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Project Report
On
“Customer Retention and ways to improve Loyalty
Program in Pantaloons, Sahara Ganj Lucknow”
FFoorr tthhee ppaarrttiiaall FFuullffiillllmmeenntt ooff tthhee AAwwaarrdd ooff tthhee PPoosstt GGrraadduuaattiioonn
DDiipplloommaa iinn MMaannaaggeemmeenntt
Session 2014-16
Faculty Guide: Industry Guide:
Dr. Vishal Gupta Mr. Vibhor Saxena
Submitted By:
Somnath Gupta (BM-014259)
DECLARATION
Customer Retention and ways to improve Loyalty Program in Pantaloons, Sahara Ganj Lucknow
is a factual report of my own project work undertaken towards partial fulfillment of the
DEGREE OF MANAGEMENT. This report has been submitted to the Department of Marketing
of IMS, Ghaziabad is an authentic record of my own work carried out during a period from 4th
MAY 2015 to 30th JUNE 2015 under the supervision of our Industrial Guide Mr. Vibhor
Saxena (CSD Executive).
The facts presented here are correct and true to best of my knowledge and belief.
Somnath Gupta
Date:
PREFACE
The project report is a part of Post Graduate Diploma in Management in Institute of Management
Studies, Ghaziabad. The PGDM program provides Summer Internship Projects under the
guidance of industries. The projects are assigned and completed as per the industry requirements.
The organization in which I have done my Summer Internship is PANTALOONS FASHION &
RETAIL LIMITED, SAHARA GANJ, LUCKNOW, and Uttar Pradesh. The project title is
“Customer Retention and ways to improve Loyalty Program in Pantaloons, Sahara Ganj
Lucknow” The basic purpose of this report is to gain information about Customer Retention and
ways to improve Loyalty Program in Pantaloons.
A sample has been taken of the Customer of the Pantaloons a survey is has been carried out on
them. Analytical approach has been used to write this report and both primary as well as
secondary sources of data collection have been used to collect the required information to
conduct the study.
After reading this report, one will get an insight about the Customer Retention and ways to
improve Loyalty Program in Pantaloons.
ACKNOWLEDGEMENT
I am indebted to Mr. Ashish Soni, Store Manager of Pantaloons Fashion & Retail Ltd.
Lucknow for giving me an opportunity to work as a Management Trainee in this esteemed
organization. His knowledge and experience was a great motivating factor. This effort would not
have been possible without his able, efficient, valuable and timely advice, insights and thoughts.
I am very much thankful to sir for his valuable guidance and support.
I take this opportunity to express my heartfelt gratitude to my faculty guide Dr. Vishal Gupta,
Faculty of Institute of Management Studies (IMS) Ghaziabad. I am thankful to sir for his
valuable support and guidance throughout the project.
I am also thankful to Mr. Vibhor Saxena, CSD Executive, Pantaloons Fashion & Retail Ltd.
for his assistance and support, I am equally grateful to each and every member of Pantaloons
Fashion & Retail Ltd, Lucknow for their whole-hearted co-operation in completing this project
in stipulated time.
I extend my sincere thanks to the all respondent who serve me there prestigious time me for my
project.
Last but not the least, I would like to thank my family members and friends whose unbounded
support facilitated the successful completion of the project.
Somnath Gupta
EXECUTIVE SYNOPSIS
Consumer retention is the key success factor for any retailer in current competitive market. With
a view to comprehend the competitive market scenario , the most upcoming suburb after the
launch of many new retail outlets and malls, an effort was made to ascertain and analyze
customer views and preferences for the same through process of Brand Recall.
Also, a detailed study was made to understand the performance pattern of major competitors of
Pantaloon shop. In doing so, it was possible to assess the competition in the market, hence
enabling us to position ourselves more effectively and strategize on a long term basis. During the
course of this project, I was also fortunate enough to be able to study the promotional campaigns
carried out in store. This report contains the findings arrived after detailed analysis of the data
received through observations made at the competitor’s stores and personal interviews conducted
with the customers at various department stores.
Objectives of the Study
To determine a competitive analysis based on the customer perception.
 Finding what the customer actually looks for in a store especially market.
 Study of current consumer tastes & attitudes towards a store.
The scope of project was limited to find out major competitors market share and consumer
behavior in selected region and understand various factors affecting the customer choice while
shopping. Pantaloons Fashion & Retail Limited is India’s leading premium Lifestyle Company.
With innovative designs, concepts and products, the company brings the latest trends in fashion
and clothing styles to the apparel market.
Pantaloons, previously controlled by the Future Group, has been recently taken over by Aditya
Birla Nuvo Limited, a US $4 billion premium diversified conglomerate and India's largest
manufacturer of linen fabric. Pantaloons offer multiple accessories and clothing brands across a
spectrum of categories for men, women and kids. The company provides an incredible and
complete one-stop shopping experience to its buyers through its vast collection of more than 100
prestigious brands for the discerning fashionista. Pantaloons, Headquartered in Mumbai
(Bombay), the company operates over 2.2 million square feet of retail space with a presence
across 47 cities through 100 aesthetically designed large format stores and 26 factory outlets,
displays a range of classy and trendy merchandise that truly lives up to Pantaloons’ maxim of
‘fresh fashion’. A typical Pantaloons store comprises a brand portfolio that runs across a gamut
of styles that spell class. The collection includes ready-to-wear western and ethnic apparel for
men, women and kids, complemented by an exhaustive range of accessories. The variety of
products and brands has helped propel Pantaloons to become one of the best clothing brands in
India.
Table of Content
S. No. Particular Page No.
1. Introduction to retail 8-10
2. Loyalty Program 11-13
3. History 15-21
4. CRM 22-28
5. Literature Review 30-31
6. Research Methodology &
Sample techniques
32-36
7. Analysis 37-49
8. Appendix 50-51
9. Recommendations &
Conclusion
52-53
10. Bibliography 54-55
CHAPTER 1
LOYALTY PROGRAM:
“Loyalty is one of the great engines of business success”.
The word loyalty has different explanation and it all refer to way of Services. It is important to
define exactly: what is meant by loyalty in the context of Business Development and Retention.
For this report, loyalty is defined as follows: “Loyalty is a positive belief, Generated over the
course of multiple interactions, in the value that a company and Its products and/or services
provide, which leads to continued interactions and Purchases over time.”
LOYALTY PROGRAM BASICS
Companies typically have several goals when launching loyalty programs, all of which are
focused on generating greater profits from the program’s members. These goals include-
• Improving knowledge of the customer.
• Leveraging that knowledge to increase the sales of undersold and/or highly profitable
products/services.
• Increasing customer retention and purchase frequency.
The most common type of loyalty program begins when a customer enrolls. From that point
forward, the organization accurately tracks information about that “member,” captures the
member’s purchases, credits points to the member based on the rules stored in a loyalty
“engine,” categorizes the member in tiers or groups based on the member’s value to the
organization, and enables the member to redeem points for products or services when various
point levels are attained. The specific types of behavior that are tracked and rewarded are unique
to each industry/company and are typically linked to the organization’s profitability drivers.
BENIFITS OF LOYALTY PROGRAM:
A loyalty program enables a company to gain detailed knowledge about its customer base with
the customer’s consent; customers actually want to provide transaction and detailed profile
information to ensure that they receive the full benefits of being a member of the program. In
some market segments—such as business-to-business—companies already possess significant
knowledge about their customers. As a result, these firms will not see customer knowledge as an
important component of a loyalty program’s value.
However, for most business-to-consumer companies, gaining this level of intimate customer
knowledge is a critical benefit of a loyalty program. In such B2C industries, loyalty programs
enable companies to match their faceless customer purchase data (what was bought, when, at
what store) with specific customer profile information, which can then be used to create targeted
marketing promotions or redesign services around high-value customers’ needs.
The loyalty program helps to get a good relationship with customers because without responding
or not providing any special benefit the may don’t think to come again for purchase to the
particular store so Customer Relationship Management makes it very useful.
INCREASED CUSTOMER RETENTION
A well-honed loyalty program improves customer retention rates, by increasing a member’s
“switching costs,” which are costs a member would bear in order to switch to a competing
provider. These costs can include decreased service and the time and resources required to build
a new relationship. The higher a member’s switching costs, the more likely that member is to
remain loyal.Most loyalty programs today do not create high enough switching costs for
members. For example, airline industry frequent-flier programs all provide virtually the same
product (a seat, perhaps with a few extra inches of legroom) and the same membership benefits
(separate customer service number, priority boarding, priority upgrades, and bonus miles).
If gold-tier members on one airline want to switch to a competitor because the competitor just
added nonstop service on their favorite routes, all they have to do is fax the competitor their last
frequent-flier statement, and they will immediately be made gold members of the competitor’s
frequent-flier program. Because the products and services these two airlines and their loyalty
programs provide are virtually identical, the members can switch to a competing carrier at
virtually no cost to themselves.
However, if the first loyalty program offered a unique set of benefits that the competing carrier
could not easily duplicate, it would be much less tempting for members to switch. Companies
use their loyalty programs to create these switching costs.
Businesses are quickly learning that being the best is no longer enough. Every consumer
demands the highest quality goods or services at the best prices, conveniently delivered to them
through whatever means and at any time they choose. So the retailers have to do everything to
meet those demands. At the same time, invest time and resources to hire and train the staff to be
courteous, friendly, helpful and trustworthy when facing customers. Today's customers have
more choice, are better informed and are more demanding of value and return for their spending
money. They look not only for the products and services that meet their needs at the price they
are willing to pay, but for the merchant that recognizes, appreciates and rewards their patronage.
Given this wide acceptance and popularity of reward & recognition-based loyalty programs,
merchants have leveraged, and continue to employ, programs to compliment their traditional
efforts in responding to a variety of challenges.
Now a day’s all big apparel retailers have started the loyalty program with different benefits in
order to satisfy customer needs and wants.
