.

Central - a chain of seamless destination malls.


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.


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Future Group shall deliver Everything, Everywhere, Every time forEvery Indian Consumer in the most profitable manner.

We shall infuse Indian brands with confidenceand renewed ambition. We shall be efficient, cost- conscious andcommitted to quality in whatever we do. We shall ensure that our positiveattitude, sincerity, humility and united determination shall be the drivingforce to make us successful.


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LINE OF Businesses

1. etellingFuturebazaar.com offers the widest range of products at lowest prices everyday!Having pioneered the retailing business in India, PRIL has now decided torevolutionize the consumer e-commerce business in India. It intendsto p r o v i d e c u s t o m e r s w i t h a s t r e a m l i n e d , e f f i c i e n t a n d wo r l d c l a s s personalized shopping experience, which will be supported with thebest technology platform.

Buying products is a 3 step simple process. All one has to do is Search,Regis ter and Buy. Here you can expect a shopping exper ience akinto shopping at an actual bazaar but with added simplicity & everydaylow prices and an assurance of 'your product' will be delivered within 7 days ofpurchase. We are proud to inform you that Future Bazaar has been named as

the Best Indian Website 2007 in the Shopping category by PC World. Future Bazaarwon the top spot after beating other established players like Rediff, India times, Sift,eBay, India plaza, Chennai Bazaar and India Mall. The award was presented toFuture Bazaar for its "decent, no-nonsense approach, while providing a goodshopping experience"

2. Food

Brew Bar: The Brew Bar is a classy and refined; yet reasonable anegalitarian a bar with loads of bonhomie.

Caf Bellwood: Indian street food but with assurance of highest levels ofhygiene and quality.

Samosa: Samosa is a branded chain, which sell the local Indian snackcombination of tea and Samosas.

Food Bazaar: Life is all about good taste and food bazaar aims to ensurethe same. With the low pr ices , a wide se lec t ion of products and

guaranteed freshness, you are bound to find it irresistible.

Sports Bar: A bistro focused on the world of sport, the Sports Bar is complimentedwith an unrivalled ambience.


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3. Fashion:

ALL: Shop big and shop for big, coz fashion just got a little larger! Fashion for plussize people.

Big Bazaar: If value for money is what drives your purchase; there can be no betterplace for you other than Big Bazaar.

Blue sky: Accessories like never before....get the best in sunglasses and watches atyour kind of prices.

Central: A showcase, seamless mall for all your needs. Located in the heart of your city,Central invites you to Shop, Eat, and Celebrate.

Fashion station: Fashion Station takes fashion a notch higher in the value segment...for the ones who have an eye for it.

G i n n y & J o n i : G i n n y a n d J o n i i s a l i f e s t y l e b r a n d w i t h a r a d ic a l approach to kids fashion. The brand caters to an age group of 2 to 16 years, thatis uber chic, style conscious and stresses on a head to toe fashion concept.

Navaras: Navarass is a fine 22 carat pure gold and diamond jeweler brand, retailedfrom Big Bazaar stores.

L e e C o o p e r : R e g a r d e d a s a b r a n d t h a t i s f u n t o w e a r a n db e associated with, Lee Cooper offers the entire range of lifestyle products

in fashions category for young men and ladies.


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PRODUCTS OFFERINGS

Pantaloon is positioned as an entire family store and it deals in mens wear, ladies

wear and kids wear. It mainly focuses on its Private label programmed because

the share of private label has increased over the previous year and stands at nearly

75%. Below are some of the companys private labels:

John Miller

JM Sports

Bare Denim

Rig

Ajile

Lombard

Bare Leisure
http://pantaloon.futurebazaar.com/Search/sdso50off/altText/Mens%20Wear


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Ladies Ethnic

Rangmanch

Akkrity

Trisha

All

Biba

Global Desi

Miss Unique

Arha

KIDS WEAR

Chalk

Bare


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PROMOTIONAL STRATEGIES

Green Card is passport to a whole new world of exclusive benefits andprivileges.

Instant discounts for every time you shop at Pantaloons.

Exclusive shopping days to get hold of latest merchandise. Regularupdates on collections and promos via catalogues, sms and email

Pantaloon continued to be the title sponsor for femina miss India 07pageant.

PRICING STRATEGY

They propose to provide branded products at 10% less than the Mrp

and 20% off on the local

Brands, which is similar to what has been carried out in big bazaar.

Keeping costs down is clearly the cornerstone of policy at both chains.

Pantaloon chief Biyani ensures cheaper prices by keeping watch atevery step.

Says Biyani: "We do three things -- buy directly from the manufacturers

so that the middle man is eliminated.

