You are on page 1of 111

A Project Report On

Customer loyalty programme in different hypermarkets in NCR i.e. Subhiksha and Reliance (a comparison)
Submission in the fulfillment for award of degree of Master of Business Administration (MBA) from MDU, Rohtak (Session 2008-2010) PROJECT SUPERVISOR: DR. R.N .SINGH Submitted by: Vikash REG. NO. 05-BB-894

Institute of Management & Technology


(Approved by AICTE & Affiliated to M. D. University, Rohtak) Near Sai Dham, Tigaon Road, Faridabad-121002

ACKNOWLEDGEMENT
It gives me a great sense of pleasure in extending my acknowledgement to the person whose co-operation and guidance enable me to complete my project successfully. It is their support and co-operation which has helped me to collect all the required data and to prepare report. Therefore without trying to achieve this impossible task I would like to thanks Dr. R. N. Singh (Prof. IMT FBD)

for giving their precious time to help me. I would also like to thank me cotrainees and every other members of the organization. I also want to express my thanks to Dr. Hari Om Sharma(HOD, IMT, FBD), for their cooperation as and when needed. I would be failing my duty if I dont mention my seniors who helped me at various moments, during my project. Specially, I am thankful to my parents and God for their blessings and showing me the right way at all moments. Last but not the least I thank all who are responsible for the success of this training report.

Vikas

PREFACE
Practical training is an important part of theoretical studies. It covers all which remains uncovered in the classroom. It offers an exposure to real practicalities of management of business organization. As we all know that practical training plays an important role in future building for an individual. One can easily overcome the fear of life in which he has to join as a member after sometimes. Just theoretical knowledge is not sufficient for the success of an individual to one should have practical knowledge about theory of general life. I have been given an opportunity to do practical training on the Effect of Customer Loyalty Programs in convenience stores. I availed of this opportunity in a very satisfactory manner and I think it will be much beneficial for in future building.

vikash

DECLARATION

I, Vikash, Roll No.. , M.B.A.(4th Semester) of the Institute of Management & Technology, Faridabad hereby declare that the Project entitled, To Study the Consumer Behavior in hypermarkets in NCR is an original work and the same has not been submitted to any other institute for the award of any other degree. The interim report was presented to the Supervisor on .. and the pre-submission presentation was made on

.The feasible suggestions have been duly incorporated in consultation with the Supervisor.

Countersigned

Signature of the Supervisor Candidate

Signature of the

Forwarded by Director/Principal of the Institute

INDEX
Chapter 1 Introduction
Significance of study Review of existing literature Conceptualization Objective of the study Hypotheses Limitations Chapterization Notes (References)

Chapter 2 Research Methodology


Industry profile Company Profile Research design Data collection (primary and secondary) Sample size & Technique

Chapter 3 Micro Analysis


Chapter 4 Macro Analysis Chapter-5 findings of the survey Suggestion of the study conclution

Bibliography Appendics
5

Questionnaire List of table with title and page numbers List of the table and graphs.

Significance of study
Significance of study is important for the retail companies. Who fail or lack in customer loyalty program in convenience store. It is to study that how the loyalty programs attract to the customers and effects of loyalty program on customers. For to study the following objectives: To study the Customer Loyalty Programs in different convenience stores. To know that how they attract to the Customers for purchasing in the convenience stores. To know the Effect of Loyalty program on customers.

Review Existing Literature


Loyalty, in day-to-day life, implies an unselfish belief in institutions or unswerving fidelity in marriage, or emotional commitment to friends. Loyalty also suggests monogamy: one choice above all others. 2 Another definition is: A deeply held commitment to rebuy or repatronize a preferred product/service consistently in the future, thereby causing repetitive behaviour reflecting purchase of the brand despite situational influences and marketing efforts having the potential to cause a switching behavior. Loyalty is, in simpler terms, a reliance on a particular brand or company even though numerous satisfactory alternatives may exist. Loyalty helps build relationships. It requires that companies view customers as people first and consumers second. Trust, commitment, ethical practices, fulfillment of promises, mutual exchange, emotional bonding, personalization and customer orientation have been reported to be the key elements in the relationship building process (Levitt,1986;Gronroos, al,1998). On May 1, 1981 American Airlines launched the first full-scale loyalty marketing program of the modern era with the Advantage miles program. This revolutionary program was the first to reward "frequent fliers" with reward miles that could be accumulated and later redeemed for free travel. Within a few 1994; Morgan,1994; Gummesson,1994;Bejou et

years, dozens of travel industry companies launched similar programs. The Advantage program now boasts over 50 million active members. American Airlines' Advantage program can trace some of its roots to S&H Green stamps which were a popular retail reward coupon issued very commonly from the 1930s through the 1980s. Typically, as a consumer shopped at various grocery and dry good stores, they would receive a set number of Green Stamps that could be pasted into booklets and redeemed for prizes. Another early "loyalty marketing" program was created by baking brand Betty Crocker. In 1929, Betty Crocker issued coupons that could be used to redeem for items like free flatware. In 1937 the coupons were printed on the outside of packages, and later the Betty Crocker points program produced a popular reward catalog from which customers could pick rewards using their points. In 2006, it was announced that the Betty Crocker Catalog was going out of business and that all points needed to be redeemed by December 15, 2006. With it, one of the earliest loyalty programs ends a 77 year tradition.

CONCEPTUALISATION Introduction of Customer loyalty Programmes


Loyalty: Loyalty, in day-to-day life, implies an unselfish belief in institutions
or unswerving fidelity in marriage, or emotional commitment to friends. Loyalty also suggests monogamy: one choice above all others. 2 Another definition is: A deeply held commitment to rebuy or repatronize a preferred product/service consistently in the future, thereby causing repetitive behaviour reflecting purchase of the brand despite situational influences and marketing efforts having the potential to cause a switching behavior. loyalty is, in simpler terms, a reliance on a particular brand or company even though numerous satisfactory alternatives may exist. Loyalty helps build relationships. It requires that companies view customers as people first and consumers second. Trust, commitment, ethical practices, fulfillment of promises, mutual exchange, emotional bonding, personalization and customer orientation have been reported to be the key elements 1994; in the relationship building process et

(Levitt,1986;Gronroos, al,1998).

Morgan,1994;

Gummesson,1994;Bejou

Defining Customer Loyalty

10

Customer loyalty is the practice of finding, attracting, and retaining your customers who regularly purchase from you. It is different from customer satisfaction. Customer satisfaction is the basic entry point of good business practices. Loyalty cards and programs have their rewards and pitfalls. Rewarding customers for spending more Rupees can create a vicious cycle of creating customers who want rewards and will look anywhere to obtain them. With loyalty cards and programs reaching a saturation point. Software, card programs, and loyalty schemes are the tools of customer loyalty programs but they aren't the essence of loyalty. To build loyalty, you must earn it. Look at these 8 ways to earn more customer loyalty for business.

Customer loyalty management


Despite a flurry of activities aimed at serving customers better, few companies have systematically revamped their operations with customer loyalty in mind. Instead, most have adopted improvement programs ad hoc, and paybacks haven't materialized. Building a highly loyal customer base must be integral to a company's basic business strategy. Loyalty leaders like MBNA credit cards are successful because they have designed their entire business systems around customer loyalty--a self-reinforcing system in which the company delivers superior value consistently and reinvents cash flows to find and keep highquality customers and employees. The economic benefits of high customer loyalty are measurable. When a company consistently delivers superior value and wins customer loyalty, market share and revenues go up, and the cost of

11

acquiring new customers goes down. The better economics mean the company can pay workers better, which sets off a whole chain of events. Increased pay boosts employee morale and commitment; as employees stay longer, their productivity goes up and training costs fall; employees' overall job satisfaction, combined with their experience, helps them serve customers better; and customers are then more inclined to stay loyal to the company. Finally, as the best customers and employees become part of the loyalty-based system, competitors are left to survive with less desirable customers and less talented employees. To compete on loyalty, a company must understand the relationships between customer retention and the other parts of the business--and be able to quantify the linkages between loyalty and profits. It involves rethinking and aligning four important aspects of the business: customers, product/service offering, employees, and measurement systems. Customer loyalty is the practice of finding, attracting, and retaining your customers who regularly purchase from you. It is different from customer satisfaction. Customer satisfaction is the basic entry point of good business practices. Loyalty cards and programs have their rewards and pitfalls. Rewarding customers for spending more Rupees can create a vicious cycle of creating customers who want rewards and will look anywhere to obtain them. With loyalty cards and programs reaching a saturation point. Software, card programs, and loyalty schemes are the tools of customer loyalty programs but they aren't the essence of loyalty. To build loyalty, you must earn it. Look at these 8 ways to earn more customer loyalty for business . A mere 5 % increase in customer retention can result in a 75% increase in customer value according to Fred Reich held, author of "Loyalty Rules". Managing Customer Loyalty
12

What you cant measure you cant manage, Peter Drucker, management guru, has said. But measuring the behavior of individual customers, and relating it to the behavior of all your other customers soon becomes an impossible task as your customer base expands. One-to-one knowledge is important (and part of Loyalty Builders analysis). But while customers appreciate being treated as individuals, they nearly always have common needs. If youre not able to segment your customer base in terms of characteristics they share, you have virtually no hope of creating an efficient, affordable marketing program. Measurement, traditionally, has meant dividing a population into separate buckets based on demographics and attitudes. Loyalty Builders' methodology, however, segments customers by behavior and generates quantitative measures of loyalty based on that behavior. Measuring actual purchases, rather than age, zip code, gender, ethnicity or other demographic, enables you manage marketing efforts based on the messages customer purchase behavior is sending. You develop advertising, marketing, and sales efforts based on your customers realities. Good measurement will spot customers youre at risk of losing, and identify customers who are becoming better customers information that will help you manage customer relationships more effectively.

