Training Report ON Customer Behaviour Pantaloons Retail India LTD, Zirakpur (Chandigarh), Punjab
Training Report ON Customer Behaviour Pantaloons Retail India LTD, Zirakpur (Chandigarh), Punjab
AT
SUBMITTED SUBMITTED BY
DEPARTMENT OF COMMERCE MRLM (F)
TO
RITU
TABLE OF CONTENT 1. Preface. 2. Acknowledgement. 3. Summary. 4. Introduction. 5. Retailing in India 6. Company profile. Pantaloon Retail Chain. Competition. Pantaloon Brand Vs. Their Competitors. Merchandise Mix. 7. Visual Merchandising. 8. Objectives of Study. 9. Research Methodology. 10. Analysis. 11. Scope and Limitations. 12. Research Findings. 13. Recommendations and Conclusions. 14. Bibliography.
PREFACE
Retailing is going through a transition phase in India. The retail trade sector comprises of establishments engaged in retailing merchandise, generally without transformation, and rendering services incidental to the sale of merchandise. Retailing process is the final step in the distribution of merchandise. The corner grocery store, which was the only choice available to the consumer, is now giving way to international formats of retailing. There had been a boom in retail trade in India owing to a gradual increase in the disposable incomes of the middle class households. More and more players were coming into retail business to introduce new formats like malls, supermarkets, discount stores, department stores and traditional looks of bookstores, chemist shops, and furnishing stores. The traditional food and grocery segment has seen the emergence of supermarkets/grocery chains (Food World, Nilgiris, Apna Bazaar, Vishal Mega Mart, Spencers, Pantaloon), convenience stores ( HP Speed mart) and fast-food chains (McDonalds, Dominos, Pizza Hut, Kfc, Papa Johns etc). Pantaloon Retail (India) Limited, is a large Indian retailer, which is part of the Future Group, and operates multiple retail formats in both the value and lifestyle segment of the Indian consumer market. Headquartered in Mumbai the company has over 1,000 stores across71 cities in India and employs over 30,000 people, and as of 2010, it was the country's largest listed retailer by market capitalization and revenue.
ACKNOWLEDGEMENT
I would like to acknowledge the enormous help given to us in creating this project report. For their memories, their patience, and their guidance i wish to thank all those who contributed to my report by filling up questionnaires and providing me with desired information. I chose Pantaloon Fresh Fashion at Zirakpur, for my project work and the customers of that store helped me whole heartedly and provided me with all the necessary information. Mostly my thanks to Mr. Munish Bhardwaj, Store Manager at Pantaloon at Pantaloon for allowing me to handle this Project and Letting me gain such a wonderful experience, Without their support and guidance this project would not have been possible. Also I would like to thank all the staff specially the for their helpful and co-operative behavior. I am also thankful to Chairman of Department of Commerce. Regards Ritu
SUMMARY
This project report throws light on the reasons behind customers decision of choosing Pantaloon for purchase of Apparels and various other products from Pantaloon. Pantaloon is one of the emerging players in the Indian retail industry and offers a deep insight into the industry.
INTRODUCTION
Pantaloon Retail (India) Limited, is a large Indian retailer, which is part of the Future Group, Whose MD and Group CEO is Mr. Kishore Biyani, and operates multiple retail formats in both the value and lifestyle segment of the Indian consumer market .With effect Jan.1, the company separated its discount store business, which includes the Big Bazaar hypermarket and the Food Bazaar supermarket businesses, into Future Value Retail Ltd., its wholly-owned subsidiary, so that the company may be listed independently. The companys brands include Pantaloons, a chain of fashion outlets, Big Bazaar, a hypermarket chain and Food Bazaar, a supermarket chain. Some of the company's other regional brands include, Depot, Shoe Factory, Brand Factory, Blue Sky, aLL, Top10 and Star and Sitara. A subsidiary company, Home Solutions Retail (India) Limited, operates Home Town, a large-format home solutions store, Collection , selling home furniture products and E-Zone focused on catering to the consumer electronics segment. The first Pantaloon was opened in Gariahat in 1997. Over the years, it has undergone several transitions. When it was first launched, this store 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' and clear focus on fresh fashion. Today, the fashion store extends to almost all the major cities across the country. Pantaloons have established its presence with stores not just in the metros, but also in smaller towns. Pantaloons stores have a wide variety of categories like casual wear, ethnic wear, formalwear, party wear and sportswear for Men, Women and Kids.
