A

SUMMER INTERNSHIP PROJECT REPORT

ON

“CUSTOMER SATISFACTION IN PANTALOONS RETAIL LTD”

For the partial fulfilment of the requirement

For the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

SUBMITTED TO: SUBMITTED BY:

DR.MUNISH TIWARI ADEEB QAMAR

MANGALMAY INSTITUTE OF MANAGEMENT &

TECHNOLOGY
GREATER NOIDA (U.P.)

DR. A.P.J. ABDUL KALAM TECHNICAL UNIVERSITY,

LUCKNOW
 Certificate

This is to certify that Mr. ADEEB QAMAR, University Roll No 1815270009 is a regular
student of MBA 2nd Year, full time degree course at out institute. Her Project Report work
titled, ‘CUSTOMER SATISFACTION IN PANTALOONS RETAIL LTD’ submitted as
part of the curriculum for the award of the degree of Master of Business Administration from
DR. A.P.J. ABDUL KALAM TECHNICAL UNIVERSITY, LUCKNOW, is an original
work done by him. This work has not been submitted earlier in any form partially or fully to
this or any other Institute/University for any degree or diploma.

(DR. Amit Gupta)

Supervisor Head of Department

 Student Declaration

I, ADEEB QAMAR, bearing University Roll No 1815270009 of APJ University, Lucknow,

enrolled as student of MBA at MANGALMAY GROUP INSTITUTE OF MANAGEMENT
& TECHNOLOGY, GREATER NOIDA, solemnly declare that the project report titled,
‘CUSTOMER SATISFACTION IN PANTALOONS RETAIL LTD’ embodies the results
of original research work carried out by me and the same has not been submitted in any form
partially or fully for award of any diploma or degree of this or any other University/Institute.

(ADEEB QAMAR)
Roll No.: 1815270009
 Acknowledgements

Through this acknowledgement I express my sincere gratitude towards all those people who
helped me in this project, which has been a learning experience.

This space wouldn’t be enough to extend my warm gratitude towards my project guide
DR. MUNISH TIWARI for her efforts in coordinating with my work and
Guiding in right direction.

I escalate a heartfelt regards to our Institution Director DR. TUSHAR KANTI for giving
Me the essential hand in concluding this work.

It would be injustice to proceed without acknowledging those vital supports I received from
my beloved classmates and friends, without whom I would have been half done.

I also use this space to offer my sincere love to my parents and all others who had been there,
helping me walk through this work.

ADEEB QAMAR
 TABLE OF CONTENTS

CHAPTER- 1: INTRODUCATION
1.1 BACKGROUND OF THE STUDY
1.1.1 EXECTIVE SUMMARY
1.1.2 COMPANY PROFILE
1.1.3 APPARELS, BRANDS AND ACCESSORIES

1.2 BACKGROUND OF THE TOPIC

1.2.1 CUSTOMER SERVICE
1.2.2 ADDITIONAL WORK

1.3 NEED OF THE STUDY

1.3.1 CUSTOMER SATISFACTION ATTRIBUTES
1.3.2 LOYALITY PROGRAM
1.4 Objectives of the study
1.5 LIMITATIONS OF THE STUDY

CHAPTER 2: LITERATURE REVIEW

 REVIEW OF LITERATURE

CHAPTER- 3: THEORTICAL FRAMEWORK

CHAPTER- 4: METHODOLOGY OF WORK

4.1 METHODOLOGY OF WORK
4.2 RESEARCH DESIGN

CHAPTER- 5: DATA ANALYSIS AND INTERPRETATION

5.1 DATA COLLECTION AND ANALYSIS
5.2 DATA ANALYSIS
CHAPTER- 6: CONCLUSION
6.1 MAJOR FINDING
6.2 RECOMMEDATIONDS
BIBLIOGRAPHY

CHAPTER 1

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

1.1.1 EXECUTIVE SUMMARY:

I have been assigned a task as a project related to customer satisfaction and the customer services provided at
pantaloons. The project title is” A STUDY ON CUSTOMER SATISFACTION AND CUSTOMER SERVICE
PROVIDED AT PANTALOONS GIP MALL, SECTOR 18.”

This project report throws light on the reasons behind customer’s decision of choosing Pantaloons- GIP MALL
for the purchase of Apparels and various other products. Pantaloons as a Retail Brand is one of the fast-growing
players in the Indian retail industry and offers a deep insight to the industry.

For completion of this report, a survey was conducted and for fulfillment of questionnaires, a sample size of 80
was selected. Among those who were interviewed consist of housewives, professionals, even students. Though
the sample size taken was small but it was varied to overcome all the odds. A structured questionnaire was
constructed to measure the responses of the respondents on suitable scale so that it could be analyzed. Primary
data collection was done via questionnaires and secondary data collection through company websites.

Through survey, effect of various factors like ambience of the store, discount and convenience came in light and
the reason of consumers choosing Pantaloons over other retail outlets became visible

1.1.2 COMPANY PROFILE

Pantaloons, previously owned by the Future Group, has recently been taken over by Aditya Birla fashion and
retail limited a US $4billion diversified industry and India's largest manufacturer of linen fabric.
Pantaloons Fashion & Retail Limited is a premium Indian retail chain. The first Pantaloons retail store was
launched at GARIAHAT, Kolkata in 1997.According to the Brand Trust 2014 report, a study conducted by
Trust Research Advisory, Pantaloons featured among 50 most trusted brands in India. The company provides a
premium and complete shopping experience to its customers through its variety of 220 prestigious brands.
Pantaloons, with a presence across ABFRL hosts India's largest fashion network, with over 7,000 POS across
over 375 cities and towns, in addition to 2,200+ exclusive ABFRL brand outlets. With more than 14 million
loyalty members as of March '16, ABFRL has a big bouquet of loyalty PROGRAMMES in India.
Pantaloons offers multiple accessories and apparel brands including ''categories for men, women and kids. The
collection covers ethnic and western apparels for kids, men, women complemented by a wide range of
accessories. The variety of brands and products has helped Pantaloons to become one of the best retail brands in
India.

1.1.3 APPARELS, BRANDS AND ACCESSORIES

Pantaloons offers, customers a variety of apparels and accessories from the globally renowned brands. The
labels for men in western wear cover Rig, Lombard, Bare Leisure, SF Jeans, Bare Denim, JM Sport, Byford, F
Factor and trendy brands like John Miller and AKKRITI as ethnic wear.
The women’s section includes the private labels — BARE LEISURE, BARE DENIM, RIG, HONEY, AJILE
and Annabelle— in western, as well as the ethnic wears from RANGMANCH, TRISHAA and AKKRITI.
Popular brands as Lee Cooper, Biba are also included. The formal wear offers a range of well-tailored collection
by international brands such as ALLEN SOLLY, VAN HEUSEN, Peter England and Louis Philippe.
Kids wear like Bare Denim, Bare Leisure, Rig and exclusive brands like Chalk, Poppers, Pink & Blue, and in
addition to international brands like Barbie and Disney. Pantaloons offers more than just apparel. Customers can
shop from a range of watches from renowned brands. Trendy sunglasses from Polaroid, Guess, POLICE are
available. The accessories and beauty product segments display a remarkable collection of ladies’ handbags
from LAVIE, CAPRESE. PRODUCTS from color cosmetic brands such AS CHAMBOR, Revlon, Deborah,
Maybelline, and LAKME, as well as a wide collection of attractive fragrances.
In its challenge to meet the consumer’s varying fashion needs, Pantaloons has introduced new brands including
Candies, Alto MODA, SPYKAR, AND, Turtle, Global Desi, 109F, Chemistry, and GINY&JONY. Pantaloons
is a vital part of the prestigious Aditya Birla Group, a USD 40 billion Indian MNC, operating in 40 countries
across the globe with over 130,000 employees, accepted as ‘India’s Most Preferred Apparel Retail Brand’ in the
Brand Equity Survey 2014, Pantaloons continues to meet consumer trust and confidence. With its overwhelming
collection of lifestyle apparel brands, the company is focusing on growth while creating fresh fashion.

1.2 BACKGROUND OF THE TOPIC

My project title is “A STUDY ON CUSTOMER SATISFACTION AND CUSTOMER SERVICE OF

PANTALOONS GIP MALL SECTOR 18”. Involves studying customer’s satisfaction within the store and
interaction with them to understand their needs and satisfaction level with the product and services being
provided by Pantaloons.
It is essential to understand customer’s needs to serve them better and to do so, management should
understand key purchasing factors and prepare themselves. We must satisfy and even felicitate our
customer with the value of our products and services to gain their loyalty and repeat purchases. Customer
satisfaction should be the initial target of any organization .One of the best ways to find out is to ask them
using customer satisfaction surveys.
 Employee and the management of the store can use the survey information to identify opportunities for
ongoing process improvement and to monitor the impact of those improvements.
An unsatisfied customer will exaggerate about their negative experience. A satisfied customer will only
tell a few people about their positive experience. So a retailer should always think in that way to satisfy
their customer and delighting them with the services which enhances differentiation.

1.2.1 CUSTOMER SERVICE

> Customer service is the provision of providing service to customers before, during and after a purchase
of product.
> Customer service in pantaloons is a series of activities designed to enhance the level of customer
satisfaction -:
A. That is the rate a product or service has met the customer expectation. Its vitality varies by product, and
customer.
B. Defective or broken product should be exchanged, often only with a receipt but within a specified time
frame.
> Pantaloons has a desk assigned to deal with returns, exchanges and complaints and performs related
functions at the point of sale.
> Customer service is normally an integral part of a company's customer value proposition.
> From the point of view of an overall engineering effort, customer service plays an unavoidable role in an
organization's ability to generate income and revenue.
> From that perspective, customer service should be included as an overall approach to systematic
improvement.
> Some have stated that the level of customer service in pantaloons has decreased in recent years, and this
can be defined as a lack of support or understanding at the executive and middle management hierarchy of an
organization.
> Customer service is an organization's ability to fulfil their customers' wants and needs. Excellent
customer service is the ability of an organization to consistently exceed the customer's expectations.
It Consists of all following 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 ASAP once the customer attempts to make a
purchase.
(3) The customer's satisfaction with the transaction.
1.2.2 ADDITIONAL WORK

> Giving vouchers related to wedding festival offer.

> Helping customers to make Green cards.
> Call the customers by Telephone to inform them about several ongoing offers.
> Complain handling
> Exchange policy
> Mass GC entry
> Customer input update
> OTP code delivery
> Customer profile and number modification
> Alteration
> Gift Wrapping and packaging
> Gift card and gift voucher issuance
> In-store announcement
> Store hours
> Shopper-friendliness
> Deliveries

1.3 NEED OF THE STUDY

Customer service is an unavoidable part of a company’s customer value proposition. These are the
parameters that indicates the level of focus of any retailer to provide services to the customers.