We buy in cash and get a cash discount, and manage our stocks turnsso that we don't have.


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BOARD OF DIRECTORS

MANAGING DIRECTOR

Mr. Kishore Biyani

Is the Managing Director of Pantaloon Retail (India) Limited and theGroup Chief Executive Officer of Future Group.

WHOLE TIME DIRECTOR

Mr. Gopikishan Biyani

Mr. Rakesh Biyani

NON- WHOLE TIME DIRECTOR

Mr. Ved Prakash Arya.

INDEPENDENT DIRECTORS:

Mr. Shailesh Haribhakti.

Mr. S Doreswamy.

Dr. D O Koshy.

Ms. Anju Poddar.

Ms. Bala Deshpande.

Mr. Anil Harish.


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To find out the customer satisfaction about theservice being provided in the store

To find out whether or not the efforts given at thestore are satisfactory to the customer

Understanding the sales per employee at the store

Find out the ticket size & conversion rate at thestore


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1. Here I am try to find out that the customer satisfaction about the service beingprovided in the store. In PANTALOONS store there is lots of service provide forcustomer. I am trying to find out the customer are satisfied are not.

2. To find out the customer are satisfied are not3. Ladies Ethnic department every week get their target, in this department

RANGMANCH brand staff their divided their target equally, I am try to find outtheir individually achieve the target or not.

4. Every day they are calculate average selling bill amount in PANTALOONS.TOTAL SALE OF AMOUNT

NO.OF BILL IN THIS DAY

To find out Average of per customer selling price in this day

No. of bill in this day 100

No. Of customer entry in this day


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RESEARCH AND METHODOLOGY


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Research Methodology Used:

This section of the project emphasizes on the procedure used to accomplish theproject. To accomplish the project some data have been collected. The data collectedis basically from Primary Data.

Primary Data:

Primary data generally means those raw data or data structures that are collectedfirst-hand and have not had any previous meaningful interpretation. For my

Winter Internship Project Report, I have collected such primary data throughExploratory research and

Qualitative Analysis.

Exploratory research it is a type of research conducted for a problem that has been

clearly defined. Exploratory research helps determine the best research design, data

collection method and selection of subjects. It should draw definitive conclusions

only with extreme caution. Given its fundamental nature, exploratory research often

concludes that a perceived problem does not actually exist.

Through this methodology we can get close to the solution of the problem which is

why Lee Cooper is slow mover.

EXPLORATORY RESEARCH:

In this phase I approached the stock take employees and asked According to you

what my possible reasons for disparity of stock during stock take process? I got

numbers of factors that customers looks for. These factors are- Scanning Mistake,

Global Counting Mistake, and Lack of Proper Segmentation, Sale upload calculation

mistake error, written able Accountability. These are the factors I considered in

phase-2 while knowing opinion for each factor in disparity of stock during stock take

process.


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ANALYSIS OF DATA


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Collecting the Primary data of the customer

Sample Collected 50.

Survey done through Questionnaire.

Prepare the master sheet & then prepare the calculation with Average

Mean.

At first I observe the procedure of sales employee at the sales counter.

I collect data from their goal book.

No. of customer they individually convinced.

How they improve their performances at the floor.

How they improve their ticket size & conversion rate at the store.


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Demographic Profile of the Customer

Sample size 50

Sex

Male 40

Female 10

In our questioner what are the % of male & female customers are coming in

kankurguchi PANTALOONS.I am trying to find out DEMOGRAPHIC PROFILE

OF THE CUSTOMER 80% of male customers & 20% of female customers are

coming kankurguchi PANTALOONS.

Male

80%

Female

20%

PERCENTAGE OF MALE &

FEMALE

Male Female


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Monthly income of the customer

0-15000 9

15000-25000 17

25000-50000 15

50000-ABOVE 9

In our questioner what are the % of customers monthly income .I am divided

customers income in four slaves (1) 0 -15000. (2) 15000-25000. (3) 2500050000.(4) 50000 above .there for I am find out 0-15000 monthly income group of

customers are coming 18% ,15000-25000 monthly income group of customers are

coming 34%, 25000 -50000 monthly income group of customers are coming 30%

and 50000 above monthly income group of customers are coming 18%. In this

diagram I am find out what are the % of Monthly income of the customer are comes

in kankurguchi PANTALOONS.

18%

34%30%

18%

CUSTOMER MONTHLY

INCOME PERCENTILE

0-15000 15000-25000

25000-50000 50000-ABOVE


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Age group of the customer

Sample Size 50

Below20 6

20-35 29

36-60 15

In our questioner what are the % of age group they are coming in kankurguchi

PANTALOONS, I find out below 20 age are coming 12%, 20-35 in between age

group are coming in kankurguchi PANTALOONS 58% and 36-60 in between age

group are coming in kankurguchi PANTALOONS 30%.Therefor I find out the % of20-35 in between age group are coming in kankurguchi PANTALOONS is high.

