RM03 Customer Attraction and Management

Assignment No.I
Assignment Code: 2012RM03A1 Last Date of Submission: 15th April 2012 Maximum Marks:100

Attempt all the questions. All the questions are compulsory and carry equal marks.

Section-A Ques.1 Write a detailed note on growth and future of retail segment in India, expressing your views that how tough the competition can be from local kirana stores, vegetable vendors and mandis? What are cross promotions and how are they used by retailers Why are Amazon and e-bay regarded as such strong e-brands. What are the alternative types of store layout. Comment on the pros and cons of each one of them. Section-B Case Study Today's successful retailers make the most profitable use of every square foot of space in the store and in the warehouse. Since this space is so costly, you must take a strategic approach to its use. Floor patterns, location of merchandise, levels of inventory and appropriate displays are all key factors in the proper use of space. Misuse of space can be as detrimental to your success as poor buying or careless hiring. It is very important for every store to create a suitable atmosphere and appealing presentations in order to trigger the consumer's buying decision. In a world where you can find identical merchandise in more than one store, layout and presentation become key differentiating factors. You can have the most unique, creative and different store on the planet, but if doesn't conform to what your customers want and expect, then it is of no value. Retail has always been, and will always be, about the consumer. Your entire store concept must be built around your target customer. Succeed at satisfying this shopper and you win the game. Build and design a store that looks beautiful but doesn't fit the marketplace and the only people who will be happy are the architect and contractors. Unfortunately, the days of running a traditional "Ma and Pa" operation, lacking any real business sophistication are long gone. A haphazard approach to store layout generates less than desired results. You must squeeze every ounce of potential out of your store to make it a winner. How you present your store is a very strategic part of your business. In order to position every item in its proper location, you must have a far more detailed plan than the usual "It was the only place left available,so that's where it ended up!" Give your best-selling merchandise the most favourable display areas in your store. There's no point in making the job of selling products any more difficult than it needs to be.

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Questions: Q1. Q2. What is the best time to sell an extra item to a customer. Suggest steps to increase impulse purchase. What are plan-o-grams? How are they be used retailers?

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RM03 Customer Attraction and Management

Assignment No.II
Assignment Code: 2012RM03A2 Last Date of Submission: 15th May 2012 Maximum Marks:100

Attempt all the questions. All the questions are compulsory and carry equal marks.

Section-A Ques.1 Outline some elements in a communication programme to achieve the following objective: a) Increase the store loyalty by 20% b) Increase awareness of the store by 10% c) Develop an image as a low price retailer. d) Promote the brands of the store. Write short notes on the following: a) Customer b) Customer loyalty What is customer Satisfaction and why should retail sector be careful about utmost customer satisfaction? What is CRM and how it is applicable in the retail sector? Explain. Section-B Case Study Bridging the Gap Customer relationship Management (CRM) has become one of the key mantras for many retailers. Born out of recognition and belief that existing customers are both more profitable and the best advocates for a retail business, CRM systems and approaches attempt to build a bridge between the retailer and the consumer. This bridge allows a relationship to develop that links the consumer ever more closely to the retailer with both loyal customers at a lower cost and a source of regular data and thus information. By codifying and organizing customer knowledge under a CRM system, it is anticipated that benefits to the business will flow and that customers will be accorded the status they deserve and the services and products they require, possibly even on an individual basis. Much of the literature sees CRM in this light and describes it as a win-win situation for the retailer and the customers. Invest in a CRM system and retailing becomes so much simpler and more profitable. But surely it cannot be as easy as that, can it?

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Consumer Expectations Why do consumers use a particular store or frequent a particular retailer? There is no really simple, single answer to this question, as consumers shop in different ways at different times for different purposes and reasons. In some instances, consumers have no choice as their access to stores is

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constrained or limited to a single shop at a single time. These constraints might be due to physical or economic access issues. On other occasions consumer might not have the time to shop around and so go to a shop, simply to save time. Alternatively, on different types of shopping occasions or trips, consumers may want a wide variety of shops amongst which to browse. Sometimes, they may end up not purchasing anything on that trip but may have gained knowledge about shops, products and prices that inform later trips. These two contrasting examples of shopping behaviour may be exhibited by the same consumer at different times in different trips. For example, shoppers may be constrained by time during their lunch break in a work week but may be more relaxed at the mall at the weekend with their friends or family. These examples also demonstrate that consumer expectations vary, even for the same consumer. The purpose of the trip and the mood of the consumer affect their expectations. Knowledge of these expectations are vital for retailers as is the ability to adjust the store and retail offer to meet these. We can perhaps look at these expectations in terms of four retail areas, which are as follows: Access: Consumers expect stores to be accessible to them in terms, both of location and hours of operation. Hours of opening have to match consumer demands and stores need to be located to fit in the with the lifestyles of consumers. Very few retailers can truly be termed as location-independent destination stores. For the rest, it is a fight to get most appropriate locations (the best locations). If as a retailer you are not in the right place then you can no longer expect consumers necessarily to seek you out. Consumers expectations over locations have become more restrictive over time. In-store: Expectations of the retail environment have risen enormously. This is not the only concern of the operating standards of the stores but also the way in which the store is adapted to meet consumers expectations and needs. Whilst all retailers have probably noted the rise in requirements for cleanliness and hygiene, quality of fixtures and fittings and customer service orientations and so on, others have added to this, the recognition that shops themselves may have to be designed or laid out differently to meet different consumer situations. For example, if the consumer is in a hurry, then speed of product selection and checkout are critical determinants. Store displays and layout can help this. If the consumer is in a browsing mode, then the overall ambience must set out to relax them. The synergistic relationship amongst bookstores, sofas/reading areas, coffee shops and wireless. Internet hubs is one illustration of this. Getting the store right and aligning it and the staff to consumer desires, moods and expectations is a major task. Trust: Consumers also expect things to go right. Elements that get in the way or disrupt their shopping are now less tolerated. Long queues as an express checkout at a convenience store at lunch time defeat the purpose of the shopping trip and frustrate consumers. Likewise, consumers expect that if things are going wrong or do go wrong, then retailers and simply, with a minimum of fuss. Retailers who fail this trust test will soon see consumers stop coming back. Symbolic meaning: As consumer societies develop, consumers increasingly appear to purchase products not only for their functional value or meaning (what they do) but also for their symbolic meaning (what they say). Products are purchased that say something about their owner or wearer, well above the functional value that they possess. A Louis Vuitton handbag has more symbolic value for its Japanese owner than it does functional value. High fashion is one area where this is common, but symbolic meaning is possessed by many brands in many different ways. Interestingly, for retailers it would seem that retail brands are increasingly becoming as symbolically informative as manufacturer brands. Retailers in the US such as Target, Gap and Abercrombie fit this pattern but so does Wal-Mart, where the symbolic meaning is probably different to Gucci but is there nonetheless. This therefore requires that retailers invest in the continuing standing of their symbolic meaning to consumers. WalMart has to have the lowest prices or its raison dtre is lost and 7-II has to be convenient. Consumers have to see and believe Tescos Every little helps proposition through their actions. Questions Q1. Customer expectation have a direct relationship with CRM and loyalty. Comment

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Q2.If retailing is a consumer centric business then the data about and from consumers and customer must be at the heart of both strategy and tactics. Justify with examples.

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