1 INTRODUCTION Pantaloon Retail (India) Limited is India’s largest leading retailers. It operates on multiple platforms like Value and life style segment in the Indian consumers market. Company headquarters located in Mumbai. As on Feb 2009 Company operates over 12 million square feet of retail space, 1000 stores in 71 cities with employee strength of 30,000 people. The company isin aspect of giving retailing a modern look with reachable for middle and middle lower class people. Retailing includes retail formats like Pantaloons, Big bazzer, Food bazaar, brand factory, Blue sky, and Top 10, Star & sitar and e zone. The company also operates on online future bazzar.com for upper class that can get internet connectivity. Home Town a large-format home solutions store. Pantaloon Retail is the flagship company of Future Group, a business group catering tothe entire Indian consumption space. Future Group led by its founder and Group CEO, Mr.Kishore Biyani, is one of Indias leading business houses with multiple businesses spanningacross the consumption space. While retail forms the core business activity of Future Group,group subsidiaries are present in consumer finance, capital, insurance, leisure and entertainment, brand development, retail real estate development, retail media and logistics. Corporate statement Our customers will not just get what they need, but also get them where, how and when they need. We will not just post satisfactory results, we will write success stories. We will not just operate efficiently in the Indian economy, we will evolve it. We will not just spot trends, we will set trends by marrying our understanding of the Indian consumer to their needs of tomorrow. M ail stone to world class retiling
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INTRODUCTION
Pantaloon Retail (India) Limited is India’s largest leading retailers. It operates on multiple platforms like Value and life style segment in the Indian consumers market. Company headquarters located in Mumbai. As on Feb 2009 Company operates over 12 million square feet of retail space, 1000 stores in 71 cities with employee strength of 30,000 people. The company isin aspect of giving retailing a modern look with reachable for middle and middle lower class people. Retailing includes retail formats like Pantaloons, Big bazzer, Food bazaar, brand factory, Blue sky, and Top 10, Star & sitar and e zone. The company also operates on online future bazzar.com for upper class that can get internet connectivity. Home Town a large-format home solutions store.
Pantaloon Retail is the flagship company of Future Group, a business group catering tothe entire Indian consumption space. Future Group led by its founder and Group CEO, Mr.Kishore Biyani, is one of Indias leading business houses with multiple businesses spanningacross the consumption space. While retail forms the core business activity of Future Group,group subsidiaries are present in consumer finance, capital, insurance, leisure and entertainment, brand development, retail real estate development, retail media and logistics.
Corporate statement Our customers will not just get what they need, but also get them where, how and when they need.
We will not just post satisfactory results, we will write success stories.
We will not just operate efficiently in the Indian economy, we will evolve it.
We will not just spot trends, we will set trends by marrying our understanding of the Indian consumer to their needs of tomorrow.
M ail stone to world class retiling
The company was established in 1987 as Manz wear private Limited launched its first product Pantaloons rousers. In May-1992 company offered Initial public offering. The company enters in modern retails business in 1997 from Kolkata with 8000Sq.ft store. In 2002 company initiated a lunch of food chain market Food bazzar. In 2004 central mall was lunched to concentrate on India one sector launched near brigade road in Bangalore. In 2005 group moves beyond retailing starts diversification and in organic growth by acquiring galaxy entrainment, Indus League clothing and Planet retail. In 2006 company starts finical facilitation company to help internal need Future capital Holdings. Starts its first Home building and improvement product retailing in Bangalore. Starts joint ventures with Staples, US based company and with Genreali a Italian Insurance major. In 2007 Group had turnover of $1 billion. Specialized companies in retail media, logistics, IPR and brand development and retail-led technology services become operational. In2008 big bazaar crosses 100 malls. Reorganization and awards.
