Retail Communication


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Retail Communication

  1. 1. A Project Report On Communicating with Customers. For Final Assessment of 2nd Semester (Buying and Merchandising)Submitted in partial fulfillment of the requirement for the award of Post Graduate Program in Retail and Marketing Submitted To: Ms.Meenakshi Sehgal Submitted By: Ms. Sonali
  2. 2. INDEX S.No. Topic Page No. 1 Introduction 1 2 Communicating with 2 Consumers 3 Levi’s 5 4 Research Methodology 8 5 Questionnaire 10 6 Data Analysis & 12 Interpretation 7 Conclusions 22 8 Recommendations 23 9 Bibliography 24 INTRODUCTIONCustomer communication is one of the most important issues for every organization. Because ofthe fact, that customers are everything for the success of any organization and its business. Nomatter what kind of service or products an organization is offering, they look for customersatisfaction, which is ultimate goal of every organization. 2
  3. 3. Dissatisfied customers typically tell between 8 to 16 other people when they have had anunsatisfactory experience and if a customer feels you are responsive to a problem, they will dobusiness with you again in 82% to 95% of the cases.Here comes the need to understand howimportant the communication plays role in making new customers into regular customers andretaining existing ones.To study on the topic ‘Communicating with Customers’ will provides us the scope to understandthe importance of communication with the customers in a store. To achieve the goal of customersatisfaction and to fulfill all their requirements every organization needs a properly defined way ofcommunication with their customers. It is of utmost importance that our customer should besatisfied from our services or product , to bring satisfaction to customer it becomes important totake care of his need and requirements , things are to be managed from a customer`s view point andfor that communication with customer becomes the need.To study further on the topic ‘Communicating with Customers’, I have taken Levi’s brand. Levi’sis one of the famous brands in denim jeans and casual wears. It becomes important for a salesperson to communicate effectively with the customers. This includes making their shoppingexperience enjoyable through polite, friendly, staff correctly identifying customer’s needs, throughcommunicating information about products and services. Customers will only enter a business ifyou make them feel welcome. Your business needs to communicate a friendly and welcomingenvironment COMMUNICATING WITH CUSTOMERSCustomer relations start and end with effective communication. There is no getting around the factthat every expression spoken or written by a company is the cornerstone of that company’s successIn Business, the purpose of the communication process is to provide effective service to customers.This includes making their shopping experience enjoyable through polite, friendly, staff correctly 3
  4. 4. identifying customer’s needs, through communicating information about products and services.Customers will only enter a business if you make them feel welcome.When we communicate in person, 10 percent of the impact is in the words we use, 30 percent is inour voice inflection, and a whopping 60 percent is in our body language ( takes one bad experience by a customer, just with a single product, to hurt your businessreputation. This customer may share her experience with countless others. Customers who mightconsider buying from your company might decide not to because of what they hear from unhappycustomers. Build additional means of communicating with customers, including online, email andmobile communications, so that customers can get in touch with your company in convenient ways.(John Donnellan, Merchandise Buying and Management, 1999)Ask any successful business proprietor what the key to success is, and he will tell you that it isindubitably communication. Communication is critical to understanding problems, presentingsolutions and informing the public about your goods and services. It becomes increasinglyimportant when dealing with customers. Fortunately, there is a multitude of ways to improvecommunication with the people keeping your business afloat.Listen • One of the best ways to improve communication with the customer is by listening to her. It seems simple enough, but active listening requires a good deal of effort. You have to pay attention to exactly what the customer is saying, and participate in the conversation. Ask questions to clarify parts of his statements that may be confusing, and rephrase comments to make sure you fully understand what is being said. Better active listening leads to greater comprehension of needs and concerns, which helps your companys customer service, and ultimately, its bottom line.Present Accurate Information • While it may seem most important to be able to answer a customers concerns or questions immediately, it is more important to be sure you are presenting them with accurate information. An uninformed response will only lead to more confusion and frustration for 4