CHAPTER 2
Future Group
Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one of India’s leading
business houses with multiple businesses spanning across the consumption space. While retail
forms the core business activity of Future Group, group subsidiaries are present in consumer
finance, capital, insurance, leisure and entertainment, brand development, retail real estate
development, retail media and logistics.
Pantaloon Retail (India) Limited (PRIL) is the flagship company of Future Group, a business
group catering to the entire Indian consumption space.
PRIL is India’s leading retailer that operates multiple retail formats catering to the needs of both
the value and lifestyle segment of the Indian consumer market. The company which started its
operations from Kolkata is now headquartered in Mumbai (Bombay), India’s commercial capital.
Pantaloons Fashion & Retail Ltd.
Pantaloons, previously controlled by the Future Group, has been recently taken over by Aditya
Birla Nuvo Limited, a US $4 billion premium diversified conglomerate and India's largest
manufacturer of linen fabric. Pantaloons offer multiple accessories and clothing brands across a
spectrum of categories for men, women and kids. The company provides an incredible and
complete one-stop shopping experience to its buyers through its vast collection of more than 100
prestigious brands for the discerning fashionista. Pantaloons, Headquartered in Mumbai
(Bombay), the company operates over 2.2 million square feet of retail space with a presence
across 47 cities through 100 aesthetically designed large format stores and 26 factory outlets,
displays a range of classy and trendy merchandise that truly lives up to Pantaloons’ maxim of
‘fresh fashion’. A typical Pantaloons store comprises a brand portfolio that runs across a gamut
of styles that spell class. The collection includes ready-to-wear western and ethnic apparel for
men, women and kids, complemented by an exhaustive range of accessories. The variety of
products and brands has helped propel Pantaloons to become one of the best clothing brands in
India.
Spotlighting today's buoyant youth, Pantaloons, India's premium lifestyle apparel company
offers chic and trendy fashion to meet the youth's ever-changing needs. A pantaloon reflects the
ideology of keeping alive the 'newness factor' through fashion apparel and accessories that are
visually appealing and fashionably upbeat.
The first Pantaloons store was launched amidst much fanfare in Gariahat, Kolkata in 1997. Over
the years, the brand has undergone an evolution process to bring to life compelling trends and
styles catering to every fashion needs across women, men and kids. Currently we are a chain of
100+ fashion stores across 43 cities. Since its inception, Pantaloons progressed from retailing
just a mix of brands to its very own popular private labels as well, designed by the in-house
Design Studio. With a sharp focus on bringing the latest in fashion, the Design Studio combines
its prowess in design and aesthetics to present styles that keep the consumer fashionably dressed
each season. Initially positioned as a store catering to the fashion needs of the entire family,
Pantaloons has transitioned to a fashion and lifestyle brand with an emphasis on youth and a
focus on designs that are inherently in sync with current fashion trends. This compelling
combination has helped Pantaloons retain its place on the style radar of every consumer's
wardrobe.
A typical Pantaloons store is spread across a sprawling retail space of about 18,000 sq. ft., with a
brand portfolio that runs across a wide gamut of styles that spell class. Pantaloons stores have an
abundance of choices across categories that range from western to Indian wear, formal to party
wear and active wear for men, women and kids. To further add to the customer's innumerable
choices that reflect style, attitude, and comfort, Pantaloons has extended its horizons to fashion
accessories like fragrances, footwear, handbags, watches, sunglasses and much more.
With a vast collection of more than a 100 prestigious brands for the discerning fashionista,
Pantaloons offers an incredible and complete one-stop shopping experience to its buyers.
With a chain of 100 fashion stores and 25 factory outlets across 47 cities and towns, Pantaloons
is constantly extending its foot-prints into the rest of modern India. Pantaloons which was
previously controlled by the Future Group was taken over by Aditya Birla Nuvo Limited
['ABNL'] in July 2012. ABNL is a part of the prestigious Aditya Birla Group, a $40 billion
Indian multinational, operating in 36 countries across the globe with over 120,000 employees.
The Aditya Birla Group ranks high in the League of Fortune 500 Corporations of the world with
a strong mix of talented and capable personnel comprising 42 different nationalities, who are
credited with anchoring the organization and scripting one brilliant success story after another.
With its overwhelming repertoire of lifestyle apparel brands, Pantaloons is focused on growth
while continuing to create fresh fashion. Pantaloons are recognized by its warm personalized
service that completes the core proposition of this trendy chain. With all these advancements,
Pantaloons is one of the fastest growing apparel companies. And is poised to grow bigger and
better.
Recently Pantaloons launches Store
 Pantaloons launch its hundred stores in Karol Bagh, Delhi.
 Pantaloons launch its third store in Hazratganj, Lucknow.
Chief Executive Officer
Mr. Shital Mehta, has a Bachelor’s degree in Engineering (Electronics & Communication) from
D.D.I.J. (Gujarat University) and a Master’s degree in Business Administration (Marketing)
from the S.P. Jain Institute of Management & Research In 1996. He has also pursued advanced
management studies from Wharton Business School. Previously, he worked as the Brand
Manager with Godrej Foods Limited, during 1996-2000, where he was responsible for Brand
Management function for the Fruit-drinks category. He has been Aditya Birla Group for about 14
years. Prior to joining the company, he served as the Chief Operating Officer of the International
Brands and Retail division for Madura Fashion and Lifestyle.
CORE VALUES:
 Confidence in ourselves.
 To be a leader, both in thought, business and in innovation.
 Respect every individual and be humble in our Conduct.
 Leading to purposeful thinking.
 To be open and receptive to new ideas, knowledge and information.
 To build long term relationships.
 Simplicity and positively in our thought, business and ideas.
 To be flexible and adaptable, to meet challenges.
Pantaloons in House Brands
 Rangmanch.
 Trishaa.
 Akkriti.
 Annabelle.
 Honey.
 Bare Denim.
 Candies.
 RIG.
 Ajile.
 Alto Moda.
 SF Jeans.
 Chalk.
 Poppers.
 Bare Kids.
 Akkriti.
 Bare.
 Ajile.
 RIG.
 Lombard.
 F- Factor.
 Bare Leisure.
 JM Sport.
Non Pantaloons Brands
 BIBA
 AND
 Global Desi
 Jealous 21
 109 F
 W
 Allen Solly
 Louis Philippe
 Peter England
 John Miller
 Lee Cooper
 Levis
CUSTUMER RELATIONSHIP MANAGEMENT AT PANTALOONS
WHY CRM?
 Want to focus both on acquisition & Retention.
 To convert daily footfalls into loyal customers.
 Extraordinary service and customer satisfaction.
 Increase customer share.
CRM AT PANTALOONS:
• Pantaloons are following Customer Loyalty Program.
• CRM is practiced through the “GREEN CARD” program (GC).
• Green Card loyalty program contributes approx. 75% in profitability of Pantaloons across
country.
• Pantaloons maintain a customer database of 41 lakh across India.
• Software used is the ‘Capillary’.
PANTALOONS GREEN CARD PROGRAM:
INITIAL STEPS:
• Informing the Customer about the loyalty program
• To become a green card member
-Filling of form
• While filling the form various customer details like
-Name
-Address
-Date of Birth
-Phone No.
-e-mail id
-Income
-Relationship Status etc.
Are collected to form the customer database.
SPECIAL BENEFITSON ENROLLMENT:
• Parking fee is less on your bill
• Free home delivery
• 90 days exchange policy
And many more initial benefits are provided by pantaloons stores for retaining the
customer.
PANTALOONS GREEN CARD PROGRAM
“Your Green Card Is Your Passport To A Whole New World Of Exclusive Benefits And
Privileges.”
 Instant discount* for every time you shop at Pantaloons
 Exclusive shopping days to get hold of latest merchandise
 Regular updates on collections and promos via catalogues, sms and email
 Special invites to the most happening events
 Extended exchange periods and complimentary drops for alterations
 Exclusive billing counters and much more.
CATEGORIES VALID FOR GREEN CARD DISCOUNTS:
Also valid at Big Bazaar, HP Petrol pumps, Vodafone, and many more stores.
SHOP WITH GREEN CARD, GET REWARDED INSTANTLY,
 1 STAR MEMBERS
Parking Free.
 3 STAR MEMBERS
3% discount on every purchase.
 5 STAR MEMBERS
An exclusive 5% discount on every purchase.
 7 STAR MEMBERS
7% discount on every purchase.
Swipe card at the time of purchase to avail these discounts.
MOST RECENT PURCHASE HELPS TO UPGRADE
PANTALOONS upgrade is not dependent on the date of enrolment or calendar year. They now
upgrade on the basis of purchases immediately based on the preceding 12 months from current
shopping date.
MEMBERSHIP & 12 MONTH PURCHASE-BASED UPGRADING SYSTEM:
• THREE STAR CARD - Upgrade to a 3 star status by shopping for Rs. 8000/-
immediately preceding 12 months of current shopping date.
• FIVE STAR CARD - Upgrade to a 5 star status by shopping for Rs. 20000/- immediately
preceding 12 months of current shopping date.
• SEVEN STAR - Upgrade to a 7 star status by shopping for Rs. 40000/- immediately
preceding 12 months of current shopping date.
EXCLUSIVE BENEFITS AND PRIVILEGES:
• Instant discounts for every time you shop at Pantaloons.
• Regular updates on themes, collections and promos (beginning & end) via catalogues,
SMS and email.
• Special invites to the most happening events.
