MANAGEMENT THESIS

(Final Report)
ON
“A study of customer perception on the
Marketing strategies followed by PANTALOON
For brand building”

Faculty Guide: Submitted By

Mrs. rutuparna Das Md. Rabiul Hoque
0806999004
 A THESIS ON
“A study of customer perception on the
Marketing strategies followed by PANTALOON
For brand building”

By
Md. Rabiul Hoque
0806999004
(MBA 2008-10)

A REPORT SUBMITTED IN THE REQUIREMENT OF MBA

PROGRAM
(2008-10)
 DECLARATION

This is to certify that the Management Thesis entitled as,

“A study of
Customer perception on the marketing strategies followed by
PANTALOON for brand building”

Submitted to BPUT in the requirement of Master of

Business Administration is record of original, project work done by
me during the period of study in under the supervision of
Mrs.Rutuparna Das (Faculty of Retail).

Place: Burdwan Md. Rabiul Hoque

Date: (0806999004)
 TABLE OF CONTENTS

 ACKNOWLEDGEMENT
 LIST OF TABLES
 ABSTRACT/SUMMARY

 CHAPTER 1 :INTRODUCTION
 Objectives
 Limitations
 Methodology
 CHAPTER 2: INDUSTRY PROFILE

 CHAPTER 3: COMPANY HISTORY AND PROFILE

 COMPANY HISTORY

 COMPPANY PROFILE

 MAJOR PLAYER IN RETAIL INDUSTRY

 COMPANYSTRATEGIES

 CHAPTER 4: THEORITICAL BACKGROUND (ABOUT TOPIC )

 CHAPTER 5: REVIEW OF LITERATURE

 CHAPTER 6: EMPIRICAL ANALYSIS

 CHAPTER 7 : FINDINGS

 CHAPTER 8: CONCLUSION

 CHAPTER 9 : ANNEXURES

 CHAPTER 10 : BIBLIOGRAPHY
 ACKNOWLEDGEMENT

At the outset, I thank my faculty of Retail Mrs.Rutuparna Das for

Coordinating the project work and giving me necessary directions on doing

thisproject to the best of my abilities. Heartfelt thanks to all the persons whose ideas,

critical insights and suggestions have been valuable in the preparation ofthis report.

Md Rabiul Hoque

(0806999006)

(MBA2008-2010)

(6th trimester)

LIST OF TABLE AND ILLUSTRATIONS

1. Indian retail market.

2. Retail formats available in India.

3. Fastest growing retail formats in India.

4. Fastest growing retail segment in India.

ABSTRACT
This report discuss about a customer perception and strategies used
by retail companies.
My topic is customer perception on strategy followed by
pantaloons for brand building. To make a good brand image a
company need to make a good strategy and all aspects of business
that affected by that strategy. As we all know customer is the king
of the market they have the right to go anywhere. A customer
thinks very differently that called consumer behavior. A customer
wants to get the full value of their money whatever he buys he
wants full satisfaction from that product and if the company
succeeds to satisfy their customer then the company can easily
make their brand image. So the company need to make good
strategy and first starts with 4p’s of the company. Product, price,
place, promotion these are the most important things to remember
in mind. And the porters generic strategy cost leadership, product
differentiation and focus these strategies help company to compete
with its competitors.

CHAPTER-1

INTRODUCTION
Objective
  To find out the different strategies used by the company to increase
the sales.
 To find out how this strategies useful to company as well as
customers.
 To find out customers satisfaction level.
 To get a right feedback from the existing customers.
 Pantaloon to hive off Big Bazaar, Food Bazaar
Limitations

 The sales person is busy in our routine work so they refuse to

giveInformation.
 Most of the sales person is not give the information to the customers
want and needs.
 Some store information is confidential.
 For Example: - Future plan, accounting information.
 Most of the time customers are saying that they are busy or I have
notime.

Methodology
 1. The study involves the primary data which is collected
through questionnaire,interview, and observation.
2. It involves use of secondary sources such as web and other
research articlesprinted by various financial institutions and
other journals and magazine.
3. It involves analysis and tabulation of data which is collected
from customers isdone by various means such as line graphs,
pie charts and bar graphs.
4. The project involves the study of customer’s perception.

CHAPTER-2
ABOUT RETAIL INDUSTRY IN INDIA
Retail is India's largest industry. It accounts for over 10 per cent of the India's
GDP and around 8 per cent of the employment. Retail sector is one of India's
fastest growing sectors with a 5 per cent compounded annual growth rate. India's
huge middle class base and its untapped retail industry are key attractions for
global retail giants planning to enter newer markets. Driven by changing
lifestyles, strong income growth and favorable demographic patterns, Indian
retail is expected to grow 25 per cent annually. It is expected that retail in India
could be worth US$ 175-200 billion by 2016. The organized retail industry in
India had not evolved till the early 1990s. Until then, the industry was
dominated by the un-organized sector. It was a seller’s market, with a limited
number of brands, and little choice available to customers. Lack of trained
manpower, tax laws and government regulations all discouraged the growth of
organized retailing in India during that period. Lack of consumer awareness and
restrictions over entry of foreign players into the sector also contributed to the
delay in the growth of organized retailing. Foundation for organized retail in
India was laid by Kishore Biyani of Pantaloons Retails India Limited (PRIL).
Following Pantaloons’ successful venture a host of Indian business giants such
as Reliance, Bharti, Birla and others are now entering into retail sector. A
number of factors are driving India's retail market. These include: increase in the
young working population, hefty pay-packets, nuclear families in urban areas,
increasing workingwomen population, increase in disposable income and
customer aspiration, increase in expenditure for luxury items, and low share of
organized retailing. India's retail boom is manifested in sprawling shopping
centers, multiplex- malls and huge complexes that offer shopping, entertainment
and food all under one roof. But there is a flip side to the boom in the retail
sector. It is feared that the entry of global business giants into organized retail
would make redundant the neighborhood Karana stores

Resulting in dislocation in traditional economic structure. Also, the growth

path for organizedretail in India is not hurdle free. The taxation system still
favors small retail business. Withthe intrinsic complexities of retailing such
as rapid price changes, constant threat of productobsolescence and low
margins there is always a threat that the venture may turn out to be aloss
making one.
A perfect business model for retail is still in evolutionary stage.
Procurement is very vital cogin the retail wheel. The retailer has to fight
issues like fragmented sourcing, unpredictableavailability, unsorted food
provisions and daily fluctuating prices as against consumerexpectations of
round-the-year steady prices, sorted and cleaned food and fresh stock at
alltimes.

