INTRODUCTION RETAIL INDUSTRY Retailing consists of the business activities involved in selling goods and services to consumers for their personal, family, or household use. It includes every sale of goods and services to the final consumer.
Retailing as an industry Retailing is world's largest private industry with annual sales over $ 6600 billion. Wal-Mart annual sales over $ 250 billion. It has share of 2.3% of U.S. G.D.P. There are nine retailers in Fortune 100, which highlights the importance of retailing as category. According to a market estimate after agriculture, retail is the largest single sector, both in term of turnover or will as employment in India with market size of $ 200 billion. The report repo rt said the Indian retail industry is in revolution p hase. Organized retailing in India, which account for less than 4%, is likely to grow four fold in the next five years. That means it will grow from current size of around $ 4 billion (Rs. 17,000 Crore) to around $ 15 billion (Rs. 66000 Crore) the neighbourhoods corner shops estimated at 70 million across the country, and village Mela‟s characterize the unorganized an d fragmented nature of retailing in
India. In India the vast middle class and its almost untapped retail industry are the key attractive forces for global retail giants wanting to enter into newer markets,
which in turn will help the India Retail Industry to grow faster. The India Retail Industry is the largest among all the industries, accounting for over 10 per cent of the country‟s GDP and around 8 per cent 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. But all of them have not yet tasted success because of the heavy initial investments that are required to break even with other companies and compete with them. The India Retail Industry is gradually inching its way towards becoming the next boom industry. 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 India. Modern retailing has entered into the Retail market in India as is observed in the form of bustling shopping centres, multistoried malls and the huge complexes that offer shopping, entertainment and food all under one roof. A large young working working population with medium age of 24 years, nuclear families in urban areas, along with increasing working women population and emerging opportunities in the services sector are going to be the key factors in the growth of the organized Retail sector in India. 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. Which in turn will help the India Retail Industry to grow faster? Indian retail is expected to grow 25 per cent annually. Modern retail in India could be worth US$ 175-200 billion by 2016. The Food Retail Industry in
which in turn will help the India Retail Industry to grow faster. The India Retail Industry is the largest among all the industries, accounting for over 10 per cent of the country‟s GDP and around 8 per cent 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. But all of them have not yet tasted success because of the heavy initial investments that are required to break even with other companies and compete with them. The India Retail Industry is gradually inching its way towards becoming the next boom industry. 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 India. Modern retailing has entered into the Retail market in India as is observed in the form of bustling shopping centres, multistoried malls and the huge complexes that offer shopping, entertainment and food all under one roof. A large young working working population with medium age of 24 years, nuclear families in urban areas, along with increasing working women population and emerging opportunities in the services sector are going to be the key factors in the growth of the organized Retail sector in India. 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. Which in turn will help the India Retail Industry to grow faster? Indian retail is expected to grow 25 per cent annually. Modern retail in India could be worth US$ 175-200 billion by 2016. 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 cent 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. The scope of the Indian retail market is immense for this sector is poised for the highest growth in the next 5 years. The India retail industry contributes 10% of the country‟s GDP and its current g rowth rate is 8.5%. In the Indian retail
market the scope for growth can be seen from the fact that it is expected to rise to
US$
608.9
billion
in
2009
from
US$
394
billion
in
2005.
The organized retailing sector in India is only 3% and is expected to rise to 2530% by the year 2010. There are under construction at present around 325 departmental stores, 300 new malls, and 1500 supermarkets. This proves that there is a tremendous scope for growth in the Indian retail market. The growth of scope in the Indian retail market is mainly due to the change in the consumer‟s behaviour. For the new generation have preference towards
luxury commodities which have been due to the strong increase in income, changing lifestyle, and demographic patterns which are favourable. The scopes of the Indian retail market have been seen by many retail giants and that‟s the reason that many new players are entering the India retail industry.
The organized retail sector is divided into two types – In-store retailing and Non-store retailing. The features of in-store retailing are fixed point-of-sale
locations, which are designed to attract a high volume of walk-in customers. Non-store retailers serve the customers at their doorstep. The in-store retail is more prevalent in India. As per Philosopher Professor Dr. Phillip Kotler “retailing includes all the activities involved in selling of goods or services
directly to the final consumers for personal, non business uses. A retailer or retail store is any business enterprise whose sales volume comes primarily from retailing” So in the other words, Retailing is the set of business activities that
adds value to the products and services sold to consumers for their personal or family use. Retailers satisfy consumer needs by offering the right product at the right place and at the right price. Retailers are the final business in a distribution channel that links manufacturers with with consumers. A distribution channel is a set of firms that facilitate the movement of products from the point of production to the point of sale to the ultimate consumer. Manufacturers make products and sell them to retailers or wholesalers. Wholesalers buy products from manufacturers and resell these products to retailers, while retailers resell products to consumers. Wholesalers satisfy retailers' needs, while retailers direct their efforts to satisfying needs of ultimate consumers. Retailing is derived from a French word „RETAILLIER‟ meaning „a piece off‟ or „to cut out‟ or „break bulk‟
According to David Gilbert Any business that directs its marketing efforts towards satisfying the final consumer based upon the organization of selling goods and services as a means of distribution is retail. According to Levy, Weitz retailing is the set of business activities which adds value to the products and services sold to consumers for the personal or family use. Retailing can be referred to all the activities involved in the marketing and distribution of goods and services. Retailing includes
all
transactions in which
the buyer intends to consume Retailing involves selling products and services to consumers for their personal or family use. Department stores, like Hyper City and Reliance Fresh, discount stores like Big-Bazaar and D-Mart, and specialty stores like The Color-Plus, D‟damas and Crossword are all examples of retail stores. Service providers, like dentists, hotels and hair salons, and on-line stores, like Amazon.com, are also retailers. Many businesses, like Raymond‟s, Madura garments, and Arvind Garments are both manufactures and retailers. Regardless of other functions these businesses perform, they are still retailers when they interact with the final user of the product or service.
TOP RETAILERS IN INDIA 1) K. Raheja Group •
Shopper‟s stop
•
Home Stop
•
Mother care
•
Hyper city
•
Crossword
•
Planet M
2) Tata Trent •
Westside
•
Star India Bazaar
•
Landmark
3) RPG Group •
Spencer‟s supermarket
•
Spencer‟s daily
•
Spencer‟s hypermarket
•
Music world
4) Reliance Group •
Reliance fresh
•
Subhiksha
5) Bharti Group
6) Aditya Birla Group 7) Café Coffee Day 8) Future group •
Pantaloons
•
Big bazaar
•
Food bazaar
•
Fashion station
•
All
•
Blue sky
•
E Zone
•
Collection I
•
Home Town
•
Central Mall
9) Godrej Group •
Godrej Aadhar
• Nature‟s Basket
TOP 20 RETAILERS WORLD WIDE Sl. No
Retailers
Sales (US$)
1. 2.
Wal-Mart Stores, Inc
163,532
Carrefour group
52,196.10
3.
The Kroger Co
45,352
4.
Metro A G
44,163
5.
The Home depot INC
38,434
6.
Albertsons inc
37,478
7.
ITM Enterprise SA
36,762
8.
sears, Roebuck and co.
36,728
9.
Kmart Corporation
35,925
10.
Target Corporation
33,702
11.
J.C. penny Company, Inc.
31,503
12.
