project raghaven

8/6/2019 Project Raghaven

1/28

At,

Pantaloons Retail,

Virugambakkam, Chennai

STUDY ON LOYALTY PROGRAMME

ADOPTED BY APPAREL RETAILERS TO

RETAIN CUSTOMERS

PROJECT GUIDE: K.SRINIVASANPRESENTED BY: V.RAGHAVENDRAN[MB12b35]


2/28

RETAIL INDUSTRY

y Fastest growing industry in India

y Over 12 million outlets operate in the country

y The retail industry is divided into organised and

unorganised sectors

y Organized sector 3% and unorganized are 97% of

retail


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FUTURE GROUP

Rewrite Rules .Retain Values

y FOUNDER & CEO: kishore biyani king of retail

y HEAD QUARTER:Mumbai, India

y RETAIL FORMATS: Pantaloons, Big Bazaar, Central, Home

Town , ezone and food Bazaar

y The group has a retail presence in 89 cities and 67rural

destinations

.


4/28

COMPANY PROFILEy Name of the company :Pantaloons

FRESH FASHION

Indias Leading Fashion Retailer

y Industry : Retail

y Origin : 1987

y Format : Department Store

y Turnover : 6019 crore (As on 2011)

y

Parent company : Future Groupy Key person : Mr.Kishore Biyani , MD

of Pantaloon Retail (India) Limited and the GroupCEO of Future Group


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NEED FOR STUDY

y To Know about Customer relationship

managementactivities atPantaloons!

y

To understand the need effect of LoyaltyProgrammes in Retaining Customer!

yTo Know Satisfaction level of Customer


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OBJECTIVE

To know the loyalty program adopted by pantaloons and

other apparel retailers.

To know how pantaloons retain customers using loyaltyprogram.


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y RESEARCH DESIGN : Descriptive Research

SAMPLING PROCEDURE: SAMPLING METHOD :Non probability sampling

SAMPLE SIZE : 150

SAMPLING UNITS (Respondent) : Customers Of Pantaloons

y RESEARCH METHOD : Questionnaire Method

y RESEARCH INSTRUMENT USED : Structured questionnaire

y DATA : Primary data & Secondary data

y STATISTICAL TOOL USED: Percentage analysis, cross tables.

RESEARCH METHODOLOGY


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LITERATURE REVIEWy The Influence of Loyalty Programs and

Short-Term Promotions on Customer Retention

by Michael Lewis

Journal of Marketing Research281 Vol. XLI (August2004)

y Why you should retain customers

by Thomas j.healy

American community september 1999


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WHY LOYALTY PROGRAM

LOYALTY IS ONE OF THE GREAT ENGINES OF

BUSINESS SUCCESS

y Improving knowledge ofthe customer

y

To increase

the s

ales of undersold

and/or highly profi

tableproducts/services

y Increasing customer retention and

purchase frequency

y Over 80% of successful businesses have loyalty rewardprograms


10/28

WHY TO RETAIN CUSTOMER

y Customers are becoming harder to please!

y Acquiring new customers cost five times more than the costs

involved in satisfying and retaining current customers.

y On an average the company loses 10% of its customers every

year.

y A 5% reduction in customer defection rate can increase profits

by 25-45 percentage, depending upon the industry.


11/28

PANTALOONS GREEN CARD

Green card is a passportto a whole new world of exclusivebenefits and privileges.

why;

y Instant discount*

y Exclusive shopping days

y Periodic and proper updates via SMS, email and catalogs.

y Special invites - happening events

y E

xtended exch

ange periods

y Complimentary drops for alterations

y Exclusive billing counters and much more


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SPECIAL BENEFITS ONENROLLMENT:

y 200 GiftVoucher

y Fashion Friday 5%

y Outdoor Offer and many more initial benefits

GIFT VOUCHER WORTH RS.