13

How loyalty can be implemented


In order to implement the loyalty program in an organization, one needs to follow five steps listed below: Step 1: Observation This is the stage of accumulating all information possible about customers from many disparate sources, including: Purchase records and history Costs associated with servicing each customer

Demographic information

The share of Wallet or of spending that each customer gives. Step2: Calculating inertial CLV (Customer lifetime value) Determining contribution to profit from each customer (projected purchases minus anticipated costs of serving), It is called as inertial CLV as the figure represents the current status. At the same time it provides a convenient metric by which customers can be segmented for the next step. Step 3: Selection

14

After using the inertial CLV the customers are differentiated into three customer types like the Desired Customers, Breakeven Customers and costly Customers. The ratio of costly customer should not be more than 15% in the organization; otherwise it may affect the bottom line. So there has to be good balance between these three categories of customers to maintain a good financial health of the organization. Step 4: Prioritization In this stage company should divide each of these three customer groups in to pairs like low share of spending and high share of spending and determine which customers to focus for developmental efforts after knowing their share of current spending. The strategies followed in this stage are as: Improving companies financial gains by reducing servicing cost for low-share costly customers and moving them to the status of low-share break-even customers. Improving financial condition of the company by increasing low- share costly customers share of spending and by advancing them to high- share Breakeven Customers. Improving financial condition of the company by controlling offers for lowshare Break-even customers, reducing servicing costs and moving them to low- share Desired Customers.

15

Improving financial condition of the company by increasing share- of spending and controlling servicing cost of low-share Break-even customers and advancing them to high-share Desired Customers. Improving financial condition of the company by increasing the share of spending of low-share Desired Customers and evolving them into high-share Desired Customers. Divest the low-share Costly customers and low-share Breakeven Customers whose purchasing behavior can not be improved. Step 5: Leveraging In the above each strategy requires moving as many customers as possible from one status to another, but still there are some leveraging tools which must be taken into consideration like brand equity, value equity, relationship Equity and satisfaction. Attitudes of customers towards brand, its communications, its associations with community events etc. constitute brand equity. Similarly perceptions about quality, price and convenience constitute value equity. Various types of loyalty program comprise relationship equity and satisfaction with the brand make up satisfaction these are the leveraging tools.

Different Loyalty programs in different convenience stores


Loyalty programs are structured marketing efforts that reward, and therefore encourage, loyal buying behavior behaviour which is potentially of benefit to the firm. In marketing generally and in retailing more specifically, a loyalty card, rewards card, points card, or club card is a plastic or paper card,
16

visually similar to a credit card or debit card, which identifies the card holder as a member in a loyalty program. Loyalty cards are a system of the loyalty business model. In the United Kingdom it is typically called a loyalty card, in Canada a rewards card or a points card, and in the United States a discount card, a club card or a rewards card. Cards typically have a barcode or magistrate that can be easily scanned, and some are even chip cards. Small keying cards which serve as key fobs are often used for convenience in carrying and ease of access. A retail establishment or a retail group may issue a loyalty card to a consumer who can then use it as a form of identification when dealing with that retailer. By presenting the card, the purchaser is typically entitled to either a discount on the current purchase, or an allotment of points that can be used for future purchases. Hence, the card is the visible means of implementing a type of what economists call a two-part tariff. The card issuer requests or requires customers seeking the issuance of a loyalty card to provide a usually minimal amount of identifying or demographic data, such as name and address. Where a customer has provided sufficient identifying information, the loyalty card may also be used to access such information to expedite verification during receipt of cheques or dispensing of medical prescription preparations, or for other membership privileges (e.g., access to a club lounge in airports, using a frequent flyer card).

Ten Tips to Build Customer Loyalty

17

The key to a successful business is a steady customer base. After all, successful businesses typically see 80 percent of their business come from 20 percent of their customers. Too many businesses neglect this loyal customer base in pursuit of new customers. However, since the cost to attract new customers is significantly more than to maintain your relationship with existing ones, your efforts toward building customer loyalty will certainly payoff. Ten ways to build customer loyalty:
1. Communicate. Whether it is an email newsletter, monthly flier, a reminder

card for a tune up, or a holiday greeting card, reach out to your steady customers.
2. Customer Service. Go the extra distance and meet customer needs. Train the

staff to do the same. Customers remember being treated well.


3. Employee Loyalty. Loyalty works from the top down. If you are loyal to

your employees, they will feel positively about their jobs and pass that loyalty along to your customers.
4. Employee Training. Train employees in the manner that you want them to

interact with customers. Empower employees to make decisions that benefit the customer. 5. Customer Incentives. Give customers a reason to return to your business. For instance, because children outgrow shoes quickly, the owner of a childrens shoe store might offer a card that makes the tenth pair of shoes half price. Likewise, a dentist may give a free cleaning to anyone who has seen him regularly for five years.
18

6. Product Awareness. Know what your steady patrons purchase and keep these items in stock. Add other products and/or services that accompany or compliment the products that your regular customers buy regularly. And make sure that your staff understands everything they can about your products. Read Know Product Basics for more. 7. Reliability. If you say a purchase will arrive on Wednesday, deliver it on Wednesday. Be reliable. If something goes wrong, let customers know immediately and compensate them for their inconvenience. 8. Be Flexible. Try to solve customer problems or complaints to the best of your ability. Excuses? Such as "That's our policy"? Will lose more customers then setting the store on fire. Read our 60-Second Guide to Managing Upset Customers for more information. 9. People over Technology. The harder it is for a customer to speak to a human being when he or she has a problem, the less likely it is that you will see that customer again. 10. Know Their Names. Remember the theme song to the television show Cheers? Get to know the names of regular customers or at least recognize their faces.

Mistakes
Strong customer service is a valuable asset, especially in today's high-techoriented, increasingly impersonal business world. Therefore, if you are aware of common customer service mistakes and avoid them, you may strengthen your position in a competitive market.
19

1. Untrained staff: It does not matter whether you have two or 200 employees, you must train everyone in the art of customer service. Customers and clients will not tolerate rudeness, incorrect information, or apathy on the part of your staff. Not training the staff and this should include everyone is a major mistake made by too many businesses. 2. Trying to win the argument: It is worth remembering that it takes five times more effort and cost to gain one new customer as it takes to maintain one current customer. Therefore, to win an argument and lose a steady customer, you are punishing your business. 3. Inaccessibility: If you want to see repeat business, you need to be accessible to your customers. If it is difficult to contact the customer service department or speak to a manager, customers may not return. Many businesses, especially on the Internet, try to maintain a distance from their customers. This rarely works. Check out Online Customer Service Basics for tips on a positive online customer service experience. 4. Standing by your policy: While the clerk who is scared that he or she may lose their job can say "That's our policy," customer service representatives and managers should be able to find ways to bend policies to build customer relationships. The phrase "If I do that for you, I'll have do to it for everyone," is one of the fastest way to lose customers. 5. Unfulfilled promises: If you promise a customer that something would be ready by Thursday, then it should be there by Thursday. When you cannot make this happen, do not make excuses; the only words you need to

20

remember are "We're sorry," backed up by an extra effort to make the customer happy. 6. Poor record keeping: If you keep referring to Mrs. Johnson of Jackson Avenue as Mrs. Jackson of Johnson Avenue, you can be sure that she will not continue to do business with your company. While any business can make a mistake, constantly misspelled names and similar foul-ups do not encourage regular customers to return. 7. The runaround: When someone calls for customer service, they expect a service representative to be the first or second person to whom they speak, following a receptionist perhaps. People do not like being passed from one person to another or sent from one department to another in a retail location. Passing the buck is akin to passing the customer on to your competitor. 8. Email/online cop outs: Since email is impersonal, many businesses send a form letter or a programmed response that answers 10 common FAQs, none of which may apply to a particular customer. Other businesses simply ignore customer complaints hoping that the customer will simply forget the issue. These are email cop outs, or excuses for not providing adequate customer service. It is very simple for a customer representative to respond to each inquiry in a timely fashion. 9. Failure to listen: Customer service representatives routinely do not listen closely to customers. Typically they respond with an answer that does not match the problem because they were not paying attention. Customer relation

21

representatives need to be trained, particularly in the art of listening and even taking notes. 10. Forgetting the basics: "Please," "thank you," "we're sorry about the inconvenience," and so on are simple phrases that cost nothing, take little effort, and win big points.

OBJECTIVES OF THE STUDY


The main objective of any kind of research is to understand the reality behind a phenomenon. It involves a systematic investigation involved to add to the available information through scientific procedures. The project undertaken by me as a part of my M.B.A. course is an effort made to study of convenience
22

stores with emphasis on effect of loyalty programmes on customers of convenience store. To Study the Effect of Customer Loyalty Programmes in different Convenience Stores in Gurgaon. To study the Customer Loyalty Programs in different convenience stores. To know that how they attract to the Customers for purchasing in the convenience stores. To know the Effect of Loyalty program on customers.

Hypothesis Testing:
Test: Chi square is the most appropriate test. Level of Null hypothesis: H0 Alternative hypothesis: H1
23

H0= There is no significance association between Age and Switching the preference of convenience store H1= There is significance association between Age and Switching the preference of convenience store. Statistical significance () = 5% level (Table value9.488) Degree of freedom= (r-1) (c-1) = (5-1)(2-1)= 4 2= (F0-Fe) 2 /Fe Critical test value: For =0.5 and d.f = 16, the critical test value is 6.9739 Table 2 Classification of Age and switching the preference of convenience store Age/ Factors 15-20 20-25 25-30 30-35 35-40 Total Yes 1 6 12 4 2 25 No 3 5 2 1 2 13 Total 4 11 14 5 4 38

Solution: let us take the hypothesis that there is no association between age and switching of convenience store preference. On the basis of this hypothesis the expected frequencies corresponding to (a) and (b) are: 11= 25*4/38=2.63

24

12= 13*4/38=1.36 Table 2.1 Expected frequency

2.63 7.23 9.21 3.28 2.63

1.36 3.76 4.78 1.71 1.36

Table 2.2 Applying X2 test: O E (O-E)2 (OE)2/E 1 6 12 4 2 3 5 2 1 2.63 7.23 9.21 3.28 2.63 1.36 3.76 4.78 1.71 2.6569 1.5129 7.7841 0.5184 0.3969 2.6896 1.5376 7.7284 0.5041 1.0102 0.2092 0.8451 0.1580 0.1509 1.9776 0.4089 1.6182 0.2947
25

1.36

0.4096 Total CV

0.3011 6.9739

Source: Field response data X2= (O-E) 2/E= 6.9739 V= (r-1) (c-1) = (5-1) (2-1) = 4 For V=4, X20.05= 9.488. The calculated value of X2 is less than table value. The hypothesis is accepted. Hence, there is no association between age and switching the preference of convenience store. Interpretation: Hypothesis testing is showing that there is no relationship between Age and Switching of preference convenience store. So any person can switch their brand choice.