Royal A hold
31,222
13.
Safeway Inc
30,801
14.
ReweGruppe
30,578
15.
Tesco PLC
30,404
16.
ItoYokado Co., Ltd.
30,237
17.
EdekaGruppe
30,002
18.
Costco Companies, Inc
26,976
19.
Tengelmann warenhandelsgesellschaft
26,509
20.
The daiei, Inc
26,486
Manufacturer
Distributors
Retailers
Consumers
GROUP MISSION 1. We share the vision and belief that our customers and stakeholders shall be served only by crediting and executing future scenario in the consumption space leading to economic development. 2. We will be the trendsetters in evolving delivery formats, creating retail realty, making consumption affordable for all customer segments – for classes and for masses. 3. We shall infuse Indian brands with confidence and renewed ambition. 4. We shall be efficient, cost-conscious and committed to quality in whatever we do. 5. We shall ensure that our positive attitude, sincerity, humility and united determination shall be the driving force to make successful.
CORE VALUES 1. Indianans: confidence in ourselves. 2. Leadership: to be a leader, both in thought and business. 3.
Respect &humility: to respect every individual and be humble in our conduct.
4. Introspection: leading to purposeful thinking. 5. Openness: to be open and receptive to new idea, knowledge and information. 6. Simplicity & Positivity: Simplicity & Positivity in our thought, business and action. 7. Adaptability: to be flexible and adaptable, to meet challenges.
OVERVIEW ON MERCHANDISING Merchandising is the methods, practices, and operations used to promote and sustain certain categories of commercial activity. To ensure sales, companies go to great lengths to make sure that their products are visible in stores and are presented in an appealing, 'sellable' way. This is called merchandising, which includes product packaging, placement, promotions and pricing to appeal to the target market. Merchandising is the practice of making products in retail outlets available to consumers, primarily by stocking shelves and displays. While this used to be done exclusively by the stores' employees, many retailers have found substantial savings in requiring it to be done by the manufacturer, vendor, or wholesaler that provides the products to the retail store. In the United Kingdom there are a number of organizations that supply merchandising services to support retail outlets with general stock replenishment and merchandising support in new stores. By doing this, retail stores have been able to substantially reduce the number of employees needed to run the store. While stocking shelves and building displays is often done when the product is delivered, it is increasingly a separate activity from delivering the product. In grocery stores, for example, almost all products delivered directly to the store from a manufacturer or wholesaler will be stocked by the manufacturer's/wholesaler's employee who is a full time merchandiser
Sometimes a brand of non-media products can achieve enough recognition and respect that simply putting its name or images on a completely unrelated item can sell that item. (An example would be Harley-Davidson branded clothing.) Merchandising, as commonly used in Marketing also means the promotion of merchandise sales, as by coordinating production and marketing and developing advertising, display, and sales strategies to increase retail sales. This includes disciplines in pricing and discounting, physical presentation of products and displays, and the decisions about which products should be presented to which customers at what time. Promotional merchandising Visual merchandising Retail Merchandising In
retail
commerce,
merchandise sales using product
merchandising design,
means
maximizing
selection, packaging, pricing,
and display that stimulate consumers to spend more. This includes disciplines in pricing and discounting, physical presentation of products and displays, and the decisions about which products should be presented to which customers at what time.
Visual merchandising is one of the final stages in trying to set out a store in a way that customers will find attractive and appealing and it should follow and reflect the principles that underpin the store‟s image. Visual merchandising is
the way one displays 'goods for sale' in the most attractive manner with the end
purpose of making a sale. "If it does not sell, it is not visual merchandising." Is the activity of promoting the sale of goods, especially by their presentation in retail outlets? This includes combining product, environment, and space into a stimulating and engaging display to encourage the sale of a product or service. It has become an important element in retailing that is a team effort involving senior management, architects, merchandising managers, buyers, the visual merchandising director, designers, and staff. Visual merchandising starts with the store building itself. The management decides on the store design to reflect the products the store is going to sell and how to create a warm, friendly, and approachable atmosphere for its potential customers.
Retail merchandising is the process used in order to conduct retail sales. As part of the process, the merchandiser pays close attention to the types of products offered for sale, how to best present those products to consumers, and determining what a reasonable retail price is for each unit sold. While retailers have traditionally engaged in the task of retail merchandising in a physical location, the Internet has now made it possible to apply these same basic principles in a virtual setting. The first important step in retail merchandising is establishing working relationships with manufacturers who will provide the goods or services that are ultimately sold by the retailer. This type of retail buying involves determining what products will be carried in the retail establishment, negotiating the unit price that will be charged by the manufacturer, and arranging for the delivery of those goods. Depending on the number of units the retailer can afford to
purchase at a given time, it may be relatively easy to obtain a discounted unit price, making it easier for the retailer to be competitive in the local marketplace. Once the goods are secured, the retailer must determine the unit price that he or she will assign to the products. In all cases, this retail price will be higher than the cost of purchasing the goods from the supplier. It is this difference between the wholesale price and the retail price that allows the retailer to make a profit and remain in business. Some retailers follow a formula of setting the retail price at a fixed percentage above the acquisition price, while others base the retail pricing on factors such as the desirability of the items and the amount of competition from other retailers in the immediate area. After setting the retail pricing, the process of retail merchandising moves on to the task known as setup and display. This process is concerned with displaying the goods within the retail setting to best advantage. By using such devices as display windows, elevated platforms, and colourful backdrops to attract the attention of shoppers, the retailer increases the chances of selling units quickly. Setup and display are often considered especially important with fashion merchandising and similar retail settings, in that the visual display is often the key means of attracting customers who are highly likely to make a purchase. Quick sales lead to higher profits and the chance to secure more products that will result in more sales. Marketing is an important aspect of any retail merchandising strategy. Engaging in a publicity campaign to reach prospective customers may involve something as simple as advertising in local publications as well as electronic advertising on
local radio and television stations. Direct mail is also a common strategy in retailing, as the mailings make it possible to reach people in their homes and places of business rather than relying on them to approach the retailer first. In order to be successful with retail merchandising, it is necessary to provide consumers with a couple of key benefits. First, the products must be of high quality; this helps to ensure the customer will return for more purchases in the future. Along with the quality, the retailer must also sell the products at prices the consumer finds reasonable. By providing quality products at affordable prices, the retailer has a much better chance of standing out from the competition and remaining in business for many years to come.
RETAIL IN INDIA The retail industry in India is largely unorganized & predominantly consists of small, independent, owner managed shops. Retailing is INDIA‟s largest industry
in terms of contribution to GDP & constitutes 13% of GDP. There are around 5 million retail outlets in India. There are also an uncounted number of low cost kiosks (tea stalls, snacks centre, barber shops, etc) & mobile vendors. Total retail sales area in India was estimated at 328 million sq.mt.in 2001, with an average selling space of 29.4sq.mt. per outlet. In India the per capita retailing space is about 2 sq. ft, which is quite low compared to that of developed economies. In 2000, the global management consultancy AT Kearney put retail trade at Rs.400000 crore, which is expected to increase to Rs.800000 crore by year 2005 – an annual increase of 20%. According to the survey, an overwhelming
proportion of the Rs.400000 crore retail market is unorganized. In fact only an Rs 20,000 crore segment of market is organized. There is no integrated supply chain management outlook in Indian traditional retail industry. Food sales constitute a high proportion of the total retail sales. The share was 62.7% in 2001,worth apprx. Rs 7032.2 billion, while non food sales were worth Rs.4189.5 billion. However the non-food retailing sector registered faster year on year growth than the food sales sector. The trend to market private labels by specific retail store is catching on in India as it helps to improve margins. The turnover from private labels by major retail chains was estimated at around Rs 1200 million in 2001.
