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Ankur report

  1. 1. PANTALOON RETAIL INDIA (LIMITED)PROJECT REPORTCustomer relationship management ANKUR KUMAR Roll NO. : 1
  2. 2. Guided ByMs. NUPUR KRISHNA Submitted by Ankur Kumar2|Page
  3. 3. .NO. PARTICULARS PAGE NO. Acknowledgement Preface Company profile Objective of the project Research Methodology LIMITATIONS Suggestions/Recommendations Bibliography3|Page
  4. 4. ACKNOWLEDGEMENTA project is never the sole product of a person whose name has appeared on the cover. Eventhe best effort may not prove successful without proper guidance. For a good project oneneeds proper time, energy, efforts, patience, and knowledge. But without any guidance itremains unsuccessful. I have done this project with the best of my ability and hope that it willserve its purpose.“To be or not to be is not anything which matters, how to be thankful is what really matters”It was really a great learning experience and I am really thankful to my faculties, who not onlyhelped me in the successful completion of this report but also spread his precious and valuabletime in expanding my knowledge base.I wish to acknowledge my gratitude towards LBSIMDS, my friends and all those persons whoare responsible for the successful completion of this project. ANKUR KUMAR4|Page
  5. 5. PREFACEBusiness, the world over are struggling to deal with competitiveness‟ in a rapidly globalizedeconomy. The boundaries of traditional trade partner are getting dissolved and emerging marketpresent future opportunities as well as new rivals. In such competitive global environment, it isimperative for every organization to generate the highest level of customer satisfaction. To attainthese objectives, it has become necessary for the organization to look for the high skilled andemployee according to job. These days, corporate across the world are facing a difficult task of “Customerinteraction”. Retaining its best employees, a company can improve customer satisfaction,product sales etc. in other words a business can be improve in all over direction. Future group is a reputed company; future group brand store such as life style, shoppersstop, etc. Pantaloons store selling many home brands and international brands for men‟s casualsand formals and also for kids and ladies.5|Page
  6. 6. introduction6|Page
  7. 7. FUTURE GROUPFuture Group is India’s leading business group that caters to the entire Indian consumptionspace. Led by Mr. Kishore Biyani, the Future Group operates through six verticals: operatesthrough six verticals: Retail, Capital, Brands, Space, Media and Logistics.Apart from Pantaloon Retail, the group’s presence in the retail space is complemented bygroup companies, Indus League Clothing, which owns leading apparel brands like IndigoNation, Scullers and Urban Yoga, and Galaxy Entertainment Limited that operates Bowling Co,Sports Bar, F123 and Brew Bar.The group’s joint venture partners include French retailer ETAM group, US-based stationaryproducts retailer, Staples and UK-based Lee Cooper. Group Company, Planet Retail, owns andoperates the franchisee of international brands like Marks & Spencer, Next, Debenhams andGuess in India. The group’s Indian joint venture partners include, Manipal Healthcare,Talwalkar’s, Blue Foods and Liberty Shoes.Future Capital Holdings, the group’s financial arm, focuses on asset management andconsumer credit. It manages assets worth over $1 billion that are being invested in developingretail real estate and consumer-related brands and hotels. The group has launched a consumercredit and financial supermarket format, Future Money and soon plans to offer insuranceproducts through a joint venture with Italian insurance.7|Page
  8. 8. The group is currently developing over 50 malls and consumption centers across the countryand has formed a joint venture company focusing on mall management with Singapore-basedCapitaLand, one of Asia’s largest property companies. .Future Group’s vision is to, “deliver Everything, Everywhere, Every time to Every IndianConsumer in the most profitable manner.” The group considers ‘Indian-ness’ as a core valueand its corporate credo is - Rewrite rules, Retain values.8|Page
  9. 9. Specialized besinesses9|Page
  10. 10. 10 | P a g e
  11. 11. Major Milestones1987 Company incorporated as Manz Wear Private Limited. Launch of Pantaloons trouser, India‟s first formal trouser brand.1991 Launch of BARE, the Indian jeans brand.1992 Initial public offer (IPO) was made in the month of May.1994 The Pantaloon Shoppe – exclusive menswear store in franchisee format launched across the nation. The company starts the distribution of branded garments through multi-brand retail outlets across the nation.1995 John Miller –Formal shirt brand launched.1997 Pantaloons – India‟s family store launched in Kolkata.2001 Big Bazaar, „Is se sasta aur accha kahi nahin‟ - India‟s first hypermarket chain launched.2002 Food Bazaar, the supermarket chain is launched.2004 Central – „Shop, Eat, Celebrate In The Heart Of Our City‟ - India‟s first seamless mall is launched in Bangalore.2005 Fashion Station - the popular fashion chain is launched11 | P a g e
  12. 12. all – „a little larger‟ - exclusive stores for plus-size individuals is launched2006 Future Capital Holdings, the company‟s financial arm launches real estate funds Kshitij and Horizon and private equity fund In division. Plans forays into insurance and consumer credit. Multiple retail formats including Collection i, Furniture Bazaar, Shoe Factory, EZone, Depot and are launched across the nation. Group enters into joint venture agreements with Generali.12 | P a g e
  13. 13. Pantaloon: A brief historyThe first Pantaloon was opened in Gariahat in 1997. Over the years, it has undergoneseveral 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 introducedits own private brands. Initially positioned as a family store, it finally veered towardsbecoming a fashion store with an emphasis on youth and clear focus on ‘fresh fashion’As India’s leading retailer, Pantaloon Retail inspires trust through innovative offerings,quality products and affordable prices that help customers achieve a better quality of lifeevery day. We serve customers in 85 cities and 60 rural locations across the countrythrough over 15 million square feet of retail space.Pantaloon Retail is the flagship company of Future Group, India‟s retail pioneer catering to theentire Indian consumption space. Through multiple retail formats, Pantaloon connect a diverseand passionate community of Indian buyers, sellers and businesses. The collective impact onbusiness is staggering: Around 220 million customers walk into the stores each year and chooseproducts and services supplied by over 30,000 small, medium and large entrepreneurs andmanufacturers from across India. This number is set to grow. Celebrate the Fresh Look, FreshFeel & Fresh Attitude at Pantaloons Fresh Fashion !Fashion is all about the now. Why, thenshould people not see a fresh look every time they walk into a Pantaloons store? That is thethought behind Fresh Fashion. An idea that has captured the imagination of young India. With13 | P a g e
  14. 14. a focus on the youth of today, Pantaloons offers trendy and hip fashion that defines the hopes andaspirations of this demography. Pantaloons Fresh Fashion stands out as a fashion trendsetter, onthe lines of how fashion is followed internationally. The „look‟ and „what‟s in‟ today for theseason is sacrosanct. Pantaloon takes its promise of fresh fashion very seriously makingavailable to its customers the latest in fashion every week! All Pantaloons stores reflect the newideology -- Fresh Feeling, Fresh Attitude, Fresh Fashion. The stores offer fresh collections andare visually stimulating thanks to appealing interiors and attractive product display!.Today, the fashion store extends to almost all the major cities across the country. Pantaloons hasestablished its presence with stores not just in the metros, but also in smaller towns.Pantaloons stores have a wide variety of categories like casual wear, ethnic wear, formalwear,party wear and sportswear for Men, Women and Kids.14 | P a g e