It is very important to make a point that unless a retailer is not aware of the customer expectations a service,
it becomes quite difficult to set his own service standards for the store.
Customer service may be employed to create such competitive advantage as a service proposition would be
harder to copy for competitors. A company may try to differentiate itself from the competition through
better customer service.

The consistent delivery of superior service requires careful design and execution of a whole system of

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 activities that includes people, technology, and processes.

Technology has provided a wide range of customer service tools. They range from support websites and the
ability to have live chats with technical staff to databases tracking individual customers' preferences,
payment methods, pattern of buying etc., and providing products and service responses based on this
advanced data. Specialist software that is designed for the tracking of service levels and for helping
recognize areas for improvement are often integrated into other enterprise operational software tools such as
ERP software

1.3.1 CUSTOMER SATISFACTION ATTRIBUTES

1. QUALITY
If you have a poor product or service, it affects the satisfaction level. There’s a. No amount of aggressive PR
or marketing that can make a product or service sell. So, product should be up to the mark.

2. DIFFERENTIATION
In Bhubaneswar market, there’s usually many players like big bazaar, max, westside, central etc. Customer
service may not work when choosing the appropriate product or service, but word of mouth certainly plays
into customer satisfaction. If a product is the best in quality and discounts, then it’s necessary to separate it
from the rest of the brands, through customer service, marketing and product quality.

3. ACCESS
The era of digitalization has made finding products and services a snap. What Emailing and finding products
and services on the Internet has become such a trend, companies have invested millions in making sure
access is free and extremely easy.
4. FACE VALUE
When a product or service costs high, but is worth it, the value which becomes acceptable to the consumer.
When a consumer specifically buys trousers from peter England or bare denim, the positive features of the

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 products outweighs the cost, creating a strong sense of good value. Pantaloons should have more
international brands which is rated excellent by the customers.

5. AMBIENCE
When the customers shop at pantaloons, the first impression that they look for is of a clean, safe and well-
organized environment. The store’s ambience affects the purchasing behavior of the customers immensely.

6. FASTER SERVICES
The services as in billing process, exchange process etc. should be faster so that the customer won’t be
waiting in a queue for a long time. Pantaloons has come up with additional billing and exchange counters so
that they can attend more number of customers at a time.

7. TECHNOLOGY
To satisfy customers, pantaloons have come up with the latest technological advances. Technology like
capillary cashier terminal, cashier in touch, qwik cilver help improving the quality of the purchasing
experience without delay or adding staff to the payroll.

1.3.2 LOYALITY PROGRAM

The Pantaloons Green card, loyalty program, has been designed exclusively for Pantaloons' customers to enhance
customer satisfaction. Presently offered to over 4 million members, the PROGRAMME entitles members to
discounts, Points redemption and special privileges at all Pantaloons stores.
The card has four tiers depending on the year's shopping. When a customer shops, the card updates with
increasing privileges and discounts.
The benefits covered under Green card include discounts, complimentary parking, complimentary delivery of
altered garments, relaxed exchange policy, complimentary shipping, exclusive sale preview, exclusive billing
counters.

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There is a membership criterion for customers in PANTALOON, where customers become members and enjoy
discounts on shopping.
3 stars 5 stars 7 stars

• 2 points per • 3% discount as • 5% discount as • 7% discount as

Rs.100 points points points
• No questions • No questions • No questions • No questions
asked Exchange asked Exchange asked Exchange asked
Policy, valid for Policy, valid for Policy, valid for 90 Exchange
90 days, bill not 90 days, bill not days, bill not Policy, valid for
required required required 90 days, bill not
• Instant • Instant • Instant required
Redemption on Redemption on Redemption on • Instant
next bill at cash next bill at cash next bill at cash Redemption on
counter counter counter next bill at cash
• Convenient • Convenient • Convenient Mobile counter
Mobile based Mobile based based program • Convenient
program program • Sale Preview Mobile based
• Sale Preview • Sale Preview • Complimentary program
• Complimentary • Complimentary Home-Drop of • Sale Preview
Home-Drop of Home-Drop of altered apparel • Complimentary
altered apparel altered apparel • Exclusive Billing Home-Drop of
• Exclusive Billing Counters altered apparel
Counters • Reimbursement of • Exclusive
paper carry bags Billing Counters
(as reward points) • Reimbursement
of paper carry
bags (as
reward points)

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1.4 OBJECTIVES OF STUDY

This marketing research aims to study:

1. To check if the availability of goods and variety of products and services attract customers
towards Pantaloons.

2. To measure the satisfaction level of overall shopping experience at Pantaloons.

3 To study the promotional techniques used by Pantaloons and its competitors.

4. To be aware of advertisements of Pantaloons and its competitor.
5 To know the competitive position of pantaloons in the Market.
6. To study the products and services offered by different players to the customer.
7. To access how pantaloons is better than other competitors.
8 To check satisfaction level of customers of different players.
1.5 LIMITATIONS OF THE STUDY

1 The sample size of respondents is limited to 100 because of time Constraints.

2 As only Bhubaneswar dealt in survey so it does not represent the view of the total Indian
market.
3 There was lack of time on the part of respondents.
4 The survey was carried through questionnaire and the questions were based on
perception.
5 Complete data was not available due to company privacy and secrecy..
6 Lacks of motivation as false commitments were made to customer by the company
 CHAPTER2

Literature Review

All businesses that sell goods and services to consumers fall under the umbrella of
Retailing, but there are several directions we can take from here. For starters, there are
department stores, discount stores, specialty stores and even seasonal retailers. Each of these
might have their own little quirks; however, for the most part the analysis overlaps to all areas of
retailing. This section of the industry handbook will try to focus more on general retailers and
department stores (For background reading).

Over the past couple decades, there have been sweeping changes in the general retailing
business. What was once strictly a made-to-order market for clothing has changed to a ready-to-
wear market flipping through a catalogue, picking the colour, size and type of clothing a person
wanted to purchase and then waiting to have it sewn and shipped was standard practice. At the
turn of the century some retailers would have a storefront where people could browse.
Meanwhile, new pieces were being sewn or customized in the back rooms. 
In some parts of the world, the retail business is dominated by smaller family-run or regionally-
targeted stores, but this market is increasingly being taken over by billion-
dollar multinational conglomerates like Wal-Mart and Sears. The larger retailers have managed
to set up huge supply/distribution chains, inventory management systems, financing pacts and
wide scale marketing plans.

Without getting into specific product categories within the retailing industry, the overall
segments can be divided into two categories:

1 Hard - These types of goods include appliances, electronics, furniture, sporting goods,
etc. Sometimes referred to as "hard-line retailers."
2 Soft - This category includes clothing, apparel, and other fabrics.
 Each retailer tries to differentiate itself from the competition, but the strategy that
the company uses to sell its products is the most important factor. Here are some different
types of retailers:

3 Department Stores - Very large stores offering a huge assortment of goods and services.
4 Discounters - These also tend to offer a wide array of products and services, but they
compete mainly on price.
5 Demographic - These are retailers that aim at one particular segment. High-end retailers
focusing on wealthy individuals would be a good example.
Each of these has its own distinct advantages, but it's important to know how
these advantages play out. For example, during tough economic times, the discount
retailers tend to outperform the others. The opposite is true when the economy is thriving.
The more successful retailers attempt to combine the characteristics of more than one
type of retailer to differentiate themselves from the competition.

Same Store Sales

  Used when analysing individual retailers. It compares sales in stores that have been open
for a year or more. This allows investors to compare what proportion of new sales has come from
sales growth compared to the opening of new stores. This is important because although new
stores are good, there eventually comes a saturation point at which future sales growth comes at
the expense of losses at other locations. Same store sales are also commonly referred to as
"comps."
Sales per Square Foot
Store space is considered to be a productive asset and the key to profitability.
Successful companies generate as much sales volume as possible out of each square foot
of store space. More recently, analysts have created modifications of this concept by
looking at a retailers' gross margin per square foot.
Consumer Confidence
The Consumer Confidence Index (CCI) is put out by the Consumer Confidence
Board around the middle of each month. The Consumer Confidence Survey is based on a
sample of 5,000 U.S. households and is considered to be one of the most accurate
 indicators of confidence. Increasing confidence means more spending and borrowing for
consumers - a positive for retailers.
Analyst Insight
As we mentioned earlier, the store type and the strategy that retailers use plays a
big role in how well the company performs. The first thing to take a look at is what
segment of the retail industry the company is situated in. Is the company a discounter?
Department store? Specialty retailer? The retail category to which the company belongs
also helps determine the following details about the company.1) Competitors2) Porter’s 5
Forces Analysis.
Competitors
The number and size of direct competitors is important. Ideally, you want the
company to have as little competition as possible, but this rarely happens. Determine who
the direct competitors are and how they are all positioned in the market. A smaller
regional discount store might find it tough to compete with new Wal-Mart stores opening
up every month. Take a look at the big picture, find out what differentiates the company
from its competitors. Do they have better prices, service, or offer higher quality goods
than their competition? Grocery stores might find it hard to differentiate themselves from
competitors: after all, an apple is an apple. Higher-end retailers, however, may have an
easier time as they try to compete on service or quality.

 Size of the Market - Determining the overall size of the market gives us an indication of
the potential for the market. If you had the choice between a company with a 25% share
of a $10 million market or a 25% share of a $1 billion market, which one would you
chose?
Other Factors
Some analysts even go as far as evaluating the retail strategy that the companies
use. For example, does the company have a fresh look? Are their stores clean, bright and
fun to shop in? Swedish retailer Ikea has done an excellent job of designing their stores
for visual appeal, and quite possibly it has equated to very strong sales. Also, what are the
store demographics? Does the retailer appeal more to younger people (who don't have the
money), or does it appeal to the parents (who do have the money).The performance of the
 economy as a whole obviously has a great impact on the retailing industry. Retailer
profits have a close correlation with the overall performance of the economy.
Looking at the trends for Growth  Gross domestic
product (GDP), inflation, consumer confidence, personal income and interest rates are
extremely important when thinking about investing in the retail industry. You might not
think that your shopping habits are sensitive to interest rate fluctuations, but they are.
While a 50-basis-point drop in interest rates might not give you the sudden inkling to go
drop $1,000 at Macy's, for the economy as a whole, it has a big effect on spending
patterns. (For more insight on this effect.