  5. 5. the customer. Dont be afraid to appeal to a supervisor for guidance or take a moment to look up the information yourself. While it may delay customer satisfaction, it will increase the level of satisfaction far more if your information is specific and correct..Eleven Points to consider when communicating with Customers ( and accurate - speak at a rate your customer can understand you. Have product knowledge inwhat you sell. Give correct information.Open, not judging - have an open posture, do not judge the way your customer is dressed orpresents himself or herself (you do not know how much they have in their wallet).Mind customer’s feelings - be professional at all times, be aware of the words you use.Mention their name - use the customer’s name as this makes them feel special and valued.Unlearn your own bad habits - be aware of your own behaviour, always be self-assessing.Non-verbal messages matter - makes sure you are displaying positive body language, smile, makeeye contact, good posture.Interest in people - take a genuine interest in the customers’ needs. This will build rapport and trust.Calm if they are angry- stay calm and professional if the customer is upset. Do not take itpersonally. Find out the facts and resolve the problem. Thank the customer for bringing theproblem to your attention.Ask questions, get feedback - ask your customer open questions to find out what they are lookingfor. Ask reflective questions to confirm their needs and that you are showing them the correctproduct.Tell about products and services - give your customers information on new products and servicesyou may be offering. 5
  6. 6. Enjoy working with all types of customers - if you do not genuinely enjoy dealing with customersget out of the service industry and let someone who does.When we communicate, the words we choose our voice tone and body language. Then determinehow best to add voice inflections and body language that support your message. Practice until youare comfortable with your entire presentation. Train your staff the same way. Go beyond the wordsthey say and help them understand how tone of voice and body language affects how they comeacross. Given that your voice is three times are important partsof communication.( Economic Times, 11 March’2010)Body language is even more important. Our enthusiasm, orlack of, will be obvious. When you see a sales presentation where the person is clearly excited andbelieves in the product, you are more likely to buy than if they are simply going through themotions.Communicating effectively with potential customers is essential to creating awareness, desire andinterest for your products and services. LEVI’SLevi Strauss & Co. (LS&CO) is a privately held clothing company known worldwide for itsLevis brand of denim jeans. It was founded in 1869 when Levi Strauss came from Buttenheim,Franconia, (Kingdom of Bavaria) to San Francisco, California to open a west coast branch of his 6
  7. 7. brothers New York dry goods business. Although the company began producing denim overalls inthe 1870s, modern jeans were not produced until the 1920s. The company briefly experimented (inthe 1970s) with employee ownership and a public stock listing, but remains owned and controlledby descendants and relatives of Levi Strauss four nephews.OrganizationLevi Strauss & Co. is a worldwide corporation organized into three geographic divisions: LeviStrauss Americas (LSA), based in the San Francisco headquarters; Levi Strauss Europe, MiddleEast and Africa (LSEMA), based in Brussels; and Asia Pacific Division (APD), based inSingapore. The company employs a staff of approximately 10,500 people worldwide, and owns anddevelops a few brands. Levis, the main brand, was founded in 1873 in San Francisco, specializingin riveted denim jeans and different lines of casual and street fashion.From the early 1960s through the mid 1970s, Levi Strauss experienced explosive growth in itsbusiness as the more casual look of the 1960s and 1970s ushered in the "blue jeans craze" andserved as a catalyst for the brand. Levis, under the leadership of Jay Walter Haas Sr., Peter HaasSr., Paul Glasco and George P. Simpkins Sr., expanded the firms clothing line by adding newfashions and models, including stone-washed jeans through the acquisition of Great WesternGarment Co. (GWG), a Canadian clothing manufacturer. GWG was responsible for theintroduction of the modern "stone washing" technique, still in use by Levi Strauss.Mr. Simpkins is credited with the companys record paced expansion of its manufacturing capacityfrom fewer than 16 plants to more than 63 plants in the United States from 1964 through 1974.Perhaps most impressive, however, was Levis expansion under Simpkins was accomplishedwithout a single unionized employee as a result of Levis and the Haas families strong stance onhuman rights and Simpkins use of "pay for performance" manufacturing at the sewing machineoperator level up. As a result, Levis plants were perhaps the highest performing, best organizedand cleanest textile facilities of their time. Levis even piped in massive amounts of air conditioningfor the comfort of Levis workers into its press plants, which were known in the industry to benotoriously hot. 7
