PROJECT REPORT

ON
THE EFFECT OF CUSTOMER LOYALTY
PROGRAM ON THE CONSUMER CHOICES AND
BUYING PREFERENCES IN PANTALOONS
SESSION: 2015-2016

SUBMITTED TO:
SUBMITTED BY:
MRS.RICHA SHARMA
ISHU SAXENA (FACULTY OF MANAGEMENT)
MBA 4th SEM.

K.C.M.T
K.C.M.T
Acknowledgement
I have taken a lot of efforts in this project; however it
would not have been possible without the blessings of my
parents and almighty God. Apart from that, I would like to
thank kind support of many individuals. I take this
opportunity to express my gratitude to the people who
have been instrumental in the successful completion of
this project.
Then I would like to thank Mrs. Richa Sharma and the
faculty of Khandelwal College of Management Science
and Technology) for their support and provided me with
the time and inspiration needed to detail out this project.
I would like to express my special gratitude and thanks
to pantaloon. My thanks and appreciations also go to my
colleague in developing the project who willingly helped
me out with their abilities.

DECLARATION
I hereby declare that this project report titled on
study the effect of customer loyalty program on consumer choices
and buying preferences in pantaloon submitted by me to the
department of business management ,KCMT ,Bareilly
,is a work undertaken by me and it is not submitted
to any other university or institution for the award of
any degree diploma/ certificate or published any time
before.

ISHU SAXENA
MBA 2ND YEAR

TABLE OF CONTENT
OBJECTIVE
INTRODUCTION OF RETAIL INDUSTRY
ISSUES IN RETAILING
EVOLUTION OF INDIAN RETAIL
DEFINTION OF LOYALTY PROGRA
LOYALTY PROGRAM BASICS
BENEFITS OF LOYALTY PROGRAM
INCREASED CUSTOMER RETENTION
ATTRACTING, RETAINING AND GROWING CUSTOMERS
ABOUT FUTURE GROUP
LIST OF BRANDS IN FUTURE GROUP
LEADERSHIP
FUTURE GROUP MISSION AND VISION
CORE VALUES
ABOUT PANTALOON
MISSION AND VISION
CORE VALUES
CUSTOMER RELATIONSHIP MANAGEMENT AT PANTALOON
PANTALOONS GREEN CARD PROGRAM: INITIAL STEPS
SPECIAL BENEFITS ON ENROLLMENT
CATEGORIES VALID FOR GREEN CARD DISCOUNTS
MEMBERSHIP & 12 MONTH PURCHASE-BASED UPGRADING
SYSTEM
RESEARCH METHODOLOGY
DATA ANALYSIS AND INTERPRETATION
FINDINGS
LIMITATION
SUGGESTION AND RECOMMENDATIONS
CONCLUSION
BIBLIOGRAPHY

 ANNEXURE

OBJECTIVE OF MY STUDY
To know the loyalty program adopted by pantaloons
and other apparel retailers.
To know how pantaloons retain customers using
loyalty program.

INTRODUCTION TO RETAIL INDUSTRY

INTRODUCTION TO 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 neighbor hoods corner
shops estimated at 70 million across the country, and village Melas
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 countrys 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 centers, 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
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 favorable 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 countrys 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 consumers behavior. 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 favorable.
The scopes of the Indian retail market have been seen by many
retail giants and thats 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 instore 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

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, Ddamas 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 Raymonds, 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
ISSUES IN RETAILING:
How can we best serve our customers while earning a fair profit?
How can we stand out in a highly competitive environment where
consumers have too many choices?
How can we grow our business, while retaining a core of loyal
customers? Retailers can best address these questions by fully
understanding and applying the basic principles of retailing, as
well as the elements in a well-structured, systematic and focused
retail strategy.
EVOLUTION OF INDIAN RETAIL:
Informal retailing Sector
Typically large retailers
Greater enforcement of taxation mechanisms
High level of labor usage monitoring
Formal Retailing Sector
Typically small retailers.
Evasion of taxes
Difficulty in enforcing tax collection mechanisms

 No monitoring of labor laws.