  15. 15. PARTNER COMPANIES OF PANTALOON 1. Home Solutions Retail (India) Ltd: 2. Future Capital Holdings: 3. Indus league clothing Ltd. : JOINT VENTURES COMPANIES 1. Planet Retail Holdings Ltd. : 2. Footmart Retail: 3. Capital Land Retail India: LINE OF BUSINESSe – offers the widest range of products at „lowest prices –everyday!‟ Having pioneered the retailing business in India, PRIL has now decided to revolutionize the consumer e-commerce business in India. It intends to provide customers with a streamlined, efficient and world class personalized shopping experience, which will be supported with the best technology platform.15 | P a g e
  16. 16. Buying products is a 3 step simple process. All one has to do is Search, Register and Buy. Here you can expect a shopping experience akin to shopping at an actual bazaar but with added simplicity & everyday low prices and an assurance of your product will be delivered within 7 days of purchase. We are proud to inform you that Future Bazaar has been named as the Best Indian Website 2007 in the Shopping category by PC World. Future Bazaar won the top spot after beating other established players like Rediff, Indiatimes, Sify, ebay, Indiaplaza, Chennai Bazaar and India Mall. The award was presented to Future Bazaar for its "decent, no-nonsense approach, while providing a good shopping experience". 2.Food  Brew Bar: The Brew Bar is a classy and refined; yet reasonable an egalitarian a bar with loads of bonhomie.  Café Bollywood: Indian street food but with assurance of highest levels of hygiene and quality.16 | P a g e
  17. 17.  Food Bazaar: Life is all about good taste and food bazaar aims to ensure the same. With the low prices, a wide selection of products and guaranteed freshness, you are bound to find it irresistible.  Sports Bar: A bistro focused on the world of sport, the Sports Bar is complimented with an unrivalled ambience.3.Fashion:  ALL: Shop big and shop for big, coz fashion just got a little larger! Fashion for plus size people.  Big Bazaar: If value for money is what drives your purchase; there can be no better place for you other than Big Bazaar.  Blue sky: Accessories like never before....get the best in sunglasses and watches at your kind of prices.  Central: A showcase, seamless mall for all your needs. Located in the heart of your city, Central invites you to Shop, Eat, and Celebrate.  Fashion station: Fashion Station takes fashion a notch higher in the value segment... for the ones who have an eye for it.17 | P a g e
  18. 18.  Giny & Jony: Gini and Jony is a lifestyle brand with a radical approach to kids’ fashion. The brand caters to an age group of 2 to 16 years, that is uber chic, style conscious and stresses on a “head to toe” fashion concept.  Navaras: Navaras is a fine 22 carat pure gold and diamond jewellery brand, retailed from Big Bazaar stores.  Lee Cooper: Regarded as a brand that is fun to wear and be associated with, Lee Cooper offers the entire range of lifestyle products in fashions category for young men and ladies.  Pantaloons: Today a leader in fashion... Promises Fresh Fashion for18 | P a g e
  19. 19. PANTALOONS: Fashion by PantaloonsPantaloons is the companys departmental store and part of life style retail format. In fact, PRILtook its very initial steps in the retail journey by setting up the first Pantaloons store in Kolkata in1997. In a short time Pantaloons has been able to carve a special place for it self in the hearts andminds of the inspirational Indian customers. The Stores have entire range of Menswear,Women‟s wear, Kids wear, Active wear, Accessories, Cosmetics, Fragrances, Home ware,Jewellery, Toys, Books, Music, Stationery, Gift, Novelties, etc.With 16 stores across the country and an ever-increasing stable of private brands, Pantaloons - inthe coming years is poised to become a leading fashion trendsetter.Growth through private labels: A striking characteristic of Pantaloons has been thestrength of its private label programme. In Pantaloons 70% of apparel sales come from ownlabels. John Miller, Ajile. Scottsvile, Lombard, Annabelle, Honey, Bare are some of thesuccessful brands created by the company.Manufacturing: There is a drive for backward integration, into manufacturing. Pantaloons isa manufacturer retailer. Manufacturing helps the company plan the products better depending onwhat is selling at the stores and also helps better margin. The company has trouser manufacturingunit in Tarapur and a denim plant in Goregaon, Mumbai.19 | P a g e
  20. 20. CRM in Pantaloon20 | P a g e
  21. 21. CONSUMER BUYING BEHAVIOR Understanding the buying behavior of the target market is the essential task ofmarketing management under marketing concept. The consumer market consists of allthe individuals and households who buy or acquire good and services for personalconsumptions. The buying behavior tries to find out the answers for the questions, whobuys? How do they buy? Where do they buy? Do they buy?(A) FACTORS INFLUENCING CONSUMER BUYING BEHAVIORThere are four major factors that influence the buying behavior such as cultural factors,social factors, personal factors, and psychological factors.i. CULTURAL FACTORS: Culture is the most fundamental determinant of a person wants and behavior. Values, perceptions, preferences, and behavior are the main variable under culture of an individual. Each culture contains sub-culture like nationality, religious group, geographical area, and linguistic divisions etc.ii. SOCIAL FACTORS: A consumer behavior is also influenced by social factors such as the consumer reference group family and social roles and status.iii. PERSONAL FACTORS: A buyer decision is also influenced by his or personal characteristics, notably the buyers age, lifestyle, occupation, economic circumstances etc.21 | P a g e
  22. 22. iv. PSYCHOLOGICAL FACTORS: a person buying choice is also influenced by four major psychological factors such as motivation, perception, learning belief and attitudes(B) BUYING DECISION PROCESSIt includes buying roles, types of buying and steps in buying process.I. BUYING ROLEThe buying role could be classified into four parts. These are initiator, influencer, deciderand buyer.II. TYPES OF BUYING BEHAVIORConsumer decision taking varies with the type of buying decision. There are four typesbuying behavior such as Complex buying behavior, Habitual buying behavior, Varietyseeking buying behavior.III. STAGES IN BUYING DECISION PROCESSHere are five stages in buying decision process namely problem recognition search,evaluation of alternatives purchase decision and past purchase behavior.NEED RECOGNITIONThe buying process starts with the buyer‟s recognition of a problem of need. The buyersenses a difference between his actual state and desired state.22 | P a g e
  23. 23. INFORMATION SEARCHThere are different sources from where a consumer can gather information like personalsources commercial sources, experimental sources.EVALUATION OF ALTERNATIVESAfter gathering information about different products the customer will be in a fuss as tochoose which product among the mainly alternatives consumer usually evaluate thealternatives on traditional basis, on the basis of utility function etc. from the manyalternative consumers at last choose the best one for him.PURCHASE DECISIONA consumer who decides to execute purchase intention will be making up to fivepurchase decisions.POST PURCHASE BEHAVIORAfter purchasing the product and services the consumer will experience some level ofsatisfaction or dissatisfaction with the product and services that will influence subsequentbehavior. If consumer is satisfied he may show the probability of buying the product thenext time, satisfied customer will say good thing about the product, proving the statementthat "satisfied customer is the best23 | P a g e
