Page 1 Institute Of Business Studies & Research Pune (Satish P.

Goyal)

Retailing consists of the business activities involved in selling goods and services to

1. I TRODUCTIO
services to the final consumer. consumers for their personal, family, or household use. It includes every sales of goods and Retailing is world's largest private industry with annual sales over $ 6600 billion. Wal-Mart

Retailing as an industry
Fortune 100, which highlights the importance of retailing as category. annual sales over $ 250 billion. It has share of 2.3% of U.S. G.D.P. There are nine retailers in of turnover or will as employment in India. With market size of $200 billion. The report said According to a market estimate after agriculture, retail is the largest single sector, both in term Organized retailing in India, which account for less than 4%, is likely to grow four fold in the the Indian retail industry is in revolution phase. Crore) to around $15 billion (Rs. 66000 Crore) the neighborhoods corner shops estimated at next five years. That means it will grow from current size of around $4 billion (Rs. 17,000 fragmented nature of retailing in India. 70 million across the country, and village Melas characterize the unorganized and Page 2 Institute Of Business Studies & Research Pune (Satish P.Goyal)

1) K. Raheja Group

RETAILERS I I DIA
2) Tata Trent Shoppers stop Home Stop Mother care Hyper city Crossword Planet M 3) RPG Group Westside Star India Bazaar Landmark 4) Reliance Group Spencers supermarket Spencers daily Spencers hypermarket Music world 5) Bharti Group Reliance fresh Subhiksha 7) Caf Coffee Day 6) Aditya Birla Group Pantaloons 8) Pantaloon retail (I) Pvt. Ltd 9) Godrej Group Big bazaar Food bazaar Fashion station All Blue sky E Zone Collection I Home Town Central Mall

Institute Of Business Studies & Research Pune (Satish P.Goyal) Godrej Aadhar Natures Basket

Page 3

Retailers

TABLE 1.1 : TOP 20 RETAILERS WORLD WIDE

20 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Sales (US$) Wal-mart Stores, Inc Carrefour group The Kroger Co Metro A G The Home depot INC Albertsons inc ITM Enterprise SA sears, Roebuck and co. Kmart Corporation

Target Corporation J.C. penny Company, Inc. Royal A hold Safeway Inc Rewe-Gruppe Tesco PLC Ito-Yokado Co., Ltd. Edeka-Gruppe Costco Companies, Inc Tengelmann warenhandelsgesellschaft The daiei, Inc 26,486 163,532 52,196.10 45,352 44,163 38,434 37,478 36,762 36,728 35,925 33,702 31,503 31,222 30,801 30,578 30,404 30,237 30,002 26,976 26,509
Page 4

Institute Of Business Studies & Research Pune (Satish P.Goyal)

The retail industry in India is largely unorganized & predominantly consists of small , independent,

RETAIL I I DIA
& constitutes 13% of GDP. There are around 5 million retail outlets in India. There are also owner-managed shops. Retailing is INDIAs largest industry in terms of contribution to GDP vendors. Total retail sales area in India was estimated at 328 million sq.mt.in 2001, with an an uncounted number of low cost kiosks (tea stalls, snacks centre, barber shops, etc) & mobile sq. ft, which is quite low compared to that of developed economies. average selling space of 29.4sq.mt. per outlet. In India the per capita retailing space is about 2 expected to increase to Rs.800,000 crore by year 2005 an annual increase of 20%. In 2000, the global management consultancy AT Kearney put retail trade at 400,000 crore , which is unorganized. In fact only a Rs20,000 crore segment of market is organized. There is no According to the survey, an overwhelming proportion of the Rs.400,000 crore retail market is Food sales constitute a high proportion of the total retail sales. The share was 62.7% in 2001,worth integrated supply chain management outlook in Indian traditional retail industry. non-food retailing sector registered faster year-on-year growth than the food sales sector. The apprx. Rs 7032.2 billion, while non food sales were worth Rs.4189.5 billion. However the improve margins. The turnover from private labels by major retail chains was estimated at trend to market private labels by specific retail store is catching on in India as it helps to CURRE T SCE ARIO OF I DIA RETAIL: around Rs 1200 million in 2001. Organized market; Rs. 5,000 crores. Unorganized market; Rs. 583,000 crores. Over 4000 new modern outlets in last 3 years. 5 x growths in organized retailing between 2000-2005. Institute Of Business Studies & Research Pune (Satish P.Goyal) Over 5,000,000 sq. ft. of mall space under development.

Page 5 Over 400,000 shoppers walk through their doors every week. The top 3 modern retailers control over 750,000 sq.ft of retail space. course to touch Rs. 35,000 crore or more by 2005-06. Growth in organized retailing on par with expectations and projection of the last 5 years: on YearUrban TABLE1. 2: GROWTH I RETAIL OUTLETS (MILLIO S): Rural 19780.58 19840.75 19900.94 19961.80 Source: www.indiainfoline.com Total 1.76 2.02 2.42 3.33 TABLE 1.3: COMPOSITIO OF URBA OUTLETS: 2.35 2.77 3.36 5.13 Grocers Retail outlet Chemist Cosmetic stores General stores Food stores Others Tobacco, pan stores TABLE 1.4: COMPOSITIO OF RURAL OUTLETS: Source: www.indiainfoline.com Grocers Retail outlet

Chemists General stores Source: www.indiainfoline.com Others 13.5% 55.6% 27.6% 3.3% Composition Composition 4.0% 34.7% 6.6% 6.3% 17.0% 14.4% Institute Of Business Studies & Research Pune (Satish P.Goyal) 17.0%

Page 6 Diversities differentiates itself from the standard development of modern retail anywhere in Retailing in India Conventionally, retailers focus on homogeneity and continuity in order to derive benefits of the world. Globally, retailers develop two or three major formats which are largely standardized, may scale and efficiency in their system. Significantly large, truly pan-Indian, multi-format modern retailing model needs to be not work in India. The Indian market will provide the footsteps to develop a model for globalizing retailing. developed in India. Indian retailers can establish thought leadership is in the field of technology. This will be the biggest contribution of Indian retailers to the world. have to build their technology platform. Unlike in developed countries, Indian retailers do not have legacy systems on which they next generation retail technology solutions may well come out of India. As retail grows and develops fresh technology-led solutions, India will take a leap and the from Indian retailing. Usage of RFID and the next practices in technology-based retail solutions may well emerge and followed the world over. Indian retailers would do well to develop their own systems and benchmarks that are admired The retail sector is expected to grow 40% to $427 billion by 2011.

ext 3-5 years are tough for retail biggies

Total retail market $ 800-billion by 2017. By 2017, organized retail will be 15-20% of the total retail market. Institute Of Business Studies & Research Pune (Satish P.Goyal) Impact on rural incomes and urban prices will be real and positive.

Page 7 ready business models, retail formats and delivery models. Organized retailing in India will need painstaking, often frustrating, effort to chisel out IndiaThe real estate prices and shortage of talented staff, the run-up expenses for growth are going Products, Properties, People and Profitability are going to be huge challenges. Significant delay in completion of shopping malls by developers and unreasonably high to shoot up sharply. The situation is expected to improve in 2009, when a large, and probably an oversupply of property prices is adversely affecting the growth of the sector. By the year 2010, it is expected that there will be around 500 shopping malls, adding over 250 retail space is expected to come on-stream. Its' just the first phase of retail playing out in India currently, where lot of players are merely million square feet of retail space. In second phase the focus will be on creating differentiation. And in a couple of years, half of 'land-grabbing'. In 2008, the competitive landscape is also expected to unfold with many large entrants finally the new entrants of today will simply die. Understanding, interpreting and catering to Indian consumer behavior, taking into account the launching their operations. New formats in specialty retail, wholesale retail and luxury retail are expected to emerge. social diversity in the country will be crucial to the success of new players. of modern retailing in India. The next few years will provide the answers to the most crucial questions on the sustainability more and more people will join the consuming class and what the real market size in small Whether the Indian consumer market can sustain such large growth in modern retail, whether By 2010 a conclusion on the consumption potential in India can be reached. cities will be, become clearer. development in India. No one can stop the growth of modern retail and the consequent impetus to consumption and Institute Of Business Studies & Research Pune (Satish P.Goyal) o one can stop an idea whose time has come - Victor Hugo.