  8. 8. 2004 saw a sharp decline of GWG in the face of global outsourcing, so the company was closedand the Edmonton manufacturing plant shut down. The Dockers brand, launched in 1986[4] which issold largely through department store chains, helped the company grow through the mid-1990s, asdenim sales began to fade. Dockers were introduced into Europe in 1993. Levi Strauss attempted tosell the Dockers division in 2004 to relieve part of the companys $2 billion outstanding debt.Launched in 2003, Levi Strauss Signature features jeanswear and casualwear. In November 2007,Levis released a mobile phone in co-operation with ModeLabs. Many of the phones cosmeticattributes are customizable at the point of purchase.HistoryJacob Davis was a tailor who frequently purchased bolts of cloth made from hemp from LeviStrauss & Co.s wholesale house. After one of Davis customers kept purchasing cloth to reinforcetorn pants, he had an idea to use copper rivets to reinforce the points of strain, such as on the pocketcorners and at the base of the button fly. Davis did not have the required money to purchase apatent, so he wrote to Strauss suggesting that they go into business together. After Levi acceptedJacobs offer, on May 20, 1873, the two men received U.S. Patent 139,121 from the United StatesPatent and Trademark Office. The patented rivet was later incorporated into the companys jeandesign and advertisements. Contrary to an advertising campaign suggesting that Levi Strauss soldhis first jeans to gold miners during the California Gold Rush (which peaked in 1849), themanufacturing of denim overalls only began in the 1870s.Levi Strauss started the business at the 90 Sacramento Street address in San Francisco. He nextmoved the location to 62 Sacramento Street then 63 & 65 Sacramento Street. By changing thelocation of the store the company began to become more successful.(’s in India 8
  9. 9. Levis in India has targeted the huge young market. Levis came to India in 1995. Currently it hasmore than 250 stores in India. Initially the brand used film celebrities like Shah Rukh Khan andBipasha Basu.Now the brand ambassadors of Levi’s jeans are Priyanka Chopra and Akshay Kumar. There is noother iconic brands which can match the strength of Levis.Levi’s has gain maximum popularity among young crowd by providing them casual jeans with theclass and style. No other brand in jeans has beat Levi’s till now. RESEARCH METHODOLOGY 9
  10. 10. This chapter describes the research methodology adopted to achieve the objectives of the study. Itincludes the scope of the study, research design, collection of data, analysis of data and limitationsof study.Scope of the studyThe scope of the study is to know importance of communicating with the customers in a store.Research DesignThe research design constitutes the blueprint for the collection, measurement and analysis of data.It is the strategy for a study and the plan by which the strategy is to be carried out.The research design of the project is Descriptive Research.Descriptive Research: Descriptive research is used to obtain information concerning the status ofthe phenomena to describe “what exists” with respect to variables in a given situation.Data CollectionPrimary Data: Primary data is that data which is collected for the first time. It is original in nature.For the purpose of collection of primary data, a well structured questionnaire was framed whichwas filled by the respondents. The questionnaire comprises of close ended questions.Secondary Data: Secondary data is the data which is already collected by someone. They aresecondary in nature and are in shape of finished product.Sample SizeSample size is the size of sample drawn from the population which is true representative of theresearch.The number of respondents included in the study was 20 for convenience in evaluating andanalyzing the data and because the time constraints.Limitations of the study 10
  11. 11. 1. The research was conducted in limited region.2. The internet information could be unreliable.3. The respondents were limited so cannot be treated as a whole population.4. Time was the major limitation as it may have affected the inferences drawn in the study. QUESTIONNAIRE 11
  12. 12. COMMUNICATING WITH CUSTOMERSName:___________________ Age:_____Q1. Are you comfortable in telling your name to the sales person? a) Yes b) NoQ2. Is it fine with you when sales person calls you by your name? a) Yes b) NoQ3. Does it feel good when sales person greets you? a) Yes b) No c) Can’t sayQ4. Does the seller should have enough information about the all the products available in thestore? (a) Yes (b) Not necessaryQ5. Does interest shown by the seller matters while showing the product to the customers? (a) Yes (b) No (c) Can’t Say 12
  13. 13. Q6. Rank the following.(a) Interest(b) Product Information(c) Behavior(d) Body LanguageQ7. Does the friendly nature of a retailer appeals you? (a)Yes (b) Not ReallyQ8. Do you think body language of a seller speaks a lot about him? a) Yes b) No c) Can’t sayQ9. A seller should sound enough convincing to sell the project? a) Yes b) NoQ10. Do you think it is a seller that builds or ruins the image of brand by his way ofcommunicating with the customers? a) Yes b) No c) Can’t say --------****-------Thank You--------****------- 13