TYPICAL CHANNEL OF DISTRIBUTION
MANUFACTURE
WHOLESELLER

RETAILER
FINAL CONSUMER

A Retailer sells to consumers through multiple retail formats

Web sites
Physical stores
Retail consumer markets today include high rates of personal
expenditures, low interest rates, low unemployment and very low
inflation. Negative factors that impact retail sales involve weakening
consumer confidence.
One of Indias major retailers with presence in following two segments:
Lifestyle Retailing : Pantaloons, Central, Fashion Station, aLL , MeLa.
Value Retailing :Big Bazaar, Food Bazaar.
Retailing is the worlds largest private industry:
Retail is the worlds largest private industry with global retail sales of
roughly USD 8trillion. Retailing is also one of the biggest contributors
to the Gross Domestic Product (GDP)of most countries and also one of
the biggest employers. (Source CII McKinsey Report titled Retailing in
India, the Emerging Revolution)
In India, however, the retail sector has seen a high level of fragmentation
with a large share held by unorganized players.

LOYALTY PROGRAM

Definition of loyalty program: Loyalty is one of the great engines of

business success.
The word loyalty has different explanation and it all refer to way of
Services. It is important to define exactly: what is meant by loyalty in
the context of Business Development and Retention.
Several broad definitions exist, including the following:
The commitment of customers to a particular brand or company
The extent to which your customers continue with key loyalty
behavior when Competitors offer more attractive prices, products, and/or
services
Faithful to any person or thing conceived of as deserving fidelity...
characterized by or showing faithfulness
For this report, loyalty is defined as follows: Loyalty is a positive
belief, Generated over the course of multiple interactions, in the value
that a company and Its products and/or services provide, which leads to
continued interactions and Purchases over time.
Loyalty should not be confused with customer satisfaction. Although
loyalty is built on satisfaction, organizations can have satisfaction
without loyalty. Customer Satisfaction is an opinion measure about
company performance and how Customers feel their needs were met in
past interactions or by past purchases ,Whereas customer loyalty is a
results measure that includes expectations of future behavior.
For example, 75 percent of consumer wireless customers are satisfied
with their current service, but 72 percent would be willing to switch to a
competing provider. Thus, when designing a rewards program to build
loyalty, it is critical to think about how to encourage true long-term
customer loyalty and not just fleeting customer satisfaction.

LOYALTY PROGRAM BASICS

Companies typically have several goals when launching
loyalty programs, all of which are focused on generating
greater profits from the programs members. These goals
include
Improving knowledge of the customer
Leveraging that knowledge to increase the sales of
undersold and/or highly profitable products/services
Increasing customer retention and purchase frequency
The most common type of loyalty program begins when a
customer enrolls. From that point forward, the
organization accurately tracks information about ,that
member, captures the members purchases, credits points
to the member based on the rules stored in a loyalty
engine, categorizes the member in tiers or groups based
on the members value to the organization, and enables
the member to redeem points for products or services
when various point levels are attained. The specific types
of behavior that are tracked and rewarded are unique to
each industry/company and are typically linked to the
organizations profitability drivers.

BENIFITS OF LOYALTY PROGRAM:

Greater Customer Knowledge
A loyalty program enables a company to gain detailed
knowledge about its customer base with the customers
consent; customers actually want to provide transaction
and detailed profile information to ensure that they
receive the full benefits of being a member of
the program. In some market segmentssuch as
business-to-businesscompanies already possess
significant knowledge about their customers. As a result,
these firms will not see customer knowledge as an
important component of a loyalty programs value.
However, for most business-to-consumer companies,
gaining this level of intimate customer knowledge is a
critical benefit of a loyalty program. In such B2C
industries, loyalty programs enable companies to match
their faceless customer purchase data (what was bought,
when, at what store) with specific customer profile
information, which can then be used to create targeted
marketing promotions or redesign services around highvalue customers needs.

The loyalty program helps to get a good relationship with

customers because without responding or not providing
any special benefit the may dont think to come again for
purchase to the particular store so Customer Relationship
Management makes it very useful
CRM is not just a technology, but rather a comprehensive
customer-centric approach to an organizations
philosophy in dealing with its customers. This includes
policies and process, front-of-house customer service,
employee training, marketing systems and information
management. Hence it is important that any CRM
implementation considerations stretch beyond technology,
towards the broader organizational requirements.
Managing the customer experience, maintaining a more
reliable data base, improving service operations. Fostering
customer loyalty, embracing the characteristics of high
performance marketing and other related subjects. The
loyalty program gives a good benefits to apparel retailers
to do more and more service to customer
INCREASED CUSTOMER RETENTION
A well-honed loyalty program improves customer
retention rates, by increasing a members switching