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Coca-Cola Golden Spoon Awards 2008
2007 Images Retail Awards -Kishore Biyani
National Retail Federation Awards International Retailer for the Year 2007 ± PantaloonRetail (India) Ltd
World Retail Congress Awards Emerging Market Retailer of the Year 2007 ± PantaloonRetail (India) Ltd Hewitt Best Employers 2007 Best Employers in India (Rank 14th) ± Pantaloon Retail(India) Ltd
PC World Indian Website Awards Best Indian Website In The Shopping Category -Futurebazaar.com
Ernst & Young Entrepreneur of the Year Award Ernst & Young Entrepreneur of the Year (Services) ± Kishore Biyani
CNBC Indian Business Leaders Awards The First Generation Entrepreneur of the Year ± Kishore Biyani
Lakshmipat Singhania ± IIM Lucknow National Leadership Awards
Images Retail Awards Best Value Retail Store ± Big Bazaar Best Retail Destination ± Big Bazaar Best Food & Grocery Store ± Food Bazaar Retail Face of the Year ± Kishore Biyani
Readers¶ Digest Awards Platinum Trusted Brand Award - Big Bazaar
CNBC Awaaz Consumer Awards Most Preferred Large Food & Grocery Supermarket ± Big Bazaar
Strategies
The company observes retail customer trend and changing consumption tastes. Organizations customer driven opposed to product driven .Company is very conscious about culture and regional consumption pattern. Strategies change frequently due to orient to the customers needs. The continues of learning, unlearning and relearning is applied to update the quick changing strategies across the organization. As Kishore Biyani MD Pantaloon retail India LTD says³Retail is like riding bicycle. In uphill if you stop pedaling you will slide down´. The statement express the need of continues learning process to form the strategies. Based on analysis its business strategies can be categorized in 3 major groups. They are Diversification strategy Classes destination strategy Maximum market shares strategy
Diversification strategy
The company started its business as textile manufactures but growth in modern organized retailing attracted the company to switch diversify to the next consumption pattern. The company diversified and acquired a large business in organic and inorganic way. But company did not forget ripe its strategy and values in the diversified company. In every new business company started to rewrite the rules by retaining values.The company in latter
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stage organized to support each other by physical material flow if required. Diversification is done in two main categories
RETAIL FORMATS and SPECIALIZED BUSINESS
Brands at Pantaloons
Pantaloons brands •Agile•UMM•Bare Denim•Bare 7to14• Chalk •Rig •Mix n match • All •Honey
Non-Pantaloons Brands •Biba•109 •Remanika•Spykar•Lilliput•Lee •Indus league
According to Philip Kotler “ Retailing includes all the activities involved in selling goods or services to the final consumers for personal, non – business use. A retailer or retail store is any business enterprise whose sale volume comes primarily from retailing”.
The next phase of economic development in India will be consumption led. With the sustained and strong rates of economic growth, retail sales is expected to cross USD 400 billion by 2010, turning India into the biggest retail market in the world! In India, the retail industry is broadly divided into the organized and unorganized sectors. Of this total market, the organized sector accounted for Rs. 350 billion (about 3.5 % of the total) of the total revenues. India retail industry is the largest industry in India, with an employment of around 8% and contributing to over 10% - 11% of the country's GDP. McKinsey report 'The rise of Indian Consumer Market', estimates that the Indian consumer market is
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likely to grow four times by 2025.Organized retail market in India is expected to reach US$ 50 billion by 2011.
The major competitors in retail in India are-
Departmental Hypermarket
Life Style Big Bazaar
Pantaloon Reliance
Shoppers Stop Wal-Mart(to enter)
There are many categories in the organized sector and the unorganized sector cannot be classified into categories but in terms of markets like vegetable market, gold market ,Clothes Market etc
Evolution of Retail in India
Informal retailing sector
Typically small retailers
Evasion of taxes
Difficulty in enforcing tax collection mechanisms
No monitoring of labor laws
Formal Retailing Sector
o Typically large retailers
o Greater enforcement of taxation mechanisms
MAJOR PLAYERS
Shopper StopVishal Retail LimitedTrent India LimitedReliance RetailBharti Wal-Mart
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PANTALOON RETAIL SEGMENTS
1. Pantaloons : Lifestyle products under Private Labels and third party brands
2. Central: Seamless mall providing the customer with a wide range of lifestyle products across multiple national and international brands
3. Big Bazaar: Value retailing with a range of products from apparel, toys, accessories, consumer durables to household products and furnishing
4. Food Bazaar: Food and personal care products including dry groceries and FMCG products
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Big Bazaar
Big Bazaar is a chain of department stores or hypermarkets, offering all types of consumer goods including general merchandise, home furnishings, crockery, cutlery, utensils, sports goods and others at a reasonable price. The stores work on the economy model, offering the best “Value for Money”Proposition for Indian consumers. About 91 Big Bazaar stores were in operation, as of July 2008.
