Pantaloon Retail Limited, Marketing Analysis

Pantaloon Retail Limited, Marketing Analysis in butt in(predicate) aggroup focuses most in the sell segment and most of its businesses argon built around the same. Future Groups retail network operates 1,000 stores for to a greater extent than 200 million Indians in 73 cities and 65 rural locations across the pastoral in 16 million squ be feet of retail space.some(a) of the most best-selling(predicate) retail bondage of India a c be(p) Pantaloons ( chain of fashion destinations), commodious funfair (hypermarket chain), provender bazaar (supermarket chain) and cardinal (chain of seamless destination m wholes) blade Factory, Planet Sports, ALL, Top 10 and champion and Sitara argon managed by Future group. Indias most popular online shop portal www.futurebazaar.com is as well owned by the Future Group.Home building and home improvement products and function atomic number 18 in addition led by means of and through the groups formats, like the Home Town ( sizable-fo rmat home solutions store), assembly i (formats specialized for home furniture and home furnishing) and Furniture carnival and consumer electronics through eZ whiz and Electronics carnival. Aadhaar, Indias leading rural retail chain has a presence in more than 65 rural locations. It acts as a pure(a) solution provider for the Indian farmer.Pantaloon Retail (India) Limited is whizz of the leading retailers in India. Mr. Kishore Biyani, is the founder and is splendidly known as Indias King of Retail. Pantaloon has revolutionized the retail fraternity. With its headquarter in Mumbai, Pantaloons operates multiple retail formats in value and modus vivendi segment. Pantaloons plans to increase its retail space to 30 million sq. ft. by 2011. PRIL is sub-divided intoPantaloons vast bazaarFood carnivalFashion StationAllBlue skyE-z iodineCollection 1Home townCentral M both2001 Indias first hypermarket chain freehanded bazaar is launched2002 Food bazaar, a supermarket chain is laun ched2006 Future groups pecuniary arm, Future capital holdings launches two real estate fundsPantaloonsHigh fashion family department, geared toward Indian middle and upper classes. In 2005, pantaloons rolled surface a refreshed intersection and note conference campaign to position itself as fashion trend instalter appeal to Indias youth.Central MallIt is positioned as a do for shopping, eat and enjoying.Big bazarBig Bazaar hypermarket concept was started in 2007 by PRIL. It was designed to coalesce elements of an Indian bazaar with recent retailing features like parking of vehicles, AC shopping environment and exemption of replacing merchandise.Food BazaarThe first outlet of Food Bazaar receptive in June 2002, at bottom 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 reach of products are made purchas able at affordable prices. PC World has named the website as the scoop out Indian Website for 2007 in the Shopping category.Food In the food section, a lot of options are in stock(predicate) like Food Bazaar Chain of large super marketsBrew Bar 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 returnsable 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 TownLei indisputable EntertainmentA family entertainment center called Bowling Co.A store offering gaming options from bowling, pool, video games to bumper cars called F 123 health knockoutHealth Village It s a yoga center as advantageously a spa superstar Sitara A beauty salon for men and womenTulsi Allopathic, homeopathic and ayurvedic medicinal products are providedTurmeric Beauty products like colour cosmetics, fragrances, herbal and specialty skin items, hair products and bath accessories are offered.Books MusicDepot It offers stationary, CDs and books study Achievements of Pantaloon Retail2007 International Retailer of the Year2007 Emerging market Retailer of the Year2007 According to Hewitt shell Employers Survey Best Employers in India (Rank 14th)2006 Best Managed Company in India (Mid-cap) for the year2006 Image Retail Awards for Best Value Retail Store, Best Retail Destination, and Best Food Grocery Store.Retail Black sand trap someoneateThe 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 best in one of the several retail offerings i.e to say that the comp any is clearly positioned in one or more favored locations to win and indeed they are the strategic differentiators. The losers gravitate to central position, are non best at anything and are sucked into the black hole of retailingWe have a store opening virtually every fortnight I have lost count now of how legion(predicate) I have openedKishore BiyaniBig Bazaar A paradigm shift to the Modern 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 existence authentically no-frills. The personality of the brand is self expressed by its tagline Is se sasta aur accha kahin nahiIt parcel outs 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 pass dissolves and works on the same economy model as Wal-Mart and has considerable victory in many Indian cities and teensy-weensy 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 gain of Indian Bazaar with modern retail concepts of choice, convenience and quality.PRODUCT MIXELECTRONICS BAZAARTelevision sets washing MachinesRefrigeratorPersonal CaremBazaarMicrowavesSmall AppliancesLap crystallisesComputer AccessoriesKitchen AppliancesFASHION JEWELLERYFootwear BazaarBeauty CareNavaraStar ParivarMeena