LIMITATIONS OF THE STUDY


1. Although fullest capacity and efforts have been made but limitation of time and ignorance of some respondent and limited resources was faced.

26

2. Non- availability and restricted access to the various confidential information of the organization has also proved as limitation. 3. Non- responsiveness of some respondent has also served as a limitation to the application to the findings. 4. No proper knowledge of all statistical tools and their use. 5. The area chosen for the research in gurgaon even the whole areas of cities not covered completely. 6. Lack of response of respondents. People are not interested to giving their personal opinion. 7. People are not fully aware about the convenience stores.

27

Chapterization
Chapter 1: This cheapter contains the information about the introduction of the topic. Chapter 2: This chapter contains the information about the research Methodolory and profile of the organization. Chapter 3: This chapter cantains the information about the micro analysis means objectives wise analysis. Chapter 4: This chapter contains the information about the macro analysis and this analysis is important as it cantinas the conclusion of this study also. Chapter5: This chapter contains the information about the summary of major observation & Recommendation.

28

NOTES (REFERENCES)

www.wikpedia.com www.ril.com

www.google.com

www.projectsparadise.com www.scribd.com www.spencer.com

29

30

INDUSTRY PROFILE
Introduction of Retail Industry
Retailing by its very nature is a dynamic industry. The past decade has been one of turmoil and transition in the world. Competition heated up and consumer spending cooled down. New giants emerged and erstwhile leaders faded. Entire industry segments emerged only to make way for new ones yet again. The emergence of the 24/7 culture has had a very strong impact on the changes occurring in many industries. Each passing year has new and far reaching effects on the retail industry. And this is not surprising considering that retail is an industry which is all about change. The next ten years will undoubtedly bring about even more changes than the last decade. Retail is the final stage of any economic activity. By virtue of this fact retail occupies an important place in the world economy. Retailing includes all the activities involved in selling goods or services to the final consumers for personal non-business use. A retailer or retail store is any business enterprise whose sale volume comes primarily from retailing.

31

Any organization selling to final consumers whether it is a manufacturer wholesaler or retailer is doing retailing it does not matter how the goods or services are sold (by person, mail, telephone, vending machine or internet or where they are sold- in a store on the street or in the consumers home )

Global Retail Market


The emergence of the global marketplace and the rise of the 24/7 economy has fuelled the growth of retail across the world. The global retailing industry as understood under the global industry classification standard (GICS) grew by 5.5% in 2004 to touch $9498.5 billion. The compounded annual growth rate for the period 2000-2004 was 3.9%. The United States of America dominates the world retail market space and accounts for 32.3% of the global retailing group. Europe generates a further 30.8% of the groups value, Asia Pacific 25.6% and the rest of the world 11.20%. By the year 2009, the industry is forecasted to have a value of $12104 billion; an increase of 27.4% since 2004.It is interesting to note that the key 250 retailers in the world alone accounted for $2.6 trillion, which itself is about one third of the marketplace in retail. The significance of retail is apparent not only from its contribution to various economies but also by the level of employment generate by the industry. In India where organized retail is just beginning to make its presence felt it already contributes close to 6-7% of the employment. In the developed markets organized retail controls a significantly higher portion of trade ads compared to a country like India. Food and grocery constitutes the largest segment of retailing and also forms a significant part of the trade of the key global retailers.

Challenges facing global retailers:

32

Till a few years ago the American economy fuelled economic growth in many parts of the world. However the recent economic slowdown there has forced many retailers to start looking at other economies. Rising fuel prices have also had a negative effect on the rapid expansion of the trade in various parts of the world. Retailers at a global level are reality which has to be understood and faced by retailers. The emergence of New markets: Asia especially china and India are the emerging marketplace. The technological transportation and industrial revolution of the past two decades have changed much of that. Increasing urbanization in both the markets has fast emerged as an important factor in the rise of these nations as important emerging markets. Together china and India or china as they are now termed is estimated to see their GDP rise to $6 trillion by the year 2020. They will largely exporter of goods and services with a 25%+ share. Few marketers and retailers can hence ignore such market. The Empowered Consumer: Retaining the consumer is far more difficult today than it was a decade ago. Consumer lifestyles and demographics are changing rapidly. Spending power is increasing and technology is aiding consumers in making sound shopping decisions. Given the increased amount of choice in terms of products and formats, consumers now demand more for less from the shopping experience: more quality, choice, consistency, convenience and service, for less money, time, effort and risk. Technology enabled efficiencies: Technology has enabled businesses and consumers to build efficiencies on the basis of the ability to receive and transmit data at a fast speed. Retailers will rely on technology to establish links with consumers through electronic retailing and customer relationship marketing.

33

The rise of the e- age: The emergence of internet retailing or e- tailing as it is popularly known has been a key driver of change in retail. The increase in the number of internet users not only in the developed markets but also globally, has placed us demands on retailers.

Retail Industry in India


Retail is India's largest industry. It accounts for over 10 per cent of the India's GDP and around eight per cent of the employment. Retail sector is one of India's fastest growing sectors with a 5 per cent compounded annual growth rate. India's huge middle class base and its untapped retail industry are key attractions for global retail giants planning to enter newer markets. Driven by changing lifestyles, strong income growth and favorable demographic patterns, Indian retail is expected to grow 25 per cent annually. It is expected that retail in India could be worth US$ 175-200 billion by 2016. The organized retail industry in India had not evolved till the early 1990s. Until then, the industry was dominated by the un-organized sector. It was a sellers market, with a limited number of brands, and little choice available to customers. Lack of trained manpower, tax laws and government regulations all discouraged the growth of organized retailing in India during that period. Lack of consumer awareness and restrictions over entry of foreign players into the sector also contributed to the delay in the growth of organized retailing. Foundation for organized retail in India was laid by Kishore Biyani of Pantaloon Retails India Limited (PRIL). Following Pantaloon's successful venture a host of Indian business giants such as Reliance, Bharti, Birla and others are now entering in the market. A number of factors are driving India's retail market. These include: increase in the young working population, hefty pay-packets,
34

nuclear families in urban areas, increasing working-women population, increase in disposable income and customer aspiration, increase in expenditure for luxury items, and low share of organized retailing. Indias retail boom is manifested in sprawling shopping centers, multiplex- malls and huge complexes that offer shopping, Entertainment and food all under one roof. But there is a flip side to the boom in the retail sector. It is feared that the entry of global business giants into organized retail would make redundant the neighborhood kiryana stores resulting in dislocation in traditional economic structure. Also, the growth path for organized retail in India is not hurdle free. The taxation system still favours small retail business. With the intrinsic complexities of retailing such as rapid price changes, constant threat of product obsolescence and low margins there is always a threat that the venture may turn out to be a loss making one. A perfect business model for retail is still in evolutionary stage. Procurement is very vital cog in the retail wheel. The retailer has to fight issues like fragmented sourcing, unpredictable availability, unsorted food provisions and daily fluctuating prices as against consumer expectations of round-the-year steady prices, sorted and cleaned food and fresh stock at all time. Trained human resource for retail is another big challenge. The talent base is limited and with the entry of big giants there is a cat fight among them to retain this talent. This has resulted in big salary hikes at the level of upper and middle management and thereby eroding the profit margin of the business. All the companies have laid out ambitious expansion plans for themselves and they may be hampered due. Lack of request skilled manpower. But retail offers tremendous for the growth of Indian economy. If all the above challenges are tackled prudently there is a great potential that retail may offer employment opportunities to millions living in small town and cities and in the process distributing the benefits of economic boom and resulting in equitable growth.
35

Challenges to retail development in India


Organized retail in India is little over a decade old. It is largely an urban phenomenon and the pace or growth is still slow. Some of the reasons for this slow growth are: Retail not being recognized as an industry in India- Lack of recognition as an industry hampers the availability of finance to the existing and new players. This affects growth and expansion plans. The high costs of real estate- real estate prices in some cities in India are among the highest in the world. The lease or rent of the property is one of the major areas of expenditure high lease rentals eat into the profitability of a project. High stamp duties- in addition to the high cost of real estate the sector also faces very high stamp duties on transfer of property which varies from state to state. The presence of strong pro-tenancy laws makes it difficult to evict tenants. The problem is compounded y problems of clear titles to ownership, while at the same time land use conversion is time consuming and complex as are the legal processes for settling of property disputes. Lack of adequate infrastructure- poor roads and the lack of cold chain infrastructure hamper the development of food and fresh grocery retail in India. The existing supermarkets and food retailers have to invest a substantial amount of money and time in building a cold chain network.

36

Multiple and complex taxation system- the sales tax rates vary from state to state while organized players have to face a multiple point control and tax system there is considerable sales tax evasion by small stores.

A trend of organized retailing


The entire apparel industry today is valued at approximately Rs 6,000 crore, within which the branded apparel market is worth Rs 2,000 crore. The market has been exponentially growing at about 15 per cent every year. Changing value equation across various product categories due to the technological/supply-chain changes can shift consumer preferences for spending very quickly. Praline, a pioneer in the field of sports leisurewear, is in fact is eyeing a 60-70 per cent growth in the next two years. We operate through 30 exclusive stores and 500 multi-brand outlets in the country. We want to add 20 more stores in two years, nine of which would be in cities such as Pune, Hyderabad, Nagpur and Mysore. The policy liberalization, privatization, globalization has welcomed foreign companies to enter in to retailing sector. Shoppers stop was the first which opened retail stores in Mumbai (INDIA). With the organized retail segment growing at the rate of 25-30 per cent per annum, revenues from the sector are expected to triple from the current US$ 7.7 billion to US$ 24 billion by 2010. The share of modern retail is likely to grow from its current 2 per cent to 1520 percent over the next decade, analysts feel. No wonder a heavyweight like the Reliance group is planning to do a Wal-Mart in India. In the next couple of years, India will see at least two Indian retail businesses attaining the magic figure of US$ 218 million in sales. Several others are
37

expected to attain a critical mass as growth in the industry picks up momentum. This will be driven by two key factors: Availability of quality real estate and mall management practices.