ADDITIONAL BENEFITS
 Green Add on Cards
- 1 and 3 star member : 1 add-on card
- 5 and 7 star member : 2 add-on cards
 Green Days: End Of Season Sale
 Green Channel: special billing counter during End of Season sale
 Green Offers
 Green Service Desk
 Green Exchange
 Green drop
7 STAR PRIVILEGES – A BIG “WOW”
Exclusive benefitsforgreencardmembers
EXTRA BENEFITS TO 7 STAR CUSTOMERS:
• Free parking space
• Free gifts
• Stock manager personally deal them
• Promotion is communicated first
BENIFITS 3 STAR 5 STAR 7 STAR
INSTANTDISCOUNT 5% 8% 10%
GREEN OFFERS ANDPROMOTION 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 (EXCEPT
SALES
PREVIEW)
YES
(AROUNDTHE
YEAR)
FREE PARKING YES YES YES
EXCLUSIVEBILLING COUNTER YES YES YES
CHAPTER 3
LITERATURE REVIEW:
LOYALTY PROGRAMS:BUILDING CUSTOMER LOYALTY TO BUILD
PROFITS.
“Loyaltyis one of the great enginesof businesssuccess”
Frederick F. Reicheld, author of the loyalty effect
Today’s successful readymade garment retailers recognize the importance of customer retention
in their efforts to grow operational profits. to achieve this, more and more retailers are
implementing loyalty programs as a competitive marketing strategy to build long-term
relationships with customers, allocate marketing rupees based on the customer’s value and derive
as much as revenue as possible from them over a lifetime. of course, loyalty is more than a
business strategy. It is an ongoing, two-way relationship based on respect, trust and commitment
– a relationship in which the customer feels all-important. A successful loyalty program builds
and nurtures such a relationship by accomplishing two critical tasks. the first is to gather
information that will help retailers understand their customers’ tastes, needs and expectations.
The second is to offer recognition and rewards (loyalty card, rewards card, points card,
advantage card, or club card) that are relevant to their customers as a reward for their loyalty –
and as a trade for the personal and transactional data that starts the loyalty cycle and keeps it
going. by tracking members’ transactions, companies can identify the various segments of their
customer base to create strategies that keep their customers coming back for more.
CUSTOMER INFORMATION IS KEY: Effective loyalty programs generate incremental
spending – more rupee spent, more frequently, from customers whose needs and expectations are
understood and met. With 80% of retailers’ business being generated from as little as 20% of
their customers, identifying and understanding their needs and expectations of this 20% is
crucial. by gathering customer information, retailer can make intelligent marketing decisions that
will keep their best and most profitable customers more loyal. they can also leverage this
thinking to increase sales the under-performing segments of their customer base. the most
valuable loyalty programs to retailers are those which utilize advanced technology to collect data
at the point of sale, track valuable information about customer purchase behaviour, and provide
access to rich database reports and analysis that can be used to increase the effectiveness of
retailers’ marketing campaigns.
What customers expect: Today’s consumers are more savvy and sophisticated than ever. They
expect loyalty programs to offer:
 easy participation
 instant rewards
 flexible rewards
 fast accumulation of rewards
 rewards claimed at any participating establishment
 special offers
 instant win opportunities
 membership cards
 greetings on special occasion
 gifts
RESEARCHMETHODOLOGY:
i. RESEARCH BACKGROUND:
 Research - Quantitative
 Research design - Descriptive study
 Data collection - Primary Data
 Sample area - Lucknow
 Sample size - 100 customers
 Sampling design - Non-probability technique
 Sampling Technique - Convenience sampling
 Research approach - Survey method
 Research instrument - Questionnaire
 Sampling tool - Structured Questionnaire method
 Analytical tool - Percentage, cross tabulation
ii. RESEARCH METHODOLOGY
Research method is an academic activity and as such as the term should be used in a technical
sense. This research comprises of defining and redefining problem, formulating hypothesis or
suggested solution; collecting; organizing and evaluating data; making deduction and reaching
conclusion; and at last carefully testing the conclusion to determine they fit the formulating
hypothesis. By this way proper methodology is an essential step in conducting research study.
iii. RESEARCH DESIGN
A research design is the arrangement of condition for collection and analysis of data in a manner
that aim to combine relevance to research purpose with procedure. The research design adopted
for this study is descriptive type. The objective of such a study is to answer “who, what, where
and how” of the subject under investigation. It is used because of its extensive flexibility, scope
and convenience. A descriptive research study is basically concerned with narration of particular
individual or group with specific predictions.
3.1 IMPORTANCE OF THE DESCRIPTIVE RESEARCH
 To describe the demographic characteristics of certain group.
 To estimate the proportion of people in a specified population who behave in a certain
way.
 To make specific predictions.
 To determine whether certain variables are associated.
3.2 RESEARCH APPROACH
The survey method was adopted for collecting the primary data. Survey research is the
systematic gathering of data from respondents through questionnaire.
3.3RESEARCH INSTRUMENT
The data for this research was collected by survey techniques using interview method, guided by
questionnaire.
4. SAMPLING
Sample denotes only a part of the universe / population. The sample represents the population
and is having the same characterizing as the population.
5. SAMPLING METHOD
Non – probability sampling
This type of sampling technique gives no assurance that every element has some specifiable
change of being included. It is clear that for the non – probability samples, there is no way of
calculating the margin of error and the confidence level.
5.1 CONVENIENCE SAMPLING
Sampling refers the method of selecting items to be observed for the study. The samples have
been selected for the study based on the convenience of the researcher. The method used here is
convenient sampling, where the samples are selected based on the convenience of researcher.
5.2 SAMPLING SIZE
Sampling size is the number of items to be selected from the universe to constitute the sample. In
this study, a sample study of 80 has been chosen.
5.3 SAMPLING AREA
This study was undertaken at pantaloons Sahara Ganj Lucknow.
5.4 PERIOD OF STUDY
The study was undertaken between May 2015 and June2015.
5.5 DATA COLLECTION DESIGN
A marketing researcher has to make a plan for collecting data which may be primary data,
secondary data or both.
5.5.1PRIMARY DATA
The primary data was obtained by administering survey method, guided by questionnaire to
collect information from customers. The questionnaire is both open and closed ended questions.
These methods were adopted since the data which is required is highly focused on customer
satisfaction.
5.5.2 SECONDARY DATA
The secondary data are collected through various sources like:
1. Secondary data are collected through internet related to industry, company, competitors,
etc
2. Review of articles being published on the topic in various magazines and newspapers
3. Data are also collected from the company brochures etc
5.5.3 QUESTIONNAIRES:
The best way to collect the data is to personally administer the questionnaires. The advantage of
this method is, the data can be collected from the respondents within a short period of time. Any
doubts that the respondents might have on any question could be clarified on the spot.
ANALYSIS
Gender
Gender FREQUENCY PERCENT
Male 57 57.57
Female 43 43.43
TOTAL 100 100.0
Interpretation:
From the above table we conclude that 57.57% customers are Male and 43.43% are Female.
57, 57%
43, 43%
Male
Female
Age Group
Age Group FREQUENCY PERCENT
15-25
25-35
35-45
45-Above
79
18
2
1
79.79
18.18
2.2
1.1
TOTAL 100 100.0
Interpretation:
From the above table we conclude that mostly teen agers prefer Pantaloons.
79, 79%
18, 18%
2, 2% 1, 1%
15-25
25-35
35-45
45- Above
1. What comes to your mind when you think Pantaloons?
Category Frequency Percentage
Product 10 10.10
Collections 38 38.38
Discount &offers 37 37.37
Quality 15 15.15
Total 100 100.0
Interpretation:
From the above graph we come to know that 38.38% of the customers think of collection 37.37%
of the customers are saying Discount and offers and rest customers are saying come for Product
and quality.
10, 10%
38, 38%
37, 37%
15, 15%
Product
Collections
Discount & Offers
Quality
2. How frequently you shop at Pantaloons.
Category Frequency Percentage
Every week 1 1.1
Once in 2 week 8 8.8
Once in 3 week 14 14.14
Once in a month 77 77.77
Total 100 100.0
Interpretation:
From the above graph we come to know that 77.77% of the customers are Pantaloons comes
once in a month and rest comes once in a 3 week, once in a 2 week & once in a 1 week.
1, 1%
8, 8%
14, 14%
77, 77%
Every week
Once in 2 week
Once in 3 week
Once in a month
3. Through which promotion source you come to know about Pantaloons?
Category Frequency Percentage
Advertisement 39 39.39
Electronic media 24 24.24
Print media 23 23.23
Magazines 14 14.14
Total 100 100.0
Interpretation:
From the above graph we come to know that 39.39% of the customers are Pantaloons come to
Know about Advertisement, 24.24% customers know through Electronic Media and rest
customer know through Print media and magazines.
39, 39%
24, 24%
23, 23%
14, 14%
Advertisement
Electronic media
Print media
Magazines
4. How would you rate your buying experience?
Category Frequency Percentage
Excellent 16 16.16
Very Good 38 38.38
Good 39 39.39
Average 6 6.6
Poor 1 1.1
Total 100 100.0
Interpretation:
From the above graph we come to know that 39.39% of the customers are saying good and
38.38% saying Very good. So we should need to improve.
16, 16%
38, 38%
39, 39%
6, 6%
1, 1%
Excellent
Very Good
Good
Average
Poor
5. After purchase what about warranty & exchange?
Category Frequency Percentage
Excellent 15 15.15
Very Good 40 40.40
Good 31 31.31
Average 12 12.12
Poor 2 2.2
Total 100 100.0
Interpretation:
From the above table we conclude that 40.40% of the customers are rate very good and 12.12%
are rate average about after purchase and warranty provided by pantaloons.
15. 15%
40. 40%
31. 31%
12. 12%
2. 2%
Excellent
Very Good
Good
Average
Poor
6. How would you rate customer service desk?
Category Frequency Percentage
Excellent 16 16.16
Very Good 52 52.52
Good 21 21.21
Average 10 10.10
Poor 1 1.1
Total 100 100.0
Interpretation:
From the above table we conclude that 52.52% of the customers are rate very good and 10.10%
are rate average about Our Customer service desk provided by pantaloons.