BindreFURNITURE BAZAARLiving boardBed RoomKitchenDinning RoomsKids RoomBeen BagsPaintingsDecorative ItemsCHILD CARE TOYSKids WearToy BazaarStationaryChild Care separate SERVICESMr. rightBakeryLoot MartTulsiFuture MoneyFuture Generally scratch AUDIENCEHigher and upper middle class customers are the guide segment of Big bazaar.an otherwise(prenominal) preferred customer segment is the young and growing population of the country.Big bazaar primarily targets the women family unit and home makers who they feel are the primary decision makers.CORE COMPETENCIESProduct stove consisting of more than 20,000 products.Has a strong supply 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 fosterline for solving the queries of customers.Offers manufacturers ascertain as opposed to sellers guarantee.Good quality at rationalnessable cost.STRATEGIESMinimize retailing cost.Minimize direct expenses by employing fewer floor staff -single person for every five hundred sq ft.Keep furniture cost to minimum.Cut down expenses related to sourcing by almost 25-30%.Increasing the overall efficiency of logistics by creating mother-hubs all across India for the purpose of sourcing products from regional/local vendors.Slashing channel cost by up to 25%.Economizing Shelf SpaceDealing with un interchange stock in an effective manner.Ensuring enough pull to fleck away customers from the neighbourhood.Introducing the concept of to solar 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 selling 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 points. As a part of this strategy Future group has come up with three catchy and cocky advertisement campaigns.Keep West-a-Side. Make a sassy 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 centre creates an encouraging investment climateProblems of acquire subsidy from Octrai and on different taxes like land, water taxesA less complicated taxation structure(GST) on the horizon.Problems regarding taking over properties and real estate.Easing restrictions on FDI by the government leading to easier import of external consumer goods, thereby bringing variety to the Indian market place.EconomicalIndia is one of the warmest growing economies, contiguous only to China (7-7.5% GDP growth rate).Retail Industry to grow leaps and bounds by 2015 collectable to the consumption driven economy of the country.Increase in the percentage contribution of the service sector to GDP. change magnitude 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 works womens propositionLife style changesShift in Product and service preferencesIncrease in unexampled population giving the country a demographic advantageTechnologicalTechnological development for fast billing and the serviceBetter appli cations of information technology in the modern retail industry, like in supply chain management, store management, point of sale and customer relationship managementPorters Five 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 set) is the major objective of pricing at Big bazaar. fundamentBig-bazaar has a pan India presence with more than seventy-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 Bi yani, the cost of real estate should preferably be less than 5% of total gross sales of store if one wants to provide maximum benefit to customers. Securing spaces before other retailers join in has been a strategic decision of Big bazaar which has resulted in cost-saving.PromotionMany novel cross sell and upsell strategies have been developed by Big bazaar in Indian retail market. Big Bazaar uses various promotional techniques such as saal ke sabse saste teen din, Future card, Shakti card, using M.S.Dhoni as brand ambassador, interchange offers such as pan swap offer, POP promotions.Print media, TV, Radio (FM) and road-side bill-boards are some of the many means 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 mysterious in the service sector. Big bazaars staff possesses some salient features such as The staff is well trained for modern retail.Innovative t hinking among the employees is encouraged at Big bazaar.Multiple payment counters, accessibility of stores staff for arresting 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 buyd 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 exhibit 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 StatementInterpretation 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 steady rise though it has flattened a bit in recent years likely due to gamyer operating costs, inab ility to transfer the increased 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 reason could be a rights issue or other similar action leading to equity dilution.The harvest-time on capital employed has been decreasing YoY. This could because of concern for the company.The debt equity ratio has not been too inconstant and has eternally been below 2 which is an indication of sound financial status of the company.Aggressive Marketing Promotions02The promotional activity of the company, which says Nobody Sells Cheaper and Better has differentiated 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 high-yield result to the company. Among them sales Promotions is one of the leading activity or unique among all other activities has high influence on the customer walk-in.As sales promotions is the major force for Big-Bazaar, Big Bazaar press it very seriously especially during festivals special occasions by focussing