Trained human resource for retail is another big challenge. The talent base
is limited and withthe entry of big giants there is a cat fight among them to
retain this talent. This has resulted inbig salary hikes at the level of upper
and middle management and thereby eroding the profitmargin of the
business. All the companies have laid out ambitious expansion plans
forthemselves and they may be hampered due lack of requisite skilled
manpower.

But retail offers tremendous for the growth of Indian economy. If all the
above challenges aretackled prudently there is a great potential that retail
may offer employment opportunities tomillions living in small town and
cities and in the process distributing the benefits ofeconomic boom and
resulting in equitable growth.
 Indian Retail Market

700

600

500

400

300

200

100

0
2006 2010 2015

US $ Billion
%split
Urban 45
Rural 55

PRESENT INDIAN RETAIL SCENARIO

The retail industry is divided into organized and unorganized sectors. Over
12 millionoutlets operate in the country and only 4% of them being larger
than 500 sq.ft. (46 m²) in size. Organized retailing refers to trading
activities undertaken by licensed retailers, that is, those who are registered
for sales tax, income tax, etc. These include the corporate-backed
hypermarkets and retail chains, and also the privately owned large retail
businesses. Unorganized retailing, on the other hand, refers to the
traditional formats of low-cost retailing, for example, the local kirana
shops, owner manned general stores, paan/beedi shops, convenience stores,
hand cart and pavement vendors, etc.

 Unorganized market: Rs. 583,000 cores

 Organized market: Rs.5, 000 cores
 5X growth in organized retailing between 2000-2005
 Over 4,000 new modern Outlets in the last 3 years
 Over 5,000,000 sq. ft. of mall space under development
 the top 3 modern retailers control over 750,000 sq. ft. of retail space
 Over 400,000 shoppers walk through their doors every week
 47 global fortune companies & 25 of Asia's top 200 companies are
retailers
 Biggest player in India is Pantaloons Retail India Limited.

Growth in organized retailing on par with expectations and projections

of the last 5 Years: on course to touch Rs. 35,000 corers (US$ 7 Billion)
or more by 2005-06The growth factors of the retail sector of Indian
economy:

 Increase in per capita income which in turn increases the household

consumption
 Demographical changes and improvements in the standard of living
 Change in patterns of consumption and availability of low-cost
consumer credit
 Improvements in infrastructure and enhanced availability of retail
spaceEntry to various sources of financing

EVOLUTION AND TRENDS IN ORGANIZED

RETAILING
FORMATS AND RETAIL OUTLETS
Historical Indian retail market consisted of weekly markets, village fairs
and mela’sand the 19th century gave birth to the retail outlets which took
the form of convenience stores,Mom and Pop stores/ kirana stores. This
helped the consumers on to stick to a particular storefor their day to day
requirements and also avail the credit purchasing facility. And in the1980’s
people have seen the new formats like supermarket, departmental stores
and discountstores entering into the Indian retail space. In less than a
decade hypermarkets have gainedall the applause of the retail market and
stood above all the other formats by bringing in the
Conceptof“one stop shopping.” This stood as an opening door for the new
generation of theretail industry. And very soon the malls became the trend
setters in the new millennium.
This has coined the term of ‘shoppertainment’ (shopping and
entertainment) whichcan be attributed to the changing life styles of the
people.

Hypermarket: It is the largest format in Indian retail so far is a one stop

shop for the modernIndian shopper.
Merchandise: food grocery to clothing to spots goods to books to
stationery.
Space occupied: 50000 Square feet. and above.
SKUs: 20000-30000.
Example: Pantaloons retail’s Big Bazaar, RPG’s Spencer’s (Giant), Vishal
mega mart.

Supermarket: A subdued version of a hypermarket.

Merchandise: Almost similar to that of a hypermarket but in relatively
smaller proposition.
Space occupied: 5000 Sq. ft. or more.
SKUs: Around 10000.
Example: Nilgiris, Apna Bazaar, Trinethra/more.
Convenience store: A subdued version of a supermarket.
Merchandise: Groceries are predominantly sold.
Space occupied: Around 500 Sq. ft. to 3000 Sq. ft.
Example: stores located at the corners of the streets, Reliance Retail’s
fresh.

Department store: A retail establishment which specializes in selling a

wide range ofproducts without a single prominent merchandise line and is
usually a part of a retail chain.
Merchandise: Apparel, household accessories, cosmetics, gifts etc.
Space occupied: Around 10000 Sq. ft. – 30000 Sq. ft.
Example: Landmark Group’s Lifestyle, Trent India Ltd.’s Westside.

Discount store: Standard merchandise sold at lower prices with lower

margins and higher
volumes.
Merchandise: A variety of perishable/ non perishable goods.
Example: Viswapriya Group’s Subiksha, Piramal’s TruMart.