  24. 24. Advertisement.” A dissatisfied customer may take some action against it. They may try toreduce the dissonance by abandoning returning the product.Understanding consumer needs and buying process is the foundation of any company. Byunderstanding how buyers go through problem recognition, information search evaluationof alternatives, the purchase decision and post purchase behavior marketers can pick upmany clues as to how to meet buyers need. LITERATURE REVIEWMarketingMarketing is a societal process by which individuals and groups obtain what they needand want through creating, offering and freely exchanging products and services of valuewith others or otherwise it is the process of planning and executing the conception,pricing, promotion and distribution of ideas, goods, services to create exchanges thatsatisfy individual and organizational goals.Marketing StrategyMarketing strategy is a set of objectives, policies and rules that leads the companysmarketing efforts. It is the marketing approach to accomplish the bread objective of the24 | P a g e
  25. 25. marketing approach to accomplish the bread objective of the marketing plan. The variousprocess of marketing strategy are given below. 1. Selecting largest markets segmentation 2. Positioning 3. Product 4. Price 5. Place 6. Promotion 7. Research and development 8. Marketing research25 | P a g e
  26. 26. Market segmentation and selecting target marketIt is an effort to increase a companys precision marketing. The starting point of anysegmentation discussion is mass marketing. In mass marketing, the seller engaged in themass production, mass distribution and mass promotion of one product for all buyers.Market segment consists of a large identifiable group within a market with similar wants,purchasing power geographical location, buying attitudes or buying habit. It is anapproach midway between mass marketing and individual marketing. Through this thechoice of distribution channels, and communication channels become much easier. Theresearchers try to form segments by looking at consumer characteristics; geographic,demographic, and psychographic. After segmenting the market then target marketselected.26 | P a g e
  27. 27. 2. Positioning: - The positioning is a creative exercise donw with an existing product.the well known products generally hold a distinctive position in consumers minds. Thepositioning requires that every tangible aspect of product, price, place and promotionmust support the chosen positioning strategy. Company should develop a unique sellingproposition (USP) for each brand and stick to it, PPL consistently promotes its DAPfertilizer by Higher yield at lower cost. As companies increase the number of claims fortheir brand, they risk disbelief and a loss of clear positioning. In general a company mustavoid four major positioning errors. Those are under positioning over positioning,confused positioning and doubtful positioning.27 | P a g e
  28. 28. 3. Product: - A product is any offering that can satisfy a need or want. The major typesof basic offerings are goods, services, experiences, events, places, properties,organizations, information and ideas. The company gives more importance in quality,packaging, services etc. to satisfy the customers. The products has its life cycle. Theproduct strategies are modified in different stages of product life cycle.4. Price: - It is the most important aspect in companys point of view. Price of theproduct will be decided by the company according to the competitors price.5. Place: - This plays a major role in the entire marketing system. The companyemphasis on its distribution network. Proper distribution network gives properavailability of the product.6. Promotion: - Promotion is the one of the major aspects in marketing strategies. Byadopting various promotional activities the company create strong brand image. It alsohelps in increasing the brand awareness. It includes advertising, sales promotions andpublic relations etc.7. Research and Development: - After testing, the new product manager must developa preliminary marketing strategy plan for introducing the new product in to the market.The plan consists of three parts. The first part describes the target markets size, structureand behavior. The second part out lines the planned price, distribution strategy andmarketing budget for the first year. The third part of the development describes the longrun sales and profit goals and marketing mix strategy over time.28 | P a g e
  29. 29. MARKETING MIX Target MarketProduct Price Promotion PlaceProduct variety List price Sales promotion ChannelsQuality Discounts Advertising CoverageDesign Allowances Sales forces AssortmentsFeatures Payment period Public relation LocationsBrand name Credit terms Direct marketing InventoryPackaging TransportSizesServicesWarrantiesReturns29 | P a g e
  30. 30. MARKETING STRATEGY Marketing is not Euclidean geometry a fixed system of concept. Rather marketingis one of the dynamic fields with in the management arena. The market faces continuallya new challenge everyday and companies must respond to it positively. Therefore it isnot surprising that new market idea keep surfacing to meet new market place challenges. The market process is applicable to more than goods and services. Anythingrelated to market including ideas, events, policies, prices and personalities comes undermarket strategy. However it is important to emphasize opportunity in the market throughmarket strategy.Following strategies adopted by the organization. A strong quality of the product and customer satisfaction: Customers always believe in good quality product. in my Study I found that inpercentage term more people is quality conscious and not price conscious. Customersatisfaction is very important part of the organization that at any cost they have to fulfill. A growing relationship with customer and customer retention: Nowadays a good relation with customer is very important for organization. Sale istotally depending on the relation with the customers. Customers retention is also a major30 | P a g e
  31. 31. aspect for growing business. It means keep the old customer and try to make newcustomer. Focus on competitors activity: Every organization should must be careful about its competitors step, because theycan disturb the growing sales process of the organization. A growing emphasis on global thinking and local marketing planning: Companies are increasing by pursuing market beyond their borders. When they enterother countries they must follow the tradition of that country and also they make plan forlocal market that which type of product has more demand and how can it run in themarket. Promotional Strategy Under the market strategy promotional idea is very important. Organization providessome schemes or rebates to retailers or consumers. They make advertisement accordingto convenient of the people and the feature of the product. So on the basis of marketing strategy a organization runs in the market. It is severaltypes of which makes helpful to increase sales and turnover of the organization.31 | P a g e
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  33. 33. RESEARCH METHODOLOGY:RESEARCH METHODOLOGY: The research ffor tthe sttudy compriised off:: The research or he s udy compr sed o A. SECONDARY RESEARCH: A comprehensive secondary research was carried out to find out the various factors that affect the buying decisions of the consumers in a department store. The main objective of this study was to analyze how much significant effect each of these factors has on conversion rate of a store and also their influence on the buying decisions of the consumers. It consisted of: - Searching secondary data sources, which included books, journals, magazines, Internet, library, etc. - Research and analysis of the secondary data collected from the store to determine the trends.33 | P a g e