After looking at the macroeconomic factors and the industry as a whole, it is time to
delve into the financial statements. The biggest problem for analysing these companies is the
lack of consistency between accounting procedures. It takes a careful eye when comparing
performance ratios and figures from one company to the next. For example, some companies
tend to include shipping and storage in their cost of goods sold, while others list it as a separate
expense. This is why you must read all the notes to the financial statements and gain a better
understanding of what is and isn't included in the various figures

Aside from earnings and revenue growth, one important thing to look at is the MARKUP
percentage for the retailer. This is also known as the gross profit margin (sales minus cost of
goods sold). Unfortunately, there is not one margin that every retailer should use: discount stores
generally have lower margins compared to other general merchandisers. When comparing these
numbers, higher margins are usually better because it means the company has more room to
work with during price wars, intensified competition or when demand slows.
Inventory is also a key figure to pay close attention to as without it; retailers don't have anything
to sell. A company's inventory situation depends on what type of products it offers. For example,
the inventory turnover for a grocery store (with perishable goods) will be higher than that of a
department store. Compare the turnover rates of direct competitors: those with higher rates tend
to have fresh new products that sell more frequently. Keep in mind that an increase in inventory
is not always a cause for alarm. Sometimes inventory will increase as a result of new stores
opening or the expansion of existing stores. Therefore, compare the increase in inventory to the
growth of new stores to see if there is more to the story.
RETAIL SECTORS IN INDIA

The word 'retail' is derived from the French word 'retailer' meaning 'to cut a piece off' or
'to break bulk'. In simple terms it involves activities whereby product or services are sold to final
consumers in small quantities.

Although retailing in its various formats has been around our country for many decades,
it has been confined for a long time to family owned corner shops.

Englishmen are great soccer enthusiasts, and they strongly think that one should never
give Indians a corner. It stems from the belief that, if you give an Indian a corner he would end
up setting a shop. That is how great Indians retail management skill is considered.

The Facts

Retailing in more developed countries is big business and better organised that what it is
in India. Report published by McKinsey & Co. in partnership with Confederation of Indian
Industry (CII) states that the global retail business is worth a staggering US $ 7 trillion. The ratio
of organised retailing to unorganized in US is around 80 to 20, in Europe it is 70 to 30, while in
Asia it comes to around 20 to 80.

In India the scenario is quiet unique, organised retailing accounts for a mere 5% of the
total retail sector. Although there are around 5 million retail stores in India, 90% of these have a
floor space area of 500 sq. ft. or less. The emergence of organised retailing in India is a recent
phenomenon and is concentrated in the top 20 urban towns and cities.

The Reason

This emergence of organised retailing has been due to the demographic and
psychographic changes taking place in the life of urban consumers.

Growing number of nuclear families, working women, greater work pressure, changing values
and Lifestyles, increased commuting time, influence of western way of life etc. have meant that
the needs and wants of consumers have shifted from just being Cost and Relationship driven to
Brand and Experience driven, while the Value element still dominating the buying decisions.

Also, with the liberalization of Indian Economy in the early 1990's the employment and income
from the service sector has led to the burgeoning of the so called 'Middle Class Consumers'. The
lifestyle and purchasing power of this segment has fuelled the growth of organised retailing.

The BIG Boys

The level of interest shown by major corporate sector has increased manifold over the last
few years. Large conglomerates like the ADITYA BIRLA TATA, ITC, the RPG group, the
Piramals and the Rahejas have invested Heavly into large format retail stores.  Organised
retailing for some of these business groups is a logical extension of their businesses. For example
Real Estate Major Rahejas have successfully exploited their expertise in selection and execution
of retail establishment in prominent places around metros in the country. While the ownership
remains with them, the day-today running is left to the hands of experts.

Also textile and garments companies like Raymond, Madura Garments and Arvind
Denims have successfully employed forward integration by opening up exclusive outlets for their
branded garments. This reduces their dependence on intermediaries, increases the profit margin
and allows them to remain close to their customers.

Apart from apparel brands, Consumer durables, FMCG products and Sports brands have
also spurred the growth of retails outlets.  In fact, so much is the promise of this sector that old
Economy major like Reliance, BPCL and others want to join the band wagon to cash in on their
reach and retail space availability.

Organised retailing in India initially began in south The availability of land at prime
locations coupled with lower real estate prices enabled the construction of multi-storeyed
shopping complexes. The growth of retailing in an expensive real estate places like Mumbai and
Delhi was due to the recession in the real estate sector during the mid-nineties. It was during
these times that big business houses like Piramals and Rahejas took notice of the potential in
organised retailing.

The Design

Another interesting aspect of Indian Organised retailing market is the evolution of

various formats over a period of time. The traditional grocers by introducing self-service formats
and value added services like Home Delivery and Monthly Credit have tried to differentiate
them.

In the late nineties the departmental stores dominated the retail scene; today it's the large
formats of hyper markets and Mega Malls which have conquered the largest retail space in the
country.

Although some formats have been successful and others busted, still there is no
consensus among experts as to what would work where. Each formats has its won merits and
demerits, and careful location and assortment planning, accurate consumer insight with efficient
supply chain management will remain the corner stones of any format.

Building the Store Brand

The two major areas where the Retail Store managers face a marketing challenge is one –
to create footfalls, and secondly – to convert footfalls into sales.
 Promotional efforts like Advertising and Sales promotions would help in creating
footfalls, but in the longer term it's the positioning and consumer proposition which would build
the stores brand. Once the brand is build, loyalty can be sustained through Direct Marketing or
CRM programs.

The store brand would convey the value proposition in terms of what it offers and what it
stands for.

For example:

Pantaloons and Central offers "All lifestyle products under one roof" and it stands for
"Feel the Experience While you shop" attribute.

Similarly Pantaloons and Big Bazaar offers "All household products at one place" and it stands
for "The best bargain in town" attribute.

Also RPG's specialty store called Health & Glow offers "Health and Beauty treatment products"
and it stands for "Quality products with expert advice".

The Technology

Increased competition has led to tighter margins and greater pressure on profits for retail
store owners. Operating expenses like rentals, salaries, maintenance, electricity etc. have steadily
risen as gross margins have declined. Because of the low-margin nature of most retail businesses
retailers will have to focus on operational efficiency in order to create competitive
differentiation.

"India is a big country where preferences change with every 25kms and customer loyalty
with every 5 rupees. Hence retails outfits needs technology and systems which can manage and
interpret these dynamics, and thereby help the management to take real time decisions" said one
of the pioneers of Organised Retailing in India, Mr. Kishore Biyani of Pantaloons.
 One of the major technological innovations in organised retailing have been the
introduction of Bar Codes, it provides real time information of products sold, which in turn helps
online inventory management and also allows the manufacturer to organise production planning
and distribution management.

Organisations like A C Neilson have come up with Decision Support Services Systems
which help in sophisticated multi-dimensional reporting, data navigation, analytical modelling,
graphical presentations and expert system tools. Also issues like shoplifting have been address to
with introduction of sensors and tags.

The Macro Benefit

The contribution of a well-developed retail industry, to its economy, could be manifold;

firstly it will help in releasing for productive usage large area of lands lying ideal in prime
location with governmental and non-governmental agencies. Secondly, if we look at any major
tourists' city in the world it has a well-developed shopping environment; hence it is obvious that
organised retailing would help significantly in promoting our cities as tourist destinations.

HISTORY OF RETAIL SECTORS IN INDIA

INDIAN RETAIL A GLANCE ON 2010

The origins for retail business in India can be traced with the emergence of Kirana stores
and mom-and-pop stores. These stores used to cater to the local people. Gradually the
government started supporting the rural retail and many indigenous franchise stores came up
with the help of Khadi & Village Industries Commission. The economy began to open up in the
1980's resulting in the change of retailing. The first few companies to come up with retail chains
were in textile sector, for example, Bombay Dyeing, S Kumar's, Raymonds, etc. Later Titan
launched retail showrooms in the organized retail sector.

Today India is the fifth largest in the world in terms of Retail Industry. Comprising of
organized and unorganized sectors, Indian retail industry is one of the fastest growing industries,
especially over the last few years. Though initially, the retail industry in India was mostly
unorganized, 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 is expected
to grow from Rs. 35,000 crore in 2004-05 to Rs. 109,000 crore shortly. 

Indian Retail Industry is the most promising emerging market for investment According
to the 8th Annual Global Retail Development Index (GRDI) of AT Kearney, the retail trade in
India had a share of 8-10% in the GDP (Gross Domestic Product) of the country in the year
2007.

The Indian Retail Industry is expected to grow to US$ 700 billion in the year 2010
according to a report by North bride Capital. In the same year the organized sector will be 20%
of the total market share as compared to the share of organized sector in 2007 was 7.5%.

Retail is India's largest industry and for over 10% of the India's GDP and around 8% of
the employment. Retail sector is one of India's fastest growing sectors with a 5% compounded
annual growth rate. As India has a huge middle class base and its untapped retail industry are key
attractions for global retail giants planning to enter newer markets. Due to the changing
lifestyles, strong income growth in the middle class population and favorable demographic
patterns, Indian retail is expected to grow 25% annually and expected that retail business in India
could be worth US$ 175-200 billion by 2016.

 BRIEF INTRODUCTION

The Indian Retail Industry has come forth as one of the most dynamic and fast paced
industries with several players entering the market. Today due to Retail business the total
concept and idea of shopping has undergone an attention drawing change in terms of format and
consumer buying behaviour, ushering in a revolution in shopping in the country. 
Modern retailing has entered into the country and as is observed in the form of bustling
shopping centres, multi-storied malls and the huge complexes that offer shopping, entertainment
and food all under one roof. A large young working population with median age of 24 years,
nuclear families in urban areas, along with increasing working women population and emerging
opportunities in the services sector are the key factors.
 The growth pattern in organized retailing and in the consumption made by the Indian
population will follow a rising graph helping the newer businessmen to enter the India Retail
Industry. 
The Food Retail Industry in India dominates the shopping basket. The Mobile phone
Retail Industry in India is already a US$ 16.7 billion business, growing at over 20 %per year.
The future of the India Retail Industry looks promising with the growing of the market, with the
government policies becoming more favourable and the emerging technologies facilitating
operations.

MARKET CAPITALISATION

Size of the industry 

In the next few years the organised Retail Sector in India is expected to triple its size.
The food and grocery retail sector is expected to multiply five times in the same time frame. The
market size of Indian retail industry is about US $312 billion. The organised retailing comprises
only 2.8% of the total retailing market and is estimated at around US$ 8.7 billion and the
organised retail sector is expected to grow to US $ 70 billion. 
In the present scenario, 51% Foreign Direct Investment is permitted in India only
through single brand retailing and FDI up to 100% allowed under the automatic route for cash
and carry wholesale.

