Pantaloon Retail Limited, Marketing Analysis

Pantaloon Retail Limited, market Analysis future tense Group focuses most in the retail segment and most of its businesses atomic number 18 built around the same. future Groups retail ne 2rk operates 1,000 depots for more than 200 million Indians in 73 ci hold fasts and 65 rural locations across the country in 16 million squ be feet of retail space.Some of the most popular retail meanderstrings of India like Pantaloons (chain of fashion destinations), queen-size funfair (hyper marketplace chain), Food bazaar (supermarket chain) and Central (chain of seamless destination malls) Brand Factory, Planet Sports, ALL, Top 10 and Star and Sitara atomic number 18 managed by upcoming group. Indias most popular online shopping hepatic portal vein www.futurebazaar.com is in addition owned by the Future Group. kinsfolk building and shoes improvement products and services are also led through with(predicate) the groups formats, like the sign Town (large-format home solutions store ), array i (formats specialized for home furniture and home furnishing) and Furniture Bazaar and consumer electronics through eZ bingle and Electronics Bazaar. Aadhaar, Indias leading rural retailing chain has a presence in more than 65 rural locations. It acts as a complete solution provider for the Indian farmer.Pantaloon Retail (India) Limited is 1 of the leading retailers in India. Mr. Kishore Biyani, is the founder and is famously cognize as Indias King of Retail. Pantaloon has revolutionized the retail fraternity. With its headquarter in Mumbai, Pantaloons operates multiple retail formats in value and lifestyle segment. Pantaloons plans to plus its retail space to 30 million sq. ft. by 2011. PRIL is sub-divided intoPantaloonsBig bazaarFood Bazaar vogue StationAllBlue skyE-zoneCollection 1Home townCentral Mall2001 Indias first hypermarket chain Big bazaar is launched2002 Food bazaar, a supermarket chain is launched2006 Future groups financial arm, Future capital holding s launches two real estate fundsPantaloonsHigh fashion family department, geared toward Indian middle and upper classes. In 2005, pantaloons rolled kayoed a cutting merchandise and brand communication campaign to position itself as fashion trendsetter appeal to Indias youth.Central MallIt is positioned as a place for shopping, eject and enjoying.Big BazaarBig Bazaar hypermarket concept was started in 2007 by PRIL. It was designed to integrate elements of an Indian bazaar with recent retailing features like put of vehicles, AC shopping milieu and privilege of replacing merchandise.Food BazaarThe first outlet of Food Bazaar opened in June 2002, within a Big Bazaar store, six month later the chain had grown to 42 outlets 18 stand alone.Future Groups main businesses are E-commerceFuturebazaar.com, Pantaloons website has changed the e-commerce business in India. A wide range of products are made available at affordable prices. PC World has named the website as the Best Indian Websit e for 2007 in the shop category.Food In the food section, a lot of options are available like Food Bazaar Chain of large super marketsBrew prohibition Its a beer barCaf Bollywood -Its a eateries chain which is PAN IndiaChamosa Snack counterSports Bar A Bistro which is dedicated to the sports worldFashion Varieties of options are available in this section like Top 10, Central, Blue Sky, Etam, Fashion Station, Gini, Jony, Navaras and ALL.Home Electronics Furniture store called Collection iElectronic goods and appliances store called Electronics BazaarElectronics Items store called e-zoneHome furniture store called Furniture BazaarOne destination for all home needs called Home TownLeisure EntertainmentA family frolic center called Bowling Co.A store pop the questioning gaming options from bowling, pool, video games to bumper cars called F 123Wellness BeautyHealth Village Its a yoga center as well a spaStar Sitara A beauty salon for men and womenTulsi Allopathic, homeopathi c and ayurvedic medicinal products are providedTurmeric Beauty products like color cosmetics, fragrances, herbal and specialty skin items, hair products and bath accessories are offered.Books MusicDepot It offers stationary, CDs and books Major Achievements of Pantaloon Retail2007 International Retailer of the Year2007 Emerging market Retailer of the Year2007 According to Hewitt Best Employers Survey Best Employers in India (Rank 14th)2006 Best Managed Company in India (Mid-cap) for the year2006 Image Retail Awards for Best apprize Retail Store, Best Retail Destination, and Best Food Grocery Store.Retail Black Hole ModelThe Black hole model is also known as The Retail EST Model. It was developed by J.C Williams Group. According to this model a retailer can