Specialty store: It consists of a narrow product line with deep

assortment.
Merchandise: Depends on the stores
Example: Bata store deals only with footwear, RPG’s Music World,
Crossword.
MBO’s: Multi Brand outlets, also known as Category Killers. These
usually do well in busy
Market places and Metros.
Merchandise: Offers several brads across a single product category.

Kirana stores:The smallest retail formats which are the highest in

number (15 million
approx.) in India.
Merchandise: Mostly food and groceries.
Space occupied: 50 sq ft and even smaller ones exist.

Malls:The largest form of organized retailing today located mainly in

metro cities, in
proximity to urban outskirts.
Merchandise: They lend an ideal shopping experience with an
amalgamation of product,
service and entertainment, all under a common roof.
Space occupied: Ranges from 60,000 sq.ft. to 7, 00,000 sq. ft.
Example: Pantaloons Retail’s Central, Mumbai’s Iorbit.
In the above graph it shows that the in India the fastest growing retail
segment is food and grocery because in India people spend more on eating.
Then dressing because India is now turning to modern age and the people
of modern age like to dress well and look well.
In the above graph it shows that the there are many formats of retailing in
India but the specialty store and supermarket is fastest growing formats in
India.

Key part of the general corporate strategy

A marketing strategy is most effective when it is an integral component of corporate
strategy, defining how the organization will successfully engage customers, prospects,
and competitors in the market arena. It is partially derived from broader corporate
strategies, corporate missions, and corporate goals. As the customer constitutes the
source of a company’s revenue, marketing strategy is closely linked with sales. A key
component of marketing strategy is often to keep marketing in line with a company's
overarching mission statement.

Basic theory: 1) Target Audience

2) Proposition/Key Element
3) Implementation

CHAPTER-3
 COMPANY HISTORY
Pantaloons Retail
Pantaloon Retail (India) Limited is India's leading retailer that operates
multiple retail formats in both the value and lifestyle segment. Pantaloon
has ushered a retail revolution in India and its founder Kishore Biyani is
known as India's "King of Retail". Pantaloon's headquarter is in Mumbai.
The company currently operates over 5 million square feet of retail space
and has plans to increase it to 30 million sq. ft by 2011. Pantaloon has plans
to open over 3000 new stores by 2010.

Pantaloon's origin can be traced to 1987 when the company was

incorporated as Manz Wear Private Limited. The company launched
Pantaloons trouser, India's first formal trouser brand. In 1992, Pantaloon
launched its IPO. In 1994, The Pantaloon Shoppe - exclusive menswear
store in franchisee format was launched across the country. Pantaloon
started distribution of distribution of branded garments through multi-brand
retail outlets across the nation. In 2001, Big Bazaar, India's first
hypermarket chain was launched. In 2002, Food Bazaar, the supermarket
chain was launched. In 2006, Future Capital Holdings, the company's
financial arm launched real estate funds, "Kshitij" and "Horizon"and private
equity fund "In division". The company is also planning forays into insurance and
consumer.

COMPANY PROFILE

Pantaloon Retail (India) Limited is India’s leading retailer with gross sales
ofRs. 2,019 crores for the financial year ending June 2006. The company
operates acrossmultiple segments including –Food, Books & Music,
Fashion, Telecom & IT, Home &
Electronics, General Merchandise, Leisure & Entertainment, Wellness,
Health & Beauty andE-tailing and that helps the company cater to every
Indian customer.Some of the leading formats include, Pantaloons
(department store), Central (seamless malls),Blue Sky (fashion accessories)
and all (fashion apparel for plus-size individuals), Big
Bazaar(hypermarket), Food Bazaar (supermarket), Fashion Station (popular
fashion), collection i(home furnishings), E-Zone (consumer electronics),
Depot (books and music) and ShoeFactory (footwear).

Company Name: Pantaloon Retail (India) Limited

Key People: - Kishore Biyani, MD & Group CEO

Listed on: Bombay Stock Exchange

Stock Code: BOM: 523574

Fiscal Year Ending: June

Major Industry: Retailing and Dept. Store Chains

Employees: 35,000 (June, 2008)

2007 Sales: 34,686,000,000

Corporate Headquarters: Pantaloon Retail (India) Limited

Knowledge House, Shyam Nagar

Off Jogeshwari-Vikhroli Link Road

Jogeshwari (East), Mumbai 400 060

Tel: +91 22-6644 2200

Fax: +91 22-6644 2222

Partner companies
Pantaloon Industries Ltd.
Home Solutions Retail (India) Ltd.
Future Capital Holdings
Converge M Retail (India) Ltd.
Indus League Clothing Ltd.
Galaxy Entertainment Corporate Ltd.

Joint Ventures Companies

Planet Retail Holdings Ltd.
Foot mart Retail
GJ Future Fashions
CapitaLand Retail India
ETAM Future Fashions India Pvt. Ltd.

Background:Founded in 1987 as a garment manufacturing company,

thecompany forayed into modern retail in August 1997 with the launch of
its firstdepartment store, Pantaloons in Kolkata.

Listing:Pantaloon Retail is a listed company on the Bombay

StockExchange (BSE, Scrip Code: 523574) and National Stock Exchange
(NSE,Symbol: PANTALOONR).

BOARD OF DIRECTORS
Mr. Kishore Biyani, Managing Director
Kishore Biyani is the Managing Director of Pantaloon Retail (India)
Limitedand the Group Chief Executive Officer of Future Group.

Mr. Gopikishan Biyani, Wholetime Director

Gopikishan Biyani, is a commerce graduate and has more than twenty
years ofexperience in the textile business.

Mr. Rakesh Biyani, Wholetime Director

Rakesh Biyani, is a commerce graduate and has been actively involved
incategory management; retail stores operations, IT and exports. He has
beeninstrumental in the implementation of the various new retail formats.