Food Bazaar
Food Bazaar is a chain of large supermarkets catering to the eatables segment, offered at very economical and affordable prices. The store houses a blend of external as well as the Company’s private label brands such as Care, Tasty Treat, Fresh and Pure, and others. As of July 2008, there were about 136 Food Bazaar stores in India. Source: Food Bazaar, Suburbs of Mumbai
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Brand Factory
Brand Factory brings to the Indian consumers the promise of revolutionizing value shopping by offering the best Indian and International brands at Smart Prices.
Shop, Eat and Celebrate • Launched in May'04 at Bangalore, Central is a showcase, seamless mall and the first of its
kind in India• Central offers everything for the urban inspirational shopper to shop, eat and celebrate. Located
in the heart of the city, Central believes its customers should not have to travel long distances to reach us; instead we must be present where customers frequently visit.
• Central houses over 300 brands across categories, such as apparel, footwear and accessories for women, men, children and infants, apart from a whole range of Music, Books, Coffee Shops, Food Courts, Super Markets (Food Bazaar), Fine Dining Restaurants, Pubs and Discotheques.
CentralShop, Eat and Celebrate • Launched in May'04 at Bangalore, Central is a showcase, seamless mall and the first of
its kind in India• Central offers everything for the urban inspirational shopper to shop, eat and celebrate.
Located in the heart of the city, Central believes its customers should not have to travel long distances to reach us; instead we must be present where customers frequently visit.
• Central houses over 300 brands across categories, such as apparel, footwear and accessories for women, men, children and infants, apart from a whole range of Music, Books, Coffee Shops, Food Courts, Super Markets (Food Bazaar), Fine Dining Restaurants, Pubs and Discotheques.
• E-commerce: Pantaloon’s website Futurebazaar.com has revolutionized the e-commerce business in India. It offers a wide range of products at affordable prices.
• Food: In food business, the group offers a host of options.
• Food Bazaar – a chain of large supermarkets; Brew Bar – a beer bar; café Bollywood – a national chain of eateries; Chamosa – a pan-Indian chain of snack counters, and Sports Bar – a bistro focused on the world of sports.
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SERVICE MARKETING MIX
Product:
E-commerce: Pantaloon’s website Futurebazaar.com has revolutionized the e-commerce business in India. It offers a wide range of products at affordable prices.
Food: In food business, the group offers a host of options.
Food Bazaar – a chain of large supermarkets; Brew Bar – a beer bar; café Bollywood – a national chain of eateries; Chamosa – a pan-Indian chain of snack counters, and Sports Bar – a bistro focused on the world of sports.
Fashion: The group offers a variety of options in fashion. Its brands include aLL, Blue Sky, Central, Etam, Fashion Station, Gini & Jony, Navaras, Pantaloons, and Top 10.
Home & Electronics: Options include: Collection i – a lifestyle furniture store;Electronics Bazaar – offers branded electronic goods and appliances; e-zone – trendiest electronics items; Furniture Bazaar – entire range of Home Furniture;Home Town – one stop destination for all the home needs.
General Merchandise : Options Include: Big Bazaar , Shoe Factory, Brand Factory, Navaras, KB’s FairPrice , Central, Blue Sky
Leisure & Entertainment: Options are: Bowling Co. – state-of-the-art premium family entertainment centre, offering multiple, novel and unique leisure and entertainment options; F 123 - offers a wide range of gaming options ranging from bowling and pool to redemption and interactive video games to bumper cars.