It includes different varieties Bare Denim, Umm, John Miller, Provogue, Spyker, Agile, Rig, Lee Cooper, Anabelle, Honey, Jealous21, aLL, Urban Yoga. 'Fresh Fashion' an idea that has captured the imagination of young India. With a focus on the youth of today, Pantaloons offers trendy and hip fashion that defines the hopes and aspirations of this demography.
10
RETAILING IN INDIA
The Indian retail industry is the fifth largest in the world. Comprising of organized and unorganized sectors, India retail industry is one of the fastest growing industries in India, especially over the last few years. Though initially, the retail industry in India was mostly unorganized, however with the change of tastes and preferences of the consumers, the industry is getting more popular these days and getting organized as well. With growing market demand, the industry is expected to grow at a pace of 25-30% annually. The India retail industry was expected to grow from Rs. 35,000 crore in 2004-05 to Rs.109, 000 crore by the end of year 2010. According to the 8th Annual Global Retail Development Index (GRDI) of AT Kearney, India retail industry is the most promising emerging market for investment. In 2007, the retail trade in India had a share of 8-10% in the GDP (Gross Domestic Product) of the country. In 2009, it rose to12%. It is also expected to reach 22% by 2010-11. According to a report by Northbridge Capita, the India retail industry is expected to grow to US$700 billion by 2010-11. By the same time, the organized sector will be 20% of the total market share. It can be mentioned here that, the share of organized sector in 2007 was 7.5% of the total retail market. As a democratic country with high growth rates, consumer spending has risen sharply as the youth population (more than 33 percent of the country is below the age of15) has seen a significant increase in its disposable income. Consumer spending rose an impressive 75 per cent in the past four years alone. Organized retail, which accounts for almost 5 per cent of the market, is expected to grow at a CAGR of 40 per cent from US$ 20 billion in 2007 to US$107 billion by 2013. It is important to study the brand which is a store of all brands. The retail market in India is highly competitive
11
and with major players such as Wal-Mart and Tesco entering the industry it is set to grow even further. It is thus important to see how well, which player in the organized retail industry manages to pull consumers in their stores. Especially in the Retail Industry there is more focus on repeated sales and sustaining the customers for a long time.
12
COMPANY PROFILE
13
14
Future Group
Pantaloon Retail is the flagship enterprise of the Future Group, which is positioned to cater to the entire Indian consumption space. The Future Group operates through six verticals:Future Retail (encompassing all retail businesses), Future Capital (financial products and services), Future Brands (management of all brands owned or managed by group companies), Future Space (management of retail real estate), Future Logistics (management of supply chain and distribution) and Future Media (development and management of retail media). Future Capital Holdings, the group's financial arm, focuses on asset management and consumer finance. It manages two real estate investment funds (Horizon and Kshitji) and consumer-related private equity fund, In division. It also plans to get into insurance, consumer credit and other consumer-related financial products and services in the near future. Future Group's vision is to, "Deliever Everything, Everywhere, Every time to Every Indian Consumer in the most profitable manner." One of the core values at Future Group is, 'Indianness' and its corporate credo is - Rewrite rules, Retain values.
15
Core Values
Indianness: confidence in ourselves Leadership: to be a leader, both in thought and business. Respect & Humility: to respect every individual and be humble in our conduct. Introspection: leading to purposeful thinking. Openness: to be open and receptive to new ideas, knowledge and information. Valuing and Nurturing Relationships: to build long term relationships. Simplicity & Positivity: Simplicity and positivity in our thought, business and action. Adaptability: to be flexible and adaptable, to meet challenges. Flow: to respect and understand the universal laws of nature.