Total contribution to the economy/ sales 

 In 2010 the retail trade accounts for 12 % of the
country's GDP and is expected to approach 22%
according to Indian Brand Equity Foundation. Another
analysis according to the Mc kinsery. The rise of Indian
Consumer Market', foresees the Indian consumer market
growing by four times by the year 2025, the Indian
Retail industry is worth $300 billion in terms of value.
The industry's contribution to the Gross Domestic
Product is about 10%, the highest compared to all other
Indian Industries.

 TOP LEADING COMPANIES

1 Pantaloons

Pantaloons is the most popular and biggest retailers in India with more than 759
stores across the country. Headquartered in Mumbai, it has more than 5 million sq. ft.
retail space located across the country. It has the following retail segments:

2 Tata Group

Tata group established in 1998 is another major player in Indian retail industry
with its subsidiary Trent, which operates Westside and Star India Bazaar. The group also
has acquired the largest book and music retailer in India 'Landmark' in 2005. Trent owns
over 4 lakh sq. ft. retail space across the country.

3 RPG Group
 RPG Group is one of the earlier entrants which were started in the year 1996 in
the Indian retail market, with the food & grocery retailing. Later it also opened the
pharmacy and beauty care outlets 'Health & Glow'.

4 Reliance

Reliance is one of the biggest gaint players in Indian retail industry. More than
300 Reliance Fresh stores and Reliance Mart are quite popular in the
Indian retail market. It is expected that in the year 2010 its sales would reach to Rs.
90,000 crores.

 EMPLOYEMENT OPPURTUNITIES
The retail sector has also contributed to 8% of the employment in the country.
Indian Retail Industry would generate employment for more than 2.5 million people,
predicts an analysis by Ma Foi Management Consultants Ltd. Today the modern
retail/retail services sector has the potential of creating over 2 million new (direct) jobs
within the next 6 years in the country (assuming only 8-10% share of organized
retailing), according to various analysts. Retail can create as many new jobs as the
BPO/ITES sector in India. A strong retail front-end can also provide the necessary fillip
to agriculture & food processing, handicrafts, and small & medium manufacturing
enterprises, creating millions of new jobs indirectly. Through its strong linkages with
sectors like tourism and hospitality, retail has the potential of creating jobs in these
sectors also.

 Latest developments 

1 The BMI India Retail Report analysis for the third-quarter of 2010, forecasts that the total
retail sales will grow from US$ 353 billion in 2010 to US$ 543.2 billion by 2014. With
the expanding and developing middle and upper class consumer base, there will also be
opportunities in India's tier II and III cities. Their would be greater availability of
personal credit and a growing vehicle population to improve mobility also contribute to a
 trend towards annual retail sales growth of 11.4%. Further analysts predict that sales
through MGR outlets will increase by 154% to reach US$ 15.29 billion by 2014.
2 India today continues to be among the most attractive countries for global retailers.
Foreign direct investment (FDI) inflows between April 2000 and 2010, according to the
Department of Industrial Policy and Promotion in single-brand retail trading, stood at
US$ 194.69 million.
3 In 2010 China and India are predicted to account for almost 91% of regional retail sales
and in the year 2014 their share of the regional market is expected to be more than 92%.
4 Worldwide Partner Inc. are the Ninth largest global network of more than 90 marketing
and communication agencies in about 50 countries which has recently tied up with Indian
Pressman Advertising and Marketing Ltd following repeated enquires about India.
5 The retail industry in India is currently growing at a great pace and is expected to go up
to US$ 833 billion by the year 2013. It is further expected to reach US$ 1.3 trillion by the
year 2018 at a CAGR of 10%. As the country has got a high growth rates, the consumer
spending has also gone up and is also expected to go up further in the future.
6 In the last four year, the consumer spending in India climbed up to 75%. As a result, the
India retail industry is expected to grow further in the future days. By the year 2013, the
organized sector is also expected to grow at a CAGR of 40%.

INDIAN RETAIL AT GLANCE ON 2011-2012

The foreign direct investment (FDI) inflows in single-brand retail trading during
April 2000 to March 2012 stood at US$ 44.45 million, according to the latest data
released by Department of Industrial Policy and Promotion (DIPP) of India.
The direct consumer payment retail industry is worth around Rs 8,250 billion
(US$ 148.49 billion) of the Rs 27,500 billion (US$ 494.96 billion) annual retail business
in India. 
The domestic pharmaceutical retail reached a new milestone by recording an
overall sales of Rs 60,000 crore (US$ 10.80 billion) for the year 2011. 
 India's e-retail industry is likely to touch the Rs.7000crore mark (US$ 1.26 billion) by
2015, up from Rs.2000crore (US$ 359.97 million) currently. 
Online purchase of gift items, especially jewellery and flowers have increased manifold
owing to the sprouting of many online e-markets and supporting banks.
The estimated Rs.50000 crore (US$ 8.99 billion) e-commerce business is growing at an
overall 40 per cent.

Indian Retail
Market Reach in 2011 and Notes
Group

Pantaloons Retail 65 stores and 21 factory outlets in 35 cities, 2 million square feet space

Shoppers Stop 51 stores in 23 cities, 3.2 million square feet space

Spencer’s Retail 200 stores in 45 cities, 1 million square feet space

708 mart and supermarkets, 20 wholesale stores in 15 cities, 508 fashion

Reliance Retail and lifestyle
₹1206 crore (US$180 million) per month sales in 2013.

Bharti Retail 74 Easy day stores, plans to add 10 million square feet by 2017
Birla More 575 stores nationwide

Tata Trent 59 Westside mall stores, 13 hypermarkets

Lifestyle Retail 15 lifestyle stores, 8 home centres

193 stores in 3 cities, one of three largest supermarkets retailer in India

Future Group by sales
₹916 crore (US$130 million) per month sales in 2013.

INDIAN RETAIL AT THE GLANCE ON 2012-2013

In India, the retail industry is vastly unorganised with the organized sector coming
to the fore in recent times only. For the year 2012, the organised retail accounts for 7 per
cent of India's US$ 435 billion retail market and is expected to reach 20 per cent by
2020. 

Of this food accounts for 70 per cent of Indian retail business, but it is mostly the
unorganized area. Organised retail has a 31 per cent share in clothing and apparel .
The total retail sales in India will grow from US$ 395.9 billion in 2011 to US$
785.1 billion by 2015, according to the BMI India Retail report for the third quarter of
2011. The annual retail sales growth of 12.2 per cent was achieved in year 2012.
INDIAN RETAIL INDUSTRY AT A GLANCE ON 2013-14
The Indian retail industry, which comprises of both the organized and unorganized sector,
is currently estimated at about US$ 490 billion. Favourable demographics, increasing
urbanization, nuclear families, increased purchasing power of consumers, preference for branded
products and improved lifestyles are some factors which are driving the Indian Retail Industry.
India's retail industry is expected to touch Rs 47 trillion (US$ 782.23 billion) by 2016-17,
expanding at a compounded annual growth rate (CAGR) of 15 per cent,
according to the study, the total organized retail supply in 2013 stood at approximately 4.7
million square feet (sq. ft.), witnessing a strong year-on-year growth of about 78 per cent over
the total mall supply of 2.5 million sq. ft. in 2012. The foreign direct investment (FDI) inflows in
single-brand retail trading during the period April 2000-January 2014 stood at US$ 98.66
million, as per data released by Department of Industrial Policy and Promotion (DIPP). 
India's online retail industry has grown at a swift pace in the last five years from around
Rs 15 billion (US$ 249.64 million) revenues in 2007-08 to Rs 139 billion (US$ 2.31 billion) in
2012-13, resulting into a CAGR of over 56 per cent. The online retail business in India is
expected to grow at a whopping 50-55 per cent annually to become a Rs 50,000 crore (US$ 8.32
billion) business in the next three years. The Government of India has allowed 51 per cent FDI in
Multi-Brand Retail Trading (MBRT) and 100 per cent in Single-Brand Retail Trading (SBRT).
Hence in the coming years, retail industry is expected to grow 50-60 per cent annually in tier II
and tier III cities, compared to only around 30 per cent in the metros.
INDIAN RETAIL AT A GLANCE ON 2014-2015
The Indian retail industry is one of the fastest growing markets in the world due to
economic growth. India's retail market is expected to double to US$ 1 trillion by 2020
from US$ 600 billion in 2015.The overall retail market will grow at 12 per cent per
annum according to industry experts. The retail spending in the top seven Indian cities of
India currently amounts to Rs.3.58 trillion (US$ 57.56 billion).India is expected to
become the world's fastest growing e-commerce market with the rapid increase in internet
users. 
It is expected that India's e-commerce market will grow from US$ 2.9 billion in
2013 to over US$ 100 billion by 2020. A projection of 200 million new consumers by
2017 has been forecast. The Indian retail industry has received foreign direct investment
(FDI) equity inflows to the tune of US$ 275.38 million in the period April 2000-January
2015, according to the Department of Industrial Policies and Promotion (DIPP). 
Retail industry in India is expected to grow to US$ 950 billion by 2018,
registering a compound annual growth rate (CAGR) of 8.9 per cent during 2000-18. The
 online retail market is expected to grow from US$ 3.1 billion to US$ 22 billion during
FY13-FY18.India is the fifth largest preferred retail destination globally. India's price
competitiveness attracts large retail players to use it as a sourcing base. India had the
highest number of retail outlets in the world at over 13 million retail outlets in 2014. It
also has the highest number of outlets (11,903) per million inhabitants.
INDIAN RETAIL AT GLANCE ON 2016-17
The Indian domestic online fashion market is estimated to reach $12-$14bn level by
2020, according to new report. While online fashion shoppers will more double to touch the 130
million mark, fashion e-commerce will constitute 11-12 percentage of the total domestic fashion
market, a joint study by the global Boston Consulting Group BCG and social media giant
Facebook said.
Currently 55 million consumers are buying fashion products online. While fashion
market in India is currently estimated at $70 billion, where online contributes five percent at
around $4 billion - $30 bn of this market will be digitally influenced by 2020.
RETAILERS ASSOCIATION IN INDIA (RAI)
RAI is serving as the unified voice of Indian retailers. RAI is a not for profit
organization, which works with all the stakeholders for creating the right environment for
the growth of the modern retail industry in India. RAI is the body that has been
encouraging and developing the facilities and supports retailers to become modern and
adopt best practices that will delight customers. RAI has a three charter aim for Retail
Development, Facilitation and Propagation. 