Mr. Ved Prakash Arya, Director

Ved Prakash Arya, is an engineer by training and is a graduate of the
IndianInstitute of Management, Ahmedabad. Prior to joining Pantaloon
Retail, he wasthe CEO of Globus.

Mr. Shailesh Haribhakti, Independent Director

Shri Shailesh Haribhakti, is a Chartered Accountant, Cost Accountant, and
aCertified Internal Auditor. He is the Deputy Managing Partner of
Haribhakti &Co., Chartered Accountants and past president of Indian
merchant Chambers.He is on the Board of several Public Limited
Companies, including Indian
Petrochemicals Corporation Ltd., Ambuja Cement Eastern Ltd. etc. He is
on theBoard of Company since June 1, 1999.

Mr. S Doreswamy, Independent Director

S. Doreswamy, is a former Chairman and Managing Director of Central
Bank ofIndia and serves on the board of DSP Merrill Lynch Trustee Co and
CeatLimited

Dr. D O Koshy, Independent Director

D. O. Koshy, holds a doctorate from IIT, Delhi and is the Director of
NationalInstitute of Design (NID), Ahmedabad. He has over 24 years of
rich experiencein the textiles and garment industry and was instrumental in
the setting up ofNIFT centres in Delhi, Chennai and Bangalore. He is a
renowned consultant
specializing in international marketing and apparel retail management.

Ms. Anju Poddar, Independent Director

Anju Poddar, holds a Bachelor of Engineering from University of
Oklahomaand is a Director, NIFT, Hyderabad chapter. She also serves on
the board ofMaharishi Commerce Ltd and Samay Books Ltd,

Ms. Bala Deshpande, Independent Director

Bala Deshpande, is Independent Director, Pantaloon Retail (India) Ltd. and
alsoserves on the boards of Deccan Aviation, Nagarjuna Construction,
WelspunIndia and Indus League Clothing Ltd,

Mr. Anil Harish, Independent Director

Anil Harish, is the partner of DM Harish & Co. Associates & Solicitors and
anLLM from University of Miami. He also serves on the board of
MahindraGesco, Unitech, IndusInd Bank and Hinduja TMT.

Major Milestones
 1987 Company incorporated as Manz Wear Private Limited. Launch
of Pantaloons trouser, India’s first formal trouser brand.
 1991 Launch of BARE, the Indian jeans brand.
 1992 Initial public offer (IPO) was made in the month of May.
 1994 The Pantaloon Shoppe – exclusive menswear store in
franchiseeformat launched across the nation. The company starts the
distribution ofbranded garments through multi-brand retail outlets
across the nation.
 1995 John Miller –Formal shirt brand launched.
 1997 Pantaloons – India’s family store launched in Kolkata.
 2001 Big Bazaar, ‘Is se sasta aur accha kahi nahin’ - India’s
firsthypermarket chain launched.
 2002 Food Bazaar, the supermarket chain is launched.
 2004 Central – ‘Shop, Eat, Celebrate in the Heart of Our City’ -
India’sfirst seamless mall is launched in Bangalore.
 2005 Fashion Station - the popular fashion chain is launched
 2006 Future Capital Holdings, the company’s financial arm launches
realestate funds Kshitij and Horizon and private equity fund In
division.Plans forays into insurance and consumer credit. Multiple
retail formatsincluding Collection i, Furniture Bazaar, Shoe Factory,
EZone, Depotand futurebazaar.com are launched across the nation.
Group enters intojoint venture agreements with ETAM Group and
Generali.
 ABOUT THE COMPANY
Pantaloon Retail (India) Limited, is India’s leading retailer that
operatesmultiple retail formats in both the value and lifestyle segment of
the Indianconsumer market. Headquartered in Mumbai (Bombay), the
company operatesover 10,000,000 square feet (930,000 m2) of retail space,
has over 1,000 stores
across 61 cities in India and employs over 30,000 people.
The company’s leading formats include Pantaloons, a chain of fashion
outlets,Big Bazaar, a uniquely Indian hypermarket chain, Food Bazaar, a
supermarketchain, blends the look, touch and feel of Indian bazaars with
aspects of modernretail like choice, convenience and quality and Central, a
chain of seamless
destination malls. Some of its other formats include, Depot, Shoe
Factory,Brand Factory, Blue Sky, aLL, Top 10 and Star and Sitara. The
company alsooperates an online portal, futurebazaar.com.

A subsdiary company, Home Solutions Retail (India) Limited, operates

HomeTown, a large-format home solutions store, Collection i, selling home
furnitureproducts and E-Zone focussed on caterng to the consumer
electronics segment.

Pantaloon Retail was recently awarded the International Retailer of the

Year2007 by the US-based National Retail Federation (NRF) and the
EmergingMarket Retailer of the Year 2007 at the World Retail Congress
held inBarcelona.

Pantaloon Retail is the flagship company of Future Group, a business

groupcatering to the entire Indian consumption space.

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 andlogistics. Future Group is present in 61 cities and 65 rural
locations. Thegroup’s flagship company, Pantaloon Retail (India) Limited
operates over
10,000,000 square feet (930,000 m2) of retail space, has over 1,000 stores
andemploys over 30,000 people. Some of its leading retail formats
includePantaloons, Big Bazaar, Central, Food Bazaar, Home Town, eZone,
Depot,Future Money and online retail format www.futurebazaar.com.

Future Group companies includes, Future Capital Holdings, Future

GeneraliIndia, Indus League Clothing and Galaxy Entertainment which
manages SportsBar, Brew Bar and Bowling Co. Future Capital Holdings,
the group’s financialarm, focuses on asset management and consumer
credit. It manages assets
worth over $1 billion that are being invested in developing retail real estate
andconsumer-related brands and hotels.