Consumer preference for shopping in new environment.

The world's largest retailer Wal-Mart has huge plans for India.

New York-based high-end fashion retailer Saks Fifth Avenue has tied up with
realty major DLF Properties to set up shop in a mall in New Delhi.

Classification of Retail Formats


Store Based Retailing:
1. On the basis of Ownership 1.1. Independent Retailer

An independent retailer is one who owns and operates only one retail outlet. Such an outlet is managed by the owner & proprietor and a few other local hands or family members working as assistants in the shop. Many independent stores tend to be passed on from generation to generation. 1.2. A chain retailer or a corporate retail chain

When two or more outlets are under a common ownership it is called a retail chain. These stores are characterized by similarity in the merchandise offered to the consumer the ambience advertising and promotions. e.g.; Wills sports (ITC), Arrow (Arvind Mills). The biggest advantage that a chain retailer has is that of the bargaining power that he
38

can have with the suppliers. Cost effectiveness is also possible in advertising and prom Franchising. A franchise is a contractual agreement between the franchiser and the franchisee which allows the franchisee to conduct business under an established name as per a particular business format in return for fee or compensation. Franchising can be: A product or trade mark franchise- Where the franchisee sells the products of the franchiser and operates under the franchisers name. Archies stores which have come up across India are an example of product franchising. A business format franchise- Mc Donalds is perhaps one of the best examples of business format franchising. 1.3. Leased Departments

These are also termed as shop-in-shop. When a section of a department in a retail store is lease rented to an outside party it is termed as a leased department. A leased department within a store is a good method available to the retailer for expanding his product offering to the customers. In India, many larger department stores operate their perfumes and cosmetics counters in this manner. A new trend emerging in Indian retail is that of larger retail is that of larger retail chains setting up smaller retail outlets in high traffic areas like malls, department stores multiplex and public places like airports and railway stations. These stores display only a fraction of the merchandise/products sold in the anchor stores. Their main aims to be available to the consumer near his place of work or home. 1.4. Consumer Co-operatives

39

A consumer co-operative is a retail institution owned by its member customers. A consumer co-operative may arise largely because of dissatisfied consumers whose needs are not fulfilled by the existing retailers. As the members of the co-operative largely run these co-operative in India are the Sahakari Bhandars and Apna bazaar shops in Mumbai and super bazaar in Delhi. 2. Classification on the basis of the merchandise offered 2.1. Convenience stores

These are relatively small stores located near residential areas- they are open for long hours seven days a week and offer a limited line of convenience products like eggs, bread, milk, etc. The food marketing institute defines this format as a small local store selling mainly groceries, open until late at night or even 24 hours per day and is something abbreviated to c-store. The store ranges from 3000 to 8000 sq ft and they are targeted at customers who want to make their purchases quickly. 2.2. Supermarkets

These are large, low, cost low margin, high volume, self- services operations designed to meet the needs for food, groceries & other non-food items. This format was at the forefront of the grocery revolution and today it controls more than 30% of the grocery market in many countries. The most widely used definition is a store with a selling area of between 400 sq m and 2500 sq m, selling at least 70% foodstuffs and everyday commodities. Internationally the size of these stores varies from 8000 to 20000 square feet. 2.3. Hypermarket

40

The word hypermarkets derived from the French word hypermarket, which is a combination of a supermarket and a department store. This retail business format has evolved since its invention by retailer Carrefour in Sainte Genevieve des bois near Paris in the year 1963. A retail store with a sales area of over 2500 sqm with at least 35% of selling space devoted to non- grocery products is termed as a hypermarket. The stores occupy an area which ranges from anywhere between 80000 to 220000 sq ft and offer a variety of food and non food products like clothes, jewelers, hardware, sports equipment, cycles ,motor accessories, books, CDs, DVDs, videos, TV, ,electrical equipment and computers and combine supermarket, discount & warehouse retailing principles. 2.4. Specialty stores

A store specializing in a particular type of merchandise or single product of durable goods that is home furniture and household goods, consumer electronics and domestic electrical appliances or a range of normally complementary durable good product categories is termed as a specialty store. Such a business model is characterized by a high level of service or product information being made available to customers. 2.5. Department stores

A department store is a large scale retail outlet often multi-leveled whose merchandise offer spans a number of different product categories. Department stores had a clear market position as universal providers. General stores eventually became department stores as small towns became cities. The most prominent department stores emerged from small shops. The department store is also largely responsible for the standard store design seen today. The store layouts made shopping easier for consumers irrespective of their
41

social or economic background. The size of an average Indian department store varies from 20000 to 40000 sq ft and stocks anywhere between 50000 to 100000 skus. Some of the national players are shoppers stop, globus, Westside and lifestyle, while others like Akbar Allys. 2.6. Off price retailers

Here the merchandise is sold at less than retail prices. Off price retailers buy manufacturers seconds overruns and off seasons at a deep discount. The merchandise may be in odd sizes unpopular colors or with minor defects. Off price retail stores may be manufacturer owned or may be owned by a specialty or departmental store. These outlets are usually seen by the parent company as means of increasing the business. E.g. Pantaloon factory outlets, levys factory outlets etc.

2.7.

Discount department stores

Discount department stores ranging from 80000 sq. ft. to 130000 sq. ft. offer a wide variety of merchandise including automotive parts and services, house wares, home furnishings, apparel and beauty aids.

2.8.

Category killers

A category killer is a specialty retailer who offers a very large selection in the chosen product category and economical prices. Category killers are successful because they
42

focus on one category they stock deep, they buys and sell cheap and finally they dominate the category. 2.9. Outlet stores

Outlet stores ranging from 20000 sq. ft. are typically the discount arms of major department stores such as Nordstrom Rack and J.C.Penny Outlet. 2.10. Warehouse clubs

Warehouse clubs ranging from 104000 sq. ft. to 170000 sq. ft. offer a variety of goods in bulk at wholesale prices. However warehouse clubs provide a limited number of product items (5000 or less). This group includes retailers such as Costco Wholesale, Pace and Sams club. 3. Other formats 3.1. Super warehouse store

A hybrid warehouse superstore with 50000 plus items and the full range of service departments, featuring high- quality perishables and reduced prices. 3.2. Limited assortment store

A low- price outlet with minimal service and fewer than 2000 items. It features numerous private label products and is popular among food stamp recipients, seeking to stretch their limited dollars. 3.3. Supercenter

43

A large food-drug combination store and mass-merchandise. These average more than 170000 sq. ft. and typically devote up to 40% of the store to grocery items which are often sold at loss leader prices. 3.4. Wholesale club

A retail wholesale hybrid that offers consumers and small business a limited and economical selection of food and non food products. These measures about 120000 sq. ft. 60-70% of the space are devoted to bulk sizes of both grocery and GM/HBC products. 3.5. Dollar stores

A traditional format that sells 20-80% of groceries and other consumables products at discounted prices.

2. Non- store Retailing


2.1. Direct selling

Direct selling involves making a personal contact with the end consumer at his home or place of Wouk, cosmetics, jewellery, food and nurtutuinal products, home appliances and educational materials are some of the products sold in this manner. 2.2. Direct response marketing

Direct response marketing includes various non personal forms of communication with the consumer like: 2.2.1. Catalogue retailing or Mail order. 2.2.2. Television retailing and E- tailing.

44

Mail order retailing/catalogue retailing This form of retailing eliminates personal selling and stores operations. Appropriate for specialty products the key is using customer databases to develop targeted catalogs that appeal to narrow target markets. The basic characteristic of this form of retailing is convenience. Television shopping Asian sky shop was among the first to introduce television shopping in India. In this form of retailing he product is advertised on television and details about the products features, price and things like guarantee are explained. 2.3. Electronic shopping

It allows the customer to evaluate and purchase the products from the comfort of his home. The success of this form of retailing largely depends on the products that are offered and the ability of the retail organization to deliver the product on time to the customer. 2.4. Service Retail

Put simply services retail involves the retail of various services to the end consumer. For the purpose of this text key services have been identified as: 2.5. 2.6. 2.7. Retail Banking Car Rentals Providers of various services like electricity, gas etc.

45

COMPANY PROFILE
Convenience Stores

These are relatively small stores located near residential areas- they are open for long hours seven days a week and offer a limited line of convenience products like eggs, bread, milk, etc. The food marketing institute defines this format as a small local store selling mainly groceries, open until late at night or even 24 hours per day and is something abbreviated to c-store. The store ranges from 3000 to 8000 sq ft and they are targeted at customers who want to make their purchases quickly. Retailing involves understanding customers, their needs and expectations. Satisfying customers expectations while maintaining wafer-thin margins is heroic task for most of the retailers. Retailers job is to stimulate customers to visit his store and buy product. Promotions are often used as pull strategy to encourage purchase, but guaranteeing product availability during promotions has proved to be challenging task for many retailers. Often, past data is utilized to forecast demand using high-end ERP applications and inventory management tools. For all of the capabilities that have been built into software applications, it still requires a merchants touch to take that information, interpret and utilize it to generate sales and gross profit increases. It is, therefore, critical for retailers to remember that these applications are tools, not "solutions" as they are frequently billed. The key advantages of convenience stores in India are:

46

India ranks 5th on global retail development index. India is the 2nd fastest growing economy of the world.

India is poised to become the 3rd largest economy in terms of GDP in next few years. India ranks high among the top 10 FDI destinations of the world.

India is the fastest growing tourist market in Asia.

World Bank states that India will become the world's 2nd largest economy after China by 2050. India has a stable and investor-friendly central government at the helm of affairs. It has introduced Value Added Tax (VAT) and tax reforms.

It has a high degree of professionalism and corporate ethics.

It has excellent investment opportunities in the retail sector and allied markets. India is to invest US$ 130 billion for the development of infrastructure by 2010. India will attract US$ 10 billion FDI for infrastructure development by 2008.

It has bullish stock markets.

