Table of Content

1. INTRODUCTION
2. ABSTRACT
3. LITERATURE REVIEW
4. RESEARCH METHODOLOGY
5. PILOT SURVEY
6. ANALYSIS AND FINDINGS OF PILOT SURVEY
7. ANALYSIS AND FINDINGS OF FINAL SURVEY
8. INTERPRETATIONS AND RESULT
9. CONCLUSION
10.
RECOMMENDATIONS
11.
LIMITATION
12.
ANNEXURE

INTRODUCTION
The Indian Retail Industry is the largest among all the industries, accounting for
over 10 percent of the countrys GDP and around 8 percent of the employment.
The Retail Industry in India has come forth as one of the most dynamic and fast
paced industries with several players entering the market. Modern retailing has
emerged in India in the form of bustling shopping centres, multi-stored malls
and large complexes that offer shopping, food and variety of ways of
entertainment.
This study mainly deals with the customers perception towards Pantaloons.
Spotlighting today's buoyant youth, Pantaloons, India's premium lifestyle
apparel company offers chic and trendy fashion to meet their ever-changing
needs. Pantaloons reflect the ideology of always keeping alive the 'newness
factor' through fashion apparel and accessories that are visually appealing and
fashionably upbeat.
With a chain of 87 fashion stores across 43 cities and towns, Pantaloons is
constantly extending its foot-prints into the rest of modern India.
Pantaloons which was previously controlled by the Future Group has now been
taken over by Aditya Birla Nuvo Limited ['ABNL']. ABNL is a part of the
prestigious Aditya Birla Group, a $40 billion Indian multinational, operating in
36 countries across the globe with over 120,000 employees.
Pantaloons is one of the most popular retail shopping outlet,
claiming that they are providing one among the best products and services. In
this
research we have tried to find out the Level of Customers Satisfaction at
Pantaloons after it has been taken over by Aditya Birla Nuovo Ltd.

ABSTRACT
Customer satisfaction is a fundamental marketing construct in the last three
decades. In the past, it was unpopular and unaccepted concept because
companies thought it was more important to gain new customers than retain
the existing ones. However, in this present decade, companies have gained
better understanding of the importance of customer satisfaction (especially
service producing companies) and adopted it as a high priority operational
goal. This study aims at investigating the overall customer satisfaction at
PANTALOONS in India, to understand the how the transformation of the Retail
experience has changed since Aidtya BirlaNuovo. And what could be improved
to retain Customer loyalty as well attract new customers and maintain stand
against competition.The results obtained in this research indicated that 64.75%
of the respondents were satisfied with the shopping experience at Pantaloons.
And, hence, low revenue turnover can not be attributed to dissatisfied
customers.

LITERATURE REVIEW
CUSTOMER SATISFACTION
Customer satisfaction, as a construct, has been fundamental to marketing for
over three decades. As early as 1960, Keith (1960) defined marketing as
satisfying the needs and desires of the consumer. Hunt (1982) reported that
by the 1970s, interest in customer satisfaction had increase to such an extent
that over 500 studies were published. This trend continued and by 1992,
Peterson and Wilson estimated the amount of academic and trade articles on
customer satisfaction to be over 15,000.
Several studies have shown that it costs about five times to gain a new
customer as it does to keep an existing customer (Naumann, 1995) and this
results into more interest in customer relationships. Thus, several companies
are adopting customer satisfaction as their operational goal with a carefully
designed framework. Hill and Alexander (2000) wrote in their book that
companies now have big investment in database marketing, relationship
management and customer planning to move closer to their customers. Jones
and Sasser (1995) wrote that achieving customer satisfaction is the main goal
for most service firms today.
Increasing customer satisfaction has been shown to directly affect companies
market share, which leads to improved profits, positive recommendation, lower
marketing expenditures (Reichheld, 1996; Heskett et al., 1997), and greatly
impact the corporate image and survival (Pizam and Ellis, 1999).

MEANING
Parker and Mathew (2001) expressed that there are two basic definitional
approaches of the concept of customer satisfaction. The first approach defines
satisfaction as a process and the second approach defines satisfaction as an
outcome of a consumption experience. These two approaches are
complementary, as often one depends on the other.
Customer satisfaction as a process is defined as an evaluation between what
was received and what was expected (Oliver, 1977, 1981; Olson and Dover,
1979; Tse and Wilton, 1988), emphasizing the perceptual, evaluative and
psychological processes that contribute to customer satisfaction (Vavra, 1997,
p. 4).
Parker and Mathews (2001) however noted that the process of satisfaction
definitions concentrates on the antecedents to satisfaction rather than
satisfaction itself.
Satisfaction as a process is the most widely adopted description of customer
satisfaction and a lot of research efforts have been directed at understanding
the process approach of satisfaction evaluations (Parker and Mathews, 2001).
This approach has its origin in the discrepancy theory (Porter, 1961), which
argued that satisfaction is determined by the perception of a difference
between some standard and actual performance.
Cardozo (1965); and Howard and Sheth (1969) developed the contrast theory,
which showed that consumers would exaggerate any contrasts between
expectations and product evaluations.
Olshavsky and Miller (1972); and Olson and Dover (1979) developed the
assimilation theory, which means that perceived quality is directly increasing
with expectations. Assimilation effects occur when the difference between
expectations and quality is too small to be perceived.