Wellness & Beauty: Options are: Health Village – a state-of-the art spa and yoga centre; Star & Sitara: Beauty salon for men and women; Tulsi - provides access to the best allopathic, ayurvedic and homeopathic medicinal products; Turmeric - offers beauty products like colour cosmetics, fragrances, herbal and specialty skin items, hair products and bath accessories.
Pantaloons India has brought a whole new revolution when it comes to pricing strategies, which is evident through the success of its Big Bazaar and Food Bazaar outlets.
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Place:
The company operates over 12 million square feet of retail space, has over 1000 stores across 71 cities in India and 65 rural cities with taking over Aadhar(). It plans to take up floor space of 30 million square feet by 2011.It has plans to open over 3000 new stores by 2010. It is targeting the Tier-2 and 3 cities which has a huge unleashed potential.
Promotion:
They use magazines, newspapers, television, radios , hoardings, internet etc for promoting the brand . They have joint ventures and alliances with many companies to promote the brand.
Seasonal Discounts , Sales Discounts during Festivals are offered to attract consumers.
People:
At the senior management level, the group hired high profile executives from reputed organizations like Goldman Sachs , Coca-Cola India, PRIL also tied up with a few management schools to create a management talent pool for the lower levels.
Best Employers in India (Rank 14th) in the Hewitt Best Employers 2007 survey.
The company follows a multi-format retail strategy that captures almost the entire consumption basket of Indian customers.
Processes:
Pantaloons Retail has implemented SAP with an investment of $10 Million in keeping pace with the technology and it is currently in the process of setting up a SAP consultancy software. SAP will be helpful in building robust transaction management system and
Physical Evidence:
It has a huge list of awards, recognition in its kitty like Most Admired Fashion Group Of The Year, Most Admired Food & Grocery Retailer Of The Year , Most Admired Food Court , Most Admired Retailer of the Year, ,Most Admired Food & Grocery Retailer of the Year – Supermarket
It is the pioneer in the retail industry and it believes in developing strong insights on Indian consumers and building businesses based on Indian ideas, as espoused in the group’s core value of ‘Indianness.’ The group’s corporate credo is, ‘Rewrite rules, Retain values.’
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Marketing Policy
Focus :-
According to Pantaloons, fashion is all about here and now. The company has primarily focused on the youth of the country since the major part of the population lies in the age of 15to45 which is the income group. Pantaloons are very serious behind the idea of “fresh fashion “and have projected youth at the fore-front. The ideology of the company is Fresh Fashion, Fresh Attitude, Fresh Feeling.
Scope of Marketing: -
Positioning- Leading player in organized retail in India:-
PRIL is the market leader in the organized retail segment and has a pan India presence with its stores operational across 15 states. The company has presence in food and grocery, clothing, home furnishing and improvement, durables, footwear, leisure and entertainment, health and beauty, etc. PRIL operates through multiple formats like Hypermarket (Big Bazaar), Departmental Store (Pantaloon), Supermarket (Food Bazaar)and Specialty Stores. Thus, PRIL is best placed to extend its presence across categories,formats and regions.
The positioning is a creative exercise down with an existing product. the well known products generally hold a distinctive position in consumer's minds. The positioning requires that every tangible aspect of product, price, place and promotion must support
the chosen positioning strategy. Company should develop a unique selling proposition (USP) for each brand and stick to it, PPL consistently promotes its DAP fertilizer by Higher yield at lower cost.As companies increase the number of claims for their brand, they risk disbelief and a loss of clear positioning. In general a company must
avoid four major positioning errors. Those are under positioning over positioning, confused positioning and doubtful positioning.