16
COMPETITION
In the fashion segment, they face competition from Shoppers Stop, Vishal Mega Mart, Reliance Trends, Trent, Westside and Lifestyle. Though the hypermarket is new only three to four years old in the country competition is faced from likes RPG (Spencer's), Trent (Star India Bazaar) and with Shoppers Stop. Several other outlets which are giving competition to Pantaloon are Koutons, Charlie outlaw, Cantabile, etc. Another competitor may prove to be a very potential, which is going to enter in the Indian market, and it is the WALLMART coming to India, in partnership with Bharti. PANTALOONS BRAND vs. THEIR COMPETITOR Brand: The American Marketing Association describes a brand as name, term, symbol or design, or a combination of them intended to identify the goods and service of one seller or group of sellers and to differentiate them from those of competition. The company has its own brands but it focus on other multiple brands as well.It also provides various other brands to its customers. It has a collaboration with many different brands and it sales them under its name ,it provides benefit to both. The Competitor Brands in the Market are: Koutons, Tng, Cantabil, TQS, La FAnso, Charlie Outlaw, Reliance, Cobb ,Italy, Levis, etc. As these are the small retail outlets placed nearby to the local markets, so they are giving competition to pantaloon.
17
These are the few famous brands which are available at Pantaloons:
1. 2. 3. 4. 5. 6. 7. 8. 9.
ALL ANABELLE BARE DENIM BIBA HONEY INDIGO NATION JEALOUS 21 JM SPORT JOCKEY MILLER LEE COOPER LILLIPUT LOMBARD N MATCH SCULLERS SPYKAR
10. JOHN
16. 17.
18
MERCHANDISE MIX
Pantaloon has a wide range of products in its store - Men Casuals, Formals, Sports wear, Undergarments , Ethnic Wear, Children cloths, Girls and Ladies casual and Formals, Jeans and sports wear, traditional wear, Toys, Footwear, Cosmetics, Perfumes, Deodorants, Sunglasses, Wrist Watches, and Jewellery. Some brands are stated above others are:
COSMETICS: Revlon, LOreal. DEODORANTS: Playboy, Denim, Ferrari etc. SUNGLASSES: Fast track, DG, and many other. WRIST WATCHES: fast track, Titan, Espirit, Timex etc.
19
VISUAL MERCHANDISING
Activity of promoting the sale of goods,especially by their presentation in retail outlets. This includes combining product, environment, and space into a stimulating and engaging display to encourage the sale of a product or service. Visual merchandising is the art of implementing effective design ideas to increase store traffic and sales volume.
It is offered to the customer through interior and exterior presentation. It helps create positive customer image. It helps to increase sales. It encourages impulse buying The exterior appearance of a store silently announces what customers can expect inside. Good exterior visual merchandising attracts attention, creates interest, and invites the customer into the business.
20
MARQUESS:
A special type of sign is used to d isplay the name of th e store. An effective marquee must stand out from other businesses to attract customers It can be used to announce a change in season, sale, a special event or a promotion.
Banners: These are used increasing inexpensive but colorful, eye-catching means of promotion. Banners can be hung from flagpoles, projected from the building or hung flat against t he exteriors. Where many signs compete for customers attention, design and logo become more important. They should be unique, noticeable and readable.
21
Walkways And Entries: Approximately 75 % of first time customers remember stores. Entrance, which provides the first and last view of the stores interior. A cluttered entryway causes shoppers to indefinitely postpone entering a store, while an attractive, well designed entrance is inviting to the customers. Store Interiors: Store interior is an important element of a store concept. The industry, product selection, price segment, customer group and company vision form the foundation of the concept.
22
Goods can be effectively displayed on a variety of fixtures such as gondolas, tables, cubes, mannequins, waterfalls and other racks, display cases and manufacturer point - of -purchase display. Interior Signage:Signage is a critical part of interior display and point of-purchase promotion. Store signage that communicates a sales message can make up for a lack of sales personnel. A good sign provides the most information in the fewest possible words. Layout Planning: Planning of the internal arrangement of selling and sales supporting departments, and deciding on the amount of space for each department.