The group’s joint venture partners include Italian insurance major

Generali,French retailer ETAM group, US-based stationary products
retailer Staples Incand UK-based Lee Cooper and India-based Talwalkar’s,
Blue Foods andLiberty Shoes.

Future Group’s vision is to, “Deliver Everything, Everywhere, Everytime

toEvery Indian Consumer in the most profitable manner.” The group
considers‘Indian-ness’ as a core value and its corporate credo is - Rewrite
rules, Retainvalues.

Lines of Business
The company is present across several lines of business which have
variousformats (stores) operational under it. These include:
 Food - Food Bazaar, Chamosa, Spoon, Brew Bar, Sports Bar
&SportsBar Express, Cafe Bollywood,
 Fashion - Pantaloons, Central, aLL, Brand Factory, Blue Sky, Top
10,Fashion Station, Big Bazaar, Lee Cooper (JV),
 General Merchandise - Big Bazaar, Shoe Factory, Navras,
ElectronicsBazaar, Furniture Bazaar, KB'S FAIR PRICE
 Electronics - eZone,
 Home Improvement - Home Town
 Furniture - Collection i, Furniture Bazaar, Home Bazaar
 E-tailing (Online Shopping) - www.futurebazaar.com
 Books & Music - Depot
 Leisure & Entertainment - Bowling Co., F123
 Wellness - Star & Sitara, Tulsi
 Telecom & IT - Gen M, M Bazaar, M-Port, ConvergeM

Pantaloon Retail is the flagship company of Future Group.

The lines of business of Future Group are:
E-commerce
Pantaloon's website Futurebazaar.com has revolutionized the e-
commercebusiness in India. It offers a wide range of products at affordable
prices. It hasbeen named as Best Indian Website 2007 in the Shopping
category by PCWorld.
Food
In food business, the group offers a host of options. Food Bazaar - a chain
oflarge supermarkets; Brew Bar - a beer bar; café Bollywood - a national
chain ofeateries; Chamosa - a pan-Indian chain of snack counters, and
Sports Bar – abistro focused on the world of sports.

Fashion
The group offers a variety of options in fashion. Its brands include aLL,
BlueSky, Central, Etam, Fashion Station, Gini & Jony, Navaras,
Pantaloons, andTop 10.

Home & Electronics

Options include: Collection is - a lifestyle furniture store; Electronics
Bazaar -offers branded electronic goods and appliances; e-zone - trendiest
electronicsitems; Furniture Bazaar - entire range of Home Furniture; Home
Town – onestop destination for all the home needs.

Leisure & Entertainment

Options are: Bowling Co. - state-of-the-art premium family
entertainmentcentre, offering multiple, novel and unique leisure and
entertainment options; F123 - offers a wide range of gaming options
ranging from bowling and pool toredemption 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
bestallopathic, ayurvedic and homeopathic medicinal products; Turmeric –
offersbeauty products like color cosmetics, fragrances, herbal and specialty
skinitems, hair products and bath accessories.
Books & Music
Future Group's brand - "Depot" offers Books, CDs, and stationery items.

MAJOR INDIAN RETAILERS

The low-intensity entry of the diversified Mahindra Group into retail is
uniquebecause it plans to focus on lifestyle products. The Mahindra group
is the fourth large Indianbusiness group to enter the business of retail after
Reliance Industries Ltd, the Aditya Birla
Group, and Bharti Enterprises Ltd. The other three groups are focusing
either on perishablesand groceries, or a range of products, or both.

RPG Retail-Formats: Music World, Books & Beyond, Spencer’s Hyper,

Spencer’s Super, Daily & Fresh

Pantaloon Retail-Formats: Big Bazaar, Food Bazaar, Pantaloons, Central,

Fashion Station,Brand Factory, Depot, aLL, E-Zone etc.

The Tata Group-Formats: Westside, Star India Bazaar, Steel junction,

Landmark, and TitanIndustries with World of Titans showrooms, Tanishq
outlets, Chroma.

K Raheja Corp Group-Formats: Shoppers’ Stop, Crossword, Hyper City,

In orbitLifestyle International-Lifestyle, Home Centre, Max, Fun City and
International Franchisebrand stores.

Pyramid Retail-Formats: Pyramid Megastore, TruMart

Nilgiri’s-Formats: Nilgiri's’ supermarket chain

Subhiksha-Formats: Subhiksha supermarket pharmacy and telecom
discount chain.

Trinethra- Formats: Fabmall supermarket chain and Fabcity hypermarket

chain

Vishal Retail Group-Formats: Vishal Mega Mart

BPCL-Formats: In & Out

Reliance Retail-Formats: Reliance Fresh

Reliance ADAG Retail-Format: Reliance World

German Metro Cash & Carry

Shoprite Holdings-Formats: Shoprite Hyper

MARKET STRATEGY
Market strategy is defined as an action plan for influencing customer
choices and obtaining amarket share. Market strategy should entice
customers to buy the product or service. Market
strategy encompasses customer perception of the relationship between
price and quality. Isthe quality of the product or service worth the price? Is
the price too low for the quality the
customer desires? Is the price higher than the customer's perception of
quality? Marketresearch identifies the price and quality relationship
customers perceive to be important.
Remember, customer perception is the bottom line.
Market strategy also includes the distribution channels for the product,
pricing and terms ofsale, promotion and advertising plan, marketing
budgets, inventory selection andmanagement, visual merchandising,
customer relations and an evaluation of the marketingstrategy.

The marketing plan provides information on what the market will be (retail,
wholesale) andwhat specific customer groups will be targeted, what will be
sold, where it will be sold, andhow wide the area of distribution will be.
Ideally, market segments with a potential for high sales, profits, growth and
a minimum ofcompetition are the most attractive.

