PRESENTED BY:-SRIRAM JAGDALE

About Future Group

Future Group is one of the country’s leading business groups present in retail, asset management, consumer finance, insurance, retail media, retail spaces and logistics.

Future Group companies includes, Future Capital Holdings, Future General India Indus League Clothing and Galaxy Entertainment that manages Sports Bar, Brew Bar and Bowling Co. Future Capital Holdings, the group’s financial arm, focuses on asset 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.

PANTALOONSPantaloon 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 7 million square feet of retail space, has over 1000 stores across 53 cities in India and employs over 25,000 people

The company’s leading formats include Pantaloons- a chain of fashion outletsBig Bazaar, a uniquely Indian hypermarket

chainFood Bazaar- a supermarket chainCentral -a chain of seamless destination malls.

CURRENT PANTALOON’S STATUS

Turnover - 700cr Apparels40% Revenue from KolkataNo of stores - 45 all over India (25 cities)Highest Revenue From John MillerLowest Revenue from Agile (sports new

brand)Private Label Contribution towards salesMen’s wear 65% Women’s wear – 35 %

CATEGORY MEN’S

CATEGORY WOMEN’S

CATEGORY OTHER’S

PR / PROMOTIONAL KITS:

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

They also conduct in house celebrations like ‘women’s week’ and events like End of season sale.

BRAND ARCHITECTUREa) Competitive Environment

The Managing Director of Pantaloons Retail (India) Limited, Mr. Kishore Biyani, states that

the competition in the fashion segment would be Shoppers’ Stop, Trent and Lifestyle to start

with.But Pantaloons also faces competition from Globus,

Westside and the stand alone stores in shopping malls and streets

b) Greater chunk of wallet

Pantaloons has explored many new concepts.This is in pursuit of its strategy to sell everything to

everybody. It does not, however, seek to be the Jack of all trades.It makes efforts to rope in those with category

expertise.

c) Target

Pantaloon targets the large and growing upper-middle and middle class of Indian society.

Pantaloons, with its focus on ‘fresh look, feel and attitude’ offers, trendy and hip collections that are in sync with the hopes and aspirations of discerning young and ‘young-at-heart’ consumers.

d) Benefits

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

The emotional benefit as quoted by Anil Bumb, Marketing Executive that, Pantaloons offers is the entire retail experience and the feeling of pride with which the customer walks out after having shopped from Pantaloons.

e) Values and Personality:Pantaloons is known to have a youthful persona and its

own distinct sense of style that appeals to millions. In accordance with the positioning paradigm of

Pantaloons’ mantra of Fresh Fashion and perpetually reinventing itself with seasonal fashion wear, Pantaloons is associated with Bobby Deol, Lara Dutta, Amrita Arora to endorse its brand.

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

Floor PlanThe floor plan demarcating the different

sections and their placement is made by the concept, design and visual merchandising team at the head office and is implemented by the zonal teams

The plan changes after each End of Season Sale (EOSS) i.e. the Autumn-Summer ( August) and Autumn- Winter (February) sales

Changes are made according to the revenue per square foot of each section and brand

The Perfume section is always kept at the entrance in every Pantaloons store

The Brands are placed according to the expected sales

‘Highpoints’ aim at attracting the consumer by displaying the latest and “in” merchandise

The store also has clusters at entry and exit points

Merchandise Management

Management of a category of merchandise is amore effective tool than managing individual brands.

The company stresses on promoting a product category, thus making brand marketing a secondary function.

Pantaloon’s merchandising team is divided into the category management team and the merchandise management team.

Visual Merchandising

Merchandise Display :

A light to dark color story is always followed

The store usually also follows a color theme.

For example if the color theme is pink then the garments at the focal points, on theclusters etc. will be within the pink palette.

Smaller, “quick pick up” products such asHairbrushes, clips, toys etc are kept near the billing counter.

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

There are A4 sized shelf talkers that tell the customer which product is from which brand.

Window Display :

The windows in each store are segregated and have different themes for display.

One of the windows is dedicated to “Fashion Friday”.

Fashion Friday is a concept by Pantaloons since they believe in fresh fashion and say that they bring something new to the customers every week.

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

Point of SalePromotions and Signage: Various

schemes are promoted in the store through announcements Other promotional materials such as those with the brand ambassadors etc are given to various stores by the head office.