costs, which are costs a member would bear in order to

switch to a competing provider.
These costs can include decreased service and the time
and resources required to build anew relationship. The
higher a members switching costs, the more likely that
member is to remain loyal.
Most loyalty programs today do not create high enough
switching costs for members. For example, airline
industry frequent-flier programs all provide virtually the
same product (a seat, perhaps with a few extra inches of
legroom) and the same membership benefits (separate
customer service number, priority boarding, priority
upgrades, and bonus miles).
If gold-tier members on one airline want to switch to a
competitor because the competitor just added nonstop
service on their favorite routes, all they have to do is fax
the competitor their last frequent-flier statement, and they
will immediately be made gold members of the
competitors frequent-flier program. Because the products
and services these two airlines and their loyalty programs
provide are virtually identical, the members can switch to
a competing carrier at virtually no cost to,
themselves. However, if the first loyalty program offered

a unique set of benefits that the competing carrier could

not easily duplicate, it would be much less tempting
for members to switch. Companies use their loyalty
programs to create these switching costs, by
Leveraging in-depth member profile and transaction
data to create unique offer sand product/services that a
competitor, which does not know as much about the
member, cannot match
Providing targeted service consistently across all
channels By using the personalized data provided by their
loyalty program, companies can create a win-win
relationship with their members that cannot easily be
replicated by their competitors.
Businesses are quickly learning that being the best is
no longer enough. Every consumer demands the
highest quality goods or services at the best prices,
conveniently delivered to them through whatever means
and at any time they choose. So the retailers have to
do everything to meet those demands. At the same
time, invest time and resources to hire and train the
staff to be courteous, friendly, helpful and trustworthy
when facing customers.

Today's customers have more choice, are better informed

and are more demanding of value and return for their
spending money. They look not only for the
products and services that meet their needs at the
price they are willing to pay, but for the merchant
that recognizes, appreciates and rewards their patronage.
Given this wide acceptance and popularity of reward &
recognition-based loyalty programs, merchants have
leveraged, and continue to employ, programs to
compliment their traditional efforts in responding to a
variety of challenges.
Now a days all big apparel retailers have started the
loyalty program with different benefits in order to satisfy
customer needs and wants.
ATTRACTING, RETAINING AND GROWING
CUSTOMERS
(A)Customers are becoming harder to please.
(B)Companies seeking to expand profits and sales
h a v e t o s p e n d c o n s i d e r a b l e t i m e a n d resources searching for new
customers.
Suspects are people or organizations that might conceivably have an interest in
buying but many not have the means or real intention to buy.
Prospectscustomers with the motivation, ability, and opportunity to make a
purchase

Customer churnhigh customer defection

Two main ways to strengthen customer retention:
Erect high switching costs.
Deliver high customer satisfaction.
(C)Most companies now recognize the importance of satisfying
and retaining customers.
(D)Satisfied customers constitute the companys customer
relationship capital.

Acquiring new customers cost five times more than the costs involved in
satisfying and retaining current customers.
The average company loses 10 percent of its customers each year.
A 5 percent reduction in customer defection rate can increase profits by
25 percent to 85 percent depending on the industry.
Customer profit rate tends to increase over the life of the
retained customer.
TOP PLAYERS IN APPAREL RETAIL STORES ADOPETED
LOYALTY PROGRAM
Pantaloons : Green Card (GC)
Shopper Stop :First Citizen (FC)
Lifestyle : The Inner Circle (TIC)
Westside : Club West

FUTURE GROUP

FUTURE GROUP
Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is
one of Indias leading business houses with multiple businesses
spanning across the consumption space. While retail forms
the core business activity of Future Group, group subsidiaries
are present in consumer finance, capital, insurance, leisure and
entertainment, brand development, retail real estate development, retail
media and logistics.
Led by its flagship enterprise, Pantaloons Retail, the group operates over
16millions q u a r e f e e t o f r e t a i l s p a c e i n 7 3 c i t i e s a n d t o w
n s a n d 6 5 r u r a l l o c a t i o n s a c r o s s I n d i a . Headquartered in
Mumbai (Bombay), Pantaloons Retail employs around 30,000 people
and is listed on the Indian stock exchanges. The company follows a
multi-format retail strategy that captures almost the entire consumption
basket of Indian customers. In the lifestyle segment, the group
operates Pantaloons, a fashion retail chain and Central, a chain of
seamless malls. In the value segment, its marquee brand, Big Bazaar is a
hypermarket format that combines the look, touch and feel of Indian
bazaars with the choice and convenience of modern retail.
The groups specialty retail formats include supermarket chain - Food
Bazaar, sportswear retailer - Planet Sports, electronics retailer E-Zone,
home improvement chain-Home Town and rural retail chain - Aadhaar,
among others. It also operates popular shopping
portal.www.Futurebazaar.Com.
Future Group believes in developing strong insights on
Indian consumers and building businesses based on Indian ideas, as