In the Life-style segement (Pantaloons) the positioning of the store is very different. The store is very open and has a soothing music when the customer enters. The store is very open and spacious; the door of the store is always open which is inviting customers. Since the store is very spacious Pantaloons has segmented its products in a Demographic way and this is the same in all the outlets .The entrance would have the cosmetics,jewellary etc then is the ladies section which first has the Indian wear then the western after that it’s the men’s wear and then the sportswear. Pantaloons brands like UMM, DJ&C are always positioned at the eyelevel. There is a lot of detailing on the presentation of the products which
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are then displayed on the mannequin. The company would place its beat products on the mannequin. Pantaloon always positions its product at a place where the consumer would see the product once and is easy to locate. Location plays a major role in positioning the product in their store to enhance sale. The company would also position itself according to the needs of the youth because it is the target market and likes things fresh.
Promotional Strategy :-
Under the market strategy promotional idea is very important. Organization provides some schemes or rebates to retailers or consumers. They make advertisement according to convenient of the people and the feature of the product. So on the basis of marketing strategy a organization runs in the market. It is several types of which makes helpful to increase sales and turnover of the organization. Pantaloons is the first company to promote their products through movies like Na Tum Jano Na Hum and many others, since the company’s focus is youth they tend to promote their products through youth icons like Mahendra Singh Dhoni, Bipasha Basu, they also tend to sponsor events which are watched by the youth like the Pantaloons Femina Miss India which they relate to or is liked by the youth. The company also promotes its products through discounts. For Example-In Pantaloons (life style segement) on a purchase of one t-shirt(UMM) you would have to pay Rs349 and on a purchase of two one would buy it for Rs549.The company keeps yearly or quarterly discounts. Pantaloon majorly promotes its brands through promotions in events which involve youth like Malhaar, Umang and popular college festivals etc
Sectoral Strategies :- India has been a country which followed the concept of un-organized retail till very recently when the real retail boom happened. The major change was brought in by Pantaloon and Shoppers Stop. Both these companies belonged to a family and the concept of malls started in India and within 5 to 9 years has become a huge sector. Retail contributes 10% to India’s GDP. The retail sector in the country is around $350billion and is expected to grow at a very smooth pace. The organized retail sector is segmented into different types like the hyper market, departmental store, speciality stores ,discount stores and there are other types .
Over the past few years the Organized Retail Sector has been characterized by the following strategies:–
-Large Formats
-Rapid Expansions
-More Players with variety of formats
-Urban India is the initial target market
-Location
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-Efficient Supply Chain Management
-Profitability Model
PLC and Responses-
Marketing Activities-
Pantaloons Retail Company Ltd is involved in many marketing activities but they are different for different stores
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Product category and Life Cycle
Product Category:-
Pantaloons Retail India Limited is a company which has many branches like Pantaloon, Big Bazaar, Food Bazaar etc .There are various products available in various stores .The three stores by themselves categorize various products according to their target markets . Pantaloons has its flagship product since its inception ‘Bare’ and it is only available in Pantaloons and not in any other Pantaloons Retail Company Limited Store but if there are some unsold stock which needs to be sold then they sell it in Big Bazaar.Very recently the company had opened a new mall called Sobo-Central in Mumbai Tardeo were there are various products like apparels, accessories ,electronic gadgets etc available at different storeys of the mall and all the products are well segmented according to the needs of customers. Ladies Apparel and related products on the entire first floor, mens wear on the second floor and this how it goes on.
Product Life Cycle:–
Bare is the oldest product offered by Pantaloons ever since it was incorporated. It is the company’s flagship product and is in the market since a long time. Bare was first introduced as a men’s formal wear when Pantaloons had started its operations. Then, the company also introduced “Bare Cotton Pants”. The product was doing really well and was sold very extensively over the years. The company then introduced Bare Jeans which was mainly positioned for the youth. The company would aggressively sell the product through various discount offers and they have successfully able to change the design , introduced a lot of variations in Bare to keep the product going. Now they have re-introduced Bare with new-formal Bare shirts .These shirts are formal shirts and they are suited for working executives were they are offering some discounts with “Bare Formal pants”. This is how they have sustained and increased the declining sales of Bare as a product which they have successfully re-invented.