win if he is the silk hat in one of the several(prenominal) retail offerings i.e to say that the company is clearly positioned in one or more favored locations to win and hence they are the strategic differentiators. The losers gravitate to central position, are not stovepipe at anything and are sucked into the black hole of retailingWe devour a store opening virtually any fortnight I have lost count now of how many I have openedKishore BiyaniBig Bazaar A paradigm shift to the ultramodern RetailBig Bazaar is a unit of Pantaloon Retail (India) Ltd and caters to the Great Indian Middle Class. It is like an Indian bazaar or mandi or mela, the environment created by traders to give shoppers a sense of moment. The personality of big bazaar is one of an entity being authentically no-frills. The personality of the brand is self expressed by its tagline Is se sasta aur accha kahin nahiIt sells a variety of merchandise at affordable rates, the prices of which it claims are lowest in the city. Usually the items are clubbed together for offers as on the lines of Wal-Mart and Carrefour, offer weekend discounts and works on the same economy model as Wal-Mart and has considerable success in many Indian cities and small towns.Food Bazaar format was added as Shop-In-Shop within Big Bazaar in the year 2002. Big Bazaar and Food Bazaar blend the look, feel and touch of Indian Bazaar with modern retail concepts of pickaxeax, convenience and quality.PRODUCT MIXELECTRONICS BAZAARTelevision setsWashing MachinesRefrigeratorPersonal CaremBazaarMicrowavesSmall AppliancesLaptopsComputer AccessoriesKitchen Appliances spirt JEWELLERYFootwear BazaarBeauty CareNavaraStar ParivarMeena BindreFURNITURE BAZAARLiving RoomBed RoomKitchen blaringning RoomsKids RoomBeen BagsPaintings decorative ItemsCHILD CARE TOYSKids WearToy BazaarStationaryChild CareOTHER SERVICESMr. rightBakeryLoot MartTulsiFuture MoneyFuture GenerallyTARGET AUDIENCEHigher and upper middle class customers are the target segment of Big bazaar.Another preferred customer segment is the young and growing population of the country.Big bazaar primarily targets the women folk and home makers who they feel are the primary decision makers . core out COMPETENCIES ingathering range consisting of more than 20,000 products.Has a strong add on chain spanning one thousand five hundred cities and towns in India.Big bazaar has tie ups with world leaders in logistical services.Big bazaar has created a helpline for solving the queries of customers.Offers manufacturers guarantee as opposed to sellers guarantee.Good quality at bonnie cost.STRATEGIESMinimize retailing cost.Minimize operating expenses by employing fewer floor faculty -single person for e genuinely 500 sq ft.Keep furniture cost to minimum. shrink down expenses related to sourcing by almost 25-30%.Increasing the all overall efficiency of logistics by creating mother-hubs all across India for the purpose of sourcing products from regional/local vendors.Slashing manoeuvre cost by up to 25%.Economizing Shelf SpaceDealing with unsell stock in an effective manner.Ensuring enough pull to snatch international customers from the neighbourhood.Introducing the concept o f to twenty-four hourss price wherein a products is chosen on a daily basis and sold at lower than usual price.Big Bazaars New marketing Strategy A new marketing strategy, based on guerrilla marketing has been launched by big bazaar. The guerrilla force is divided into small groups to selectively attack the target at its weak take downs. As a part of this strategy Future group has come up with three catchy and self-assertive advertisement campaigns.Keep West-a-Side. Make a smart choiceShoppers Stop. Make a smart choiceChange Your Lifestyle. Make a smart choiceuntitleduntitledSTRATEGIC ANALYSISSWOT analysis of Big BazaarSWOT-BBPEST ANALYSISPolitical and Legal FactorsA stable government at the oculus creates an encouraging investment climateProblems of getting subsidy from Octrai and on different taxes like land, water taxesA less complicated taxation structure(GST) on the horizon.Problems regarding victorious over properties and real estate.Easing restrictions on FDI by the gove rnment leading to easier import of foreign consumer goods, thereby bringing variety to the Indian market place. frugalIndia is one of the fastest growing economies, next only to China (7-7.5% GDP growth rate).Retail Industry to grow leaps and bounds by 2015 due to the pulmonary tuberculosis driven economy of the country.Increase in the percentage contribution of the service sector to GDP.Increased emphasis on infrastructural growth in the current 5 year plan will help reduce some of the bottlenecks in the retail segment.Socio-Cultural FactorsIncrease in Nuclear