16. 16%
52. 52%
21. 21%
10. 10%
1. 1%
Excellent
Very Good
Good
Average
Poor
7. How would you rate customer loyalty program?
Category Frequency Percentage
Excellent 16 16.16
Very Good 37 37.37
Good 35 35.35
Average 11 11.11
Poor 1 1.1
Total 100 100.0
Interpretation:
From the above table we conclude that 37.37% of the customers are rate very good, 16.16% of
the customers are rate Excellent and 11.11% are rate average about customer loyalty program
provided by pantaloons.
16, 16%
37, 37%
35, 35%
11, 11%
1, 1%
Excellent
Very Good
Good
Average
Poor
8. How would you rate overall experience?
Category Frequency Percentage
Excellent 18 18.18
Very Good 40 40.40
Good 29 29.29
Average 12 12.12
Poor 1 1.1
Total 100 100.0
Interpretation:
From the above table we conclude that 40.40% of the customers are rate very good and 12.12%
are rate average about overall Experience.
18, 18%
40, 40%
29, 29%
12, 12%
1, 1%
Excellent
Very Good
Good
Average
Poor
9. How would you rate Brand & product availability?
Category Frequency Percentage
Excellent 20 20.20
Very Good 45 45.45
Good 26 26.26
Average 7 7.7
Poor 2 2.2
Total 100 100.0
Interpretation:
From the above table we conclude that 45.45% of the customers are rate very good, 20.20%
customers are Excellent and 7.7% are rate average about Pantaloons Brands and Product
availability.
20, 20%
45, 45%
26, 26%
7, 7%
2, 2%
Excellent
Very Good
Good
Average
Poor
10. How would you rate our store location?
Category Frequency Percentage
Excellent 35 35.35
Very Good 34 34.34
Good 24 24.24
Average 4 4.4
Poor 3 3.3
Total 100 100.0
Interpretation:
From the above table we conclude that 35.35% of the customers are rate Excellent, 34.34%
customers are rate Very good and 24.24% are rate good about Pantaloons Store location.
35, 35%
34, 34%
24, 24%
4, 4%
3, 3%
Excellent
Very Good
Good
Average
Poor
Q. Check how we rate the loyalty of the customer?
Therefore, H1- µ=1
µ≠1
One-Sample Statistics
N Mean
Std.
Deviation
Std. Error
Mean
CLP 80 2.48 .954 .107
One-Sample Test
Test Value = 1
t df
Sig. (2-
tailed)
Mean
Difference
95% Confidence Interval of
the Difference
Lower Upper
CLP 13.824 79 .000 1.475 1.26 1.69
Interpretation:
Since, No of respondents who actually are so, mean is 2.4 & S.D is .954.
Therefore, the range will be 2.48±.954.
T cal = 13.824
Q. Determine whether male & female have same have same buying experience towards
Pantaloons?
H0:- No difference in the Mean buying Experience rating among male & female i.e. µ1=µ2.
H1 :- There exists difference in the Mean buying Experience rating male & female i.e. µ1≠µ2.
Group Statistics
Gender N Mean Std. Deviation Std. Error Mean
Experience male 50 2.30 .931 .132
female 30 2.53 .730 .133
Interpretation:
Out of 80 respondents, all 80have respondedtowardsbuyingbehaviorof which 50 are malesandrest
are females
Q. Determine whether there exists a difference in the rating for CSD & Store Location among 80
respondents?
H0 :- No difference in the mean rating i.e. µD = µ0
H1 :- Difference exists mean rating i.e. µD≠0.
Independent Samples Test
Levene's Test
for Equality of
Variances t-test for Equality of Means
F Sig. t df
Sig.
(2-
tailed
)
Mean
Differenc
e
Std. Error
Differenc
e
95% Confidence
Interval of the
Difference
Lower Upper
Buying
Experience
Equal
variances
assumed
1.930 .169 -1.172 78 .245 -.233 .199 -.630 .163
Equal
variances
not
assumed
-1.245 72.405 .217 -.233 .187 -.607 .140
Paired Samples Statistics
Mean N Std. Deviation Std. Error Mean
Pair 1 CSD 2.32 80 .868 .097
Location 2.02 80 .954 .107
Paired Samples Correlations
N Correlation Sig.
Pair 1 CSD & Location 80 .571 .000
Paired Samples Test
Paired Differences
t df
Sig. (2-
tailed)Mean
Std.
Deviation
Std. Error
Mean
95% Confidence Interval
of the Difference
Lower Upper
Pair 1 CSD –
Location
.300 .848 .095 .111 .489 3.165 79 .002
Interpretation:
Mean CSD Level forPantaloonsis2.32 indicatingthatpeople weaklyratedforCSDfor Pantaloonswith
standarddeviation0.868 givingthe range of response towardsCSDto lie between2.32 ± 0.868. Similarly
For LucknowLocation.
Tcal= 3.165
d.o.f=n-1=79
P-value=.002 < α
Thus,difference existsinthe meanratingtowardsCSDand Locationwithmeanlevel weakforCSD&
Location.
Non Parametric Test
Crosstab between gender and availability
Case Processing Summary
Cases
Valid Missing Total
N Percent N Percent N Percent
Gender And Availability 80 100.0% 0 .0% 80 100.0%
Gender And Availability Cross tabulation
Count
Availability
TotalExcellent Very Good Good Average Poor
Gender Male 13 21 12 2 2 50
Female 6 15 7 2 0 30
Total 19 36 19 4 2 80
Interpretation:
Out of total 80 respondentswhoresponded,50were malesand30 were females.Outof 50 males13
ratedthe availabilityasExcellent,21as VeryGood,12 as Good, 2 as Average, and2 as Poor.
Out of 30 females6rated the availabilityasExcellent,15as VeryGood,7 as Good, and2 as Average.
Chi-Square Tests
Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 2.021a
4 .732
Likelihood Ratio 2.696 4 .610
Linear-by-Linear Association .004 1 .951
N of Valid Cases 80
Interpretation:
H0 No relationshipbetweenGender&Availability.
H1 RelationshipbetweenGender&Availability.
Chi- Square Cal = 2.021 with df = 4
ρ – value 0.732 > α (0.05), Therefore Accept H0 i.e. there is no relationship between Gender &
Availability.
Descriptive Statistics
Mean Std. Deviation Analysis N
Buying Experience 2.39 .864 80
Exchange 2.52 .927 80
CSD 2.32 .868 80
Experience 2.39 .934 80
Location 2.02 .954 80
CLP 2.48 .954 80
Availability 2.18 .938 80
Correlation Matrix
Buying
Experience Exchange CSD Experience Location CLP Availability
Correlation Buying
Experience
1.000 .564 .539 .407 .403 .603 .462
Exchange .564 1.000 .666 .551 .500 .630 .431
CSD .539 .666 1.000 .529 .571 .652 .582
Experience .407 .551 .529 1.000 .486 .557 .514
Location .403 .500 .571 .486 1.000 .473 .476
CLP .603 .630 .652 .557 .473 1.000 .514
Availability .462 .431 .582 .514 .476 .514 1.000
Interpretation:
There exists a co-relation between buying experience, overall experience, exchange, Customer
Loyalty Program, Customer Service Desk, Location And Availability. So they can be combined
to form 1 factor.
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .897
Bartlett's Test of Sphericity Approx. Chi-Square 256.568
df 21
Sig. .000
Interpretation:
Since the value of KMO liesbetween0.5and 1 i.e.itvalue is.897. therefore we cansay that factor
analysisisappropriate andsample size is adequate.
Bartlett’s Test
H0 = No relationship between the variables
H1 = Relationship exist between the variables.
Since Chi- Square Value is 256.568 and df is 21, ρ value is 0.00< α.
So reject H0 therefore relationship exists between the variables and factor analysis is appropriate.
Total Variance Explained
Component
Initial Eigenvalues Extraction Sums of Squared Loadings
Total % of Variance Cumulative % Total % of Variance Cumulative %
1 4.189 59.841 59.841 4.189 59.841 59.841
2 .675 9.647 69.488
3 .560 8.002 77.490
4 .532 7.601 85.092
5 .419 5.990 91.081
6 .350 5.002 96.084
7 .274 3.916 100.000
Extraction Method:Principal Component Analysis.
Interpretation:
Factor one explains 59.841% of the total variance
Therefore total data lost in data reduction techniques 40.16%.
Interpretation:
Since in the above graph the points become stagnant after 1 Point Therefore we will have only
one factor.
Component Matrixa
Component
1
CSD .846
CLP .825
Exchange .809
Experience .745
Buying
Experience
.733
Availability .730
Location .716
Extraction Method: Principal
ComponentAnalysis.
a. 1 components extracted.
Interpretation:
The matrix indicates only one factor and all the ab0ve variables can be combined to form this
factors since the values of the variables is > 0.3.
RECOMMENDATION
 Sitting area should be there for children and old people
 Provide Complimentary drinks for customers
 Provide out store offers to green card customers
 Billing counter should be placed on two sides at every floor for convenience
 Entertainment game’s should be conducted in store
 Valet parking should be provided for convenience
 A trained employees has to be at each floor to satisfy need of customer
 More Advertisement has to be done to increase the foot fall
 At least one more system require on Customer service desk.
 Exclusive billing counter
 Need to aware about green card our employee.
CONCLUSION
I conclude by telling that today many retailers are selling apparels so retaining customer
is very difficult and it’s not very easy we have to pull customers for repeated purchase
.the loyalty program plays a vital role in pulling customers to purchase apparel.
BIBLIOGRAPHY
http://www.seminarsonly.com/Engineering-Projects/Marketing/Customer-Retention-in-Retail-
Sector.php
http://www.ibef.org/industry/retail-india.aspx
http://www.adityabirlanuvo.com/pantaloons.php
http://www.pantloons.com
QUESTIONNAIRE
I Somnath Gupta student of IMS GHAZIABAD Conducting a study on “Customer Retention and
Ways to Improve Loyalty Program” as a part of my SUMMER INTERNSHIP PROJECT
TRAINING.
Name………………………………………………………………..