New Product Development-Pantaloons Retail Company Limited has many branches and within those branches there are many products .The company has a trend of introducing new products in their branches very frequently. Pantaloon and Central both had introduced a new collections of UMM in their stores very recently. The new collection was given exclusive space and that section was very beautifully decorated and gave the customers a very new look and feel of the space and the product which then essentially helped for higher sales . There was no offer on the jeans as they had positioned it as an exclusive product. This is how they redefine their old brands and introduce new products.
Number of major brands- Pantaloon Retail have a number of
brands which are created by them :-
Bare
DJ&C
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UMM
RIG
Shrishti
Lombard
KNIGHTHOOD
Promotional Offers Run by Pantaloons Retail Company Limited
Big bazaar believes in advertising its brand and offers. We often encounter big bazaar’s advertisement in the newspapers. Big Bazaar Wazirpur is no different the various promotional schemes are decided by the main office and all the outlets run these schemes, they understand the importance of communication. The Future Group has created a category for the growing media industry called Future Media, which is to be a medium through which advertisers can communicate with shoppers in the store. On the effectiveness of this method of reaching the customer, Partho Dasgupta, Chief Executive Officer, Future Media, says “You are communicating to the consumer when and where it matters — at the time of making a purchase decision.” The company is considering all types of ways to reach the customer, including digital signage, audio, video and blue-tooth technology etc. The Future Group has switched its media agency and has selected Starcom to handle its account which is around Rs. 2-2.5 billion and is said to be one of the largest accounts in the past five years. The company was earlier with Carat for the past two years. As Pantaloon expands across all formats and is rapidly increasing its sq ft space from 4 million sq ft to 30 million sq ft, the company is also looking for creative agencies. At present the company uses Mudra for its value retail segment and Percept for its lifestyle retail segment. The various promotional schemes undertaken by big bazaar are as follows:
The punch line of Big Bazaar says “IS SE SASTA AUR ACCHA KAHI NAHI”. This line gives the feeling that Big Bazaar gives merchandise which is cheapest in the market or in other words the value for money which a customer will be getting here will be more than anywhere else.
Wednesday is the cheapest day. This is done to divert some of the crowd coming on weekends to a relatively free day. Big bazaar advertises Wednesdays as the cheapest day in all the leading dailies across the capital. This offer targets housewives and encourages them to purchase groceries and vegetables because no one purchases vegetables on a weekly basis, they purchase it at least two times a week.
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Big Bazaar has announced a unique exchange offer `Bring anything old and take anything new’. Under the exchange offer, old garments, utensils, furniture, plastic ware, newspapers or just about anything will be weighed and valued and customers will be given exchange coupons. There is also a direct exchange on mobile and electronic goods during the period with attractive discounts on new purchases.
Big Bazaar’s `The Great Exchange Offer’ has mobilized more than two lakh families to actually carry the junk of the house and offload it at the nearest Big Bazaar. Retail analysts say that generally February and March are dull months for consumer buying in the country and therefore this kind of a promotion campaign is needed to boost sales during the period.\
PANTALOON group’s hypermarket chain, Big Bazaar, celebrated Republic Day as the Maha Savings Day, when shoppers at Big Bazaar and Food Bazaar outlets across the country, were offered merchandise at rock bottom prices.
The Maha Savings Day saw shoppers got deals they have never seen or heard before. The offers spread across categories from electronics to utensils, from apparel to furniture and also food. For example pressure cooker for Rs 299, two Ruf n Tuf Jeans for Rs 499, and a Motorola C115 for Rs 1,399.
Big Bazaar usually runs a full page advertisement on Saturdays and Sundays in all the leading dailies communicating various offers. This is done to attract crowds on weekends because most of the people usually shop during weekends.
Pantaloons retail India limited provides Green card, this Green Card is passport to a whole new world of exclusive benefits and privileges. These includes:
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.
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Exclusive billing counters and much more.
Big bazaar in association with ICICI banks has launched loyalty cards for the customers. They are:
ICICI Bank Big Bazaar Silver Credit Card It gives you the benefits of regular cards and additional features to make your shopping not only enjoyable but also a way to save more with Big Bazaar.