47

Hordes of foreign investors are thronging in to invest in Indian retail markets.

Highly educated, English speaking, young workforce.

Vibrant and multi-cultured cities.

Huge opportunity exists in semi-rural and rural areas.

Till date, India is the 2nd largest employer for the huge semi-skilled Indian population. Offers highest shop density in the whole world - has almost 1,20,000 shops across the length and breadth of the country. In a nascent stage of development as an organized industry. Types of convenience stores found in India are: Specialty Stores Supermarkets

Franchisee Outlets

Hypermarket Skeptics opine that liberalizing the Indian retail industry would jeopardize the income of small retailers. However, small-time retailers and vendors also stand to gain from the launch of convenience stores in India. Indian and international market leaders are flocking to the Indian market to cash in on the specialty stores

48

retail boom. Some industry leaders operating in other sectors are also diversifying into the specialty stores sector.

Reliance Fresh

Reliance Fresh is the retail chain division of Reliance Industries of India


which is headed by Mukesh Ambani. Reliance has entered into this segment by opening new retail stores into almost every metropolitan and regional area of India. Reliance plans to invest Rs 25000 crore in the next 4 years in their retail division and plans to begin retail stores in 784 cities across the country. The Reliance Fresh supermarket chain is RILs Rs 25,000 crore venture and it plans to add more stores across different g, and eventually have a pan-India footprint by year 2011. The super marts will sell fresh fruits and vegetables, staples, groceries, fresh juice bars and dairy products and also will sport a separate enclosure and supply-chain for non-vegetarian products. Besides, the stores
49

would provide direct employment to 5 lakh young Indians and indirect job opportunities to a million people, according to the company. The company also has plans to train students and housewives in customer care and quality services for part-time jobs.

Reliance Fresh recently (24th Jan, 2007) opened several "Fresh" outlets in
Chennai, New Delhi, Hyderabad, Jaipur, Mumbai, Chandigarh, Ludhiana increasing its total store count to 40. Reliance is still testing its retail concepts by controlled entry beginning in the southern states According to Deccan Herald, the company is planning on opening new stores with store-size varying from 1,500 sq ft to 3,000 sq ft, which will stock fresh fruits and vegetables, staples, FMCG products and dairy products. Each store is said to be within a radius of 12 km of each other, in relation to the concept of a neighbour store. However, this is only the entry roll-out that the company has planned. Bangalore is said to have 40 stores in all by the end of the year. In a dramatic change due circumstances prevailing in UP, West Bengal and Orissa, It was mentioned recently in News Dailies that, Reliance Retail is moving out stocking. Reliance Retail has decided to minimize its exposure in the fruit and vegetable business and position Reliance Fresh as a pure play super market focusing on categories like food, FMCG, home, consumer durables, IT, wellness and auto accessories, with food accounting for the bulk of the business. The company may not stock fruit and vegetables in some states, Orissa being one of them. Though Reliance Fresh is not exiting the fruit and vegetable business altogether, it has decided not to compete with local vendors partly due to political reasons, and partly due to its inability to create a robust supply chain. This is quite different from what the firm had originally planned. When the first Reliance Fresh store opened in
50

Hyderabad last October, not only did the company said the stores main focus would be fresh produce like fruits and vegetables at a much lower price, but also spoke at length about its farm-to-fork theory. The idea the company spoke about was to source from farmers and sell directly to the consumer removing middlemen out of the way. Reliance may exit some businesses if the business does not increase by March 2008. Reliance Fresh, Reliance Mart, Reliance Digital, Reliance Trends, Reliance Footprint, Reliance Wellness, Reliance Jewels, Reliance Timeout and Reliance Super are various formats that Reliance has rolled out. RIL has already said that it will invest close to Rs 25,000 crore over the next five years in the retail business. The company plans to establish 4,000 retail outlets across various formats by then, and is eyeing sales of Rs 1,00,000 crore over the five-year period from the retail business. Besides Reliance Fresh, the company also plans to launch larger format stores called "Feel Fresh Plus" which will be spread over 10,000-15,000 sq ft. The Fresh Plus stores will stock fruit and vegetables as well as apparel, consumer electronics, FMCG items and even medicines. From Hyderabad, these stores will travel to Mumbai and Delhi where Reliance has identified up to 80 locations each. But even as the retail debut kickoff with fruit and vegetables, it seems the company is doing a rethink on whether to get into the larger formats such as hypermarkets and supermarkets. These two formats require over 1 lakh sq ft of space and may not come up at prime city locations. Instead, Reliance is contemplating tapping alterative sites such as the SEZs for opening hypermarkets. The retail rush

51

11 Reliance Fresh neighbourhood convenience stores will be launched first in Hyderabad. These stores will be set up soon in Mumbai and Delhi where Reliance has identified up to 80 locations each. RIL is also setting up Ranger Farms -- outlets that will specifically service vegetable vendors. Ranger outlets will open at 2 a.m. and continue selling produce to vendors till 9 a.m. Company plans to establish 4,000 retail outlets across various formats in the country Reliance fresh stores

Reliance Fresh is the retail chain division of Reliance Industries of India which is headed by Mukesh Ambani. Reliance has entered into this segment by opening new retail stores at Hyderabad on 3 November 2006. Reliance plans to invest 25000 crores in the next 4 years in their retail division and plans to begin retail stores in 784 cities across India. Reliance Fresh recently (24th Jan, 2007) opened 12 "Fresh" outlets in Chennai increasing its total store count to 40. Reliance is still testing its retail concepts
52

controlled entry in the company is planning on opening up 6 stores in Bangalore by the middle of February (2006) and an additional 7 stores by the end of February. The stores size would vary from 1,500 sq ft to 3,000 sq ft, which will stock fresh fruits and vegetables, staples, FMCG products and dairy products. Each store is said to be within a radius of 1-2 km of each other, in relation to the concept of a neighbour store. However, this is only the entry roll-out that the company has planned. Bangalore is said to have 40 stores in all by the end of the year. Reliance Retail announces the launch of its second Specialty store -Reliance Wellness. Following the successful launch of Reliance Fresh, Reliance Digital, Reliance Mart, Reliance Trends, Reliance Footprint, Reliance Jewels, Reliance I store, Reliance Timeout, Reliance Super across the country this is another format of stores from Reliance Retail. Reliance Wellness will offer Pre-emptive, Curative and Health & Beauty Solutions which will provide world class products all under one roof and also educate consumers on their health needs, thus enabling them to take charge of their health. Reliance Wellness brings a Unique assortment of best international and national brands such as H2O, Neutrogena, Muscletech, Olay, Sports Nutrition to name a few, in categories such as Nutrition, Sports Nutrition, Personal care & beauty, Cosmetics, Optical, OTC, Health Foods, Self Help Medical & Fitness Equipment. The assortment also includes alternate medicine, health books & music. Free Computerized Eye Testing service will be available in the stores. Reliance Wellness stores will provide shopping ambience matched with the best international wellness chains. The store has 15 highly skilled and trained customer service representatives including pharmacists and an optometrist. All Pharmacists are trained in Good Pharmacy practices. The
53

Reliance Wellness Stores key features includes Customer focused Initiatives like Medication Compliance Program where customers will be offered a reminder service which will facilitate convenient & on time replenishment of their health related products. The Store will showcase Wellness Events, Seminars, Workshops and Advisory camps on contemporary wellness issues like diabetes, hypertension, fitness, diet and nutrition, weight management and skin care (anti-ageing, anti-acne, etc).

Subhiksha Retail

Subhiksha is India's largest supermarket, pharmacy and telecom chain. Started in 1997 as a single store entity in South Chennai, it is now present nationally with 1000 outlets and spread across more than 90 cities. ICICI Venture Capital has a 24% stake in Subhiksha. Derived from the Sanskrit word, Subhiksham or "giver of all things good", Subhiksha was founded by Mr. R. Subramanian, an IITChennai & IIM-A alumni. His vision to deliver consistently better value to Indian consumers, has guided Subhiksha to deliver savings to all consumers on each and every item that they need in their daily lives, 365 days a year, without any compromise on quality of goods purchased. Subhiksha now has the pan

54

Indian presence with stores across Delhi, UP, Punjab, Haryana, Gujarat, Maharashtra, AP, Karnataka and TN. Today, it is a multi-location, professionally managed and vibrant organization that is poised to change the lives of millions of Indians, faster than ever before! Subhiksha is an Indian retail chain with more than 760 outlets selling groceries, fruits, vegetables, medicines and mobile phones. It was started and is managed by R Subramanian, IIM Ahmedabad alumni. He also plans to invest Rs.500 crore to increase the number of outlets to 2000 across the country by 2009. The name "Subhiksha" means prosperity in Sanskrit. It opened its first store in Thiruvanmiyur in Chennai in March, 1997 with an investment of about Rs. 5 lakh. The retail chain has seen a considerable growth by offering goods at cheaper rates and thereby increasing its customer base. It is also dubbed as India's largest retail chain. Subhiksha now has even opened Specialized Mobile shops called Subhiksha Mobile where mobiles are sold at a discounted price. Subhiksha is India's largest supermarket, pharmacy and telecom chain. Started in 1997 as a single store entity in South Chennai, it is now present nationally with 800 outlets and spread across more than 60 cities. ICICI Venture Capital has a 24% stake in Subhiksha. Derived from the Sanskrit
word, Subhiksham or "giver of all things good", Subhiksha was founded by Mr. R. Subramaniam, an IIT-Chennai & IIM-A alumni. His vision to deliver consistently better value to Indian consumers, has guided Subhiksha to deliver savings to all consumers on each and every item that they need in their daily lives, 365 days a year, without any compromise on quality of goods purchased. Subhiksha now has the pan Indian presence with stores across Delhi, UP, Punjab, Haryana, Gujarat, Maharashtra, AP, Karnataka and TN. Today, it is a multi-location, professionally managed and vibrant organization that is poised to change the lives of millions of Indians, faster than ever before!