Gender: Male Female
Age Group: 15-25 25-35 35-45 45-Above
Contact No (Optional)…………………………………………
1. What comes to your mind when you think Pantaloons?
a) Discount & Offers c) Product
b) Collections d) Quality
2. How frequently you shop at Pantaloons.
a) Every week c) Once in 2 week
b) Once in 3 week d) Once in a month
3. Through which promotion source you come to know about Pantaloons?
a) Advertisement c) Print media
b) Electronic media d) Magazines
Excellent Very Good Good Average Poor
4. How would you rate your
buying experience?
5. After purchase what about
warranty & exchange
6. How would you rate
customer service desk?
7. How would you rate
customer loyalty program?
8. How would you rate overall
experience?
9. How would you rate Brand
& product availability?
10. How would you rate our
store location?
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Project Report

  • 1. Project Report On “Customer Retention and ways to improve Loyalty Program in Pantaloons, Sahara Ganj Lucknow” FFoorr tthhee ppaarrttiiaall FFuullffiillllmmeenntt ooff tthhee AAwwaarrdd ooff tthhee PPoosstt GGrraadduuaattiioonn DDiipplloommaa iinn MMaannaaggeemmeenntt Session 2014-16 Faculty Guide: Industry Guide: Dr. Vishal Gupta Mr. Vibhor Saxena Submitted By: Somnath Gupta (BM-014259)
  • 2. DECLARATION Customer Retention and ways to improve Loyalty Program in Pantaloons, Sahara Ganj Lucknow is a factual report of my own project work undertaken towards partial fulfillment of the DEGREE OF MANAGEMENT. This report has been submitted to the Department of Marketing of IMS, Ghaziabad is an authentic record of my own work carried out during a period from 4th MAY 2015 to 30th JUNE 2015 under the supervision of our Industrial Guide Mr. Vibhor Saxena (CSD Executive). The facts presented here are correct and true to best of my knowledge and belief. Somnath Gupta Date:
  • 3. PREFACE The project report is a part of Post Graduate Diploma in Management in Institute of Management Studies, Ghaziabad. The PGDM program provides Summer Internship Projects under the guidance of industries. The projects are assigned and completed as per the industry requirements. The organization in which I have done my Summer Internship is PANTALOONS FASHION & RETAIL LIMITED, SAHARA GANJ, LUCKNOW, and Uttar Pradesh. The project title is “Customer Retention and ways to improve Loyalty Program in Pantaloons, Sahara Ganj Lucknow” The basic purpose of this report is to gain information about Customer Retention and ways to improve Loyalty Program in Pantaloons. A sample has been taken of the Customer of the Pantaloons a survey is has been carried out on them. Analytical approach has been used to write this report and both primary as well as secondary sources of data collection have been used to collect the required information to conduct the study. After reading this report, one will get an insight about the Customer Retention and ways to improve Loyalty Program in Pantaloons.
  • 4. ACKNOWLEDGEMENT I am indebted to Mr. Ashish Soni, Store Manager of Pantaloons Fashion & Retail Ltd. Lucknow for giving me an opportunity to work as a Management Trainee in this esteemed organization. His knowledge and experience was a great motivating factor. This effort would not have been possible without his able, efficient, valuable and timely advice, insights and thoughts. I am very much thankful to sir for his valuable guidance and support. I take this opportunity to express my heartfelt gratitude to my faculty guide Dr. Vishal Gupta, Faculty of Institute of Management Studies (IMS) Ghaziabad. I am thankful to sir for his valuable support and guidance throughout the project. I am also thankful to Mr. Vibhor Saxena, CSD Executive, Pantaloons Fashion & Retail Ltd. for his assistance and support, I am equally grateful to each and every member of Pantaloons Fashion & Retail Ltd, Lucknow for their whole-hearted co-operation in completing this project in stipulated time. I extend my sincere thanks to the all respondent who serve me there prestigious time me for my project. Last but not the least, I would like to thank my family members and friends whose unbounded support facilitated the successful completion of the project. Somnath Gupta
  • 5. EXECUTIVE SYNOPSIS Consumer retention is the key success factor for any retailer in current competitive market. With a view to comprehend the competitive market scenario , the most upcoming suburb after the launch of many new retail outlets and malls, an effort was made to ascertain and analyze customer views and preferences for the same through process of Brand Recall. Also, a detailed study was made to understand the performance pattern of major competitors of Pantaloon shop. In doing so, it was possible to assess the competition in the market, hence enabling us to position ourselves more effectively and strategize on a long term basis. During the course of this project, I was also fortunate enough to be able to study the promotional campaigns carried out in store. This report contains the findings arrived after detailed analysis of the data received through observations made at the competitor’s stores and personal interviews conducted with the customers at various department stores. Objectives of the Study To determine a competitive analysis based on the customer perception.  Finding what the customer actually looks for in a store especially market.  Study of current consumer tastes & attitudes towards a store. The scope of project was limited to find out major competitors market share and consumer behavior in selected region and understand various factors affecting the customer choice while shopping. Pantaloons Fashion & Retail Limited is India’s leading premium Lifestyle Company. With innovative designs, concepts and products, the company brings the latest trends in fashion and clothing styles to the apparel market. Pantaloons, previously controlled by the Future Group, has been recently taken over by Aditya Birla Nuvo Limited, a US $4 billion premium diversified conglomerate and India's largest manufacturer of linen fabric. Pantaloons offer multiple accessories and clothing brands across a spectrum of categories for men, women and kids. The company provides an incredible and complete one-stop shopping experience to its buyers through its vast collection of more than 100 prestigious brands for the discerning fashionista. Pantaloons, Headquartered in Mumbai (Bombay), the company operates over 2.2 million square feet of retail space with a presence across 47 cities through 100 aesthetically designed large format stores and 26 factory outlets, displays a range of classy and trendy merchandise that truly lives up to Pantaloons’ maxim of ‘fresh fashion’. A typical Pantaloons store comprises a brand portfolio that runs across a gamut of styles that spell class. The collection includes ready-to-wear western and ethnic apparel for men, women and kids, complemented by an exhaustive range of accessories. The variety of products and brands has helped propel Pantaloons to become one of the best clothing brands in India.
  • 6. Table of Content S. No. Particular Page No. 1. Introduction to retail 8-10 2. Loyalty Program 11-13 3. History 15-21 4. CRM 22-28 5. Literature Review 30-31 6. Research Methodology & Sample techniques 32-36 7. Analysis 37-49 8. Appendix 50-51 9. Recommendations & Conclusion 52-53 10. Bibliography 54-55
  • 8. LOYALTY PROGRAM: “Loyalty is one of the great engines of business success”. The word loyalty has different explanation and it all refer to way of Services. It is important to define exactly: what is meant by loyalty in the context of Business Development and Retention. For this report, loyalty is defined as follows: “Loyalty is a positive belief, Generated over the course of multiple interactions, in the value that a company and Its products and/or services provide, which leads to continued interactions and Purchases over time.” LOYALTY PROGRAM BASICS Companies typically have several goals when launching loyalty programs, all of which are focused on generating greater profits from the program’s members. These goals include- • Improving knowledge of the customer. • Leveraging that knowledge to increase the sales of undersold and/or highly profitable products/services. • Increasing customer retention and purchase frequency. The most common type of loyalty program begins when a customer enrolls. From that point forward, the organization accurately tracks information about that “member,” captures the member’s purchases, credits points to the member based on the rules stored in a loyalty “engine,” categorizes the member in tiers or groups based on the member’s value to the organization, and enables the member to redeem points for products or services when various point levels are attained. The specific types of behavior that are tracked and rewarded are unique to each industry/company and are typically linked to the organization’s profitability drivers. BENIFITS OF LOYALTY PROGRAM: A loyalty program enables a company to gain detailed knowledge about its customer base with the customer’s consent; customers actually want to provide transaction and detailed profile information to ensure that they receive the full benefits of being a member of the program. In some market segments—such as business-to-business—companies already possess significant knowledge about their customers. As a result, these firms will not see customer knowledge as an important component of a loyalty program’s value. However, for most business-to-consumer companies, gaining this level of intimate customer knowledge is a critical benefit of a loyalty program. In such B2C industries, loyalty programs enable companies to match their faceless customer purchase data (what was bought, when, at
  • 9. what store) with specific customer profile information, which can then be used to create targeted marketing promotions or redesign services around high-value customers’ needs. The loyalty program helps to get a good relationship with customers because without responding or not providing any special benefit the may don’t think to come again for purchase to the particular store so Customer Relationship Management makes it very useful. INCREASED CUSTOMER RETENTION A well-honed loyalty program improves customer retention rates, by increasing a member’s “switching costs,” which are costs a member would bear in order to switch to a competing provider. These costs can include decreased service and the time and resources required to build a new relationship. The higher a member’s switching costs, the more likely that member is to remain loyal.Most loyalty programs today do not create high enough switching costs for members. For example, airline industry frequent-flier programs all provide virtually the same product (a seat, perhaps with a few extra inches of legroom) and the same membership benefits (separate customer service number, priority boarding, priority upgrades, and bonus miles). If gold-tier members on one airline want to switch to a competitor because the competitor just added nonstop service on their favorite routes, all they have to do is fax the competitor their last frequent-flier statement, and they will immediately be made gold members of the competitor’s frequent-flier program. Because the products and services these two airlines and their loyalty programs provide are virtually identical, the members can switch to a competing carrier at virtually no cost to themselves. However, if the first loyalty program offered a unique set of benefits that the competing carrier could not easily duplicate, it would be much less tempting for members to switch. Companies use their loyalty programs to create these switching costs. Businesses are quickly learning that being the best is no longer enough. Every consumer demands the highest quality goods or services at the best prices, conveniently delivered to them through whatever means and at any time they choose. So the retailers have to do everything to meet those demands. At the same time, invest time and resources to hire and train the staff to be courteous, friendly, helpful and trustworthy when facing customers. Today's customers have more choice, are better informed and are more demanding of value and return for their spending money. They look not only for the products and services that meet their needs at the price they are willing to pay, but for the merchant that recognizes, appreciates and rewards their patronage. Given this wide acceptance and popularity of reward & recognition-based loyalty programs, merchants have leveraged, and continue to employ, programs to compliment their traditional efforts in responding to a variety of challenges. Now a day’s all big apparel retailers have started the loyalty program with different benefits in order to satisfy customer needs and wants.