Page 8
Organised retail market in India (Rs crore)

TABLE 1.5:
Retailers inspired by the Wal-Mart story of growth in small town America are tempted to focus on

Where is the opportunity?

population growth, migration trends and consumer spend analysis reveals a very different picture for smaller towns and villages in India. However, a careful analysis of the town strata-wise population, As per our estimates, the share of the 35 towns with a present population of greater than 1 million in India. today to reach 14.4 per cent by 2025. Simultaneously, the share of these towns in the overall retail India's total population would grow much faster than their smaller counterparts, from 10.2 per cent Within these top 35 towns, an estimated 70 to 80 per cent of retail trade could be in the organised market would grow from 21 per cent today to 40 per cent by 2025. organised sector accounts for 70 to 80 per cent of overall retail trade in certain categories. Retailers sector. This is similar to the experience in China, where in cities like Shanghai and Beijing, the Institute Of Business Studies & Research Pune (Satish P.Goyal) should therefore focus on the top 37 towns in the next decade, as the opportunity in smaller towns and

Page 9
TABLE 1.6: Organised retail market in India

rural India would be smaller and more fragmented, compared to the larger towns. Page 10 Institute Of Business Studies & Research Pune (Satish P.Goyal)

PRIMARY OBJECTIVE:

1.2 OBJECTIVES OF THE STUDY:

2. Study the customer approach towards the mall. 1. Study about the LOYALTY schemes run by the mall. 4. Comparative analysis of all retailers in this section to differentiate with other competitors. 3. Study about the floor operations in a shopping mall. 1. Understand the customer behavior inside the mall.

SECO DARY OBJECTIVE :

3. Gather all the information about all the competitors. 2. Customers expectation from the mall. 5. To make suggestion towards the improvement in loyalty schemes. 4. All details about the loyalty scheme in retail sector. Institute Of Business Studies & Research Pune (Satish P.Goyal) 6. To make suggestion towards STORE PATRONAGE.

Page 11 I TRODUCTIO :

1.3 RESEARCH METHODOLOGY

various steps that are generally adopted by researcher in studying his research problem along with the Research methodology is a way to systematically solve research problem. In it we study the but also the methodology. It may be noted, in the context of planning & development, that the logic behind them. It is necessary for a researcher to know not only the research methods/techniques particular research techniques, but they also need to know which of these methods or techniques, are significance of research lies in its quality and not in quantity. Researchers should know how to apply Institute Of Business Studies & Research Pune (Satish P.Goyal) relevant and which are not, and what would they mean and indicate and why.

Page 12

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

Rational/ Scope of Research Problem Research Design Study

Research Type of research Methodology

Sampling Design
Technique of

sampling Sample Population Sample Frame Sample unit Sample Size

Data Collection
Primary Data

Fig 1.1
Secondary Data

PRIMARY SOURCE: The method of data collection is done by the way of survey; this is
DATA COLLECTIO : objective of research study. I have collected primary data in the form of filled structured a process where by first hand information is collected. This method is needed for meeting the specific

about LOYALTY CARD. In second I collect all the data regarding to comparative analysis. questionnaire by customers. In first questionnaire I collect whole data about customers feedback Page 13 Institute Of Business Studies & Research Pune (Satish P.Goyal)

profile and product profile from the Web Site of PANTALOONS. Some other Web Sites were also

SECONDARY SOURCE: The secondary data was collected in the form of company
helped in ascertaining the strategies and approaches of major players in market. Thus the study referred. For collecting the required data the CSAS of the mall were also consulted. The data has collected from various sites, books, journals, etc. involved collection, analysis and interpretation of a lot of data relating to this sector. The data is After deciding on the research approach and instruments, the marketing research must design the SAMPLE DESCRIPTION: 1. SAMPLI G SIZE: sampling plan: mall. Sample size of the study is 200 customers who come for shopping inside the mall. The target for this the customers who come for shopping inside the PROCEDURE: Since it is the survey of customer, to obtain an 2. SAMPLE SELECTIO sampling technique chosen for the research is Random sample technique. Every customer unbiased result the customers sample from the population were interviewed randomly. So the 3. inside the mall had an equal chance of being interviewed. 4. CO TACT METHOD: Personal approach to each and every customer for all surveys and SAMPLE U IT: The customer who come for shopping inside the mall is the sample unit. face Interaction took place with each sample representative. interviews were the Contact method used for obtaining a proper and detailed feedback. A face-totabulated in the form of a report. These reports formed the basis for the comparative analysis and The data collected through questionnaire was properly classified and were made. drawing inferences there from. From the inferences drawn certain conclusions and recommendations The fieldwork was conducted for a period of 15 days for both the research. Interviews were 5. FIELD WORK: Institute Of Business Studies & Research Pune (Satish P.Goyal) conducted inside the mall by face face interviewing.

Page 14 Page 15 Institute Of Business Studies & Research Pune (Satish P.Goyal)

FIRSTLY WE DISCUSS ABOUT WHAT IS CUSTOMER LOYALTY?

2.1 REVIEW OF CO CEPT A D THEORIES:

or supplier based on a strong favourable attitude & manifested in consistent re-patronage . SHETH & MITTAL have defined customer loyalty as a customers commitment to a brand , store Strong Fig 2.1 weak Behavior ATTITUDE Strong The above given definition of customer loyalty includes both behavior & Weak When both attitude & behavior are weak , it means no loyalty exists , weak attitude indicates the attitude, which can result in four possible situations as shown in above fig. purchase of the brand or visiting the store is sporadic. When the attitude & behavior are strong , it customer may not have any liking for the brand & the store. While weak behavior means that the interesting. means that the customer has a strong brand or store loyalty. The remaining two situation cases are the customer may buy the same brand again & again or shop at same store regularly but may not have When behavior is high but attitude is low, it can be said that the customer has spurious loyalty, i.e Page 16 Institute Of Business Studies & Research Pune (Satish P.Goyal)

to convenient location or the customer loyalty is incidental & not yet well founded, he or she may a preferential attitude towards it. Very often in such instance the choice of the brand or store may due marketers would have to make efforts at strengthening the customers perception of the brands or easily switch brands change stores if given more choice or interesting price deals. Thus the retailers or In the quadrant with strong attitude & weak behavior, the customer can be said to be having latent stores image. the price is too high or he or she lacks accessibility to the brand or the store. Thus in such instances , loyalty. The customer likes the brand or store but is unable to buy or visit the same probably because market. the retailers or marketers needs to reduce whatsoever barriers & tap the hidden potential of the them to attractive promotions, thus adding more value to their best customers & satisfying them in the Retailers are beginning to focus their attention on encouraging customers to visit outlets, treating merchandise & services from them & will resist the activities of competitors attempting to attract their process. For to the retailers, customer loyalty will indicate that customer are committed to purchasing The term customer loyalty is used to describe the behavior of repeat customers, as well as patronage. great service by offering favorable word of mouth publicity regarding a product, telling friends and those that offer good ratings, reviews, or testimonials. Some customers do a particular company a more. It is a process, a program, or a group of programs geared toward keeping a client happy so he or family, thus adding them to the number of loyal customers. However, customer loyalty includes much Customer loyalty can be achieved in some cases by offering a quality product with a firm guarantee. she will provide more business. value trade-ins, extended warranties, rebates, and other rewards and incentive programs. The ultimate Customer loyalty is also achieved through free offers, coupons, low interest rates on financing, high Institute Of Business Studies & Research Pune (Satish P.Goyal) goal of customer loyalty programs is happy customers who will return to purchase again and persuade

Page 17 stakeholders. others to use that company's products or services. This equates to profitability, as well as happy entice consumers. Buy-one-get-one-free programs are very popular, as are purchases that come with Customer loyalty may be a one-time program or incentive, or an ongoing group of programs to period for a product or service. Also known as brand name loyalty, these types of incentives are rebates or free gifts. Another good incentive for achieving customer loyalty is offering a risk free trial to try other products or services offered by the company. meant to ensure that customers will return, not only to buy the same product again and again, but also problem, the company should do whatever it takes to make things right. If a product is faulty, it Excellent customer service is another key element in gaining customer loyalty. If a client has a for any reputable business, but those who wish to develop customer loyalty on a large-scale basis may should be replaced or the customer's money should be refunded. This should be standard procedure appease the customer. also go above and beyond the standard. They may offer even more by way of free gifts or discounts to unique merchandise & superior customer service. But the challenge for the retailer is to have a loyal Some of the common bases for attracting customers are having dedicated employees, variety, 1. Developing a clear & specific positioning strategies. database of customer, who will be unwilling to switch their loyalty. The strategies are built after: Institute Of Business Studies & Research Pune (Satish P.Goyal) 2. Making customer develop an emotional attachment with the retailers product offerings.

