INTRODUCTION & LITERATURE REVIEW
1.1 RETAIL INDUSTRY IN INDIA
The India retail industry is the fifth largest in the world comprising of organizing and unorganized
sectors Indian retail industry is one of the fastest growing industries, especially for last two years.
Though initially the real industry in India was almost unorganized, however with change of taste &
preference of the customers, the industry is getting more demand; the industry is expected to grow
from 35000crore in 2004-05 to 109000crore in 2010.
According to the 8th annual GLOBAL RETAIL DEVELOPMENT INDEX (GRDI), Indian Retail
industry is most promising emerging market for investment. In 2007 the Retail trade in India had a
share of 8-10% in the gross domestic product of the country. In 2009 it rise to
12%. It is expected to reach by 22% in 2010-2011.
According to the report by NORTH BRIDGE per capita the Indian retail industry expected to grow
to US$700 billion by 2010-11.
By the same time the organized retail sector will be 20% of the total market share. It can be
mentioned here that the share of the organized retail sectors in 2007 was 7.55 of the total retail
Market.
As democratic country with high growth with high growth rates consumer spending has risen sharply
and there is significant increases in the disposable income of the people. Consumer spending 75% in
the last 7-8 year. Organizational retail accounts for 5%of the market, is expected to grow at a CAGR
OF 40% from US$20 million in 2007 to US$107 billion by 2013.
The Indian retail market is highly competitive and major players such as Wal-Mart, Tesco entering
the industry is set to grow even further. It is thus important to see how well which players in the
organized retail industry manages to pull consumers in their stores especially in the retail more focus
is on repeated sales and sustain the customers for long time.
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1.2INTRODUCTON TO ADITYA BIRLA FASHION & RETAIL
LTD.
Mr Aditya Vikram Birla
Our legendary leader.
His ideals guide us: Integrity, Commitment, Passion,
Seamlessness and Speed.
Originally incorporated as Manz Wear Private Limited on October 12, 1987. The company’s
name was changed to Manz Wear Limited on September 20,1991,future to PANTALOON
FASHIONS (India) LIMITED on September 25,1992 and to pantaloons retail Limited on July 7
1999.
Pantaloons comes from the Italian word pantalone ,which in turn was derived from a
character in a seventeenth century comedy play. In 1992 an initial public offer (IPO) was
made in the month of May.
The first open India’s family store showroom in 1997 in Kolkata. In 2001 bigbazaar, “Is se sasta
aur accha kahi nahin”, India’s first hypermarket chain launched and in 2002 Food Bazaar, the
supermarket chain is launched and in 2007 future Group crosses the $1 billion turnover.
In 2013 pantaloons opens its first flagship store in Chandigarh, pantaloons launches its
1st store in Dehradun, its 2nd store is opened in Vadodara and its 75th store launched in Amritsar.
Pantaloons launched woman’s Wednesday in Chandigarh. The pantaloons voted India’s No.1
Trusted Apparel Retailer for 2013.
In 2014 pantaloons opens its 6th store in Bangalore, they open its first store in hubli,
in this year pantaloons launches Fashion Friday. At its new look store High Street Phoenix,
and In Meerut pantaloons launch its first store.in 2014 pantaloons lunches its new look store
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in Chennai with kollywood diva, Priya Anand. Pantaloons launch its first store in
Muzaffarnager. In 2015 pantaloons Fashion & Retail Ltd has forayed into a commercial
arrangement with Flipkart. And they are also approved the composite scheme, subject to the
necessary statutory and regulatory approvals. In 2016 Aditya birla fashion and retail signs
deal with quirky British designer wear brand simon carter. ABFRL’s Madura F & Lnlunches’ buddy’
from State Bank of India across its 1200+stores. In 2017 Aditya Birla fashion wins American
Eagle rights for India
The company was incorporated as peter England fashion and retail limited on April 19, 2007
obtained the certificate of commencement of business on May 14, 2007. The name of the
company was changed to pantaloons fashion & retail limited on April 23, 2013.The corporate and
registered office of the company is at 701-704, 7th floor, skyline icon business park, 86-92,
0ff. Andheri-Kurla road, Marol village, Andheri (East), Mumbai-400030, Maharashtra.