  • 11. Future Group Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one of India’s leading business houses with multiple businesses spanning across the consumption space. While retail forms the core business activity of Future Group, group subsidiaries are present in consumer finance, capital, insurance, leisure and entertainment, brand development, retail real estate development, retail media and logistics.
  • 12. Pantaloon Retail (India) Limited (PRIL) is the flagship company of Future Group, a business group catering to the entire Indian consumption space. PRIL is India’s leading retailer that operates multiple retail formats catering to the needs of both the value and lifestyle segment of the Indian consumer market. The company which started its operations from Kolkata is now headquartered in Mumbai (Bombay), India’s commercial capital. Pantaloons Fashion & Retail Ltd. Pantaloons, previously controlled by the Future Group, has been recently taken over by Aditya Birla Nuvo Limited, a US $4 billion premium diversified conglomerate and India's largest manufacturer of linen fabric. Pantaloons offer multiple accessories and clothing brands across a spectrum of categories for men, women and kids. The company provides an incredible and complete one-stop shopping experience to its buyers through its vast collection of more than 100 prestigious brands for the discerning fashionista. Pantaloons, Headquartered in Mumbai (Bombay), the company operates over 2.2 million square feet of retail space with a presence across 47 cities through 100 aesthetically designed large format stores and 26 factory outlets, displays a range of classy and trendy merchandise that truly lives up to Pantaloons’ maxim of ‘fresh fashion’. A typical Pantaloons store comprises a brand portfolio that runs across a gamut of styles that spell class. The collection includes ready-to-wear western and ethnic apparel for men, women and kids, complemented by an exhaustive range of accessories. The variety of products and brands has helped propel Pantaloons to become one of the best clothing brands in India. Spotlighting today's buoyant youth, Pantaloons, India's premium lifestyle apparel company offers chic and trendy fashion to meet the youth's ever-changing needs. A pantaloon reflects the ideology of keeping alive the 'newness factor' through fashion apparel and accessories that are visually appealing and fashionably upbeat.
  • 13. The first Pantaloons store was launched amidst much fanfare in Gariahat, Kolkata in 1997. Over the years, the brand has undergone an evolution process to bring to life compelling trends and styles catering to every fashion needs across women, men and kids. Currently we are a chain of 100+ fashion stores across 43 cities. Since its inception, Pantaloons progressed from retailing just a mix of brands to its very own popular private labels as well, designed by the in-house Design Studio. With a sharp focus on bringing the latest in fashion, the Design Studio combines its prowess in design and aesthetics to present styles that keep the consumer fashionably dressed each season. Initially positioned as a store catering to the fashion needs of the entire family, Pantaloons has transitioned to a fashion and lifestyle brand with an emphasis on youth and a focus on designs that are inherently in sync with current fashion trends. This compelling combination has helped Pantaloons retain its place on the style radar of every consumer's wardrobe. A typical Pantaloons store is spread across a sprawling retail space of about 18,000 sq. ft., with a brand portfolio that runs across a wide gamut of styles that spell class. Pantaloons stores have an abundance of choices across categories that range from western to Indian wear, formal to party wear and active wear for men, women and kids. To further add to the customer's innumerable choices that reflect style, attitude, and comfort, Pantaloons has extended its horizons to fashion accessories like fragrances, footwear, handbags, watches, sunglasses and much more. With a vast collection of more than a 100 prestigious brands for the discerning fashionista, Pantaloons offers an incredible and complete one-stop shopping experience to its buyers. With a chain of 100 fashion stores and 25 factory outlets across 47 cities and towns, Pantaloons is constantly extending its foot-prints into the rest of modern India. Pantaloons which was previously controlled by the Future Group was taken over by Aditya Birla Nuvo Limited ['ABNL'] in July 2012. ABNL is a part of the prestigious Aditya Birla Group, a $40 billion Indian multinational, operating in 36 countries across the globe with over 120,000 employees. The Aditya Birla Group ranks high in the League of Fortune 500 Corporations of the world with a strong mix of talented and capable personnel comprising 42 different nationalities, who are credited with anchoring the organization and scripting one brilliant success story after another. With its overwhelming repertoire of lifestyle apparel brands, Pantaloons is focused on growth while continuing to create fresh fashion. Pantaloons are recognized by its warm personalized service that completes the core proposition of this trendy chain. With all these advancements, Pantaloons is one of the fastest growing apparel companies. And is poised to grow bigger and better. Recently Pantaloons launches Store  Pantaloons launch its hundred stores in Karol Bagh, Delhi.  Pantaloons launch its third store in Hazratganj, Lucknow.
  • 14. Chief Executive Officer Mr. Shital Mehta, has a Bachelor’s degree in Engineering (Electronics & Communication) from D.D.I.J. (Gujarat University) and a Master’s degree in Business Administration (Marketing) from the S.P. Jain Institute of Management & Research In 1996. He has also pursued advanced management studies from Wharton Business School. Previously, he worked as the Brand Manager with Godrej Foods Limited, during 1996-2000, where he was responsible for Brand Management function for the Fruit-drinks category. He has been Aditya Birla Group for about 14 years. Prior to joining the company, he served as the Chief Operating Officer of the International Brands and Retail division for Madura Fashion and Lifestyle. CORE VALUES:  Confidence in ourselves.  To be a leader, both in thought, business and in innovation.  Respect every individual and be humble in our Conduct.  Leading to purposeful thinking.  To be open and receptive to new ideas, knowledge and information.  To build long term relationships.  Simplicity and positively in our thought, business and ideas.  To be flexible and adaptable, to meet challenges.
  • 15. Pantaloons in House Brands  Rangmanch.  Trishaa.  Akkriti.  Annabelle.  Honey.  Bare Denim.  Candies.  RIG.  Ajile.  Alto Moda.  SF Jeans.  Chalk.  Poppers.  Bare Kids.  Akkriti.  Bare.  Ajile.  RIG.  Lombard.  F- Factor.  Bare Leisure.  JM Sport. Non Pantaloons Brands  BIBA  AND  Global Desi  Jealous 21  109 F  W  Allen Solly  Louis Philippe  Peter England  John Miller  Lee Cooper  Levis
  • 16. CUSTUMER RELATIONSHIP MANAGEMENT AT PANTALOONS WHY CRM?  Want to focus both on acquisition & Retention.  To convert daily footfalls into loyal customers.  Extraordinary service and customer satisfaction.  Increase customer share. CRM AT PANTALOONS: • Pantaloons are following Customer Loyalty Program. • CRM is practiced through the “GREEN CARD” program (GC). • Green Card loyalty program contributes approx. 75% in profitability of Pantaloons across country. • Pantaloons maintain a customer database of 41 lakh across India. • Software used is the ‘Capillary’. PANTALOONS GREEN CARD PROGRAM: INITIAL STEPS: • Informing the Customer about the loyalty program • To become a green card member -Filling of form • While filling the form various customer details like -Name -Address -Date of Birth -Phone No. -e-mail id -Income -Relationship Status etc. Are collected to form the customer database.
  • 17. SPECIAL BENEFITSON ENROLLMENT: • Parking fee is less on your bill • Free home delivery • 90 days exchange policy And many more initial benefits are provided by pantaloons stores for retaining the customer. PANTALOONS GREEN CARD PROGRAM “Your Green Card Is Your Passport To A Whole New World Of Exclusive Benefits And Privileges.”  Instant discount* for every time you shop at Pantaloons  Exclusive shopping days to get hold of latest merchandise  Regular updates on collections and promos via catalogues, sms and email  Special invites to the most happening events  Extended exchange periods and complimentary drops for alterations  Exclusive billing counters and much more. CATEGORIES VALID FOR GREEN CARD DISCOUNTS: Also valid at Big Bazaar, HP Petrol pumps, Vodafone, and many more stores.
  • 18. SHOP WITH GREEN CARD, GET REWARDED INSTANTLY,  1 STAR MEMBERS Parking Free.  3 STAR MEMBERS 3% discount on every purchase.  5 STAR MEMBERS An exclusive 5% discount on every purchase.  7 STAR MEMBERS 7% discount on every purchase. Swipe card at the time of purchase to avail these discounts.