  34. 34. LIMITATIONS OF THE PROJECT1) Organized retailing in India as an industry has just started to prosper with the emergence of FDI1 in retailing and emergence of shopping malls2 in India2) The loyalty programme of organized retailers mentioned in the project are very similar compared to international loyalty programs3) The CRM implementation in retail has just been started in retailing in the form of supplier goods purchase and customers4) The Study is too small to predict the initial reaction of customers towards different loyalty clubs5) Time needed to study the CRM Process along with the loyalty programs of the retailing industry6) In relation to customer loyalty Study the organization also needs to do employee loyalty Study which would form a base to an CRM process34 | P a g e
  35. 35. Research Findings - Customer Relationship management in pantaloons3.1 SCIENCE OF SHOPPINGThe science of shopping is a hybrid discipline, part physical science and part social science andonly part science at all because it is also an art. It is a practical field concerned with providinginformation that can improve the retailers edge and the odds of making a wrong decision. Muchof the value of the science lies in the ability to go beyond collecting data and making educatedguesses about what it means and how best to respond.3 “A recent study discovered that 75-80 per cent of shoppers often leave a store without anypurchases due to the inability to find products or differentiate between them.” Here comes thetwo-fold challenge. How to connect with the customer and at the same time grow in acompetitive marketplace crowded with similarities at every level? Since the mass market anduniversal audience are things of the past, traditional advertising no longer works to convey abrands image with a difference. In search for growth, companies must think beyondconventional avenues. For most, growth is not always about square footage expansion butmaking the most of what they already have.The very concept of conversion rate implies that shoppers need to be transformed into buyers,i.e. when potential customer becomes an actual customer. Conversion rates vary widely35 | P a g e
  36. 36. depending on what kind of store or product were talking about. In some sections of thesupermarket, conversion rate is probably 100% (dairy or toilet paper). In an art gallery full ofpaintings, probably the conversion will be less than 1%. Conversion rate measures what youmake of what you have - it shows how well or how poorly the entire enterprise is functioning.3.2 CUSTOMER SERVICEFor a retailer, it costs more to get new customers than to keep the ones you have. Also the longeryou can keep a customer, the more valuable that customer becomes. Studies done by consultantssuch as McKinsey have shown that repeat customers generate over twice as much gross incomethan new customers.4 "Firms that only understand buyer behavior may do a good job of selling existing productswithin existing channels of distribution. But firms that understand consumption behaviors areable to create value with new or improved products and distribution channels.”For example, if an apparel retailer wants to find out what types of clothing its typical customersreally want to buy, it might want to get into consumers closets, literally. Enlightened retailersmight ask women to show them how they put together their wardrobes -- how they use thefashions they own, which may span several years. From such an exercise, retailers can learn how36 | P a g e
  37. 37. consumers mix and match items, which items they choose to keep in their closets for many years,and why.However, many organizations do not allocate the time, or the money, to educate and train theiremployees to deliver the service customers want. Often, the reason is that those organizationsdont realize how important customer service is to their bottom lines.Importance of a good customer service:  Educating employees to provide quality service works to an organizations advantage in many ways. Of primary importance is that it improves customer retention. By finding out what services customers want -- and then delivering them -- businesses can develop and nurture a strong, loyal customer base.  Loyal customers are not only important, they are essential. 5”Research shows 65 percent of a typical organizations business comes from current loyal customers.” Besides making up a base of customers who continue to purchase a companys products or services, those loyal customers help drive the companys business by delivering the most powerful and cheapest form of advertising available: word of mouth. A strong customer base is the most credible source to potential customers, spreading the reputation of the business, free of charge, and attracting new customers.37 | P a g e
  38. 38. 6  As a customers relationship with [a] company lengthens, profits rise. “Customer defections have a surprisingly powerful impact on the bottom line. It is common for a business to lose 15 to 20 percent of its customers each year. When defections are cut in half, the average growth rate more than doubles. A five percent change in rate of retention swings profit increases from 25 percent all the way to 100 percent.”  Bad service has another pitfall: It causes employee turnover. Studies have shown that employee turnover was inversely proportional to employee perceptions of the quality of service provided by their employers. When service is perceived as bad, not only do consumers not like to patronize the company, but employees dont like to work for it.The highest turnover rates are associated with companies possessing the lowest employee ratingsof service quality. That finding was confirmed when Sears Studyed customers in 771 of itsstores. In stores that received relatively high customer service ratings, 54 percent of the salesforce turned over in a year compared with 83 percent at stores with low customer service scores.  How we treat customers throughout the year when they are purchasing or even when they are returning items, sets the stage for their future business. Contradictions in consistency will drive them to the competition. You see the gift at the holidays, is the gift our customers give us by coming back to show how much they have appreciated us all year long!38 | P a g e
  39. 39.  Employees are not bad performers, just poorly trained. In order to have consistent service, employees must have consistent training on a continual basis. Whats more is that they must be held accountable for their performance on a continual basis, not just at a once a year review time. Lastly, employees need to be rewarded consistently so that they realize their importance in the company. Without them, there would be no business, now would there?  Treating Customers Well: We make it difficult for them to buy and then we make it more difficult for them to bring it back and we wonder why they choose to shop elsewhere? Train the employees to have patience to work within store policy and to do it positively while showing how proud they are of the store and its products.39 | P a g e
  40. 40. Customer Relationship Management (CRM)CRM is a management approach that seeks to create, develop and enhance relationships withcarefully targeted customers to maximize customer value, corporate profitability and shareholdervalue. CRM leverages information technology (IT) to implement relationship-marketingstrategies. Already customers are getting actively involved, either directly or indirectly withproduction processes. They make suggestions, they ask for smaller, brighter, easier-to-useproducts.CRM is not a tool that is specific to any industry type, so there is no one single definition ofCustomer Relationship Management. It is up to the organization to formulate one for itself inorder to achieve the CRM goals that it sets for itself. Companies that have adopted CRM regardevery customer as an individual with specific needs and tailor their services accordingly.Information Technology comes into the picture to help manage Customer relationships in anorganized way.On an average a company has only a 5 to 20 percent probability of making a successful sale to anew prospect but has a 60 to 70 percent probability of selling again to active customers. It wouldbe wiser to invest in encouraging an existing customer to purchase again. Companies thatfollowed up lapsed cases experienced 20 to 40 percent successful sales. Without a doubt40 | P a g e
