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Kishore Biyani founded Pantaloon in 1993 as a single store format and by 2004 had grown it into India's largest multi-format retailer comprising stores like Pantaloons, Big Bazaar, Food Bazaar, and Central malls. Pantaloon revolutionized Indian retailing by adopting a pan-Indian model, focusing on affordable prices, private labels, and capturing 70% of customers' shopping needs across 1000+ stores. It continued expanding its retail formats and geographic reach to become a leader in the discount retailing industry in India.

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104 views30 pages

New Microsoft Office Power Point Presentation

Kishore Biyani founded Pantaloon in 1993 as a single store format and by 2004 had grown it into India's largest multi-format retailer comprising stores like Pantaloons, Big Bazaar, Food Bazaar, and Central malls. Pantaloon revolutionized Indian retailing by adopting a pan-Indian model, focusing on affordable prices, private labels, and capturing 70% of customers' shopping needs across 1000+ stores. It continued expanding its retail formats and geographic reach to become a leader in the discount retailing industry in India.

Uploaded by

Farah Haider Zaidi
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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Pantaloon: Revolutionizing the

Indian Retailing Industry


Introduction

1993:Pantaloon ,a small ,single format store.


2004:Pantaloon Retail India limited(Pantaloon)
had grown to become the largest multi
format retail store.
Comprising Pantaloons (departmental store),Big
Bazaar (hypermarket),food Bazaar(grocery stores),
Gold bazaar(gold retail stores) and Central(malls).
Continued…..
It was one of the largest players in discount
retailing.
Its expansion into various types of retail formats
had enabled the company in capturing 70% of the
consumers’ shopping basket.
It operates more than 1000 stores in 73 cities
(metros and non metros), in India.
It have more than 30,000 employees.
The Evolution of Kishore Biyani
The Evolution of Kishore Biyani
The “Pantaloon” Model

Pantaloon adaopted a pan-indian model that


captured the value chain and allow it to ivolve with
customer preferences
Biyani believed that growth by in “setting up new
stores,getting new customers,by introducing new
retail formats,by introducing new products and by
making no mistakes”.
Biyani was highly sensitized to consumers’
requirements and business environment.
Continued…..
Biyani repositioned Pantaloons from a family to
lifestyle store as the market evolved, he targeted it
stores at particular customer segments.
He emphasized on cheaper sourcing, efficient
supply chain, affordable prices, private labels,
location and floor place of the stores.
The corporate theme of Pantaloon
was“Rewrite rules, retain values.”
The first company-owned and managed store,was
setup in Kolkata in August 1997.In 2004,there
were 18 stores across the country generating
revenues worth INR 250 crore.
Product

Pantaloon sold apparels and accessories categorized


under:-
Men’s formal
Men’s casual
Ladies ethnic
Ladies western
Children’s wear

Pantaloon develops three types of merchandise:-


Classic type
Fashion type
Collection type
Continued….

In 2000 pantaloon launched a new brand of casual


sports wear.

In 2003 pantaloon decided to launch designer labels,like


Spring Board for women.

In same year it launched a new apparel line called


Passion Wear.The merchandize focus on World Cup.

He also acquried the licensing right for Popeye and


Disney characters, which he used for kids wear.
Continued….

In late 2003 Pantaloons tied up with the Italian


apparel company Moda & Musica for the latter’s
UMM brand.

It also launched a youth brand Rig.

In 2001,Pantaloon tied up with Andhra Pradesh


handloom weaver’s cooperative society and NIFT to
launch a womens’s ethnic wear made from
handloom.
Brands
Pantaloons focuses on company owned private
labels and some other brands also.

Men’s wear:
John Miller,Rig,Ajile,Bare denim
Ladies wear
Ajile,Rig
Children’s wear
Rig,Bare
CHANNEL OF DISTRIBUTION

 Manufactu
pantaloon
rer Retailer

Final
Consumer
POSITIONING
 With a tag line “0-80”(age group),first pantaloon was positioned as a
family store targeting the middle and upper class customers.

 In 2003 they focused more on youth segment and try to establish itself
high on style graph.

 The company had partnered with Gibam, an Italian firm known for its
stylish stores, to create a unique image for its stores.

 Garments was displaced on hangers, rather than stacked in shelves.

 In april 2004 pantaloons in partnership with Mattel india ltd. Opened a


‘Barbie Concept Store’ named as a Magical world of Barbie which
targeted at young girls,in age group of 3-10.
PROMOTION

 To gain customer loyalty pantaloons launched following loyalty


programmes
*Green cards
*Kids bank
*Gift vouchers
* Weekend adventure programmes

 Hoardings:-Pantaloon puts its hoarding at prime locations,


featuring the upcoming Fashion events or its brand ambassadors
who are generally eminent celebrity.
PRICING
 Pantaloons sold branded garments at affordable prices.