espoused in the groups core value of Indianness. The groups

corporate credo is, Rewrite rules, Retain values.
Future Groups Includes Future Retail- Covering all retail business.
Future Capital- covering consumers finance, insurance and
advisory services.
Future brands- covering all brands owned and managed by
company.
Future space- which includes development and management of real
states.
Future logistics- which manages supply chain and distribution.
Future media- which develops and manages retail media spaces.

List of brands in FUTURE GROUP

BIG 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.

PANTALOON
S

Rs.100 off on apparel purchase of Rs. 500 or

get a T-shirt 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 polish/socks FREE on Rs. 100 per
month.
Airtel live VAS cards ( worth Rs. 500 content
FREE)
Rs. 249 Spalding/Converse cap FREE on
purchase of Rs.111 & above per month.

SHOE
MPORT/GEN
M
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

&

FUTURE
BAZAAR.CO
M
BOMBAY
BLUE
COPPER
CHIMNEY
YATRA

1 time foot massage FREE per month.

A head phone worth Rs. 199 with purchase
through FUTURE CARD at E-ZONE.
A Future card & futurebazaar.com MUG
worth Rs.50 on 1st purchase every month.
10%15% off on total bill amount.
10%15% off on total bill amount
10%15% off on total bill amount

PENNE

10%15% off on total bill amount

SPAGHETTI

10%15% off on total bill amount

THE
CLINIC

HP

APOLLO 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.
Get 2.5% surcharge waiver on fuel purchases
at select HPCL outlets.

LILLIPUT

VLCC

TRAVEL PORT

10% discount for Future card holders on all

Lilliput apparels & accessories. 15% discount
on all Lilliput footwear.
Inaugural offer: 1 face / body firming session
plus counselling 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)
15% off on Domestic packages 10% off on
Weekend
breaks.
12.5%
off
on
INTERNATIONAL packages.

LEADERSHIP
The Future Group employs over 30,000 people and was counted among
15 best employers in India in a survey conducted by Hewitt Associates
in 2007 in association with The Economic Times.
The Group has developed a strong senior management team with cross-functional
expertise in multiple businesses and is led by its Founder and Group CEO, Kishore
Biyani.
Kishore Biyani founded Pantaloons in 1997
, followed by a number of popular retail formats including Big Bazaar, Central,
Food Bazaar, Brand Factory and Home Town that now cater to almost the entire
consumption basket of a wide cross-section of Indian consumers.In the recent
years, Kishore Biyani has led the groups transformation into one of Indias leading
business houses with presence in capital, consumer finance, insurance, brand
development, retail real estate development and logistics.
FUTURE GROUP
GROUP VISION
Future Group shall deliver Everything, Everywhere, Everytime for every Indian
consumer in the most profitable manner.
GROUP MISSION
We share the mission and belief that our customers and Stakeholders shall be
served only by creating and executing .
Future scenarios in the consumption space leading to economic development. We
will be the trend setters in evolving delivery formats, creating retail realty, making
consumption affordable for all Customer segments For classes and for masses we
shall infuse Indian brands with confidence and renewed ambition. We shall be
efficient, cost conscious, and committed to Quality in whatever we do. We shall
ensure that our positive attitude, sincerity, Humility and united determination shall
be the driving force To make us successful
CORE VALUES :
Indianans: Confidence in ourselves
Leadership: To be a leader, both in thought and business.