  41. 41. customer retention is vital to every companys long-term profitability and success and CRM,through target selling and customer loyalty programs, can help to motivate the best customersand to remain loyal as a method of increasing revenues internally.Rising customer expectations have stiffened the competition among companies to improve theircustomer support services. Today‟s customer has access to the latest technological devices thatgive him instant information, allows him to make instant transactions, buy, sell or transfermoney, he has access to it all over his palm top, PDA, mobile phone or desktop. Today‟scustomer is knowledgeable, he knows what he wants and the Internet is a powerful tool in hishands.More than ever, customers today have an important role to play in the product lifecycle.Customers are continually pressing for improved support services in terms of product coverage,business-ease, response-time and price (or at least value-for-money!).” With a wide variety ofservices available at competitive prices and easily accessible at the click of a button, improvedcustomer services are becoming the need of the day. Customers are driving companies to migratefrom being purely product-centric to purely customer-centric, taking care of all customerrequirements even before they are demanded.From current customer trends, it is easy to define the future customer. The volume ofinformation available via the Internet will make the future customer a knowledgeable one. As41 | P a g e
  42. 42. more customers and businesses go online, the Internet will foster a global community thatcommunicates at real-time. Customers will have access to a wider variety of products and pricesto choose from. To stay ahead of competition, companies will have to anticipate customer needseven before a need arises. As more and more women began to drive two wheelers in India, thesmarter manufacturers realized that one factor that might hold a sari-clad woman back, would behaving to kick-start her bike. Along came the self-starter button and presto, a surge of womentwo wheeler drivers! The success of companies will depend on how well they are able to predictcustomer behavior, anticipate requirements and provide for them. The future customer will havea larger stake in the company‟s project plans, his input will have value and his feedback will beconsequential to the development of products or the way a service is delivered. This implies asignificant alteration in the supply chains that we see today.FiigurreF gu e42 | P a g e
  43. 43. The CRM strategy should include:(a) Operational CRM: Automating interaction with the customers and sales force, and(b) Analytical CRM: Sophisticated analysis of the customer data generated by operational CRMand other sources like POS (Point of Sales) transactions, web site transactions, and third-partydata providers.A typical retail organization has a huge customer base and often customers needs are fairlydifferentiated. Without the means to analyze voluminous customer data, CRM Strategy is boundto be a failure. Hence, Analytical CRM forms the core of a retailers customer relationshipstrategy. Marketing and sales functions are the primary beneficiaries of Analytical CRM and theMain touch points from where the insights gained about the customer is absorbed in theOrganization. Analytical CRM uses the key business intelligence tools like data warehousing,data mining, and OLAP to present a unified view of the customer.Following are some of the uses of Analytical CRM In Retailing43 | P a g e
  44. 44. Customer SegmentationCustomer segmentation is a vital ingredient in a retail organizations marketing recipe. It canoffer insights into how different segments respond to shifts in demographics, fashions and trends.For example it can help classify customers in the following segments1) Customers who respond to new promotions2) Customers who respond to new product launch3) Customers who respond to discounts4) Customers who show propensity to purchase specific productsCampaign/ Promotion Effectiveness AnalysisOnce a campaign is launched its effectiveness can be studied across different media and in termsof costs and benefits; this greatly helps in understanding what goes into a successful marketingcampaign.Campaign/ promotion effectiveness analysis can answer questions like:Which media channels have been most successful in the past for various campaigns?Which geographic locations responded well to a particular campaign?44 | P a g e
  45. 45. What were the relative costs and benefits of this campaign?Which customer segments responded to the campaign?Customer Lifetime ValueNot all customers are equally profitable. At the same time customers who are not very profitabletoday may have the potential of being profitable in future. Hence it is absolutely essential toidentify customers with high lifetime value; the idea is to establish long-term relations with thesecustomers. The basic methodology used to calculate customer lifetime value is - deduct the costof servicing a customer from the expected future revenue generated by the customer, add to thisthe net value of new customers referred by this customer, and discount the result for the durationof the relationship. Though this sounds easy, there are a number of subjective variables likeoverall duration of the customers relation with the retailer, gap between intermediate cash flows,and discount rate. We suggest data mining tools should be used to develop customized modelsfor calculating customer lifetime value.Customer Loyalty AnalysisIt is more economical to retain an existing customer than to acquire a new one. To developeffective customer retention programs it is vital to analyze the reasons for customer attrition.45 | P a g e
  46. 46. Business Intelligence helps in understanding customer attrition with respect to various factorsinfluencing a customer and at times one can drill down to individual transactions, which mighthave resulted in the change of loyalty.Cross SellingRetailers use the vast amount of customer information available with them to cross sell otherproducts at the time of purchase. This effort is largely based on the tastes of a particularcustomer, which can be analyzed using BI tools based on previous purchases. Retailers can alsoup sell - sell more profitable products - to the customer at the time of contact.Product PricingPricing is one of the most crucial marketing decisions taken by retailers. Often an increase inprice of a product can result in lower sales and customer adoption of replacement products.Using data warehousing and data mining, retailers can develop sophisticated price models fordifferent products, which can establish price - sales relationships for the product and howchanges in prices affect the sales of other products.Target MarketingRetailers can optimize the overall marketing and promotion effort by targeting campaigns tospecific customers or groups of customers. Target marketing can be based on a very simpleanalysis of the buying habits of the customer or the customer group; but increasingly data mining46 | P a g e
  47. 47. tools are being used to define specific customer segments that are likely to respond to particulartypes of campaigns.FiigureF gure47 | P a g e
  48. 48. 48 | P a g e