Retailers Association of India (RAI) always strives to follow the best practices to
the retail industry and it's stakeholders. RAI's efforts has been centred around advocacy
and government representations, bringing best practices to the industry, fostering retail
learning and training, creating a reservoir of information through retail research,
disseminating communication through magazines, newsletter, website, etc., for the
 benefit of it' s members and the industry

Vision
To develop, facilitate and propagate practices that will help grow the Indian retail
industry, leading to increased consumption and growth of the economy.
RAI Mission
5 To establish the growth of modern retail in India.
6 To support retailers by providing the required knowledge and information.
7 To lobby and liaise with the whole of the government for easier establishment and
operations of retailing in India.
8 To educate and train retailers mainly to adopt modern retail practices in India.
9 To work for customer delight by helping retailers create the right retail environment.
10 To encourage adoption of the right values, transparency and code of conduct by retailers.
Core Membership of RAI is applicable only to the organized retailers across
sectors. The role of the Core Members is principally to form the major membership body
of RAI looking for opportunities to imbibe best practices, by benefitting from
membership experiences and learning and following the guidelines of RAI. 

Eligibility Criteria

1 The Retailer should issue a bill for every transaction.

2 The Retailer should be registered under VAT/Service tax.
3 The Retailer should not be employing child labour.
4 More than 50% of the Organisation's business or 100Crore whichever is less should be
from retail activities.

Member Benefits

1 Be a part of the representations which is made to Central and State Governments on

critical issues.
2 Attend all activities / seminars / training programs of RAI at members discounted rates or
complimentary (select events).
 3 Have access to RAI's infrastructure facilities in Mumbai for meetings, training activities,
etc.
4 Make use of RAI's library and resource facilities in Mumbai and other cities where such
facilities are created by RAI.
5 Receive complimentary copies mainly of the select publications / newsletter.
6 Purchase RAI's publications/research reports at discounted rates.
7 Have access to exclusive member only section on RAI website.
8 Receive survey and findings, trade info, legislation updates, etc.

FRANCHAISINF ASSOCIATION OF INDIA

It is an industry association which has a turnover of $4 billion. The franchise

sector is growing at a rate of 25-30% annually in India, representing franchisees,
franchisors.

Objectives

1 It was formed in the year 2001 which is a not-for-profit industry association, with the
following objectives
2 To establish standards of international practices in business format franchising for Indian
franchise systems.
3 To provide information and even the education about franchising to existing and potential
franchisees and franchisors.
4 To educate state and central government on issues relevant to the sector.
Since the year 2001, these objectives have been further expanded to include the following:

1 To develop a vital, strong and financially viable franchising sector;

2 To advance the interests of members in India and in special interest markets such as the
international franchise community;
3 To continually foster among consumers, governments and the business community, a
broad-based understanding of the economic importance of having a strong franchising
sector in India.
4 To design efficient, identified value-added services to members and assist them to be
more effective in franchising.
5 To provide opportunities to members for showcasing their expertise and business
opportunity through officially supported franchising events.
6 To provide information to its members on developments in the sector(s) through its
publication and newsletters.

As the peak body for franchising, the FAI continues to add value to the businesses
of its members by providing a range of services relevant to franchising and which
represent good value. The FAI recognizes that its members have different needs, and that
different types of members should co-exist harmoniously. The success of franchising
depends on successful franchisors, and this in turn, depends on profitable and happy
franchisees. The Franchising Association of India works constantly to ensure that all
activities and services which benefit franchising will benefit the broader community
including franchisees, franchisors, employers.

The world is changing all around us. To continue to thrive as an association over
the next ten years and beyond, we must look ahead, understand the trends and forces that
will shape our performance in the future and move swiftly to prepare for what's to come.
In short, for tomorrow we must get ready today. That's what this Vision is all about. It
creates a long-term destination for the franchising business and provides with a roadmap
for winning together with its members and partners. Besides, FAI's long-term vision
includes becoming one of the top global Associations by leveraging its expertise in the
higher growth emerging markets.

Its Roadmap starts with its mission, which is enduring. It declares its purpose as
 an association and serves as the standard against which to weigh its actions and decisions.
Exchange and safeguard the business environment for franchising, both with regard to
franchisors and franchisees, to act as the resource centre for current and prospective
franchisors, franchisees, the media and the Government. Disseminate knowledge to
promote the concept of 'franchising' and propagate it as a healthy business practice.
Establish a forum for discussion and deliberation on Franchising related matters and
problems and help promote the interest of members by organizing seminars, Conferences
and meetings.

Membership
Membership of the Franchising Association of India is voluntary, and is open to
any organization or individual involved in the franchise sector, including franchisees,
franchisors, lawyers, accountants, banks, consultants, academics and publishers.
Structure
The FAI is a nationally incorporated not-for-profit association with its head office
in Mumbai and regional office in New Delhi. FAI has formed various committees for
increased participation of the members in developing the franchising industry and
respective sectors. FAI is a member of the World Franchise Council and is affiliated with
franchising associations around the world. The Franchising Association of India (FAI) is
an industry association formed about a decade ago, committed to strengthening and
promoting the best practices in franchising. Providing educational programs, FAI also
offers marketing services and networking opportunities that bring together the top
creative thinkers and franchise veterans to talk about the most important issues affecting
franchising.
FAI is a member of World Franchise Council and associated with franchising
associations of other countries. FAI members are franchisors, franchisees, vendors,
consultants, financial institutions and entrepreneurs formed with objectives of acting as
the resource centre for current and prospective franchisors, franchisees, the media and the
Government. Through the hard work and dedication of its team of volunteers, FAI
organizes and produces several product lines committed to providing information about
 franchising. The seminar series features annual events that attract potential franchisees
trying to learn about buying a franchise, franchisors looking for advice on how to
improve their business and entrepreneurs interested in franchising their business.
FAI is the best place for professionals to meet their counterparts in other franchise
systems and business people offering services in their field. By joining the association,
member franchises and service providers get their name out in the community and
particulars for new franchise systems and helps build a reputation among their peers. FAI
provides opportunities for these businesses to seek complementary business associates to
form strategic alliances. The association provides members opportunities to showcase
their expertise through officially supported FAI events. By providing these opportunities
to members, the association is fulfilling an important mandate to promote the benefits of
franchising to the public by creating forums for the most highly regarded professionals
and experts in the industry.

Retail industry can be broadly classified into two categories namely-

1 Organised retail
2 Unorganised retail

ORGANISED RETAIL SECTORS IN INDIA

Organised retailing, in India, refers to trading activities undertaken by licensed
retailers, that is, those who are registered for sales tax, income tax, etc. These include the
publicly traded supermarkets, corporate-backed hypermarkets and retail chains, and also
the privately owned large retail businesses.

Organised retailing was absent in most rural and small towns of India in 2010.
Supermarkets and similar organised retail accounted for just 4% of the market.

Most Indian shopping happens in open markets or numerous small grocery and retail
shops. Shoppers typically wait outside the shop, ask for what they want, and cannot pick or
examine a product from the shelf. Access to the shelf or product storage area is limited. Once the
shopper requests the food staple or household product they are looking for, the shopkeeper goes
to the container or shelf or to the back of the store, brings it out and offers it for sale to the
shopper. Often the shopkeeper may substitute the product, claiming that it is similar or
equivalent to the product the consumer is asking for. The product typically has no price label in
these small retail shops; all packaged products must display the maximum retail price above
which the product cannot be sold. It is a criminal offence to do so. . The shopkeeper can price the
food staple and household products arbitrarily, and two consumers may pay different prices for
the same product on the same day but never will those price be above the maximum retail price.
Price is rarely negotiated between the shopper and shopkeeper. The shoppers usually do not have
time to examine the product label, and do not have a choice to make an informed decision
between competitive products.

Organized retailing comprises mainly of modern retailing with busy shopping malls,
multi stored malls and huge complexes that offer a large variety of products in terms of quality,
value for money and makes shopping a memorable experience. The retail sector is presently
undergoing a transition in India. Previously, customers used to go to kirana Stores to purchases
their necessities. This later changed to bigger shops run by one man with a few employees. Here
all the work was done manually. Gradually more sophistication seeped into this sector and
department stores came into being. Beginning in the mid- 1990s, however, there was an
explosion of shopping malls and plazas where customers interacted with professional and not
with just one single person – the owner. An important point here is that customers’ requirements
are catered to by trained staff. Today, organized retailing has become an experience
characterized by comfort, style and speed. It is something that offers a customer more control,
convenience and choice along with an experience. Organized retailing is on continuous increase
of its market share from the past. Retailing can be categorized as of different sectors like food
and grocery, clothing and textiles, consumer durables, footwear, furniture and furnishing,
catering services, jewellery and watches, books, music and gifts, mobile handsets and others.

India's retail and logistics industry, organised and unorganised in combination, employs
about 40 million Indians (3.3% of Indian population).The typical Indian retail shops are very
small. Over 14 million outlets operate in the country and only 4% of them being larger than
500 sq. ft. (46 m2) in size. India has about 11 shop outlets for every 1000 people. Vast majority
of the unorganised retail shops in India employ family members, do not have the scale to procure
or transport products at high volume wholesale level, have limited to no quality control or fake-
versus-authentic product screening technology and have no training on safe and hygienic storage,
packaging or logistics. The unorganised retail shops source their products from a chain of
middlemen who mark up the product as it moves from farmer or producer to the consumer. The
unorganised retail shops typically offer no after-sales support or service. Finally, most
transactions at unorganised retail shops are done with cash, with all sales being final.

Until the 1990s, regulations prevented innovation and entrepreneurship in Indian

retailing. Some retails faced complying with over thirty regulations such as "signboard licenses"
and "anti-hoarding measures" before they could open doors. There are taxes for moving goods to
states, from states, and even within states in some cases. Farmers and producers had to go
through middlemen monopolies. The logistics and infrastructure was very poor, with losses
exceeding 30 per cent.

Through the 1991s, India introduced widespread free market reforms, including some
related to retail. Between 2000 to 2010, consumers in select Indian cities have gradually begun to
experience the quality, choice, convenience and benefits of organised retail industry.