CURRENT SENARIO OF INDIAN RETAIL: Unorganized market; Rs. 583,000 crores. Organized market; Rs. 5,000 crores. 5 x growths in organized retailing between 2000 to 2005. Over 4000 new modern outlets in last 3 years. Over 5,000,000 sq. ft. of mall space under development. The top 3 modern retailers control over 750,000 sq. ft. of retail space. Over 400,000 shoppers walk through their doors every week. Growth in organized retailing on par with expectations and projection of the last 5 years: on course to touch Rs. 35,000 crore or more by 200506.
GROWTH IN RETAIL OUTLETS (MILLIONS): Year
Urban
Rural
Total
1978
0.58
1.76
2.35
1984
0.75
2.02
2.77
1990
0.94
2.42
3.36
1996
1.80
3.33
5.13
Source: www.indiainfoline.com
COMPOSITION OF URBAN OUTLETS: Retail outlet
Composition
Grocers
34.7%
Cosmetic stores
4.0%
Chemist
6.3%
Food stores
6.6%
General stores
14.4%
Tobacco, pan stores
17.0%
Others
17.0%
Source: www.indiainfoline.com
COMPOSITION OF RURAL OUTLETS: Retail outlet
Composition
Grocers
55.6%
General stores
13.5%
Chemists
3.3%
Others
27.6%
Source:www.indiainfoline.com
RETAILING IN INDIA Diversities differentiate itself from the standard development of modern retail anywhere in the world. Conventionally, retailers focus on homogeneity and continuity in order to derive benefits of scale and efficiency in their system. Globally, retailers develop two or three major formats which are largely standardized, may not work in India. Significantly large, truly pan Indian, multiform at modern retailing model needs to be developed in India. The Indian market will provide the footsteps to develop a model for globalizing retailing. This will be the biggest contribution of Indian retailers to the world. Indian retailers can establish „thought leadership‟ is in the field of technology. Unlike in developed countries, Indian retailers do not have „legacy systems‟ on which
they have to build their technology platform. As retail grows and develops fresh technology led solutions, India will take a leap and the next generation retail technology solutions may well come out of India.
Usage of RFID and the next practices in technology based retail solutions may well emerge from Indian retailing. Indian retailers would do well to develop their own systems and benchmarks that are admired and followed the world over.
Opportunity In retail sector Retailers inspired by the Wal-Mart story of growth in small town America are tempted to focus on smaller towns and villages in India. However, a careful analysis of the town strata wise population, population growth, migration trends and consumer spend analysis reveals a very different picture for India. As per our estimates, the share of the 35 towns with a present population of greater than 1 million in India's total population would grow much faster than their smaller counterparts, from 10.2 per cent today to reach 14.4 per cent by 2025. Simultaneously, the share of these towns in the overall retail market would grow from 21 per cent today to 40 per cent by 2025. Within these top 35 towns, an estimated 70 to 80 per cent of retail trade could be in the organised sector. This is similar to the experience in China, where in cities like Shanghai and Beijing, the organised sector accounts for 70 to 80 per cent of overall retail trade in certain categories. Retailers should therefore focus on the top 37 towns in the next decade, as the opportunity in smaller towns and rural India would be smaller and more fragmented, compared to the larger towns.
Organised retail market in India
In CETRAL for loyalty scheme there is a card named “FUTURE CARD”. This card we called it as a credit card which is powered by ICICI CREDIT card. The customer can collect it from any ICICI bank branch or from any PANTALOON‟S outlets. It‟s a vailable all over. This future card can be
applicable in any store or mall comes under FUTURE GROUP. Anyone whose monthly income is above min.5000 can be a part of this loyalty card.
Aaj se kharchey ban gaye kamai !
This is the slogan of the future card. Apart from this Central‟s goes with various loyalty services such as FREE
redeem of parking coupons, free alteration to all customers, sometimes free home delivery to customers etc. this is the loyalty scheme run by CENTRAL.
The main benefit beyond this future card is you can use this card in various outlets run by FUTURE GROUP! Apart from this as we talk about other player in retail sector SHOPPERS STOP having FIRST CITIZEN CARD. INDIA BULL MEGA STORE having PPC (pyramid power club) which goes with loyalty card. Before FUTURE CARD there was CENTRAL CARD which is only applicable for CENTRAL‟S purpose. It is a loyalty card for CENTRAL‟S customers. Following are some details about CENTRAL‟s card.
Exclusive Benefits Get 0% EMI option for purchases more than Rs. 3,000/at Central. Get free gift voucher of Central worth Rs. 250/with the offer booklet. Earn 4 reward points for every Rs.100/spent at Central. Also earn 1 reward point for every Rs. 200/spent at merchant establishments other than Central. Priority Payment Counters at Central for cardholder to save valuable time. Cardholder gets priority to view the product launches and seasonal collections at Central. Up to 10% discount to all cardholders restaurants within Central, on bills of Rs. 250/and above. Get 12 free coffee vouchers on approval of card. The Cardholder will get access to select airport lounges across the country with complimentary snacks and non-alcoholic beverages. All the benefits of Solid Gold Card. These were all the benefit provides by CENTRAL‟S card.
After that PANTALOON introduces FUTURE CARD for all its stores. Future card is powered by ICICI BANK (CREDIT CARDS). Future card is like a retail credit card. Lots of offers & gifts are there on the FUTURE CARD.
BRANDS BIG BAZAAR
GIFTS & OFFERS 1st 3 months 15% off on fashion 1st 3 months 10% off on general Merchandize.
FOOD BAZAAR
1 KG Food bazaar sugar free 1st 3 months 3% off on foods.
PANTALOONS
Rs.100 off on apparel purchase of Rs. 500 or get a Tshirt worth Rs. 299 on apparel purchase of Rs. 1000 Rs. 50 off on Rs.1000 & above purchase. For 1st 3 months Rs. 250 off on Rs. 2500 & above purchase.
CENTRAL
BRAND FACTORY
Rs. 50 off on Rs. 1000 & above purchase. For 1st 3 months Rs. 250 off on Rs.2500 & above purchase.
DEPOT
Rs .50 book free from exclusive depot collection per month.
SHOE
Shoe polish/socks FREE on Rs. 100 per month.
MPORT/GENM
Airtel live VAS cards ( worth Rs. 500 content FREE) Rs. 249 Spalding/Converse cap FREE on purchase of Rs.111 & above per month.
PLANET SPORTS F123/CO
1 video game FREE per month with load of min. Rs. 50
TOP 10
Rs. 200 off on Rs. 1000 & above purchase.
HOME TOWN
Gift worth Rs.250 for every Rs. 1000 & above spent per month. Get gift worth 7.5% of purchase above Rs. 10,000 at HOME TOWN.
STAR SITARA EZONE
&
1 time foot massage FREE per month.
FUTURE BAZAAR.COM
A head phone worth Rs. 199 with purchase through FUTURE CARD at eZONE. A Future card & futurebazaar.com MUG worth Rs.50 on 1st purchase every month.