Anderson (1973) further developed this theory into assimilation-contrast

theory, which means if the discrepancy is too large to be assimilated then the
contrast effects occur. The assimilation-contrast effects occur when the
difference between expectations and quality is too large to be perceived and
this difference is exaggerated by consumers.
According to Parker and Mathews (2001), the most popular descendant of the
discrepancy theories is the expectation disconfirmation theory (Oliver, 1977,
1981), which stated that the result of customers perceptions of the difference
between their perceptions of performance and their expectations of
performance. Positive disconfirmation leads to increased satisfaction, with
negative disconfirmation having the opposite effect. Yi (1990) expressed that
customers buy products or services with pre-purchase expectations about
anticipated performance, once the bought product or service has been used,
outcomes are compared against expectations. If the outcome matches
expectations, the result is confirmation. When there are differences between
expectations and outcomes, disconfirmation occurs. Positive disconfirmation
occurs when product or service performance exceeds expectations. Therefore,
satisfaction is caused by positive disconfirmation or confirmation of customer
expectations, and dissatisfaction is the negative disconfirmation of customer
expectations (Yi, 1990).
While several studies support the disconfirmation paradigm, others do not. For
instance, Churchill and Surprenant (1982) found that neither disconfirmation
nor expectations had any effect on customer satisfaction with durable
products.
Weiner (1980, and 1985); and Folkes (1984) proposed the attribution theory,
which stated that when a customer purchases a product or service, if the
consumption is below expectation, the customer is convinced that the supplier
causes the dissatisfaction. The complaining customer is focused on restoring
justice and the satisfaction outcome is driven by perceived fairness of the
outcome of complaining.
Westbrook and Reilly (1983) proposed the value-percept theory, which defines
satisfaction as an emotional response caused by a cognitive-evaluative

process, which is the comparison of the product or service to one's values

rather than an expectation. So, satisfaction is a discrepancy between the
observed and the desired.
Fisk and Young (1985); Swan and Oliver (1985) proposed the equity theory,
which stated that individuals compare their input and output ratios with those
of others and feel equitable treated. Equity judgment is based on two steps;
first, the customer compares the outcome to the input and secondly, performs
a relative comparison of the outcome to the other party.
Pizam and Ellis (1999) reported that there are two additional distinct theories of
customer satisfaction apart from the seven aforementioned ones and these
include:
1. Comparison-level
2. Generalized negativity; and
The outcome approach of the customer satisfaction is defined as the end-state
satisfaction resulting from the experience of consumption. This postconsumption state can be an outcome that occurs without comparing
expectations (Oliver, 1996); or may be a cognitive state of reward, an
emotional response that may occur as the result of comparing expected and
actual performance or a comparison of rewards and costs to the anticipated
consequences (Vavra, 1997, p. 4).
Furthermore, Parker and Mathews (2001) expressed that attention has been
focused on the nature of satisfaction of the outcome approach which include:
1. Emotion - Satisfaction is viewed as the surprise element of product or service
purchase and or consumption experiences (Oliver, 1981), or is an effective
response to a specific consumption experience (Westbrook and Reilly, 1983).
This acknowledges the input of comparative cognitive processes but goes
further by stating that these may be just one of the determinants of the
affective state satisfaction (Park and Mathews, 2001).
2. Fulfillment The theories of motivation state that people are driven by the
desire to satisfy their needs (Maslow, 1943) or by their behavior aimed at

achieving the relevant goals (Vroom, 1964). However, satisfaction can be either
way viewed as the end-point in the motivational process. Thus consumer
satisfaction can be seen as the consumer's fulfillment response (Rust and
Oliver, 1994, p. 4).
3. State Oliver (1989) expressed that there are four framework of satisfaction,
which relates to reinforcement and arousal. Satisfaction-as-pleasure results
from positive reinforcement, where the product or service is adding to an
aroused resting state, and satisfaction-as-relief results from negative
reinforcement .In relation to arousal, low arousal fulfillment is defined as
satisfaction-as contentment, a result of the product or service performing
adequately in an ongoing passive sense. High arousal satisfaction is defined as
satisfaction as either positive (delight) or negative surprise which could be a
shock (Rust and Oliver, 1994).
The other customer satisfaction definitions include: Satisfaction is the
cognitive state of the buyer about the appropriateness or inappropriateness of
the reward received in exchange for the service experienced (Howard and Seth,
1969, pp. 145); the evaluation of emotions (Hunt, 1977, p. 460); the
favorability of the individual's subjective evaluation (Westbrook, 1980, p. 49); a
positive outcome from the outlay of scarce resources (Bearden and Teel, 1983a,
p. 21); an overall customer attitude towards a service provider (Levesque and
McDougall, 1996, pp.14); is a judgment that a product or service feature, or the
product or service itself, provided (or is providing) a pleasurable level of
consumption-related fulfillment, included levels of under- or over
fulfillment(Oliver,1997, p. 13); is an experience-based assessment made by the
customer of how far his own expectations about the individual characteristics
or the overall functionality of the services obtained from the provider have
been fulfilled (Homburg and Bruhn, 1998); the fulfillment of some need, goal or
desire (Oliver, 1999); an emotional reaction to the difference between what
customers anticipate and what they receive (Zineldin, 2000); is based on a
customers estimated experience of the extent to which a providers services
fulfill his or her expectations (Gerpott et al. 2001).