55

Subhiksha offers discounts on all products. Everyday Home delivery of Fruits and Vegetables in select areas. All Subhiksha Supermarkets are open from 9 AM to 9 PM. In several areas our fruit and vegetable counters open from 7 AM onwards. Subhiksha, the Chennai based, a decade old, no frills, food, grocery, pharma and telecom, discount retail chain is gearing up to open 180 neighbourhood, convenience retail stores in the eight cities of the state of Maharashtra including Pune, Nasik, Aurangabad and Nagpur, Kolhapur, Sholapur and Sangli. Of these the lions share will go to Mumbai, which will have 100 of the 180 stores planned. 80 of the 100 Mumbai Subhiksha stores are slated to go on stream by mid-January, 2007, reports PTI. The rapidly-growing retail chain has already crossed the 450-store mark across five states in the country and is currently occupying retail space of more than one million square feet. We are targeting a 1,000-strong retail network by end-2007. We are looking at providing customers across the country with a viable smart shopping option. R Subramaniam, Managing Director, Subhiksha Trading Services, said today. At an average cost of Rs. 50 lakhs per outlet, Subhiksha will invest Rs. 500 crores to expand its network to 1000 outlets. Subhiksha is targeting a turnover of Rs. 3,500 crore during 2007. With the implementation of our expansion in Maharashtra, we will complete our 600-store target. We will shortly activate Phase II of our expansion plans by foraying into the north and east including Chandigarh, Punjab, Madhya Pradesh, Uttar Pradesh, Haryana and West Bengal he said. Phase II involves Rs 200-crore investment in opening 400 stores. The rapidly expanding chain, which claims to be the biggest chain in the country, is
56

following the carpet bombing strategy for its expansion, wherein, to create maximum impact, it simultaneously launches a cluster of stores in a given geography. It may be recalled that only a few months back Subhiksha to finance its ambitious expansion drive had raised Rs. 300 crore. It has also recently raised Rs. 80 crore through the rights issue. Currently, ICICI venture Capital holds 24% in the equity capital of Subhiksha. A number of retailers say that they offer low prices. How is Subhiksha different? Some dealers offer discounts on a few products for some days. What you buy at full price in these shops one day can be available for a discount next day and then again go back to full price after 2/3 days. But at Subhiksha - discounts are offered on all products, everyday. Our discounts do not change day after day. So if we are offering 10% discount on some product, it will remain 10% today, after one month and after 3 months too. So, you can always be sure that whenever you want to buy, you don't have to check prices with anybody else. It is possible that some retailers will offer you discount on 10-20 products for some days. But at Subhiksha, the same lower prices are maintained on 100% of the products all 365 days of the year.

57

Loyalty programmes in Reliance fresh

1. Membership card 2 Purchase offers 3. Mobile service 4. Insurance facility


58

5. Home Delivery 6. Feedback facility 1. Membership card: Provide membership card under the name of Reliance One. By using this card, for every Rs 100/- that you spend, you earn 1 reliance point .you can redeem your points once you accrued a minimum of 25points. Reliance One membership card provide accident insurance for Rs 50000/- absolute free. 2. Purchase offers Various purchase offers are provided by Reliance fresh. Extra value: Buy two products get some free products. Value added: This is the scheme provide by Reliance fresh to produce companies own product such as Reliance fresh milk, Atta etc. 3. Mobile service: If customer recharges their mobile in RF than they get reward point. 4. Insurance facility: Reliance Retail Insurance Broking Ltd. Provide 2 wheeler insured. It covers Loss or damage to vehicle due to natural calamities, manmade calamities, personal accident cover, and third party legal liability. 5. Home Delivery: RF also provides home delivery facility to their customer. 6. Feed Back Facility: RF also concentrates on their service so they easy feedback policy. 7. Advertisement likes: Pamphlets, Banners, and Newspapers.
59

8. Discount Schemes: Product Based discount schemes and Day-to-Day discount schemes. 9. Gifts to the Customer

RESEARCH METHODOLOGY
Market research design Data source Research approach Research instruments Types of question : : : : : Descriptive cum Exploratory Primary & secondary Survey method Questionnaire Close as well open ended, Likert Scale, Ranking Scale Sample size Mode of data collection : : 40 samples Respondents to be chosen randomly.

60

(Random Sampling) Sample Size A sample size of 40 people was selected to do this project, which was random sampling keeping in mind the basic criteria. The procedure for conducting the study requires a lot of attention to paid, for it has a direct bearing on securing reliable and meaningful information. It is because of this reason the research methodology adopted for a study needs to be elaborated upon. At the same time Research Methodology helps the researcher to give his reason for adopting a certain cause of action, while ruling out the other. With this idea in mind, the methodology has been separately mentioned in this study. Field Work The research was done for a period of two week in which convenience stores were covered in gurgaon. Then I collected data from the respondents. Statistical Tools In my research, I used some statistical tools like: hypothesis, ranking scale, Likert scale, table, & graph, etc. I used hypothesis for to know the association between age and switching of brand preference. Table & graph used for analysis of data. Research Design Research design is the plan for a study that will lead to the most economical method for collection of the required data and their analysis. It is a proposed and
61

properly designed most of unnecessary and useless labors in collecting unnecessary data will be saved. The present study is descriptive cum exploratory in nature, for it seeks to discover the ideas and insights and to bring out new relationships. Sample Design In most of the research studies, the amount of work is always limited by shortage of time and resources within these limitations, for the present study the sample is selected stratified random sample.

Data Collection Method In fact, the data collection is a basic step and of vital importance, on which success or failure of the study depends. All marketing researchers can adopt two sources for investigation. a) Primary data b) Secondary data In this present study, we have used the method of primary and secondary data collection. I collect data with the directly response of respondents. The survey technique is used to collect the data through observation method personal interview & telephonic interview.

Used method for data collection:


62

Questionnaire method: The questionnaires used by me for the purpose of data collection were of structured type (Non-disguised). Contact method: In order to derive information for the intended Company, it was elementary for me to search for a link which could enable me to conduct a research in that company.

63

64

Data Analysis and Interpretation


1. Do you know about any convenience store i.e. Reliance fresh & Subhiksha? Table 1.1 Awareness of convenience stores

Response YES NO

Respondents 38 02

Percentage 95% 5%
65

Source: Field response data

Graph 1.1 Awareness of convenience stores Source: Field response data Interpretation: The awareness level of convenience stores in gurgaon is very good and now most of the people aware about the convenience store. The 95% people aware about the convenience stores. 2. Have you purchased any product from any convenience stores? Table 1.2 Use of Product

Response YES NO

Respondents 38 00

Percentage 100% 00%

66

Source: Field response data

Graph 1.2 Use of Product Source: Field response data Interpretation: In the research the 38 or 100% respondents gave positive response. They all brought product from convenience stores. 3. What attributes did attract you to purchase product from convenience stores? Table 1.3 Influences of Attributes

Attribute Price

Rank1 5*1=5

Rank2 5*2=1

Rank3 16*3=

Rank4 9*4=3

Rank5 3*5=15
67

0 Schemes 11*1= 11 Quality 17*1= 17 Easy Availabil ity Shop Display 2*1=2 0*2=0 4*1=4 13*2= 26 10*2= 20 10*2= 20

48 4*3=1 2 5*3=1 5 10*3= 30

6 10*4= 40 5*4=2 0 9*4=3 6 5*5=25 1*5=5 1*5=5

2*3=6

4*4=1 6

30*5=1 50

Source: Field response data

Attributes Price Schemes Quality Easy Availability Shop Display

Total 109 94 77 115 174

Rank 3 2 1 4 5

68

Graph 1.3 Influences of Attributes Source: Field response data Interpretation: In this response I found that when the customer purchased any product from convenience store then what attributes did attract to the customer. Firstly quality respondents give first rank to quality then secondly they influence with schemes after this price did attract to the customers for purchasing product then they influence with easy availability because they said that convenience store provide product at any time. At last they did attract with shop display. These days shop display do not influence the customer purchase decision. Because now it is common everyone keep shop display. So the customer most prefer to quality then schemes then price after this availability at last they consider shop display.

69

4. Do the Loyalty programmes influence the purchase decision?

Table 1.4 Influences of Loyalty Programmes

Response Strongly Agree Agree Neutral Disagree Strongly Disagree

Respondents 15 18 03 02 00

Percentage 40% 47% 08% 05% 00%

Source: Field response data

70

Graph 1.4 Influences of Loyalty Programmes Interpretation: In this research the loyalty program influence to the customers. 87% people were agreed, 8% people were neutral and 5% people were disagreeing. Most of response is positive. Many people said that loyalty program does fully effect to the customers. 5. Does Price influence on customer purchase decision in convenience store? Table 1.5 Influences of Price

Response Strongly Agree Agree Neutral Disagree Strongly Disagree

Respondents 08 15 08 05 02 Source: Field response data

Percentage 21% 39% 21% 13% 06%

71

Graph 1.5 Influences of Price Source: Field response data Interpretation: A critical marketing mix tool is price, the amount of money that customers pay for the product company has to decide on wholesale and retail prices, discounts, allowances and credit terms. According to the survey about 60% of the respondent agree on this fact and rest of the respondent said that the price is not an important consideration while buying they look for quality, brand and loyalty program. 21% respondents were neutral because they dont consider the price when they purchase and 19% were disagreeing. 1. Do you think that membership cards create loyalty among the customers? Table 1.6 Membership card Create loyalty

Response

Respondents

Percentage
72

Strongly Agree Agree Neutral Disagree Strongly Disagree

10 15 06 05 02 Source: Field response data

26% 39% 17% 13% 5%

Graph 1.6 Membership card Create loyalty Source: Field response data Interpretation: Membership card create loyalty among the customers. There 65% respondents were agreed and 17% were neutral and 18% respondents were

73

disagreed because they think that membership card is not good tools of loyalty. But most of the response was positive they were in favour with membership card.