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

Planning at PantaloonsPlanning at Pantaloon is a top-down, bottom-up process.

The top management forecasts the sales for each store and category and decides the space allocation for each category based on which targets are set for sales, gross margins, inventory turnover, discounts, mark-ups, stock levels and net margins for each store and each category

The category managers take a more micro approach wherein they study the category’s past performance and trends in the marketplace

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

Merchandising ProcessFirst, the design team develops the design or

a new pattern. The team is led by the visual merchandising

head and has 20 designers for product development. The design department depends on fashion forecast

magazines, exhibitions and may also visit leading retailers in the city to understand the latest styles.

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

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

The category captain and his team is given the entire year’s budget and sales target for the category based on which he decides whether to experiment with a new design or not

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

This is the most crucial stage where the category manager prepares the merchandise control chart (see table ‘Keeping a Tab on Tags’)

On- Shelf StrategiesPantaloon has a clear policy for each

category of merchandiseThe company gets weekly reports on Tuesdays, which it

calls dump. This data is analysed to see the movement of various types of goods. The tracking is done based on the merchandise category classic, fashion or collection

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

The company believes that if the style or colour is not right no amount of discount will help sales

So if the merchandise does not move during its shelf life, it is just removed and kept at the warehouse for end of season sale. If the price appears to be a deterrent, the company corrects it right away and marks down the price immediately

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

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

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

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

Supply Chain Infrastructure

Strategies adopted by pantaloons

In 2005, pantaloons refurbished its image Junking the old positioning of 'India's family store'

and is planning to target the youth insteadPantaloons now carries the `Fresh Fashion'

statement across its 12 storesGoing forward with increasing sales promotion and

massive store expansion it is just going to increase the brand value in the mind of the consumers

It has transformed the consumers from being a brandloyal to store loyal

The company has roped in Bollywood stars to promote its apparel offerings

Loyalty ProgrammeLoyalty programme – ‘Green card’ Over 390000 card holders having exclusive privileges,

rewards and benefitsGreen Card holders contribute to nearly 50 % of sales

annuallyThey practice a 4 – tier (1, 3, 5, and 7- Star) approach to

cater to different segmentsAn integrated loyalty programme for its various formats, to

have an understanding of customer buying habits across different formats

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

STRENGTS

WEAKNESS

OPPORTUNITY

THREAT

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

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

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

Store layout is decided on the basis of :-

- Total space in the store - The concept of the store

( Hypermarket or Supermarket ) - The flow of the customer

- The number of categories present - The business returns of the present

categories .

The number of stores depend upon the different factors such as the - class of the city tier 1 or tier 2, buying power of the people in city, number of present stores in the city It can range from minimum 1 to 22

Location of the store depends upon , the catchment, the current business potential, space /property availability for the store and future business prospects and competitors and last but not the least feasibility of business

Marketing is broken down in two activities, ATL ( Above the line ) and BTL ( Below the line )

SCM & Inventory: The planning is done for 4 to 5 months in advance, depending on the annual business targets, the stock level is planned, which are based on the promotions, coming for that period, weekends and Wednesdays, festivals and sales periods

Considering the sales targets, the stocks are calculated and the backward calculation is done, for normal days the (MBQ’s) Minimum Base Quantities are set at the store levels

and ordering is done accordingly,

also we have gone live with (ARS)

Auto Replenishment System, where

the PO will be generated automatically,

once the stocks reaches MBQ level.

Recommendations & ConclusionsAfter a visit to Lower Pare, the first thing observed was the

volume of the announcements made about the promotions of the store was very high. It needs to be reduced so as to avoid any inconvenience to the customers

Due to the numerous brands that Pantaloons sells, there is a lot of clutter with regards to the display. This needs to be spaced out so that the arrangement looks pleasing to the eye

Research has proved the importance of music in a retail store and how it acts as a stimulant to purchase. They should play music that is fresh so that it goes in sync with its product offering and depending on the time of the day they should play loud or soft music

We recommend an area that would be made a “Kidzone”. This area would have toys, books and games so that the kids can enjoy while the parents shop

A café is recommended so that customers don’t have to step out of the store incase they are hungry or thirsty. It also keeps a customer engaged for a longer time in the store

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

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