A Study On Pantaloon Retail

By Group 6
 Agenda
• Introduction
• Location – Strategies and Tactics
• Merchandize and Assortment
• Store Atmosphere
• Promotions and Advertising
• Personal Selling
• Customer Service
• Supply Chain
• A look at the Numbers
 Introduction
• The first Pantaloons was opened in Gariahat in 1997.
• Initially, Pantaloons mostly sold external brands.
• Gradually, it started retailing a mix of external brands
while at the same time introduced its own private
brands.
• Initially positioned as a family store, it finally veered
towards becoming a fashion store with an emphasis on
'youth‘.
• Today they have over 1000 stores across the country
over 73 cities.
 Location
• Predominantly situated in Malls or Complexes
• Occupies a strategic location – Mostly in a
busy center which increases customer access
as well as the visibility
• Makes sure there is enough parking
• Competition ?? Well, its for the competitors to
worry about 
Merchandize and Assortment
CATEGORIES
 Other Cateogries
•Kid’s wear(Lilliput, Gini &Jony)
•Sunglasses
•Wrist Watches
•Jewellery
•Pens
•Toys
•Perfumes
•Footwear(LeeCooper, Liberty)
John Miller •Miscellaneous

Private Label Contribution towards sales:

Men’ s wear 65% 
Women’s wear 35 %
 Merchandise Management
• Management of a category of merchandise is a
more effective tool than managing individual
brands
• Pantaloons stresses on promoting a product
category, thus making brand marketing a
secondary function.
• Pantaloon’s merchandising team is divided into
the category management team and the
merchandise management team.
 Merchandising Process
• First, the design team develops the design or a new pattern.
• The team is led by the visual merchandising head and has 20 designers for
product development.
• Designs are developed not only for the fashion and collections category
but also for the classic segment so that there is something new every
season,
• The new designs are presented to the category management team, which
consists of close to 40 people handling 16-17 categories of merchandise.
• The category captain and his team is given the entire year’s budget and
sales target for the category based on which he decides whether to
experiment with a new design or not
• If yes, then the category manager will first establish the total purchase
quantity of that design and the stores in which this should go
STORE LAYOUT AND VISUAL
MERCHANDIZE
Store layout
 Store layout
• First Floor : Kids section, Ladies ethnic wear
• Second Floor : Men’s section – casual, sports,
Formal wear and Ethnic wear, sports gear.
 Store Atmostphere
 Flooring and Ceiling
The interior layout generates good brand associations through appropriate color
combinations.
The white color of the walls and floor coupled with the green color of the visual
merchandise helps in portraying the brand effectively.
 Graphics and Sign ages
 Exactly opposite to the entrance gate of the store is a store directory mentioning the
various sections/departments of the entire store (Ground, First and Second floors).
 On the right hand side wall is a sign gage (exactly opposite to the customer grievances
desk) indicating the promotional schemes
 Music
mostly there is rock as well as soft music no particular music beat is followed.
 Store security
Security personnel
Security cameras
 Lighting

Good lighting in a store involves more than illuminating space.

Lighting is used to highlight merchandise, sculpt face and capture
a mood feeling that enhances the store image.
White lighting has been majorly used in the store so that the
customers can identify the requisite colors of the apparels.
For lightening mostly focus lights (white lights) are used for the
clothes that are hanged on wall.
For toys section, traditional wear, & shoes section yellow lights are
used to match with the color of the products put up there and
even make them look more eye catchy and attractive.
WHAT DOES VISUAL MERCHANDISING CONSIST OF?

 Promotion of goods by presentation in retail outlets

 Essentially includes combining environment and space and creating

engaging
displays to encourage sales

 It can increase sales

It can induce impulse buying

It creates interest and encourages the customer to carry out transaction

It can create positive image

 VISUAL MERCHANDISING AT
PANTALOONS
 The store usually follows a color theme

 For example, if the color theme is light yellow,

then the garments at the focal points etc
will be within the pink pallet.

 Smaller products like toys , Hairbrushes etc are

kept the billing counter

 Merchandise is also displayed in mannequins.

While displaying on mannequins mixing of

clothes and accessories is done to give a complete
look
WINDOW DISPLAY

 Usually windows in each store have a

different theme

 Window Display can have a huge role to play

in the case of impulsive buyers

 The maximum time for which a display is put

is usually one month thought it can be a
fortnight too.
PROMOTIONS
AND
ADVERTISING
 PROMOTIONS
• Every year Pantaloon will be the title sponsor
for Femina Miss India peagant. It continued to
be in 2010 also.
• They use magazines, newspapers, television,
radios , hoardings, internet etc for promoting
the brand.
• They signed up style icons BIPASHA BASU &
ZAYED KHAN as its brand ambassadors.
 PROMOTIONS
• Marketing Calendar The events are organized
on the basis of occasions which come on a
yearly basis. In total there are 14 special
occasions listed in a year for e.g. Holi, Diwali,
etc.
• They also conduct in house celebrations like
womens week and events like End of season
sale
 Loyalty Program- Green Card
The flagship loyalty program at Pantaloons is its Green Card
Program. The green card enables the customer to get a whole
range of benefits and discounts.
Each customer who opts for the loyalty program is called a Star
Member.