  • 19. MOST RECENT PURCHASE HELPS TO UPGRADE PANTALOONS upgrade is not dependent on the date of enrolment or calendar year. They now upgrade on the basis of purchases immediately based on the preceding 12 months from current shopping date. MEMBERSHIP & 12 MONTH PURCHASE-BASED UPGRADING SYSTEM: • THREE STAR CARD - Upgrade to a 3 star status by shopping for Rs. 8000/- immediately preceding 12 months of current shopping date. • FIVE STAR CARD - Upgrade to a 5 star status by shopping for Rs. 20000/- immediately preceding 12 months of current shopping date. • SEVEN STAR - Upgrade to a 7 star status by shopping for Rs. 40000/- immediately preceding 12 months of current shopping date. EXCLUSIVE BENEFITS AND PRIVILEGES: • Instant discounts for every time you shop at Pantaloons. • Regular updates on themes, collections and promos (beginning & end) via catalogues, SMS and email. • Special invites to the most happening events. ADDITIONAL BENEFITS  Green Add on Cards - 1 and 3 star member : 1 add-on card - 5 and 7 star member : 2 add-on cards  Green Days: End Of Season Sale  Green Channel: special billing counter during End of Season sale  Green Offers  Green Service Desk  Green Exchange  Green drop 7 STAR PRIVILEGES – A BIG “WOW” Exclusive benefitsforgreencardmembers
  • 20. EXTRA BENEFITS TO 7 STAR CUSTOMERS: • Free parking space • Free gifts • Stock manager personally deal them • Promotion is communicated first BENIFITS 3 STAR 5 STAR 7 STAR INSTANTDISCOUNT 5% 8% 10% GREEN OFFERS ANDPROMOTION 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 (EXCEPT SALES PREVIEW) YES (AROUNDTHE YEAR) FREE PARKING YES YES YES EXCLUSIVEBILLING COUNTER YES YES YES
  • 22. LITERATURE REVIEW: LOYALTY PROGRAMS:BUILDING CUSTOMER LOYALTY TO BUILD PROFITS. “Loyaltyis one of the great enginesof businesssuccess” Frederick F. Reicheld, author of the loyalty effect Today’s successful readymade garment retailers recognize the importance of customer retention in their efforts to grow operational profits. to achieve this, more and more retailers are implementing loyalty programs as a competitive marketing strategy to build long-term relationships with customers, allocate marketing rupees based on the customer’s value and derive as much as revenue as possible from them over a lifetime. of course, loyalty is more than a business strategy. It is an ongoing, two-way relationship based on respect, trust and commitment – a relationship in which the customer feels all-important. A successful loyalty program builds and nurtures such a relationship by accomplishing two critical tasks. the first is to gather information that will help retailers understand their customers’ tastes, needs and expectations. The second is to offer recognition and rewards (loyalty card, rewards card, points card, advantage card, or club card) that are relevant to their customers as a reward for their loyalty – and as a trade for the personal and transactional data that starts the loyalty cycle and keeps it going. by tracking members’ transactions, companies can identify the various segments of their customer base to create strategies that keep their customers coming back for more. CUSTOMER INFORMATION IS KEY: Effective loyalty programs generate incremental spending – more rupee spent, more frequently, from customers whose needs and expectations are understood and met. With 80% of retailers’ business being generated from as little as 20% of their customers, identifying and understanding their needs and expectations of this 20% is crucial. by gathering customer information, retailer can make intelligent marketing decisions that will keep their best and most profitable customers more loyal. they can also leverage this thinking to increase sales the under-performing segments of their customer base. the most valuable loyalty programs to retailers are those which utilize advanced technology to collect data at the point of sale, track valuable information about customer purchase behaviour, and provide access to rich database reports and analysis that can be used to increase the effectiveness of retailers’ marketing campaigns.
  • 23. What customers expect: Today’s consumers are more savvy and sophisticated than ever. They expect loyalty programs to offer:  easy participation  instant rewards  flexible rewards  fast accumulation of rewards  rewards claimed at any participating establishment  special offers  instant win opportunities  membership cards  greetings on special occasion  gifts
  • 24. RESEARCHMETHODOLOGY: i. RESEARCH BACKGROUND:  Research - Quantitative  Research design - Descriptive study  Data collection - Primary Data  Sample area - Lucknow  Sample size - 100 customers  Sampling design - Non-probability technique  Sampling Technique - Convenience sampling  Research approach - Survey method  Research instrument - Questionnaire  Sampling tool - Structured Questionnaire method  Analytical tool - Percentage, cross tabulation
  • 25. ii. RESEARCH METHODOLOGY Research method is an academic activity and as such as the term should be used in a technical sense. This research comprises of defining and redefining problem, formulating hypothesis or suggested solution; collecting; organizing and evaluating data; making deduction and reaching conclusion; and at last carefully testing the conclusion to determine they fit the formulating hypothesis. By this way proper methodology is an essential step in conducting research study. iii. RESEARCH DESIGN A research design is the arrangement of condition for collection and analysis of data in a manner that aim to combine relevance to research purpose with procedure. The research design adopted for this study is descriptive type. The objective of such a study is to answer “who, what, where and how” of the subject under investigation. It is used because of its extensive flexibility, scope and convenience. A descriptive research study is basically concerned with narration of particular individual or group with specific predictions. 3.1 IMPORTANCE OF THE DESCRIPTIVE RESEARCH  To describe the demographic characteristics of certain group.  To estimate the proportion of people in a specified population who behave in a certain way.  To make specific predictions.  To determine whether certain variables are associated. 3.2 RESEARCH APPROACH The survey method was adopted for collecting the primary data. Survey research is the systematic gathering of data from respondents through questionnaire.
  • 26. 3.3RESEARCH INSTRUMENT The data for this research was collected by survey techniques using interview method, guided by questionnaire. 4. SAMPLING Sample denotes only a part of the universe / population. The sample represents the population and is having the same characterizing as the population. 5. SAMPLING METHOD Non – probability sampling This type of sampling technique gives no assurance that every element has some specifiable change of being included. It is clear that for the non – probability samples, there is no way of calculating the margin of error and the confidence level. 5.1 CONVENIENCE SAMPLING Sampling refers the method of selecting items to be observed for the study. The samples have been selected for the study based on the convenience of the researcher. The method used here is convenient sampling, where the samples are selected based on the convenience of researcher. 5.2 SAMPLING SIZE Sampling size is the number of items to be selected from the universe to constitute the sample. In this study, a sample study of 80 has been chosen. 5.3 SAMPLING AREA This study was undertaken at pantaloons Sahara Ganj Lucknow. 5.4 PERIOD OF STUDY The study was undertaken between May 2015 and June2015.
  • 27. 5.5 DATA COLLECTION DESIGN A marketing researcher has to make a plan for collecting data which may be primary data, secondary data or both. 5.5.1PRIMARY DATA The primary data was obtained by administering survey method, guided by questionnaire to collect information from customers. The questionnaire is both open and closed ended questions. These methods were adopted since the data which is required is highly focused on customer satisfaction. 5.5.2 SECONDARY DATA The secondary data are collected through various sources like: 1. Secondary data are collected through internet related to industry, company, competitors, etc 2. Review of articles being published on the topic in various magazines and newspapers 3. Data are also collected from the company brochures etc 5.5.3 QUESTIONNAIRES: The best way to collect the data is to personally administer the questionnaires. The advantage of this method is, the data can be collected from the respondents within a short period of time. Any doubts that the respondents might have on any question could be clarified on the spot.
  • 29. Gender Gender FREQUENCY PERCENT Male 57 57.57 Female 43 43.43 TOTAL 100 100.0 Interpretation: From the above table we conclude that 57.57% customers are Male and 43.43% are Female. 57, 57% 43, 43% Male Female
  • 30. Age Group Age Group FREQUENCY PERCENT 15-25 25-35 35-45 45-Above 79 18 2 1 79.79 18.18 2.2 1.1 TOTAL 100 100.0 Interpretation: From the above table we conclude that mostly teen agers prefer Pantaloons. 79, 79% 18, 18% 2, 2% 1, 1% 15-25 25-35 35-45 45- Above
  • 31. 1. What comes to your mind when you think Pantaloons? Category Frequency Percentage Product 10 10.10 Collections 38 38.38 Discount &offers 37 37.37 Quality 15 15.15 Total 100 100.0 Interpretation: From the above graph we come to know that 38.38% of the customers think of collection 37.37% of the customers are saying Discount and offers and rest customers are saying come for Product and quality. 10, 10% 38, 38% 37, 37% 15, 15% Product Collections Discount & Offers Quality
  • 32. 2. How frequently you shop at Pantaloons. Category Frequency Percentage Every week 1 1.1 Once in 2 week 8 8.8 Once in 3 week 14 14.14 Once in a month 77 77.77 Total 100 100.0 Interpretation: From the above graph we come to know that 77.77% of the customers are Pantaloons comes once in a month and rest comes once in a 3 week, once in a 2 week & once in a 1 week. 1, 1% 8, 8% 14, 14% 77, 77% Every week Once in 2 week Once in 3 week Once in a month
  • 33. 3. Through which promotion source you come to know about Pantaloons? Category Frequency Percentage Advertisement 39 39.39 Electronic media 24 24.24 Print media 23 23.23 Magazines 14 14.14 Total 100 100.0 Interpretation: From the above graph we come to know that 39.39% of the customers are Pantaloons come to Know about Advertisement, 24.24% customers know through Electronic Media and rest customer know through Print media and magazines. 39, 39% 24, 24% 23, 23% 14, 14% Advertisement Electronic media Print media Magazines