ICICI Bank Big Bazaar Gold Credit CardThe card brings to you more reasons to save and earn rewards on its usage. It gives you all the benefits of regular cards and additional features to make your shopping not only enjoyable but also a way to save more with Big Bazaar.
Shakti Card
Shakti is a credit card for housewives. You need not submit income proof. Simply show your Big Bazaar bill of more than Rs. 500 and a lifestyle proof like club membership card, health club card etc. And get your ‘Shakti’. You can use Shakti at all the Big Bazaar and Food Bazaar outlets
Pantaloons Retail and Jet Airways have got into a tie-up and now a Jet Privelage customer would avail discounts in Pantaloons.
Mahendra Singh Dhoni is appointed Brand ambassador and would be campaining for the apparels of Big Bazzar(DJ&C) . The tagline is” Desh Badlo Duniya Bado”
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Current Market Challenges Faced by Pantaloons
Competition:
With a sales turnover in 2008-09 FY of Rs. 5048.91 cr, pantaloon has been a clear market leader with the next competitor being Shoppers Stop with a turnover of Rs. 1244.79 cr. The numbers suggest that Pantaloon has had no competition at all.
Another interesting statistic is about the Pantaloon’s net profit for FY 2008 in comparison to Shoppers Stop. Pantaloon had a net profit of Rs.125.94 cr, while Shoppers Stop had a net loss of Rs.63.72 cr. Clearly Pantaloon remains the market leader as far as retail is concerned.
New Technologies :
Pantaloon’s greatest technological challenge till date has to be the introduction of SAP in 2006 and the introduction of RFID(Radio Frequency Identification Device)
SAP implementation :
Challenges:-
It took the company around $10 million to implement SAP.
Implementation of SAP just seem to be a part of the challenge faced by the company. The real challenge for Pantaloon was faced during “data-migration” (transfer of data into the SAP software) and managing the interim period when the project was underway for 6 months.
Maintaining the hardware was another challenge and the company outsourced its ABAP (Advanced Business Application Programming) resources.
Advantages:-
Pantaloon didn’t see any immediate benefits with the application of SAP. With the implementation in its nascent stage the company couldn’t calculate the Return on Investment.
RFID implementation :
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Challenges:-
At each step of implementation, human intervention was required and barcode readers had to be installed at merchandising locations.
Traceability and visibility of goods in the supply chain, lack of a unique identity at each item level, and human intervention leading to errors were some of the issues faced by the company.
These challenges led to a lack of co-ordination with the backend at the stores, hampering the company’s production planning and inventory management.
Advantages:-
According to Chinar Deshpande, CIO of Pantaloon, “Recording of data became smooth at the inward and outward terminals, which helped us save time and gain accuracy. Earlier, the possibility of scanning incorrect goods was much higher”
After the RFID implementation, the time saved on the same is about 80 percent in inward warehouse processing and 12 percent in outward
Real-time visibility of items during all stages of the supply chain improved to 98 percent.
Growth of PANTALOON Retail
• The following are the reasons for growth of PANTALOON retail in India- Increase in disposable income of consumers
Increase in consuming desire
• Low share of organized retailing
• Purchasing power of Indian urban consumer is growing
• In India there is a huge wastage of fresh fruits and vegetables.
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Conclusion
Pantaloon Retail (India) Ltd is a company where it strives for lifestyle and value through its products and services. Through the study, it is observed that pantaloon can be said an organization where the P’s of marketing is taken seriously for the maximum profitability through large range of products, promotional activities for the company and a solid sales organization monitoring that the P’s are worked effectively. The store has been well maintained in accordance with the latest demands of the consumers and through all these strategies Pantaloon ensures repeated customer patronage.
Pantaloon retail India evolved its business strategy based on understudying customers. The organization deploys the cultural and regional strategies to attract the customers. The changing emotions of customers are tracked and they are linked with the power of modern retailing environment. But still the company has introduce modern retailing malls to the social class people of India it has fear of threat of business decline from the competitors like Reliance fresh and Aditya birla more Who are potential competitors.