23
Product Depth: The number of each item or particular style of a product. Under one product how many sub -Products Company provides or how many varieties company have for that product. Examples: To keep our inventory costs down, we have a shallow product depth. This means we only stock 3 -6 SKUs of each product we carry. Private labels: Pantaloons have their own in house brands in Apparel as well as different sections some of them are: Honey Annabelle Bare
24
25
26
OBJECTIVES OF STUDY
This marketing research aims to study: Consumer attitude towards Pantaloon and why people prefer visiting it over other retail outlets. How much the factors like the distance of the store from consumers house affect the decision of a customer choosing to visit Pantaloon. Does the availability of goods and variety of goods attract customers towards Pantaloon? Measure the extent to which customers find discount and other offers at Pantaloon more exciting and attractive than those provided by other retail outlets. Check the brand loyalty of customers towards Pantaloon. To measure the satisfaction level of overall shopping experience at Pantaloon
27
RESEARCH METHODOLOGY
28
RESEARCH METHODOLOGY
A descriptive research design has been followed for this marketing research which highlights both the qualitative and quantitative aspects of the identified problem. PRIMARY DATA To collect primary data best way is to interact with people directly it can be through direct interviews and questionnaires. Both these methods have used for collection of primary data SECONDARY DATA Secondary data is collected from company websites and various Literature reviews. As Pantaloon is daily in news because of its expansion plans, so I benefited a lot from articles on net. SURVEY DESIGN/STUDY AREA Random stratified sampling was chosen for research. Paras Down Town Mall, Zirakpur was selected as the study area and people from this area were selected for filling up of questionnaires and collecting responses due to convenience of location. SAMPLING PLAN: Sampling plan for this research project is divided into following four steps: Sample size: A sample size of 100 respondents was chosen because of time constraint. Though small sample size but it consists of varied type of respondents so as to overcome any error at the time of generalization of result. Sample procedure: Due to time and various other constraints convenience was restored. But efforts were made to check the accuracy of responses.
29
ANALYSIS
30
Q.1 where do you buy Your APPARELS from? Frequency Valid * Near by Garment Shops * Pantaloon * Any retail store TOTAL 15 Percent 15 Valid Percent 15 Cumulative Percent 15
85 0 100
85 100
85 100
100
This bar graph shows that 85% of people prefer PANTALOON for purchasing APPARELS; this may be because of convenience of location, low prices, discounts or other factors. The reasons of choosing Pantaloons over other retail outlets are specified later in this research report.
31
Q. 2 which of the following retail outlets you have visited? Vishal mega mart Reliance retail Westside Shoppers stop Spencer Frequency Percent Valid percent Valid Visited all Only 4 Only 3 Only2 Only1 Total 50 15 30 5 0 100 50 15 30 5 0 100 50 15 30 5 0 100
50 40 30 20 10 0
This bar graph shows that most of the respondents (around 50%) have visited All 5 Retail outlets. No respondent has visited Only 1 retail outlets. This question was included in the questionnaire in order to gauge the awareness
Only 2
Only3
Only4
4th Qtr
32
among customers of Pantaloon regarding other retail outlets. Spas analysis shows that respondents are much aware of the retail outlets. Q.3 How often you visit Pantaloon in a month? Frequency Percent Valid 1-3 times 3-6 times 6-9times More then 9times Total Valid percent 85 10 5 0 100 Cumulative Percent 95 85 100 100
85 10 5 0 100
85 10 5 0 100
90 80 70 60 50 40 30 20 10 0 1-3 times 3-6 85 % 6-9 times This bar graph shows that around times of respondents visit Pantaloons 1-3 times a month and around 10 % of respondents visited Pantaloons 3-6 times
33
a month. It was observed that respondents, who buy APPARELS from Pantaloons, visit Pantaloons 1-3 times a month because people are in a habit of buying APPARELS collectively for some months. Those who visited more than 3 times a month were there to buy for themselves of for family shopping as they were green card holders. Q.4. Do you visit Pantaloons because of variety of products available there? Frequency Percent Valid Yes No Total
90 80 70 60 50 40 30 20 10 0 yes No
90 10 100
90 10 100
This bar graph clearly shows that 90% of respondents visiting Pantaloons are satisfied with the variety of products available at Pantaloons remaining 1 0% of respondents dont feel that Pantaloons provides variety of products.