 Respect and Humility: To respect Every individual and be humble in our

conduct.
Introspection: leading to purposeful thinking.
Openness: To be open and receptive in new ideas, knowledge
and information.
Valuing and Nurturing Relationships: To build long term Relationships.
Simplicity and Positivity: Simplicity and Positivity in our thought, business
and action.
Adaptability: To be flexible and adaptable, to meet challenges.
Flow: To respect and understand the universal law and nature

PANTALOONS

Pantaloon Retail (India) Limited (PRIL) is the flagship company

of Future Group, a business group catering to the entire India
consumption space.
PRIL is Indias leading retailer that operates multiple retail formats
catering to the needs of both the value and lifestyle segment of the
Indian consumer market. The company which started its operations from
Kolkata is now headquartered in Mumbai (Bombay), Indias commercial
capital. The company operates over 7 million square feet of retail space,
has over 1000 stores across 53 cities in India and employs over 25,000
people. The company operates in diverse formats.
Pantaloons A Chain Of Fashion Outlets
The first Pantaloons was opened in Gariahat in 1997. Over the years, it
has under gone several transitions. When it was first launched, this store
mostly sold external brands. Gradually, it started retailing a mix of
external brands while at the same time introduced its own private
brands. Initially positioned as a family store, it finally veered towards
becoming a fashion store with an emphasis on 'youth' and clear focus on
fresh fashion. Today, the fashion store extends to almost all the major
cities across the country. Pantaloons has established its presence with
stores not just in the metros, but also in smaller towns. Today there are
around 46 Pantaloons store across the country.
It is Led by its flagship enterprise, Pantaloon Retail, the group operates
over 12million square feet of retail space in over 71 cities and towns and
65 rural locations across India. The group owns several leading formats
including Pantaloons, Big Bazaar, FoodBazaar, Home Town, E-Zone
and Central. Pantaloons is among India's largest chains of fashion stores.
Pantaloons Fresh Fashion, with its focus on 'fresh look, feel and attitude'
offers, trendy and hip collections that are in sync with the hopes and
aspirations of discerning young and 'young-at-heart
'consumers. Pantaloons Fresh Fashion stands out as a fashion trendsetter,
on the lines of how fashion is followed internationally. This
'fresh fashion' destination allows customers to shop for the latest in

fashion apparel and accessories throughout the year in an attractive and

visually stimulating ambience.
Pantaloons Fresh Fashion stores have presence with stores not just in
Metros but also in smaller towns. All stores have a wide variety of
categories like casual wear, ethnic wear, formalwear, party wear and
sportswear for Men, Women and Kids.
MISSION:
Pantaloons shall strive to provide ultimate Value and satisfaction to its
customer in terms of quality control with price.
Through excellence in technology break
Through Management enterprise
Through Total Quality Management. To make it a preferred
organization for both present and future employees, suppliers,
customers, shareholders related agencies and society and large and
continue its march towards progress and retain its front line positions.
VISION:
Pantaloons India, in association with The Future group shall deliver
every time, everywhere, and everything for every consumer of India in a
profitable way.
Pantaloons India shares the belief that the potential stakeholders and
customers shall be provided by executing and creating future
developments in the leading consumption space to the economic
development.
MOTTO:
Customer Satisfaction is our real motto
Customer is our real boss and our real master.
A Customer is not an interruption in our work; he is the purpose of it.
CORE VALUES:
Confidence in ourselves.
To be a leader, both in thought, business and in innovation.
Respect every individual and be humble in our Conduct.
Leading to purposeful thinking.

To be

open and receptive to new ideas, knowledge and information.

To build long term relationships.
Simplicity and positively in our thought, business and ideas.
To be flexible and adaptable, to meet challenges
CUSTOMER RELATIONSHIP MANAGEMENT AT
PANTALOONS WHY CRM?
Want to focus both on acquisition & Retention
To convert daily footfalls into loyal customers
Extraordinary service and customer satisfaction
Increase customer share
In Future Group only Pantaloons is following Customer
Loy alty Program
CRM is practiced through the GREEN CARD progra m
(GC)
G reen Card loy alty progra m contribute s approx. 65% in
profitability of Pantaloons across country
Pantaloons maintains a customer database of 33 lac
across India
Software used is the Customer Loyalty Progra m
PANTALOONS GREEN CARD PROGRAM:
INITIAL STEPS :
Informing the Customer about the loyalty progra m
To become a green card member
-Filling of form
-Enrollment payment of Rs. 100
While filling the form various custome r details like
-Name
-Address
-Date of Birth
-Phone No.
-e-mail id
-Income
-Relationship Status etc.are collected to form the customer database

SPECIAL BENEFITS ON ENROLLMENT:

200 Gift Voucher
Friday 5%
Pizza Hut 20%and many more initial benefits are provided by
pantaloons stores for retaining the customer
PANTALOONS GREEN CARD PROGRAM