Page 18
The key to a successful business is a steady customer base. After all, successful businesses typically see

Ten Tips to Build Customer Loyalty

loyal customer base in pursuit of new customers. However, since the cost to attract new customers is 80 percent of their business come from 20 percent of their customers. Too many businesses neglect this customer loyalty will certainly payoff. significantly more than to maintain your relationship with existing ones, your efforts toward building 1. Here are ten ways to build customer loyalty: or a holiday greeting card, reach out to your steady customers. Communicate. Whether it is an email newsletter, monthly flier, a reminder card for a tune up, Customer Service. Go the extra distance and meet customer needs. Train the staff to do the 2. 3. same. Customers remember being treated well. will feel positively about their jobs and pass that loyalty along to your customers. Employee Loyalty. Loyalty works from the top down. If you are loyal to your employees, they Employee Training. Train employees in the manner that you want them to interact with 4. 5. customers. Empower employees to make decisions that benefit the customer. children outgrow shoes quickly, the owner of a children?s shoe store might offer a card that makes Customer Incentives. Give customers a reason to return to your business. For instance, because seen him regularly for five years. the tenth pair of shoes half price. Likewise, a dentist may give a free cleaning to anyone who has Product Awareness. Know what your steady patrons purchase and keep these items in stock. 6. customers buy regularly. And make sure that your staff understands everything they can about your Add other products and/or services that accompany or compliment the products that your regular

Institute Of Business Studies & Research Pune (Satish P.Goyal)

products. Read Know Product Basics for more.

Page 19
Reliability. If you say a purchase will arrive on Wednesday, deliver it on Wednesday. Be 7. inconvenience. reliable. If something goes wrong, let customers know immediately and compensate them for their Be Flexible. Try to solve customer problems or complaints to the best of your ability. Excuses ? 8. Second Guide to Managing Upset Customers for more information. such as "That's our policy" ? will lose more customers then setting the store on fire. Read our 60People over Technology. The harder it is for a customer to speak to a human being when he or 9. 10. she has a problem, the less likely it is that you will see that customer again. names of regular customers or at least recognize their faces. Know Their ames. Remember the theme song to the television show Cheers? Get to know the

Customers are constantly changing & their expectations also rising. Consumer behavior in the

Building loyalty through advocating certain essential factors:

only in terms of nos. but also in terms of stature, image & class. Alongside with Indians becoming organised retail industry has altered drastically in the last few years. The retail market is growing not successful. This can be done by providing a good brand & store experience. For this in general the world class service. So it becomes vital for retailers to pay attention to every little detail in order to be Timing of the store retailer will have to look into various aspects such as: All these above aspects are really very important for the customer to experience delightful In store design & layout Welcome the customer receives The ability to browse easily The behavior & product knowledge possessed by sales persons The facility for making payments The attractiveness of the loyalty programs The packaging & The exit. who will spread a bad word-of-mouth. On the contrary, if the overall brand & store experience is shopping experience in the mall. If not handled well, it could result in a disgruntled consumer , Page 20 Institute Of Business Studies & Research Pune (Satish P.Goyal)

outlet again & again. Further it is also likely that the popularity of the store increases through positive & pleasant , the retailer may gain a flow of customer who would likely to patronize the

How to improve CUSTOMER LOYALTY in organization?

word of mouth. training your staff and continually reinforcing the message that the customer comes first. You can also Strong customer service is the bedrock for creating loyal customers. Make it a priority by properly postcards, and e-mail, so they're aware of seasonal sales and special products. Install a strategy for let your customers know that you value their business by reaching out to them through newsletters, you've developed a rapport with loyal customers, you can reward them with special discounts on responding to customer inquiries and complaints and create a fair, flexible return policy. Finally, once Loyalties schemes are different for different organizations. Basically loyalty schemes are there products or services. In the study carried out by A .C. IELSO for the existing customers or for coming customers for their benefits. basis of their attitude towards price & promotions, five groups of customers were identified: company of BRITISH super market shoppers on the were strapped for cash due to limited income, so they shop around to get the best price on BRA DED EVERY DAY LOW PRICI G (ELDP) SEEKERS (19%) : These customers to alter their buying patterns i.e. they go for bulk purchases. Such customers are low on store their favorite brands, generally seeking ELDP instead of promotions which may require them LOW- PRICE FIXTURES FERRETS (23%): These customers are young families with loyalty but high on brand loyalty. Institute Of Business Studies & Research Pune (Satish P.Goyal) strained financial expenses due to growing expenses due to growing expenses like mortgage

Page 21 use coupons .They respond well to store loyalty schemes but tend to switch brands although etc. they are very budget conscious ,though dislike bulk purchases, they seek price deals & PROMOTIO they may spend a lot on store brands. shopping bill they find a thrill in finding bargain sale & take pride in telling others where JU KIES(18.4%): These customers will do anything to get the lowest neither for the brands. Thus retailers & marketers will not earn any long-term gain from such such sales take place. They may switch between rational & store brands, having loyalty STOCKPILERS (21%): These customers are affluent & are unconcerned about the size of customers. rather than price or promotions. They may take advantage of the promotions on their favorite their bill. They select stores based on the location , product assortment. & product quality brands. They can easily be the retailers delight since they may be loyal to both brands & brands, happily buying in bulk to stockpile & save money, although they may not switch PROMOTIO ALLY OBLIVIOUS (18.3%): This group is basically driven by habit, stores. indulge in soft deals such as free items or coupons but dislike aggressive promotions & deals. settled on brands & stores & not interested in exploring better deals. They may occasionally Institute Of Business Studies & Research Pune (Satish P.Goyal) So they reliable to a certain extent.

Page 22 A. Make shopping a delightful

FACTORS ESSE TIAL FOR BUILDI G STORE LOYALTY

E E. customer complaint handling & +ve attitude experience. O S S E N T I A L S F. build customer loyalty through adopting multi channel retailing. F C. understand customer needs & R B provide a mutually beneficial customer service. L U I L D I N G B. offer spice of variety under O Y A

L T Y G. adopt innovative or unique a single roof. D. provide physical appeal concept to please the customer.

Fig 2.2 FACTOR FOR BUILDING LOYALTY

Leading to store brand loyalty Page 23 Institute Of Business Studies & Research Pune (Satish P.Goyal)

In CE TRAL for loyalty scheme there is a card named FUTURE CARD. This card we THIS IS ALL ABOUT THE CUSTOMER LOYALTY IN RETAIL SECTOR. it from any ICICI bank branch or from any PANTALOONS outlets. Its available all over. called it as a credit card which is powered by ICICI CREDIT card. The customer can collect Anyone whose monthly income is above min.5000 can be a part of this loyalty card. This future card can be applicable in any store or mall comes under FUTURE GROUP.

Kharchey
Aaj se

kamai !
ban gaye Apart from this CENTRALs goes with various loyalty services such as FREE redeem of This is the slogan of the future card. etc. this is the loyalty scheme run by CENTRAL. parking coupons, free alteration to all customers, sometimes free home delivery to customers this card in various outlets run by FUTURE GROUP! The main benefit beyond this future card is you can use CITIZEN card. INDIA BULL MEGA STORE having PPC(pyramid power club) which goes Apart from this as we talk about other player in retail sector SHOPPERS having FIRST Institute Of Business Studies & Research Pune (Satish P.Goyal) with loyalty card.

Page 24 CENTRALS purpose. It is a loyalty card for CENTRALS customers. Following are some Before FUTURE CARD there were CENTRAL CARD which is only applicable for Exclusive Benefits details about CENTRALs card.

Get 0% EMI option for purchases more than Rs. 3,000/- at Central.

Earn 4 reward points for every Rs.100/- spent at Central. Also earn 1 reward point for every Get free gift voucher of Central worth Rs. 250/- with the offer booklet.

Rs. 200/- spent at merchant establishments other than Central.

Cardholder gets priority to view the product launches and seasonal collections at Central. Priority Payment Counters at Central for cardholder to save valuable time. above. Upto 10% discount to all cardholders restaurants within Central, on bills of Rs. 250/- and

The Cardholder will get access to select airport lounges across the country with Get 12 free coffee vouchers on approval of card.

complimentary snacks and non-alcoholic beverages. These were all the benefits provides by CENTRALS card. All the benefits of Solid Gold Card. Future card is powered by ICICI BANK (CREDIT CARDS). Future card is like a retail credit After that PANTALOONS introduces FUTURE CARD for all its stores. Institute Of Business Studies & Research Pune (Satish P.Goyal) card. Lots of offers & gifts are there on the FUTURE CARD.