familiesIncrease in working womens proposeLife style changesShift in Product and service preferencesIncrease in Young population big the country a demographic payoffTechnologicalTechnological development for fast billing and the serviceBetter applications of information technology in the modern retail industry, like in supply chain management, store management, point of sale and customer relationship managementPorters Fiv e Forces ModelPor7 P Analysis of Big BazaarProductThere is a wide range of products on offer at Big-bazaar, ranging from apparels, food, farm products, furniture, child care, toys, etc. Products of all the major brands are available at Big Bazaar. A lot of in house brands (private labels) are also promoted by Big Bazaar.PriceThe tag-line of Big Bazaar is Is se sasta aur accha aur kahin nahi. The model on which Big bazaar works is one of economies of scale. Maximum Market Share (market penetration pricing) is the major objective of pricing at Big bazaar.PlaceBig-bazaar has a pan India presence with more than s casefuly-five outlets spread across fifty cities. Big Bazaar has presence in almost all the major Indian cities. Kishore Biyani is very aggressive when it comes to expansion plans of Big bazaar. As per Biyani, the cost of real estate should preferably be less than 5% of total sales of store if one wants to provide maximum benefit to customers. Securing spaces before other retai lers join in has been a strategic decision of Big bazaar which has resulted in cost-saving. promotional materialMany novel cross sell and upsell strategies have been developed by Big bazaar in Indian retail market. Big Bazaar uses sundry(a) promotional techniques such as saal ke sabse saste teen din, Future menu, Shakti broadside, using M.S.Dhoni as brand ambassador, Exchange offers such as junk swap offer, POP promotions. bring out media, TV, Radio (FM) and road-side bill-boards are some of the many basals used by Big bazaar for advertizing and effective communication.PeoplePeople are considered to be one of the key assets in any organization and their importance is even more profound in the service sector. Big bazaars staff possesses some great features such as The staff is well trained for modern retail.Innovative thinking among the employees is encouraged at Big bazaar.Multiple payment counters, availability of stores staff for keeping baggage and presence of security guard at every gate.ProcessSome of the salient features of dispatch and purchasing area of goods include Trolleys are available for carrying purchased items sufficient nos of counters for easy check-out are present.Information hoardings/banners for efficient identification of items at storePhysical EvidenceIt deals with the final deliverable or the showing of written facts.The staff has standardized dress code to improve the overall appearance of the store (atmospherics).FINANCIAL ANALYSIS of PRIL PRIL Profit and Loss Statement adaptation Total revenues have constantly been on the rise. This is partly due to the increasing sales resulting from aggressive expansion plans (opening up of outlets) of PRIL.PAT has also been on energize rise though it has flattened a bit in recent years probably due to higher operating costs, inability to transfer the change magnitude cost to the customer etc.EPS has also been on a steady rise apart from a single occasion in 2007 when it went down. The rea son could be a rights issue or other similar action leading to fair-mindedness dilution.The return on capital employed has been decreasing YoY. This could because of concern for the company.The debt equity ratio has not been too volatile and has unceasingly been below 2 which is an indication of sound financial status of the company.Aggressive Marketing Promotions02The promotional action of the company, which says Nobody Sells Cheaper and Better has separate Big-Bazaar (as a brand) in the minds of the customer. The punch-line has made its place in minds of customer. As the competition is becoming stiff in the market the activities conducted by the company are unique, that have brought fruitful result to the company. Among them sales Promotions is one of the leading activity or unique among all other activities has high settle on the customer walk-in.As sales promotions is the major force for Big-Bazaar, Big Bazaar take it very seriously especially during festivals special oc casion by focussing aggressively on psychological emotional promotion strategies as per the demographic profile of the various consumers.About 60-70% of shopping for apparel, consumer durables, and home furnishing, among other things, go through during festivals. At least 40-50% takes place during the peak festival season, between September and November.According