  14. 14. DATA ANALYSIS AND INTERPRETATIONResult of the studyQ1. Are you comfortable in telling your name to the sales person? 35% Yes No 65%INTERPRETATIONFrom the above figure, 65% of respondents says ‘yes’ they are comfortable in telling their names tothe sales person whereas 35% of respondents don’t want to tell their names to the salesperson. 14
  15. 15. Q2. Is it fine with you when sales person calls you by your name? 45% 55% Yes NoINTERPRETATIONFrom the above figure, majority of respondents don’t prefer that the sales person is calling them bytheir names. 45% of respondents are fine with the sales person calling them by their names as thecustomers will feel like they are familiar with the store. 15
  16. 16. Q3. Does it feel good when sales person greets you? 20% Yes No 25% 55% Cant sayINTERPRETATIONFrom the above figure, 55% of respondents feel good when the sales person greets them, for 25%of respondent’s greeting them doesn’t makes any difference and only 20% of respondents can’t sayabout greeting of sales person. 16
  17. 17. Q4. Does the seller should have enough information about the all the products available in thestore? 35% Yes Not Necessary 65%INTERPRETATION35% of respondents say the seller should have the knowledge about all the products available in thestore and 65% does not find it necessary that the seller should have information for all the products. 17
  18. 18. Q5. Does interest shown by the seller matters while showing the product to the customers? 20% Yes No 10% Cant say 70%INTERPRETATIONFrom the above figure, 70%of respondents says ‘yes’ the interest shown by the seller matters a lotwhile showing the products.20% of respondents says interest has nothing to do with the seller’sinterest and 10% of respondents can’t about the interest of a seller while showing the product. 18
  19. 19. Q6. Rank the following. 21% 30% Interest Product Information 23% Body Lanuage Behaviour 26%INTERPRETATIONFrom above figure, 30% of respondents considered ‘Interest’ as an important factor while selling aproduct. 26% of respondents prefer ‘Product Information’ to be an important factor followed by‘Body Language’ and ‘Behavior’ by 23% and 21% respectively. 19
  20. 20. Q7. Does the friendly nature of a retailer appeals you? 20% Yes Not Really 80%INTERPRETATIONIn the above figure, friendly nature of a retailer matters for 80% of respondents and 20% saysfriendly nature of retailer does not really appeals to them because they think being friendly of aretailer/sales person is fake and they are just interested in their money. 20
  21. 21. Q8. Do you think the body language of a seller speaks a lot about him? 15% 10% Yes No 75% Cant SayINTERPRETATIONFrom above figure, 75% of respondents says ‘yes’ the body language speaks a lot about the seller.15% says ‘no’ and 10% can’t say about the body language of a seller while selling the product tothem. 21
  22. 22. Q9. A seller should sound enough convincing to sell the product? 20% Yes No 80%INTERPRETATION80% of respondents says ‘yes’ the seller should sound convincing to them to sell the product. 20%says ‘no’ it is not necessary that the seller should sound convincing while selling a product to them. 22
  23. 23. Q10. Do you think it is a seller that builds or ruins the image of brand by his way ofcommunicating with the customers? 20% 10% Yes No 70% Cant SayINTERPRETATION70% of respondents strongly believe that it is the seller who builds or ruins the brand image,, 20%says no, and 10% can’t say about whether the brand image also depends on how the sales personcommunicate with the customers. 23
  24. 24. CONCLUSION• 45% of respondents are fine with the sales person calling them by their names as the customers will feel like they are familiar with the store.• Majority of respondents feel good when the sales person greet them and for some of the respondents greeting doesn’t make any difference.• 35% does find it necessary that the seller should have information for all the products.• Majority of respondents agree that the interest shown by the seller matters a lot while showing the products.• 80% of respondents say the seller should sound convincing to them to sell the product.• Majority of respondents agree with the fact that brand image also depends on how the sales person communicate with the customers. 24
  25. 25. RECOMMENDATIONS• Levi’s stores can work on their friendly nature with the customers as this will build rapport and trust.• Customers should be greet genuinely to make them feel special and valued as it is easy to retain existing customers than to make new ones• A sales person/seller should have information of all the products because customers can ask for any product.• A sales person should stay calm and professional with the customers even if they are angry or upset.• Information should be given on new products which Levi’s is offering, customers might get interested and purchase.• A sales person should be displaying positive body language, smile, make eye contact, good posture.• Sales person should sound convincing to the customers to generate interest and desire among them to purchase the product. 25
  26. 26. BIBLIOGRAPHYwww.ezinearticles.comJohn Donnellan, merchandise buying and management, %)Economic times, 11 March’ 26
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