2. Does Quality effect on customer purchase decision in convenience store? Table 1.7 Effect of Quality

Response Strongly Agree Agree Neutral Disagree Strongly Disagree

Respondents 13 10 09 03 03 Source: Field response data

Percentage 34% 26% 24% 08% 08

74

Graph 1.7 Effect of Quality Source: Field response data

Interpretation: In the purchase decision quality of the product is one of the important factors. But it was considered by customers with less positive response. As date also shows that about 60% of the respondent either agree or strongly agree on this aspect and 24% respondents were neutral because they think that quality does not influence to the customers in convenience stores because they find same quality in the another market and 16% respondents were disagree because they think that these stores provide same quality like as another market. 3. Does the Discount schemes attract to the customers in convenience stores? Table 1.8 Influences of Discount Schemes

75

Response Strongly Agree Agree Neutral Disagree Strongly Disagree

Respondents 13 17 06 02 00 Source: Field response data

Percentage 34% 45% 16% 05% 00%

Graph 1.8 Influences of Discount Schemes Source: Field response data Interpretation: In the purchase decision discount schemes of the product is one of the important factors considered by customers. As date also shows that about
76

89% of the respondent either agree or strongly agree on this aspect. 16% respondents were neutral and 5% were disagreeing. Positively respondents think that discount provide products on reasonable price. And disagreed respondents think that firstly they keep high price then they provide product on discount. So they are not satisfied with this aspect. 4. Does the home delivery attract to the customers for purchase in convenience store? Table 1.9 Influences of Home delivery

Response Strongly Agree Agree Neutral Disagree Strongly Disagree

Respondents 10 16 06 05 01 Source: Field response data

Percentage 26% 42% 16% 13% 03%

77

Graph 1.9 Influences of Home delivery Source: Field response data Interpretation: Home delivery is also influence the purchase decision. Because if you get products on order in the home so it more attractive program among the customers. There 68% respondent were with positive response. But 16% respondents were neutral with this tool because they think that almost every retailer provide home delivery facility and 16% respondents were disagree because they think that they provide product at home but most of the time it do not meet the order & requirement and then we have to accept to this product. 5. Does the Advertisement influence on customer purchase decision? Table 1.10 Influences of Advertisement

Response Strongly Agree Agree

Respondents 06 19

Percentage 16% 50%


78

Neutral Disagree Strongly Disagree

07 04 02 Source: Field response data

18% 11% 05%

Graph 1.10 Influences of Advertisement Source: Field response data Interpretation: According to our survey about 70% of the respondents said that their purchase decisions were influenced by advertisement. In the purchase decision advertisement of the product is one of the important factors considered by customers. As date also shows that about 66% of the respondent either agree or strongly agree on these aspect.18% respondents were neutral and 16% were disagreeing. Positively respondents think that advertisement provides

information regarding products & price. And disagreed respondents think that most of the time advertisements do not attract the customers.
79

6. Does Shop display attract to the customers for purchase in convenience stores? Table 1.11 Influences of Shop Display

Response Strongly Agree Agree Neutral Disagree Strongly Disagree

Respondents 03 11 14 08 02 Source: Field response data

Percentage 08% 29% 37% 24% 05%

Graph 1.11 Influences of Shop Display Source: Field response data

80

Interpretation: Shop display is important tool for to attract the customers. Because these are structured and good looking stores. But in my research the respondents did not give positive response with shop display. They said that now a days shop display does not attract to the customers. Because now a days these are normal and every retailer try to make good shop display. So there 37% respondents were agreeing, 29% respondents were disagreeing and 37% were neutral. So they do not prefer shop display.

81

7. Does family members influence on purchase decision? Table 1.12 Influences of Family Members

Response Strongly Agree Agree Neutral Disagree Strongly Disagree

Respondents 05 12 12 06 03 Source: Field response data

Percentage 13% 32% 32% 16% 08%

82

Graph 1.12 Influences of Family Members Source: Field response data Interpretation: Family is the most important consumer-buying organization in society. Family members constitute the most influential primary group.

Influence of family members in high involvement product category is not more According to survey about 45% of the respondent said that their purchase decisions were influenced by family members. So there family members are less interesting, and they say that they dont take interest into choice of another. About 32% respondents neither agree nor disagree on this point. And about 24% respondents were not in fovour this aspect. 8. Influence of peer group on purchase decision in convenience stores? Table 1.13 Influences of Peer group

Response Strongly Agree

Respondents 5

Percentage 13%
83

Agree Neutral Disagree Strongly Disagree

13 16 04 00 Source: Field response data

34% 42% 11% 00%

Graph 1.13 Influences of Peer group Source: Field response data

Interpretation: Besides from the family members, our most of time spend with our peer group. Our living style affected by the group to which we belong, and our buying behavior is also influence by the friends and relatives. According to
84

my survey about 47% respondents said that peer group influenced their purchase decisions. And especially in the case when a person did not have the sufficient knowledge about the product or brand the influence is more. But 42% respondents were neutral because they said that we purchase self according to their choice, so the peer group does not influence the purchase decision. So like this 11% respondent were disagree with this aspect. 9. Are you regular customer of any convenience store? Table 1.14 Regularity of the Customers

Response YES NO

Respondents 20 18 Source: Field response data

Percentage 53% 47%

85

Graph 1.14 Regularity of the Customers Source: Field response data Interpretation: Here 53% respondents were said that we are regular customer of the convenience stores. But 47% respondents were said they are not regular customer.

10. Which loyalty program influence to the customers for purchasing in convenience stores? Table 1.15 Preference of loyalty programmes

Factors/ Rank Membership card Discount schemes Home delivery Purchase offer

Rank 1

Rank 2

Rank 3

Rank 4

Rank 5

3*1=3

10*2=20

6*3=18

12*4=48

7*5=35

17*1=1

9*2=18

8*3=24

2*4=8

2*5=10

13*1=13

8*2=16

5*3=15

7*4=28

5*5=25

6*1=6

2*9=18

3*11=30

6*4=24

6*5=30

86

Customer feedback

2*1=2

4*2=8

5*3=15

8*4=32

19*5=95

Factors Membership card Discount schemes Home delivery Purchase offer Customer feedback

Total 124 89 97 111 152 Source: Field response data

Ranks 4 1 2 3 5

Preference of loyalty programmes

87

Graph 1.15 Preference of loyalty programmes Interpretation: In this response I studied that which loyalty program customer prefer. They give first rank to discount schemes, then they prefer home delivery they think that home delivery most influence to their purchase decision. Then they prefer purchase offer, purchase offer also influence to the customer purchase decision. Then fourthly they prefer membership card. Customers said that membership cards is not effective tools because it is beneficial for regular customer. One time customer cannot take benefit of this tool. So they prefer less compare than other tools. At last they prefer customer feedback. Customer feedback is also beneficial tools for loyalty if the convenience store take feedback from the customers and then they consider their negative point it will be improve the features of convenience store and will increase the regularity of the customers. 11. Will you like to switch your convenience store preference if you get some promotional scheme with another brand in another market? Table 1.16 Brand Preferences of convenience store
88

Response YES NO

Respondents 25 13 Source: Field response data

Percentage 66% 34%

Graph 1.16 Brand Preferences Interpretation: In my research I found that 53% respondents are regular & 47% respondents are not regular. If someone will provide different look from convenience store then the customers will switch the convenience store preference. 66% respondents gave negative response if another will provide better product than our preference then they will switch and 34% respondents said that they will never switch the brand. They will prefer our convenience store.

89

90

Loyalty programmes in Reliance fresh

1. Membership card 2 Purchase offers


91

3. Mobile service 4. Insurance facility 5. Home Delivery 6. Feedback facility 1. Membership card: Provide membership card under the name of Reliance One. By using this card, for every Rs 100/- that you spend, you earn 1 reliance point .you can redeem your points once you accrued a minimum of 25points. Reliance One membership card provide accident insurance for Rs 50000/absolute free. 2.Purchase offers: Various purchase offers are provided by Reliance fresh. Extra value: Buy two products get some free products. added: This is the scheme provide by Reliance fresh to produce companies own product such as Reliance fresh milk, Atta etc. 10. Mobile service: If customer recharges their mobile in RF than they get reward point. 11. Insurance facility: Reliance Retail Insurance Broking Ltd. Provide 2 wheeler insured. It covers Loss or damage to vehicle due to natural calamities, manmade calamities, personal accident cover, and third party legal liability. 12. Home Delivery: RF also provides home delivery facility to their customer. 13. Feed Back Facility: RF also concentrates on their service so they easy feedback policy.
92

14. Advertisement likes: Pamphlets, Banners, and Newspapers. 15. Discount Schemes: Product Based discount schemes and Day-to-Day discount schemes. 16. Gifts to the Customer

Loyalty programs in Subhiksha Retail Store

Loyalty Program:
12. Membership card 13. Purchase discount

93

14. Day to day offer 15. Credit card scheme 16. Free home delivery

1. Membership card:

Provide life time membership card without any

charges. On the basis of this card, if purchasing is more than Rs. 750/- in a month than the customer listed in Subhiksha lucky draw scheme. 2. Purchase discount: Various offers are providing by Subhiksha. a) On purchasing of Rs 1499/- you get 2kg hafed basmati rice absolutely free. b) On purchasing of Rs 599/-you get Rs 55 cash discount on the spot. c) Flat 10% discount on all medicines and pharma products. d) Flat 10% discount on top up of mobile recharge up to maximum of Rs100/ recharge. 3. Day to day offers: When a daily customer reach the shop for purchasing and he has no idea about the discounts provided by the retailer and suddenly comes to know about the discounts offered on the products that buy two get one free and also like 50% discount on pulses. It varies on the daily basis. 4. Credit Card Scheme: Subhiksha has tied up with ICICI Bank. If the person or customer is making the payment through ICICI Card then he will have to
94

pay only 1.5% of surcharge. While other customers do not have this kind of facility. 5. Home Delivery: Subhiksha provides free home delivery to their customers and the maximum time they need to reach the customer is only 2 hours. 6. Advertisement likes- Pamphlets, Banners, and Newspapers. 7. Discount Schemes- Product Based discount schemes and Day-to-Day discount schemes.