A marketing strategy is a process that can allow an organization to

concentrate its limitedresources on the greatest opportunities to increase
sales and achieve a sustainable competitiveadvantage. A marketing strategy
should be centre around the key concept that customer satisfaction is the
main goal.

Following strategies adopted by the organization.

1. A strong quality of the product and customer satisfaction:
Customers always believe in good quality product. In my survey I
found that in percentage term more people is quality conscious and
not price conscious. Customer satisfaction is very important part of
the organization that at any cost they have tofulfill.
2. A growing relationship with customer and customer retention:
Nowadays a good relation with customer is very important for
organization. Sale is totally depending on the relation with the
customers. Customer's retention is also a major aspect for growing
business. It means keep the old customer and try to makenew
customer.
3. Focus on competitor’s activity: Every organization should must be
careful about it's competitors step, because theycan disturb the
growing sales process of the organization.
4. A growing emphasis on global thinking and local marketing
planning: Companies are increasing by pursuing market beyond their
 borders. When they enter other countries they must follow the
tradition of that country and also they make plan for local market that
which type of product has more demand and how can it run inthe
market.
5. 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.
6. Growth through private labels: A striking characteristic of
Pantaloons has been the strength of its private label programme. In
Pantaloons 70% of apparel sales comefrom own labels. John Miller,
Ajile. Scottsville, Lombard, annabelle, Honey, Bare are some of the
successful brands created by the company.

MARKETING MIX STRATEGY

PRODUCT PRICE PROMOTION PLACE

Variety List price Advertising Channel
Quality Discount Public relation Coverage
Design Allowances Sales forces Location
Feature Payment Direct Assortment
period marketing
Brand name Credit term Inventory
Services Transport
Warranty
CHAPTER-4
THEORETICAL BACKGROUND

Unique Customer Perception (UCP)

Marketing is a domain which is dynamic i.e. involves change, an important
phenomenon notto be overlooked. We have come across a term “Unique
Selling Proposition”(USP) which
companies feel as a constant factor . Every organization is an open system
of managementwhich means change is inevitable and is associated with
environmental factors. Companies
need to focus not only on USP of their products but also on the “Unique
CustomerPerception” (UCP) of the final end users.

The prop of marketing is based on the need identification and the USP's are
prepared basedon the identified needs. If the needs are wrongly identified
then even the USP's which areunique to the product would not serve the
purpose. USP identifies a product/service from itscompetitors while UCP is
the perception or picture a customer develops from all types ofpromotional
inputs from the company about their product or service. It is often seen
thatsome brands do extremely well compared to other brands having the
same resources. Thereason for the brands not to do well is probably the
communications which does not reflect
the customer’s perception. So it is not the USP but UCP that plays an
important role .This haslead to the concept - “Customer Perception is the
Rule and not Customer Satisfaction”.

Remember that a customer always buys a product or service with a lot of

expectations whichhe has derived from the promotional inputs of the
company or other sources including word of-mouth. So a customer would
be satisfied when Performance is equal to
Expectation while would not be satisfied when Performance does not
match withExpectations. Now this expectation is what has been derived
from perception.
Perception is not good or bad, right or wrong, it is just the way someone
judges an experiencebased on their value system of what they believe
should happen. Since people are unique,
each of their perceptions are unique .On the other hand each situation is a
"point of contact"with an employee that will tell the customer a "truth"
about the company's idea of customer
service. Each situation will create expectations’ of what the next experience
will probably belike.
Companies spend considerable amount on advertisement and in this world
of competitiveadvantage advertisement has to be repetitive in nature. Brand
hammering results in brandrecall which is a costly affair. So companies
need to understand the Unique CustomerPerception to facilitate advertising
and Sales Promotional (ASP) efforts towards a betterbargain. The cost
incurred on advertisement is huge i.e. if we refer to the 5 M's of
advertising,Money is a budgetary constrain for an ideal advertising
campaign. Thus UCP has to berightly analyzed for better results by the
company to match performance and expectation.

CHAPTER-5

REVIEW OF LITERATURE
PJ GERMAIN
The customer's perception: Customer perception is an important
component of ourrelationship with our customers. Given that 90% plus of
our orders at some point involve the
phone, how we handle the telephone is essential to creating a perception for
our customer thataligns with the company mission of service. Smiling
stretches your vocal cords, and gives amore upbeat presentation to the
customer. Slowing down ensures that the customersperception is of an
organized systematic company that can handle their project. Getting itdone
right and on time consistently.Article source:
http://www.fibre2fashion.com

BY SOUMEN CHATTERJEE
Unique customer perception (UCP): According to soumen, Unique
Customer Perception iswhat is required by companies instead of Unique
Selling Proposition. It is ultimately that
customer look for satisfaction based on the picture of perception derived
from varioussources. If these perceptions of customer can be analyzed then
promotion would be easier forcustomer centric marketing. This has lead to
the concept - “Customer Perception is the Ruleand not Customer
Satisfaction”.
Article Source: http://EzineArticles.com/?expert=Soumen_Chatterjee

BY JEN B
Brand recognition will change customer perception: According to JenB,
for a biggerstronger business you have to get some serious brand
recognition happening. People need toknow your name before any thing
else. You want people to thing of you a certain way too.This is the ticket to
getting the image that you want. If you get a lot of blank looks frompeople
that are not current customers then you probably have no recognition at all.
Thatmeans it is time for an advertising switch. Even if people don’t buy the
product they willrecognized the name. Remembering a business is one step
closer to trusting a business. Brandrecognition is accomplished only by
people seeing your logo and business name over andover again. This will
create the repetition that your customers and future customers need topick
your product out of a crowd time and time again.
Article Source: http://www.a1articles.com/article_1035917_15.html