Your Green Card Is Your Passport To A Whole New World Of

Exclusive Benefits And Privileges.
Instant discount* for every time you shop at Pantaloons
Exclusive shopping days to get hold of latest merchandise
Regular updates on collections and promos via catalogues, sms and
email
Special invites to the most happening events
Extended exchange periods and complimentary drops for alterations
Exclusive billing counters and much more
CATEGORIES VALID FOR GREEN CARD DISCOUNTS
:

Apparel, perfumes & cosmetics, toys, blue sky, all, depot, planet sports
& accessories. valid on categories within pantaloons only. also valid at
standalone bluesky and all stores
SHOP WITH GREEN CARD, GET REWARDED INSTANTLY
,Online purchases are currently not eligible for Green Card discounts or
counted in purchases. This feature would be available in the near future.
1 STAR MEMBERS Gift Voucher worth Rs. 200 on enrolment
3 STAR MEMBERS
5% discount on every purchase
5 STAR MEMBERS
An exclusive 7.5% discount on every purchase

STAR MEMBERS
A whopping 10% discount on every purchase Swipe card at the time of
purchase to avail these discounts.
MOST RECENT PURCHASE HELPS TO UPGRADEPANTALOONS
upgrade is not dependent on the date of enrolment or calendar year. They
now upgrade on the basis of purchases immediately based on the
preceding 12 months from current shopping date.
MEMBERSHIP & 12 MONTH PURCHASE-BASED UPGRADING
SYSTEM:
THREE STAR CARD - Upgrade to a 3 star sta tus by
shopping for Rs. 8000/-immediately preceding 12 months of
current shopping date.
FIVE STAR CARD - Upgrade to a 5 star sta tus by
shopping for Rs. 20000/-immediately preceding 12 months of
current shopping date.
SEVEN STAR - Upgrade to a 7 star status by shopping for Rs.
40000/- immediately preceding 12 months of current shopping date.
EXCLUSIVE BENEFITS AND PRIVILEGES:
FASHION FRIDAY (additiona l 5% discount to all
members)
Instant discounts for every time you shop at Pantaloons.
Regular updates on themes, collections and promos (beginning
& end) via catalogues, SMS and email.
Special invites to the most happening events.
ADDITIONAL BENEFITS
Green Add on Cards
-1 and 3 star member: 1 add-on card
-5 and 7 star member: 2 add-on cards
Green Days: End Of Season Sale
Green Channel: special billing counter during End of Season sale

Green

Offers
Green Service Desk
Green Exchange
Green drop
7 STAR PRIVILEGES A BIGWOW
Exclusive benefits for green card members
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 PANTALOONS outlets. Its 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.

Aaj
se kharchey
ban gaye
kamai !

This is the slogan of the future card.

Apart from this Centrals 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 CENTRALS purpose. It is a loyalty card for
CENTRALS customers. Following are some details about
CENTRALs 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.

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

RESEARCH DESIGN
The type of research chosen for the study is descriptive research. In
descriptive research various parameters will be chosen in analyzing the
variations between these parameters.

DATA SOURCES:

Primary Data: Primary data is the information collected for the first
time. In this project it is obtained by means of questionnaire.

Secondary Data:
Secondary data needed for conducting research
work were collected from the company website, search engine and
library.

SAMPLING DESIGN
Sampling design is to clearly define set of objective, technically called the
universe to be studied. Sampling technique used is simple random sampling
method.

SAMPLE SIZE
This refers to the number of items to be selected from the universe
constitute a sample. The sample size for this study was taken as 50.

DATA ANALYSIS AND

INTERPRETATION

Data analysis and interpretation

Q.1) Income range of the customer (per
month)?

18%
32%

LESS THAN 15000

20000 TO 25000
25000 TO 30000
26%

30000 TO ABOVE

24%

OPTIONS

RESPONSE

LESS THAN 15000

20000 TO 25000

13

25000 TO 30000

12

30000 TO ABOVE

16

TOTAL

50

INETRPRETATION:
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

Q.2) Are you aware about the loyalty program of

pantaloons?

YES
NO

100%

OPTION

RESPONSE

YES

50

NO

TOTAL

50

INTERPRETATION:

From the above pie chart it determine us that most the

customers are aware of the loyalty program of pantaloons.

Q.3) How frequently you visit pantaloon

showroom?