Objectives

Growth of middle class consumers

1 Increase in the number of working women
2 Value for money
3 Emerging rural market
4 Entry of corporate sector
5 Entry of foreign retailers
6 Technological impact
7 Rise in income
8 Media explosion
Opportunities

Organized retail provides brands much needed visibility and platform for customer
interaction. It also helps in launching of new product or product variant and in market
penetration. It has wider product range and more frequent, speedier deliveries.
Increased urbanization has shifted consumers to one place and thus a single retail can
catch more customers.
As the time passed away joint families came in a new form i.e. nuclear family. Again the
income level of these nuclear families increases because both members started earning. This
results into increased power of purchase and lack of time.
Increased use of credit cards is in favour of retail marketing. It creates requirement even
when it is not necessary.
Organized retail stores put stress on proper infrastructure like well-maintained building,
air conditioning, trained employees, electronic machine, parking facilities and proper display of
goods category wise.
Purchasing becomes joy for him. Self-selection saves time and gives more opportunities
and satisfaction. Fix cost removes the threat of misleading. They avail various discounts and
promotional schemes presented by the manufacturers.
Retail marketing is one of the largest employments generating industry. It provides
employment to skilled, semi-skilled as well as to unskilled persons. Thus it helps in the socio-
economic development of the society.
Increase in the no of retail outlets increases competition among these retailers. To attract
customers they give various promotional schemes as various discounts, buy one get one free,
another product with any particular product, festival special, etc
The retail marketers directly purchase from farmers and reducing middlemen, thus
provide proper cost to farmers and also set proper price for consumers. They also make contract
with farmers to get proper amount of crops and vegetables
The big players of retail marketing and the manufacturing companies directly come in
contact thus reducing many intermediary chains. Manufacturers also give many promotional
schemes for their product that is beneficial

Challenges which are faced by the Indian organized retail sector

1 Shortage of skilled manpower

2 Lack of industry
 3 Policy induced barriers –

4 Real estate

UNORGANISED RETAIL SECTORS IN INDIA

India started its Retail Journey since ancient time. In ancient India there was a concept of
weekly HAAT, where all the buyers & sellers gather in a big market for bartering. It takes a
pretty long times to & step to shape the modern retail. In between these two concepts (i.e.
between ancient retail concept & the modern one there exist modern kirana/mom and pop shops
or Baniya ki Dukan. Still it is predominating in India, so the Indian retail industry is divided into
two sectors- organized and unorganized. Retailing is one of the pillars of Indian economy and
accounts for 14 to 15 per cent of its GDP. The Indian retail market is estimated to be US$ 450
billion and one of the top five retail markets in the world by economic value. India is one of the
fastest growing retail markets in the world, with 1.2 billion people. India's retailing industry is
essentially owner manned small shops. In 2010, larger format convenience stores and
supermarkets accounted for about 4 per cent of the industry, and these were present only in large
urban centres. India's retail and logistics industry employs about 40 million Indians (3.3% of
Indian population). The retail industry in India is highly fragmented and unorganized. Earlier on
retailing in India was mostly done through family-owned small stores with limited merchandise,
popularly known as kirana or mom-and-pop stores. In those times, food and grocery were
shopped from clusters of open kiosks and stalls called mandis. There were also occasional fairs
and festivals where people went to shop. In the twentieth century, infusion of western concepts
brought about changes in the structure of retailing. There were some traditional retail chains like
Nilgiri and Akbarallys that were set up on the lines of western retail concepts of supermarkets.
The government set up the public distribution system (PDS) outlets to sell subsidised food and
started the Khadi Gram Udyog to sell clothes made of cotton fabric. During this time, high
streets like Linking Road and Fashion Street emerged in Mumbai. Some manufacturers like
Bombay Dyeing started forward integrating to sell their own merchandise. Shopping centres or
complex came into existence, which was a primitive form of today’s mall.

Retailing in India is predominantly unorganized. According to a survey by AT Kearney,

an overwhelming proportion of the Rs. 400,000 crore retail markets are unorganized in India. In
fact, only a Rs. 20,000 crore segment of the market is organized. The sector is highly fragmented
with 97% of its business being run by the unorganized retailers like the traditional family run
stores and corner stores. The sector is the largest source of employment after agriculture, and has
deep penetration into rural India generating more than 10% of India’s GDP. Indian retail is
dominated by a large number of unorganized retailers consisting of the local kirana stores,
chemists, footwear shops, apparel shops, paan and beedi shops, hand-cart hawkers, pavement
vendors, etc. Retailing in unorganized sector is thus not a profit oriented vocation but a mere
source of livelihood. Naturally, the capital investment is very low and the infrastructure is
rudimentary. It is estimated that less than 4% of Indian retailers have shops larger than 500
square feet. There has been considerable This paper provides detailed information about the role
of unorganized retailing industry in India. It examines the why unorganized retail sector
dominating in India and what are the reasons for its dominance in India. It also provides with in
depth study about the importance, opportunities and challenges of unorganized retail sector with
comparison to organized retail sector in India. Finally concludes with the mark of Indian
consumers’ change of attitude towards organized retail sector. growth in organized retailing
business in recent years Concerns have been raised that the growth of organized retailing may
have an adverse impact on retailers in the unorganized sector. Unorganized retail sector it is
defined as an outlet run locally by the owner or caretaker of a shop that lacks technical and
accounting standardization. The supply chain and sourcing are also done locally to meet the local
needs. Unorganised retailing, refers to the traditional formats of low-cost retailing, for example,
the local Kirana shops, owner manned general stores, paan/beedi shops, convenience stores, hand
cart and pavement vendors, etc. The Indian retail sector is highly fragmented with 97 per cent of
its business being run by the unorganized retailers. The organized retail however is at a very
nascent stage. The sector is the largest source of employment after agriculture, and has deep
penetration into rural India generating more than 10 per cent of INDIA’s GDP.

In India, the most of the retail sector is unorganized. In India, the retail business
contributes around 11 per cent of GDP. Of this, the organized retail sector accounts only for
about 3 per cent share, and the remaining share is contributed by the unorganized sector which is
mostly a family owned business in India. The main challenge facing the organized sector is the
competition from unorganized sector. Unorganized retailing has been there in India for centuries,
these are named as mom-pop stores. The main advantage in unorganized retailing is consumer
familiarity that runs from generation to generation. It is a low cost structure; they are mostly
operated by owners, has very low real estate and Labour costs and has low taxes to pay.

Most of the earlier studies were related to the analysis of impact of unorganized retail
sector and comparison between organized retail sector and unorganized retail sector in India.
Hence based on the research gap, the present study attempts to understand importance of
unorganized retail sector and their reasons of existence also with opportunities and challenges in
India.

Objectives

1 To develop a scale measuring Shopping Experience

2 To know the impact of various factors of shopping experience
3 To study the challenges arising in the unorganized retail sector.
4 To study the different formats of retailing.

Opportunities
India’s booming economy is a major source of opportunity. It is the third largest
in the world in terms of purchasing power. India is the second fastest growing major
economy in the world.
India's huge population has a per capita income of Rs 44,345.
The proportionate increase in spending with earnings is another source of
opportunity.
With the Indian economy now expected to grow at over 8% and with average
salary hikes of about 15%, manufacturers and retailers of consumer goods and services
can expect a major boost in consumption.
The Demography Dynamics are also favourable as approximately 60 per cent of
Indian population is below the age of 30.
Increasing instances of Double Incomes in most families coupled with the rise in
spending power.
Increased urbanization has led to higher customer density areas thus enabling
retailers to use lesser number of stores to target the same number of customers.
 Aggregation of demand that occurs due to urbanization helps a retailer in reaping the
economies of scale.
With increased automobile penetration and an overall improvement in the
transportation infrastructure, covering distances has become easier than before. Now a
customer can travel miles to reach a particular shop, if he or she sees value in shopping
from a particular location.

Challenges which are faced by the Indian unorganized retail sector:

7 Lack of best practice in inventory management and supply chain management.

8 Lack of standardization.
9 Stiff competition from organized retail sector.
10 Lack of knowledge, skills and training.
11 Consumers shifting towards organized retail markets.
12 Lack of government policies discouraging the unorganized retailers.
13 Lack of capital.
14 Others
 CHAPTER 3

THEORETICAL
FRAMEWORK
OF
COMPETITOR ANALYSIS

Customer satisfaction in marketing and strategic management is an assessment of the

strengths and weaknesses of current and potential competitors. This analysis provides both an
offensive and defensive strategic context to identify opportunities and threats. Profiling coalesces
all of the relevant sources of competitor analysis into one framework in the support of efficient
and effective strategy formulation, implementation, monitoring and adjustment.

Customer satisfaction is an essential component of corporate strategy. It is argued that

most firms do not conduct this type of analysis systematically enough. Instead, many enterprises
operate on what is called “informal impressions, conjectures, and intuition gained through the
titbits of information about competitors every manager continually receives.” As a result,
traditional environmental scanning places many firms at risk of dangerous competitive blind
spots due to a lack of robust competitor analysis.
CHARACTERISTICS OF COMPETITVE ANALYSIS

COMPETITIVE INTELLIGENCE STEPS - AN OVERVIEW

Discover more about performing competitive intelligence to achieve a business

advantage, about optimizing research ways of anticipate competitor direction, and about training
company staff members to withstand competitor espionage. Understand the distinctions between
strategic competitive intelligence, tactical competitive intelligence, and competitive counter
intelligence.

COMPETITIVE INTELLIGENCE
 As a business, you want to stay competitive. In order to do this, you need to constantly
analyse the existing market for any relevant changes. As a business owner, the information
you find and interpret is essential to your survival. In order for you to be successful, you need
to adapt to any changes in the market or else you could lose money. 

Competitive intelligence is a process designed to give you an edge over your direct
competitors and to minimize your risks while doing business. It is the process of gathering
information about the market and your competition and then analysing it to understand how it is
relevant to your business.

READING CASE STUDIES

 Before you implement the competitive intelligence strategy you may want to find some
case studies. These provide detailed reports on how different companies used the strategy to help
them become more competitive and achieve success.

IS IT WORTH IT? 

Are you still trying to decide if using competitive intelligence is worth the time and
money? There are a lot of benefits, but you still need to determine if you want to use some of
your resources.

HIRING PROFESSIONAL SERVICES

When it comes to competitive intelligence, you may not have the time or the resources to
go through the process yourself. In that case, you will want to outsource. There are plenty of
companies and individuals who specialize in competitive intelligence and can provide this
service for your company.
DEFINITION COMPETITIVE INTELLIGENCE
While there are many interpretations of the term "competitive intelligence," it is useful to
view it as defined by the Society of Competitive Intelligence Professionals (SCIP) in first place.

COMPETITIVE INTELLIGENCE TRAINING

You can also hire individual companies to perform competitive intelligence training. This
works especially well if you have a large group or a few full time employees whose sole purpose
is to do competitive intelligence. You can also go through the training if you are the main person
involved with the process, and then teach other relevant employees.