34
Majority of respondents was satisfied with the variety of Apparels and other products. 5. Do you visit Pantaloons because of low prices? Frequency Percent Valid Yes No Total Valid percent 70 30 100 Cumulative Percent 70 100
70 30 100
70 30 100
70 60 50 40 30 20 10 0 yes No
This bar graph shows that 70% of respondents find Pantaloons economical and visit it because of low prices. Remaining 30% of respondents disagree with the fact that Pantaloons offers low prices than other retail outlets, they find the pricing strategy of Pantaloons at par with other retail outlets.
35
6. Do you visit Pantaloons because of convenience of location? Frequency Percent Valid Yes No Total Valid percent 90 10 100 Cumulative Percent 90 100
90 10 100
90 10 100
90 80 70 60 50 40 30 20 10 yes No This bar graph makes it evidently clear that 90 % of respondents visit Pantaloon because its location is convenient to them. Only 10% of respondents say that its location is not convenient to them as it is situated far from their home. 0
36
7. Do you visit Pantaloons because of prestige issue? Frequency Valid Yes No Total
70 60 50 40 30 20 10 0 yes No
Percent Valid percent Cumulative Percent 65.0 35.0 100 65.0 35.0 100 65.0 100
65 35 100
Through this bar graph it is clear that 35 % of respondents dont feel for PANTALOON as a status symbol as the apparels present here, can be shop from any where as many brands available in market in low cost or comparable cost, so people dont think its a status symbol. Other 65% feel that purchasing at pantaloon is a status symbol for them. So for majority its a status symbol.
37
8. How much satisfied are you with the services provided by Pantaloons? Frequency Valid Very Satisfied Satisfied Cant Say Dissatisfied Very Dissatisfied Total Percent Valid percent 85.0 5.0 4.0 6.0 0.0 100 Cumulative Percent 85.0 90.0 100 100
85 5 4 6 0 100
90 80 70 60 50 40 30 20 10 0
Very Satisfied
Satisfied
Can't say
Dissatisfied
This bar graph distribution shows that 85% of respondents lie in the max. Region i.e. they are satisfied with the services provided by Pantaloons. Out of remaining majority of respondents i.e. 4% are neither satisfied nor dissatisfied which means that while shopping in Pantaloons they never paid attention to the factors like fast billing or queue of billing etc. Those who were dissatisfied by Pantaloons complained about sitting area and billing during sales.
38
9. How much satisfied are you with the Staff at PANTALOON? Frequency Percent Valid Cumulative percent Percent Valid Very Satisfied Satisfied Cant Say Dissatisfied Very Dissatisfied Total 70 19 6 5 0 100 70.0 19.0 6.0 5.0 0.0 100 70.0 19.0 6.0 5.0 0.0 100 70.0 19.0 6.0 5.0 0.0 100
This bar graph shows that majority of respondents lie in the max. region i.e. 70 % of respondents are very satisfied with the staff of Pantaloons. 19% were not much but satisfied. 5% of the respondents, who were dissatisfied with the staff, complained that the staff was lacking in the technical knowledge of products and also shortage when sales.
39
10. How much satisfied are you with the Ambience of PANTALOON? Frequency Valid Very Satisfied Satisfied Cant Say Dissatisfied Very Dissatisfied Total Percent Valid percent 85.0 10.0 5.0 0.0 0.0 100 Cumulative Percent 85.0 10.0 5.0 0.0 0.0 100
85 10 5 0 0 100
90 80 70 60 50 40 30 20 10 0
Very Satisfied
Satisfied
Can't say
Dissatisfied
Majority of the Respondents i.e., 85% were satisfied with the Ambience of Pantaloon, Other10% were just satisfied. And 5% were indifferent with the ambience
40
41
SCOPE
This research will help Pantaloon to identify their competitors in Zirakpur and above all the areas in which they can have an edge on them. 1. Pantaloon gives various discounts and offers. This report will also help in knowing whether various discounts and offers given by Pantaloon are enough for attracting customers or not. 2. This research will also be helpful in knowing the loyalty of customers towards Pantaloon. By Green card status we can get an idea about it. 3. Very general attributes of customers like visits per month, importance given to attributes like ambience, parking also become clear. Limitations: This project report suffers from following limitations: 1. Questionnaires were filled in evenings, when most of the people are in hurry and they might not have responded truly to all the questions. 2. Our research is limited to only one store of Pantaloon at Zirakpur and sample size is of 100 respondents so errors may crop in while generalizing the results. 3. Those who came out of Pantaloon Store after shopping were chosen for getting the questionnaires filled but they held bulky polyethylene bags due to which they found it difficult to stand for long and answer the questions. 4. Most of the retail outlets mentioned in our questionnaire may or may not be visited by respondents; this affected their response to various questions.