aggressively on mental 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, happen during festivals. At least 40-50% bears place during the peak festival season, between September and November.According to Ashni Biyani, 23, a team is set up six months ago comprising practiseds 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 take on customers and to string that Indi a 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 in reality 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 coordinate 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 nonionized by Big Bazaar every year has assumed 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 worthy 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 energy 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 Concept was to aim at giving the homemakers the queen 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 differentiated from the Wednesday bazaar in terms of the offers cross-selling and not on decrease the price of a contingent product.This way they were able to different iate 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 promotionsMaha Bachat Sale Big Bazaars incorporates such as on liberty 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 elderly citizens were created and promoted on the Senior Citizens Day. periodic 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 B ig Bazaars USP of value proposition, Is se sasta aur accha kahin nahi scheme 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 very 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 confident seeing the confidence level of Big-Bazaar which again built a strong brand specialism 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 huge 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 I ndian 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 consumers 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. phraseology 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 grant to a social cause. Big Bazaar makes an equal contribution and donates the entire proceeds to an NGO called let off the Children India. This is a selfless body which has been working for the welfare of children from marginalized sections of society.Corporate campaignBig Bazaar has of late launched a corporate campaign which revolves around a family having a great time together. The brand hymn Khushiyon se Bhari Jholi connects with the customers at an emotional level positioning Big Bazaar as part of the glad 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 done by the consumers during special occasions. naturalize Jao Khushi KhushiProvid ing Discounts School related requirements accessories like school bags, water bottles, lunchboxes, shoes etc.Promotions includePencil Case for purchase of above Rs d. 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 lucky kids shop for Rs 1,000 above, miss 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 painting, 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 wampum A CarSpecial treatment emotional connect for the individual his/her friend -free massage, 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. propel the home made mithai recepies Purchasing goods worth Rs 500 above, females were pulled to send the expression 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 gift on purchase of over Rs 10 00/- or above.Christmas-Card Design Contest Design next years Christmas card for children and a gift voucher worth Rs. 500 were given to the best card winner.Big Bazaar Christmas companionship focussing on points vouchers through festival focussed games.Happy-HoursAll the discounts/offers were hiked up in a restore 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 door 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 san g 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, give in goodwill, and have also attracted the floor traffic to store at the large scale.Supporting a brotherly loveSupport 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.Advertisements publicize for Big-Bazaar is an essential component of brand building.The advertisement focusing on brand building of Big-Bazaar is done through various ways, Some of the techniques applied are Tag Line 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 simple 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 advertise 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 channels 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-boar ds in native 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 conditions at that bad-tempered 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 endorsement co-branding is used by Big Bazaar. ahead 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.Communi cation through Media straining spending is carried out for proper position of Big Bazaar through the different mediums. Paper advertisements are released just 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 back 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.Above 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 term s 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 differentiated through low pricing strategies. Hence it promises delivers the lowest available price without stressing on verifier clipping, discount promotions waiting time, or comparison shopping.Promotional-PricingLow interest 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