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 said the Indian retail industry is in revolution phase.

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 and 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, multi-

storied malls and the huge complexes that offer shopping, entertainment and

food all under one roof.  A large young 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

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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 growth 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 25-

30% 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

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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 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’

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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.

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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

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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

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TOP 20 RETAILERS WORLD WIDE

Sl. No Retailers Sales (US$)

1. Wal-Mart Stores, Inc 163,532 2. 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

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RetailersDistributorsManufacturer Consumers

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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.

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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

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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, merchandising means maximizing

merchandise sales using product design, 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

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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

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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.

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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

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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.

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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%

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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

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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

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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 available 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.

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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.

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Aajse kharcheyban gayekamai !

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

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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.

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BRANDS GIFTS & OFFERSBIG BAZAAR 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

CENTRAL Rs. 50 off on Rs.1000 & above purchase. For 1st 3 months Rs. 250 off on Rs. 2500 & above purchase.

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)

PLANET SPORTS

Rs. 249 Spalding/Converse cap FREE on purchase of Rs.111 & above per month.

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

1 time foot massage FREE per month.

EZONE A head phone worth Rs. 199 with purchase through FUTURE CARD at eZONE.

FUTURE BAZAAR.COM

A Future card & futurebazaar.com MUG worth Rs.50 on 1st purchase every month.

BOMBAY 10%15% off on total bill amount.

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BLUE COPPER CHIMNEY

10%15% off on total bill amount

YATRA 10%15% off on total bill amount

PENNE 10%15% off on total bill amount

SPAGHETTI 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.

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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

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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

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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

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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

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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

31

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

32

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

33

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.

34

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.

35

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 channel retailing.

7. Adopt innovative or unique concept to please the customer.

THIS IS ALL ABOUT THE CUSTOMER LOYALTY IN RETAIL SECTOR.

36

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.

37

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.

38

There are various stages to solve the research problem as shown in following

diagram

39

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

40

Data Collection● Primary Data

● Secondary Data

Sampling Design● Technique of Sampling

●Sample Population●Sample Frame●Sample Size

Research Design●Research Methodology

●Type of Research

Rational / Scope of Study

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

41

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.

42

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 (fo) and

those that would be expected by random chance (fe).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

43

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 X2 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

44

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   and   degrees of freedom. (C. R. Kothari, 2nd edition

1985)

We have tested the hypothesis in the research using Chi – square test.

Brand loyalty according to gender in retail sector.

                                              

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

45

Particulars Male Respondent

Female Respondent

Total Respondent

Yes 125 25 150

No 37 13 50

Grand Total 162 38 200

Section A:

Objective: To collect whole detail about the awareness of customers towards

FUTURE CARD.

Sample size: 200 customers

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. Male

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II. 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

47

>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

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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

49

OPTIONS RESPONSE

Yes 150

No 50

TOTAL 200

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?

50

DO YOU HAVE 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

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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)

52

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

53

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.

54

9) From where do you buy your apparels (clothes)

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.

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OPTIONS RESPONSE

Pyramid 60

Central 80

Shoppers Stop 50

Mega mart 10

TOTAL 200

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.

56

Section B:

This annexure depicts the collected data for COMPARATIVE AALYSIS

with respect to other stores.

Sample size: 200 customers.

57

PARAMETERS

CENTRAL

SHOPPERS STOP

PIRAMYD

WESTSIDE

MEGA 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?

58

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?

59

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?

60

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?

61

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?

62

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?

63

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?

64

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?

65

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?

66

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?

67

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?

68

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.

69

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.

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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.

71

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.

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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.

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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

74

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?

75

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

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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

77

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 available?

o CETRAL

o SHOPPERS STOP

o PRAMID

o WESTSIDE

o MEGA MART

Q.3- Which store has a good product range available?

o CETRAL

78

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?

79

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

80

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

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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 manufacturer-

originated product or service repeatedly over time rather than buying from

multiple suppliers within the category.

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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

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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.

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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.

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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, hypothesis is not being

generated.

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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.

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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:

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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

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