42
RESEARCH FINDINGS
43
This research helped us identify following problems where Pantaloon has an immense scope of improvement: 1. People were found to be very dissatisfied with the Pantaloon as compared to some other outlets but mostly were satisfied. 2.Majority of respondents were found complaining about the variety of products, Different sizes not available, footwear, and child section need improvement at Pantaloon. 3. Ladies complaint about jewellery variety is not there, Traditional wear should have more variety, and Footwear. 4. Location was one of the main reason which attracted people towards Pantaloon as it was situated just in the Mall and it took less time for majority of respondents to reach Pantaloon. 5. As Pantaloon deals in discount retailing, it was believed that Pantaloons discount and low prices were one of the main attractions for people but people feel that the discount is not enough and it should be more. 6. Some respondents complaint that there should be sitting space for ladies child and old age people and it was worked out during the project itself. 7. Some respondents demanded book corner should be there. And there should be ample staff and billing counter during sales to handle the huge no. of customers. 8. Parking is also a problem at Pantaloon and some of the customers were dissatisfied with the parking space at Pantaloon, as it does not provide much parking area to its customers. Customers of Pantaloon use the parking space provide by that mall only.
44
45
RESEARCH METHODOLOGY
This research throws light on various strengths and weaknesses of Pantaloon and can also help Pantaloon to improve on different fronts in order to have an edge over its competitors. Based on the analysis and findings of my research I would like to give following recommendations: 1. Pantaloon needs to improve so that it can accommodate more kinds of products and also provide space for children coming with their parents to play and have fun so that for them visiting Pantaloon becomes exciting.
2.
Pantaloon should incorporate more variety of products in its basket so that it provides the convenience of availability of all things under one roof to its customers. Variety of products should specially be increased in traditional wear for women, Footwear, jewellery, cosmetics and more varieties in watches. More varieties in sizes in jeans, Shirts. 3. Sitting area should be there for children and old people, so that they can sit while other family members doing shopping. 4. More computers should be included and number of billing counters should be increased especially during the festival season and sales, so as to speed up the process of billing and avoid large queues. 5. If possible more attractive discount and offers should be given in order to attract more customers. 6. Staff should be trained properly to assist people and to make them understand the benefits of green card membership, it will strengthen Customer loyalty. 7. Other Recommendations include introduction of a Book corner for the book lovers and making shopping more joy full.
46
CONCLUSION
47
CONCLUSION
This research report aims to study consumer attitude towards Pantaloon and highlights its strengths and weaknesses in order that Pantaloon can fight the competition in a better way. Though Pantaloon captures a different market and is giving competition to big players like Vishal mega mart and big bazaar. Retail in India is a booming sector nowadays and Pantaloon should try to benefit more from it. Recommendations given should be considered by Pantaloon in order to emerge as a winner in long run.
48
BIBLIOGRAPHY
49
BIBLIOGRAPHY
Principles of marketing By V.K Publication. .http://pantaloon.futurebazaar.com/indexPantaloon.jsp. Marketing Management By PHILIP KOTLER. http://en.wikipedia.org/wiki/Pantaloon_Retail_India. http://business.mapsofindia.com/india-retail-industry. http://en.wikipedia.org/wiki/Retailing_in_India.
1. 2. 3. 4. 5. 6.
50
51