12%

58%

30%

Age Group of the

Customers

Below20 20-35 36-60


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Feel safe or unsafe at baggage counter with customer

belongings

YES 45

NO 5

Under the questioner what are the % of customers they are fill safe or not at baggage

counter. In our survey I find out 90% of customers they are fill safe & 10 % of

customers they are fill unsafe.

90%

10%

YES


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Exchange CSD PRO OFFERS Instore co

-2 1 -2 2 -1 9 -1 5

-1 4 -1 12 -2 0 -2 0

0 13 0 10 0 10 0 41 10 1 4 1 9 1 13

2 22 2 22 2 26 2 28

Mean 0.96 Mean 0.64 Mean 0.962963 Mean 1.28

Here I am calculate average of mean cash counter , exchange counter ,customer

service desk , promotional offers at the store , in store communication.

00.20.40.60.8

11.21.4

CASH EXCHANG

E

CSD PROMOTI

ONAL

OFFERS

AT THE

STORE

IN STORE

COMMU

NICATIO

N

MEAN 0.7 0.96 0.64 0.962963 1.28

AxisTitle

AVERAGE MEAN


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Percentage of Delighting Factors

Product varity 11

product quality 22

Service & Behaviour 6

Offers & Discount 11

In our questioner what are the delighting factors the customers are come in

PANTALOONS. Here I am divided on four delighting factors on the basis of which

is the most important of delighting factors .In my survey most of the customers are

said they are coming PANTALOONS 1.very good product quality 2.Very good

product verity 3.Offers & discount 4.Service & behavior.

22%

44%

12%

22%

Product varity product quality

Service & Behaviour Offers & Discount


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Highest & Lowest Achievers percentile of Sales Employee


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Highest Achievement of Joydeep is 140.22 %

Lowest Achievement of Boni 64.88 %

Kankurguchi store Manager, Assistance store Manager, H.R.M. can announced

a prize or incentive to motivate the all sales employee to increase their target.

And sought out what are the problems they are face &motivate to improve their sales.


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Improving Ticket Size

week A.B.P. achiveme %

week20 1617 1644 101.6698week21 1617 1687 104.329

week22 1617 1723 106.5553

week23 1617 1681 103.9579

week24 1617 1601 99.01051

week25 1617 1744 107.8541

week26 1617 1817 112.3686

week27 1617 1681 103.9579

12%

13%

13%

12%12%

13%

13%

12%

achivement %

week20 week21 week22 week23

week24 week25 week26 week27


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Improving Conversion rate:-

week 27 convresion %

Monday 22

Tuesday 25

Wednesday 24

Thursday 23

Friday 26

Saturday 23

Sunday 27

22

25

24

23

26

23

27

convresion %

Monday

Tuesday

Wednesday

Thursday

Friday

Saturday

Sunday


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Findings:-

Popularity of pantaloons are getting the more importance in the age group of

20-35years.

The majority of the customer income level is 50000.

Most of the customer is satisfied with services provided at kankurgachi

pantaloons.

Recommendations:-

Kankurguchi PANTALOONS 20-35 years customers are coming very high

,you should concentrate what type of dress ,design, colors, they are want ,

Sales employee should improve their convincing power.

After certain period sales employee should need training.

Department manager should contact with all the employee at certain interval.

Require some offer to improve their ticket size.


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Conclusion

Pantaloons Tops the Pyramid of Indian Retail with its Brilliant Consumer

centered approach and Marketing.

To complete in this sector one needs to have up-to-date market

information for planning and decision-making. The second mostimportant requirement is to manage costs widely in order to earn at least

normal profits in face of stiff competition.


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Books:

Business Research Methodology by William G. Zikmund

Marketing Management by Philip Kotler

PradhanSwapna, Retail Management

Fundamentals of Statistics by S.C. Gupt

Sites referred and browsed:

http://www.pantaloon.com/companyinfo.htm

http://en.wikipedia.org/wiki/Pantaloon
http://www.pantaloon.com/companyinfo.htmhttp://www.pantaloon.com/companyinfo.htmhttp://en.wikipedia.org/wiki/Pantaloonhttp://en.wikipedia.org/wiki/Pantaloonhttp://en.wikipedia.org/wiki/Pantaloonhttp://www.pantaloon.com/companyinfo.htm


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Avishek Lahiri Store Operation 15

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