BOMBAY
10%15% off on total bill amount.
BLUE COPPER CHIMNEY YATRA
10%15% off on total bill amount
PENNE
10%15% off on total bill amount
SPAGHETTI
10%15% off on total bill amount
10%15% off on total bill amount
THE APOLLO CLINIC For 1st 3 months 50% discount on a range of special FUTURE CARD & Apollo health checkups. 15% off on health check up. 20% off on diagnostics checkups. HP Get 2.5% surcharge waiver on fuel purchases at select HPCL outlets. LILLIPUT 10% discount for Future card holders on all Lilliput apparels & accessories. 15% discount on all Lilliput footwear. VLCC Inaugural offer: 1 face / body firming session plus counseling worth Rs. 2000 FREE. Regular offer: slimming/beauty/hair package 30% flat discount. Regular offer: beauty services 30% flat discount. Regular offer: 15% off on RBS(salon services) TRAVEL PORT 15% off on Domestic packages 10% off on Weekend breaks. 12.5% off on INTERNATIONAL packages.
List of brands in FUTURE CARD These are all details about FUTURE CARD. These are all offers which are provided by FUTURE CARD. This is first time in INDIA that any company providing such type of LOYALTY CARD which any 1 can use in number of brands. These types of card really change the mind of customer towards the LOYALTY.
LITERATURE REVIEW
REVIEW OF CONCEPT AND THEORIES: FIRSTLY WE DISCUSS ABOUT WHAT IS CUSTOMER LOYALTY? SHETH & MITTAL have defined customer loyalty as “a customer‟s
commitment to a brand, store or supplier based on a strong favourable attitude & manifested in consistent repatriate”
Strong
Behaviour
Weak
The above given definition of customer loyalty includes both behaviour & attitude, which can result in four possible situations as shown in above fig. (Grahame R. Dowling, Australian Graduate School of Management) When both attitude & behaviour are weak, it means no loyalty exists, weak attitude indicates the customer may not have any liking for the brand & the
store. While weak behaviour means that the purchase of the brand or visiting the store is sporadic. When the attitude & behaviour are strong, it means that the customer has a strong brand or store loyalty. The remaining two situation cases are interesting. When behaviour is high but attitude is low, it can be said that the customer has spurious loyalty, i.e. the customer may buy the same brand again & again or shop at same store regularly but may not have a preferential attitude towards it. Very often in such instance the choice of the brand or store may due to convenient location or the customer loyalty is incidental & not yet well founded, he or she may easily switch brands change stores if given more choice or interesting price deals. Thus the retailers or marketers would have to make efforts at strengthening the customer‟s perception of the brand‟s or store‟s
image. In the quadrant with strong attitude & weak behaviour, the customer can be said to be having latent loyalty. The customer likes the brand or store but is unable to buy or visit the same probably because the price is too high or he or she lacks accessibility to the brand or the store. Thus in such instances , the retailers or marketers needs to reduce whatsoever barriers & tap the hidden potential of the market. Retailers are beginning to focus their attention on encouraging customers to visit outlets, treating them to attractive promotions, thus adding more value to their best customers & satisfying them in the process. For to the retailers, customer loyalty will indicate that customer are committed to purchasing merchandise &
services from them & will resist the activities of competitors attempting to attract their patronage. The term customer loyalty is used to describe the behaviour of repeat customers, as well as those that offer good ratings, reviews, or testimonials. Some customers do a particular company a great service by offering favourable word of mouth publicity regarding a product, telling friends and family, thus adding them to the number of loyal customers. However, customer loyalty includes much more. It is a process, a program, or a group of programs geared toward keeping a client happy so he or she will provide more business. Customer loyalty can be achieved in some cases by offering a quality product with a firm guarantee. Customer loyalty is also achieved through free offers, coupons, low interest rates on financing, high value trade-ins, extended warranties, rebates, and other rewards and incentive programs. The ultimate goal of customer loyalty programs is happy customers who will return to purchase again and persuade others to use that company's products or services. This equates to profitability, as well as happy stakeholders. Customer loyalty may be a onetime program or incentive, or an ongoing group of programs to entice consumers. Buy one get one free programs are very popular, as are purchases that come with rebates or free gifts. Another good incentive for achieving customer loyalty is offering a risk free trial period for a product or service. Also known as brand name loyalty, these types of incentives are meant to ensure that customers will return, not only to buy the same product again and again, but also to try other products or services offered by the company.
Excellent customer service is another key element in gaining customer loyalty. If a client has a problem, the company should do whatever it takes to make things right. If a product is faulty, it should be replaced or the customer's money should be refunded. This should be standard procedure for any reputable business, but those who wish to develop customer loyalty on a large scale basis may also go above and beyond the standard. They may offer even more by way of free gifts or discounts to appease the customer. Some of the common bases for attracting customers are having dedicated employees, variety, unique merchandise & superior customer service. But the challenge for the retailer is to have a loyal database of customer, who will be unwilling to switch their loyalty. The strategies are built after: 1 Developing clear & specific positioning strategies. 2 Making customer develop an emotional attachment with the retailer‟s product offerings.
Ten Tips to Build Customer Loyalty: The key to a successful business is a steady customer base. After all, successful businesses typically see 80 percent of their business come from 20 percent of their customers. Too many businesses neglect this loyal customer base in pursuit of new customers. However, since the cost to attract new customers is significantly more than to maintain your relationship with existing ones, your efforts toward building customer loyalty will certainly payoff. (Mark Uncles, School of marketing University)
Here are ten ways to build customer loyalty: 1 Communicate. Whether it is an email newsletter, monthly flier, a reminder card for a tune u , or a holiday greeting card, reach out to your steady customers. 2 Customer Service. Go the extra distance and meet customer needs. Train the staff to do the same. Customers remember being treated well. 3 Employee Loyalty. Loyalty works from the top down. If you are loyal to your employees, they will feel positively about their jobs and pass that loyalty along to your customers. 4 Employee Training. Train employees in the manner that you want them to interact with customers. Empower employees to make decisions that benefit the customer. 5 Customer Incentives. Give customers a reason to return to your business. For instance, because children outgrow shoes quickly, the owner of a children‟s shoe store might offer a card that makes the tenth pair of shoes half price. Likewise, a dentist may give a free cleaning to anyone who has seen him regularly for five years. 6 Product Awareness. Know what your steady patrons purchase and keep these items in stock. Add other products or services that accompany or compliment the products that your regular customers buy regularly. And make sure that your staffs understand everything they can about your products. Read Know Product Basics for more.
7 Reliability. If you say a purchase will arrive on Wednesday, deliver it on Wednesday. Be reliable. If something goes wrong, let customers know immediately and compensate them for their inconvenience. 8 Be Flexible. Try to solve customer problems or complaints to the best of your ability. Excuses? Such as "That's our policy”? Will lose more customers
then setting the store on fire. Read our 60 Second Guide to Managing Upset Customers for more information. 9 People over Technology. The harder it is for a customer to speak to a human being when he or she has a problem, the less likely it is that you will see that customer again. 10 Know their Ames. Remember the theme song to the television show Cheers? Get to know the names of regular customers or at least recognize their faces.