200 ON ENROLMENT

5% DISCOUNT ON

EVERY PURCHASE

AN EXCLUSIVE 7.5% DISCOUNT ONEVERY PURCHASE

A whopping 10% discount on everyurchase

7 STAR MEMBER

3 STAR MEMBER

5 STAR MEMBER

1 STAR MEMBER


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BENIFITS 3 STAR 5 STAR 7 STAR*

INSTANT DISCOUNT 5% 8% 10%

ADD ON CARD 1 2 2

GREEN OFFERS AND PROMOTION YES YES YES

GREEN SERVICE DESK YES YES YES

GREEN EXCHANGE 60 days 60 days 90 days*

COMPLEMENTARY HOME DELIVERY YES YES YES

COMPLEMENTARY HOME DROP NO

YES (EXCEPTSALES

PREVIEW)

*YES(AROUND

THEYEAR)

FREE PARKING YES YES YES

EXCLUSIVE BILLING COUNTER YES YES YES


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STAR PRIVILEGES A BIG WOW 7

EXTRA BENEFITS TO 7 STAR CUSTOMERS:

Free parking space

Free gifts

Stock manager personally deal them

Promotion is communicated first


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SHOPPER STOPPARENT :RAHEJA GROUP

NAME OF THE PROGRAM : First Citizen

The First Citizen has Three Levels : Classic moments

Silver edge*

Golden glow**

BENEFITS:y Extra reward points on preferred brands

y Associate card [cost :125]

y Regular updates*

y Exclusive cash counters*

y Free parking**

y Valet parking*

y Free first update**

y Home delivery of alterations**

y Out store offers*


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GLOBUS

PARENT: RAJAN RAHEJA GROUP

NAME OF THE LOYALTY PROGRAM: Privilege club

Silver card-2000*

Gold card-15,000**

BENEFITS:

y Validity at all Globus Stores

y New product launch privileges

y Birthday Discount

y Exclusive shopping day for end of season sale

y Regular Updates: Sale & In Store Promotion

y Automatic membership renewal

y Special tie-ups*

y Free home delivery of altered merchandise

y Reserved car parking*

y Special counters*

y Complimentary soft drinks*

y Free card in case of loss/damage*


18/28

2%

17%

61%

20%

0%

10%

20%

30%

40%

50%

60%

70%


19/28

34.5%

8.5%

57%

FREQUENCY OF PURCHASE

As per needs

Monthly

Once in 3 months


20/28

6.7%

93.3%

.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

overall Shopping Experience

SATISFACTION LEVEL IN OVERALL

SHOPPING EXPERIANCE


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41.93%

21.62%

12.50%

41.93%

29.72%

6.25%

16.12%

48.64%

81.25%

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00%

0-1YEAR

1-2YEAR

MORE THAN 2YEAR

HIGHLY SATISFIED SATISFIED NEUTRAL

SATISFACTION LEVEL AT SOLVING PROBLEMS

AND QUIRES


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2.7%

5.3%

28.0%

24.7%

39.3%

.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

Highly

Unsatisfied

Unsatisfied Nuetural Satisfied Highly Satisfied

Dicounts - Satisfaction

SATISFACTION LEVEL IN DISCOUNT


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13.95%

39.02%

18.75%16.3%

26.8%

50%

69.8%

34.1%

31.3%

0

10

20

30

40

50

60

70

80

EXCELLENT GOOD AVERAGE

0-1 YEAR

1-2YEAR

MORE THAN 2YEAR

MONTHLY INCOME

CURRENT LOYALTY PROGRAM


24/28

18.80%

14.30%

7.70%

0%

16.70%16.70%

9.50%

15.40%

34.30%

16.70%

29.20%

34.90%

46.20%

35.70%

33.30%

35.40%

41.30%

30.80%30%

33.30%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

50.00%

SHOPPERSTOP LIESTYLE GLOBUS WESTSIDE OTHER

BELOW20000

21000-35000

36000-50000

ABOVE 50000

HOLDING OTHER LOYALTY CARD


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FINDINGS

y 61 % ofthe aged group between 25-40are using the loyaltycard for more than 2 years

y Satisfaction level in shopping experience, services, qualityand discountare very high

y 69.8% of customers whos using pantaloons green card formore than 2 years says thatthe current loyalty program isexcellent

y Nearly 82% ofthe customer purchase at pantaloons for more

than 2 years are highly satisfied in problem solving at greencard desk

y 46.2% ofthe people are also holding globus loyalty card


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RECOMMENDATION

y Sitting area should be there for children and old people

y Provide Complimentary drinks for customers

y Provide out store offers to green card customers

y Billing counter should be placed on two sides at every floor forconvenience

y Entertainment games should be conducted in store

y Valet parking should be provided for convenience

y Atrained employees has to be at each floor to satisfy need of

customer

y MoreAdvertisement has to be done to increase the foot fall


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LEARNING AT PANTALOONS

y Promotional activities before and after store launching

y Usage and effectiveness of loyalty program

y Promotional event JOY EXCHANGE

y Fashion Friday at pantaloons


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project raghaven

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