For this study, customer satisfaction definition used is that of Homburg and
Bruhn (1998) which is an experience-based assessment made by the
customer of how far his own expectations about the individual characteristics
or the overall functionality of the services obtained from the provider have
been fulfilled.
The relevance of this definition to this study is that it indicates that customers
assess the mobile services based on experience of use and the rating is done in
accordance with the mobile services attributes. In this study, customer
satisfaction with the Nigerian mobile services will be evaluated based on
customers experience of network quality, billing, validity period and customer
care support.

BRIEF HISTORY
YEAR EVENTS 1987 - The Company was incorporated on the 12th October,
under the name of Manz Wear Private Limited.
1991 - The Company was converted into a Public Limited Company under the
name of Manz Wear Limited on 20th September.
- The Company name was changed to Pantaloons Fashions (India) Limited vide
certificate of incorporation dated the 25th September.

- The Company is engaged in the manufacture and marketing of quality Readymade Garments for men, including Trousers, Shirts, Denims, Blazers and Sleep
Suits, at its units located at Andheri in Bombay.
- The Company's Products are being marketed under the brand name
"PANTALOON" and "BARE NECESSITIES" through a network of over 300 dealers
spanning the Metro and Class l cities in the country.
- The Company is promoted by Shri Kishore Biyani, friends and associates.
1992 - The Company has successfully launched the "Pantaloon" Trousers,
Shirts, Denims, Sleep Suits and other ready-made garments.
1992 - The Company recently made a Public Issue of 25,55,000 equity shares
of Rs.10/- each for cash at par in May. The Company has allotted 36,57,100
Equity Shares on 28th July in consultation with the Stock Exchange Bombay.
1994 - The Company is launching a new brand of shirts called `John Miller' at
affordable prices.
1995- Pantaloon Fashions (India) Limited has launched "John Miller" shirts
1996- Pantaloons Fashions (India) Ltd. has launched the Yorker to concede with
the world cup
1997 - The Company has launched women's wear, children's wear and
household products in the last few months.
- The Company has issued 10, 00,000 Non-Cumulative Preference Shares Rs.
10/- each aggregating Rs. 1, 00,00,000/- on Private Placement basis.
1998 - The Company has introduced "Shrishti" range of SalwaarKameez. The
Company has also added Knitted T-shirts to its range of products.
1999 - The Company opened a state-of-art family store at prestigious
"Crossroads", Haji Ali, Mumbai, spread over an area of 4,500 sq. ft.
- The name of the Company was changed with the approval of the Members to
Pantaloon Retail (India) Ltd.
- The company has recently set up a state-of-the-art trouser manufacturing
plant in Mumbai with a capacity of 1,200 pieces per day.
- Entrepreneurial Jadeja is setting up a joint venture sports wear company with
the promoters of Pantaloon Retail (India) Ltd.

2000 - The company share transfer committee, have allotted 10,00,000 No. of
equity shares of Rs. 10/- each at a premium of Rs. 33/- per share on private
placement basis to ICICI Ltd. A/c. Structured Products Fund.
- The total paid up capital of the company is 1,25,19,413 No. of equity shares of
Rs. 10/- each, ICICI Ltd. A/c Structured Products Fund will be holding 7.99% of
the enhanced share capital.
- Pantaloon Retail (India) Ltd. has launched stainfree with Scotchgard, a new
range of formal shirts and trousers.
2001
-Retail major Pantaloons has forged an alliance with Arvind Mills for the supply
of fabric and apparel for its in-house brands.
-Finalised a leasing deal to occupy 50,000 sqft of space for Rs 25 lakh
-Issue of 4 million equity shares of Rs.10/- each to the Promoters of the
company on a preferential basis at a price as per SEBI Guidelines.
-Tied up with Andhra Pradesh Handloom Weavers Co-operative Society and
National Institute of Fashion Technology

2002
-Pantaloon Retail India Ltd has informed that the Board of Directors of the
company has allotted 40 lac equity shares to the promoters and their
associates on preferential basis at a price of Rs.31.50 per share.
-Promoters sell 584098 shares
-Pantaloon has launched a range of the movie-specific merchandise such as
notebooks, folders, pens, mouse pads etc.
-Incidence of fire occurred at one of ATM centre in Maheshwari Plaza Mall/Big
Bazaar at Abids, Hyderabad.
- Preferential Issue of 8,65,000 Equity shares of Rs.10 each at a premium of
Rs.40 per share to Promoters & Associates.
2003