Building loyalty through advocating certain essential factors: Customers are constantly changing & their expectations also rising. Consumer behaviour in the organised retail industry has altered drastically in the last few years. The retail market is growing not only in terms of nos. but also in terms of stature, image & class. Alongside with Indians becoming world class service. So it becomes vital for retailers to pay attention to every little detail in order to be successful. This can be done by providing a good brand & store experience. For this in general the retailer will have to look into various aspects such as:
Timing of the store In store design & layout Welcome the customer receives The ability to browse easily The behaviour & product knowledge possessed by sales persons The facility for making payments The attractiveness of the loyalty programs The packaging & the exit. All these above aspects are really very important for the customer to experience delightful shopping experience in the mall. If not handled well, it could result in a disgruntled consumer, who will spread a bad word-of-mouth. On the contrary, if the overall brand & store experience is positive & pleasant, the retailer may gain a flow of customer who would likely to patronize the outlet again & again. Further it is also likely that the popularity of the store increases through word of mouth.
Strategies to improve CUSTOMER LOYALTY in organization Strong customer service is the bedrock for creating loyal customers. Make it a priority by properly training your staff and continually reinforcing the message that the customer comes first. You can also let your customers know that you value their business by reaching out to them through newsletters, postcards, and email, so they're aware of seasonal sales and special products. Install a strategy
for responding to customer inquiries and complaints and create a fair, flexible return policy. Finally, once you've developed a rapport with loyal customers, you can reward them with special discounts on products or services. Loyalties schemes are different for different organizations. Basically loyalty schemes are there for the existing customers or for coming customers for their benefits. In the study carried out by A. C. IELSO Company of BRITISH super market shoppers on the basis of their attitude towards price & promotions, five groups of customers were identified:
BRADED EVERY DAY LOW PRICING (ELDP) SEEKERS (19%) : These customers were strapped for cash due to limited income, so they shop around to get the best price on their favourite brands, generally seeking ELDP instead of promotions which may require them to alter their buying patterns i.e. they go for bulk purchases. Such customers are low on store loyalty but high on brand loyalty.
LOWPRICE FIXTURES FERRETS (23%): These customers are young families with strained financial expenses due to growing expenses due to growing expenses like mortgage etc. they are very budget conscious ,though dislike bulk purchases, they seek price deals & use coupons .They respond well to store loyalty schemes but tend to switch brands although they may spend a lot on store brands.
PROMOTIO JUKIES (18.4%): These customers will do anything to get the lowest shopping bill they find a thrill in finding bargain sale & take pride in telling others where such sales take place. They may switch between rational & store brands, having loyalty neither for the brands. Thus retailers & marketers will not earn any long term gain from such customers. STOCKPILERS (21%): These customers are affluent & are unconcerned about the size of their bill. They select stores based on the location, product assortment. & product quality rather than price or promotions. They may take advantage of the promotions on their favourite brands, happily buying in bulk to stockpile & save money, although they may not switch brands. They can easily be the retailers delight since they may be loyal to both brands & stores. PROMOTIONALLY OBLIVIOUS (18.3%): This group is basically driven by habit, settled on brands & stores & not interested in exploring better deals. They may occasionally indulge in soft deals such as free items or coupons but dislike aggressive promotions & deals. So they reliable to a certain extent.
FACTORS ESSETIAL FOR BUILDIG STORE LOYALTY 1. Make shopping a delightful experience. 2. Offer spice of variety under single roof. 3. Understand customer needs & provide a mutually beneficial customer service. 4. Provide physical appeal Leading to store brand loyalty
5. customer complaint handling & +ve attitude E S S E N 6. Build customer loyalty through adopting multi chann el retailing. 7. Adopt innovative or unique concept to please the customer.
THIS IS ALL ABOUT THE CUSTOMER LOYALTY IN RETAIL SECT OR.
RESEARCH METHODOLOGY
INTRODUCTION: Research methodology is a way to systematically solve research problem. In it we study the various steps that are generally adopted by researcher in studying his research problem along with the logic behind them. It is necessary for a researcher to know not only the research methods/techniques but also the methodology. It may be noted, in the context of planning & development that the significance of research lays in its quality and not in quantity. Researchers should know how to apply particular research techniques, but they also need to know which of these methods or techniques, are relevant and which are not, and what would they mean and indicate and why.
OBJECTIVES OF THE STUDY: PRIMARY OBJECTIVE: 1 Study about the LOYALTY schemes adopted by the retailers. 2 Study the customer approach towards the retailers. 3 Study about the floor operations in shopping centres. 4 Comparative analysis of all retailers in this section to differentiate with other competitors.
SECODARY OBJECTIVE: 1 Understand the customer behaviour inside the retailers. 2 Customers‟ expectation from the retailers. 3 Gather the information about all the competitors. 4 All details about the loyalty scheme in retail sector.
There are various stages to solve the research problem as shown in following diagram
Rational / Scope of Study
Research Design ●Research Methodology ●Type of Research
Sampling Design ● Technique of Sampling ●Sample Population ●Sample Frame ●Sample Size
Data Collection ● Primary Data ● Secondary Data
DATA COLLECTION: PRIMARY SOURCE: The method of data collection is done by the way of survey; this is a process whereby first hand information is collected. This method is needed for meeting the specific objective of research study. Primary data was in the form of filled structured questionnaire by customers. In first section of the questionnaire, data was collected about customer‟s feedback about
LOYALTY CARD. The purpose of second section of the questionnaire was to identify the perception of the customers regarding various retailers, so that a comparative analysis could be performed.
SECONDARY SOURCE: The secondary data was collected in the form of company profile and product profile from the Web Site of PANTALOONS. Some other Web Sites were also referred. For collecting the required data the CSA‟S of the mall were also consulted. The data has helped in ascertaining the
strategies and approaches of major players in market. Thus the study involved collection, analysis and interpretation of a lot of data relating to this sector. The data is collected from various sites, books, journals, etc.
SAMPLE DESCRIPTION: After deciding on the research approach and instruments, the marketing research must design the sampling plan: 1 SAMPLING SIZE: The target for this the customers who come for shopping inside the mall. Sample size of the study is 200 customers who come for shopping inside the Shop.
2 SAMPLE SELECTION PROCEDURE: Since it is the survey of customer, to obtain an unbiased result the customers sample from the population were interviewed randomly. So the sampling technique chosen for the research is Random sample technique. Every customer inside the mall had an equal chance of being interviewed. Convenience sampling method was adopted for this study. 3 SAMPLE UNIT: The customers who come for shopping inside the Shop is the sample unit. 4 CONTACT METHOD: Personal approach to each and every customer for all surveys and interviews were the Contact method used for obtaining a proper and detailed feedback. A face-to-face Interaction took place with each sample representative. The data collected through questionnaire was properly classified and tabulated in the form of a report. These reports formed the basis for the comparative analysis and drawing inferences there from. From 5
FIELD WORK: The fieldwork was conducted for a period of 15 days for
both the research. Interviews were conducted inside the mall by face – face interviewing.