Page 25 GIFTS & OFFERS BRA DS BIG BAZAAR 1 KG Food bazaar sugar free 1st 3 months 15% off on fashion 1st 3 months 10% off on general Merchandize. Rs.100 off on apparel purchase of 1st 3 months 3% off on foods. Rs. 50 off on Rs.1000 & above Rs. 500 or get a T-shirt worth Rs. 299 on apparel purchase of Rs. 1000 For 1st 3 months Rs. 250 off on purchase. FOOD BAZAAR Rs. 2500 & above purchase. Central Pantaloons purchase. BRAND FACTORY For 1st 3 months Rs. 250 off on Rs. 50 off on Rs. 1000 & above DEPOT Rs.2500 & above purchase. Mport/genm Shoe F123/CO Planet sports Home Town TOP 10 eZONE STAR & SITARA Bombay blue Futurebazaar.com

YATRA COPPER CHIMNEY 10%-15% off on total bill amount 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. 1 video game FREE per month with load of min. Rs. 50 Rs. 200 off on Rs. 1000 & above purchase. 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. 1 time foot massage FREE per month. A head phone worth Rs. 199 with purchase through FUTURE CARD at eZONE. A Future card & futurebazaar.com MUG worth Rs.50 on 1st purchase every month. 10%-15% off on total bill amount. Institute Of Business Studies & Research Pune (Satish P.Goyal) 10%-15% off on total bill amount

Page 26 SPAGHETTI PENNE 10%-15% off on total bill amount The Apollo Clinic For 1st 3 months 50% discount on a 10%-15% off on total bill amount 15% off on Domestic packages 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. 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 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) packages. 10% off on Weekend breaks. 12.5% off on INTERNATIONAL Lilliput HP Travel Port VLCC These are all details about FUTURE CARD. These are all offers which are provided by

Table 2.1 list of brands in FUTURE CARD

LOYALTY CARD which any 1 can use in number of brands. FUTURE CARD. This is first time in INDIA that any company providing such type of Institute Of Business Studies & Research Pune (Satish P.Goyal) This type of card really change the mind of customer towards the LOYALTY.

Page 27

FOLLOWING RESEARCH HAS BEEN DONE BY :

2.2 REVIEW OF PREVIOUS RESEARCH & FI DI G & Grahame R. Dowling Australian Graduate School of Management University of New South Wales Abstract Mark Uncles School of Marketing University of New South Wales Sydney 2052 Australia.
customer loyalty programs. But how effective are these programs? Surprisinglygiven their current In a bid to strengthen relationships with their customers marketers are showing renewed interest in competitive markets suggests that in many cases it is hard to obtain exceptional advantages through popularitythe evidence is equivocal. Research on normal patterns of loyalty in established Before introducing a loyalty program, managers would be wise to fully cost it (including the launch of a loyalty program. Also, competitive forces tend quickly to erode any differential gains. the benefits of the programan assessment that goes beyond the rhetoric of relationship marketing. development, marketing and on-going costs), and compare these costs with a realistic assessment of program must enhance the overall value-proposition of the product or service. This in turn will help Here we argue that to stand the best chance of success under tough market conditions, a loyalty firms offensive and defensive marketing strategy. to motivate buyers to make the next purchase of a product, and therefore support other aspects of the Page 28 Institute Of Business Studies & Research Pune (Satish P.Goyal)

Advocates contend that loyalty programs are more profitable to a firm because: The Claimed Benefits of Loyalty Programs (b) Loyal customers are less price sensitive, (a) The costs of serving customers are less, (d) They pass on positive recommendations about their favorite brands/suppliers. (c) They spend more with the company, and learning,2003 give definition of CUSTOMER LOYALTY as given below: J. . SHETH & B. MITTAL IN CUSTOMER BEHAVIOUR Thomson South Western store or supplier based on a strong favourable attitude & manifested in consistent re-patronage . SHETH & MITTAL have defined customer loyalty as a customers commitment to a brand , lower income group & less educated women were willing to shop in the same store & avoid REY OLDS,DARDE & MARTI , 1975 come with the new study that a sample of older , ARIEH GOLDMA ,(1977-78) in his study said that, store loyal consumer to be engaged in the risk of shopping in the new stores. them. He also found that the shopping behavior or style to more likely exist among low less repurchase search , know about fewer stores & less likely to shop even in stores known to J.F. DASH , L.G. SCHIFFMA income consumers because they were constrained by their inability to shop much. , 1976 they came with the & CO RAD BERE SO would reduce the risk of shopping in unknown stores. study that store loyal consumers found more risk in shopping & hence felt being store loyal household also limited the amount of time available for shopping & the additional cost of YA KELOVICH , SKELLY AD WHITE , 1982 they found that more no. of single parent Institute Of Business Studies & Research Pune (Satish P.Goyal) being store loyal was worth the time saved.

Page 29

Abstract: Rosalind McMullan, Audrey Gilmore

and what sustains and develops their customer loyalty. This paper recognizes the importance Purpose The purpose of this paper is to focus on establishing individuals' levels of loyalty been less focus on what value customers attach to customer loyalty in this context. customer loyalty has for many competitive organizations and industries. However there has levels of loyalty and then identifying the role of mediating effects in loyalty development. Design/methodology/approach A two-stage study is presented, establishing individual customer loyalty, and its sustainers and vulnerabilities (mediating effects). The second stage, The first stage involved a postal survey, including a 28-item scale, designed to measure levels of loyalty) to examine what sustains and develops loyalty amongst differing levels of and the main focus of this paper, uses scores from the loyalty scale (high, medium and low Findings The findings highlight the importance of identifying, understanding and managing development. importance of a differentiated approach to developing and managing customer loyalty by mediating effects, in the context of loyalty development. The research emphasizes the acknowledge the importance of reciprocity in terms of which aspects of service customers appropriately rewarding customers at different levels. The findings highlight the need to Originality/value The main contribution of this paper is that it uniquely identifies an value. development going beyond previous categorization attempts. Understanding this approach approach to understanding the sustaining and vulnerability effects mediating customer loyalty recognition, reciprocity and rewards. should lead to effective customer loyalty management and greater awareness of managing Page 30 Institute Of Business Studies & Research Pune (Satish P.Goyal)

Page 31 Institute Of Business Studies & Research Pune (Satish P.Goyal)

Future Group is one of the countrys leading business groups present in retail, asset

About Future Group

flagship company, Pantaloon Retail (India) Limited operates over 6 million square feet through 450 management, consumer finance, insurance, retail media, retail spaces and logistics. The groups Bazaar, Home Town, eZone, Depot, Future Money and online retail format, futurebazaar.com. stores in 45 cities. Some of its leading retail formats include, Pantaloons, Big Bazaar, Central, Food Clothing and Galaxy Entertainment that manages Sports Bar, Brew Bar and Bowling Co. Future Future Group companies includes, Future Capital Holdings, Future Generali India, Indus League It manages assets worth over $1 billion that are being invested in developing retail real estate and Capital Holdings, the groups financial arm, focuses on asset management and consumer credit. The groups joint venture partners include Italian insurance major, Generali, French retailer consumer-related brands and hotels. based Talwalkars, Blue Foods and Liberty Shoes. ETAM group, US-based stationary products retailer Staples Inc, UK-based Lee Cooper and IndiaConsumer in the most profitable manner. The group considers Indian-ness as a core value and its Future Groups vision is to, Deliver Everything, Everywhere, Every time to Every Indian Institute Of Business Studies & Research Pune (Satish P.Goyal) corporate credo is - Rewrite rules, Retain values.

Page 32 Pantaloon Retail (India) Limited, is Indias leading retailer that operates multiple retail formats in

Pantaloon Retail (India) Limited

(Bombay), the company operates over 7 million square feet of retail space, has over 1000 stores both the value and lifestyle segment of the Indian consumer market. Headquartered in Mumbai The companys leading formats include Pantaloons, a chain of fashion outlets, Big Bazaar, a across 53 cities in India and employs over 25,000 people. feel of Indian bazaars with aspects of modern retail like choice, convenience and quality and uniquely Indian hypermarket chain, Food Bazaar, a supermarket chain, blends the look, touch and Factory, Brand Factory, Blue Sky, Fashion Station, ALL, Top 10, mBazaar and Star and Sitara. The Central, a chain of seamless destination malls. Some of its other formats include, Depot, Shoe A subsidiary company, Home Solutions Retail (India) Limited, operates Home Town, a large-format company also operates an online portal, futurebazaar.com. the consumer electronics segment. home solutions store, Collection i, selling home furniture products and E-Zone focused on catering to Page 33 Institute Of Business Studies & Research Pune (Satish P.Goyal)

Pantaloon Retail was recently awarded as:

I TER ATIO AL & ATIO AL AWARDS

International Retailer of the Year 2007 by the 1. 2. The Emerging Market Retailer of the US-based ational Retail Federation ( RF) and 3. Best of the BEST RETAILER 2006 & 2007, by ASIA PACIFIC TOP 500, SI GAPORE. Year 2007 at the World Retail Congress held in Barcelona. 5. Readers Digest Trusted Brands Platinum Award. 4. Business Leadership Award in retail by DTV, 7. Hewitt 6. C BC AWAZ most preferred Large Food & grocery Super market. BEST international EMPLOYER 15 I DIA. in the entire Indian consumption space. Pantaloon Retail is the flagship company of Future Group, a business group catering to Page 34 Institute Of Business Studies & Research Pune (Satish P.Goyal)

Table 3.1 line of business Now we are going to discuss about all LINE OF BUSINESS come under PANTALOONs RETAIL. FASHION LOB PANTALOONS NAME SIZE(PER SQR.FT) CENTRAL BIG BAZAR FASHION STATION FOOD BAZAAR FORMAT TYPE 25,000 1,25000 50,000 15000 10000 FOOD LIFESTYLE LIFESTYLE VALUE VALUE LIFESTYLE & VALUE HEALTH ,BEAUTY GM, BOOKS & MUSIC BIG BAZAAR & WELL NESS STAR & SITARA DEPOT GEN M (BEAUTY PRODUCTS) STAR & SITARA (SALON) HEALTH VILLAGE

50,000 M PORT M BAZAAR 1,000 TO 2,000 1,000 TO 6000 25000 2,500 VALUE 500 TO 1,000 1500 TO 2000 250 TO 500 VALUE LIFESTYLE & VALUE LIFESTYLE & VALUE VALUE COMMUNICATION LIFESTYLE LIFESTYLE VALUE Table 3.2

SUBSIDIARY HOME SOLUTIO RETAIL(I) LTD.