 More than 70% of apparel sales at pantaloons consisted of private


labels like Bare, HNY,John Millers,AFL etc while rest were brands such
as Levis,Arrow,reebok etc.

 The price of private labels was 20%-25% lower as compared to the


branded once.

 In men’s wear retailers earned margin between 55%-60% on private


labels while in women’s wear it was between 48%-50%.
 Special event pricing

 Promotional pricing
SERVICES
 As it is a family store the staff was trained to handle older people.

 Pantaloons also changed the store layout. Earlier it was in aisle format
but they changed it into L & U shaped counters.

 Pantaloons had a “No Question Asked” exchange policy.

 They also launched a unique customized tailoring for trousers, blazers


and suits which are delivered to customers within 48hrs.
STP OF PANTALOON
 GEOGRAPHIC-urban,metropolitan cities

 DEMOGRAPHIC-
Family Size-family life cycle
Income-upper middle &high

 PSYCHOGRAPHIC-
Socioeconomic Class-A1,A2,B2
Lifestyle-culture-oriented,sports-oriented,outdoor-oriented

 BEHAVIORAL-
Occasions-regular
Benefits-quality, economy,service
User status-regular
Usage rate-medium
Loyalty status-medium & strong
Attitude-positive
PRODUCT LEVELS
 CORE BENEFIT- protection

 BASIC PRODUCT- different types of apparels and clothings

 EXPECTED PRODUCT- quality and variety

 AUGEMENTED PRODUCT- trendy & fashionable clothes

 POTENTIAL PRODUCT- high end clothes


STP OF BIG BAZAAR
 GEOGRAPHIC- urban , Semi urban

 DEMOGRAPHIC-
Income- middle,lower middle
Family size- family life cycle

 PSYCHOGRAPHIC-
Socioeconomic class-B1,B2
Life style- outdoor-oriented,culture-oriented

 BEHAVIORAL-
Occasions- regular
Benefits- economy
User status- regular
POSITIONING
 EDLP(every day low price)
 Promotional pricing
 Differentiated pricing-
 Bundling

PROMOTION
 SAAL KAY SABSE SASTE TEEN DIN
 Future card
 Wednesday bazaar
Food Bazaar

In 2004:pantaloon had 13 FOOd Baazars across


India ,generating revenues worth INR 170 crore.
Started in Mumbai in 2001 as a part of Big –
Bazaar.
In some cities Pantaloons were opened within
Pantaloons, and later it was introduced as
standalone outlets.
Products of Food Bazaar:
 Tea
 Salt
 Spices
 Rice
 Pickles
 A concept of sabzi mandi etc
 Food bazaar had stared home delivery service called “food
baazar on call”in Mumbai.(a 24 hrs tol -free no.,to serve
customers)
STP OF FOOD BAZAAR
 GEOGRAPHIC- metro cities
 DEMOGRAPHIC-
Age-30 & above
Family size-family life cycle
Income- upper middle
 BEHAVIORAL-
Benefits- economy,fresh stock

POSITIONING
 Consistent positioning-always low price
 EDLP(every day low price)
 Psychological discounting
 Special event pricing
 Differentiating pricing- time pricing
PROMOTION

 SAAL KAY SABSE SASTE TEEN DIN-26jan,15aug or diwali

 Future card(3%)

 Shakti card

 Advertisements-print ads,T.V ads, radio ads

 HAFTE KA SABSE SASTA DIN(Wednesday)


Gold bazaar

Biyani realized that there was a huge potential in the


branded jewellery segment in India.
To tap opportunity he launched Gold Bazaar as a
part of Big Bazaar in Mumbai in 2003.
Gold bazaar’s gold jewellery was priced 20% lower
than similar products sold by the traditional
jewellers.
Customers got purity certificates for gold.
THE ROAD AHEAD
 Pantaloon planed to expand its retail stores to small cities like
lucknow,nagpur etc.
 By the end of 2005,pantaloon is expected to have 30 food
bazaars,22 big bazaars,21 pantaloons & 4 centrals.
 Pantaloon also had plan to venture into footwear,consumer
durables,music & car acessories retailing.
 The company also had an forged alliance with a sports retail
footwear company called Royal sports house.
 As a repositioning Biyani planned to give a new makeover to
pantaloons.
 To re-establish and rejuvenate its existing brands,pantaloons
intended to spend INR 2 crores & additional INR 1 crore on its
upcoming brands.
CONTD.

 The company was planning to reduce the number of


vendorsfor both Pantaloons and Big bazaar
 To meets it growing technology meet,they planned to deploy a
retail ERP solution,which would support functions such as HR
& Marketing.
 Pantaloons planned to launch a B2B portal,to bring
transparency in the value chain.

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