HYPOTHESIS AND TESTING
HYPOTHESIS STATEMENT: H0= Brands do not have a significant impact on consumer‟s purchase behaviour. H1= Brands do have a significant impact on consumer‟s purchase behaviour. HYPOTHESIS
TESTING
USING
THE
CHI
SQUARE
(Χ2)
DISTRIBUTION
A chi-squared
test,
also
referred
to
as chi-square
test or
test,
is
any statistical hypothesis test in which the sampling distribution of the test statistic is a chi-squared distribution when the null hypothesis is true, or any in which this is asymptotically true, meaning that the sampling distribution (if the null hypothesis is true) can be made to approximate a chi-squared distribution as closely as desired by making the sample size large enough. Chi Square is a test of significance based on bivariate tables. We are looking for significant differences between the actual cell frequencies in a table (f o) and those that would be expected by random chance (f e).The data are often presented in a table format. If starting with raw data on two variables, a bivariate table must be created first.
Calculating the test-statistic The value of the test-statistic is
Where
= Pearson's cumulative test statistic, which asymptotically approaches a distribution. = an observed frequency; = an expected (theoretical) frequency, asserted by the null hypothesis; n = the number of cells in the table.
Fig.6.1 showing degree of freedom Chi-squared distribution, showing X 2 on the x-axis and P-value on the y-axis. The chi-squared statistic can then be used to calculate a p-value by comparing
the value of the statistic to a chi-squared distribution. The number of degrees of freedom is equal to the number of cells , minus the reduction in degrees of freedom, The result about the number of degrees of freedom is valid when the original data was multinomial and hence the estimated parameters are efficient for minimizing the chi-squared statistic. More generally however, when maximum likelihood estimation does not coincide with minimum chi-squared estimation, the distribution will lie somewhere between a chi-squared distribution with
degrees of freedom. (C. R. Kothari, 2nd edition
and
1985)
We have tested the hypothesis in the research using Chi – square test. Brand loyalty according to gender in retail sector.
Particulars
Male Respondent
Female Respondent
Total Respondent
Yes
125
25
150
No
37
13
50
Grand Total
162
38
200
Since, the calculated value of my hypothesis is 161.4 which are greater than the degree value of 0.15911 hence alternative hypothesis is accepted.
ANALYSIS AND INTERPRETATION OF DATA Section A: Objective: To collect whole detail about the awareness of customers towards FUTURE CARD.
Sample size: 200 customer s 1) Age of the customer
INTERPRETATION: From the above chart we can say that on the basis of age group of the costumer 25 to 35 years aged people prefer to go with CENTRAL‟S. And remaining people come after that.
2) Gender of the customer I. II.
Male Female
INTERPRETATION: From the above chart it explains that male gender more often visits as compares to female. Thus we can say that the gent‟s costumers are
more loyal than ladies.
3) Income range of the customer (per month)
OPTIONS
RESPONSE
>15000
12
20000 to 25000
62
25000 to 30000
56
30000 above
70
TOTLE
200
INTERPRETATION: From the above chart it determines us that people are having income level in brackets limits of Rs. 30000 and above usually purchases big brands at are significantly more loyal than those customers who are having less earnings and low purchasing power. After interpreting the chart we came to know that 35% people are satisfied with the CENTRAL‟S as compared to other
stores in Bangalore.
4) Are you aware of „Future Card‟ Loyalty programme
OPTIONS
RESPONSE
Yes
60
No
140
TOTAL
200
INTERPRETATION: From the above chart it states that due to lack of knowledge amongst retailers 70% people do not know about the card loyalty programmes and other useful related information including schemes regarding spreading of customer awareness therefore maximum no of retailers prevailing in central are unable to educate costumers about this subject of loyalty programme.
5) Do you have FUTURE CARD
OPTIONS
RESPONSE
Yes
150
No
50
TOTAL
200
DO YOU HAVE FUTURE CARD
INTERPRETATION: According to above mentioned chart it describes us that because of the 75% customers are ignorant about the matter of future cards and also doesn‟t known to any idea referring benefits of the card loyalty
programmes. Such that customer post purchase behaviour is dark. and other are loyal customers.
6) Are you interested to be a part of FUTURE CARD?
OPTIONS
RESPONSE
Yes
150
No
50
TOTAL
200
INTERPRETATION: This chart shows us that after getting knowledge on future card through various means and source now 75% customers are very much eagerly interested to participate in these card loyalty programmes anxiously and remain 25% are already have future card.
7) Reasons for not being aware of FUTURE CARD
OPTIONS
RESPONSE
Don‟t have any idea
70
Not inform by any CSA
60
Don‟t have any display
70
TOTAL
200
INTERPRETATION: Probably the main reason behind not having (35%) future card awareness is perhaps (35%) retailer are less motivated and dedicated of upholding and maintaining the customer through card loyalty programme for future period.
8) How often do you buy apparels (clothes)
OPTIONS
RESPONSE
Once a year
25
Once a month
35
Twice a month
65
Thrice a month
75
TOTAL
200
INTERPRETATION: From the above chart it depicts that due to good apparels and good discount offers and other superb deals, 34% customer tends to buy clothes thrice a month from these shops and 30% customer come from shopping.
9) From where do you buy your apparels (clothes) OPTIONS
RESPONSE
Pyramid
60
Central
80
Shoppers Stop
50
Mega mart
10
TOTAL
200
INTERPRETATION: This chart emphasizes us that central is the first choice undertaken by the customer apart from any other shopping malls because 40% customer goes with central and 30% goes with Pyramid.
10) How much do you normally spend on apparels (clothes) bought from shopping malls in a single shopping?
Less than 500
32
Between 500 to 1000
43
Between 1000 to 2000
47
Between 2000 to 5000
43
More than 5000
15
Not Applicable
20
THIS RESEARCH IS BASICALLY FOR THE LOYALTY SCHEMES. This section of the questionnaire is totally about loyalty card in CENTRAL‟S.
Section B of the questionnaire has been designed to collect data about the comparative analysis among the competitors.
Section B: This annexure depicts the collected data for COMPARATIVE AALYSIS with respect to other stores. Sample size: 200 customers.
PARAMETERS CENTRAL SHOPPERS PIRAMYD WESTSIDE MEGA STOP MART Price
68
29
34
23
46
Brands Available
79
34
45
17
25
Product Range
67
23
42
34
34
Trial Rooms
87
17
23
43
30
Offers
78
21
72
12
17
Customer Service
85
34
46
23
12
Parking
98
23
33
32
14
Store Layout
103
22
36
29
10
Events
110
32
34
18
06
Ambience
98
12
54
23
13
Food court
167
08
10
10
05
Loyalty scheme
33
75
80
12
00
Q.1- Which store you find the price best?
INTERPRETATION: From the above chart we can say that on the basis of price as a parameter 34% people likes to shop in CENTRAL‟s. The main reason
behind is the in house brands of PANTALOONS which are really very affordable to everyone who comes for shopping & wide range of options & sufficient space for each and every brand & good service. As compare to price range there is close competition. So CENTRAL has to keep focus on each & every brands.
Q.2- Which store you find that there is a good range of brands available?
INTERPRETATION: From the above chart we can say that on the basis of brands available 39% people prefer to shop in CENTRAL‟s. The reason is
availability of various brands as well as various in-house brands. As compare to other competitors CENTRAL‟S have more space for each and every brand, wide
range of options.
Q.3- Which store has a good product range available?
INTERPRETATION: From the above chart we can say that on the basis of product range 33% people prefer to go with CENTRAL‟S. It has a good range of
products as various in-house brands are also available with economical prices. They can still improve upon by getting various other brands and introducing various in house brands.
Q.4- Which store has a good trial room facility?