-Allotment of 8,65,000 equity shares to the promoters and their associates on

preferential basis at a price of Rs.50/- per shares as approved by the members
of the company at their meeting held on December 20, 2002
-Change of Registered Office from 'Pantaloon House', G-11, MIDC, Cross Road A,
Andheri (East), Mumbai - 400 093 to 'Knowledge House', Off. JogeshwariVikhroli Link Road, Shyam Nagar, Jogeshwari (E), Mumbai - 400 060 w.e.f.
January 31, 2003.
-Acquires the trademark and exclusive licensing rights for apparel brand
Norules in India, from US-based NorulesInc
-Forged an alliance with ICICI Lombard to offer one year free insurance cover to
customers acquiring gold from Gold Bazaar.
-Teams up with Italian apparel behemoth Moda&Musica to market its casual
sportswear brand UMM in the domestic market
-Received a letter from ICICI Venture Funds Management Company Limited, in
which they have stated that they have sold 2,71,083 shares aggregating to
2.04 % of the total paid-up capital of the Company as on September 12, 2003.
-ICICI Venture Funds Management Company Ltd. sells 279900 equity shares of
the company, bring down the stake in the company to 3.37 % (449017 shares)
-Board approves a proposal to allot 9.5 lakh shares (of Rs 10 each) to
promoters and associates at premium of Rs 102 per share.
-Promoters sell 4.6% stake of the company
-Pantaloon Industries Ltd. acquires 3,00,000 shares aggregating to 1.57% of
the paid up equity share capital of the company
-American Funds Insurance Series Global Small Capitalization Fund have
acquired 2,09,500 shares of Pantaloon Retail India Ltd. representing 1.152% of
the total paid up capital of the Company
2004
-Pantaloon Retail (I) Ltd. enters into Strategic alliance with Arvind Brands Ltd.
-Pantaloon Retail calls off strategic alliance with Arcus Ltd

-Appoints Mr. VedPrakashArya as Chief Operating Officer. Mr. Arya will take
charge of the retail operations of the company.
-Ties up Arvind Brands Ltd for Ruf&Tuf brand at its Big Bazaar outlets across the
country
-Pantaloon Retail (India) Ltd has signed a memorandum of understanding (MoU)
with K.J. Somaiya Institute of Management & Research Studies to offer a
specialised course in retail management
-Pantaloon join hands with Unitech for home stores chain
2005
-The Pantaloon Retail has made an offer under Regulation 10 of the SEBI (SAST)
Regulations to the Public shareholders of Galaxy Entertainment Corporation Ltd
("Target Company") to acquire upto 2,542,400 fully paid equity shares of Rs
10/- each, representing in the aggregate 20% of the Post issue voting capital at
a price of Rs 51/- (Rupees Fifty One only) per share ("the Offer price") payable
in cash subject to the terms & conditions mentioned.
-Pantaloon sets up restaurant at Bangalore Central Hall
2006
-Pantaloon Retail enters into an agreement with CapitaLand Singapore
-Pantaloon Retail join hands with management schools across the country
-Pantaloon Retail India Ltd has launched its newest retail venture `Depot'
-Pantaloon Retail - Strategic alliance agreement with Ruchi Soya Industries
-Pantaloon Retail signed MOU with Blue Foods on July 31, 2006
-Pantaloon Retail signs MOU with Manipal Health Systems on August 05, 2006.
- Company has splits its Face value of Shares from Rs 10 to Rs 2
2007
-Pantaloon Retail India Ltd has entered into a 50:50 joint venture (JV) with
Axiom Telecom LLC, UAE, to do sourcing and wholesale distribution of mobile
handsets, accessories and setting up service centers and Authorizedafter Sales

Service Centers for mobile handsets in India.

2008
-Pantaloon Retail (India) Ltd. has appointment Mr. Deepak Tanna as Deputy
Company Secretary and he shall be Compliance Officer with immediate effect.
- Pantaloon Retail has inked a 50-50 joint venture pact with French apparel firm
Celio to add to its garment retailing in India.
-The Company has issued Bonus Shares in the Ratio of 1:10.
-Pantaloon Retail joins hand with French firm
2009
- Pantaloon receives shareholders approval for restructuring biz and name
change.
- Mr. Vijay Biyani has been co-opted on the Board and then also appointed as
Whole time Director.
- Pantaloon Retail - Authorisation to open QIP Placement.
- Pantaloon Retail celebrates its first Shopping Festival across all retail formats
in key Indian cities.
2010
- Mr.Kailash Bhatia has been co-opted on the Board and also appointed as
Wholetime Director.
- 'Bring anything old and get anything new' at Big Bazaar's 'The Great
Exchange Offer'.
- Tata Teleservices in Strategic Partnership with Future Group.
- Company Heads walk the ramp for the Pantaloons Style Inc Awards Unveil
Pantaloons Spring Summer Collection 2010.
- Pantaloons Femina Miss India 2010 Finalists Unveil the 'Pantaloons Femina
Miss India 2010 Collection'.
2011

- Bengaluru Welcomes 'Next Gen' Pantaloons Store.

- Pantaloons launches its revamped Green Card Loyalty Programme in
Bengaluru.
- Pantaloons continues its 'Next Gen' journey in Pune.
- Big Bazaar Completes 10 Years.

2012
- Kishore BiyanisPantaloon Retail to be re-named as Future Retail India Ltd
post demerger.
- Pantaloon Retail gains over 2% after govt gets Maya boost in RS.
- Future Group Demerges Pantaloons Retail Format from Flagship Company
Aditya Birla NUVO to Invest in Pantaloons Format.
- Future Group forays into elite gourmet retailing in Bengaluru with the launch
of the first Foodhall in the city.
- Pantaloon Retail & Future Ventures Demerge Lifestyle Fashion Businesses to
Create India's Leading Integrated Fashion Company

2013 PANTALOONS UNDER ADITYA BIRLA

Pantaloons, the newly acquired business by The Aditya Birla Group, one of
Indias leading multinational conglomerates, are a powerhouse of fresh fashion
and innovation. While weaving its magic across lifestyle segments, Pantaloons
caters to the discerning and trendy Indian consumer.