HUAWEI
Satisfy customers perception is the biggest challenge: In meeting
customers' requirementsand measuring customers' satisfaction indexes,
customer perception should be definitely a
key consideration. Qualified services in the operation execution layer,
technical managementlayer and business development layer are necessary.
It is more important to understandcustomer expectations and make efforts
to exceed their expectations. In customer satisfactionmanagement, the
biggest challenge is customer perception management, or
customerperception satisfaction. The major characteristics of service is
intangible, hence the corevalue of services is not like a physical product but
the spiritual experience and perception ofcustomers. The final aim and
ideal effect of service provisioning is to have customers
Perceive and enjoy the service. Such perception is both at psychological
and behavior levels,and it is the contents of high quality life in the modern
society. Customers are seeking for
Material deliverables as well as perceptive enjoyment when purchasing a
service product.Since perceptive enjoyment is a vital service objective, one
of the key service management
Objectives shall be meeting customers' perceptive enjoyment.
Article source: Huawei Technologies Co., Ltd

MORGAN STANLEY
Quick Comment – Impact on our views: We met Rakesh Biyani, Director
Future Group,who heads the retail business. Our investment thesis
regarding improving business outlookand availability of capital to fund
growth plans continues to hold good. Management hasconsciously shifted
focus to growth quality rather than just growth. We reiterate ourOverweight
rating and believe that any volatility in the stock price should be viewed as
an entry opportunity. Here are the key takeaways from the
meeting:Aggressive growth and margin targets: PRIL has set an aggressive
16-17% same store growth(SSG) target for F2010. This compares with
F2009 SSG of 7.0%. The company plans to
achieve this target by adopting active merchandise management. First, the
company islikely to ensure that its fastest-sellingproducts don’t go out of
stock. It has increased its orderper SKU range from 900-1,400 to 600-6,000
to ensure reduced stock outs for fast-sellingproducts. Second, it has put in
place a system to continuously monitor
underperformingcategories/segments/SKUs so that they can be
immediately replaced. Third, it has improved
product quality and pricing across its merchandise (particularly private
label) to ensuremarket share gains. Fourth, it has now set store-wise,
product-wise and SKU-wise,daily/weekly sales targets so that the
monitoring and feedback system improves significantly.

Focus on efficiency to improve margins:The management is

targeting 200-250 bpsimprovement in gross profit margin, a 30% reduction
in logistic costs, and a reduction in nonstoreinventory during F2010. Gross
margin improvement is likely to be driven byimprovement in sell-through
ratio (% of products sold through the primary store), from 79%in F2009 to
89% in F2010. The company achieved 79% in F2009, which was
animprovement from 64% in F2008. Significant improvement in private
label contribution,particularly in the apparel segment, may also help the
overall mix improvement.
TRENT LEYSHAN
Creating the right ‘Value Perception’ for your Customers: According
to Trent LeyshanValue Perception (VP) is the opinion your potential and
current customers have of yourproduct or service. This perception
determines the value it adds to them in line with theproblems it needs to
solve or aspirations they want it to fulfill. Irrespective of yourcustomer’s
opinion being right of wrong in your mind, their opinion matters none the
less, infact, critically so. Some may suggest; “But the customer my have it
wrong” In this instancewe respond: whose fault is that: the customer, sales
person, sales manager, marketing dept or
Company Directors? One this is for sure, it certainly isn’t the customers
fault. Value cascadesdown the value deliver system into the customer. A
breakdown on any level can bedetrimental to a company’s success. The
customer’s positive perception, along with aneffective sales process will
help the customer make the appropriate buying decision.
Article source: www.trentleyshan.com

CHAPTER-6

EMPIRICAL ANALYSIS
Pantaloon Retail is investing in new business lines, which would catalyze
consumptionwithin the company's retail stores. In line with this strategy,
the company has invested indifferent new businesses such as capital,
consumer finance, brands, andmedia, through jointventures with various
companies across the world.

Pantaloon is planning to strengthen its business in India through openings

new stores in allretail formats, technology up gradation to maintain a cost
effective inventory management
and better customer service.

Pantaloon operates in three segments of the retail value chain: wholesale

(procurement ofstocks), operations and distribution (warehousing and
transportation) and sales (physical storeoperations, online sales and other
channels). The company does not have a presence in twoother sections of
the retail value chain: raw materials and manufacturing.

Pantaloon has entered several joint ventures to add new and branded
products in its portfolio.The company offers office products through a joint
venture with Staples, and telecomequipments through an alliance with
Axiom Telecom. Such alliances would help it attaininternational appeal
and enhance the customer shopping experience.

The company is planning to launch more several brands across categories

in the near futureincluding kid's wear, innerwear, sportswear and possibly
home textiles. Pantaloon'sproduction facilities are concentrated on trousers,
shirts and jeans.

The company has stores in nearly 30 cities across the country, constituting
over 2.7 millionsquare feet of retail space. The company has also signed
close to 10 million sq. ft. of retailspace to be operational by end 2008,
which represents 20-30 % of all modern retail spacecoming up in the next
three years. Over 200 million footfalls are expected in our stores by2006-
07.
 1) The graph given below shows that the most of the people
like to buy their product at the beginning of the month
and they like to buy their products once in a month.
25

20

15

10

0
once a week once a month 0nce in a six months once in a year

2) From the survey I found that the more people like to buy
their product from pantaloon retail because they know the
brand very well.

5%

25%
Pantaloon
45% Reliance
Spencer's
Vishal mega mart
More
5%

20%
3) In the present scenario the customers likes to spend
money because it shows the living status in the society.

7%
18%

20%
Less then 500
Between 500-1000
Between 1000-2000
20% Between 2000-5000
More then 5000

35%

4) From the graph given below it shows that the 62% of the
people think that the location of the store is perfect
because it’s in the main market area and any one can
come easily.