INTERPRETATION: After interpreting the chart we come to know that 43% people are satisfied with the trial rooms at CENTRAL‟S as compared to other stores in Bangalore. So CENTRAL‟S should maintain the service of trial room
in the same manner. Another reason is enough space in each trial room, which made by latest technology.
Q.5- Which store has got good promotional offers?
INTERPRETATION: After interpreting the chart we come to know that 39% people feel the offers in CENTRAL‟S are really good & attractive. So customers are satisfied with the offers that CENTRAL‟S launches at regular intervals.
\
Q.6- Which store provides the best service?
INTERPRETATION: Taking into consideration the above statistics we can see that 42% people feel that the service (free alteration, exchange policy, staff suggestions, redeem parking coupon etc.) given by CENTRAL‟S are much
better as compared to other stores in Bangalore. So they should keep enhancing the loyalty program and should keep in mind that customer is the king so we need to provide best services to keep the customers loyal.
Q.7- Which store has a good parking facility?
INTERPRETATION: We can interpret from the above chart that 49% people find that parking is not a problem at CENTRAL‟S. As compared to other stores in Bangalore, only CENTRAL‟s has its own space for parking other than others,
because they are parking on the sharing basis. Its parking is in basement that why customers get more space for parking. While paying the shopping bill they can redeem the parking coupon. There is the lift facility for customers to the basement. In central‟s they provide valet parking also which is not there in other
stores in Bangalore.
Q.8- Which store has a good store layout?
INTERPRETATION: We can interpret from the above chart that 54% people feel that it is comfortable to move around in the store. The items in the store are visible and it‟s convenient to shop. Each section gives enough space that
customers can easily go and select their favourite item. In CENTRAL mall each section is divided in to various sections. There is food court also which also encourage customer to shop inside the mall.
Q.9- Which store has organized good events?
INTERPRETATION: We can interpret from the above chart that 55% people feel that events organised in CENTRAL‟S is better than other stores in Bangalore. During my internship we organised various events such as “YOUTH BUZZ” in this we organise SALSA DANCE competition, “DENIM EXCHANGE MELA”, “electronic AUCTIONS” etc. In all these events there is
huge response of customers because of that during those days sale of the mall also increases.
Q.10- Which store has good ambience?
INTERPRETATION: We can interpret from the above chart that 49% people feel that ambience in CENTRAL‟S is better than other stores in Bangalore. Basically CENTRAL‟s pays more attention towards the customer‟s requirement
what they want? What are their expectations towards the mall?
Q.11- Which store has good food court?
INTERPRETATION: We can interpret from the above chart that 83% people feel that events organised in CENTRAL‟S is better than other stores in Bangalore. Because only CENTRAL‟S goes with the concept that “shop, eat & celebrate”. That is the slogan of Central‟s. Other stores not allow any type of
food stuff inside the mall. That the reason why there is huge approach of customers in CENTRAL‟S.
Q.12- Which store has good loyalty scheme?
INTERPRETATION: We can interpret from the above chart that 40% people go with Central‟s. Central‟s has to keep more attention towards this.
FINDINGS OF THE STUDY
From this above given questionnaire following are the observations & recommendations.
Observations: 1 From this research, there is majority no. of customers who buys more than 3 times in a month as compare to other customers. So these customers are loyal customers for CENTRAL‟S. No of other customer who buys more than 2 times,
1 time in a month is also there. These are also the targeted customers for the CENTRAL‟S.
2 There were higher percentages of customers who like to buy from CENTRAL as compared to other competitors. (Pyramid, shoppers etc.) Means majority of customer like to shop from CENTRAL‟ which also reflects the loyalty of the customers. So by organizing some events or with good product range & discounts, these remaining customers get diverted towards CENTRAL. 3 As per the data collected through this survey, we can say higher no. of customers is youngsters. Along with professionals, businessmen etc. between the age group 25 to 35. 4 Majority of females customers are there, as compared to male customers. 5 As per income range is concern, majority of customers are high class customer‟s means income (30000+/month).who loves to shop in CENTRAL‟s.
They are really brand conscious and loyal customers. 6 There is higher no. of customers who spend more than Rs. 3000 or above for their one time shopping. Some customers even shop for more than RS.10000 also which again reflects the loyalty of the customers.
Another objective behind this study was to understand the customer‟s awareness about FUTURE CARD. As per the data collected by questionnaire, it was disappointing to see the result that is only 30% customers were aware about the FUTURE card. The main reason behind it is that they don‟t have any idea about
FUTURE CARD. Only few of them know about it. The main reason behind this is, there is no display inside the mall for FUTURE CARD. All the employees working over there are not aware of that, among 200 customers only 30% customers have the FUTURE CARD. More than 70% customers expressed their interest to be a part of FUTURE CARD. They are very interested to be a member of FUTURE CARD. They want more information about the FUTURE CARD.
CONCLUSION & RECOMMENDATION As per this study, Central‟s has to create the awareness about the FUTURE
CARD. As we discussed above more than 70% customers were interested to be a part of the FUTURE CARD. Thus CENTRAL will be able to build more loyal customers. This one are where CENTRAL‟S has to concentrate. Because of this they get more LOYAL customers. CENTRAL does have to arrange some events for promotion of FUTURE CARD. Including proper displays inside the mall, informing every employee over there to tell every customer about the FUTURE CARD. At the cash counter keep any executive to give information to each and every customer or make a proper section for FUTURE CARD at the entrance of the mall. By that every customer should become aware of the FUTURE CARD. Retailers are striving for the sustainability in this competitive market. Adopting effective brand loyalty schemes would facilitate the organized retailers to enhance the loyalty of their customers. Once a customer is lost, it would be difficult to bring him back to the store. Retaining the customer is the challenge for the retailers.
BIBLIOGRAPHY
WEBSITES www.retailbiz.com www.retailyatra.com www.wikipidea.com www.timesofindia.com www.economictimes.com www.future.com www.amazon.com www.futurebazaar.com
BOOKS Suja Nair, Retail management, (Published 2008) Third edition. Patrick M. Dunne, Retailing, (Published 2007) Seventh edition Philip Kotler, Marketing Management, (Published March 6 2008) Thirteenth edition. Kishore Biyani, It happens only in India, (Published 2007)
MAGAZINES ICFAI Journals Business Today Harvard‟s Journals
APPENDIX – 1
QUESTIONNAIRE Section A 1) Name:.................................................................................. 2) Age:..................................................................................... 3) Address:................................................................................ 4) Gender:...............................................................................