• 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
PERSONAL
SELLING AND
CUSTOMER
SERVICE
Importance of in-store personal selling
Customer Purchase Decision Making Process

In-store personal selling and promotions play an

important role in changing the final purchase decision.

Problem Evaluati
recognition Informa Post
Stimulu on of Purchas
: tion purchase
s Identificatio alternati e behavior
Search
n of a need ves
 Personal Selling @ Pantaloons
• Pantaloon believes that in-store service is the core
philosophy to better customer satisfaction
• Full service retailer- handles all aspects of purchase and
takes the customer through till he exits the store.
• Sales force comprises young and energetic individuals.
The average age of the in-store sales force in the
organization is 27 yrs.
• Incentives to the sales force are given based on the
number of customers handled and the sales amount.
 In-store personal selling
• Every store has a trained sales force. The sales force is focused on
– Giving a warm welcome by the showroom personnel
– Presence of courteous staff to attend on the customers
– assisting the customers in the selection of merchandise best suited for the
customer
– Reinforce and act as a stimulus at the point of purchase
– they are also involved in creating awareness about various offers which may
benefit the customer. There are a lot of customer loyalty programs which
run various schemes for the customers such as the green card program for
customer loyalty. The customers are made aware of these offers via email
and mobile phones (SMS).
– Sales force takes customers through pre purchase trial service
– Obtaining customer contact details such as e-mail id and contact number
and informing them about offers.
 Allied service provided by sales force
• Payment Facilities:
– Payments for the purchase can be made through cash, all major credit cards and debit
cards.
• Gift Packing:
– At the entrance of the store, there is a gift wrapping counter that provides the service
of gift packing
• Alterations:
– If alterations have to be done in the purchased clothes, the same is carried out at no
cost.
• Helping customers through selection from merchandise assortment:
– Salesforce guide customers to the category of merchandise on the basis of size, fabric,
design, color etc.
• Customer Service Desk:
– If the customer is not satisfied with the product the department guides the customer
through the appropriate channel to solve his/her grievances
 Customer Service
• Customer service is an organization's ability to supply their
customers' wants and needs. excellent customer service is
the ability of an organization to constantly and
consistently exceed the customer's expectations.

• It Consists of all those activities by the retailer that

influence
(1) the ease with which a potential customer can shop or
learn about the store’s offering.
(2) the ease with which a transaction can be completed
once the customer attempts to make a purchase and,
(3) the customer’s satisfaction with the transaction.
 Importance of Customer Service

• Employees play an important role in providing satisfactory

service. All human actors play a part in service delivery
and thus influence buyer‘s perceptions about the brand

• Good quality customer service helps in enhancing:

 customer satisfaction
 Repeat purchase
 Brand loyalty
 profits
 Free publicity through word-of-mouth
 Customer service at Pantaloons
The various aspects of customer service taken care of at Pantaloons are:

Store hours
Parking
Friendly Salespeople
Credit card acceptance
In store announcements
Gift Wrapping and packaging
Merchandise Availability
Complaint handling through customer service desks
Merchandise returns
Servicing and repair
Deliveries
Alteration
 Customer service at Pantaloons…

• Other strategies used in CRM by Pantaloons to

attract & retain customers:
 Events
 Fests
 Loyalty programs
 Gift vouchers
SUPPLY CHAIN @ PANTALOONS
 Critical Components in Place
• Performance Management
• Frequent sales Operations Management
• Demand planning
• Inventory Planning
• Production planning
• Lean systems
• Staff
Merchandise Handling and Inventory Mgmt
Procure
ment
Order Order
Warehouse Processing
System
New
Order

Merchandising
System
Store Stock
POS Sales Data Data
New Stocks
Data
Customer Stock Inventory Data
Billing
Purchase System Mgmt Inventory
System
 Supply Chain Infrastructure
R.O R.O
R.O
R.O
Manufacturer’s
Warehouse R.O DCC R.O
DCC DCC
R.O
Central R.O
Order DCC Regional DCC
Procuring Hub
System R.O
R.O

DCC DCC
R.O
R.O
R.O – Retail Outlet(Store) DCC
DCC – Distribution
R.O R.O
Collection Center
Order R.O R.O

Placing/Stock Checking
NUMBER ANALYSIS – USING
FINANCIAL REPORT
Business Performance

Source: Annual Results Conference call, 31 st August, 2010

 Profitability

Source: Annual Results Conference call, 31 st August, 2010

Balance sheet efficiencies

Source: Annual Results Conference call, 31 st August, 2010

 Future Plan
Pantaloons to open 50 new outlets in the next
2-3 years (27th Nov 2010, Sify News)
Thank You