  49. 49. Designing a customer loyalty programCustomers expectations are increasing. They want: service, products that meet their Needs,value for money and added benefits. In response to this, retailers are stepping up. Theirpromotional activity to the extent that sales and special offers have become Everyday affairs,rather than end of season stock clearances. As a result margins are Being eroded to dangerouslylow levels. Some retailers have introduced card-based collector schemes that give electronicpoints According to the customers spend, which are subsequently exchanged for gifts orDiscounts. The more strategically minded retailers are introducing systems that monitorCustomer behavior in order to respond better to their increasing demands. Both Approaches arecommonly known as customer loyalty programmes, however, the latter Approach is the only onethat is sustainable and really merits being considered as such.The basic electronic points schemes are just another way of delivering a promotion and rely upongiving a higher value incentive to differentiate from the competitors. The objective should be tomaintain the customers loyalty, not by bribery, but by offering a Better service, thus preservingmargins and profitability. This section examines the elements that need to be considered whendesigning a customer loyalty programme. It defines the strategic objectives and examines whatcomponents of the scheme are needed to achieve the benefits, including mechanics and customerrewards. Finally, it reviews some data analysis techniques that can be used to refine the schemein the light of experience gained from running targeted promotions.49 | P a g e
  50. 50. What is Customer Loyalty?Customer loyalty involves building a long-term relationship between the supplier and theindividual customer in order to improve profitability. To achieve this the supplier needs tounderstand the customers spending habits and know what products they currently buy (and dontbuy) so that any communication can be meaningful. Customers respond better to someone whounderstands their special needs - a personalized approach offering products that are reallyrelevant is more likely to produce the required result.Ideally, all customers need to be approached with something that motivates them to spend moreif maximum growth is to be achieved, which is not possible from a single, all encompassingcampaign. If traffic through the store needs building or a supplier has a new product, the focuswill be on ways of attracting new customers. In all cases there is an essential need to know andunderstand the spending habits of existing customers and what entices new shoppers into thestore. A successful scheme is one that engenders sustainable, long-term loyalty at an affordablecost. This cannot be achieved with bribery alone, the customer needs to feel wanted andspecial. It should be embraced with a comprehensive customer care programme.50 | P a g e
  51. 51. Objectives and BenefitsWhen designing a customer loyalty programme it is, first, important to agree the strategicobjectives. These will differ from scheme to scheme. To increase profit the aim will be to changecustomer behavior and, in particular, they‟re buying habits. In a declining market customerretention may be the only objective. A number of key objectives and the benefits to expect arediscussed below: increase the turnover and profit customer retention establish long term relationships improve product awareness develop advocates increase frequency cross sell departments reduce mark-downs improve the effectiveness of direct marketingIncrease Turnover and ProfitIn any business, other than a declining market, the key aim of a customer loyalty scheme must beto increase profitability - there is no point in rewarding customers for their loyalty and gettingnothing additional in return. To be worthwhile increased loyalty must result in increased spend(i.e. turnover), whilst retaining reasonable margins, thus improving profits.51 | P a g e
  52. 52. Recent tests have shown that a spend related reward scheme can increase average spend by 30%,however, a realistic target would be 10 to 20% on a long term basis.52 | P a g e
  53. 53. Customer RetentionClearly, one approach to retaining existing customers is to offer a suitable reward scheme.However, giving away something to those customers who would have made the purchasesanyway is not cost effective. Instead of expensive "give-aways" the customer needs to be givenspecial privileges as a member of an elite and prestigious club. By raising the self-esteem of thecustomer and communicating on a personal level with worthwhile information, and makingoffers which are relevant, the perceived value can be made to appear high but at a relatively lowcost.Establish Long Term RelationshipsBy definition, this should be one of the aims of all customer loyalty schemes. It is widelyAccepted that it is a lot easier (and more cost effective) to sell to the existing customer base.Also, some organizations establish a dialogue with their customers in order to obtain regularfeedback on its products and services rather than conducting ad-hoc customer Studys. It is vitallyimportant to know the customers view of new and existing products and to gauge their reactionto targeted promotions.53 | P a g e
  54. 54. Improve Product AwarenessA loyalty scheme that restricts redemption to November and December will increase thefrequency during the key months when Diwali products are on display, therefore increasingawareness. Also, the availability of a new product can be communicated to those customerslikely to be interested with the aid of a suitable customer marketing database.Develop AdvocatesPersonal recommendation is the best way of attracting new customers - a genuinely loyalCustomer will become an advocate for the organization. Two recent trials demonstrate thepulling power of a loyalty scheme. With no advertising other than point of sale within the storesdramatic increases in club membership were seen. In both cases a loyalty scheme was devisedfor members of a long established club.Increasing FrequencyOut of town stores normally have a higher average spend than high street stores becauseCustomers want to make it worthwhile to travel the distance. Consider the gain to be made withone additional visit per customer where the average spends is RS 300 and the annual frequency is4. This situation is, again, often related to the customer segment and suggests targeted offerswould be beneficial. An appropriate reward scheme might be visit related for, example, spendover RS 300 on 4 occasions within a month to earn a reward, or a free instant win prize on eachvisit.54 | P a g e
  55. 55. Cross Selling DepartmentsHigh street chemist chains stock a wide variety of products and often enjoy high frequency butvery low averages spend. This is partly as a result of an association certain customer groups havewith a particular product, for example, ladies may buy cosmetics on a regular basis but nothingelse. If this situation can be identified there is an opportunity for cross-selling departments.Reduce Mark-DownsThese days mark-downs have increasingly become a standard way of selling rather than aMechanism for clearing unwanted or ends of season stock. This has resulted in eroded marginsand reduced profits. A loyalty scheme will reduce the need to employ these tactics. Where stockneeds to be cleared an alternative to price reductions is to make special offers to loyaltycustomers. This has the added benefit of increasing the value of the loyalty scheme to existingmembers and providing a powerful reason for new customers to join.Effectiveness of Direct Marketing Improving theMails are costly. Indiscriminate mass mails are wasteful and even more costly. Whereas there is,perhaps, little scope to reduce the cost per person of direct marketing, hit rates can be improveddramatically by targeting those customer groups most likely to respond to the product(s) onoffer. This means a bigger return from the campaign or an equivalent return from fewer mailed55 | P a g e
  56. 56. customers. To achieve this we need to understand what products are likely to appeal to particularcustomers groups.Elements of a Successful SchemeSince, by definition, a scheme needs to be long term and cost effective, the customers interestneeds to be maintained. To achieve this it is important to: Make the scheme understandable and easy to use Offer a reward with wide appeal and a high perceived value Communicate with the customer in a way which is meaningful to them Establish a way of "locking-in" the customerThe MechanicThere is no universal reward mechanic that will work for everyone. It has to be designed takinginto account the: Strategic objectives Retail operation Frequency of purchase Value of purchase Average spend Customer types and groups56 | P a g e