38%

Yes
No

62%
5) Assortment of the product is very important so that
customer can get their product easily.
YES NO
30 10

25%

Yes
No

75%

6) People think that the quality of the product is good.

Price Quality Service After sale service
30% 35% 22.5% 12.5%
14
14
12
12

9
10

5
6

0
Price Quality Service After sale service
7) This is one of the best strategy adopted by the pantaloon
that they provide free home delivery if a customer
purchase over Rs 500.
YES NO
30 10
25%

Yes
No

75%

8) CUSTOMERS SATISFACTION TABLE

No of Very Satisfied Very Dissatisfied
customer satisfied Dissatisfied
40 10 25 0 5

13% 25%

very satisfied
Satisfied
Very dissatisfied
Dissatisfied

63%
 9) In customer perception Pantaloon Company used by the
marketing strategy is Good for the customers or Not
No of customer Yes No
40 34 6
Analysis:-During the period of research I analyze the
maximum customers are think Pantaloon Company used by
the marketing strategy is good for the customers and very less
customers are think it is not good.

15%

Yes
No

85%
10)Promotional strategy used by the pantaloon this is also a
strategyused by the company to make a brand they use all the
tools ofadvertising like news papers, radio, internet, television
and banners.That’s why people know them very well and they
have a positive
perception about the pantaloon retail India limited.

News paper Television Others

30% 50% 20%

20
20
18
16
14 12
12
10
8 8
6
4
2
0
News paper
Television
Others
CHAPTER-7

FINDINGS
I am find out the which strategies used by the company. As well as
customersatisfaction level. I was met forty customers of Pantaloon
Company. And ask thesome questions and find out the customer perception
as well as satisfactionlevel.
In my serve I am find out the more than 50% customers satisfied to
thepantaloon services. In customers perception companies marketing
strategy isvery good and helpful to the company and the customers.
The company’s goods & services, quality product, price, after sale
services,assortment of the product, etc. all part is suitable for the customers
that’s whycustomers are buying the goods.
Location of the store is convenient of the customers. They are thinking for
thecustomers it means what are the needs of the customers, what they want,
etc. Asper customers wants they are providing goods and services to the
customers.

CHAPTER-8
 CONCLUSION

I conclude that the Pantaloon Company is the big company. And its
marketingstrategy is very effective. They know very well how to attract the
customers. Asper they are using the strategy many customers give
preference to the PantaloonCompany. And they also have a good brand
name their promotion strategy isgood they know how to retain a customer
and how to make a loyal customer
and they believe to make a loyal customer because they know one
loyalcustomer can make many customer.
They also maintain a clean floors and nice staff who always ready to help
youbecause a good behavior is also a reason for increase in sales. If they
not behaveproperly with the customer so that can be a big loss for the
company.
They also maintain a good relationship with their customer they don’t want
todisappoint any customer that is why they provide a good service to
customer.
The Pantaloon Company is providing to the good services, after sales
service,quality product, reasonable price, etc. that’s why pantaloon
customers satisfiedlevel is high.

CHAPTER-9
APPENDICES
QUESTIONNAIRS
1. How often do you buy your product?
a) Once a week
b) Once a month
c) Once in a three month
d) Once in a six month
e) Once in a year
2. From where do you buy your product?
a) Pantaloon
b) Vishal mega mart
c) Reliance
d) Spencer’s
e) More
3. How much do you normally spent in a single shopping?
a. Less than 500
b. Between 500 to 1000
c. Between 1000 to 2000
d. Between 2000 to 5000
e. More than 5000
4. What do you think this is the perfect location of the store?
a) Yes
b) No
5. Assortment of the product in store is suitable for you?
a) Yes
b) No
6. On which basis you have purchase the goods?
a) Price
b) Quality
c) Services
d) After sales services
7. According to you free home delivery providing to the shop is
oneof the reason of increase the sales?

a) Yes
b) No
8. Are you satisfied with the services of the store?
a) Very satisfied
b) Satisfied
c) Very dissatisfied
d) Dissatisfied
9. What do you feel he marketing strategy adopted by the company
isgood for customer or bad?
a) Yes good
b) No bad
10. How do you come to know about this location of store?
a) News paper
b) Television
c) Others

NAME OF THE PANTALOON

CUSTOMERS

1 Dr. Tarun ghosh

2 Ratan Roy
3 Kailash Mondal
4 Prabhat mondal
5 Guptodhon chatterjee
6 Rajendra Prasad gupta
7 Sanjay jha
8 Anik halder
9 Suresh Sing
10 Ashok Jha
11 Rasik Lal Patel
12 A.R. Khan
13 B.n. Prasad
14 Umesh Sharma
15 Md. Faiz
16 Mohan Singh
17 Jelly gupta
18 Dwarika Shaw
19 Kalian Bose
20 Monaj Pandey
21 Sk. Samsuddin
22 Dr. Soumya Das
23 Dr. Manoj Mukherjee
24 Sikha garai
25 Pradip Goswami
26 Avijit Dutta
27 Karun ghosh
28 Shushil Mondal
29 Samal Khanna
30 Gouri Saha
31 Dr. Mrinal Kanti Dey
32 Sk. Mohammed Ramoj
33 Harpreet Kaur Saluja
34 Ajay Kumar Banarjee
35 Bapi Bose
36 Shipra Ghosh
37 Avijit Dutta
38 Kawanaljit kaur
39 Papu Mondal
40 P.K. Ghosh
CHAPTER-10

BIBLIOGRAPHY
Www.pantaloon.com
www.datamonitar.com
www.fibre2fashion.com
www.rediff.com
www.scribd.com
www.corporateinformation.com