NAME LOB ELECTRONIC GOODS & CONSUMER APPLIANCES FORMAT TYPE SIZE(PER.SQR.FT) FURNITURE,FURNISHINGS E-ZONE ELECTRONIC BAZAAR COLLECTION I & ACCENTS HOME IMPROVEMENT FURNITURE BAZAAR 12,500

HOME TOWN LIFESTYLE 3,000 TO 6,000 10,000 VALUE LIFESTYLE 3,000-6000 1,25,000 VALUE Institute Of Business Studies & Research Pune (Satish P.Goyal) LIFESTYLE & VALUE

Page 35 Table 3.3

JOI T VE TURES:
NAME LOB RESTAURANT ,LEISURE & ENTERTAINMENT FORMAT SIZE(PER.SQR.FT) GALAXY BLUE FOODS(50:50) FOOT WEAR RETAILING ENETRTAINMENT BOWLING COMPANY F123-ARCADE & GAMES SPORTS BAR CHAMOSA LIBERTY SHOES (51:49) FOOTMART RETAIL(I)LTD FASHION & SPORTS SHOE FACTORY PLANET RETAIL(49:51) WEAR KIDS WEAR RETAILING (15.73%)STAKE FINE DINING RESTAURANT 2,500 30,000 7000-20,000 LIFESTYLE 100 LIFESTYLE LIFESTYLE

6,000-15,000 VALUE LIFE STYLE VALUE HEALTH ,BEAUTY & GJ FUTURE FASHIONS LTD.(50:50) GINI & JONY MANIPAL HEALTH WELLNESS AIRPORT(DUTY FREE SYSTEMS MANIPAL CURE & CARE (50:50) TAWALKARS(50:50) 1,500-5,000 SHOPPING) LIFESTYLE & VALUE LIFESTYLE INSURANCE ALPHA AIRPORTS ALPHA FUTURE(50:50) REITS & MALL MGMT ASSICURAZIONI GENERALI (ITALY) FUTURE GENERALI(58:16:26) CAPIA LAND (50:50) J V
Source: PANTALOON PRESS

RETAIL.LTD (SINGAPORE) Page 36 Institute Of Business Studies & Research Pune (Satish P.Goyal)

Launched in May'04 at Bangalore, Central is a

CE TRALS
was to give customers an unobstructed and a pure shopping experience and to ensure the best brands showcase, seamless mall and the first of its kind in India. The thought behind this pioneering concept Central offers everything for the urban aspiration shopper to shop, eat and celebrate . Located in in the Indian market are made available to the discerning Indian customer. us; instead we must be present where customers frequently visit. the heart of the city, Central believes its customers should not have to travel long distances to reach India. At Central, customers no longer only shop, they get SHOP-ATAINED! In a short span of its existence Central has revolutionized and redefined the shopping experience in

Fig 3.1 central strategy

Central strategy
Page 37 Institute Of Business Studies & Research Pune (Satish P.Goyal)

1.

Applying the Retailing concept in Relation to Central

2. Customer Orientation central determine the attribute and needs of it's customers. employees make their best service to customer. Coordinated Effort central integrates all plan and activities to maximize efficiency. All the Value Driven central offer good value to customers whether it to be discounter or up sale 3. 4. this means having the price appropriate for the level of product and customer service achieve the one hundred crore target in 2008. Goal Orientation - central set goals and then uses a strategy to attain them. central set goal to experience customer service, and relationship retailing. The marketing concept (known as retailing To relate the marketing concept to retailing, with an emphasis on the total retail The total retail experience includes all the elements in retail offering that encourage concept when applied to retail situations) should be understood and used by all the retailers. price. The brands carried, and inventory in hand are controllable by a retailer, others like the adequacy consumers during their contact with retailer. Many elements such as number of sale people, displays retail experience is unsatisfactory, consumers may not buy a given good or service. of on-street parking, the speed of on line shopping and sale taxes are not. If some part of the total goods. Synapses indicate price of the goods. Smart sales people, they always maintain eye The total retail experience of CE TRAL is very good. There is goods systematic display of Institute Of Business Studies & Research Pune (Satish P.Goyal) contact with customer. There are good branded item's are available in CENTRAL store.

Page 38 A retail strategy is overall plan that guide a firm. It consists of situation analysis objectives

Strategic Planning in Retailing

Situation Analysis
identification of customer market, broad strategy specific activities, control and Feedback. Sales Organisational mission Ownership Management alternatives Goods/Services Category Mass Marketing Profit Satisfaction of Publics Image

Objectives
Concentrated Marketing Differentiated Marketing Feedback

Identification
Controllable Variables

Overall Strategy
Daily and Short term Operations Uncontrollable Variables Evaluation Responses of environment

Control Specific activities

Element of Retail Strategy Adjustment Institute Of Business Studies & Research Pune (Satish P.Goyal)

Fig 3.2 retail strategy

Page 39 their objectives Sales (growth, Stability and market share) Profit (level, return on investment, Objectives are the retailer's long term and short term goal. A firm may pursue one or more of pinioning (customer and industry perception) and efficiency) Satisfaction of public (Stockholders, consumers and others) and image A firm can sell to a broad spectrum of consumers (Mass Marketing) Zero in an one consumer Next consumer characteristics and needs are determined and a retailer elects a target market. (differentiated marketing) with repeated retailing approaches for each. group (concentrated Marketing) or aim at two or more distinct group s of consumers can directly affect) Uncontrollable variable (factors of a firm cannot control and to which it A broad strategy in then formed. It involve controllable variables (aspects of business a firm Controllable Variables must adapt) 1. Uncontrollable Variables 3. 2. Managing business Store Location and pricing Merchandise management 2. Competition 1. Consumers 4. 3. Technology Customer Communicating with the 5. Seasonality 4. Economic Condition Page 40 Institute Of Business Studies & Research Pune (Satish P.Goyal)

Institute Of Business Studies & Research Pune (Satish P.Goyal)

Central Mall

Page 41 Store Location -

Controllable Variables of Pune central

It Cover the customer of shivajinagar, aundh, & north-western part of Pune, which has 1. 2. emerged as an IT hub. Central also include for certain type of home wares & other thing. Central provides a complete shopping service for a major part of consumer shopping. The record area of strategic planning managing a business into two major element human resources.

Managing of Business
there are special promo area for different event. The Retail Management - Management look like promotion, display are very good at central At the end of week central give special offer in merchandise. Special price policy like Buy 2 gets one Free. Product Mix Central

Merchandise Management and Pricing:

merchandise are in the More is according to their classification. keep all the category of merchandise. Different choices of regard to pricing central choose several pricing techniques (such as leading following, cost Price - Central charge medium& high price but offer wide range of deep assortment. With More is image and quality of goods and service offered. plus/demand oriented and so on) then decide what range of price is set, consistent with the Consumers - Basically central target upper medium& high class people According to this Uncontrollable Variables : Institute Of Business Studies & Research Pune (Satish P.Goyal) central learns about its target market and from a strategy consistent with consumer trends and

Page 42 services that are beyond the price range of its customers not wanted, or not displayed or desire. Selecting a target market is within a retailer's control but the firm cannot sell goods or

Competition - Competition in retail sector increasing in India. Retail industry even organized
advertised I n proper manner. Kerala, Subiksha ,Nilgiri in Chennai) Big Bazaar , Reliance and Spencer are close rivals of retail is fragmented industry in India. Every region has local competitors (Margin Free in Government has gave the approval F.D.I. in retail sector so it will increase competition n More make a good presence in Maharashtra while R.P.G. make good presence in south India. Technology - In today's world of retailing technology is advance rapidly. Computer system is retail rector wall Mart J.C Penny, Mark & Spencer could inter in Indian Market. merchandise handling and inventory control. available for inventory control and check out. Operation. Bar coding has revolutionized Per capita income as increase by 5.2% in this fiscal year. G.D.P. also increase people have more Economic Conditions - Economic condition of India is more better than one decade before. product (GDP) are Just some economic factors with which a retailer copes and which it cannot change disposal income. Unemployment Interest rate, inflation tax levels and the annual gross Domestic local economics. In outlining the controllable to consider and adapt to forecast about international, national state and Page 43 Institute Of Business Studies & Research Pune (Satish P.Goyal)