Pantaloons, the newly acquired business by the Aditya Birla group, one of India’s leading
multinational conglomerates is a powerhouse of fresh fashion and innovation. While weaving
its magic across lifestyle segments, Pantaloons caters to the discerning and trendy Indian
Consumer.
Pantaloons stores have an abundance of choice across categories that range from western to Indian
wear, formal to party wear and active wear for men, women and kids. To further add
To the customers innumerable choices that reflect style, attitude, and comfort, pantaloons has
extended its horizons to fashion accessories like fragrances, footwear, handbags, watches,
Sunglasses and much more.
The Aditya Birla group ranks high in the league of fortune 500 corporations of
the world with strong mix of talented and capable personal comprising of 42 different nationalities,
who are credited with anchoring the organisation and scripting one brilliant success story after
another.
2015-Aditya Birla fashion & retail ltd has forayed into a commercial arrangement with flipkart -
pantaloons fashion & retail ltd had approved the composite scheme, subject to the necessary
statutory and regulatory approvals.
Pantaloons stores have an abundance of choices across categories that range from western to Indian
wear, formal to party wear and active wear for men, women and kids. To further add to the
customer's innumerable choices that reflect style, attitude, and comfort, Pantaloons has
extended its horizons to fashion accessories like fragrances, footwear, handbags, watches,
sunglasses and much more.
With a chain of 71 fashion stores across 35 cities and towns, Pantaloons is constantly
extending its foot-prints into the rest of modern India.
The Group operates in 36 countries –Australia, Austria, Bangladesh, Brazil, Canada, China,
Egypt, France, Germany, Hungary, India, Indonesia, Italy, Ivory Coast, Japan, Korea, Laos,
Luxembourg, Malaysia, Myanmar, Philippines, Poland, Russia, Singapore, South Africa,
Spain, Sri Lanka, Sweden, Switzerland,Tanzania, Thailand, Turkey, UAE, UK, USA, and
Vietnam. The Aditya Birla Group is an Indian multinational conglomerate named after
Aditya Vikram Birla headquartered in the Aditya Birla Centre in Worli, Mumbai, India. The
Aditya Birla Group is the world's largest producer of Viscose Staple Fiber industry. It
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operates from India, Laos, Thailand, Malaysia and China. It owns the Birla Cellulose brand.
Apart from viscose staple fiber, the group also owns acrylic fiber businesses in Egypt and
Thailand, viscose filament yarn businesses and spinning mills in India and South East Asia.
The group has pulp and plantation interests in Canada and Laos. It's two companies i.e.
Aditya Birla Nuvo Ltd. and Grasim Bhiwani Textiles Ltd. which is a subsidiary of Grasim
Industries are in textile business.
The Aditya Birla Group ranks high in the League of Fortune 500 Corporations of the world
with a strong mix of talented and capable personnel comprising of 42 different nationalities,
who are credited with anchoring the organization and scripting one brilliant success story
after another.
Initially positioned as a store catering to the fashion needs of the entire family, Pantaloons
has now transitioned to a fashion and lifestyle brand with an emphasis on youth and a focus
on designs that are inherently in sync with current fashion trends.
This compelling combination has helped Pantaloons retain its place on the style radar of
every consumer's wardrobe. Pantaloons stores have an abundance of choices across
categories that range from western to Indian wear, formal to party wear and active wear for
men, women and kids.
2016 -Aditya Birla Fashion and Retail signs deal with Quirky British Designer wear brand
Simon Carter -ABFRL's Madura F&L launches 'Buddy' from State Bank of Ind
ia across its 1200+stores.
2017 -Aditya Birla Fashion wins American Eagle rights for India.
1.3 COMPANY PROFILE:
NAME OF THE ORGANIZATION: Pantaloons Fashion& Retail Limited
ADDRESS: ABFRL, Pantaloons Suruchi Plaza
Plot no. 29 & 35, A/B,Janpath Rd., Saheed
Nagar, Bhubaneswar, Odisha 751007.