Pantaloons stores have an abundance of choices across categories that range

from western to Indian wear, formal to party wear and active wear for men,
women and kids. To further add to the customer's innumerable choices that
reflect style, attitude, and comfort, Pantaloons has extended its horizons to
fashion accessories like fragrances, footwear, handbags, watches, sunglasses
and much more.
Handed over with a chain of 71 fashion stores across 35 cities and towns in
2013, Pantaloons has constantly extending its foot-prints into the rest of
modern India.
Pantaloons which was previously controlled by the Future Group has now been
taken over by Aditya Birla Nuvo Limited ['ABNL']. ABNL is a part of the
prestigious Aditya Birla Group, a billion Indian multinational, operating in 36
countries across the globe with over 133,000 employees.
The Aditya Birla Group ranks high in the League of Fortune 500 Corporations of
the world with a strong mix of talented and capable personnel comprising of 42
different nationalities, who are credited with anchoring the organization and
scripting one brilliant success story after another.

PRESENT MARKET SCENARIO

Indian Economy
Having grown in high single digit over past few years, the GDP of India slowed
down and attained sub
5% growth consecutively for the second year. During 2013-14, in particular,
Indian economy witnessed
multifaceted challenges on account of persistently high inflation, elevated
interest rates etc., leading to
slowdown in consumption and investment demand. Steep depreciation of
Indian Rupee added to the
woes. High inflation impacted the consumer sentiments and discretionary
spends.
Led by fiscal and monetary initiatives taken by the Government and the
Reserve Bank of India (RBI),
fiscal deficit and current account deficit have narrowed down. Going forward, a
modest recovery in the
Indian economy is expected, driven by a stable government, revival of global
economy, moderation of
inflation and implementation of recently approved investment projects.
Indian Retail Industry Overview
The long term growth potential of Indian retail industry remains intact. The size
of the Indian retail market
at USD 0.5 trillion in 2012 is expected to grow at a CAGR of 12.7% to reach
USD 1.3 trillion by 2020.
Rising income levels and preference towards quality products are likely to drive
consumption expenditure
in India. One of the biggest beneficiaries of this growth will be the organizing
retailing sector which is
projected to grow at a robust
CAGR of 30% from USD 27 billion
in 2012 to USD 220 billion by
2020 and
substantially increase its share
from 8% in 2012 to 20% by
2020. At about 60%, food and
grocery
segment is the highest
contributor to the Indian retail
market followed by the clothing
and fashion segment
which contributes 8%. While
unorganised retailing accounts
for the most of the food and
grocery segment,

penetration of the organised sector is highest in the clothing and fashion

segment at 33%.
(Source Industry Research Reports)
Indian Apparel Market Overview
Clothing and fashion retailing is the second largest contributor to the Indian
retail market with a share of 8%. In the organised retailing market, clothing and
fashion retailing is the largest and the most penetrated segment. It accounts
for roughly one-third of the organised retailing market. Organised apparel
market is growing at a faster pace than the overall apparel retail market, driven
by multiple factors including significant growth in discretionary income and
changing lifestyles. Easy availability of credit and use of plastic money have
contributed to a strong and growing consumer culture in India. Expansion in the
size of the upper middle class and advertisement has led to high brand
consciousness and greater spending on luxury products. Within organized
apparel market, mens category is the largest segment with more than 50%
share. Menswear will continue to dominate the market in years to come,
however, the womenswear and kidswearare expected to grow faster and
enhance their share in the overall expanding pie. With increasing women in the
workforce and thegrowing economic independence of women, the demand for
branded womenswear is growing at a faster pace and is expected to increase
its share to 29% by 2020.
The competitive landscape of Indian organized retail is also rapidly changing. In
September 2012, theGovernment signalled its determination to pursue
economic reforms including allowing FDI in multibrandretail; thus opening up of
the sector for potential investment and expansion of organized retail. However,
just a couple of players have evinced interest in setting up shops in India. Large
global players facing sluggish growth in their local markets are awaiting the
result of General Elections 2014 beforetaking any strategic decision. Another
significant competition entering the industry is online retailers. Apparel Etailing is also gaining increasing traction on the back of factors like increasing
time-poverty, changing lifestyles, convenience and flexibility of shopping from
home.
The other significant change being awaited by the retail sector is notification of
Goods and Service Tax.
It will reduce the tax incidence and complexities of doing business in India.
Supply chain cost, a key
cost item for retailers can be optimized, thus driving profitability.
Business Overview
During the previous financial year 2012-13, the Company acquired the
Pantaloons Fashion business;
post its demerger from Future Retail Limited under a court approved Scheme of
Arrangement. On the
effectiveness of the Scheme on 8th April, 2013, all the net assets and
operations pertaining to the