Understanding the Retail operations. WORK DO E

each segment . I did my summer project from Central 2. In Central there are 5 floors and each floor is divided into more . Ground floor is having all international brands like Lacoste , Tommy Hilfiger , Nautica and many Second floor is divided into 2 sections in which 1 section is for all Casuals in which we have First floor is having ladies and kids section and Shoes section . brands are existing like Adidas , Nike , Puma , Converse etc. brands like Lee, Levis, Lee Cooper etc. and the another section is for Planet Sports in which all main Hausen, Wills lifestyle etc. and we also have ethnic wears also in which we have Akkriti and Third Floor is for all Mens formal dressings like Arrow, Excalibur, Peter England, Urbana,Van Fourth Floor is for Casuals wearing and Home Furnishing also in casuals we have brands like Manyawar. Fifth Floor is divided into 2 segments. 1 is for Food court named as Spoon the food court and Provogue, Status quo, M Square, Proline and many more brands. These are the segments and floors in which central 2 is divided. I did my project basically for 3rd another section is for Food bazaar in which you can get all the FMCG goods . In each floor there is the Floor Manager, ADM(asst. departmental manager), Team leader, floor which is known for FORMALS SECTION. Institute Of Business Studies & Research Pune (Satish P.Goyal) CSAs. all these people working for a floor.

Page 44 OPERATIONS. These are the parameters which is to be followed and maintained by every After my 3 months project in CENTRAL I can say there are 6 PARAMETRES OF RETAIL 1 STOCK. organization . 3 CUSTOMER& CUSTOMER SERVICE. 2 STAFF. 5 VISUAL MARCHE DISI G. 4 SALES.

STOCK
6 MARKETI G & PROMOTIO AL EVE TS. On which brand we have a full option & cut option .so we have to make option plan of the floor Stock is very essential part of operation. We should know about the stock presence on the floor. We makes stock requirement also of those product which is fast moving & on demand items. every Monday. the refilling and replenishment of the stock . The stock has to be refilled accordingly. A manager should also aware about each and every brand requirement and he has to make sure about sometimes we send it to Brand Factory. Sometimes some of the items are not moving in brands then we send it back to the vendors or only one thing that is profit . In central for earning profit we daily distributed the targets for each and

Profit Maximization- In Retail industry at the end of the day the one thing which matters is
also got there brands targets on monthly , quarterly and yearly bases . For the achievement they do every brands and these brands have to perform better for the achievement of the their targets . They contribution. hard work and if they succeed in achieving their targets then they get incentives according to their Page 45 Institute Of Business Studies & Research Pune (Satish P.Goyal)

In Operations Staff plays a important role in achieving the targets . Sales executives are the persons

Staff
Customer cant meets to the Managers directly. which are directly interacted to the customer and they know what the customer actually want. We daily check the grooming of staff just like hair cut, clean clothes, etc & their eye contact, body So its necessary that staff should be well groomed & interactive to the customer. We should train the staff time to time like: language, communication skill etc. How to communicate with customers? How to make the customer to purchase more? How to increase the selling? Customer is most important thing in retail .

Customer & customer service

opportunity. To better understand the rationale behind this theory and to face the challenge, In retail, this idea of focusing on the best current customers should be seen as an on-going

we need to break down shoppers into five main types:

than 50% of our sales. Loyal Customers: They represent no more than 20% of our customer base, but make up more Discount Customers: They shop our stores frequently, but make their decisions based on the

size of our markdowns. list, but come into the store on a whim. They will purchase what seems good at the time. Impulse Customers: They do not have buying a particular item at the top of their To Do Page 46 Institute Of Business Studies & Research Pune (Satish P.Goyal)

Wandering Customers: They have no specific need or desire in mind when they come into eed-Based Customers: They have a specific intention to buy a particular type of item.

If we are serious about growing our business, we need to focus our effort on the loyal
the store. Rather, they want a sense of experience and/or community.

of customers do represent a segment of our business, but they can also cause us to misdirect customers, and merchandise our store to leverage the Impulse shoppers. The other three types We can delight our customer if we give them better service. In Centrals we give some our resources if we put too much emphasis on them. following service to our customers : Gift wrapping. Discounts. Exchange in 7 days. Some time we do home delivery also

VISUAL MERCHA DISE- Visual Merchandising is the art of displaying

Free alterations. the merchandise in an aesthetically pleasing fashion, presenting them in a way that would merchandise in a manner that is appealing to the eyes of the customer. It sets the context of and talented retailer can use this upcoming art to breathe in new life into his store products. convert the window shoppers into prospects and ultimately buyers of the product. A creative of V.M is to aware about what merchandise is available in store. Visual merchandising is acted as a silent communicator to the customer. The main function
Page 47 Institute Of Business Studies & Research Pune (Satish P.Goyal)

and any other special sales promotions taking place. Visual merchandising includes window displays, signages, interior displays, cosmetic promotions

Educating the customers about the product/service in an effective and V.M also helps to customers as Establishing a creative medium to present merchandise in 3D environment, creative way. Setting the company apart in an exclusive position. thereby enabling long lasting impact and recall value. keeping the product in prime focus. Establishing linkage between fashion, product design and marketing by the business. Combining the creative, technical and operational aspects of a product and decision within shortest possible time, and thus augmenting the selling Drawing the attention of the customer to enable him to take purchase

Sales
process.
Consider these facts.

How will you survive and grow in profitability in today's very competitive marketplace?
2. You're stretching your advertising dollars as far as they'll go. 1. Your margins are already stretched. Then how will you compete? 3. You don't have the brand or product loyalty that you once had. Page 48 Institute Of Business Studies & Research Pune (Satish P.Goyal)

You'll compete by maximizing your greatest source of productivity -- your people! It's simple! 1. Few companies budget sufficient dollars to professionally train their sales Look at these realities. 2. Most retail salespeople are poorly trained in professional selling skills. And customer contact people. 4. Old-fashioned sales techniques are outmoded and contribute to turnover and poor job performance. 3. Most training is product training. Around 15% to 25%. Modern day, value-focused selling can usually increase a salesperson's effectiveness achievement of our target:As a Manager we have to look up following thing, so that we know about our actual selling & Walk ins- no. of customers is coming in our mall? Average bill value- total sale/no. of bill o. of bills- how many customers are purchasing out of them? Specific brands contribution towards mall- Van hausen, Arrow etc. is the brands who are Floor contribution towards mall- for ex. Floor 3 contributes 15 to17 % of mall selling. contributing higher in floor 3. Sales in month /sq. feet area =sq feet return in month/ no. of days. Sq. feet return of the brand- each brand has to provide a specific area in sq. feet Page 49 Institute Of Business Studies & Research Pune (Satish P.Goyal)

In order to ensure the success of an event or promotion, it is necessary that the store where

Managing Promotions, Events, Alliances and partnershipManaging alliances and partnership with local partners is also an important part of store action is to take place be geared for the same. Display of merchandise and point of purchase material has to be managed at the store level. operations. storage needs and replacing the product when needed. An integral part of managing a super market is an understanding of fresh produce and its During my project in central they organized event named as THE GREAT FRENCH AFFAIR Control of perishables and sanitations are two important aspects of the operations of the store. By celebrating this festival they tried to experience the French culture. The main purpose of this event was to get familiar our customers with the French culture. It can be defined as strategic and tactical planning program and the attendant execution exercises for a

Marketing promotion& events

(Short term) Consumer promotion can do brand using the full mix of communication. 2. Build Market share 1. Increase sales 4. Stimulate retrial 3. Generate awareness and trial of new brand 6. Generate purchase continuity 5. Encourage repeat purchases 8. Stimulate trade-up to larger sizes 7. Provide alternate usage suggestions. 10. Defense against competitive activity 9. Temporary adjust pricing Institute Of Business Studies & Research Pune (Satish P.Goyal) 11. Excite the sales force.

Page 50 1. I was the part of 3 events in PU E CE TRAL The Great French affair. 2. 3. EOSS (end of season sale). Youth buzz. Come fall in Love! With the spirit of France... The Great French Affair 10th May - 1st June 2008. Wine Tasting: Come get a heady taste of the finest French wines on all weekends. Experience the glamour of Eiffel Tower at Central chef on all weekends. French Feast: Watch mouth watering French delicacies being whipped up by a renowned Paris Runway: Watch the leading models sizzle on the ramp in designer French collections Le Pastry: Delectable French pastries will have you begging for more. French Makeover: Get a stunning 'Ooh la la' French Style makeover. on May 17th & 24th 2008. La Troupe: Sizzle, Shake and Cheer with French Cancan dances on May 10th 2008. Dance Classes: Learn charming French moves from leading dancers on all weekends

Youth buzz :
Art De Portrait : Get your portrait sketched by a true blue French Double your eat Double your shopping. Youth buzz offering you no. of discounts & offers like Double celebrate Denim exchange mela. Offering apparels like future C.E.O., Saturday night fever. Magic weekend Institute Of Business Studies & Research Pune (Satish P.Goyal) Overall response from the customer was good.