  57. 57. Whatever is appropriate it is essential to communicate to the customer what he/she has Earned.In a reasonably high frequency outlet this will normally mean telling the customer his/hercumulative "points" balance at the point of sale at every purchase. Statement based schemeswhere the customer is informed at three monthly intervals are only appropriate for low frequencyoperations. Constantly reminding the customers of the benefits that are accruing will maintaininterest and motivate them to reach their target even quicker. Depending upon the objectives the"points" can be related to one of the following:SpendTo increase average spends. There may be a minimum purchase necessary and increasing Levelof points or discounts earned for an increasing spend. Particularly useful for low value products.For example: 1 point for every RS 50 done by most of the retailers in India.FrequencyAppropriate to build traffic through the store, where the propensity to spend is already high forvisitors. Also, useful to make customers aware of new products on display in the store at the startof a new season. For example: spend RS 300 on 4 separate visits in a month and receive 100bonus points.PeriodSpecial offers to attract customers on light days. For example: double points on Mondays.57 | P a g e
  58. 58. Product/DepartmentProvides the means by which suppliers can participate in the scheme by funding special offerpoints.The RewardTo motivate the customer to participate the choice of reward is vitally important. Of course, it ishighly dependent upon the type of customer, but in all cases it should be: Attractive and desirable to the target audience. Achievable in a reasonable timescale whilst bearing in mind that the customer should be made to work for his/her reward but not feel that it is only appropriate for the very high spenders. Increasing value rewards for increasing spend enables the impatient to receive some reward quickly to get them "hooked". A range of rewards to give broad appeal to a wide range of customers. A high perceived value to make it a genuine reward for loyalty. Low actual costs. Can be achieved by offering shelf products, which have an in-built Margin. A cash-in dates so that the liability can be calculated and cleared down. Interestingly, a Cut- off date does increase spend as customers strive to maximize their points before Closure.58 | P a g e
  59. 59. Types of RewardThese fall into four categories:Own GoodsFor example: gift vouchers, discounts or services. Generally low cost because thereward has a built-in margin. Applicable when the product is desirable and is notreplacing genuine purchases that would have been made anyway. Perhaps surplusproduct can be used (as long as it is still desirable). Not appropriate if there is nodirect benefit to the customer or his/her family such as free petrol to a company cardriver.CurrenciesFor example: Most of the airlines use in India Free Air Miles, which can be usedfor discount travel, holidays, car hire, hotels etc. Provides a good mechanism forbroadening the appeal and providing a range of rewards easily.59 | P a g e
  60. 60. Gift CataloguesGifts as in terms if Vouchers given by Retailers to their customers.AffinitiesIncreasingly popular for schools, charities etc. The reward has to be appealing tothe charity concerned. Though hardly any retailers use it in India.Funding the RewardIt is important to understand from the outset how the reward is to be funded and to calculate thelikely cost (and the benefit). Again, the strategy will depend on the individual retailerscircumstances and objectives.Examples are as follows: Increased spend Increased frequency (and hence spend) Reduce mark-downs Increase margins Offer spare capacity (e.g .hotel rooms, travel seats etc) Increased privileges (at little or no cost)60 | P a g e
  61. 61. The aim should also be to retain customers loyalty through the relationship marketing by makingfull use of the database. The reward can be reduced over time. Some retailers look to theirsuppliers to fund their promotions by offering rewards based entirely on individual productpurchases. However, it is important not to confuse supplier led brand switching schemes, whichhave no place in a customer loyalty scheme. The purpose is to increase spend not switch it fromone product to another.Capturing Customer DataIn the right hands a marketing database presents an exciting opportunity to increase the value ofexisting customers as well as providing a means of attracting new ones. However, as manyretailers, suppliers and service providers have already discovered, it can be an embarrassinglyexpensive millstone if not properly thought through. Storing data is expensive. Before embarkingupon the building of a marketing database it is important to have clear objectives.Categories of Data to CaptureIt has already been pointed out that storing data is expensive so it is important to capture onlythat which is really needed. The category of data detailed below is a comprehensive list of whatcan be collected.Customer DetailsThis is fairly static data including:Name and address61 | P a g e
  62. 62. Family and agesJob and income levelResidence (own, rent)Credit cards heldInterests?Special needs etc. etc.Not all customers will give all this level of information on first asking. It is, however, possible todeduce certain details later. For example: if payment method is captured on each purchase wecan soon learn what credit cards are held, if toys are purchased we can gain details of thechildren from the guarantee registration card, etc.FrequencyHow often does this person visit the store? On what days of the week? Hour of the day? Is thefrequency increasing or decreasing? Do certain types of in-store promotions or mailingcampaigns effect the frequency?RegencyWhen did the customer last visit. Is this potentially a lost customer?62 | P a g e
  63. 63. SpendIs this increasing as required? Does it vary by customer profile? Do particular types ofpromotions affect it?Sites VisitedIs the customer loyal to a particular store? What distances are traveled, on what days? Will thiscustomer travel give the right incentive?Products PurchasedOffers what special offers are taken-up?Departments what is the level of spend by department? How does this vary by season and promotion?Lines what is the typical shopping basket of this individual?Capturing the data can be relatively straightforward but it is unlikely that anyone will really needto maintain a history of each and every product item purchased by each and every customer. Fora large supermarket chain this would amount to approximately 500 gigabytes per annum63 | P a g e
  64. 64. Monitoring, Measuring and refining the SchemeAs has been stated earlier in this paper it is important to define the objectives at the start anddesign the scheme and system around achieving those objectives. The dichotomy is that in orderto design an effective scheme there needs to be a good understanding of the customer and one ofthe purposes of the system is to capture data to achieve this.Therefore, designing a successful scheme has to be an iterative process:1. Design basic scheme2. Implement system3. Monitor customer behavior4. Measure response and performance5. Refine the design in the light of experience6. Return to 2. AboveIt is not the purpose of this paper to examine ways of analyzing customer data, however, twostatistical techniques (regression and cluster analysis) are mentioned as examples for targetingand segmentation. Considerable advances are being made in this area with the emergence of"intelligent" techniques, which are self-learning (e.g. neural networks).64 | P a g e
  65. 65. TargetingTargeting customers is a way of improving the response rate to promotions. This involvesMeasuring the size and characteristics of the target audience and the response and behavior tovarious offers, and then using the data to improve the offer.A common technique for this is regression analysis, which is based on past behavior: Identify customer purchasing characteristics or attributes Score individuals according to the characteristics Target the high scoring individuals in future promotionsCustomer characteristics are purchase related (e.g. frequency, average spends,Departments/products purchased, stores visited etc.) but can also be linked to lifestyle data.The high scoring individuals (i.e. those with common characteristics) are expected to yield ahigher response rate.65 | P a g e