95

96

Findings of the survey:


1. In this research I found that people are more aware regarding convenience stores. Most of respondents give positive response they have knowledge about convenience stores. (Table 1.1) 2. 87% people said that they influence with loyalty programmes. Loyalty programmes influence to the customer for purchasing decision. (Table 1.4) 3. People mostly prefer the quality of the product. In the loyalty programmes firstly they want quality. After this they prefer other things like price, discount schemes, home delivery. (Table 1.7) 4. Discount schemes most influence to the customers after than quality. They think that discount schemes more attract to the customers. But most of the time they do not prefer discount. Because they get some extra benefit with product.(Table 1.8)

97

5. Price does not more influence to the customers. Because they think that price does not matter if we are going in retail store for purchasing and they also provide products on reasonable price.(Table 1.5) 6. The customers think that the shop display does not affect the purchasing decision. It is not helpful for attracting to the customers. Customers think that now it is common thing every retailer makes good shop display. So shop display does not attract to the customers. (Table 1.11) 7. Easy availability also influences to the customers but it is not more. Because they think that most of the retailers provides every products on any time. ( Table 1.3) 8. Membership card create loyalty among the customers. This loyalty program fully attract to the customers they responded me that they are strongly agree with membership card. Because it extra saving of the customers.(Table 1.6) 9. These stores mostly open in residential areas and they also provide home delivery facility to the customers. So it most attractive loyalty program of convenience stores. And mostly responded that mostly they influenced by home delivery But many people said that they do not provide proper product according to order.(Table 1.9) 10. In my research I found that mostly respondents said that the advertisement does not influence to the customers. Because these companies not display their ads. But sometime advertisement influence the purchase decision like as Discount ads, ads of purchase offer on special occasions, etc.(Table 1.10)

98

11. Mostly people said that they are not strongly agreed with the influence of family members. Because our family members do not force for purchase decision. But most of the times they give advice for purchasing in convenience store. So some people agree with this loyalty program.(Table 1.12 & 1.13) 12. Customer loyalty, not customer satisfaction, is key to the success of an organization, and customer loyalty is fostered when an organization excels along two dimensions: Design of its Products - including its Service Products, Operational Execution - or Conformance - to the Design. 13. Many companies focus on rewarding customers who have repeat purchases. Such reward programs have their place in assuring customer loyalty. However, if the product or service doesn't meet customer needs, no reward program will keep them returning. For success in the long run, an

organization must: Continuously improve. 14. Quickly identify and resolve problems to the customer's satisfaction -- or more Learning is the root of continuously improving design and execution, and the life blood of learning is feedback. feedback loops do not just happen. Strong, effective customer

Structured, comprehensive research

programs are necessary to provide the data upon which to develop projects and initiatives to improve customer loyalty. 15. Rewards Programs the key challenge in developing an effective rewards program is researching the key elements that will drive loyalty. Many

99

companies assume those gifts will drive return purchases. That might prove to be a bad assumption.

SUGGESTION OF STUDY
1. Company should identify their customers for increasing the sales and for to make the loyal customer. 2. Manage the customer selection before you manage customer retention. 3. Focus on share-of-wallet. Consumer polygamy is the rule these days. 4. Make sure that your loyalty efforts are mutually beneficial and not tilted too heavily in your favor.

100

5. Satisfied and loyal employees can help, but customer satisfaction and loyalty often happen without them. 6. Customer loyalty and brand imagery must be managed hand-in-hand. 7. Make effective discount schemes for the repurchase of the products. So that customers can make loyal of the company. 8. Loyalty programmes should be like that they can influence to the customers by peer group and family influence. 9. Loyalty should be extra beneficial for the family members so that they can influence to the customers. 10. Home delivery is effective tool for retailer for increasing the sales. Should be providing something extra facility with home delivery like- credit facility. 11. Customer feedback should be follow by the company for taking the response regarding their products & services. 12. Shop display is also attractive loyalty tool for increasing repurchase. But these days nobody consider the shop display. Now should be improve the shop display and make good structure of store. 13. Retailers should improve the more quality and provide good quality on reasonable price. 14. Convenience stores should provide availability of every product so that customer can easily purchase. And also provide some extra variety of products to the customers.
101

15. More emphasis should be on promotional activities. 16. The company should open more and more franchise in the country.

CONCLUSION
In this project I study to the customer response regarding the effect of customer loyalty programmes in different convenience stores. There my objectives are following:

1. To study the Customer Loyalty Programmes in different convenience stores. 2. To know that how they attract to the Customers for purchasing in the convenience
stores.

3. To know the Effect of Loyalty program on customers. For to achieve these objectives I focused on company profile, customer loyalty programmes of different convenience stores then I studied the loyalty programmes. And study that programmes how does the work, what are the tools for the customer loyalty. For to do this project I used the descriptive cum exploratory research design, primary and as well as secondary data collection method, questionnaire as a tool for to collect the primary data with the directly response of the customers then I select the 40 respondents randomly and took

102

their opinion regarding loyalty programmes of convenience stores. I visited in gurgaon for taking the response of respondents and I also visited at nearest convenience store in Rohtak then I took information from the concern person of the store and I also visited at cybercaf for collecting the secondary data. So here in this study I found that most of the respondents are aware about convenience stores and they have purchased also from these stores. But due to this awareness I found some limitations regarding loyalty programmes of stores and then I gave some Suggestations with the help of questionnaire for to improve the loyalty of the customers in convenience stores.

BIBLIOGRAPHY
Sources:
Questionnaire

103

Internet site I visit on the cyber caf for more information www.wikpedia.com www.ril.com www.google.com www.projectsparadise.com www.scribd.com www.spencer.com Books refer 1. Pradhan Swapna; Retailing Management; Tata McGraw Hill, New Delhi. 2. Kothari, C.R.; Business research methodology 3. Gupta, S.P, Business Statistics Directly response of customers. Interaction with Company employee.

Appendices
Questionnaire

104

I am Vikash and I am pursuing MBA from Institute of Management & Technology Rohtak. I am doing research on my project relating to To study the effects of customer loyalty programmes in different convenience stores in gurgaon For this purpose I want to my questionnaires filled to know your response about the Convenience stores. Name: _______________________________________ Age: _______ Occupation:__________________________ PH.No:

__________________ 1. Do you know about any convenience store i.e. Reliance fresh & Subhiksha? __________ Yes __________ No _________ dont know

2. Have you purchased any product from any convenience stores? __________ Yes _____________ No

3. What attributes did attract you to purchase product from convenience stores? Please Rank these attributes. _____ Price _____ Schemes _______Quality ______Easy Availability

_____ Shop Display.

4. Does Loyalty Program influence the purchasing decision? ______Strongly Agree ______ Disagree ______ Agree _______ Natural

______Strongly Disagree
105

5. Does Price influence on customer purchase decision in convenience store? ______Strongly Agree ______ Agree _______ Natural

______ Disagree

______Strongly Disagree

6. Do you think that membership cards create loyalty among the customers? ______Strongly Agree ______ Disagree ______ Agree _______ Natural

______Strongly Disagree

7. Dose Quality effect on customer purchase decision in convenience store? ______Strongly Agree ______ Disagree ______ Agree _______ Natural

______Strongly Disagree

8. Does the Discount schemes attract to the customers in convenience stores? ______Strongly Agree ______ Disagree ______ Agree _______ Natural

______Strongly Disagree

9. Does the Home delivery attract to the customers for purchase in convenience stores? ______Strongly Agree ______ Agree _______ Natural
106

______ Disagree

______Strongly Disagree

10. Does the Advertisement influence on customer purchase decision? ______Strongly Agree ______ Disagree ______ Agree _______ Natural

______Strongly Disagree

11. Does the Shop display attract to the customers for purchase in convenience stores? ______Strongly Agree ______ Disagree ______ Agree _______ Natural

______Strongly Disagree

12. Influence of family members on purchase decision in convenience stores? ______Strongly Agree ______ Disagree ______ Agree _______ Natural

______Strongly Disagree

13. Influence of Peer group on purchase decision in convenience stores? ______Strongly Agree ______ Disagree ______ Agree _______ Natural

______Strongly Disagree

107

14. Are you regular customer of any convenience stores? __________ Yes __________ No

15. Which loyalty program influence to the customers for purchasing in convenience stores? _____Membership card _____ Discount schemes _____Home Delivery

_____ Purchase offers

_____ Customer feedback

16. Will you like to switch your convenience store preference if you get some promotional scheme with another brand in another market? __________ Yes __________ No

17. Your final remarks and suggestions to the convenience stores.

108

LIST OF TABLES
Table No.
7.1.1 7.1.2 7.1.3 7.1.4 7.1.5 7.1.6 7.1.7 7.1.8 7.1.9 7.1.10 7.1.11 7.1.12 7.1.13 7.1.14 7.1.15 7.1.16 8.2 8.2.1 8.2.2 Awareness of Convenience store Use of Product Influence of Attributes Influence of Loyalty Programmes Influence of Price Influence of Membership card Influence of quality Influence of Discount Schemes Influence of Home delivery Influence of Advertisement Influence of Shop Display Influence of Family Members Influence of Peer Group Regularity of the Customers Preference of Influence of Loyalty Programmes Brand preference of convenience store Classification of Age and Switching the preference of convenience store Expected Frequency Applying X2 test

Particular

Page No.
47 48 49 51 52 53 54 55 56 57 58 60 61 62 63 65 66 66 67

109

LIST OF GRAPHS
Graph No.
7. 1.1 7.1.2 7.1.3 7.1.4 7.1.5 7.1.6 7.1.7 7.1.8 7.1.9 7.1.10 7.1.11 7.1.12 7.1.13 7.1.14 7.1.15 7.1.16 Awareness of Convenience stores Use of Product Influence of Attributes Influence of Loyalty Programmes Influence of Price Influence of Membership card Influence of quality Influence of Discount Schemes Influence of Home delivery Influence of Advertisement Influence of Shop Display Influence of Family Members Influence of Peer Group Regularity of the Customers Preference of Influence of Loyalty Programmes Brand preference of convenience store

Particular

Page No.
47 48 49 51 52 53 54 55 56 57 58 60 61 62 64 65

Chapterization Chapter 1: This cheapter contains the information about the introduction of the topic. Chapter 2: This chapter contains the information about the research Methodolory and profile of the organization. Chapter 3: 110

This chapter cantains the information about the micro analysis means objectives wise analysis. Chapter 4: This chapter contains the information about the macro analysis and this analysis is important as it cantinas the conclusion of this study also. Chapter5: This chapter contains the information about the summary of major observation & Recommendation.

111