Page 51

THE BIGGEST DISCOU T CHALLE GE BY CE TRALS EOSS: (E D OF SEASO SALE)

Basically EOSS means stock clearance sale. During this period there were huge no. of discounts

HAPPI ESS SALE UPTO 50% OFF*

During this sale period huge crowd was there, because of discounts on each and every item. are over there. to each and every company for this period. Main thing in this period is stock. Before 10 days of the sale period we send requirement of the stock There were special offers on 15th ,16th,17th AUGUST because of INDEPENDENCE DAY, RAKSHA Main work during this season is to manage all thing including signages, proper updates of offers.

How can you better present your store and products to the buying public?
BANDHAN. Front Signage: Start by doing a basic evaluation of your store. Is your sign clearly visible and in good repair; no holes, cracks or burned out bulbs? Is your sign up-to-date or is it old and dated-looking? Do you have adequate signage for your building as it relates to street visibility? Does your sign tell customers what type of products you sell at a glance? Interior Signage: Does your signage make a strong statement about your company? Does your product signage describe the high points or features of the product? Is your product signage uniform in design? Page 52 Institute Of Business Studies & Research Pune (Satish P.Goyal)

 Is directional signage easy to see and understand at a glance? Is signage up to date? Floor Coverings: Do you use signage as part of your visual merchandising? Is your carpet clean, lying well, and vacuumed? Is your floor clean and fresh looking? Are you using multiple styles of floor coverings to direct traffic flow and distinguish between Is your entry clean and in good repair? Lighting: departments? If using fluorescent bulbs are all bulbs the color temperature? Are all of your bulbs operating and in good condition? Are you using Track or spotlights to create focal points? Is your appliance area bright in contrast to the more subdued electronics area? Housekeeping: Good white light 3500 to 4100K should be used to light an appliance section. Is your product neat and tidy? Is your store clean? Are floors waxed and buffed, carpet shampooed and vacuumed? Is your exposed office area neat with continuity? Are your aisles free of clutter and boxes? Do your store fixtures match or are they a conglomeration of manufacturer's displays? Store Display Fixtures: Are your fixtures being used for the products for which they were intended? Are your fixtures broken or in disrepair? Page 53 Institute Of Business Studies & Research Pune (Satish P.Goyal)

gondolas, etc.) Does your store use store fixturing? (Appliance fixtures, built-in fixtures, platforms, Trainee. Apart from these there are some work which were performed by me as a Management sale. 1. Daily distributing sales report to each and every CSA including target & last nights 3. Keep details of all the inwards & outwards on the floor. 2. Daily check the global counting book of the stock. 5. At the weekends (sat. & sun) help cashiers for packing & sometimes for billing also. 4. Check whether the staging & color blogging is perfect or not. brand & their requirement of stocks also. 6. On the Mondays collect the details of fast moving merchandize from each and every what is the French festival is all about? 7. During the GREAT FRENCH AFFAIR I had perform the job to tell every customer request each and every customer to feel the feedback form. From which I can get 8. After this festivals, I also work for Customer Feedback Counter. Where I had to 9. During the sale period (eoss) lots of work there which I performed.(staging, color more knowledge of customer behavior, there expectation from the mall. huge stock in each section. blogging, stock inwards, placing of gondolas, rearranging the section because of a 11. On the billing counters it really tough to handle the customers over there, for that 10. During EOSS sometimes I help for alteration also.

This is all about my project profile during my internship.

purpose I was always there to solve all the problem. Page 54 Institute Of Business Studies & Research Pune (Satish P.Goyal)

Research 1: DATA A ALYSIS

Sample size: 200 customers

Objective: To collect whole detail about the awareness of customers towards FUTURE CARD.
OPTIONS How often do you buy apparels (clothes)? Once a month Once a year Thrice a month Twice a month RESPONSE TOTAL 35 25 75 65 How often do you buy apparels (clothes)? 200
34% 16% Once a month Once a year Twice a month 20% 30% Thrice a month

Institute Of Business Studies & Research Pune (Satish P.Goyal)

Fig 3.3 often buy apparels

Page 55

Options 2. From where do you buy your apparels (clothes)? Central Pyramid Mega mart Shoppers Response Total 80 60 10 50
5%

200
30% 25% Centrals pyramid Mega mart shoppers

Fig 3.4 where do u shop?

40%

Below 18 yrs

3. Age of the customer ?

45 Between 18 to 25 yrs Between 25 to 35 yrs Between 35 to 45 yrs Above 45 yrs 47 63

10 35 Page 56 Institute Of Business Studies & Research Pune (Satish P.Goyal)

4. Gender of the customer? Fig 3.5 age of customer

Fig 3.6 gender a. Male b. Female Options 5. Income range of the customer (per month)? response >15000 20000-25000 25000-30000 30000 above
Institute Of Business Studies & Research Pune (Satish P.Goyal)

12 62 56 70

Page 57 6.

Fig 3.7 income range

Less than

How much do you normally spend on apparels (clothes) bought from shopping malls in a single shopping ? 32
500 Between 500 to 1000 Between 1000 to 2000 Between 2000 to 5000 More than 5000 Not Applicable

47 43 15 43 Institute Of Business Studies & Research Pune (Satish P.Goyal) 20

Page 58
LESS THAN 500

NORMALLY SPEND ON SHOPPING

BETWEEN 1000BETWEEN 5001000 22% 2000 BETWEEN 200021% MORE THAN 5000 5000 NOT APPLICABLE 23% 8% 10%

Fig 3.8 spend on shopping

16%

OPTIONS 7. Customers aware of FUTURE CARD Loyalty Programme in CE TRALS ? No Yes RESPONSE TOTAL 140 60

CUSTOMER AWARE OF
200
30%

FUTURE CARD
NO YES

Fig 3.9
70%

Page 59 Institute Of Business Studies & Research Pune (Satish P.Goyal)

OPTIONS

8. Reasons for not being aware of FUTURE GROUP?

Not inform by any CSA Dont have any idea RESPONSE Dont have any display 60 70

Total
70

FIG 3.10 RESO S 200

OPTIONS 9. Do you have FUTURE CARD? No Yes RESPONSE TOTAL 150 50 Institute Of Business Studies & Research Pune (Satish P.Goyal) 200

Page 60

10. Are you interested to be a part of FUTURE CARD? FIG 3.11

Yes OPTIONS TOTAL No 150 RESPONSE 200 50 THIS RESEARCH IS BASICALLY FOR THE LOYALTY SCHEMES. FIG 3.12 Institute Of Business Studies & Research Pune (Satish P.Goyal)

This questionnaire is totally about loyalty card in CENTRALS

Page 61

Research 2 :
Second research has been done to collect data about the comparative analysis among the competitors. stores in PU E. Objective : To collect data for COMPARATIVE A ALYSIS with respect to other
PARAMETERS Sample size: 200 customers. CE TRAL PU E STOP SHOPPERS 34 29 WESTSIDE PIRAMYD Price MEGA MART Available Brands Trial Rooms Product Range Customer Offers Parking Service Events Store Layout Food court Ambience 68 Loyalty scheme 34 79 23

45 46 17 67 25 78 87 23 85 21 17 42 34 72 23 34 46 12 43 34 23 17 30 98 12 110 103 167 98 23 33 32 22 08 12

33 75 34 36 10 54 32 80 18 29 10 23 14 12 06 10 05 13

Table no. 3.4

00 Page 62 Institute Of Business Studies & Research Pune (Satish P.Goyal)

FIG 3.13

Q.1) Which store you find the price best?

parameter 34% people likes to shop in CENTRALs. The main reason behind is the in house brands I TERPRETATIO & SUGGESTIO : From the above chart we can say that on the basis of price as a range of options & sufficient space for each and every brand & good service. As compare to price of PANTALOONS which are really very affordable to everyone who comes for shopping & wide

Q.2) Which store you find that there is a good range of brands available?
range there is close competition. So CENTRAL have to keep focus on each & every brands. I TERPRETATIO & SUGGESTIO : From the above chart we can say that on the basis of brands FIG 3.14 Institute Of Business Studies & Research Pune (Satish P.Goyal) available 39% people prefer to shop in CENTRALs. The reason is availability of various brands as

Page 63 each and every brand, wide range of options. well as various in-house brands. As compare to other competitors CENTRALS have more space for FIG 3.15