to Ashni Biyani, 23, a team is set up six months ago comprising experts on Indian mythology and religion, retail and even an expert on days, seriously targeted one-third of the 150 auspicious days in the Hindu calendar.They map all the communities in India on how they shop and how these calendars work. They focus to understand intuitively, their customs, their rituals, adding that this is the part of a larger strategy to engage customers and to attract that India which lives in the deep-rooted communities.Sabse Saste 3 DinThe best watershed for brand Big Bazaar was the introduction of the Sabse Sasta Din in January 2005, when the Indian Republic Day holiday was utilized to make sure that hordes of consumers descended on all Big Bazaars across the country to buy all kinds of household items cheap. There were scenes of customers actually vigorously fighting over items in-store long queues were seen in the store.Big Bazaar like previous years, attracted large crowds during its three day sales event called Sabse Saste 3 Din organised to celebrate the Republic Day. Depending on the results, the event is sometimes extended to 5-6 days as it happened in 2008.The promotional event being organised by Big Bazaar every year has assume great significance over the years. A large number of customers look forward to this event as hefty discounts on a range of products are offered to the customers in partnership with the retail chains vendors on this occasion.This is, perhaps, the biggest sales event being organised by any retailer in the country. Big Bazaar, which sold merchandise worth Rs 140 crores in 2007, garnered revenues of over Rs. 280 crores during the year 2008 the growth still continues unexpectedly.As mentioned by Kishore Biyani, the whole focus is low margins pushing volumes aggressively during these times which make the Big-Bazaar stick to its core Brand-Personality.Wednesday and Weekend BazaarOne of the most popular events Wednesday Bazaar presents terrific offers and irresistible discounts on majority of the products.The creation was to aim at giving the homemakers the power to save the most on this day of the week.Even on weekends when the footfall is the highest, eye-catching offers and discounts are promoted. The weekend promotions split upd from the Wednesday bazaar in terms of the offers cross-selling and not on reducing the price of a particular product.This way they were able to differentiate both the concepts focus on avoiding confusion while promoting it to the consumers and also attract different type of consumers during these durations.Special event promot ionsMaha Bachat Sale Big Bazaars incorporates such as on Independence day by having Maha Bachat Sale which did a business of 1.5 crores in its Bangalore store alone. Maha Bachat focuses on further reducing the price as compared to the Wednesday Bazaar.Also on auspicious occasions such as Akshaya Tritiya which again did a business of 150Cr on a single day in Mumbai Ahmedabad last year.An event offering discounts, benefits and privileges to senior citizens were created and promoted on the Senior Citizens Day.Monthly Bachat Bazaar Big Bazaar understands clearly the habits of Indian consumers. In Monthly Bachat Bazaar the prices are reduced at the start of every month in order to target those consumers who bulk purchase the products and especially the commodities every month.Price Challenge CampaignReinforcing Big Bazaars USP of value proposition, Is se sasta aur accha kahin nahi lineation was launched. The challenges promise to offer twice the price difference, if the cost of any of the item found in the store is found to be higher than the market price.This doesnt mean that the consumer actually go to other shops in order to compare the prices, but due to this challenge of Big-Bazaar, the consumers had more faith trust on the Big-Bazaar and hence were convinced(p) seeing the confidence level of Big-Bazaar which again built a strong brand differentiation of Big-Bazaar for low pricing.Exchange OffersThis promotion primarily focused on letting people disposing off their junk and to gain something out of it in return i.e. Bring anything old take anything new. They could exchange their products and shop from a grand spectrum of discounted products.This gave the motivation factor to consumers to give their old belongings for something worth hence their old is not getting waste or is unvalued. Since the Indian consumers are very much value conscious, this strategy worked out very well. Big-Bazaar also made it sure that the campaign is actually not fooling the co nsumers around and is actually giving the desired value focusing on the fact that faith thrashed is never recovered in India.In- Store CommunicationsTo ensure