Pantaloons Fashion business have been transferred, on a going concern basis,

along with debt, to the
Company. The appointed date of transfer was 1st July, 2012. In terms of the
Scheme, the name of the
Company was changed from Peter England Fashions and Retail Limited to
Pantaloons Fashion &
Retail Limited. On receipt of necessary approvals, the Equity Shares of the
Company got listed on the
National Stock Exchange of India Limited and the BSE Limited.
The new management took over the control of the Pantaloons Fashion business
w.e.f. 8th April 2013, i.e.,
on the effectiveness of the Scheme. With an objective of making Pantaloons a
future ready organisation,
following key focus areas were identified by the management.
a) Re-building the organisation
b) Expanding the customer reach
c) Enhancing productivity of the existing stores
d) Strengthening brand portfolio
e) Optimising finance costs
Rebuilding the organization:
In a consumer facing business, an efficient human capital plays acritical role in
the success of the organisation. There is a need to rebuild the organisation
whereby hiring executives at key critical positions across designing,
merchandise, finance, human resource etc.
Expanding the customer reach:
The Company is expanding its stores presence to derive the truepotential
which Pantaloons brand has, by penetrating new markets and reaching out to
more and morecustomers. It launched 14 new Pantaloons stores and 1 factory
outlet during the year taking the totalcount to 81 Pantaloons stores and 26
Factory Outlets as on 31st March, 2014. In fiscal 2014-15, theCompany is
targeting to launch 18 to 20 stores to reach 100 stores mark. The Companys
expansionstrategy is focused on tier-2 and tier-3 cities, while penetrating
deeper into metros.
Enhancing productivity of the existing stores:
With an objective of improving customer footfalls,enhancing sell-through and
sustaining profitable sales growth in the existing stores, 22 stores
wererefurbished during the year through infrastructure and assortment
upgrade. In fiscal 2014-15, the Companyis targeting to refurbish another 21
stores.

Strengthening brand portfolio:

Pantaloons isaiming to emerge as an exclusive brands destination. To
strengthen the high margin private labels portfolio, three new brands were
launched Byford, in mens sportswear category; Alto Moda, in plus-size
category, and Chirpie Pie for infants. These new brands are being built and
popularized through both mass media and in-store promotions. This strategy is
aimed at enriching the product portfolio, thereby, improving the gross margins.
To widen its menswear segment, the Company has also started retailing the
countrys leading brands viz., Louis Philippe, Van Heusen, Allen Solly and Peter
England. These brands are owned by Madura Fashion &Lifestyle, a division of
AdityaBirla Nuvo Limited.
Optimising Finance Costs:
Pursuant to the Scheme, a debt of
Rs. 1,600 Crore was transferred to
the
Company, carrying an average
interest rate of about 13%. To
optimise the finance Cost, the
Company
reshuffled the debt portfolio.
Accordingly, post effectiveness of
the Scheme, the Company raised
term loans of Rs. 600 Crore and
Non-convertible Debentures of Rs.
300 Crore and re-paid Rs. 800
Crore out of the transferred debt.
The average interest cost of the
debt portfolio got reduced to about
10.40% for the fiscal 2013-14.

SWOT
Strengths and Opportunities
Brand leadership
Pantaloons is among the top 3 large format fashion retailers in India. With
continued focus on FreshFashion and catering to varied apparel and nonapparel needs of Indian consumers in a modern retailenvironment, Pantaloons
has emerged as a strong brand in the fashion industry over the past
twodecades. Pantaloons is constantly innovating designs, concepts and
products by infusing the latesttrends in fashion and clothing styles. Pantaloons
operates across varied categories viz., casual wear,ethnic wear, formal wear,
party wear and active wear for Men, Women and Kids. Non-apparel

productsprimarily comprise beauty products, perfumes, cosmetics, leather

products, fashion jewelry, footwear,
watches etc.

Unparalleled reach
Pantaloons retail presence through its own stores across India at the marquee
locations is one of the
highest in the Indian fashion industry. As on 31st March, 2014, it was operating
through 81 large format
Company operated stores. The average size of a Pantaloons store is around
23,000 square feet. However,
depending on the city, location and target market size, the store size varies
between 11,000 square feetto 80,000 square feet. Together with 26 Factory
Outlets, Pantaloons span a retail space (carpet area) of
about 2.0 million square feet which is among the largest in India in the
organised fashion retail segment.
Factory Outlets act as a channel for liquidating slow moving inventory for
Pantaloons. The Company has
been able to tie up real-estate in superior locations to fuel uninterrupted
growth.

Diversified geographical presence

Pantaloons enjoys a pan India presence across all zones with a strong presence
in the Eastern Zone.
Pantaloons commands the first mover advantage in several locations across
East India. Around 55% of the Pantaloons large format stores are present in the
top 8 Indian cities, capturing the large market size opportunity offered by these
cities. Pantaloons also recognises the growing aspirations, changing consumer
preferences towards branded clothing and increasing disposable income in tier
2 and tier 3 cities. It has a fairly balanced presence in these cities with about
45% of its stores being present in these cities.
Strong customer connect
Pantaloons loyalty programmes viz., green card and payback are one of its
main strengths. Led by the strong customer connect of brand Pantaloons and
its loyalty programmes, the Company has around 4.3 million loyalty customer
base at present, one of the largest in the country. It contributes to significant
portion of the Companys sales and augments its competitive advantage.
These loyalty programmes offer reward points to its members on their

purchases, special offers and discounts, and invitations to exclusive events and
promotions.