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

range 33% people prefer to go with CENTRALS. It has a good range of products as various in-house I TERPRETATIO & SUGGESTIO : From the above chart we can say that on the basis of product brands and introducing various in-house brands. brands are also available with economical prices. They can still improve upon by getting various other FIG 3.16 Q.4) Which store has a good trial room facility? are satisfied with the trial rooms at CENTRALS as compared to other stores in Pune. So I TERPRETATIO & SUGGESTIO : After interpreting the chart we come to know that 43% people Page 64 Institute Of Business Studies & Research Pune (Satish P.Goyal)

space in each trial room, which made by latest technology. CENTRALS should maintain the service of trial room in the same manner. Another reason is enough FIG 3.17 Q.5) Which store has got good promotional offers? feel the offers in CENTRALS are really good & attractive. So customers are satisfied with the offers I TERPRETATIO & SUGGESTIO : After interpreting the chart we come to know that 39% people

Q.6) Which store provides the best service?

that CENTRALS launches at regular intervals. Institute Of Business Studies & Research Pune (Satish P.Goyal) FIG 3.18

Page 65 42% people feel that the service (free alteration, exchange policy, staff suggestions, redeem parking I TERPRETATIO & SUGGESTIO : Taking into consideration the above statistics we can see that should keep enhancing the loyalty program and should keep in mind that customer is the king so we coupon etc.) given by CENTRALS are much better as compared to other stores in Pune. So they

Q.7) Which store has a good parking facility?

need to provide best services to keep the customers loyal. I TERPRETATIO FIG 3.19 that parking is not a problem at CENTRALS. As compare to other stores in PUNE, only & SUGGESTIO : We can interpret from the above chart that 49% people find basis. Its parking is in basement that why customers get more space for parking. While paying the CENTRALs has its own space for parking other than others , because they are parking on the sharing basement. In centrals they provide valet parking also which is not there in other stores in PUNE. shopping bill they can redeem the parking coupon. There is the lift facility for customers to the Page 66 Institute Of Business Studies & Research Pune (Satish P.Goyal)

FIG 3.20

Q.8) Which store has a good store layout?

& SUGGESTIO : We can interpret from the above chart that 54% people feel I TERPRETATIO to shop. Each section gives enough space that customers can easily go and select their favourite item. that it is comfortable to move around in the store. The items in the store are visible and its convenient encourage customer to shop inside the mall. In CENTRAL mall each section is divided in to various section. There is food court also which also FIG 3.21

Q.9) Which store has organize good events?

& SUGGESTIO : We can interpret from the above chart that 55% people feel I TERPRETATIO organised various events such as YOUTH BUZZ in this we organise SALSA DANCE competition, that events organised in CENTRALS is better than other stores in PUNE. During my internship we Page 67 Institute Of Business Studies & Research Pune (Satish P.Goyal)

response of customers because of that during those days sale of the mall also increases. DENIM EXCHANGE MELA, electronic AUCTIONS etc. In all these events there is huge FIG 3.22

Q.10) Which store has good ambience?

& SUGGESTIO : We can interpret from the above chart that 49% people feel I TERPRETATIO attention towards the customers requirement what they want? What are their expectations towards the that ambience in CENTRALS is better than other stores in PUNE. Basically CENTRALs pays more

Q.11) Which store has good food court?

mall. Institute Of Business Studies & Research Pune (Satish P.Goyal) FIG 3.23

Page 68 & SUGGESTIO : We can interpret from the above chart that 83% people feel I TERPRETATIO goes with the concept that , SHOP ,EAT, & CELEBRATE. That is the slogan of CENTRALs. that events organised in CENTRALS is better than other stores in PUNE. Because only CENTRALS approach of customers in CENTRALS. Other stores not allow any type of food stuff inside the mall. That the reason why there is huge FIG 3.24

Q.12) Which store has good loyalty scheme?

goes with CENTRALs. Only in this section CENTRALs lack behind others stores in PUNE. I TERPRETATIO & SUGGESTIO : We can interpret from the above chart that only 16% people Institute Of Business Studies & Research Pune (Satish P.Goyal) CENTRALs has to keep more attention towards this.

Page 69 Page 70 Institute Of Business Studies & Research Pune (Satish P.Goyal)

Observations:
From this above given questionnaire following are the observations & recommendations. month as compare to other customers. So these customers are loyal customers for 1. From this research, there are majority no. of customers who buys more than 3 times in a also there. These are also the targeted customers for the CENTRALS. CENTRALS. No of other customers who buys more than 2 times, 1 time in a month are to other competitors.( pyramid, shoppers etc.) means majority of customers are like to 2. There were higher percentage of customers who like to buy from CENTRAL as compare discounts, these remaining customers get diverted towards CENTRAL. shop from CENTRALS. So by organizing some events or with good product range & As per the data collected through this survey, we can say higher no. of customers are 3. 4. youngsters. Along with professionals, businessmen etc. between the age group 25-35. Majority of females customers are there, as compare to male customers. 5. income(30000+/month).who loves to shop in CENTRALs. They are really brand As per income range is concern, majority of customers are high class customers means 6. There are higher no. of customers who spend more than 3000 for their 1 time shopping, conscious. Basically main objective behind this questionnaire is to collect information about the more than 3000 also. Some customers are there who even shop more than 10000 also. As per the data collected by questionnaire, i am very disappointed by the result that is awareness about FUTURE CARD among the customers. The main reason behind it is that they dont have any idea about FUTURE CARD. Only only 30% customers were aware about the FUTURE card. Institute Of Business Studies & Research Pune (Satish P.Goyal) few of them know about it. The main reason behind it is, there is no display inside the mall

Page 71 customers only 30% customers have the FUTURE CARD. for FUTURE CARD. All the employees working over there are not aware of that, among 200 interested to be a part of FUTURE CARD. They are really very interested to be a member of After that i ask for their interest in FUTURE CARD, more than 75% customers are

Recommendations:
FUTURE CARD. They want more information about the FUTURE CARD. the FUTURE CARD. Because as we discuss above more than 75% customers really very As per all this data, as per my opinion is concern, CENTRALs have to think more about This one is really very important thing where CENTRALS have to be concentrate. interested to be a part of the FUTURE CARD. for promotion of FUTURE CARD. Including proper displays inside the mall, informing every Because of this they get more LOYAL customers. CENTRALS have to arrange some events At the cash counter keep any executive to give information to each and every customer. employees over there to tell every customers about the FUTURE CARD. customer get idea about FUTURE CARD. Or make a proper section for FUTURE CARD at the entrance of the mall. By that every Page 72 Institute Of Business Studies & Research Pune (Satish P.Goyal)

Page 73 Institute Of Business Studies & Research Pune (Satish P.Goyal)

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BIYANI. Book RETAILING by PATRICK M . DUNNE Retail management book by SUJA NAIR ICFAI JOURNALS. BUSINESS TODAY HARVADS JOURNALS MARKETING MANAGEMENT BY PHILIP KOTLER IT HAPPENS ONLY IN INDIA BY KISHORE Page 74 Institute Of Business Studies & Research Pune (Satish P.Goyal)

QUESTIO AIEER
APPENDIX
2) 1) AME : 3) ADRESS: AGE: 5) How often do you buy apparels (clothes)? 4) GE DER: Once in 15 days Once a Week Once every three months Once a month Once a Year Once every 6 months Pyramid 6) From where do you buy your apparels (clothes)? Shoppers Centrals Page 75 Institute Of Business Studies & Research Pune (Satish P.Goyal)

7) How much do you normally spend on apparels (clothes) bought from shopping malls in a Mega mart Less than 500 single shopping Between 1000 to 2000 Between 500 to 1000 More than 5000 Between 2000 to 5000 8) Customers aware of FUTURE CARD Loyalty Programme in CENTRALS ? Not Applicable No Yes Yes

11. Do you have FUTURE CARD? 10) Are you interested to be a part of FUTURE CARD?
No No Yes Page 76 Institute Of Business Studies & Research Pune (Satish P.Goyal)

QUESTIO AIEER
Research 2 :
stores in PU E. (CE TRAL, PRAMID, SHOPPERS, WESTSIDE, MEGA MART) Objective : To collect data for COMPARATIVE A ALYSIS with respect to other Q.1) Which store you find the price best?
Sample size: 200 customers.

Q.3) Which store has a good product range available? Q.2) Which store you find that there is a good range of brands available?
Q.5) Which store has got good promotional offers? Q.4) Which store has a good trial room facility?

Q.7) Which store has a good parking facility? Q.6) Which store provides the best service? Q.9) Which store has organize good events? Q.8) Which store has a good store layout? Q.11) Which store has good food court? Q.10) Which store has good ambience?
Institute Of Business Studies & Research Pune (Satish P.Goyal)

Q.12) Which store has good loyalty scheme?

Page 77