that no one misses out on an opportunity to gain from special offers, service boys ferry around a trolley with the product inside, announcing the scheme. Not only is this entertaining it also helps customers pick up the product from the trolley instead of walking up to the rack where it is on display.Language CustomizationTo make sure that non-English speaking customers dont feel alienated, the communication is also conducted in the local language. The communication is always unambiguous and direct.The Power of One CampaignThis initiative encourages customers to add One Rupee to their bill towards donation to a social cause. Big Bazaar makes an equal contribution and donates the entire proceeds to an NGO called Save the Children India. This is a selfless body which has been working for the welfare of children from marginalized sections of society. somatic campaignBig Bazaar has recently launched a corporate campaign which revolves around a family having a great time together. The brand anthem Khushiyon se Bhari Jholi connects with the customers at an emotional level positioning Big Bazaar as part of the happy moments.Future CardsSpecifically for Big Bazaar outlets these credit-cum-loyalty card which offer customers a slew of discounts and benefits across Future Group stores are co-branded with ICICI Bank. Customers receive four loyalty points for every Rs 100 spent at Future groups retail stores and one loyalty point for every Rs 200 spent outside the groups retail stores. This creates a vicious cycle for the customers to repeat their purchases and is especially through by the consumers during special occasions.School Jao Khushi KhushiProviding Discounts School related requirements accessories like school bags, water bottles, lunchboxes, shoes etc.Promotions includePencil Case for purchase of supra Rs 5 00. Free shopping trip worth Rs 1000/- for Sending ones experience of the Best day that you had in school the most humorous the best one is selected as a winner and to avail the offer. Lucky draw for the well-situated kids shop for Rs 1,000 higher up, drop in your kids name into the drop box 10 lucky kids were provided with the offer 30% off on an NIIT course Motivational offer for Kids Shop for Rs 500 or above, Parents are told to drop in the kids moving picture, the best painting is sponsored for an art course.Doston ke saath khushiyon manaoIndividual are invited with friends more the merrier shopping with 1 friend entitles the individual with 10% discount, coming with two friends get 20% discount etc on the total bill.Friendship band to every walk-inA friend indeed -people were told to drop their best friends name in the drop-box and in lucky draw the winner could win the major prize A CarSpecial treatment emotional connect for the individual his/her friend -free ma ssage, tattoos, horoscope etc were provided for purchases above Rs 500/- above during the friendship day.Diwali DhamakaThis campaign especially remains open for longer durationHuge discounts are seen over the boardIf purchase is above Rs 300/- two pairs of diya were provided to the customersTie up with known mithaiwala if one purchases above 1000/- people can avail discounts of 45% or above on the mithai purchased from that mithaiwala.Motivating the home made mithai recepies Purchasing goods worth Rs 500 above, females were pulled to send the recipe of their secret mithai the best judged recipe gets a complete set of Sanjeev Kapoors cook-booksDiwali Manao Abroad winning through lucky draw on purchases worth Rs 1,000 or above.Christmas JoyAcross the board discounts.Big Bazaars special surprise Christmas generate on purchase of over Rs 1000/- or above.Christmas-Card Design Contest Design next years Christmas card for children and a gift voucher worth Rs. 500 were given to the bes t card winner.Big Bazaar Christmas party focussing on points vouchers through festival focussed games.Happy-HoursAll the discounts/offers were hiked up in a fixed hr of a day eg Buy X and get Rs 10 off on that day will become Rs 15 off.Mystery-ShopperEveryday, one person is tagged as the mystery shopper i.e. a) 100th person walking through the threshold wearing all red b) 1st person walking through the door wearing all red These person gets the discount of 50% on the total bill.Apke kismat mein hai khushi Lucky is happyBased on scratch cardGet all that you pick in 60 seconds till reaching the billing counterAssured gift for the bulk takersChoose a gift from the listed items if the bill is above 1000/-This is used especially to push the non-moving goods which is usually put in the listed free gift items.Banto khushiyan har ek ke sang Social causesKhilone se khushi bateToy drop box was set in the big-bazaar store and the concept was promoted