YOUR COMPANY

Your company’s success is important to you. So, you’d like to start using the competitive
intelligence technique. Remember, the basis behind this method is to gather the relevant
information about your market and to analyse it.
 One of the keys to the competitive intelligence procedure will be to learn what
information you really require. The target is to discover information about your market and about
your competitors that will provide you with a competitive edge.

GATHERING INFORMATION

The key to the competitive intelligence process is to understand what information you
truly need. The goal is to find information about your market and about your competition that
will give you a competitive edge.

LEGALITY OF GATHERING INFORMATION

Once you enter into the information gathering process of competitive intelligence, it is
important to note that all your methods for collecting data should be legal.

COMPETITIVE INTELLIGENCE VS. ESPIONAGE

 How can industrial or corporate espionage be compared to competitive intelligence?
Competitive Intelligence research can be distinguished from industrial espionage, as CI
practitioners in general abide by local legal guidelines and ethical business norms.

COLLECTING DATA - ACCURACY AND FOCUS

Remember that not all information you find on your competition will be accurate or
correct. That is what makes this probably one of the most difficult aspects of the whole process. 

GATHERING INFORMATION - BEGINNING STAGES

When gathering information about your competitors and the general market, a great place to start
is in your own files and resources to gather the information from beginning of.
First, check your business plan. It should contain a section on the market and your competition.
Copy the relevant sections and place them in a special “competitive intelligence” file.
WHO ARE YOUR COMPETITORS? 

In order to truly understand how your company fits into the market, you need to
understand which companies are your biggest competitors or who will be your biggest
competitors in the future.

NETWORKING ESSENTIALS

Chances are, you have an extensive contact list. Have you thought of using them to gather
competitive intelligence information? They are an invaluable source for information, including
market information and insights into your own company.
GATHERING INFORMATION
 One of the keys to the competitive intelligence procedure will be to learn what
information you really require. The target is to discover information about your market and about
your competitors that will provide you with a competitive edge.

The key to the competitive intelligence process is to understand what information you
truly need. The goal is to find information about your market and about your competition that
will give you a competitive edge.

LEGATILITY OF GATHERING GENERAL INFORMATION

Once you enter into the information gathering process of competitive intelligence, it is
important to note that all your methods for collecting data should be legal.

COMPETATIVE RESEARCH
 How can industrial or corporate espionage be compared to competitive intelligence?
Competitive Intelligence research can be distinguished from industrial espionage, as CI
practitioners in general abide by local legal guidelines and ethical business norms.

COLLECTING DATA - ACCURACY AND FOCUS

Remember that not all information you find on your competition will be accurate or
correct. That is what makes this probably one of the most difficult aspects of the whole process. 

GATHERING INFORMATION - BEGINNING STAGES

When gathering information about your competitors and the general market, a great place
to start is in your own files and resources.
First, check your business plan. It should contain a section on the market and your competition.
Copy the relevant sections and place them in a special “competitive intelligence” file.

WHO ARE YOUR COMPETITORS?

 In order to truly understand how your company fits into the market, you need to
understand which companies are your biggest competitors or who will be your biggest
competitors in the future.

NETWORKING ESSENTIALS

Chances are, you have an extensive contact list. Have you thought of using them to
gather competitive intelligence information? They are an invaluable source for information,
including market information and insights into your own company.

INDUSTRY TRENDS

Whether your industry changes often or is a little slower, industry trends need to be
monitored to make sure your company stays competitive.

ORGANIZE THE INFORMATION

 There are numerous different ways to organize every piece of information you collected
for competitive intelligence. The most effective strategy is one that is that will work with your
business and your individuality.

There are several different ways to organize all their information you compiled for
competitive intelligence. The best system is one that is compatible with your business and your
personality.

Your company needs to use the gathered information to help make important decisions.
Therefore, the date needs to be organized so that all relevant decision makers can access the
findings.

When you organize information electronically, this offers a greater potential that your
employees will benefit. Here are some ways that you can use technology to organize the
Competitive Intelligence information.

PEST ANALYSIS

PEST analysis is the acronym for "Political, Economic, Social, and Technological
analysis" and illustrates a framework of macro-environmental aspects used in environmental
sensing. Economic surroundings affect how easy or how difficult it is to be successful and
profitable at a certain time because they influence both capital availability and cost, and demand.
WAYS TO ANALYZE

There are different ways to analyse data. You can choose the processes that make the
most sense to your company and objectives, or simply use a combination of methods. You need
to master all the steps in order to be able to use the information to your advent
 PEST analysis is the acronym for "Political, Economic, Social, and Technological
analysis" and illustrates a framework of macro-environmental aspects used in environmental
sensing. Economic surroundings affect how easy or how difficult it is to be successful and
profitable at a certain time because they influence both capital availability and cost, and demand.

There are different ways to analyse data. You can choose the processes that make the
most sense to your company and objectives, or simply use a combination of methods.

 ANALYSIS - A CRUCIAL STEP

Analysing the date you gather is a crucial step. However, without the proper organization
and a clear objective, you won’t gain much from the process. If you started collecting
information without a clear objective, you may have a difficult time making sense of it. That is
why with competitive intelligence, you need to master all the steps in order to be able to use the
information to your advantage.

SOURCES OF INFORMATION

 Keep in mind that the government is a potential resource while gathering information,
especially if they are in some way involved with your company. It is helpful to consider them as
part of your industry.

THE INTERNET

Now that there are a lot of resources on the internet, it is easy to not take advantage of
their potential. Information can be found on more than just the company’s website if it is a public
company.

STEPS FOR GATHERING INFORMATION ONLINE

 It is important to learn how to use search engines to help you find all the information you
need. Search engines are invaluable for finding information, even the basics.

SOURCES OF ADDITIONAL ONLINE INFORMATION

In addition to utilizing search engines to gather information, there are also other places to
find helpful information about your competition and the general industry. These sources will
help you gain additional insights that can potentially help your company grow and minimize
competitive risks.

USING PAID SERVICES

In addition to using the free information on the internet, you can pay for database and
subscription services. The advantage is that they provide a wide range of easily accessible
information. This can save you time spent combing the internet piecemeal.

TRADITIONAL SOURCES

Though the internet is a great resource for gathering information, there are also plenty of
helpful traditional sources. The best data collection strategy is one that employs techniques from
both.

FINDING IT YOURSELF
 In order to gather information for competitive intelligence, you need to tap into a variety
of resources. Even if you outsource the process, you will still want to keep informed as much as
possible. Doing so will help give you insights into the industry, your competition, and the market
that may give you inspiration and insights into current and future trends. If you outsource, you
may be too far removed from this process.

USING PUBLICATIONS

Publications are even better than consumer magazines for finding in depth information
about the competition and your industry. You can look in special newspapers, reports, trade
journals, and special industry magazines.
 CHAPTER 4

RESEARCH METHODOLOGY

RESEARCH APPROACH:

Depending upon the objectives of the research, the most suitable marketing research approach is
“Exploratory research”. The purpose is to find out the experience of customers while shopping in
pantaloons.

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
Pantaloons is daily in news because of its wedding fest and different offers, so I benefited a lot
from updates on net.

SURVEY DESIGN

Random stratified sampling was chosen for research. The CSD of pantaloons, saheed nagar 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 project is divided into 3 steps:

1. Sample size: A sample size of 80 respondents was chosen. Though small sample size but it
consists of varied respondents to overcome any error at the time of generalization of result.

2. Sample unit: Pantaloons store at GIP MALL was chosen as sample unit. Survey was
conducted in April- June2018.
3. Contact method: Questionnaire method was used to view responses of respondents.
 CHAPTER 5

DATA ANALYSIS & INTERPRETATION

i. You prefer to shop from

TABLE 1:

Opinion % of respondents
Hypermarket 40%
Small retailers 16%
Based on specific outlets and offers 44%

DIAGRAM 1:
 Chart Title
Hypermarket
Small retailers Based on specific outlets and offers

40%
44%

16%

Inference
From the above pie chart it depicted that frequency of shopping from
hypermarket is highest it contains 40% of total outcomes.36% of people like to visit in
specific brand outlets. Whereas, 44 % wants to buy the products from small retailers and
also prefers for specific offers.
 ii. What influenced you to shop in Pantaloons?

TABLE 2:

Opinion % of respondents
Product quality 32%

Store appearance and atmosphere 26%

Promotion and offers 20%

Price and terms of payment 22%

DIAGRAM 2:

Chart Title
Product quality Store appearance and atmosphere
Promotion and offers Price and terms of payment
22%
32%

20%
26%
Inference
From the above pie chart it shows that 32% of people prefer pantaloons for the
quality of product, 26% of customers influenced due to the atmosphere and appearance of
store. Whereas, 20% of customers prefer this store to shop because of promotions and
offers and 22% prefer to price and terms of payments.
 iii. Brands and products availability in Pantaloons is?

TABLE 3:

Opinion % of respondents
Excellent 36%
Good 48%
Average 10%
Bad 6%

DIAGRAM 3:
 Chart Title
Excellent Good Average Bad
10%
6%
36%

48%

Inference
From the above chart it is clear that brand and product availability of Pantaloons
is up to the mark. Out of 100 respondent 36% respondent liked excellent option whereas
48 respondents view good options .It means that brand and product in Pantaloons is
qualitative and doing fine job.
 4.Through which promotional source you come to know about Pantaloons?

TABLE 4:

Opinion % of respondents
Print media 32%
Electronic media 20%
Word of mouth 44%
Magazine 4%
 DIAGRAM 4:

Chart Title
Print media Electronic media Word of mouth Magazine
4%
32%

44%

20%

Inference
From the above pie chart data we can study that most of the customer comes to
know about the Pantaloons by word of mouth 44% and print media 32%.Electronic media
also doing fine job. People come to know about Pantaloons by 20% through electronic
media. Only 4% of people come to know about pantaloons by magazine. Then it is clear
 that word of mouth is one of the effective tools of informing the customers about
Pantaloons.

5. Which company you think is a competitor of Pantaloons?

TABLE 5:

Opinion % of respondents
Max 27%
Central 55%
Reliance trends 9%
Big bazaar 9%
 DIAGRAM 5:

Chart Title
Shoppers stop Central Reliance trends Big bazar
9% 9%

55%

27%
Inference
It is evident from the findings that most of the outlets regard central as its closest
competitor of Pantaloons.

6. Product display and signage in the store is-

TABLE 6:

Opinion % of respondents
Excellent 44%
Good 40%
Average 16%
Bad 0%
 DIAGRAM 6:

Chart Title
Excellent Good Average Bad
16%

44%

40%

Inference
From this above pie chart it displays that out of 100% respondents 44% believed
that that product displays and signage are excellent in nature and 40% is in good and 16%
are average in nature. Therefore, here it concludes that display and signage is up to the
mark.
 7. Does the cost of product affect your purchasing choices?