PHONE NO.: 07604095525
SIZE OF THE OEGANIZATION: Large scale
WORKING HOURS: 9 Hours
LOGO:
SLOGAN: In love with life
In love with fashion
TYPE: Public
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TRADED AS: BSE: 535755
NSE: ABFRL
INDUSTRY: Retail
HEADQUARTER: Mumbai, Maharashtra, India
FOUNDED: 1997
NO. OF LOCATIONS: 382
AREA SERVED: India
KEY PEOPLE: Ashish Dikshit (Managing Director)
Sangeeta Pendurkar (CEO)
Mr. Jagdish Bajaj(CFO)
Karan Mehta(COO)
PRODUCTS: Clothing
REVENUE: ₹8131.95crore (US$1.0 billion) (FY)
OWNER: Aditya Birla Group (56%)
NO. OF EMPLOYEES: 25000+
PARENT: Aditya Birla Group
WEBSITE: www.abfrl.com
1.4 OUR VISION, MISSION & VALUES:
OUR VISION:
To be a premium global conglomerate, with a clear focus on each of the business.
OUR MISSION:
To deliver superior value to our customer, shareholder, employees and society at large.
OUR VALUES:
INTEGRITY honesty is every action
COMMITMENT deliver on promise
PASSION emerged action
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SEAMLESSNESS boundary less in letter spirit
SPEED one step ahead always.
1.5 SWOT ANALYSIS OF PANTALOONS:
❖ STRENGTH:
• Pioneer in the industry, largest market share and capitalization
• Reputation for value for money (competitive pricing), convince and a wide range of products
all in one store.
• Being financially strong helps pantaloons retain india deal with any problems, ride any
dip in profits and perform their rivals.
❖ WEAKNESS:
• Pantaloons do not function internationally, which has an effect on success, as they do not
reach consumers in overseas markets.
• Since Pantaloons Retail India Ltd. Sell products across many sectors, it may not have the
flexibility of some of its more focused competitors.
❖ OPPORTUNITIES:
• Opportunity exist for Pantaloons to continue with current strategy of large, super centres.
• Population of country is growing where the scope of market is kept on increasing for retail
store.
❖ THREAT:
• Being number one means that you are the target of competition. (extra competition
and new competitors entering the market could unsteady Pantaloons Retail India).
• A slow economy or financial slowdown could have a major impact on Pantaloons
Retail India business and profits.
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1.6 SALES PROMOTION:
Sales Promotion is Very important component of the marketing, the promotion mix.
It focuses on encouraging the potential customers to buy the products or services of an organisation,
by enhancing its value.
Sales promotion is one of the five aspects of the promotional mix. The other 4 parts of the
promotional mix are advertising, personal selling, direct marketing and publicity/public relations.
Media and non-media marketing communication are employed for a pre-determined, limited time to
increase consumer demand, stimulate market demand or improve product availability. Examples
include contests, coupons, freebies, loss leaders, point of purchase displays, premiums, prizes,
product samples, and rebates.
Sales promotion is one of the five aspects of the promotional mix. (The other 4 parts of the
Promotional mix are advertising, personal selling, direct marketing and publicity/public relations.)
“Sales promotion incentive offering and interest creating activities which are generally shot term
marketing events other than advertising, personal selling, publicity and direct marketing. The
purpose of sale promotion is to stimulate, motivate and influence the purchase and other desired
behavioural responses of the firm customers.”
TOOLS OF SALE PROMOTION
1) Price off offer:
Under this Offer, products are sold at a price lower than the original price. This type of scheme is
designed to boost up sales in off season and sometime while introducing a new product in the
market.
Ex:
Buy 2 men T-shirts at Rs. 599/ -and 1 T-shirt at Rs. 399/ - (MRP: Rs.399/T-shirt).
Buy 2 men T-shirts at Rs. 749/ -and 1 T-shirt at Rs. 499/ - (MRP: Rs.499/T-shirt).
Buy 3 men round neck T-shirts for Rs. 399/-(MRP: Rs.199/T-shirt).
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2) Discounts:
Under this, the products are sold at a discounted Price with percentage discounts on
the original price. This
of scheme is designed to boost up sales in off-season.
Example
➢ 50% off on all the men formal shirts and trousers.
➢ 50% off on all thewomen dress and top.