  66. 66. SegmentationSegmentation involves defining customer groups and devising separate marketing approaches toeach group. Customers within a segment are as similar as possible and customers in differentsegments are most dissimilar. It is expected that customers in the same group will react topromotions in a similar way.Cluster analysis is a statistical technique for segmentation. This again relies upon identifying likecharacteristics, which can be lifestyle based but preferably uses purchasing data: Identify customer purchasing characteristics or attributes Divide into large number of segments Reduce segments to a manageable number by combining segments with closeCharacteristics (nearest neighbor method) - Market to customers in same segmentThis technique enables appropriate and relevant offers to be made to customer groups, whichbuilds stronger relationships since the marketing is more meaningful to the individual customers.Whereas there is every likelihood that in five years time most retailers will have a customerloyalty scheme of some form, it is important to carefully analyze the objectives and the benefitsthat are expected. And then to constantly review the benefits that is actually being achieved andrefines the programme accordingly.In summary, you should only embark on such a system if one or more of the following is true:66 | P a g e
  67. 67. You can benefit from knowing your customers and they‟re purchasing behaviorYou have an attractive proposition that is sustainable over the long termThere is a competitor threat emerging that can be defended by locking in your customersInto long term loyalty programmeYour competitors are implementing a scheme (?)It will retain your share of a declining market.The cost/benefit analysis shows that profitability can be increased as a result67 | P a g e
  68. 68. CUSTOMER LOYALTY PROGRAMS OF RETAILING IN INDIAA loyalty programme is an advanced stage of a well-managed CRM process and must begraduated to and not jumped into. Launching a loyalty programme depends on the Life State of amature CRM system, data maturity and organizational preparedness. It needs some amount ofinvestments in technology, specialized software, statistical tools and logistics. Earned rewardsprogram by most of the retailers in the form of vouchers in India are actual cash payoffs, differedor otherwise and need efficient management. The best loyalty programmes are driven out ofcustomer analytics that work on mature data. When customers opt in to a permission-basedloyalty programme, they are more milling to share information as well, enabling retailers tocreate a dialogue with customers.Clearly, there is no one, right way to market through any one channel,but there is a right way tomarket to customers across severalchannels, and a loyalty marketing programme can help. Asuccessful programme assumes that all channels are included in the customer relationship thatmeasurable objectives have been established, and that promises are kept. With this foundation inplace, a programme can boast the following characteristics:68 | P a g e
  69. 69. 1. Visibility: A loyalty programme must be highly visible regard less of the channel. A Web site can show special offers for programme members, a catalogue can feature the programme prominently and shoppers in the store should be asked if theyd like to join. Cross-promotional materials should be present and easily obtainable.2. Simplicity: To succeed, a loyalty programme must be easy to use in all channels. Minimize the fine print; the more the customers have to figure out, the less they like the programme.3. Value: The balance of reward and recognition must establish value in the customers mind and motivate incremental purchases. Programme rewards should be credited regardless of where the customer prefers to shop. And while the price of merchandise should be consistent across all channels, dont be afraid to offer incentives to encourage customers to try a new shopping experience.4. Trust: Keep the promises made by the loyalty programme. If the promise is for a personalized, highly valued service, dont bombard program participants with meaningless offers that obviously are available to everyone. Recent studies indicate that customers who shop more than one of a retailers channels - perhaps looking online and buying in the store or reading the catalogue/leaflet and buying online-spend more money with that retailer than single-channel shoppers.69 | P a g e
  70. 70. The best way to coordinate marketing objectives across channels is to build a knowledge baseof customer behaviors and preferences.Retailers cannot afford to let legacy systems interferewith building this knowledge base. A well-conceived and executed loyalty programmecan be the key to invisible shoppers into hand-raising volunteers and profitable customersThe organized retailers in India have started with their loyalty programmes for instancePantaloon: Green Points, Shoppers Stop: First Citizen, Ebony: Elite club, Lifestyles: The InnerCircle and Westside: Club West these loyalty programmes are in built up with the CRMstrategies for each company. Though every loyalty club has its pros and cons to the program butthe main reason of worry for the organized retailers in India is the amount of average Walk Inspurchasing from the stores. The people visiting the Malls or specific store locations unlike, Wal-Mart in US these companies haven‟t yet been able to fulfill the need of the customers towardsthe loyalty club.As part of my dissertation research shows that most of the loyalty clubs in India are similar intheir purchase schemes and privileges. I would further support in other sections of thedissertation.70 | P a g e
  71. 71. RECOMMENDATIONS71 | P a g e
  72. 72. 11. RECOMMENDATIONS1. GCLP promotions must be given more importance.2. Better visibility and better gifts for such activities.3. Inside store promotion methods should be more effective so that information about offers notonly reach to the consumer but also stick to them.4. Quality of the product must be improve so that the customers get the full worth what they areinvested.5. Provide good services to the consumer like fast billing, better assistance and quality product inthe store so they preferred pantaloons more and retention of customer is increases rapidly.6. Replenishment of the stock must be done in proper time.7. PANTALOONS must watch out for more standard promotional activities as major playerentering in the market are internationally acclaimed brands.8. They are ahead than other competitors in terms of presence and experience, if there are newstrategies coming up they must adapt it and apply them in those stores where they have nocompletion to increase customer loyalty.72 | P a g e
  73. 73. CONCLUSION73 | P a g e
  74. 74. CONCLUSION Pantaloons Retail India Ltd has strong goodwill in Retail Industry in respect of quality. Customers mostly prefer those outlets, which provide them better services, price& product. Customers want improvement in Pantaloons in respect of services, variety, and brands. The customers generally prefer cash discount. There after they want more variety and quality in the store. Customers go to other places because of Ambience, product, price, so Pantaloons should also do some work on these. Customers are generally satisfied with the services provided by the Pantaloons. Customers are satisfied with the price and schemes running in the store. There is misperception about Pantaloons store that the store has generally high price products that is why middle class people do not easily attract towards Pantaloons74 | P a g e
  75. 75. BIBLIOGRAPHY75 | P a g e
  77. 77. PAGE NUMBER 41-4677 | P a g e