  • 34. 4. How would you rate your buying experience? Category Frequency Percentage Excellent 16 16.16 Very Good 38 38.38 Good 39 39.39 Average 6 6.6 Poor 1 1.1 Total 100 100.0 Interpretation: From the above graph we come to know that 39.39% of the customers are saying good and 38.38% saying Very good. So we should need to improve. 16, 16% 38, 38% 39, 39% 6, 6% 1, 1% Excellent Very Good Good Average Poor
  • 35. 5. After purchase what about warranty & exchange? Category Frequency Percentage Excellent 15 15.15 Very Good 40 40.40 Good 31 31.31 Average 12 12.12 Poor 2 2.2 Total 100 100.0 Interpretation: From the above table we conclude that 40.40% of the customers are rate very good and 12.12% are rate average about after purchase and warranty provided by pantaloons. 15. 15% 40. 40% 31. 31% 12. 12% 2. 2% Excellent Very Good Good Average Poor
  • 36. 6. How would you rate customer service desk? Category Frequency Percentage Excellent 16 16.16 Very Good 52 52.52 Good 21 21.21 Average 10 10.10 Poor 1 1.1 Total 100 100.0 Interpretation: From the above table we conclude that 52.52% of the customers are rate very good and 10.10% are rate average about Our Customer service desk provided by pantaloons. 16. 16% 52. 52% 21. 21% 10. 10% 1. 1% Excellent Very Good Good Average Poor
  • 37. 7. How would you rate customer loyalty program? Category Frequency Percentage Excellent 16 16.16 Very Good 37 37.37 Good 35 35.35 Average 11 11.11 Poor 1 1.1 Total 100 100.0 Interpretation: From the above table we conclude that 37.37% of the customers are rate very good, 16.16% of the customers are rate Excellent and 11.11% are rate average about customer loyalty program provided by pantaloons. 16, 16% 37, 37% 35, 35% 11, 11% 1, 1% Excellent Very Good Good Average Poor
  • 38. 8. How would you rate overall experience? Category Frequency Percentage Excellent 18 18.18 Very Good 40 40.40 Good 29 29.29 Average 12 12.12 Poor 1 1.1 Total 100 100.0 Interpretation: From the above table we conclude that 40.40% of the customers are rate very good and 12.12% are rate average about overall Experience. 18, 18% 40, 40% 29, 29% 12, 12% 1, 1% Excellent Very Good Good Average Poor
  • 39. 9. How would you rate Brand & product availability? Category Frequency Percentage Excellent 20 20.20 Very Good 45 45.45 Good 26 26.26 Average 7 7.7 Poor 2 2.2 Total 100 100.0 Interpretation: From the above table we conclude that 45.45% of the customers are rate very good, 20.20% customers are Excellent and 7.7% are rate average about Pantaloons Brands and Product availability. 20, 20% 45, 45% 26, 26% 7, 7% 2, 2% Excellent Very Good Good Average Poor
  • 40. 10. How would you rate our store location? Category Frequency Percentage Excellent 35 35.35 Very Good 34 34.34 Good 24 24.24 Average 4 4.4 Poor 3 3.3 Total 100 100.0 Interpretation: From the above table we conclude that 35.35% of the customers are rate Excellent, 34.34% customers are rate Very good and 24.24% are rate good about Pantaloons Store location. 35, 35% 34, 34% 24, 24% 4, 4% 3, 3% Excellent Very Good Good Average Poor
  • 41. Q. Check how we rate the loyalty of the customer? Therefore, H1- µ=1 µ≠1 One-Sample Statistics N Mean Std. Deviation Std. Error Mean CLP 80 2.48 .954 .107 One-Sample Test Test Value = 1 t df Sig. (2- tailed) Mean Difference 95% Confidence Interval of the Difference Lower Upper CLP 13.824 79 .000 1.475 1.26 1.69 Interpretation: Since, No of respondents who actually are so, mean is 2.4 & S.D is .954. Therefore, the range will be 2.48±.954. T cal = 13.824 Q. Determine whether male & female have same have same buying experience towards Pantaloons? H0:- No difference in the Mean buying Experience rating among male & female i.e. µ1=µ2. H1 :- There exists difference in the Mean buying Experience rating male & female i.e. µ1≠µ2. Group Statistics Gender N Mean Std. Deviation Std. Error Mean Experience male 50 2.30 .931 .132 female 30 2.53 .730 .133
  • 42. Interpretation: Out of 80 respondents, all 80have respondedtowardsbuyingbehaviorof which 50 are malesandrest are females Q. Determine whether there exists a difference in the rating for CSD & Store Location among 80 respondents? H0 :- No difference in the mean rating i.e. µD = µ0 H1 :- Difference exists mean rating i.e. µD≠0. Independent Samples Test Levene's Test for Equality of Variances t-test for Equality of Means F Sig. t df Sig. (2- tailed ) Mean Differenc e Std. Error Differenc e 95% Confidence Interval of the Difference Lower Upper Buying Experience Equal variances assumed 1.930 .169 -1.172 78 .245 -.233 .199 -.630 .163 Equal variances not assumed -1.245 72.405 .217 -.233 .187 -.607 .140
  • 43. Paired Samples Statistics Mean N Std. Deviation Std. Error Mean Pair 1 CSD 2.32 80 .868 .097 Location 2.02 80 .954 .107 Paired Samples Correlations N Correlation Sig. Pair 1 CSD & Location 80 .571 .000 Paired Samples Test Paired Differences t df Sig. (2- tailed)Mean Std. Deviation Std. Error Mean 95% Confidence Interval of the Difference Lower Upper Pair 1 CSD – Location .300 .848 .095 .111 .489 3.165 79 .002 Interpretation: Mean CSD Level forPantaloonsis2.32 indicatingthatpeople weaklyratedforCSDfor Pantaloonswith standarddeviation0.868 givingthe range of response towardsCSDto lie between2.32 ± 0.868. Similarly For LucknowLocation. Tcal= 3.165 d.o.f=n-1=79 P-value=.002 < α Thus,difference existsinthe meanratingtowardsCSDand Locationwithmeanlevel weakforCSD& Location.
  • 44. Non Parametric Test Crosstab between gender and availability Case Processing Summary Cases Valid Missing Total N Percent N Percent N Percent Gender And Availability 80 100.0% 0 .0% 80 100.0% Gender And Availability Cross tabulation Count Availability TotalExcellent Very Good Good Average Poor Gender Male 13 21 12 2 2 50 Female 6 15 7 2 0 30 Total 19 36 19 4 2 80 Interpretation: Out of total 80 respondentswhoresponded,50were malesand30 were females.Outof 50 males13 ratedthe availabilityasExcellent,21as VeryGood,12 as Good, 2 as Average, and2 as Poor. Out of 30 females6rated the availabilityasExcellent,15as VeryGood,7 as Good, and2 as Average.
  • 45. Chi-Square Tests Value df Asymp. Sig. (2-sided) Pearson Chi-Square 2.021a 4 .732 Likelihood Ratio 2.696 4 .610 Linear-by-Linear Association .004 1 .951 N of Valid Cases 80 Interpretation: H0 No relationshipbetweenGender&Availability. H1 RelationshipbetweenGender&Availability. Chi- Square Cal = 2.021 with df = 4 ρ – value 0.732 > α (0.05), Therefore Accept H0 i.e. there is no relationship between Gender & Availability. Descriptive Statistics Mean Std. Deviation Analysis N Buying Experience 2.39 .864 80 Exchange 2.52 .927 80 CSD 2.32 .868 80 Experience 2.39 .934 80 Location 2.02 .954 80 CLP 2.48 .954 80 Availability 2.18 .938 80
  • 46. Correlation Matrix Buying Experience Exchange CSD Experience Location CLP Availability Correlation Buying Experience 1.000 .564 .539 .407 .403 .603 .462 Exchange .564 1.000 .666 .551 .500 .630 .431 CSD .539 .666 1.000 .529 .571 .652 .582 Experience .407 .551 .529 1.000 .486 .557 .514 Location .403 .500 .571 .486 1.000 .473 .476 CLP .603 .630 .652 .557 .473 1.000 .514 Availability .462 .431 .582 .514 .476 .514 1.000 Interpretation: There exists a co-relation between buying experience, overall experience, exchange, Customer Loyalty Program, Customer Service Desk, Location And Availability. So they can be combined to form 1 factor. KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .897 Bartlett's Test of Sphericity Approx. Chi-Square 256.568 df 21 Sig. .000 Interpretation: Since the value of KMO liesbetween0.5and 1 i.e.itvalue is.897. therefore we cansay that factor analysisisappropriate andsample size is adequate.
  • 47. Bartlett’s Test H0 = No relationship between the variables H1 = Relationship exist between the variables. Since Chi- Square Value is 256.568 and df is 21, ρ value is 0.00< α. So reject H0 therefore relationship exists between the variables and factor analysis is appropriate. Total Variance Explained Component Initial Eigenvalues Extraction Sums of Squared Loadings Total % of Variance Cumulative % Total % of Variance Cumulative % 1 4.189 59.841 59.841 4.189 59.841 59.841 2 .675 9.647 69.488 3 .560 8.002 77.490 4 .532 7.601 85.092 5 .419 5.990 91.081 6 .350 5.002 96.084 7 .274 3.916 100.000 Extraction Method:Principal Component Analysis. Interpretation: Factor one explains 59.841% of the total variance Therefore total data lost in data reduction techniques 40.16%.
  • 48. Interpretation: Since in the above graph the points become stagnant after 1 Point Therefore we will have only one factor.
  • 49. Component Matrixa Component 1 CSD .846 CLP .825 Exchange .809 Experience .745 Buying Experience .733 Availability .730 Location .716 Extraction Method: Principal ComponentAnalysis. a. 1 components extracted. Interpretation: The matrix indicates only one factor and all the ab0ve variables can be combined to form this factors since the values of the variables is > 0.3.
  • 51.  Sitting area should be there for children and old people  Provide Complimentary drinks for customers  Provide out store offers to green card customers  Billing counter should be placed on two sides at every floor for convenience  Entertainment game’s should be conducted in store  Valet parking should be provided for convenience  A trained employees has to be at each floor to satisfy need of customer  More Advertisement has to be done to increase the foot fall  At least one more system require on Customer service desk.  Exclusive billing counter  Need to aware about green card our employee. CONCLUSION I conclude by telling that today many retailers are selling apparels so retaining customer is very difficult and it’s not very easy we have to pull customers for repeated purchase .the loyalty program plays a vital role in pulling customers to purchase apparel.
  • 55. I Somnath Gupta student of IMS GHAZIABAD Conducting a study on “Customer Retention and Ways to Improve Loyalty Program” as a part of my SUMMER INTERNSHIP PROJECT TRAINING. Name……………………………………………………………….. Gender: Male Female Age Group: 15-25 25-35 35-45 45-Above Contact No (Optional)………………………………………… 1. What comes to your mind when you think Pantaloons? a) Discount & Offers c) Product b) Collections d) Quality 2. How frequently you shop at Pantaloons. a) Every week c) Once in 2 week b) Once in 3 week d) Once in a month 3. Through which promotion source you come to know about Pantaloons? a) Advertisement c) Print media b) Electronic media d) Magazines Excellent Very Good Good Average Poor 4. How would you rate your buying experience? 5. After purchase what about warranty & exchange 6. How would you rate customer service desk? 7. How would you rate customer loyalty program? 8. How would you rate overall experience? 9. How would you rate Brand & product availability? 10. How would you rate our store location?