Focus on superior customer experience

The operations of all the stores are managed by the Company. It continuously
benchmarks itself with global and Indian retailers and strives to enhance the
service offering to customers by achieving retail best practices in line with
emerging trends globally.

Strong brand portfolio

With a vast collection of more than 70 prestigious brands for the discerning
fashionista, Pantaloons
offers an incredible and complete one-stop shopping experience to its buyers.
Pantaloons brand portfolio
runs across a wide gamut of styles that spell class. Some brands are also
retailed under the Shop-inShop format where fixed rentals are charged by Pantaloons. Through a wide
range of brand offerings
across apparel and non-apparel categories and across varied price points,
Pantaloons caters to varying
fashion needs of Indian households.
Owned and licensed brands contributed to 48% of the Companys sales during
2013-14. These comprise
brands owned by Pantaloons viz., Akkriti, Rangmanch, Ajile, Annabelle, Trishaa,
Honey, Chalk, Alto
Moda, Chirpie Pie; as well as brands licensed on a perpetual basis viz. Bare,
Byford, Rig, Lombard,
JM Sports.
Being launched during the second half of the financial year, Madura brands
contributed to 4% of the
Companys annual sales. The balance sales was contributed by other apparel
and non-apparel brands.

Diversified customer base

Menswear and Womenswear together account for about 74% of total readymade apparel market in
urban India. Pantaloons has a diversified customer base with Menswear and
Womenswear contributing
to 35% and 39% share respectively.
Strong parentage
Pantaloons is a part of the Aditya Birla Group, a USD 40 billion Indian
multinational. The Group has
demonstrated capabilities of creating large scale profitable businesses from
scratch as well as building
leadership position in the businesses acquired inorganically. The Group has a
vast experience in promoting
and growing consumer facing businesses and brands in the apparel as well as
non-apparel sectors and
in the process has gained significant consumer insights. Brands like Louis
Philippe, Van Heusen, Allen
Solly, Peter England, Idea Cellular, Birla Sun Life Insurance and Birla Sun Life
Asset Management areamong the leaders in respective categories. Among the
most trusted business houses in India, AdityaBirla Group is well known for its
corporate governance and financial management.

Risks and Threats

Changing consumer preferences
The consumer wardrobe in India is undergoing a rapid change because of
higher spending power, aflooding of apparel brands from other markets of the
world and changing demographics. Comfort fitting,style and rich appeal are
what are being looked at by consumers. Further, the concept of ones
wardrobeis widening with occasion-specific and detail oriented dressing, also
making place along with needbased
dressing. We have a dedicated team of professionals to anticipate and respond
to the changingcustomer lifestyle and preferences trends in a timely manner.
Attracting and retaining talent
Being a consumer facing industry, human capital is the key to the growth of the
business. We value ourstaff and continue to assess both front end and back
end staff for career development, planning andsuccession. The loss of key
personnel or any inability to manage the attrition levels in different
employeecategories may impact the business and ability to grow.

High fixed cost structure

Fashion retailing business has high operating leverage, owing to high fixed cost
structure. Rentals,selling expenses and overheads form a large part of the
operating costs. The ability of the business togarner higher sales on assets
employed is the key to mitigate the risk and generate optimum returns on
investments.
Slowdown in Indian economy
Their business performance is highly correlated with the economy. Any
slowdown in Indian economy may
in turn affect the consumer
spending and therefore business
growth and profitability.
Dependence on real estate
The fashion retail industry is
heavily dependent on availability of
quality retail space at marquee
locationsat affordable rentals. Nonavailability of retail space in timely
or cost effective manner and at
right locationmay hamper the
business growth and profitability
Intensifying competition
There is an intense competition for
marquee location with quality real
estate. Given the growth potential
of Indian apparel retail market,
many global brands have entered
Indian market. Relaxation in FDI
norms
is likely to further intensify the
competition.
Business Performance
The Companys financials for 201213 include nine months financials of
Pantaloons business transferred
to the Company with effect from
the appointed date, i.e., 1stJuly, 2012. Hence, to that extent, performance
is not comparable with that of the current year.

Under the above circumstances Pantaloons was handed over to Aditya

Birla.
However Today in 2014 With sales of Rs 1,661 crore in fiscal 2014, the
department chain is still in the red with a net loss of Rs 187.7 crore.
Revenue
The Company reported revenue at Rs.1,661Crore during fiscal 2013-14. Like to
like stores sales de-grew by 1.6%. Merchandise availability issue and subdued
consumer sentiments impacted the salesgrowth. The Company opened 14 new
Pantaloons stores and closed two stores during the year.
Operating Profit
During the year, business invested in organisation building, stores expansion,
people and processes.
Gross margin improved year on year owing to improved product mix and better
pricing. However, bottom-line was strained, reflecting full effect of organisation
building costs compared to allocation of costs till

Research Methodology

Research design:
A research design is a logical and systematic plan prepared for directing a
research study. The methodology and techniques designed is the program that
guides the investigator in the process of collecting, analyzing and interpreting
data.
The research in this case is exploratory research. Single cross-sectional
study has been used here. Information has been collected from a given sample
of population only once by drawing the sample of respondents from the target
population.
A Research Design consists of the following parameters

Exploratory research will be done on the information collected

Use of descriptive research in conclusion research design to attain the

objective of research through single cross-section design

The measurement and scaling procedure that can be adopted for the
research are dependent on the questionnaire designed and validity or
degree of precision desired.