to ask for the toys from the families then the toys were sent to the social organisations working for underprivileged childrens.This has helped the underprivileged, generate goodwill, and have also attracted the floor traffic to store at the large scale.Supporting a charitySupport through charity Donation to the charity on the individuals name for purchasing above a specified amount.Customers were given an ornament with his or her name on it to hang signifying the donation by the individual.AdvertisementsAdvertising for Big-Bazaar is an demand component of brand building.The advertisement focusing on brand building of Big-Bazaar is do through various ways, Some of the techniques applied are Tag eminence One of the key components of Big Bazaar is its Tag Lines.Designed according to the demographic profile of customers in order to get connected easily with frank one-liners. The catch liners includes Chane ke bhaw kaaju, Stall ke bhaw balcony etc.0306Holistic Advertisement Promotes the brand and creates awareness among people. It is not targeted at promoting each store but only creates an image of Big-Bazaar as low-cost shopping option. The store has advertised through TV, road-shows and also started reality show typed promotional campaign The Big Bazaar Challenge Promotions like Sabse Sasta Din is very successful strategy to get footfall.Print-Ads Just before the launch of any new schemes Big-Bazaar spends heavily on advertisements in print media especially newspapers.This is done in order to create a buzz about the big-bazaar brand its upcoming schemes.TV-Ads various transmit are utilized properly, also as per the demographics cultural channels the schemes, promotions especially the common brand tag-line is aired in order to create top of the mind awarenessRoad side Advertisements As a brand building exercise, big-bazaar displays bill-boards in prime locations as per the target people. Focus is more on the phrases which is targeted to the needs of the customers as per the market conditio ns at that particular point of time.Radio-Ads The major focus through radio ads is in Tier-12 cities. And the prime emphasis is given on radio ads for promotions in order to inform customers for all the new happenings schemes at Big-Bazaar.Fashion-Shows The latest innovation of the Indian iconic brand is FASHION BIG BAZAAR Desh Badla, Bhesh Badlo. In order to make an effort to take the Fashion to the masses, a three-day fashion show was organized by Big-Bazaar on the streets of Bandra, Mumbai.1413Brand Endorsement by CelebrityFor marketing and advertising its brand name, value secondment co-branding is used by Big Bazaar. Earlier Himesh Reshammiya Sanath Jaisuriya was associated with Big-Bazaar.Also, recently the current campaigns are being associated promoted with the Indian cricket ODI captain Mahendra Singh Dhoni.Communication through MediaHeavy expenditure is carried out for proper position of Big Bazaar through the different mediums. Paper advertisements are released jus t before the launch of any new scheme, billboards are displayed on prime locations, frequent TVCs are aired in prime time in various Indian channels for the mass, advertisements on FM channels about the current happenings are aired etc.Below the Line PromotionCoupon, discount, more of the product at normal price, gift with purchase, competition, and prizes, money cover version offer, exchange offer, special occasion.Big Bazaar, in association with Star India Pvt Ltd, has launched a collection of designer ethnic wear under the brand Star Parivaar. preceding(prenominal) the Line PromotionAdvertisements in Newspaper, TV, Internet (own website which give online shopping service),Partnership with Bigfilx, Big FM 92.7.Aggressive Pricing StrategyThe tag-line is Is se Sasta aur accha aur kahin nahi make Big-Bazaar to differentiate itself from competitors in terms of only pricing the value at that price. Hence it makes it very important for the Big-Bazaar to always focus on the its pricing strategies to keep the prices always low compared to the competitors whatever the market, economy or the external conditions is.They work on the model of economics of scale. There pricing objective is to get Maximum Market Share.The various pricing techniques used at Big Bazaar are EDLP Every Day Low PricingBig-Bazaar as a brand is severalise through low pricing strategies. Hence it promises delivers the lowest available price without stressing on coupon clipping, discount promotions waiting time, or comparison shopping.Promotional-PricingLow engross rate financing is being offered by Big-Bazaar. Psychological discounting (Rs. 99, Rs. 49, etc.) strategy is used as a promotional tool. Special Event pricing (Close to Diwali, Gudi Padva, and