5) Income range of the customer (per month)? o
>15000
o
20000 to 25000
o
25000 to 30000
o
30000 to aboub
6) Are you aware of “FUTURE CARD” Loyalty Programme? o
Yes
o
No
7) Do you have FUTURE CARD? o
Yes
o
No
8) Are you interested to be a part of FUTURE CARD? o
Yes
o
No
9) Reasons for not being aware of FUTURE GROUP? o
Don‟t have any idea
o
Not inform by any CSA
o
Don‟t have any display
10) How often do you buy apparels (clothes)? o
Once a Week
o
Once in 15 days
o
Once a month
o
Once every three months
o
Once every 6 months
o
Once a Year
11) From where do you buy your apparels (clothes)? o
Pyramid
o
Central‟s
o
Shopper‟s Stop
o
Mega mart
12) How much do you normally spend on apparels (clothes) bought from shopping malls in a single shopping. o
Less than 500
o
Between 500 to 1000
o
Between 1000 to 2000
o
Between 2000 to 5000
o
More than 5000
o
Not Applicable
Section B Q.1- Which store you find the price best? o
CETRAL
o
SHOPPERS STOP
o
PRAMID
o
WESTSIDE
o
MEGA MART
Q.2- Which store you find that there is a good range of brands ava ilable? o
CETRAL
o
SHOPPERS STOP
o
PRAMID
o
WESTSIDE
o
MEGA MART
Q.3- Which store has a good product range available? o
CETRAL
o
SHOPPERS STOP
o
PRAMID
o
WESTSIDE
o
MEGA MART
Q.4- Which store has a good trial room facility? o
CETRAL
o
SHOPPERS STOP
o
PRAMID
o
WESTSIDE
o
MEGA MART
Q.5- Which store has got good promotional offers? o
CETRAL
o
SHOPPERS STOP
o
PRAMID
o
WESTSIDE
o
MEGA MART
Q.6- Which store provides the best service? o
CETRAL
o
SHOPPERS STOP
o
PRAMID
o
WESTSIDE
o
MEGA MART
Q.7- Which store has a good parking facility? o
CETRAL
o
SHOPPERS STOP
o
PRAMID
o
WESTSIDE
o
MEGA MART
Q.8- Which store has a good store layout? o
CETRAL
o
SHOPPERS STOP
o
PRAMID
o
WESTSIDE
o
MEGA MART
Q.9- Which store has organized good events? o
CETRAL
o
SHOPPERS STOP
o
PRAMID
o
WESTSIDE
o
MEGA MART
Q.10- Which store has good ambience? o
CETRAL
o
SHOPPERS STOP
o
PRAMID
o
WESTSIDE
o
MEGA MART
Q.11- Which store has good food court? o
CETRAL
o
SHOPPERS STOP
o
PRAMID
o
WESTSIDE
o
MEGA MART
Q.12- Which store has good loyalty scheme? o
CETRAL
o
SHOPPERS STOP
o
PRAMID
o
WESTSIDE
o
MEGA MART
APPENDIX – 2
Synopsis for the Project on
Title of the Project: A study on brand loyalty management in retail Industry. Introduction: Brand loyalty management in Retail Industry means,
1. The situation in which a consumer generally buys the same manufactureroriginated product or service repeatedly over time rather than buying from multiple suppliers within the category. 2. The degree to which a consumer consistently purchases the same brand within a product class.
Otherwise stated, brand loyalty, in marketing consists of a consumer's commitment to repurchase or otherwise continue using the brand and can be demonstrated by repeated buying of a product or service, or other positive behaviours such as word of mouth advocacy. In a survey of nearly 200 senior marketing managers, 69 percent responded that they found the "loyalty" metric very useful. Brand loyalty is more than simple repurchasing, however, Customers may repurchase a brand due to situational constraints (such as vendor lock-in), a lack
of viable alternatives, or out of convenience. Such loyalty is referred to as "spurious loyalty". True brand loyalty exists when customers have a high relative attitude toward the brand which is then exhibited through repurchase behaviour. This type of loyalty can be a great asset to the firm: customers are willing to pay higher prices, they may cost less to serve, and can bring new customers to the firm. For example, if Joe has brand loyalty to Company A he will purchase Company A's products even if Company B's are cheaper and/or of a higher quality This will help in understanding the changing trends and preferences of the consumer towards Retail industry. Loyalty programs have been used in commerce for many years, originating in Germany where price based competition was disallowed by governmental restrictions in certain industries. In the 1950s, S&H Green Stamps rewarded grocery store and gas station customers with stamps redeemable for appliances and other merchandise. Retail loyalty programs evolved when progressive retailers recognized that without a "customer identification tool," they were unable to recognize individual customers and reward them for desired behaviour. This was in obvious contrast to banking and telecommunications industries, among others, that have a customer database as part of their regular service offering. In general, loyalty programs are often developed with good intentions but unclear objectives. While retail loyalty programs have many purposes, the greatest value that is created for retailers is the ability to identify individual customers and to measure and understand their individual behaviours. This
consumer behaviour data far outweighs the "currency" value of providing consumers the opportunity to build a reward opportunity by shopping at one particular retail banner. This opportunity is often misunderstood by retailers and consumers alike.
Statement of the Problem: Retail Industry is now inexpensive, easy to use comfortable and is equipped with almost every feature we desire. Retail store are a necessity, a style statement, a job compulsion and a lifestyle durable, all at the same time. They have become an indispensable commodity, reaching across age, sex, demographics and regional boundaries. Retail stores service was introduced in India 10 years ago. The research study explores the brand loyalty management strategies adopted by the selected retailers to retain their customers.
Objectives of the Study:
To understand the brand loyalty building strategies adopted by selected retailers.
To understand the impact of these strategies amid the customers.
To understand the relationship between the retail store and customers.
To understand the commitment of customer towards particular retailers and their brands
To learn customer‟s requirements.
Significance of the Study:
To understand buying pattern regarding the brands in retail industry. To understand the reasons for switching one brand to another brand.
To find out the people‟s perception about the particular brand.
To understand consumer requirements of the customers.
Scope of the Study:
To study the attitude of teenagers and youth towards different brands in retail store.
Identify the different associations with retail store.
Understand their perceptions for different brands in retail store.
Limitation of the Study:
Respondent may be not informational.
Interviewee may not be willing to give the answers.
Answer given by the respondent and the interviewee may be biased.
Research is limited to Bangalore city only.
Research Methodology: To extract necessary information regarding this project, primary data is to be collected through different techniques such as questionnaire, surveys, and interviews. These data will give a clear picture about the different attributes influencing the customers. a) Types of data sources - Data‟s collected for the study/research of the project. 1-Tools for collecting Primary data: It is a first-hand data collected by the researcher through Questionnaires, Interviews and Surveys etc.
2-Sample size: Number of the sampling units selected from the population is called the size of the sample. Sample of minimum 150 respondents will be obtained from the population. 3-Sampling data: Industry records, Journals, Interviews, etc. 4-Tools for collecting Secondary data: These are those data which have been collected by some other researcher in the past for their research. Secondary data can be collected from articles published dailies, magazines, and industry reports through visits to libraries and also from the worldwide web. b) Hypothesis: This study is exploratory in nature, generated.
hypothesis is not being
CONCLUSION
Through this synopsis, the researcher would like to present an overall study of Brand loyalty management in Retail Industry. This will showcase the different attributes which influence the changing trend in buying behaviour. Retailing as a part of supply chain management helps the consumer to satisfy his wants. These wants are satisfied by the products which he is purchasing from the retailer. Retailing is the most dynamic activity in the chain of distribution. There is considerable growth in number and size of retailing organization. Nature of retailing depends on two main consideration viz. value addition and providing utility. Depending on this nature of retailing, organization is decided whether it can be smallest organization like retail shops or a super market.
BIBLIOGRAPHY
Books:
Retail management (chetan bajaja) Edition-2009, Publication data - Oxford university press
Customer Service in Retailing (Anil Mishra & Ruchi Gupta) Edition-2009, Publication – Biztantra (management for the flat word)
The Retail value Chain (Sami Finne & hanna Sivonen), publication – kongan page
Website:
http://www.retailindustry.com/
http://www.bigretail.com