Questionnaire design

Sampling process and sample size.

Reasons for choosing a particular research design

Exploratory research: Since this research helps to assist the decision

maker in determining, evaluating and selecting the factors which prompt
consumers to buy anti aging products from external sources and reports.

Descriptive

research:

This

method

is

used

by

analyzing

the

questionnaire that had been filled by consumers to find the main factors
among the factors that had been spotted by exploratory research.

Single cross sectional design: Since the data collected in primary

research through administration of questionnaire will be done for one
sample of respondents drawn from the target population of consumers
and this survey will be conducted once.

Secondary data:
Secondary data was collected mainly through the Internet, companies
websites and annual reports and through various business articles.
Primary data:
The Primary Data was collected from the survey which involved getting the
mailed questionnaire filled by various respondents and through direct personal
interview.
Scope of the study:

Area: Metros
Time: 15 days
Product scope : Pantaloons

Defining the target population:

With regards to consumers any individual above the age of 18 to 45 formed the
part of target population
Sampling Frame:
Consumers were selected on the basis of convenient judgmental sampling.
Sample size:
The Sample Size for Consumers is 150

ASSUMPTIONS FOR THE STUDY:

The research is done by not focusing on the effects of time and cost
consideration.

The selected sample unit, sample and sample size will be representing
the target population.

The method of convenient sampling and sample frame selection will not
lead to much error in answers.

Management decision problem:

To retain the loyalty of current customers and to attract new customers.
Management research problem:
To estimate the level of customer satisfaction at pantaloons after it has been
taken over by Aditya Birla Nuvo Limited.
Research Proposal:
PANTALOONS IS FALLING SHORT OF ANNUAL REVENUES DUE TO
DISSATISFIED CUSTOMERS.

PILOT SURVEY
In order to estimate the level of customer satisfaction at Pantaloons, we have a
conducted a pilot survey consisting of ten respondents.
The analysis and findings of the pilot study are as follows:

Q1.

Q2.

Q3.

Q4.

Q5.

INTERPRETATION OF THE PILOT SURVEY

The data collected through this Pilot Survey was found to be insufficient in
serving the objectives of the research. Hence, a broader survey with a larger
sample size of 130 respondents, was conducted to serve the very purpose of
the research.

ANALYSIS AND FINDINGS OF THE FINAL SURVEY

Q1.

Q2.

Q3.

Q4.

Q5.

Q6.

Q7.

Q8.

Q9.

Q10.

INTERPRETATIONS AND RESULTS

1. Price of the items:

This is one of the prime factor which has a huge impact on the
psychology of the customers. As per the survey conducted 85.42%
customers felt that the product offered by Pantaloons are affordable.
2. Convenience in Navigation:
Pantaloons outlets are present at convenient locations and can be easily
reached by the customers. Moreover, customers can easily locate the
products inside the store which enhances their shopping experience at
Pantaloons.
3. Merchandise Display:
Merchandise Display also plays an important role in determining the
customer satisfaction. It is the way of arranging the products in the store
which creates easy geography of the store. According to our research the
customers are satisfied with the store layout at Pantaloons.
4. Transparency in billing
Transparency in billing makes customer more satisfied in terms of
ethical aspect. Customers are mostly satisfied with pantaloons when it
comes to billing as 89.69% of customers believed that the have has
satisfactory billing experience at Pantaloons.
5. Sales persons service
Positive approach or best customer service will increase the sales as well
as customer loyalty. The efficiency and effectiveness of the sales staff will
determine the number of customers a brand is attracting.According to
the research conducted we can easily make out that the satisfaction level
of the customer for sales person service at pantaloons is fairly
satisfactory.
6. Varieties : According to the research conducted the 51.02 % of the
customers believed that the product assortment offered at Pantaloons
was up to the mark.

CONCLUSION
Hence, after conducting the final survey we can conclude that most of
the customers are satisfied with the shopping experience at Pantaloons.
Hence, on the basis of the primary data collected through the survey we
can clearly reject the research proposal made above that Pantaloons is
facing low revenues due to dissatisfied customers.

RECOMMENDATIONS
Over and Above Retail Expansion of larger Geographical areas,
Pantaloons could also focus on changing consumer perception about the
brand that has now taken a face lift under Aditya Birla. Pantaloons
currently falls in between upmarket and mass-priced department chain, It
needs to communicate aggressively that it has changed for the better." It
is now sponsoring Block Buster Movie Endorsements with renewed
fashion lifestyle products addition of New Brands like SF Jeans, Byford,
Candies, Cherpie Pie.

LIMITATIONS

Sample size of 130 units may not be sufficient to draw the accurate
conclusion.
Some important aspects affecting the consumer behavior may not be
covered or revealed in the questionnaire used.

Personal bias of respondents may become a constraint in revealing the

true perception.