24%
48%

WEEKLY
28%

OPTION

RESPONSE

WEEKLY

12

MONTHLY

14

AS PER NEED

24

TOTAL

50

MONTHLY
AS PER NEED

INTERPRETATION:
From the above pie chart it determines us that about 48% of the customers visit
pantaloons as per the need.

Q.4) which section you prefer more in

pantaloon?

30%
46%

CLOTHING
FOOTWEAR
ACCESSORIES

24%

OPTION
CLOTHING

RESPONSE
23

FOOTWEAR

12

ACCESSORIES

15

TOTAL

50

INTERPRETATION:
From the above chart it depicts that due to good apparels and good discount offers and
other superb deals, 46% customers tends to buy clothes from pantaloons and rest 30%
customers prefer footwear and remaining 24% prefer to buy accessories.

Q.5) Did you receive any benefit from the

loyalty program of pantaloon?

44%
56%

YES
NO

OPTIONS

RESPONSE

YES
NO
TOTAL

28
22
50

INTERPRETATION:

From the above pie chart it determines us that 56% of the

customers thinks that loyalty program of pantaloons provides
benefits.

Q.6) How often you receive the benefit of this

program?

36%
64%

ON EVERY VISIT
FREQUENTLY

OPTIONS

RESPONSE

ON EVERY VISIT

32

FREQUENTLY

18

TOTAL

50

INTERPRETATION:
From the above pie chart it determines us that 64% of the customers receive the benefit
on every visit of pantaloons and remaining 36% customers receive benefit frequently.

Q.7) Do you receive periodic or

proper updates regarding offers and
promotions from pantaloons?

38%
YES
NO
62%

OPTIONS

RESPONSE

YES

31

NO

19

TOTAL

50

INTERPRETATION:
From the above pie chart it determines us that 62% of the
customers receive periodic or proper updates regarding offers and
promotions from pantaloons.

Q.8) Are you satisfied with the loyalty

program of pantaloon?

30%

70%

OPTIONS

RESPONSE

YES

35

NO

15

TOTAL

50

YES
NO

INTERPRETATION:
From the above pie chart it determines us that 70% of the
customers are satisfied in using the loyalty program of
pantaloons.

Q.9) How satisfied you are with the

purchase you made in pantaloon
rating scale?

16%

4%

24%

HIGHLY SATISFIED
SATISFIED

26%

NEUTRAL

30%

UNSATISFIED
HIGHLY UNSATISFIED

OPTIONS
HIGHLY SATISFIED
SATISFIED
NEUTRAL
UNSATISFIED
HIGHLY UNSATISFIED
TOTAL
INTERPRETATION:

RESPONSE
12
15
13
8
2
50

From the above table 30% of the customers are satisfied in using
the benefits of pantaloons, 26% are neutral, 24% of the
customers are highly satisfied, 16% are unsatisfied and remaining
4% are highly unsatisfied.

Q.10) Is loyalty program affecting

your repeat purchase?

34%

66%

OPTIONS

RESPONSE

YES

33

NO

17

TOTAL

50

YES
NO

INTERPRETATION:
From the above pie chart it determines us that 66% of the
customers thinks that it affects our repeat purchase.

Q.11) on what basis the loyalty

program of pantaloon affects the
repeat purchase?

26%

IT INCREASES YOUR
CREDIT POINTS

50%

PROVIDING DISCOUNT
OFFERS

24%

OTHER BENEFITS

OPTIONS

RESPONSE

IT INCREASES YOUR CREDIT

POINTS
PROVIDING DISCOUNT OFFERS
OTHER BENEFITS
TOTAL

25
12
13
50

INTERPRETATION:
From the above pie chart 50% of the customers thinks that it
affect the repeat purchase because it increases the credit points
of the customers, rest 26% thinks it provides discount offers and
remaining 24% thinks that it provides other benefits.

Q.12) Would you like to recommend

your friends for loyalty program of
pantaloons?

38%
62%

YES
NO

OPTIONS

RESPONSE

YES

31

NO

19

TOTAL

50

INTERPRETATION:
From the above pie chart it determines that 62% of the customers
want to recommend to their friends for availing the benefit of
pantaloons and remaining 38% wants not to recommend to their
friends.