TABLE 7:

RESPONDENT
MALE FEMALE PERCENTAGE (%)
YES 34 17 51%
NO 33 16 49%

67 33
 DIAGRAM 7:

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Inference
We find those 34% males and 17% female respondents purchasing choice is
affected by the price of the product and 33% male and 16% female purchasing choice is
not affected by the price of the product.
 8. In which of the section do you spend more time while shopping?

TABLE 8:

Opinion % of respondents
Ladies ethnic wear 25%
Western wear 15%
Kids sections 20%
Footwear, Hand bags, Jewellery 10%
Men’s wear 30%
 DIAGRAM 8:

Chart Title
Ladies ethnic wear Western wear
Kids sections Footwear, Hand bags, Jewellery
Men’s wear
30% 25%

15%
10% 20%

Inference
Most of the customers who visit in Pantaloons would like to visit men’s wear and
ethnic wear. Men’s wear is of 30% and 25% is of ladies ethnic wear section. Whereas
family customers’ likely visit to kids and western wear section and rest all prefers to
other sections.
 9. Location cleanliness and hygienic maintained in pantaloons is-

TABLE 9:

Opinion % of respondents
Excellent 56%
Good 40%
Average 4%
Bad 0%
 DIAGRAM 9:

Chart Title
Excellent Good Average Bad
4%

40%

56%

Inference
It is clear from the above pie chart that cleanliness and hygienic maintain in
Pantaloons in superb. More than 90% respondent marks it excellent and good out of 56%
respondent feels it excellent and 40% respondent mark is good. So we can conclude that
cleanliness and hygienic is awesome in pantaloons family centre.
 10. Do you like fashion weekend offers?

TABLE 10:

Opinion % of respondents
Yes 95%
No 5%
 DIAGRAM 10:

Chart Title
YES NO

5%

95%

Inference
Most of the customers liked to fashion Friday’s offer, we can easily conclude that
95% respondent liked to fashion Friday’s offer or 5% respondent not liked to fashion
Friday’s offer.

11. Choose the company which is good in providing the following features-

TABLE 11:

A. Best company on the basis of price

Opinion % of respondents
Pantaloons 43%
Reliance 17%
Central 22%
Max 12%
Big bazar 06%
 DIAGRAM 11:
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Pantaloons Reliance Central Max Big bazar
 Inference
It is clear from the above bar chart that on the basis of price Shopper stop is the
next competitor of Pantaloons.43% respondents of customers are chosen Pantaloons is
the best store in price.

B. Best company on the basis of Offers

TABLE 12:
Opinion % of respondents
Pantaloons 25
Reliance 15
Central 30
Max 20
Big bazar 10

DIAGRAM 12:
 % of respondents
35

30

25

20 % of respondents

15

10

0
Pantaloons Reliance Central Max Big bazar

Inference
From the above bar chart it depicted that on the basis of best offers central is
the store which is the next competitor of Pantaloons. 25% of respondent’s choice was
Pantaloons for best offers on products.
C. Best company on the basis of Availability
TABLE 13:
Opinion % of respondents
Pantaloons 28%
Reliance 7%
Central 39%
Big bazar 14%
Max 12%

DIAGRAM 13:

% of respondents
45%
40%
35%
30%
% of respondents
25%
20%
15%
10%
5%
0%
Pantaloons Reliance Central Big bazar Max
Inference
From the above bar chart it says that on the basis of availability of the
product central is the highest one. According to the customers, 39% respondents are
select for central for its product availability.

D. Best company on the basis of services

TABLE 14:
Opinion % of respondents
Pantaloons 45%
Reliance 15%
Central 7%
Max 17%
Big Bazar 16%

DIAGRAM 14
 0.5
0.45
0.4
0.35
0.3
0.25
0.2
0.15
0.1
0.05
0
Opinion Pantaloons Reliance Central Max Big bazar

Inference
Here the bar chart shows that more of the customers are visit Pantaloons for its
store services. It is the store which provides best services to customers and 45% of
respondents about this.
E. Best company on the basis of Product quality

TABLE 15:

Opinion % of respondents
Pantaloons 20%
Reliance 13%
Central 41%
Max 11%
Big bazar 15%

DIAGRAM 15:

45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Pantaloons Reliance Central Max Big bazar
Inference
On the basis of product quality according to the Customers pantaloons and central has the
best product quality compare to other stores.
 CHAPTER 5

FINDING

This research helped us identify following problems where PANTALOON has an immense
scope of improvement:
1. People were found to be a little dissatisfied with the ambience of Pantaloons as compared
to some other outlets but mostly were overall satisfied.
2. Majority of respondents were complaining about the variety of products, Different sizes
are not available, footwear needs improvement at Pantaloons.
3. Ladies complaint about jeweler variety is not there, there should have more variety.
4. Location was one of the main reasons which attracted consumers towards Pantaloons and
it took less time for majority of respondents to reach Pantaloons.
5. As Pantaloons operates in discount retailing, it was assumed that PANTALOON’S
discount and low prices were one of the magnum opus for customers but respondents feel that
the discount is not that promising and it should be enhanced.
6. Parking is also a problem at Pantaloons and some of the respondents were dissatisfied
with the parking lot at Pantaloons, as it provides lesser parking space to customers. Mostly,
Employees of Pantaloons use the parking space provide by that mall only.

CHAPTER 6
CONCLUSION

This research report aims to study consumer attitude towards Pantaloons and highlights its
strengths and weaknesses in order that Pantaloons can fight the competition in a smarter way.
Though Pantaloons captures a large market and is giving competition to big players like Vishal
mega mart and big bazaar, retail in India is a booming sector nowadays and Pantaloons should
try to benefit more from it. Recommendations given should be considered by Pantaloons to come
forth as a winner in long run.
Now there are 65% of the customers comes in between 25-35. Therefore, data suggests that they
should emphasizing on this dominant segment to add more loyal members and maximize the
revenue. Providing a better billing experience to the customers is vital for every retailer. This is a
bottleneck where customer can really get exhausted if they stand in a queue to get the billing
done, even for 10 minutes.
The factors that attract customers to the Pantaloons, as in, the store mainly focus on their in-
house brand availability and value of money. Many customers believe that Pantaloons have their
own branded products to offer the customers with an affordable price.

RECOMMENDATIONS

This research throws light on various pros and cons of Pantaloons and can help Pantaloons to
improve on different aspects to have an advantage over its peers. Based on the analysis and
findings of my research, I have given following recommendations:
1. Pantaloons needs to improve variety of products and provide space for children coming
with their parents for entertainment and have fun so that visiting Pantaloons will be exciting for
them.
2. Pantaloons should include more variety of products in its basket to acquire the
convenience of availability of all apparels under a roof provided to its customers. Variety of
products should specially be increased in traditional wear for women, jewelry, cosmetics,
Footwear and more varieties in watches.
3. More computers should be included at exchange counter and number of billing counters
should be increased especially during the sales and festive season to fasten the billing process
and minimize large queues.
4. If possible more lucrative discounts and offers should be implemented to attract more
customers. The schemes and offers should be analyzed before generalizing to customers
5. Staff should be trained up to the mark to assist people and to make them understand the
benefits of green card membership which will strengthen Customer loyalty.
6. Good quality of merchandise should be which should be trendy and compete with the
latest market trend.
7. The Cashiering should be optimized to save time of customers and avoid unnecessary
queues.

ANNEXURE
Survey on the customer satisfaction and services provided at pantaloons GIP MALL
Age.
□ below 25
□ 25-35
□ 35-45
□ 45-55
□ above 55 2.occupation.
□ student
□ self employed
□ service
□ homemaker
 □ other
3. what is your casual preference while buying products from organized retail outlets?
□ pantaloons
□ Bhawani mall
□ central
□ west side
□ big bazaar
4. From which source made you buy products from pantaloons?
□ Internet
□ news paper
□ hoardings
□ person
□ Other...
5. Frequency of visiting pantaloons.
□ first time
□ every week
□ every month
□ once in a 6 month
□ once in a year
6. What is the most important factor that influence you to buy from pantaloons?
□ Better service standard
□ better quality of products
□ Variety of products
□ price
□ Other...
7. Does pantaloons reminding & intimating their store discounts & prices to you in a proper
way?
□ Yes
□ No
□ Maybe
8. Which of the following point you want improvement?
□ Service should be faster
□ Staffs could be friendlier
□ Staff should communicate all the points to the consumer
□ Others
9. Availability of staff in a timely manner.
□ Excellent
□ good
□ average
□ below average
□ poor
10. Knowledge level of staff about products.
□ 1
□2
□ 3
□ 4
□ 5
11. How is your in-store experience?
□ 1
□2
□ 3
□ 4
□ 5
12. variety & quality of products available at pantaloons.
□ excellent
□ good
□ average
□ below average
□ poor
13. How is your experience at CSD (customer service desk)?
□ excellent
□ good
□ average
□ below average
□ poor
14. Rate your opinion about CSD personnel when answering your queries.
□ 1□2
□ 3
□ 4
□ 5
15. what is your opinion about Green card (loyalty) facility at pantaloons?
□ excellent
□ good
□ average
□ below average
□ poor
16. Please rate the exchange policy of Pantaloons.
□ excellent
□ good
□ average
□ below average
□ poor
17. How is your billing experience at Pantaloons?
□ excellent
□ good
□ average
□ below average
□ poor
18. what is your opinion about after purchase services at pantaloons?
□ excellent
□ good
□ average
□ below average
□ poor
19. what is your usage experience of pantaloons products?
□ excellent
□ good
□ average
□ below average
□ poor
20. Please rate overall facilities like water, sanitary, washroom, parking etc. at Pantaloons.
□ excellent
□ good
□ average
□ below average
□ poor
21. Rate your opinion about wedding fest offer in pantaloons?
□ excellent
□ good
□ average
□ below average
□ poor
22. Rate your opinion about insignia offer at pantaloons.
□ excellent
□ good
□ average
□ below average
□ poor
23. feedback
 BIBLIOGRAPHY

1. Principles of marketing By PHILIP KOTLER.

2. Wikipedia.
3. http://pantaloon.futurebazaar.com/indexPantaloon.jsp.
4. http://en.wikipedia.org/wiki/Retailing_in_India
5. www.pantaloons.com
6. www.glassdoor.com
7. pantaloonfashion.com
8. www.trendin.com