You are on page 1of 5

[Type the document title]

1.1 INTRODUCTION
In India retail industry is now beginning to evolve in the line with the transformation that has
helps mid-80 and accelerated through the 90’s has begun to impact the structure and conduct
of the retail industry. The concept retail which included the shopkeeper to consumers
interaction, has taken many forms and dimensions from the traditional retail outlet and street
local markets shops to upscale multi brands outlets, especially stores or departmental stores

In the retail industry customer relationship management system serves as a central hub that
incorporates sales, marketing and customer services processes. It provides business owners to
an effective tool to combine all sales related issues and manage the sales process. CRM for
allows to retail clients deliver personalized top- notch customers experience and boost sales. It
helps organize all the customer data in a structured and easy to access way further it allows to
develop and fulfill marketing campaigns for your target audience and analyze their
effectiveness with charts and graphs. Thus, by aligning sales process and managing customer
data retailers can build long term and profitable customers relationship. Retail is the process of
selling consumers goods or service to customers through multiple channel of distribution to
earn a profit retailers satisfy demand identified through a supply chain.

CRM is an approach to manage a company interaction with current and potential


customers. It used data analyze about customer’s history with a company to improve business
relationship with customers, specifically focusing on customer attention and ultimately driven
sales growth. All these changes have made today’s producer shift from traditional
marketing to modern marketing. Modern marketing calls for more than developing a
product, pricing it, promoting it and making it accessible to target customer. It
demands building trust, a binding force and value added relationship with the
customers.

[Type text] Page 1


[Type the document title]

STATEMENT OF THE PROBLEM


The amount of customers are increases day to day. To identify their need and
satisfaction level by this study .The CRM aims to establish long lasting and mutual relationship
with customers which will increase customer value and optimize profitability. The
implementation of a CRM system can help a retailer in understanding the customer, enhance
the relationship as well as predict potential behavior and sales. The implementation of CRM
helps an organization to complete both in service and quantity

SIGNIFICANCE OF THE PROBLEM


The CRM is an integrated effort to strengthen the network of relationship for the mutual
benefit of retailer and customer. The biggest management challenge in the new millennium of
liberalization and globalization for a business is to maintain good relationship with the king-
customer. This study of great significance because

 A 5% increase in the customer retention will increase the profit up to 125%.


 It costs five times more to attract a new customer than to serve an old one.
 20% of the company’s loyal customers account for the 80% of its revenues
 To study on customers relationship management has enabled me to know about CRM
practices adopted in the retail industry(Big Bazaar)

OBJECTIVES OF THE STUDY

 To study the current practices of CRM in retailing


 To find out the impact of CRM on the profitability in the Big Bazaar
 To suggest recommendation to improve CRM in Big Bazaar
 To find out the factors affecting on purchasing decision
 TO find out the overall experience of the of customers visiting in Big Bazaar
 TO find out the customer feeling towards the availability of products

SCOPE OF THE STUDY


The scope of the study is to analyze the customer relationship in retailing (Big Bazaar)
from the stages of collecting customers information to the successful implementation. The
research study undertaken does not prove too much about CRM in retailing .The research
involves general study related to the customer relationship management in retailing.

[Type text] Page 2


[Type the document title]

RESEARCH METHODOLOGY
A research design is a simply a plan for study in collecting and analyzing the data. It helps the
researcher to conduct the study in an economical method and relevant to the problem

Research methodology is a systematic way to solve a research problem.

My research design for CRM analyze in retailing

Collection of data

There are two types of data collected for my study


Primary data-primary data is that data which is collected for the first time. These data are
basically observed and collected by the researcher for the first time. I have collected primary
data by asking questions

Secondary data-secondary data are those data which are primarily collected by others. I used
secondary data to obtain structure of doing my study. I also used existing literature to clarify
CRM concept

Data collection
Data is collected via questionnaire

LIMITATION OF THE STUDY

 Lack of customer focus


 Data and ware housing management
 The study was limited to Trivandrum town only
 Most of them were found to be either busy or pre-occupied. So the answer of them may
be biased

[Type text] Page 3


[Type the document title]

REVIEW OF LITERATURE
Customer relationship management has become one of the most dynamic technology topics of
the millennium. According to Chen and Popovich(2003),CRM is not a concept that is really new
but rather due to current development and advance in information and enterprise Software
technology, it has assumed practical importance, the root of CRM is relationship marketing,
which has the objective of improving the long-term profitability of customers by moving away
from product-centric marketing.

Bose(2002) noted that CRM was invented because the customers differ in their preferences and
purchasing habits. If all customers were alike, there will be little need for CRM. As a result,
understanding customer drivers and customers profitability, firms can better tailor their
offerings to maximize the overall value of their customer portfolio(chen and Popovich).the
attention CRM is currently receiving across business is due to the fact that the marketing
environment of today is highly saturated and more competitive (Chouet al,2002)

According to Greenberg (2004), CRM is an enterprise-focused endeavor encompassing all


departments in a business. He further explains that, in addition to customer service.CRM would
also include, manufacturing, product testing, assembling as well as purchasing and billing and
human resources marketing, sales, and engineering.

Chen and Popovich (2003) argued that CRM is a complicated application which mines a
customer data, which has been retrieved from all the touch point of the customers, which then
create and enables the organization to have complete view of the customers. The result is that
firms are able to uncover and determining the right type of customers and predicting trends of
their future purchasing. CRM is also defined as all embracing approach that seamlessly
integrates sales, marketing, field support and other functions that touch customers (Chou et al,
2002). They further started that CRM is a notion regarding how an organization can keep their
most profitable customer and the same time reduce cost, increase in value of interaction which
then leads to high profit. The modern customer relationship management concept was shaped
and influenced by the theories of total quality management (Gummesson) and by new
technology paradigms (zineldin,2000). There is however , a perceived lack of clarity in the

[Type text] Page 4


[Type the document title]

definition of customer relationship management although all accepted definition are sharing
approximately the same basics concept; customer relationship, customer management
marketing strategy, customer retention personalization (Zineldin,2000). However while
academics debate the subtitles of various definitions, the practitioners have developed a wealth
of applicative paper analyzing the concrete challenges and opportunities of implementing the
system (Bacuvier et all 2001). CRM in some firms is considered as a technology solutions,
considering of individual database and sale force automation tools and sales and marketing
functions so as to improve targeting effort.

Peppers and Rogers (1999) argued that other organization view CRM as a tool, which has been
particularly designed for one-to-one customer communication, which is the function of sales,
call centers or the marketing departments.

Accordingly Frow and Payne (2004) added that CRM stresses two-way communication from the
customer to suppliers to build the customer over time. The two-way communication has been
enhanced greatly by advances in technology particularly the internet. In term of information
technology (IT), CRM means an enterprise- wide integration of technologies working together
such as data warehouse, web site, and intranet/extranet, phone support system, accounting,
sales, marketing and production.

Kotler (2000) assured that CRM uses IT to gather data. Which can then be used to develop
information acquired to create a more personal interaction with the customer. In the long-
term, it produces a method of continuing analysis and reinforcement in order to enhance
customer’s lifetime value with firm.

Goldenberg (2000) believes that CRM is not merely technology application for marketing, sales
and service but rather than when it is successfully implemented. It enables firms to cross-
functional, customer- driven, technology- integrated business process management strategy
that maximize relationship

Chin et al (2003) stated that due to many technological solutions available for CRM automation,
it is often misconstrued as a piece of technology. But they maintained that in recent times
many companies have realized the strategy importance of CRM, and as a result, it is becoming a
business value-effort rather than technology-centric effort

[Type text] Page 5

You might also like