FINDINGS

FINDINGS
From this research, there is majority
no. of customers income is above
30000 .
From this research I came know that
most of the customers are aware
about the loyalty program of
pantaloons.
From this research I came to know that
most the customers visit to pantaloons
to purchase clothes, accessories etc.
as per the need.
From this research I came to know that
most the customers preference
towards through purchase of clothes.
From this research I came to know
that 56% of the customers avail the
benefits provided by the pantaloons.

 From this research I came to know that

most of the customers avail the
benefits on every visit of pantaloons.
From this research I came to know that
62% of the customers receive the
periodic or proper updates regarding
offers and promotions from
pantaloons.
From this research I came to know that
66% of the customers think that
loyalty program of pantaloons affect
the repeat purchase.
From this research I came to know that
most of the customers think that it
increases the credit point on the
repeat purchase.
From this research I came to know that
62% of the customers want to
recommend to their friends about the
loyalty program of pantaloons.

LIMITATIONS

LIMITATIONS
As the respondents were busy with
their shopping in pantaloons, it was
difficult for the researcher to meet the
respondents and gain information.
The study was limited to short period
only.
The data depends totally on the
respondents view which may be
biased.
Those who came out of pantaloon
store after shopping were chosen for
getting the questionnaires filled but
they held bulky polyethylene bags due
to which they found it difficult to stand
long and answer the questions.

 During my research I have found that

there was no place to sit for old age
people in pantaloon.
During my research I have found that
in pantaloon billing counter only one
system is working rest two systems
are not working because of this many
of the respondents facing problem.

SUGGESTIONS AND
RECOMMENDATIONS

SUGGESTIONS AND
RECOMMENDATIONS

Pantaloon needs to improve so that it can

accommodate more kinds of products and also
space for children coming with their parents to
play and have fun so that for them visiting
pantaloon becomes exciting.
Sitting area should be there for children and
old people, so that they can sit while other
family members doing shopping.
More computers should be included and
number of billing counters should be increased
especially during the festive season and sales,
so as to speed up the process of billing and
avoid large queues.
Staff should be trained properly to assist
people and to make them understand the

benefits of green card membership, it will

strengthen customer loyalty.
Others recommendations include introduction
of book corner for the book lovers and making
shopping more joyful.

CONCLUSION

CONCLUSION
This research report aims to study the

loyalty program adopted by pantaloons

and other apparel retailers and to know
how pantaloons retain customers using
loyalty program. Through pantaloon
captures a different market and is giving
competition to big players like big bazaar,
Vishal mega mart.
Retail in India is a booming sector
nowadays and pantaloon should try to
benefit more from it .Recommendations
given should be considered by pantaloon
in order to emerge as a winner in long run.

BIBLIOGRAPHY

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

http://www.pantaloon.com

ANNEXURE

ANNEXURE
PERSONAL DETAILS:Name: ---------------------------------Gender:
--------------------------------Occupation.
Email: ---------------------------------------------------------------------------Q.1) Income range of the customer (per month)?
(a) Less than 15000
(b) 20000 to 25000
(c) 25000 to 30000

(d) 30000 to above

Q.2) Are you aware about the loyalty program of pantaloon?
a) Yes
(
)
b) No
(
)
Q.3) How frequently you visit pantaloon showroom?
a) Weekly
(
)
b) Monthly
(
c) As per need (
)

Q.4) which section you prefer more in pantaloon?

a) Clothing
(
)
b) Footwear
(
)
c) Accessories (
)
Q.5) Did you receive any benefit from the loyalty program of
pantaloon?
a) Yes
(
)
b) No
(
)
Q.6) How often you receive the benefit of this program?
a) On every visit (
)
b) Frequently (

Q.7) Do you receive periodic or proper updates regarding

offers and promotions from pantaloons?
A) Yes
(
)
b) No
(
)
Q.8) Are you satisfied with the loyalty program of pantaloon?
a) Yes
(
)
b) No
(
)
Q.9) How satisfied you are with the purchase you made in
pantaloon rating scale?
A) Highly satisfied (
)
b) satisfied ( )
c) Neutral (
)
d) unsatisfied
(
)
e) Highly unsatisfied (
)
Q.10) Is loyalty program affecting your repeat purchase?

a) Yes (
)

b) no (

Q.11) on what basis the loyalty program of pantaloon affects

the repeat purchase?
a) It increases your credit points
b) Providing discount offers
c) Other benefits
Q.12) would you like to recommend your friends for loyalty
program in pantaloon?
A) Yes
(
)
b) No
(
)