➢ 50% off on all the kids t-shirts and jeans.
3) End of season sale:
End of season sale or stock Clearance sale is been conducted at pantaloon factory outlets.They are
offering surprising discounts if you buy 2 any items of garments and you will get 3 more with your
choice absolutely free. These offer are given as celebration of New year.
4) Seasonal offers:
Pantaloons provides the customer with various discounts and price-off offer at the stores and
Factory outlets on the seasons like winter and monsoon. This type of scheme is designed to boost up
sales in these seasons.
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5) Festive offer:
Pantaloons have come up with festive offer during Diwali and Chirstmas by givinga way gifts for
purchases that are made at the store for cheaper price. If you shop for Rs.4500 you get a trolley beg
worth Rs. 1299 for Rs.149 only. If you shop for Rs.2400 and above you get a lemon set, which is
said to be imported, worth Rs.649 for Rs.99 only.
6) New Year offer:
Pantaloons offer gifts for purchases that are making at the store during the New Year for cheaper
price. If you shop for Rs.3500 you get a Imported Men T-shirt Rs.1500 only. If you shop for
Rs.2500, you get a 3 nights and 4 day holiday package for a couple on an International cruise.
7) Gift Cards:
It's the all new Pantaloons' gift card. It is actually, the entire store in one card as it allows you to
choose from the store's entire collection of western and ethnic fashion, accessories, handbags,
footwear, cosmetics, perfumes, watches, sunglasses and more, for men, women and kids.
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8) Gift Vouchers:
Pantaloons fashion offer many pantaloons vouchers ranging different denomination like
Rs. 3000. These pantaloons vouchers are exchangeable with the products by the customers at
all the pantaloons showroom India. To the customers for the products of value of Rs. 500 at all
showroom of pantaloons all over India. This voucher is valid for all apparels only.
9) Pantaloons loyalty Program (Green card):
Green Card is a passport a whole new world new of exclusive benefits and privileges to the
customers.
•Instant discounts for every time you shop at pantaloons.
•Exclusive shopping day to get hold of latest merchandise.
•Regular Updates on collections and promos via catalogues, SMS and Calling.
•Extended exchange periods and complimentary drops for alterations.
•Exclusive billing counters and much more.
10) Insignia: Enroll Insignia @1499 and get the following benefits:
• 10% discount instant discount for every product for one year to the customer.
• Free carry bag.
• Relaxed exchange policy (90 days).
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• Convenient mobile based program.
• Exclusive fast-track billing counters.
1.7 CONSUMER BUYING BEHAVIOR:
Consumer buying behaviour is the study of individuals, groups, or organizations and the processes
they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy
needs and the impacts that these processes have on the consumer and society.
Marketing success or failure of a company depends on target consumers’ individual and group
reactions expressed in the form of buying patterns. Since customer is the reason why any
organization exists, it is necessary to understand the customer and study the pattern of his buying
behaviour.
According to Frederick Webster- “Consumer buying behaviour is all psychological, social and
physical behaviour of potential customers as they become aware of, evaluate, purchase, consume and
tell other people about products and services.”
It may be viewed as an orderly process whereby the individual interacts with his environment for the
purpose of making market decisions on products and services. To achieve a better understanding of
the consumer behaviour, study of such disciplines like economics, sociology, psychology, and
anthropology is required.
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1.8 Objective of the study:
• To know how sales promotion activities affects the consumer buying behavior.
• To know that which sales promotion technique is satisfying the customer need.
• To know is sales promotion activities strengthen the image of the company.
1.9 Scope of the study:
• Pantaloons give various discounts and offers. This report will also in knowing whether
various discounts and offers given by Pantaloons are enough for attracting customers or not.
• This research will also be very helpful in knowing the loyalty of customers towards
pantaloons. By Green Card status we can get an idea about it.
• Very general attributes of customers like visit per month, importance given to attributes like
ambience, parking also become clear.
1.10 Limitation of the study:
• Questionnaire were filled in evenings, when the most of the people are in hurry and they
might not have responded truly and correctly to all the questions.
• Our research is limited to only one store of pantaloons and sample size is of 110 respondent,
so errors may crop in while generalizing the result.
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